HomeMy WebLinkAboutAgenda Packet 1991/08/06
Tuesday, August 6, 1991
4:00 p.m.
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Dr,', E.'),_ ~-/.,'1!.-.- S!~':,.J'OLl=V~~ "Council Chambers
+(j Public Services Building
Regular MeetinS( of the City of Chula Vista City Council
CAIJ.ED TO ORDER
1.
CAIJ. TIiE ROLL:
Councilmembers Grasser Horton -' Malcolm _, Moore -' Rindone -'
and Mayor Nader _'
2. PLEDGE OF ALLEGIANCE TO TIiE FLAG. SILENf PRAYER
3. APPROVAL OF MINlITES: July 9, 16, 23, and 25, 1991
4. SPECIAL ORDERS OF TIiE DAY:
a. Oath of Office: Jackie McQuade, Resource Conservation Commission
b. Proclaiming August 12, 1991 as "Fire Fighter Appreciation Day" - Proclamation will be
presented by Fire Chief Sam Lopez.
CONSENT CALENDAR
The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the
Council by one motion wiJJwut discussion unless a CounciImember, a member of the publiJ.: or city staff requests
that the item be pulled for discussion. If you wish to speak on one of these items, please [tlJ out a "Request to
Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form
to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff
recommendation.) Items pulled from the Consent Calendar will be discussed after PubliJ.: Hearings and Oral
Communications. Items pulled by the publiJ.: will be the first items of business.
5. WRITfEN COMMUNICATIONS:
a. Claims Against the City: 1) Earth Busters & Materials, Inc., c/o Sandra K. Brislin, Esq.,
Bandy & Koester, 1633 E. 4th Street, Suite 184, Santa Ana, CA 92701; and 2) Ms. Sarah
Frazier, Law Offices of Samuel Spital, 1200 Third Avenue, Suite 1524, San Diego, CA 92101.
Staff recommends that the claims be denied.
b. Letter requesting waiver of deposits required for Conditional Use Permit and Environmental
Study _ Gregory Bolden, Administrator, Abundant Life Counseling Centers, Inc., 3 North
Second Avenue, Chula Vista, CA 91910.
c. Letter requesting support to allow the Boards/Commissions to utilize business cards - Bob
Thomas, Vice-Chairman, Safety Commission.
Agenda
.2.
August 6, 1991
6.A ORDINANCE 2470 AMENDING VARIOUS CHAPTERS OF SECTION 9.20 OF TIlE MUNICIPAL
CODE TO ALTER OR ENHANCE TIlE CRIMINAL AND/OR CIVIL
PENALTIES ASSOCIATED Willi GRAFFITI RELATED VIOLATIONS (second
readinsr and adoption) . When Council considered the amendments
proposed for Chapter 9.20 of the Municipal Code at the 7/16/91 Council
meeting, they directed that staff return with further amendments to
Chapter 9.20. Staff recommends Council place ordinances 2470,2471, and
2473 on second reading and adoption. (City Attorney)
B. ORDINANCE 2471 AMENDING CHAPTER 9.20 BY AMENDING SECTION 9.20.035 (second
readinsr and adoption)
C. ORDINANCE 2472 AMENDING CHAPTER 9.20 BY AMENDING TIlE TITLE TO SECTION
9.20.037 (second readinSl: and adoption)
D. ORDINANCE 2473 AMENDING SUBSECTION (A) 'CRIMINAL PENALTIES' OF SECTION
9.20.050 "PENALTIES FOR VIOLATION OF CHAPTER' OF CHAPTER 9.20
"PROPERlY DEFACEMENT" OF TIlE MUNICIPAL CODE TO PROVIDE FOR
AN ENFORCEMENT POIJCY FOR WRONGFUL DISPLAY OF AEROSOL
PAINT CONTAINERS AND FELT TIP MARKERS (first readinsr) . At the
7/23/91 Council meeting, the City Attorney was directed to prepare an
enforcement policy conditioned on providing general notice to the business
community and specific notice of a violation, prior to commencement of
criminal prosecution. Staff recommends Council place ordinance on first
reading and adoption.
7. ORDINANCE 2469 AUTIIORlZING AN AMENDMENT TO TIlE CONTRACT Willi TIlE BOARD
OF ADMINISTRATION OF TIlE PUBIJC EMPLOYEES' RETIREMENT
SYSTEM (second readinSl: and adoption) . Action will amend the City's
Public Employees' Retirement (PERS) contract to provide for Section
20020.1. Staff recommends Council place ordinance on second reading
and adoption. (Director of Personnel)
8. RESOLUTION 16279 ACCEPTING CAUFORNIA IJBRARY SERVICES ACT GRANT FUNDS FOR
TIlE PURPOSE OF PROVIDING FAMILY IJTERACY SERVICES AND
APPROPRIATING lliOSE FUNDS TO AMEND TIlE FiSCAL YEAR 1991/92
BUDGET. The State of California has recently approved the Chula Vista
Public Library/Chula Vista Literacy Team's application for grant funds in
the amount of $9,600.00 to provide family literacy services in cooperation
with the Chula Vista City Elementary School District's Even Start program.
Staff recommends approval of the resolution. (Library Director)
9. RESOLUTION 16280 ACCF.PTING BIDS AND AWARDING CONTRACT FOR UPGRADE OF
EXISTING TELEPHONE SYSTEM . Bids were opened on 7/15/91 for the
upgrade of the existing telephone system. The current configuration is at
capacity and needs to be upgraded to accommodate new telephone. Staff
recommends approval of the resolution. (Director of Finance)
Agenda
-3-
August 6, 1991
10. RESOLUTION 16281 EXfENDING CONTRACTUAL AGREEMENT Willi SOUTH BAY
COMMUNITY SERVICES TO PROVIDE YOUTH COUNSEUNG, COMMUNITY
OlITREACH AND GRAFFITI ERADICATION - Since FY 1985-86, the City has
contracted with South Bay Community Services to provide juvenile services.
This contract is recommended to be extended through FY 1991-92 and will
include funds for the Youth Services Bureau, the Runaway and Homeless
Program, and the Graffiti Eradication Program. Staff recommends approval
of the resolution. (Chief of Police)
11. RESOLUTION 16282 AMENDING A LEASE AGREEMENT Willi HUBERT A. CHRISTENSEN AND
MARGARET SCOTT BLAIR FOR THE BUIlDING AT 311 "F" STREET AND
AUTHORIZING THE MAYOR TO EXECUTE THE SAME - At the 9/26/89
meeting, Council approved a lease agreement with Hubert A. Christensen
and Margaret Scott Blair for the 6,300 square foot building at 311 'F'
Street. The building has been used for recreational activities for seniors
during the renovation of Norman Park Center. Staff recommends approval
of the resolution. (Director of Parks and Recreation)
12. RESOLUTION 16283 ORDERING CERTAIN OPEN SPACE AND MAINTENANCE FACIUTIES TO
BE MAINTAINED AND LEVYING ASSESSMENT FOR FISCAL YEAR 1991/92
FOR OPEN SPACE DISTRICT NUMBER 18 - In accordance with the
Municipal Code Section 17.07, the City Engineer had reports prepared on
the spread of assessments for the open space districts. The reports were
accepted in June, 1991 and the required public hearing was held on July
9, 1991. At that meeting Council directed staff to meet with the property
owners of Open Space District No. 18 and return to Council. Council also
directed staff to review the contracts and maintenance of Open Space
District Nos. 7, II, and 18. Staff recommends approval of the resolution.
(Director of Public Works and Director of Parks and Recreation)
13.A. RESOLUTION 16284 RENEWAL OF LANDSCAPE MAINTENANCE CONTRACT FOR OPEN SPACE
MAINTENANCE DISTRICTS 1-10, 14 UNITS 1-7, IS, 18, 20, AND
EASTI.AKE MAINTENANCE DISTRICT - On 5/6/86, Council accepted the
Department's report regarding renewal options for open space contractors.
The Department will exercise its option to renew the landscape
maintenance contracts in Open Space Maintenance Districts 1-10, 14 Units
1-7, 15, 18, 20 and EastLake Maintenance District. Staff recommends
approval of the resolution. (Director of Parks and Recreation)
B. RESOLUTION 16285 RENEWAL OF LANDSCAPE MAINTENANCE CONTRACT FOR OPEN SPACE
MAINTENANCE DISTRICT 11 - Staff recommends approval of the
resolution. (Director of Parks and Recreation)
14. RESOLUTION 16286 APPROVING SECOND AMENDMENT TO THE QTYWIDE STREET
SWEEPING AGREEMENTEXfENDINGSAME FORONEADDmONAL YEAR
_ On 9/15/87, Council approved a contract with Laidlaw Waste Systems,
Inc. to provide street sweeping. The agreement provided for three years of
street sweeping with the contract price to be adjusted each year by the San
Diego Area CPI. In addition, the agreement permitted two additional one-
Agenda
-4-
August 6, 1991
year extensions upon satisfactory negotiation of a contract price. On
9/11/90, Council approved the first amendment to the agreement which
extended the contract through 8/31/91. Staff and Laidlaw have negotiated
a price to provide citywide street sweeping setvices through 8/31/92 for
the second and final year extension as included in the contract. Staff
recommends approval of the resolution. (Director of Public Works)
15. RESOLUTION 16287 ACCEPTING CONTRACfWORKFOR TIffi CONSTRUcnON OF "H" STREET
BUS TURN-OUT AT TIffi CHUl.A VISTA SHOPPING CENTER AND
APPROPRIATING FUNDS THEREFORE - On 7/26/90, Council awarded a
contract in the amount of $69,967.03 (including contingencies) to Addex
Construction Co. The contract was for the construction of a bus turn-out
on "H" Street at the Chula Vista Shopping Center and the work is now
completed. The total cost of the project, however, exceeded the budgeted
amount by $14,598.76. Therefore, this amount needs to be appropriated
from the unappropriated SCOOT Capital Projects fund. Staff recommends
approval of the resolution. (Director of Public Works)
* * END OF CONSENT CALENDAR * *
PUBUC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak
to any item, please fill out the "Request to Speak Form' available in the lobby and submit it to the City Clerk prior
to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form
to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual
16.
PUBUC HEARING
CONSIDERATION OF A DRAFT TRANSNET (SALES TAX)
TRANSPORTATION IMPROVEMENT PROGRAM EXPENDITURE PLAN FOR
FISCAL YEARS 1992-93 lHROUGH 1998-99 - The 1992 San Diego
Regional Transportational Improvement Program (RTIP) is a seven year
program of proposed major highway arterial, transit, bikeway, and aviation
projects. The annual development and approval of the RTIP by the San
Diego Association of Governments (SANDAG) is a requirement for the
continued receipt of State and Federal transportation project funding. The
"Proposition A Transnet Transportation Improvement Program - Ordinance
and Expenditure Plan" also requires that all proposed projects funded with
Transnet sales tax be included in the Regional Transportation Improvement
Program (RTIP). Staff recommends Council conduct the public hearing
and approve the resolution. (Director of Public Works)
RESOLUTION 16288 ADOPTING TIffi SEVEN-YEAR TRANSNET LOCAL STREET AND ROAD
PROGRAM, FISCAL YEARS 1993 lHROUGH 1999, AND APPROVING TIffi
SUBMITTAL OF CHUl.A VISTA'S TRANSNET 1992 REGIONAL
TRANSPORTATION IMPROVEMENT PROGRAM (RTIP) TO TIffi SAN
DIEGO ASSOCIATION OF GOVERNMENTS
17.
PUBUC HEARING
CONSIDERATION OF A DEFERRAL FOR UNDERGROUNDING UTIUlY
SERVICES TO A PROPOSED RETAIL ESTABUSHMENT AT 1100
THIRTIETH STREET, NATIONAL CITY . San Diego Gas and Electric
Agenda
-5-
August 6, 1991
Company has requested that the City grant a deferral of the
undergrounding requirements imposed on the Toys R Us project on
Thirtieth Street. The request was made because the underground conduit
would be placed within a portion of the old Sweetwater River. SDG&E
representatives feel that there is a high chance that the conduit would
wash out if it were to be placed underground. Section 15.32.130 of the
Municipal Code states that all deferrals of undergrounding must be
considered by Council at a public hearing and that the owner must enter
into an agreement with the City. Staff recommends Council hold the
public hearing and approve the resolution. (Director of Public Works)
Staff request this item be continued to the August 20, 1991 meeting.
ORAL COMMUNICATIONS
This is an opportuni1y for thE general public to address thE CiJy Council on any subject matter within thE Council's
jurisdiction that is not an item on this agenda. (State law, Iwwever, generally prohibits thE CiJy Council from
taking action on any issues not induded on thE posted agenda.) If you wish to address thE Council on such a
subject, please complete thE yellow "Request to Speak Under Oral Communications Form" available in thE lobby
and submit it to thE City Clerk prior to thE meeting. Those who wish to speak, please give your name and address
for record purposes and follow up action. Your time is limited to three minutes per speaker.
ACTION ITEMS
The items listed in this section of thE agenda are expected to elicit substantiol discussions and deliberations by thE
Council, staff, or members of thE general public. The items will be considered individually by thE Council and staff
recommendations may in certain cases be presented in thE aitemative. Those who wish to speak, please fill out
a "Request to Speak" form available in thE lobby and submit it to thE CiJy Clerk prior to thE meeting. Public
comments are limited to five minutes.
18. RESOLUTION 16289 APPROVING AGREEMENT WITH SCHEMA SYSTEMS TO DEVELOP A
REQUEST FOR PROPOSALS (RFP) AND PROVIDE MANAGEMENT
SUPPORT FOR IMPLEMENTATION OF A COMPlITER AIDED DISPATCH
(CAD) SYSTEM - In 1986, Council directed staff to implement a series of
recommendations to improve the City's Public Safety Communications
Systems. Several of these recommendations have been implemented and
staff is now seeking Council's approval to proceed with the selection of a
consultant to prepare an RFP for a CAD system. Staff recommends
approval of the resolution. (Chief of Police)
19.A RESOLUTION 16290 AUTHORIZING ISSUANCE OF BONDS, APPROVING BOND INDENTURE
AND OFFIOAL STATEMENT FOR ASSESSMENT DISTRICT NUMBER 90-3
(EASl1.AKE GREENS) -These are the closing resolutions for the EastLake
Greens Phase I assessment district proceedings. They approve certain
bond-related documents and award the bond sale to the lowest bidder.
They also approve the Security Enhancement Agreement which provides a
safety factor for assessed parcels whose value-to-assessment ratio is less
than three to one. Staff recommends approval of the resolutions. (Director
of Public Works and Director of Finance)
Agenda
-6-
August 6, 1991
B. RESOLUTION 16291 MAKING AWARD FOR SALE OF BONDS, AND PROVIDING FOR THE
ESTABUSHMENT ORA REDEMPTION FUND FOR ASSESSMENT DISTRlCf
NUMBER 90-3 (EASTLAKE GREENS)
C. RESOLUTION 16292 AUTHORIZING AND PROVIDING FOR THE SECURI1Y ENHANCEMENT
AGREEMENT FOR ASSESSMENT DISTRlCf NUMBER 90-3 (EASTLAKE
GREENS) AND AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
BOARD AND COMMISSION RECOMMENDATIONS
This is the time the CiIy Council will consider items whk:h have been forwarded to them for consideration by one
of the CiIy's Boards, Commissions and/or Committees.
None submitted.
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the CiIy Council will discuss items whk:h have been removed from the Consent Calendar. Agenda
items pulled at the request of the public will be considered prior to those pulled by CounciImembers. Public
comments are limited to five minutes per individual
OTI-IER BUSINESS
20. Cl1Y MANAGER'S REPORTCS)
a. Scheduling of meetings.
21. MAYOR'S REPORTCS)
a. Request from the Port Commission to appoint a representative to serve on the Equal
Opportunity Advisory Committee - Robert Penner, M.D., Chairman
b. Ratification of appointment to Boards and Commissions: Charter Review Commission and
Housing Advisory Committee (2)
22. COUNCIL COMMENTS
Councilman Moore
Agenda
-7-
August 6, 1991
ADJOURNMENf
The City Council will meet in a closed session immediately following the Council meeting to discuss:
Potential litigation pursuant to Government Code Section 54956.9 - Proposed Airport
The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on August
13, 1991 at 6:00 p.m. in the City Council Chambers.
Ajoint City Council/Redevelopment Agency meeting will be held immediately after the City Council meeting.
COUNCIL AGENDA STATEMENT
ITEM TITLE:
proclaiming
Appreciation
California
ITEM~
MEETING DATE _08/06/91
August 12, 1991
Day" in the City
as "Fire Fighter
of Chula Vista,
SUBMITTED BY: Fire Chief Sam Lopez
(4/sths Vote: Yes No
Proclamation to be presented to Chief Lopez.
~b- \
PROCLAIMING AUGUST 12, 1991 AS
"FIRE FIGHTER APPRECIATION DAY.
IN THE CITY OF CHULA VISTA, CALIFORNIA
WHEREAS, fire fighters respond each day to situations that
require not only technical skill but also physical resourcefulness
and personal courage; and
WHEREAS, fire fighters protect the property of the citizens
of Chula Vista; and
WHEREAS, fire fighters display selfless dedication to life
safety; and
WHEREAS, fire fighters and their families devote their time
and talents to health and service agencies in our community; and
WHEREAS, fire fighters have united to support the Burn
Institute's services for those who have suffered the devastation
of burn injuries: ~
NOW, THEREFORE, I, TIM NADER, Mayor of the City of Chula
Vista, California, do hereby proclaim Monday, August 12, 1991,
as "FIRE FIGHTER APPRECIATION DAY" in the City of Chula Vista,
to enhance our citizen's awareness of the dedication of local
fire fighters and their efforts to support the Burn Institute's
programs and services for burn survivors.
;Datd tkis. 30tWtr'?I"-
Julv
19~
~or5tli(, Ct!f!f aNfa riSta
'1b- 2
46,
tiOll~
i71
tsta, Laafintia .
PROCLAIMING AUGUST 12, 1991 AS
"FIRE FIGHTER APPRECIATION DAY.
IN THE CITY OF CHULA VISTA, CALIFORNIA
WHEREAS, fire fighters respond each day to situations that
require not only technical skill but also physical resourcefulness
and personal couragel and
WHEREAS, fire fighters protect the property of the citizens
of Chula Vista; and
WHEREAS, fire fighters display selfless dedication to life
safety; and
WHEREAS, fire fighters and their families devote their time
and talents to health and service agencies in our community; and
WHEREAS, fire fighters have united to support the Burn
Institute's services for those who have suffered the devastation
of burn injuries:
NOW, THEREFORE, I, TIM NADER, Mayor of the City of Chula
Vista, California, do hereby proclaim Monday, August 12, 1991,
as -FIRE FIGHTER APPRECIATION DAY" in the City of Chula Vista,
to enhance our citizen's awareness of the dedication of local
fire fighters and their efforts to support the Burn Institute's
programs and services for burn survivors.
,2)atd tkis JOttfty' !!f".
Julv
19 -.!JJ.
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ZllUJ'or!!f tlie Ciff!f aNfa rtsta
August 2, 1991
SUBJECT:
The Honorable Mayor and City Council
John D. Goss, City Manager81
Council Meeting of August 6, 1991
TD:
FROM:
This will transmit the agenda and related materials for the regularly
scheduled meeting of August 6, 1991. Comments regarding the Written
Communications are as follows:
5a. IT IS RECOMMENDED THAT THE CLAIMS OF EARTH BUSTERS MATERIALS, INC.
AND MRS. SARAH FRAZIER BE DENIED.
5b. This is a request for waiver of fees for a Conditional Use Permit
and Environmental Study, requested by Abundant Life Counseling Centers,
Inc. IT IS RECOMMENDED THAT THIS REQUEST BE REFERRED TO STAFF FOR
FURTHER EVALUATION INASMUCH AS WE HAVE RECEIVED MULTIPLE REQUESTS
FOR CONSIDERATION OF CUP WAIVERS FOR THIS SITE.
5c. This is a request from Bob Thomas, Vice Chairman of the Safety Commission
for the provision of business cards for Boards and Commission members.
Over the past six years or so, this issue has been raised several
times. It has been Council's position that if a Commission so desires,
standard business cards would be provided for each Board or Commission,
with a blank space for the Commissioner's name. IT IS RECOMMENDED
THAT THE PRESENT POLICY NOT BE ALTERED.
JDG:mab/7
COUNCIL AGENDA STATEMENT
Item 50-
Meeting Date 8/6/91
ITEM TITLE:
Claims Against the City
SUBMITTED BY:
Director of Personnel ~.~
(4/5ths Vote: Yes
No~J
REVIEWED BY:
ci ty Manager,J4 ~
Claimant No.1:
Earth Busters & Materials, Inc.
c/o Sandra K. Brislin, Esq.
Bandy & Koester
1633 E. 4th street, suite 184
Santa Ana, CA 92701
On April 12, 1990, Ms. Adeline Miller filed a Claim against the
city for $10 million in connection with severe personal injuries she sus-
tained when she was struck by a vehicle as she crossed the street near 30th
street and L in the city of Chula vista. The claim was denied by the city
Council on June 12, 1990 and the City is currently involved in litigation
concerning this incident.
On July 22, 1991, a Claim for indemnity was filed against the City
of Chula vista by Earth Busters & Materials, Inc. in connection with the
litigation brought by Ms. Miller.
Due to questionable liability, it is the recommendation of the
city's counsel, Daley & Heft, and Risk Management, that the Claim described
above be denied.
Claimant No.2:
Ms. Sarah Frazier
Law Offices of Samuel spital
1200 Third Avenue, suite 1524
San Diego, CA 92101
On June 21, 1991, a Claim was filed against the city of Chula vista
by representatives of Ms. Sarah Frazier and an Amendment was filed on July
3, 1991, seeking damages within the jurisdiction of the Municipal Court.
Ms. Frazier claims personal injuries were received in an accident involv-
ing a Chula vista Transit bus on February 4, 1991.
Form A-113 (Rev. 11/79)
50-- ,
Item SC)-
Meeting Date 8/b/91
City bus service was provided contractually by American Transit Cor-
poration at the time of this alleged incident. The agreement between
American Transit Corporation and South Coast Organization operating Transit
contains a hold harmless clause and provides for indemnification. Because
the city has neither jurisdiction nor control over transit complaints, it
is the recommendation of the City's claims adjustors, Carl Warren & Com-
pany, and Risk Management staff, that this claim be denied.
RECOMMENDATION:
1. Deny the Claim of Earth Busters Materials, Inc.
2. Deny the Claim and Amended Claim of Condor Carriage Company.
J
5' G- -2..
Sb
Abundant Life
Counseling Centers~Ell11QEo
3 North Second Avenue, Chula Vista, Ca"9"rn~ ~lfllt:(\ :43
Fax: (619) 262-8958 ' IV
Empowerment Through Educ~'cL~'~K' .. ," · ~
.) ,},
, ;\1"
17 JULY 1991,
Ms. Beverly A. Authelet
City Clerk
City of Chula Vista,
276 Forth Avenue,
Chula Vista CA. 91910
Dear Ms. Authelet
Abundant Life Counseling Centers, Inc. is a Non Profit Public
Benefit Corporation and is not organized for the privite gain of
any person. Our proposed operating site is 3 Second Ave. Chula
Vista CA. 91910.
ALCC is in the process of applying for a Conditional Use premit
and Environmental Study through the City of Chu1a Vista. As a Non
Profit Organazation we would like to petition the city clerks office
for a waiver of all associated deposits required to initiate said
Conditional Use Premit and Environmental study.
The principal officer for the transaction of the business of the
Corporation is to be located in the County of San Diego. The name
and address in the State of California of the Corporations intial
agent for Service of process is Myrtle E. Smith, J.D., 3030
Suncrest Dr. #406, San Diego, CA. 92116.
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Abuudant Life COIll1Kling Centen, Inc. i. . nOD~ptofit public benofit corponnion whOM purpose w providinl
empowerment throuJb. cdllc&tion, health, lIIld counseling_
Sb
se.
July 22, 1991
Councilman Jerry Rindone
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, California 91910
Dear Jerry:
What would you say if this could happen:
*BUILD AND INCREASE JOB SELF-ESTEEM
*SHOW APPRECIATION
*BE A CONSTANT PAT ON THE BACK (WE ALL NEED THIS)
*BRING PRIDE TO YOUR JOB
ALL FOR
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~JI'n~~"IT"~l',.'1' ~"=~~!~"~""rI"-ATION
~, I,'" L:!: . I.:." ,.. ,~'. ~' Y'~'" !:;1\ . ,', ~ ",,,-.' '.'J .!-:-~
'iJ ~.;.,jj ~ U ~1!l't.I ~b1t)ig' fsiiv~~~1b. .... 5
5[-1
WHAT IS THIS AMAZING BREAKTHROUGH
- BUSINESS CARDS -
You have volunteers who spend hundreds and hundreds of hours of their personal
time for the City - FREE - your Boards and Commissions.
The City would be in a T.S. (tough situation) without these gracious people. The
price of these cards is so small compared to the large gain.
When you go into a store and talk to someone and ask for a business card the person
gives you a blank one then asks for a pen to scribble their name - what do you think?
*CHEAP STORE
*TEMPORARY HELP
*NEW EMPLOYER
What I would ask from you is your suppol1 to eithcr allow the Boards/Commissions
to handle this through their budgets and/or have the City fund the cards if the
Boards/Commissions budget does not allow it. Keep in mind not all people will be
interested in having cards.
I would be willing to manage this project to make it hassle free for the City.
Sinccrely.
fa9~
BOB THOMAS
Vice-Chairman
Safety Conunission
cc:
Mayor
City Council
City Manager
SC.-L
The cost of printing business cards is approximately $25.00 per person.
Following is a list of the City's Boards/Commissions/Committees that might
elect to have cards printed:
Board/Commission/Committee No. of Members
J~
Bayfront Conservancy Trust 12
Board of Appeals 7
Board of Ethics 7
Charter Review Committee 7
Child Care Commission 9
Chula Vista 21 21
~vil Service Commission 5
/~ Commiss ion on Aging 7
~ltural Arts Commission 9
~ ~ Des ign Review Committee 5
Economic Development Commission 8
Elderly & Handicapped Transportation Committee 5
Growth Management Oversight Committee 9
Housing Advisory Committee 8
Housing Element Committee 12
Human Relations Commission 7
International Friendship Commission 9
.1. ibrary Board 5
. Mobilehome Issues Committee 10
Montgomery Planning Committee 7
Otay Valley Road Project Area Committee 5
Parks & Recreation Commission 7
Planning Commission 7
Resource Conservation Commission 7
/Safety Commission 7
Southwest Project Area Committee 9
Town Centre Project Area Committee 8
U. N. Day Committee 13
Youth Commission ...2...
Total 241
5c.- "3
CURRENT BLANK CARDS IN USE BY COMMISSIONS:
~{~
~
~~~~
ellY OF
CHUlA VISTA
PLANNING COMMISSIONER
276 FOURTH AVENUE
CHULA VISTA, CA 92010
(619) 691-5101
CITY EMPLOYEE 1.0. CARDS:
~\~
:-JIt -.
~--~
,,--- - ~
~-
CllY OF
CHUlA VISTA
EMPLOYEE IDENl'IFICATION
CARD NO.
J S AN EMPLOYEE I N THE
CKPARTMENT
~M~~gYEE SIGNATURE
CITY MANAGIi!;R
DATE
sc-1
council Agenda statement
Item:~b.c..> cL.
Meeting Date: August 6, 1991
Ordinance No. 2473: ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF CHULA VISTA AMENDING SUBSECTION (A)
"CRIMINAL PENALTIES" OF SECTION 9.20.050 "PENALTIES
FOR VIOLATION OF CHAPTER" OF CHAPTER 9.20 "PROPERTY
DEFACEMENT" OF THE CHULA VISTA MUNICIPAL CODE TO
PROVIDE FOR AN ENFORCEMENT POLICY FOR WRONGFUL
DISPLAY OF AEROSOL PAINT CONTAINERS AND FELT TIP
MARKERS.
ordin~~No. 2470 AMENDING VARIOUS SECTIONS OF
c~~k' 9.20 OF THE MUNICIPAL CODE TO ALTER OR
. ENHANCE THE CRIMINAL AND/OR CIVIL PENALTIES
ASSOCIATED WITH GRAFFITI-RELATED VIOLATIONS
(second reading) .
rJ.\0~
.d:mance (E) No. 2471 AMENDING CHAPTER 9.20 BY
~~~O ~ENDING SECTION 9.20.035 (second reading).
\'t--.\('J.
~'i'-~O ' o:r:~~~ (F) No. 2472 AMENDING CHAPTER 9.20 BY
Co~O PS-.\~rNG THE TITLE TO SECTION 9.20.037 (second
c,(. \,\0 RE{\OI\,\G reading) . ~.~
SECO " ,\,~
Submitted by: Bruce M. Boogaard, City Attorney \ ''')(
Item Title:
r;<'"
o':;\\:> .
S't.-C
4/5ths Vote: ( ) Yes (X) No
At their meeting of July 16, 1991, the city Council adopted
Ordinance No. 2464 which, among other things, created criminal
liability for a merchant's wrongful display of "graffiti-abIes".
At their meeting of July 23, 1991, the city Council directed
the City Attorney to prepare an enforcement policy conditioned on
providing general notice to the business community and specific
notice of a violation, prior to commencement of criminal
prosecution.
Boards and commissions Recommendation:
Although there hasn't been time for a review by the Graffiti
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July 30, 1991
Al13 re Penalties for Graffiti-Related Violations
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Task Force, staff believes that the enforcement policy as presented
would meet with their approval.
Recommendation:
Adopt the attached ordinance, establishing an enforcement
policy which requires generalized notice of the enactment of the
wrongful display provisions, specific notice of a violation, and 10
days to correct same, prior to the commencement of prosecution.
Place the remaining ordinances on second reading.
Discussion:
The staff desires to use the criminal liability provision
associated with wrongful display, not to prosecute our local
merchants, but to encourage them to keep their spray cans and felt
tip markers from public access.
The attached enforcement policy is typical of the way the city
Attorney approaches most all code violations, but its codification
will serve to alleviate merchant concerns of possibly overzealous
enforcement.
No further discussion on the issue is deemed appropriate.
Also attached for you second reading is Ordinance No. 2470 as
amended; Ordinance (E) No. 2471; and Ordinance (F) No. 2472; to
reflect the Council's direction at the meeting of July 23, 1991.
Also attached as Exhibit A, for your permanent files, is
chapter 9.20, "Property Defacement", as compiled to the current
date to reflect and incorporate all changes made to the chapter to
date, including Ordinance No. 2470, Ordinance E (2471) and
Ordinance F (2472) and the proposed Ordinance 2473.
Fiscal Impact:
There will be some additional costs associated with the
administration of the enforcement policy, which will include
notification of the merchant community trading in spray cans and
felt tip markers, and with second follow-up visits 10 days after
notice is given for a specific violation, but the amount is
currently incapable of calculation, and estimated to be negligble
on an incremental basis, considering the cost of code enforcement
in general. It will be paid out of current appropriations for code
enforcement.
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July 30, 1991
Al13 re Penalties for Graffiti-Related Violations
Page 2
b-2
S~COND
ORDINANCE NO. 2470 R~ADING
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AND ADO
CHULA VISTA AMENDING VARIOUS SECTIONS OF 'PIlON
CHAPTER 9.20 OF THE MUNICIPAL CODE TO ALTER
OR ENHANCE THE CRIMINAL AND/OR CIVIL
PENALTIES ASSOCIATED WITH GRAFFITI-RELATED
VIOLATIONS.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY
ORDAIN AS FOLLOWS:
section 1. Subsection D is hereby added to section
9.20.020, Definitions, of Chapter 9.20, which subsection D shall
read as follows:
D. "Graffiti" includes any unauthorized inscription, word,
figure, or design that is marked, etched, scratched, drawn, or
painted on any structural component of any building, structure,
or other facility, regardless of the nature of the material of
that structural component.
section 2. section 9.20.037, "Right of City to Remove" is
hereby added to Chapter 9.20, which section shall read as
follows:
"9.20.037. Right of City to Remove.
A. Graffiti as a Nuisance. The existence of graffiti
within the City limits of the City of Chula vista is a
public and private nuisance, and may be abated according to
the provisions and procedures herein contained.
B. Right of Entry on Private Property Provisions.
1. Securing Owner Consent.
Prior to entering upon private property or property
owned by a public entity other than the City, for the
purpose of removal of graffiti, the City shall attempt
to secure the consent of the property owner, and a
release of the City from liability for private or
public property or liability damage.
2. Failure to Obtain Owner Consent.
If a Responsible Party fails to remove the offending
Graffiti within the time herein specified, or if the
city shall have requested consent to remove or paint
over the offending Graffiti and the Responsible Party
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Graffiti Ordinance to Alter Criminal Consequences
Page 1
Coo..-I
shall have refused consent for entry on terms
acceptable to the City consistent with the terms of
this Section, the City shall commence Abatement and
Cost Recovery Proceedings for the removal of the
graffiti according to the following procedure.
3. Abatement and Cost Recovery Proceedings.
A. Notice and Conduct of Due Process Hearing.
The Director of Public Works ("Hearing Officer")
shall give not less than 48 hours notice, served
in the same manner as summons in a civil action in
accordance with Article 3 (commencing with Section
415.10) of Chapter 4 of Title 5 of Part 2 of the
Code of civil Procedure (If the owner of record,
after diligent search cannot be found, the notice
may be served by posting a copy thereof in a
conspicuous place upon the property for a period
of 10 days and publication thereof in a newspaper
of general circulation published in the county in
which the property is located pursuant to section
6062.) to the Responsible Party who is responsible
for the maintenance of a parcel of property
containing graffiti ("Property"), and, if a
different person is the owner of record of the
parcel of land or which the nuisance is
maintained, based on the last equalized assessment
roll or the supplemental roll, whichever is more
current, then to said owner also, of a "due
process" hearing at which said Responsible Party
shall be entitled to present evidence and argue
that his or her Property does not contain
graffiti. The determination of the Hearing
Officer after the "due process" hearing shall be
final and not appealable. If, after the due
process hearing, regardless of the attendance of
the Responsible Party, or his agent, the Hearing
Officer determines that the Property contains
graffiti, the Hearing Officer shall give written
notice ("Eradication Order") that, unless the
graffiti is removed within 5 days thereafter, the
City, or its designated agent, shall enter upon
the Property, cause the removal, painting over (in
such color as shall meet with the approval of the
Public Works Director) or such other eradication
thereof ("Eradication Effort") as the Public Works
Director determines appropriate, and shall provide
the Responsibility Party thereafter with an
accounting of the costs of such Eradication Effort
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July 24, 1991
Graffiti Ordinance to Alter Criminal Consequences
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lc c.-- 2..
on a "full cost recovery basis".
B. Eradication Effort. Not sooner than the time
specified in the Order of the Hearing Officer, the
Public Works Director, or his designee, shall
implement the Eradication Order, and shall provide
an accounting to the Responsible Party of the
costs thereof ("Eradication Accounting").
C. Cost Hearing. If the Responsible Party fails
to request a hearing before the Hearing Officer on
the Eradication Accounting ("Cost Hearing"), or if
requested, and a Cost Hearing is conducted after
extending due process to the Responsible Party,
after such a Cost Hearing, the Hearing Officer
determines that all or a portion of the Costs are
appropriately chargeable to the Eradication
Effort, the total amount set forth in the
Eradication Accounting, or such amount thereof
determined as appropriate by the Hearing Officer,
("Assessed Eradication charges") shall be due and
payable by the Responsible Party within 30 days.
The decision of the Hearinq Officer as to the
proper amount of the Assessed Erradication Charqes
shall be final unless the amount of same shall
exceed $500. in which case. the decision shall be
appealable to the citv Council.
D. Lien. If all or any portion of the Assessed
Eradication Charges remain unpaid after 30 days,
pursuant to the authority created by law,
including Government Codes section 38773, et seq.,
such portion thereof as shall remain unpaid shall
constitute and is hereby declared to constitute a
lien on the Property which was the subject matter
of the Eradication Effort. The Director of Public
Works shall present a Resolution of Lien to the
City council, and upon passage and adoption
thereof, shall cause a certified copy thereof to
be recorded with the San Diego County Recorder's
Office.
section 3. section 9.20.050(B) of Chapter 9.20 is hereby
amended to read as follows:
"(B) civil Responsibility for Furnishing Minors. Any
person who violates the provisions of Penal Code 594.1
(relating to the sale, giving, or furnishing of spray paint
cans to minors), or who violates the provisions of section
9.20.040(A) (spray paint cans) or 9.20.045(A) (felt tip
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July 24, 1991
Graffiti Ordinance to Alter criminal Consequences
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markers) shall be personally liable for any and all costs to
any person incurred by said person in connection with the
repair of any property caused by the aerosol paint container
or felt tip marker, and for all attorney's fees and court
costs incurred in connection with the civil prosecution of
any claim for damages, not to exceed, in total, $10,000."
section 4. Section 9.20.050 (C) of Chapter 9.20 is hereby
amended to read as follows:
" C. civil Responsibility for Damages for Wrongful
Display.
Any person who displays an aerosol spray container or
felt tip marker in violation of the provisions of this
Chapter shall be personally liable for any and all costs
incurred by any party in connection with the repair of any
property caused by a person who uses such aerosol spray
container or felt tip marker in violation of the provisions
of California Penal Code section 594, and for all attorney's
fees and court costs incurred in connection with the civil
prosecution of any claim for damages, not to exceed
$1,500.00."
section 5. section 9.20.050 (D) of Chapter 9.20 is hereby
added to read as follows:
D. civil Responsibility for Wrongful Storage.
Any person who stores an aerosol spray container or
felt tip marker in violation of the subparagraph 1 of this
section shall be personally liable for any and all costs
incurred by any party in connection with the repair of any
property caused by a person who shall use such aerosol spray
container or felt tip marker in violation of the provisions
of California Penal Code section 594, and for all attorney's
fees and court costs incurred in connection with the civil
prosecution of any claim for damages, not to exceed
$1,500.00.
1. Proper Storage of Aerosol Spray containers and
Felt Tip Markers.
Aerosol spray containers and felt tip markers
shall be stored when not in use in either (1) a completely
enclosed room which shall, at all times except during access
or substantial occupancy by the owner or an authorized adult
representative of the owner, remain securely locked; or (2)
in a completely enclosed cabinet or other storage device
which shall be permanently affixed to a building or building
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Graffiti Ordinance to Alter Criminal Consequences
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~-~
structure, and which shall, at all times except during
access by the owner or an authorized adult representative of
the owner, remain securely locked. For the purposes of this
section, an owner or authorized representative of the owner,
shall be deemed to have substantial occupancy of a room even
during short periods of absence if the room is part of a
larger structure which is occupied by the owner."
section 6.
9.20.050 Chapter
follows:
Subsection (El is hereby added to section
9.20, which subsection (E) shall read as
"(E) For the purposes of defining "a similar
substance" with the city limits of the City of Chula Vista,
as the term is used in civil Code section 1714.1 (b),
insoluble ink of the type used in a felt t' marker shall be
deemed to be a substance similar pairt. I
Presented by: vedl~ 0
John Lippitt Bruce M. Booga
Director of Public Works city Attorney
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Graffiti Ordinance to Alter Criminal Consequences
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Ct,~- 5
Ordinance E SeCOND
ORDINANCE NO. 2471 RCADING
AND A
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOP~ON
CHULA VISTA AMENDING CHAPTER 9.20 BY AMENDING
SECTION 9.20.035.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN
AS FOLLOWS:
section 1. The section 9.20.035, "Permitting Graffiti to
Remain" of Chapter 9.20, is hereby amended to read as follows:
"
9.20.035 Permitting Graffiti to Remain: Criminal Liabilitv
It is unlawful for any person who is the owner or who has
primary responsibility for control of property or who has
prlmary responsibility for the repair or maintenance of
property ("Responsible Party") to permit property which is
defaced with graffiti to remain so defaced for a period of
seven (7) days after notice of same, unless lll-said person
shall demonstrate by a preponderance of evidence that they do
not have the financial or physical ability to remove the
defacing graffiti, or ill it can be demonstrated that the
Responsible Party has an active program for the removal of
graffiti and has scheduled the removal of the graffiti as part
of that program within 15 davs of the notice. in which case
said araffiti shall be removed not later than 15 davs after
said notice."
Presented by:
APpro;jed as t
IJ-.. At.
John Lippit
Director of Public Works
Bruce M. Boogaa d
City Attorney
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July 30, 1991
Ord. E, Large Graffiti Attractors Time Limit
Page 1
fob- ,
Ordinance F
Sceo
'lVO
RcA,O
~/\;G
A,tvo
A.OOp
I/O/\;
ORDINANCE NO. 2472
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING CHAPTER 9.20 BY AMENDING
THE TITLE TO SECTION 9.20.037.
THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY ORDAIN
AS FOLLOWS:
section 1. The title of Section 9.20.037, "Right of City to
Remove", of Chapter 9.20, is hereby amended to read as follows:
"9.20.037. Right of City to Remove: civil Remedv". No other
changes, amendments or alterations are hereby made to said section.
or~:p
Presented by:
John Lippit
Director of Public Works
Bruce M. Boogaa
city Attorney
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,,~ -I
Chapter 9.20
PROPERTY DEFACEMENT
Current to July 17, 1991 Meeting
Marked for staff-Proposed Changes in Al13, July 23rd Meeting
9.20.010. Purpose and intent.
It is the purpose and intent of the City Council of the
City, through the adoption of this chapter, to provide additional
enforcement tools to protect public and private property from
acts of vandalism and defacement; especially, but not limited to,
graffiti on privately and publicly owned walls, which are
inimical and destructive of the rights and values of private
property owners as well as the total community. It is further
the intent of the city Council, through the adoption of this
notice upon all of those who callously disregard the property
rights of others, that the law enforcement agencies of the city,
both the police department and the prosecutor's office, will
strictly enforce the law and severely prosecute those persons
engaging in the defacement of public and private properties.
9.20.020 Definitions.
A.
altering
physical
"Deface", as used in this Chapter, means the intentional
by physical, mechanical or chemical means of the
shape, dimension, contour or appearance of property.
B. "Aerosol paint container" means any aerosol container,
regardless of the material from which it made, which is adapted
or made for the purpose of spraying paint or other substance
capable of defacing property. (Ord. , Sec. 1, 1991)
C. "Felt tip marker" means any indelible marker or similar
implement with a tip which, at its broadest width is greater than
one-eighth (lj8th) inch, containing an ink that is not water-
soluble. (Ord. , Sec. 1, 1991)
D. "Graffiti" includes anv unauthorized inscription. word.
fiqure. or desiqn that is marked. etched. scratched. drawn. or
painted on anv structural component of anv buildinq. structure.
or other facilitv. reqardless of the nature of the material of
that structural component.
9.20.030 Prohibition of defacement.
It is unlawful for any person to intentionally deface,
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July 30, 1991
Graffiti Chapter Current to July 17, 1991 Meeting
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E-r'H ,S/7 II
"'~-2.
alter, change, destroy, mutilate, remove, take down or take away
any public property or any private property without the consent
of the owner of such property or the public agency charged with
the trusteeship of property. A mistake as to the private
property owner's identity or lack or knowledge that such property
is held by a public agency shall not be a defense to a violation
of this section.
9.20.035 Permitting Graffiti to Remain
It is unlawful for any person who is the owner or who has
primary responsibility for control of property or who has primary
responsibility for the repair or maintenance of property
("Responsible Party") to permit property which is defaced with
graffiti to remain so defaced for a period of seven (7) days
after notice of same, unless said person shall demonstrate by a
preponderance of evidence that they do not have the financial or
physical ability to remove the defacing graffiti, or unless it
can be demonstrated that the Responsible Party has an active
program for the removal of graffiti and has scheduled the removal
of the graffiti as part of that program.
9.20.037. Riqht of citv to Remove.
A. Graffiti as a Nuisance. The existence of qraffiti
within the citv limits of the city of Chula vista is a
public and private nuisance. and may be abated accordinq to
the provisions and procedures herein contained.
B. Riqht of Entry on Private Property Provisions.
1. Securinq Owner Consent.
Prior to enterinq upon private property or property
owned bY a public entity other than the city. for the
purpose of removal of qraffiti. the city shall attempt
to secure the consent of the property owner. and a
release of the city from liability for private or
public property or liability damaqe.
2. Failure to Obtain Owner Consent.
If a Responsible Party fails to remove the offendinq
Graffiti within the time herein specified. or if the
city shall have requested consent to remove or paint
over the offendinq Graffiti and the Responsible Party
shall have refused consent for entry on terms
acceptable to the city consistent with the terms of
this section. the city shall commence Abatement and
Cost Recovery Proceedinqs for the removal of the
qraffiti accordinq to the followinq procedure.
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July 30, 1991
Graffiti Chapter Current to July 17, 1991 Meeting
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~c..-~
3. Abatement and Cost Recoverv Proceedinqs.
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July 30, 1991
A. Notice and Conduct of Due Process Hearinq.
The Director of Public Works ("Hearinq Officer")
shall qive not less than 48 hours notice. served
in the same manner as summons in a civil action in
accordance with Article 3 (commencinq with section
415.10) of Chapter 4 of Title 5 of Part 2 of the
Code of civil Procedure (If the owner of record.
after diliqent search cannot be found. the notice
mav be served bv postinq a copy thereof in a
conspicuous place upon the propertv for a period
of 10 days and publication thereof in a newspaper
of qeneral circulation published in the county in
which the property is located pursuant to section
6062.) to the Responsible Party who is responsible
for the maintenance of a parcel of property
containinq qraffiti ("Property"). and. if a
different person is the owner of record of the
parcel of land or which the nuisance is
maintained. based on the last equalized assessment
roll or the supplemental roll. whichever is more
current. then to said owner also. of a "due
process" hearinq at which said Responsible Partv
shall be entitled to present evidence and arque
that his or her Property does not contain
qraffiti. The determination of the Hearinq
Officer after the "due process" hearinq shall be
final and not appealable. If. after the due
process hearinq. reqardless of the attendance of
the Responsible Party. or his aqent. the Hearinq
Officer determines that the Property contains
qraffiti. the Hearinq Officer shall qive written
notice ("Eradication Order") that. unless the
qraffiti is removed within 5 days thereafter. the
city. or its desiqnated aqent. shall enter upon
the Property. cause the removal. paintinq over (in
such color as shall meet with the approval of the
Public Works Director) or such other eradication
thereof ("Eradication Effort") as the Public Works
Director determines appropriate. and shall provide
the Responsibility Party thereafter with an
accountinq of the costs of such Eradication Effort
on a "full cost recovery basis".
B. Eradication Effort. Not sooner than the time
specified in the Order of the Hearinq Officer. the
Public Works Director. or his desiqnee. shall
implement the Eradication Order. and shall provide
an accountinq to the Responsible Party of the
Graffiti Chapter Current to July 17, 1991 Meeting
Page 3
~c. -(.j
costs thereof ("Eradication Accountina").
C. Cost Hearina. If the Responsible Party fails
to reauest a hearina before the Hearina Officer on
the Eradication Accountina ("Cost Hearina"). or if
reauested. and a Cost Hearina is conducted after
extendina due process to the Responsible Party.
after such a Cost Hearina. the Hearina Officer
determines that all or a portion of the Costs are
appropriate Iv charaeable to the Eradication
Effort. the total amount set forth in the
Eradication Accountina. or such amount thereof
determined as appropriate bv the Hearina Officer.
("Assessed Eradication Charaes") shall be due and
payable bv the Responsible Party within 30 days.
D. Lien. If all or any portion of the Assessed
Eradication Charaes remain unpaid after 30 days.
pursuant to the authority created bv law.
includina Government Codes section 38773. et sea..
such portion thereof as shall remain unpaid shall
constitute and is herebY declared to constitute a
lien on the Property which was the subiect matter
of the Eradication Effort. The Director of Public
Works shall present a Resolution of Lien to the
city Council. and upon passaae and adoption
thereof. shall cause a certified copy thereof to
be recorded with the San Dieao County Recorder's
Office.
9.20.040 Prohibition of sale, possession, display for purposes
of sale, and storage of aerosol paint containers.
A. Sale or Furnishing to Minors. It shall be unlawful for
any person, other than a parent or legal guardian, to sell,
exchange, give, loan, or otherwise furnish, or cause or permit to
be sold, exchanged, given, loaned, or otherwise furnished, any
aerosol paint container to any person under the age of eighteen
years without the consent of the parent or other lawfully
designated custodian of the person, which consent shall be given
in person.
B. Possession. It shall be unlawful for any person under
the age of eighteen years to have in his or her possession any
aerosol paint container while upon public property or upon
private property without the consent of the owner of such private
property whose consent shall be as to the person's presence while
in the possession with a aerosol paint container.
C. Display for the Purposes of Sale. No person, firm or
entity engaged in a commercial enterprise ("Seller") shall
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July 30, 1991
Graffiti Chapter Current to July 17, 1991 Meeting
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display any aerosol paint container for sale, trade or exchange,
nor shall store any aerosol paint container pending display for
sale or pending sale, except in an area from which the public
shall be securely precluded without employee assistance. Two
such acceptable methods for displaying aerosol paint containers
for sale shall be by containment in (1) a completely enclosed
cabinet or other storage device which shall be permanently
affixed to a building or building structure, and which shall, at
all times except during access by authorized representatives,
remain securely locked; or in an enclosed area behind a sales or
service counter from which the pUblic is precluded from entry.
9.20.045. Prohibition of sale, possession and display of felt
tip markers.
A. Sale or Furnishing To Minors. It shall be unlawful for
any person, other than a parent or other legal guardian, to sell,
exchange, give, loan, or other furnish, or cause or permit to be
sold, exchanged, given, loaned, or otherwise furnished, any felt
tip marker to any person under the age of eighteen years without
the consent of the parent or other lawfully designated custodian
of the person, which consent shall be given in person.
B. Possession by Minors. It shall be unlawful for any
person under the age of eighteen years to have in his or her
possession any felt tip marker while upon public property or upon
private property without the consent of the owner of such private
property, except while attending, or travelling to or from a
school at which the person is enrolled, if the person is
participating in a class at said school which has, as a written
requirement of said class, the need to use felt tip markers.
C. Display for the Purposes of Sale. No person, firm or
entity engaged in a commercial enterprise ("Seller") shall
display any felt tip marker for sale, trade or exchange, nor
shall store any felt tip marker pending display for sale or
pending sale, except in an area from which the pUblic shall be
securely precluded without employee assistance. One such
acceptable method for displaying felt tip markers for sale shall
be in a completely enclosed cabinet or other storage device which
shall be permanently affixed to a building or building structure,
and which shall, at all times except during access by authorized
representatives, remain securely locked.
9.20.050. Penalties for violation of chapter.
A. Criminal Penalties. Any and all violations of this
chapter shall be punishable either as an infraction or a mis-
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JUly 30, 1991
Graffiti Chapter Current to July 17, 1991 Meeting
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to (!.- ~
demeanor, at the discretion of the city Attorney.'
1. Enforcement Policy as to Wrongful Display.
Notwithstanding the foregoing, it shall be the policy of the
city that the criminal prosecution of a violation of
Subsection C, "Display for the Purposes of Sale" of section
9.20.040, "Prohibition of sale, possession, display for
purposes of sale, and storage of aerosol paint containers",
or Subsection C, "Display for the Purposes of Sale" of
section 9.20.045, "Prohibition of sale, possession and
display of felt tip markers" shall commence only after the
following two events have occurred:
(1) Notice of the enactment of the section 9.20.040(C)
and/or 9.20.045(C) have been mailed to the violator;
and (2) notice of a specific act of violation has been
provided to the violator, and 10 days thereafter have
elapsed without correction or remediation of the
violation. Nothing herein in this enforcement policy
shall operate to condition the right of the City to
prosecute, or cause the prosecution, of a violation of
this Chapter."
B. raren~al ci7il Respensieili~y fer Damages. Any paren~
or e~her le~al ~uardian \.~o conaen~s ~o, permi~a, or e~her~iae
](ne'\dngly alle\:s her or his ehild under ~he age of eigh~een ~e
pesseaa an aereoel paint eentainer or a felt tip marker shall ee
persenally liaele for any ana all ees~s to any person ineurrea ey
aRY ~arty in eeRRee~ieR ~ith the repair sf any preper~y eauaea 2Y
oaia chila, and for all atterncyls fees and 08Hrt coots incurred
in eenneetion with the ei7il preceeution of any claim fer
damages. civil Responsibilitv for Furnishinq Minors. Anv person
who violates the provisions of Penal Code 594.1 (relatinq to the
sale. qivinq. or furnishinq of sprav paint cans to minors). or
who violates the provisions of section 9.20.040(A) (sprav paint
cans) or 9.20.045(A) (felt tip markers) shall be personallY
liable for any and all costs to any person incurred by said
person in connection with the repair of any property caused by
the aerosol paint container or felt tip marker. and for all
attorney's fees and court costs incurred in connection with the
civil prosecution of any claim for damaqes. not to exceed. in
totaL $10.000. "
C. civil Responsibility for Damaqes Wronqful Display ef
8toraae. Any person who displays er store a an aerosol spray
1. This language is similar to Penal Code section 594 for
graffiti vandalism. Damages for illegal sale or possession are
not expected to be significant.
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Graffiti Chapter Current to July 17, 1991 Meeting
Page 6
~C!.- f
container or felt tip marker in violation of the provisions of
this Chapter shall be personallY liable for anv and all costs
incurred bv anv partv in connection with the repair of anv
property caused bY a person who uses such aerosol spray container
or felt tip marker in violation of the provisions of California
Penal Code Section 594. and for all attorney's fees and court
costs incurred in connection with the civil prosecution of any
claim for damaqes. not to exceed $1.500.00.
D. civil Responsibility for Wronqful Storaqe.
Any person who stores an aerosol spray container or felt tip
marker in violation of the subparaqraph 1 of this section shall
be personal Iv liable for any and all costs incurred bv any party
in connection with the repair of anv property caused bv a person
who shall use such aerosol spray container or felt tip marker in
violation of the provisions of California Penal Code section 594.
and for all attorney's fees and court costs incurred in
connection with the civil prosecution of anY claim for damaqes.
not to exceed $1.500.00.
1. Proper Storaqe of Aerosol Spray containers and Felt
Tip Markers.
Aerosol spray containers and felt tip markers shall be
stored when not in use in either (ll a completely enclosed
room which shall. at all times except durinq access or
substantial occupancy bY the owner or an authorized adult
representative of the owner. remain securelY locked: or (2l
in a completelY enclosed cabinet or other storaqe device
which shall be permanently affixed to a buildinq or buildinq
structure. and which shall. at all times except durinq
access bY the owner or an authorized adult representative of
the owner. remain securely locked. For the purposes of this
section. an owner or authorized representative of the owner.
shall be deemed to have substantial occupancy of a room even
durinq short periods of absence if the room is part of a
larqer structure which is occupied by the owner."
(El For the purposes of defininq "a similar substance" with
the city limits of the city of Chula vista. as the term is used
in civil Code section 1714.1 (bl. insoluable ink of the type used
in a felt tip marker shall be deemed to be a substance similar to
paint.
Presented by:
Approved as to form by:
John Lippitt
Bruce M. Boogaard
graf21a.wp
July 30, 1991
Graffiti Chapter Current to July 17, 1991 Meeting
Page 7
~~-~
ORDINANCE NO. 2473
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING SUBSECTION (A) "CRIMINAL
PENALTIES" OF SECTION 9.20.050 "PENALTIES FOR
VIOLATION OF CHAPTER" OF CHAPTER 9.20
"PROPERTY DEFACEMENT" OF THE CHULA VISTA
MUNICIPAL CODE TO PROVIDE FOR AN ENFORCEMENT
POLICY FOR WRONGFUL DISPLAY OF AEROSOL PAINT
CONTAINERS AND FELT TIP MARKERS.
WHEREAS, at their Council Meeting of July 16, 1991, the City
Council introduced Ordinance No. 2464; and,
WHEREAS, Ordinance No. 2464 contained a provision, Section I,
imposing criminal liability on merchants for the "wrongful display"
of aerosol paint containers and felt tip markers; and,
WHEREAS, at their Council meeting of July 23, 1991, the City
Council requested the City Attorney to bring back an enforcement
policy that would provide for adequate notice, prior to
commencement of criminal prosecution, to local merchants of the
responsibility for containing aerosol paint containers and felt tip
markers wi thin areas of their stores from which the public is
precluded; and,
WHEREAS, the purpose of this ordinance is to set forth such an
enforcement policy;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Subsection A "Criminal Penalties" of Section
9.20.050 "Penalties for Violation of Chapter" of Chapter 9.20
"Property Defacement" is hereby amended to read as follows:
"
A. Criminal Penalties. Any and all violations of this
chapter shall be punishable either as an infraction or a mis-
demeanor, at the discretion of the City Attorney. I~ is fur
~hcr ul'lliers~eeel. ~ha~ fiHaHcial pareH~al rcspoHsil9ili~y for aHY
acto of vandalism shall 1ge s~rie~ly caforceel..1
1. Enforcement policv as to Wronaful Displav.
Notwithstandina the foreaoina. it shall be the
policy of the citv that the criminal prosecution of
a violation of Subsection C. "Displav for the
Purposes of Sale" of Section 9.20.040. "Prohibition
of sale. possession. displav for purposes of sale.
and storaae of aerosol paint containers". or
grafJ 5. wp
July 30, 1991
Ordinance No. 2473
Page 1
Co d.- I
Subsection C. "Displav for the Purposes of Sale" of
section 9.20.045. "Prohibition of sale. possession
and displav of felt tip markers" shall commence
onlv after the followinq two events have occurred:
(1) Notice of the enactment of the section
9.20.0401C) and/or 9.20.0451C) have been mailed to
the violator: and (2) notice of a specific act of
violation has been provided to the violator. and 10
davs thereafter have elapsed without correction or
remediation of the violation. Nothinq herein in
this enforcement policv shall operate to condition
the riqht of the citv to prosecute. or cause the
prosecution. of a violation of this Chapter."
Presented by:
ed a'lt.o f
ruce M. Boogaard
City Attorney
:D
John Lippitt
Public Works Director
graf35.wp
Endnotes:
1. This is proposed for deletion because the City Council deleted,
on staff's recommendation, our local parental civil responsibility
provision, relying instead on State Law.
graf35.wp
July 3D, 1991
Ordinance No. 2473
Page 2
Cod-2
ORDINANCE NO. 2~~q
... ,.'C'.~...,S
AN ORDINANCE OF THE CITY O!,.rCI'\'l,J.k'-VrSTA
AMENDMENT TO THE CONTRACT .:oJ'l1h:'WEEN THE
VISTA AND THE BOARD OF ADMINISTRATION
EMPLOYEES' RETIREMENT SYSTEM
",,"1"\\
I."",,-I...J
, ~Of\\O~\
:--\V
AUTHORI ZING AN
CITY OF CHULA
OF THE PUBLIC
The City Council of the City of Chula vista does ordain
as follows:
Section 1. That an amendment to the Contract between
the City Council of the City of Chula vista and the Board of
Administration, California Public Employees' Retirement system is
hereby authorized, a copy of said amendment being attached
hereto, marked "Exhibit A", and by such reference made a part
hereof as though herein set out in full.
Section 2. The Mayor of the City Council of the City of
Chula Vista is hereby authorized, empowered, and directed to
execute said amendment for and on behalf of said Agency.
Section 3. This ordinance shall take effect and be in
full force on the thirtieth day from and after its adoption.
Candy Boshell, Director of
Personnel
9055a
:JJ
Presented by
ity Attorney
7-1
COUNCIL AGENDA STATEMENT
II.. '2. .., Cj
Resolution accepting California Library Services Act
Grant Funds for the purpose of providing family
literacy services in Chula vista and appropriating
these funds to amend the Fy 1991-92 budget.
SUBMITTED BY: Library Director~
REVIEWED BY: City Manager..J(1IuO~1
ITEM ~
MEETING DATE 8-6-91
ITEM TITLE:
(4/5ths Vote: Yes~No__)
BACKGROUND:
The State of California has recently approved the Chula vista
Literacy Team's application for grant funds in the amount of $9,600
to provide family literacy services during Fy 1991-92 in
cooperation with the Chula vista Elementary School District's Even
Start program. In order to receive these funds council
authorization is needed, recorded by certified resolution,
approving this action.
RECOMMENDATION:
Adopt resolution.
BOARD/COMMISSION RECOMMENDATION:
The Library Board of Trustees voted to support the Family Literacy
grant application at their June 26, 1991 meeting.
DISCUSSION:
The funds will be used to offer four special programs to be held
at the Chula vista Public Library. These programs will de designed
to welcome and orient adult learners and their families to the
library. The adult learners will be participants in both the Even
Start and Chula vista Literacy Team programs. In addition, a
selection of quality childrens' literature will be purchased and
distributed to family literacy program participants to build a
small home library.
FISCAL IMPACT:
The city will receive $9,600.00 in grant funds to implement the
family literacy program.
~-I
RESOLUTION NO.~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING CALIFORNIA LIBRARY
SERVICES ACT GRANT FUNDS FOR THE PURPOSE OF
PROVIDING FAMILY LITERACY SERVICES IN CHULA
VISTA AND APPROPRIATING FUNDS TO AMENDED THE
FY 1991-92 BUDGET
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the State of California has recently approved
the Chula Vista Literacy Team I s application for grant funds in
the amount of $9,600 to provide family Ii teracy services dur ing
FY 1991-92 in cooperation with the Chula Vista Elementary School
District's Even Start Program; and
WHEREAS, in order
authorization is needed,
approving this action.
to receive
recorded by
these funds Counci 1
certified resolution
the City
Services
literacy
NOW, THEREFORE, BE IT RESOLVED that the City Council of
of Chula Vista does hereby accept the California Library
Act Grant Funds for the purpose of providing family
services in Chula Vista.
BE IT FURTHER RESOLVED that the
appropropr ia ted from the unappropr ia ted
Fund to amend the FY 1991-92 budget.
sum of $9,600 is hereby
balance of the General
Presented by
form by
Rosemary Lane, Library Director
9130a
Attorney
~-l.
COUNCIL AGENDA STATEMENT
Item q
Meeting Date 8/6/91
Resolution 1<D'l.~O Accepting bids and awarding contract
for upgrade of existing telephone system
SUBMITTED BY: Director of Finance;(~
REVIEWED BY: City Managerj~ ~~\
ITEM TITLE:
(4/5ths Vote: Yes___No~)
Bids were received and opened at 2:00 p.m. on July 15, 1991, for the upgrade
of the exi st i ng telephone system. The current confi gurat i on is at capacity
and needs to be upgraded to accommodate new telephones . Thi s upgrade wi 11
consist of additional hardware and software.
RECOMMENDATION: That Council accept the bids and award the contract to NEC
Business Communications Systems (West) Inc.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Five vendors were mailed bid proposal forms with three submitting the
following bids:
Bidder
Amount
NEC Business Communications Systems (West) Inc.,
San Diego
Com-Aid, San Diego
Atel Communications, San Diego
$25,372.15
25,568.06
26,651.81
The low bid of NEC Business Communication Systems (West) Inc. meets
specifications and is acceptable to the Information Systems Division. The
project will be completed in 30 days.
FISCAL IMPACT: Funds are provided for in the Capital Improvement Program
fund.
WPC 0291U
q-I
COUNCIL AGENDA STATEMENT
Item I 0
Meeting Date 8/6/91
ITEM TITLE: Resolution \ lo '2..1j/ I Extending
Contractual Agreement with South Bay
Community Services to provide Youth
Counseling, Community Outreach and
Graffiti Eradication
/.
SUBMITTED BY: Chief of po~LJ
REVIEWED BY: City Manage~ ~6~ (4/5ths Vote Yes_No XX)
Since FY 1985-86, the City has contracted with South Bay community
Services to provide juvenile services. This contract is
recommended to be extended through FY 1991-92 and will include
funds for the Youth Counseling, The Runaway and Homeless Program
and the Graffiti Eradication Program.
RECOMMENDATION: That Council adopt the Resolution
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable
DISCUSSION:
South Bay community Services (SBCS) and the Juvenile Bureau of the
Police Department have worked together for several years providing
a variety of services for juveniles and their families. In fiscal
year 1991-92 the contract with SBCS will provide the following
programs:
1) A full time Counselor who will work with juveniles who
have been contacted by police officers after being
involved in delinquent behavior. This Counselor
supervises a second SBCS Counselor who is assigned to our
Juvenile Bureau at no cost to the city, the salary being
paid by a State grant obtained by SBCS.
2) A full time Community Service Coordinator who manages the
Graffiti Eradication Program which includes scheduling
the eradication sites, assigning youths to perform the
painting and supervising these groups. This individual
will also give talks to parents educating them in
reference to gang activity and gang culture.
10-\
Page 2, Item \0
Meeting Date 8/6/91
3) A half-time outreach worker who makes contact with
homeless and runaway juveniles throughout the community.
After establishing communications with these young people
they are offered emergency shelter, medical and job
referrals, foster care and the 24-hour counseling hot
line number. Many of them have been reunited with their
families as a direct result of this program.
FISCAL IMPACT: $71,384 is budgeted in fund 100, Account 1050-5201
WJW/amh
GRAFFITI
10-2.
RESOLUTION NO. '10 '2. ~ I
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA EXTENDING CONTRACTUAL AGREEMENT
WITH SOUTH BAY COMMUNITY SERVICES TO PROVIDE
YOUTH COUNSELING, COMMUNITY OUTREACH AND
GRAFFITI ERADICATION
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, since FY 1985-86, the City has contracted with
South Bay Community Services to provide juvenile services; and
WHEREAS, it is recommended that this contract be
extended through FY 1991-92; and
WHEREAS, said contract will include funds for the Youth
Counseling, The Runaway and Homeless Program and the Graffiti
Eradication Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does hereby extend contractual agreement
with South Bay Community Services to provide Youth Counseling,
Community Outreach and Graffiti Eradication.
Presented by
il'1' 0
Bruce M. Boog
form by
William J. Winters, Chief of
Police
9122a
J)
d, City Attorney
10-3
COUNCIL AGENDA STATEMENT
Item II
ITEM TITLE:
Meeting Date 8/6/91
Resolution 1(., ,ljt2. Amending a lease agreement with Hubert
A. Chri stensen and Margaret Scott Bl air for 6,300 square foot
building at 311 F Street, Chula Vista, CA, and authorizing
Mayor to execute same
Director of Parks and Recreation~~
City Manage~~~ (4/5ths Vote: Yes___No-x-)
SUBMITTED BY:
REVIEWED BY:
At its September 26, 1989 meeting, Council approved a 1 ease agreement wi th
Hubert A. Christensen and Margaret Scott Blair for the 6,300 square foot
building at 311 F Street. The building has been used for recreational
activities for seniors during the renovation of Norman Park Center.
RECOMMENDATION: That Council adopt resolution approving the amended lease
agreement and authorize Mayor to sign on behalf of the City Council.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
In order to provide space for the recreational activities held at Norman Park
Center during the facility's renovation, it was necessary to lease other space
so that the Center could be completely closed during its renovation. A lease
was approved for a 6,300 square foot building to accommodate the recreational
needs.
The basic term of the lease was for one year, commencing October 1, 1989, and
end i ng on the 30th day of September 1990. The Ci ty also had four 90-day
options to renew the lease, giving the City a total potential lease period of
two years. The lease now expires September 30, 1991. . With the City in its
1 ast 90-day opt ion, the 1 ease is proposed to be amended to extend through
January 31, 1992. Any period thereafter will be considered a month-to-month
tenancy. The lease payments will continue to be $5,995 per month. This
calculates out to be approximately 93 cents per square foot per month.
As of th is date, frami ng has been completed on Norman Park Center and work
wi 11 now begi n on the i nsta 11 at i on of the roof and wall s. The construction
project is on schedule with the anticipated completion date set for December
1991. The Center should be operational by mid-January.
FISCAL IMPACT: Total rental payments for the term of the amended agreement
(4 months) wi 11 be $23,980. Funds are avail abl e and appropri ated for thi s
purpose in the 1991-92 Capital Improvement Budget.
WPC 1685R
\I-I
RESOLUTION NO. 1<0 L iii 1-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING FIRST AMENDMENT TO LEASE
BETWEEN THE CITY OF CHULA VISTA AND HUBERT A.
CHRISTENSEN AND MARGARET SCOTT BLAIR FOR 6,300
SQUARE FOOT BUILDING AT 311 F STREET, CHULA
VISTA, CALIFORNIA AND AUTHORIZING THE MAYOR TO
EXECUTE SAME
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, at its September 26, 1989
approved a lease agreement with Hubert A.
Margaret Scott Blair for the 6,300 square foot
Street; and
meeting, Council
Christensen and
building at 311 F
WHEREAS, said building
activities for seniors during
Center; and
has
the
been used for
renovation of
recreational
Norman Park
WHEREAS, the basic term of the lease was for one year,
commencing October 1, 1989, and ending on the 30th day of
September 1990 with the City having four 90-day options to renew
the lease, giving the City a total potential lease period of two
years; and
WHEREAS, the lease now expires September 30, 1991 and
with the City in its last 90-day option, the lease is proposed to
be amended to extend through January 31, 1992.
NOW, THEREFORE, BE IT RESOLVED that
the Ci ty of Chula Vista does hereby approve
to Lease Agreement between the City of Chula
Christensen and Margaret Scott Blair for
building at 311 F street, a copy of which
office of the City Clerk.
the City Council of
the First Amendment
vista and Hubert A.
6,300 square foot
is on file in the
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula Vista is hereby authorized and directed to execute said
First Amendment for and on behalf of the City of Chula Vista.
Presented by
Approved as
form by
^
---D
Jess Valenzuela, Director of
Parks and Recreation
9l20a
Bruce M. Boogaa d, Clty Attorney
11-2
FIRST AMENDMENT TO LEASE BETWEEN THE CITY OF CHULA
VISTA AND HUBERT A. CHRISTENSEN AND MARGARET SCOTT-BLAIR,
OWNERS OF 311 F STREET, CHULA VISTA, CA.
This First Amendment to Lease made and executed,
this day of July, 1991 between Hubert A. Christensen and
Margaret Scott-Blair, owners (Christensen, Scott-Blair
properties) 376 Center street, #350, Chula Vista, California
91910, hereinafter designated the Lessor, and The City of Chula
Vista, a municipal corporation, hereinafter designated the Lessee.
WIT N E SSE T H :
WHEREAS, the parties
lease for the above-referenced
September 30, 1991, and
have previously
premises for
entered
a period
into a
ending
WHEREAS, the parties mutually desire to extend said
lease for an additional four-month period.
NOW, THEREFORE, the parties agree as follows:
1. That the paragraph preceding "FIRST" is amended to
read as follows:
The property is to used by Lessee for recreational
activities presently held at Norman Park Center and/or office
purposes and/or sublease to the County of San Diego for
governmental purposes, from the first of October, 1989 and ending
on the 31st day of January, 1992. Any holding over by Lessee
thereafter shall be considered a month-to-month tenancy for all
purposes.
2. paragraph "FIFTH" of the original agreement is
amended to read:
FIFTH:
repaired by the
building must be
same condition as
"lease ready" for
Any major renovation to the interior must be
Lessee upon termination of this lease. This
returned to the Lessors in substantially the
it is at acceptance of the lease and it must be
the next tenant.
Notwithstanding the above, Lessee shall have the right
to remove the partitions in the front part of the building
wi thout replacing them. Lessee may remove the carpet. Lessee
may install a ramp at the front entrance to make it accessible to
wheel chairs.
3. All other terms and condi tions not amended by this
First Amendment shall remain in full force and effect.
-1-
\ \ - 2>
Executed this
California.
day of August, 1991 at Chula Vista,
Mayor of the city of Chula
Vista
LESSOR:
~~~~o---
u ert . Chr1stensen
-
LESSEE: THE CITY OF CHULA VISTA
Attest
City Clerk
/)-., -,.' /'-- ~ i~ ~ P
. J",. c.-,'"\. .c:. ~ ~. t...? (" .~ I r , ;
Marganet Scott-Bla1r
Approved as to form by
L~~
~~'City Attorney
9066a
") /'1",/1/
,
-2-
\ I-~
COUNCIL AGENDA STATEMENT
Item \ 'l..
SUBMITTED BY:
Meeting Date 8-6-91
Reso 1 ut ion H... 'l. <it~ Orderi ng certain open space and
maintenance facilities to be maintained and levying the
assessment for Fiscal Y~ar 19 1-92 for Open Space District
No. 18
Director of Public Works ()
Director of Parks and Recreatio~
City Manage~ ~~ (4j5ths Vote: Yes___No-X-)
Council referral number 2352
In accordance with the City Municipal Code Section 17.07, the City Engineer
had reports prepared on the spread of assessments for the open space
districts. The reports were accepted in June, 1991 and the required publ ic
hearing was held on July 9, 1991. At that meeting Council directed staff to
meet wi th the property owners of Open Space Di stri ct No. 18 and return to
Council on August 6, 1991. Council also directed staff to review the
contracts and maintenance of Open Space District Nos. 7, 11 and 18.
ITEM TITLE:
REVIEWED BY:
RECOMMENDATION: That Council adopt the resolution.
DISCUSSION:
On July 9, 1991, at the public hearing regarding the levying of assessments
for the maintenance of landscaping for Open Space Districts, Council deferred
the levying of assessment for Open Space District No. 18, Sunbow subdivision,
pending a staff meeting with the residents of that district to address the
concerns they raised before Council. On July 17, 1991, staff which included
the Di rector of Parks and Recreat ion, the Open Space Coordi nator, the Open
Space Inspector, and the Assessment Engineer, met with a group of seven
homeowners who represented the homeowners of Di stri ct 18. These homeowners
were:
Name
Address
Ms. Teresa Walker
Mr. & Mrs. Ernie & Zenie Parrish
Mr. Ceasar Lopez
Mr. & Mrs. George & Liz Sanchez
Mr. Larry Laughery
1188 Sundown Lane
694 Rainbow Drive
1156 Sunbow Lane
552 Sunburst Lane
1164 Sundown Lane
During the 2 1/4 hour meeting an agenda which addressed the concerns brought
before Council, specifically, the District's budget, reserve requirement,
assessment, utility billings, landscape maintenance contract performance, and
site specific maintenance concerns were addressed and discussed by staff.
Di stri ct budgets were provi ded and exp 1 a i ned to all attendees as well as the
budget formation process and how the budget figures are arrived at. In
reviewing the line item budget, the homeowners requested to el iminate the
\'2-\
Page 2, Item \"2-
Meeting Date 8-6-91
multiple changes of "seasonal color" at the monument areas at Telegraph Canyon
Road, Med i ca 1 Center Dri ve and East Naples Street and that perenni alp 1 ants
not requiring seasonal changes be installed instead. This change resulted in
a decrease of $6,763 in the district's object account 568-5680-5298, lowerinQ
the entire district's budget to $116,310 compared to $123,070 as previously
submitted and approved by Council. Based upon this change in the district's
budget, as well as newly updated data which affected the district's FY 90-91
fund balance (primarily savings accrued in the Utilities and City Staff
Servi ces accounts), Engi neeri ng staff has revi sed the recommended assessment
to $285.94 per EDU (equivalent dwelling unit), thereby lowering the assessment
of $321.44 previously submitted to Council. (See exhibits A and B.) These
changes met with the approval of the homeowner representatives.
Furthermore, to clarify misunderstandings about performance obligations of the
1 andscape mai ntenance contract for Di stri ct 18 staff detail ed the di fferent
codes or levels of landscape maintenance required for specific types and
levels of landscaping as specified in the City's contract document. It was
exp 1 a i ned that the 1 eve 1 s of maintenance requi red in the contract correspond
to the type of landscape involved. This can vary from ornamental entry
monument areas with formally manicured seasonal "color" flower areas, to turf
and decorat i ve parkways, to mass eros i on control plant i ngs for slope
stabilization, to undisturbed native slopes which are habitat-and-ecosystem
preservat i on areas not requi ri ng the "weedi ng" that 1 andscaped and irrigated
areas may require.
Of particular note was the significance of explaining to the homeowners that
the mass erosion control slope plantings are designed and planned to
"naturalize". For example, the initial "nurse" or "cover" crop consisting
primarily of hydrophilic, shallow rooted, quick growing and germinating flower
crops such as gazanias, experience a life span of only a few seasons,
eventually making way for the "cl imax community" crop consisting of drought
tolerant species largely composed of native, deep rooting, slow growing shrubs
which provide the permanent erosion control and slope stabilization with
minimum water consumption. It is during this transition from the initial
"nurse" crop to the "climax community" (largely composed of natives) that
mi sunderstandi ng occurs. Typi ca 1 concerns are that i rri gat i on is 1 esseni ng
and that weeds are taking over whereas in fact the irrigation program is
purposely being weaned during this period for the end-crop, composed of
immature natives which are easily confused for weeds.
Following the discussion of intentionally planned, successional plant
communities, it was the conclusion of the homeowners that the existing
landscape maintenance contractor was providing performance satisfactory to the
specifications of the contract and that the level of service had been
improving. The homeowners expressed no objections to the renewal of the
existing contract in 1 ight of the fact that when this District was last bid,
the next lowest bid was over $15,000 more than the existing contract and that
the original developer paid twofold the existing contract for the maintenance
of the same area.
, 2. - '2..
Page 3, Item I ~
Meeting Date 8-6-91
Finally, staff addressed the concerns of Mr. and Mrs. Sanchez of 552 Sunburst
Lane. As Council may recall, the Sanchezes were incorrectly under the
assumption that a portion of land on the western border of their lot was
dedicated City Open Space which would require landscaping and irrigation.
Staff explained to the Sanchezes that this area was actually parkway within
the street right-of-way and it was not intended to be maintained by the
District. The Sanchezes informed staff that it was their intention to pursue
their goal of landscaping and irrigation this area with the original developer.
At the concl us i on of the meeting, Ms. Walker i ndi cated that she woul d bri ng
this information to the homeowners of her district. The following week, staff
contacted Ms. Walker and she i ndi cated that she had rel ayed thi s i nformat i on
to all concerned part i es of her Di stri ct and that everyone seemed sat i sfi ed.
On this basis, staff recommends approving the levy of assessments ($285.94/edu
to include a 45% reserve) for Open Space District No. 18.
Contracts and maintenance of Open Space District Nos. 7 and 11 will be
addressed separately by the Parks and Recreation Department. District 18 was
addressed at thi s meet i ng because the 1 evy of assessments had been deferred
and staff has an August lOth deadl ine to get the assessment roll to the
County. Staff has notified all property owners within Open Space District No.
18 of tonight's meeting.
FISCAL IMPACT: None to the City. All costs associated with Open Space
Districts are paid by those within the District.
DDS: OS 001
WPC 5713E
IL-~
EXHIBIT A
PART B--ESTIMATE OF COST AND NET ASSESSMENT
OPEN SPACE DISTRICT NO. 18 (MODIFIED 8-6-91)
CONTRACTUAL SERVICES $ 68,970
CITY STAFF SERVICES 13,380
UTILITIES 30,990
LANDSCAPE SUPPLIES 990
MATERIALS TO MAINTAIN BLDGS, STRUCTURES, GRDS 1.980
ESTIMATED MAINTENANCE COST $ 116,310
RESERVE REQUIREMENT (45%) 52,340
LESS BALANCE AVAILABLE FROM PREVIOUS FISCAL YEAR 57.834
NET ASSESSMENT $ 110,816
RESIDENTIAL ASSESSMENT = $110,816/ 387.55 = $285.94
WPC 5713E
12.-Y
EXHIBIT B
J'AET c: M;SE~;SMENT ROLL (MODIFIED tH" -:jl)
OPEN SPACE DISTRICT NO_ 1f\
19~J1/92 ASc;ESSMENT PEE UNIT -
640-070 <30)
640-07040
640-251-01 to 53
640- 252--01 to 40
640-252-44 to 59
640-260-01 to 29
640-260-31 to 71
C40--260-74
G40-271-01 t.o 56
640-272-01 to 49
12-5
28t,.94
100.00
:~. 55
53.00
40.00
lEi.OO
2:J.00
41. 00
1.00
56.nO
49.00
387.55
~~8, f)94 . UO
729. 16
15,154.82
11 ,437.60
4,575.04
8,292.26
11, 723.54
285.94
16,012.64
14,011.06
nO,81C.06
RESOLUTION NO. '~2~3>
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ORDERING CERTAIN OPEN SPACE AND
MAINTENANCE FACILITIES TO BE MAINTAINED AND
LEVYING ASSESSMENT FOR FISCAL YEAR 1991-92
FOR OPEN SPACE DISTRICT NO. 18
The City Council of the City of Chu1a Vista does hereby
resolve as follows:
WHEREAS, in accordance with the Chula Vista Municipal
Code Chapter 17.07, the City Engineer has prepared a report on
the spread of assessments for the open space districts; and
WHEREAS, the reports were accepted in June, 1991 and the
required public hearing was held on July 9, 1991; and
WHEREAS, at that meeting Council directed staff to meet
with the property owners of Open Space District No. 18 and return
to Council on August 6, 1991; and
WHEREAS, on July 17, 1991, staff which included the
Director of Parks and Recreation, the Open Space Coordinator, the
Open Space Inspector and the Assessment Engineer, met with a
group of seven homeowners of District 18; and
WHEREAS, during said meeting, the concerns of the
homeowners regarding the District I s budget, reserve requirement,
assessment, utility billings, landscape maintenance contract
performance and site specific maintenance were addressed and
discussed by staff; and
WHEREAS, to
recommends approving
include a 45% reserve)
the homeowners' satisfaction, staff
the levy of assessments ($285.94/edu to
for Open Space District No. 18.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does hereby order certain open space and
maintenance facilities to be maintained and levying the
assessment for Fiscal Year 1991-92 for Open Space District No. 18
as set forth hereinabove.
Presented by
Approved as
orm by
John P. Lippitt
Director of Public Works
~~
Bruce M. Boogaar
City Attorney
9131a
1'2.-~
~
~
COUNCIL AGENDA STATEMENT
ITEM TITLE: a)
Item
Meeting Date 7/9/91
Ordinance Amending Sections 17.07.010, 17.07.030
and 17.07.040 of the Chula Vista Municipal Code relating to
open space districts and declaring the urgency thereof
b) Public Hearing: City Open Space and Maintenance Districts for
Fiscal Year 1991-92
c) Resolution Ordering certain open space and
maintenance facilities to be maintain~d and levying assessment
for Fiscal Year 1991-92 for Open Space District No. 11
d) Resolution: Ordering certain open space and
maintenance facilities to be maintained and levying assessment
for fiscal Year 1991-92 for Open Space "District Nos. 1-2, 4-6,
9, lQ, 14, IS, 17, 18, EastLake Maintenance District No.1 and
Town Centre I Landscaping District
e) Resolution Ordering certain open space and
maintenance facilities to be maintained and levying assessment
for Fiscal Year 1991-92 for Open Space District Nos. 3, 7, 8
and 20 and Bay Boulevard Lands~a~ng Districts
SUBMITTED BY: Director of Public Works~~
Director of Parks and Re~~tion
REVIEWED BY:
City Manager
(4/5ths Vote: Yes-x--No___)
In accordance with the City Municipal Code Section 17.07, the City Engineer
prepared reports on the spread of assessments for the open space districts.
The reports were accepted and the required public hearing was set by Council
at its meeting of June 18, 1991.
An emergency ordinance is presented tonight to modify the City Municipal Code
to allow the City to maintain an additional 50% contingency reserve.
REcottIENDATlON: Staff reconunends that Council adopt the emergency ordinance
and approve the resolutions levying said assessments for Fiscal Year 1991-92.
If the emergency ordinance is not approved, staff reconunends that the
resolution to levy assessments for Open Space District Nos. 3, 7, 8 and 20 and
Bay Boulevard Landscaping District not be approved at this time. In sucn
case, staff will return to Council with the assessments lowered pursuant to
the requirements of our current Municipal Code.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
1'2-l
DISCUSSION:
Page 2. Item
Meeting Date 7/9/91
On June 18, 1991, the City Council approved the reports for the City Open
Space and Maintenance Districts prepared by the City Engineer or under his
direction and set July 9, 1991, as the date for the public hearin9. The
reports cover the following districts:
1. Open Space District Nos. I-II, It, IS, 17 and 18
2. Rancho Del Rey Open Space Distri( t No. 20
3. EastLake Maintenance District No. 1
4. Bay Boulevard and Town Centre 1 Landscaping Districts.
The proposed individual as~ssments for Fiscal Year 1991-92 as they compare to
last year are shown below:
Table 1
FY91-92
AssessmenillD.ll
~
1
2
3
4
5
6
7'
8.
9
10
11
. 14 .,
15
17
18 -
20
EastLake Maint. Dist.
Bay Blvd.
Town Centre
$ 54.87
35.90
357.66
213.80
260.74
136.44
98.36 (2)
456.02
96.72
131.48
86.18
369.38
229.20
154.58 (3)(4)(5)
321.44 (3)-
140.58 (2)
&;n- ?? l
1189.00 (1)(2)
41.98 (1)(3)
FY 90-91
Assessment/EDll
,; Increase
or Decrease
$ 47.52
30.58
383.40
270.74
344.02
121.56
106.20
450.92
81.82
62.22
40.12
361.88
209.56
o
187.38
296.41
6.33
1,339.20
43.40
+15%
+17%
-7%
-21%
-24%
+12%
-7%
+1%
+18%
+111%
+115% .
+2%
+9%
New
+72%,
-53%
-+3e%.I? 7v
-11%
-3%
(1) Per benefit unit
(2) As proposed, reserve exceeds 50%
(3) Assessments lowered per revised budgets approved 6-18-91
(4) Assessment lowered due to reserve adjustment
(5) Noticed by mail that proposed assessment is $189.14
These assessments are based on the budget approved by Council on June 18,
1991. Open Space District No. 18 and Town Centre assessments have been
adjusted ,downward to reflect the approved budget. District 18's proposed
assessment is $321.44/EDU compared to $380.44/EDU proposed at the last
meeting. This is due to a revision in the utility cost outlined in the
~<it
,
~
Page 3, Item
Meeting Date 7/9/91
budget. Town Centre's proposed assessment is i41.98/benefit unit compareJ to
$5I.98/benefit unit proposed at the last meeting. This is due to a revision
in the estimated fund balance caused by an anticipated $10,000 cost savin3 on
steam cleaning of sidewalks. See attached Exhibits A and B for
IIOdifications. Also, for a discussion of the changes in the proposed annual
assessments compared to Fiscal Year 1990/91's assessments, see tl)e attached
Council Report on June 18, 1991.
Additionally, District 17's assessment is propo;ed to be lowered from $18~.14
as indicated at the June 18, 1991 meeting to $126.10. Staff inadvertE.ltly
proposed a 50 percent re.serve for the first year of maintenance and now
recOl11lll!nds adjusting that to zero percent. Assessing the property owners at
the annual cost only is appropriate because staff does not have a definite
date for the turnover of this district to the City. If a turnover occurs in
August or September, the savings accrued for those months will provlde about a
10 percent reserve (see Exhibit C for modifications).
At 'the June 18, 1991, Council meeting, Council directed staff to notify by
mail property owners within Open Space Oistricts 4 and 18 and all property
owners within Open Space Districts where the proposed annual assessment is
increasing by 50% or $50 as compared to Fiscal Year 1990/91's assessment, of
the public hearing. Staff notified the property owners of Districts 4,10, 11,
17 and 18 of the public hearing. All but District 4's assessments are
proposed to increase.
At the June 8, 1991 property owner meeting Mrs. Martel of Open Space District
5 inquired about alternatives to the existing open space maintenance program.
She subsequently presented a proposal to the City whereby Open Space Districts
5 and 9 be combined. Staff, through the Parks and Recreation Department, has
received a referral on this but action cannot be accomplished prior to levying
the assessments for Fiscal Year 1991-92. Staff anticipates returning to
Council with a report analyzing the possibility of combining districts. If
action . is recommended at that time, staff would proceed with the
recommendation and it is anticipated that any action would be completed prior
to approving the open space budgets and assessments for Fiscal Year 1992-93.
In conjunction with tonight's action on the levy of assessments, staff
recommends that the City Municipal Code, Sections 17.07.010, 17.07.030, and
17.07.040, be amended to allow the City to maintain a contingency reserve of
up to an additional 50 percent of the proposed fiscal year's budget. The
current 50 percent reserve is for the purpose of cash flow to cover the first
six month's expenses before receipt of tax income. The additional reserve
amount capability is to: 1) allow the accumulation of funds for special,
aperiodic maintenance items that happen less frequently than annually; 2)
allow more uniform assessments in new districts where both open space to be
maintained and new homes come on over several years which would otherwise
cause the assessments to vary greatly until the entire district is built out;
and 3) to stabilize assessments from year to year due to variations in actual
expenditures and revenue received. It is not staff's intention to accumulate
larger reserves in this later case, but only to minimize additional amounts as
I 2. -9 "
-
""'"C"_"~ .P
~"'-'::'"'!--'-""
-
Page 4. Item
Meeting Date 7/9/91
necessary to smooth out peaks and valleys in the budgeting and assessment
process. Without this ordinance we cannot accumulate additional funds beyond
the fiscal year's proposed budget and cash flow reserve. If we cannot plan
for and accumulate a reserve for anticipated aperiodic maintenance items, such
as cleaning storm drain desl1ting basins, the fiscal year in which that
maintenance needs to be done would have a significantly higher assessment than
other years. The reasons for such urgency are that the annual levy of
assessments for open space districts must be imposed by AUlust 10 and there is
insufficient time for an ordinance enacted in the n"rmal course to be
effective by that date.
Our current Code allows the City to maintain a reserve of 50% of the next
year's operating budget to.provide necessary cash flow for operations for the
first six months of each. fiscal year. The proposed modification is in
addition to this 50% reserve. Attached to this Co~ncil report is the proposed
ordinance for your reference (see Exhibit D).
The proposed ordinance change is not required to Le publicly noticed. Staff
did address the issue in the June 18 report in order to have the item
considered by Councl1 and allow notice to the public through the posting of
the agenda and televising of the meeting. Two property owners inquired about
it. One property owner only supported an additional 10% contingency reserve,
not 50% and another opposed the proposal altogether.
FISCAL IMPACT: None to the City.
DDS:fP/OS-001
WPC 5677E
1'2..-10
EXHIBIT A
PART B--ESTIMATE OF COST AND NET ASSESSMENT
OPEN SPACE DISTRICT NO. 18 (MODIFIED)
roNTRACTUAL SERVICES
CITY STAFF SERVICES
UTILITIES
IlINDSCAPE SUPPLIES
MATERIALS TO MAINTAIN BLDGS. STRUCTURE, GRDS
$ 75730
13380
30990
990
1980
ESTIMATED MAINTENANCE roST
$ 123070
RESERVE REQUIREMENT (30%)
LESS BAIlINCE AVAILABLE FROM
PREVIOUS FISCAL YEAR
36921
354i7
NET ASSESSMENT
$ 124574
11.- \ I
.
PART C: ASSESSMENT ROLL (MODIFIED)
OPEN SPACE DISTRICT NO. 18
1991/92 ASSESSMENT PER UNIT =
640-070-39
640-070-40
640-251-01 to 53
640-252-01 to 40
640-252-44 to 59
640-260-01 to 29
640-260-31 to 71
640-260-74
640-271-01 to 56
640-272-01 to 49
.
321. 44
100.00
2.55
53.00
40.00
16.00
29.00
41.00
1.00
56.00
49.00
387.55
1"2..-1"2-
32,144.00
B19.68
17,036.32
12,657.60
5,143.04
9,321. 76
13,179.04
321.44
16,000.64
15,750'.56
124,574.08
.'--'---- .- --... .-..- - --. .-
City of Chula Vista
Council Meeting
August 6, 1991
~.
Council Members,
As council may recall, voting on our open space district budget for fiscal year 91-92 was postponed until a
thorough investigation conducted by staff and local residents could be conducted. I am here to present our
views regarding the meeting. I would like to formally submit into record that the local residents were very
pleased with the work conducted by your staff.
Mr. Defacci called me the next day regarding the council meeting. I spent over an hour with him discussing
various matters regarding landscape, budgets, etc. He then took the main items of concern and scheduled a
meeting for all involved parties. We determined a meeting date and he promised to have all documentation for
our review.
The meeting was handled in a very professional manner. Jess Valenzuela, Joel Chew, Donna Snider, and David
Defacci attended 0 on behalf of the city. All were well prepared on the agenda items and made their
presentations in a clear manner. The staff was able to answer all questions. A few items came up that was out
of their jurisdiction, and they offered to forward the information on to the appropriate departments. We were
very pleased with their effort and research. They appeared to take a genuine interest in solving the problems.
The evening meeting turned out to be rather lengthy, yet the staff never tried to hurry it along or appear to
grow impatient.
In summary, I would like to state that we are pleased with the results of the investigation and the new budget. I
would also like to commend your staff members Jess Valenzuela, Joel Chew, Donna Snider, and David Defacci
for their professionalism and courtesy regarding this matter. Having been involved in many similar ventures on
both a city and county level, I can say that your staff members have been one of best prepared and courteous
groups I have had the pleasure to work with. Knowing that a large portion of what council hears is
complaints, I would like council to know and have it formally recorded that these people did an excellent job.
Sincerely,
'%kOCLW~-b()
Teresa Walker
Sunbow Resident
COUNCil AGENDA STATEMENT
Item I~o.....b
ITEM TITLE:
Meeting Date 8-6-91
A. Resolution '~'1.~ Renewal of landscape maintenance
contract for Open Space Maintenance Districts #1-10, 14, 15,
18, 20 and Eastlake Maintenance District
B. Resolution \\o2.~5 Renewal of landscape maintenance
contract for Open Space Maintena~c~jDistrict #11.
Director of Parks and Recreation~
City Manager~\:>'~~ (4/5ths Vote: Yes_No__!.J
SUBMITTED BY:
REVIEWED BY:
On May 6,1986, Council accepted the Department's report regarding renewal
options for Open Space contractors. The Department will exercise its option
to renew the landscape maintenance contracts in Open Space Maintenance
Districts 1-11, 14 Units 1-7, 15, 18, 20 and Eastlake Maintenance District.
RECOMMENDATION: That Council adopt resolution and renew the maintenance
contracts in Open Space Maintenance Districts 1-11, 14 Units 1-7, 15, 18, 20
and Eastlake Maintenance District.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Council accepted the Department report on May 6, 1986, to incl ude renewal
options for three additional years if work performance is satisfactory. Staff
felt contractors woul d be more respons i ve with the poss i bil ity of havi ng a
maintenance area for four years versus the one-year contracts with no renewal
clause.
The option clause includes three one-year renewal options and provides a
percentage increase based on changes that are determi ned by San Di ego area
Consumer Pri ce Index for urban wage earners and cl eri ca 1 workers. The CPI
increase from January 1990 to January 1991 was 6.0%.
The renewal option contracts for FY 1991-92 is recommended for Districts 1-11,
14 Units 1-7, 15, 18, 20 and Eastlake Maintenance District.
90-91 CPI Increase
Contractor Dist. Contract (+6.0%1 Contract
R. C. Landscape 1 22,260 1,340 23,600
3 23,500 1,410 24,910
4 22,810 1,370 24,180
5 16,480 990 17,470
7 3,640 220 3,860
8 26,400 1,580 27,980
9 15,420 930 16,350
10 24,000 1,440 25,440
18 60,000 3,600 63,600
'~-I
Foster's Landscape
Page 2, Item
Meeting Date 8-6-91
90-91 CPI Increase
Dist. Contract 1+6.0%\ Contract
2 4,600 280 4,880
6 10,800 650 11,450
11 66,930 4,010 70,940
14 162,680 9,760 172,440
15 5,810 350 6,160
20 131,280 7,880 139,160
EMD 33,220 1,990 35,210
Contractor
Blue Skies Landscape
Environmental Care Inc.
FISCAL IMPACT: Total cost for maintaining these districts is borne by the
respective homeowners in each district.
WPC 1684R
, ~-""2...
RESOLUTION NO. 11D'l.~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA RENEWING LANDSCAPE MAINTENANCE
CONTRACT FOR OPEN SPACE MAINTENANCE DISTRICTS
1-10, 14 UNITS 1-7, 15, 18, 20 AND EASTLAKE
MAINTENANCE DISTRICT
The City Council of the City of Chu1a vista does hereby
resolve as follows:
WHEREAS, On May 6, 1986, Council
Department's report regarding renewal options
contractors if performance is satisfactory; and
accepted
for Open
the
Space
WHEREAS, the option clause includes three one-year
renewal options and provides a percentage increase based on
changes that are determined by San Diego Area Consumer Price
Index for urban wage earners and clerical workers; and
WHEREAS, the CPI increase from January 1990 to January
1991 was 6.0%; and
WHEREAS, for fiscal year 1991-92, the following
contracts for Districts 1-10, 14 units 1-7, 15, 18, 20 and
EastLake Maintenance District are hereby recommended for renewal:
Environmental Care Inc.
91-92
District Contract
1 23,600
3 24,910
4 24,180
5 17,470
7 3,860
8 27,980
9 16,350
10 25,440
18 63,600
2 4,880
6 11,450
14 172,440
15 6,160
20 139,160
EMD 35,210
Contractor
R. C. Landscape
Blue Skies Landscape
Foster's Landscape
-1-
I~~-\
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula vista does hereby renew contracts with R. C.
Landscape for Open Space Maintenance District Nos. 1, 3, 4, 5, 7,
8, 9, 10 and 18; and wi th Blues Sk ies Landscape for Open Space
Maintenance District Nos. 2, 6, 14 and 15; and with Foster's
Landscape for Open Space District District No. 20; and with
Environmental Care Inc. for EastLake Maintenance for Fiscal Year
1991-92 .
Presented by
Jess Valenzuela, Director of
Parks and Recreation
9121a
-2-
I ~ 0-. 2.
RESOLUTION NO. \ ~ '1 ~ 5
RESOLUTION OF THE CITY
CHULA VISTA RENEWING
CONTRACT FOR OPEN SPACE
COUNCIL OF THE CITY OF
LANDSCAPE MAINTENANCE
MAINTENANCE DISTRICT 11
The City Council of the City of Chula vista does hereby
resolve as follows:
WHEREAS, On May 6, 1986, Co unci 1
Department's report regarding renewal options
contractors if performance is satisfactory; and
accepted
for Open
the
Space
WHEREAS, the option clause includes three one-year
renewal options and provides a percentage increase based on
changes that are determined by San Diego Area Consumer Price
Index for urban wage earners and clerical workers; and
WHEREAS, the CPI increase from January 1990 to January
1991 was 6.0%; and
WHEREAS, for fiscal year 1991-92, the following contract
for District 11 is hereby recommended for renewal:
Contractor
91-92
District
Contract
Blue Skies Landscape
11
70,940
NOW, THEREFORE, BE IT RESOLVED that the City
the City of Chula Vista does hereby renew the contract
Skies Landscape for Open Space Maintenance District
Fiscal Year 1991-92.
Council of
with Blues
No 11 for
Jess Valenzuela, Director of
Parks and Recreation
914la
Approved as
4..
Attorney
Presented by
1~6
COUNCIL AGENDA STATEMENT
Item\"-\
ITEM TITLE:
Meeting Date AUQUst 6. 1991
Resolution II." ~<. Approving second amendment to
the citywide street Sweeping Agreement extending
.om. for on. 'ddltlon~~.y~
Director of Public wor~:~~_
City Manager~ \1I,t~ (4/5ths Vote: Yes_No...1L)
U ../"'"
SUBMITTED BY:
REVIEWED BY:
On September 15, 1987, the City Council approved a contract with
Laidlaw Waste Systems, Inc. to provide citywide street sweeping.
The agreement provided for three years of street sweeping with the
contract price to be adjusted each year by the San Diego Area CPI.
In addition, the agreement permitted two additional one-year
extensions upon satisfactory negotiation of a contract price. On
September II, 1990, Council approved the first amendment to the
agreement which extended the contract through August 31, 1991.
Staff and Laidlaw have negotiated a price to provide citywide
street sw(~eping services through August 31, 1992 for the second and
final year extension as included in the contract.
RECOMMENDATION: That City Council adopt the resolution approving
the second amendment to the citywide Street Sweeping Agreement
which would extend that agreement through August 31, 1992.
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable.
DISCUSSION: The city entered into a three-year agreement with
Laidlaw Waste Systems, Inc. for citywide street sweeping services
on September 15, 1987. The agreement ran from September I, 1987
through AQgust 31, 1990. The agreement allowed for changes in the
compensation for contract years two and three based on the July to
July CPI increase for the San Diego region. In addition, the
contract .3.llowed for adjustments in landfill fees and the addition
of new subdivision streets. Further, section I of the agreement
permitted the contract to be extended on a year-to-year basis for
a period not to exceed two additional years by written mutual
agreement. This section of the contract permits us to negotiate
with Laidlaw in lieu of going to bid.
The City council on September II, 1990 approved the fourth year of
the agreement which runs through August 31, 1991 at $13.85 per mile
with the rate for parking lots remaining the same ($.90/100 sq.
feet). The amendment to the contract further provided that Laidlaw
submit their price for the fifth year by June I, 1991. This would
permit us to examine the price and go to bid if necessary. Laidlaw
has submitted a price of $14.02 per curb mile and $.91 per 100 sq.
, '4-l
Page 2, Item I '-{
Meeting Date Auaust 6.1991
ft. for parking lots. Basically, this is a 1.2% increase which
represents the 27.7% County landfill increase. In other words,
Laidlaw is not increasing by CPI as they could have done in the
first thr<ee years and is not making any allowances for the increase
in fuel costs that the City, Laidlaw, and private industry has
experienced since July 1990.
Last year before submitting the first amendment for the contract to
city Council, staff contacted other cities in the area that
contract for street sweeping and contacted the two other providers
in the region that provide street sweeping services to obtain
estimates on what their bid might be if the city went to bid. At
that time, staff determined that the $13.85 per curb mile rate that
Laidlaw charged for the period september 1, 1990 through August 31,
1991 was a very fair rate to the city. The 1.2% increase is
considered reasonable in light of the following:
The landfill costs will increase this fiscal year by 27.7%.
This was reflected in the city's budget for Public Works
Operations.
Fuel prices (diesel) for the city during this past fiscal
year have ranged from a high of 110% over this time last
year to 21% with the latest fuel drop in July.
The brushes that the sweepers use are made of plastic which
are petroleum based. The cost on these brushes have
increased sharply due to increase in petroleum products.
When the original contract was bid in 1987, the city
also responded as a bidder. The city's bid was $15.36 per
curb mile as compared to Laidlaw's 1987 cost of $10.20 per
curb mile. It would undoubtedly be higher at this time.
The $14.02 per curb mile being charged by Laidlaw is lower
than the informal estimates provided last year at this time
to city staff by the two service providers in this area.
When staff prepared the budget for FY 1991-92 a 6% increase was
estimated. Since the 1.2% is lower than that, no additional funds
will be required. Additionally, in prior years a 5% estimated
increase in curb miles due to new streets added to the city had
been used. This year a 2.2% increase which reflects historical
increases over the last five years was used.
As this is the final year that the contract can be amended, next
year staff will issue a request for bid for this item and will
examine what the cost might be for the city to provide this
service.
MODIFIED STREET SWEEPING SCHEDULE DURING WINTER MONTHS
During this past year Laidlaw had agreed to increase sweeping in
residential areas from once every two weeks to once every week
14-2
Page 3, Item
14
Meeting Date AUQUst 6. 1991
during a one-month period prior to the rainy season. The
residential street sweeping schedule was then reduced during a dry
period of the year. This was done in an effort to remove
pollutants prior to the major rainy season so that they would not
wash into the storm drains and, hence, into San Diego Bay.
Unfortunately, this year while the increased street sweeping was
done in November which is usually prior to the rainy season, major
rains came in March when they would not normally be expected and,
therefore, staff doesn't really know how much good it did.
However, we will continue to attempt to do that this year. In
addition, staff has made contact with the Regional Water Quality
Control Board in an effort to try to determine if there have been
any scientific studies on the effectiveness of street sweeping and
which pollutants are removed by street sweeping. It is expected
that thifl will be one of the areas studied during the NPDES
(National Pollutant Discharge Elimination System) permit processing
study that is also underway.
FISCAL IMPACT:
Contract cost is $328,500. These funds are included in the fiscal
year 1991-92 operating budget.
DB:mp
( CASTSW)
I~-~ f'l- 'I-
TEL:
(17/2s/';n 1411!o
z: (;.1'J b'J 1 ("'tlt>
Ju.t 26,91 11:02 111J.002 F.02
I".HIJI..H .. 4 ~ , ~ rIll' 0,.' r . 1:' I.
THB CITY OF CHULA Ji7STA PARTY DISCLOSURE STATEMENT
Statement of disclosure of certain ownership interests, payments, or campaign contributions, on all matters
which will require discretionary action on the part of the City CouncJl, Planning Commission,llnd all olller
official bodies. The following information must be disclosed:
1. Ust the names of all persons having' a fhiancial interest in the contract, I.e" contractor,
Subcontractor. material supplier,
Laidlaw Waste Systems
San Die20 SweeD~n2
2, If any person identified pursuant to (1) above is a corporation or partnership, list tile names of all
individuals owning more than 10% of the shares in the corporation or owning any partnership
interest in the partnership,
San Diego Sweeping
Steve Reid
3, If Any person identified pursuAnt to (1) above "js non-profit organization or II trust, list the names
of any person serving as director of the non-profit organiUltion or as trustee or beneficiary or
trustor of the trust.
T
4, Have you had more than $250 worth of business transacted with any member of the City staff,
Bonrds, Commissions, Committees nnd Council within the past twelve months? Yes_
No.....x. If yes. plense indicate person(s):
S. Have you and/or your officers or IIgents, in the aggregate, contributed more than $1,000 to n
Coullcilmember in the current or preceding eJection perlod? Yes _ No.2!. If yes, state which
Coul1cllmember(s ):
~ is defined as: 'An)' individUIlI, /lilli, COopllrtllC/'ship, joinll'~nture, associlltion, socilll el/lb, [rmer/lIl! orglll.illltion, corpomtion,
estme, trust, receivcr, S)'lldicmc, I!liS Il/ld Iln)' Oilier CO/lnl)\ eilY Il/ld COlllll')', cilJ\ mll/liClI'lllil)'. dlslricl or ollicr poliliclll s/lbdMsion,
or 1111.1' OIlier group or comblnllliollllcling liS n unit,"
(NOTE: AII$ch .ddlllonal palles us ncccssftl)')
()1'/iP~
Signature of contractor/llpplicant
LAIDLAW WASTE SYSTEMS/DONALD BLIND
Print or lype nllme of contrllctor/Ilpplicnnt
Il..{-'-I
Dille: July 26. 1991
[A.1l3\A:DISCLOSE,TXTJ
RESOLUT ION NO. 11.0 2.. ~ to
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING SECOND AMENDMENT TO THE
CITYWIDE STREET SWEEPING AGREEMENT EXTENDING
SAME FOR ONE ADDITIONAL YEAR, AND AUTHORIZING
MAYOR TO EXECUTE SAID AGREEMENT
The City Council of the City of Chula Vista does hereby
resolve as follows:
approved
citywide
WHEREAS, on September
a contract with Laidlaw
street sweeping; and
15, 1987, the
Waste Systems,
City Council
Inc. to provide
WHEREAS, the agreement
street sweeping with the contract
by the San Diego Area CPI; and
provided for three years of
price to be adjusted each year
WHEREAS,
additional one-year
contract price; and
in addition, the agreement permitted two
extensions upon satisfactory negotiation of a
WHEREAS, on September 11,
First Amendment to the Agreement
through August 31, 1991; and
1990,
which
Council
extended
approved the
the contract
WHEREAS,
provide citywide
for the second
contract.
staff and Laidlaw have negotiated a price to
street sweeping services through August 31, 1992
and final year extension as included in the
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula vista does hereby approve the Second Amendment
to the Citywide Street Sweeping Agreement extending same for one
additional year, a copy of which is on file in the office of the
City Clerk.
BE IT FURTHER RESOLVED that the Mayor of the Ci ty of
Chula Vista is hereby authorized and directed to execute said
agreement for and on behalf of the City of Chula Vista.
Presented by
J
Bruce M. Booga d C1ty Attorney
orm by
John P. Lippitt, Director of
Public Works
9l25a
14-5
SECOND AMENDMENT TO AGREEMENT
WITH
LAIDLAW WASTE SYSTEMS, INC.
FOR
CITY-WIDE STREET SWEEPING
This Agreement, dated this , 1991 for the purposes
of reference only, and effective as of the date last executed by
the parties ("Effective Date"), by and between the City of Chula
Vista, California, a chartered municipal corporation of the State
of California, and Laidlaw Waste SY$tems, Inc., a California
corporation, hereinafter referred to as Contractor, is made with
reference to the following facts:
Whereas, City and Contractor entered into an agreement dated
September 15, 1987, and entitled Agreement for the purposes of
Street Sweeping ("Original Agreement"); and,
Whereas, pursuant to Section 1 of the Original Agreement, the
term may be extended on a year-to-year basis for a period not to
exceed two additional years by written mutual agreement without
rebidding for the service; and
Whereas, the parties hereto desire to modify the terms of
original Agreement in the following respects only, and in no other
regard.
Now, therefore, the parties hereto do hereby agree as follows:
1. Section 1, "Term of Agreement" of the Original Agreement
is hereby modified to extend the term to August 31, 1992.
2. section 2, "Compensation" of the Original Agreement is
hereby modified as set forth in Exhibit A attached hereto and
incorporated herein by reference.
3. All other terms and conditions of the Original Agreement
shall remain in full force and effect.
(End of Page. Next Page is Signature Page.)
\y-(a
Signature Page to
Second Amendment to Agreement
with
Laidlaw Waste Systems, Inc.
for
City-wide Street Sweeping
In witness whereof, the parties. hereto have executed this
Agreement in duplicate at Chula Vista, California, as of the date
and year adjacent to their signature, thereby indicated their full
and voluntary consent to the terms of this Agreement.
Dated:
CITY OF CHULA VISTA
By:
Tim Nader, Mayor
Attest:
Beverly Authelet, City Clerk
Approved as to form by
Bruce M. Boogaard, city Attorney
Approved as to content:
David C. Byers, Deputy Director
of Public Works/Operations
Dated:
Laidlaw Waste Systems, Inc.
By:
Ag\Laidlaw2
IY-'\
.L
I
o<!
EXHIBIT A PREPARED: 29-Jul-91
LAIDLAW STREET SWEEPING CONTRACT BUDGET FOR 1991-92
. USING NEW CONTRACT COSTS
CURB CURB PASSES FREQ COSTI CONTRACT
FOOTAGE MILES IYEAR MILE COST
** SWEEP CLASS Al 1,141,744 216.24 2.00 26.00 $14.02 $157,604
** SWEEP CLASS A2 33,624 . 6.37 1.00 26.00 $14.02 $2,321
** SWEEP CLASS A3 44,488 8.43 2.00 26.00 $14.02 $6,141
** SWEEP CLASS BI 133,134 25.21 2.00 52.00 $14.02 $36,755
** SWEEP CLASS B3 17,599 3.33 2.00 52.00 $14.02 $4,859
** SWEEP CLASS CI 21,758 4.12 2.00 104.00 $14.02 $12,014
** SWEEP CLASS D1 96,696 18.31 2.00 156.00 $14.02 $80,086
** SWEEP CLASS EI 74,074 14.03 1.00 12.00 $14.02 $2,360
** SWEEP CLASS FI 117,642 22.28 1.00 12.00 $14.02 $3,747
** SWEEP CLASS HI 70,433 13.34 2.00 12.00 $14.02 $4,487
** SWEEP CLASS H2 33,624 6.37 1.00 12.00 $14.02 $1,071
*** Subtotal *** 1,784,815 338.03
SQUARE SQ FEET PASSES FREQ COSTI CONTRACT
FOOTAGE IN lOOths IYEAR UNIT COST
PARKS PARKING LOTS 237,232 2,372 1 52 0.091 $11,236
CMC CNTR PARKING 138,240 1,382 1 12 0.091 $1,511
OrnER LOTS 386,087 3,861 1 12 '."=
*** Subtotal *** 761,559
*** Total ***
I
THE FOLLOWING ASSUMPTIONS WERE USED. 1. STREET MILEAGE WILL INCREASE 2.2'
I 2. CONTRACT INCREASE WILL BE 1. n
COUNCIL AGENDA STATEMENT
Item 15
Meeting Date 8/6/91
ITEM TITLE:
Reso 1 ut ion 1(,.'l.)Ji Accepting
construction of H Street bus
Shopping Center in the City; and
Director of Public WOrkS~
City ManagerJ:\ ~~
contract work for the
turnout at the Chula Vista
appropriating funds thereof
SUBMITTED BY:
REVIEWED BY:
(4/5ths Vote: Yes~No___)
On July 26, 1990, the City Council, by Resolution No. 15757 awarded a contract
in the amount of $69,967.03 (including contingencies) to Addax Construction
Co. The contract was for the construction of a bus turnout on H Street at the
Chula Vista Shopping Center. The work is now completed.
The total cost of the project, however, exceeded the budgeted funds by
$14,823.58. It is necessary, therefore, that this amount be appropriated from
the unappropriated SCOOT Capital Projects Fund.
RECOMMENDATION: That Council approve the resol ut i on accepting the contract
work and appropriating $14,823.58 from the unappropriated SCOOT Capital
Projects Fund.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Addax Construction Co. compl eted the construct i on of the bus turnout on H
Street (at the Chula Vista Shopping Center) on July 9, 1991. A final
inspection was performed on July 22, 1991, and all work found to be completed
in accordance with the plans and specifications and to the satisfaction of the
City Engineer.
The final cost for the project amounted to $91,402.30. Of this amount
$70,340.75 was for construction related expenditures and $21,061.55 for staff
charges. It should be noted that the $70,340.75 reflects $1,300 in liquidated
damages assessed to the Contractor because they did not complete the work
within the time period allowed by the contract. The 1 iquidated damages are
assessed at $100 per calendar day beyond the contracts authorized completion
date.
The budgeted funds for the project amounted to $76,578.72 based on a
preliminary estimate when the CIP was prepared. The final engineer's estimate
was over that amount, but still within the total amount budgeted. Since the
bid was below the engineer's estimate amount and sufficient funds were
available to cover the contract costs, the contract was awarded. The total
amount of contract related expenditures is $70,340.75 including a minor change
order approved by the Director of Publ ic Works and credit for 1 iquidated
damages. Since the actual staff charges for inspection are unknown at time of
award, it is standard procedure to wait until the contract has been completed
and all costs are known to appropriate the funds to reimburse the General Fund
for staff time.
1$-1
Page 2, Item I~
Meeting Date 8/6/91
FINANCIAL STATEMENT:
I. Appropriated Funds
Total I
$69,967. 03
6.611.69
$76,578.72
A. Construction
B. Staff
II. Contract Amount as Awarded
Tota 1 II
$69,967.03
6.611.69
$76,578.72
A. Construction
$68,837 original contract plus contingencies
B. Staff
III. Actual Expenditures
A. Construction (Addax Construction)
less liquidated damages
Subtota 1
$71 ,640. 75
-1. 300.00
$70,340.75
21,061.55
B. Staff
Includes 2.558 full cost
recovery factor, inception to
May 30, 1991 (latest available report)
Total III
$91,402.30
IV. Deficit
A. Appropriated Funds
B. Actual Expenditures
Deficit
$76,578.72
91,402.30
$14,823.58
FISCAL IMPACT: In addit i on to the construct i on costs summari zed above, the
City will maintain the improvements.
RS:AO-084
WPC 5707E
\ 5- 2...
RESOLUTION NO. It.:t fI '}
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING CONTRACT WORK FOR THE
CONSTRUCTION OF H STREET BUS TURNOUT AT THE
CHULA VISTA SHOPPING CENTER IN THE CITY AND
APPROPRIATING FUNDS THEREFOR
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the Public Works Department of the City of
Chula Vista has heretofore been notified that the contract work
for the construction of H Street bus turnout at the Chula vista
Shopping Center in the City has been completed in accordance with
that certain contract agreement dated July 26, 1990, by and
between the City of Chula Vista and contractor, Addax
Construction Co.; and
WHEREAS, on the 22nd day of July, 1991, a final
inspection was made and all of the public improvements in the
project have been completed to the satisfaction of the Director
of Public Works and in accordance wi th the requirements of the
City; and
WHEREAS, the final cost for the project amounted to
$91,402.30 with $70,340.75 (reflecting $1,300 in liquidated
damages assessed to Contractor) for construction related
expenditures and $21,061.55 for staff charges; and
WHEREAS, the budgeted funds for the
$76,578.72 and we, therefore, exceeded the
$14,823.58 ($91,402.30 less $76,578.72); and
project amounted to
available funds by
WHEREAS, the additional funds are to
General Fund for City staff charges ($14,449.86)
cost ($373.72) overruns.
reimburse the
and construction
NOW, THEREFORE, BE IT RESOLVED by the Ci ty Counci 1 of
the City of Chula Vista that the contract work for the
construction of H Street Bus turnout at the Chula Vista Shopping
Center is hereby accepted by the Ci ty, based upon the
recommendations of the Director of Public Works.
BE IT FURTHER RESOLVED that $14,823
appropr iated from the unappropr iated SCOOT Capi tal
and transferred into Account No. 404-4040-RD130.
is hereby
Project Fund
BE IT FURTHER RESOLVED that the City Clerk be, and she
is hereby directed to forward a certified copy of this resolution
to the contractor, Addax Construction Co.
John P. Lippitt,
Public Wor ks
9127 a
Director of
":L AA ,
ruce M. Boogaar
Presented by
,s-~
Meeting Date 8/6/91
Public Hearing on the 1992 Transnet (Sales Tax) Transportation
Program Expenditure Plan for the next seven fiscal years
Resolution 1<' '2. ~~ Adopting the 1992 Seven-Year Transnet
Local Street and Road Program (Fiscal Years 1993 through 1999)
and approvi ng the submittal of Chula Vi sta' s Transnet 1992
Regional Transportation Improvement Program (RTIP) to the San
Diego Association of Governments (SANDAG)
Director of Public wor~~
City Manager.jCt O~ (4/5ths Vote: Yes_No....!.J
The 1992 San Di ego Regi ona 1 Transportat i on Improvement Program (RTIP) is a
seven-year program of proposed major highway, arterial, transit, bikeway, and
aviation projects. The annual development and approval of the RTIP by the San
Diego Association of Governments (SANDAG) is a requirement for the continued
recei pt of State and Federal transportat i on project fundi ng. The "Propos it ion
'A' Transnet Transportation Improvement Program - Ordinance and Expenditure
Plan" also requires that all proposed projects funded with Transnet funds be
included in the Regional Transportation Improvement Program (RTIP).
ITEM TITLE: a)
SUBMITTED BY:
REVIEWED BY:
COUNCIL AGENDA STATEMENT
Item Il..
b)
The Proposition 'A' "Transnet Transportation Improvement Program" was
enacted by the voters of San Diego County on November 3, 1987. Proposition
'A' is a 1/2 percent increase in the County-wi de sales tax 1 ast i ng 20 years
for specified transportation programs and projects. One third of the revenues
are speCified for allocation to the local agencies for street and road
purposes. The other two thirds will be equally shared by two additional
primary purposes: Highway and Public Transit improvements. Under that
program's regulations, the San Diego Association of Governments (SANDAG)
administers the program County-wide.
RECOMMENDATION: That Council conduct the public hearing and upon its
completion adopt a resolution approving submittal of the City's RTIP Program
and Transnet Expenditure Plan to SANDAG.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Propos it ion 'A' Ord i nance and Expenditure Pl an states that the revenue
generated by the sal es tax measure wi 11 be used solely for transportat i on
improvement projects in accordance with the following priorities:
1. To repair and rehabilitate existing roadways.
2. To reduce congestion and improve safety.
3. To provide for the construction of needed facilities.
In accordance with said priorities, the proposed RTIPITransnet Expenditure
Plan was prepared as shown on Exhibit 'A'. The proposed RTIP is consistent
with the City's CIP program and includes 8 projects utilizing Transnet funds
llo-I
Page 2, Item \ l.o
Meeting Date 8/6/91
in Fiscal Years 1992-93 through 1998-99. The projects and their corresponding
amounts are programmed as follows:
1. Broadway between 'I' and 'l' Streets
2. Broadway between Naples and southerly City limits
3. Main Street between Industrial and Hermosa
4. Main Street between Hermosa and Hilltop
5. Main Street between Hilltop and 1-805
6. 'l' Street between Mission and Nacion Avenues
7. Palomar Street between Industrial Blvd. and Broadway
8. Naples Street between Industrial Blvd. and Broadway
Total
$3,501,600
1,760,700
4,200,000
5,900,000
4,200,000
350,000
854,000
575.000
$21,341,300
The projects as listed in terms of priority involve widening and extensive
reconstruction including but not limited to: installation of asphalt concrete
pavement, curb, gutter, sidewalks, street lights, drainage facilities, etc.
FISCAL IMPACT: Transnet sales tax
$20,304,000 are estimated by SANDAG to be
for Fiscal Years 1992-93 through 1998-99.
revenues totalling approximately
allocated to the City of Chula Vista
SMN:KY-174
WPC 5709E
''-0 -"'2-
1992 RTIP/TRANSNET PROJECT INFORMATION FORM
EXHIBIT "A"
Agency:
Citv of Chilli! Vi"ta
PreparedBy: Si!mi!" M Nllhilily
Dale: 7-19-91
~ 691-5173
"
1
(}I
AGENCY ",'",' ,....... ",'i::tPROJECTDESCRlPTlONi..," , '. .,".: . . . . .,.. ESCALATED PROJECT COST ($000'5) ..... "
",;-.,.:,':",.",.-.,
PRIORrTY i.:,'....'... . ..t (locallon & Type 01 Wcwk) }i.. ."'::': :': MI. PHASE . TOTAL FEDERAL . STATE . mANSNET LOCAL. PRIVATE FY
1 Broadway, Between "I" and "LII E $ 531. 6 $ 531. 6 93
Streets.-Widening and 0.75 C 2,970.0 2,970.0 94
Reconstruction T 3,501. 6 3,501.6
Gas Tax
2 Broadway, between Naples and 1.42 E 230.5 230.5 94
Southerly Ci ty limits - Widening C 1,530.2 " 1,530;2 95
and Reconstruction T 1,760.7 230.5 1,530.2
3 Main Street, between Industrial 0.90 E 880.0 880.0 95
and Hermosa - Widening and R 100.0 100.0 96
Reconstruction C 3,220.0 3,220.0 96
T 4,200.0 4,200.0
4 Main Street, between Hermosa' and 1.12 E 1,232.0 1,232.0 96
Hilltop - Widening and R 100.0 100.0 97
Reconstruction C 4,568.0 4,568.0 97
. T 5,900.0 5,900.0
5 Main Street, between Hilltop and 0.85 E 875.0 875.0 97
1-805 - Widening and Reconstruction R 100.0 FAU 100.0 98
C 3,225.0 1,356.0 1,869.0 98
T . 4,200.0 2,844.0
6 ilL" Street, between Mission and 0.15 E 50.0 FAU 50.0 99
Nad on Avenues - Reconstruction C 300.0" 226.0 74.0 99
T 350.0 124.0
I
., ..
.
C (construction); T (Total)
. PHASES: E (Engineering & Planning); R (Rlght-Ol-Way); ~/f&!\/!,l\
'\,
EXHIBIT "A"
1992 RTlPrrRANSNET PROJECT INFORMATION FORM
Agency:
City of Chula Vista
Prepared By:
Samir M. Nuhaily
Dale: 7-19-91
Ph~ 691-5173
AGENCY . .,. ii'PROJECTOESCRIPTlON, .. . ESCALATED PROJECT COST ($000'8).' .'..." .
,,' ...,'. '......... MI. PHASE TOTAL FEDERAL . .' LOCAL . PRNATE FY
PRlORrTY .. .. ,. ,.". (location & Type 01 Work) .. STATE , TRANSNET
7 Palomar Street, between 0.25 E 100.0 100.0 99
Industrial Blvd. and Broadway - R 400.0 400.0 99
Widening and Reconstruction C 354.0 354.0 99
T 854.0 854.0
8 Naples Street, between 0.25 E 75.0 75.0 99
Indus tri a 1 Blvd. and Broadway - R 200.0 200.0 99
Widening and Reconstruction C 300.0 300.0 99
T 575.0 575.0
-
r
.
"'-
I
C (Construction) T (Total)
PHASES. E (Engin88fing & Planning); R (Righl-Ol-Way); ltll~llm
RESOLUTION NO. _I \0 '1. <il~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE 1991 SEVEN-YEAR
TRANSNET LOCAL STREET AND ROAD PROGRAM (FISCAL
YEARS 1993 THROUGH 1999) AND APPROVING THE
SUBMITTAL OF CHULA VISTA'S TRANSNET 1991
REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM
(RTIP) TO THE SAN DIEGO ASSOCIATION OF
GOVERNMENTS (SANDAG)
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the 1992 San
Improvement Program (RTIP) is a
major highway, arterial, transit,
and
Diego Regional Transportation
seven-year program of proposed
bikeway, and aviation projects;
WHEREAS, the annual development and approval of the RTIP
by the San Diego Association of Governments (SANDAG) is a
requirement for the continued receipt of State and Federal
transportation project funding; and
WHEREAS, the "Proposition 'A' Transnet Transportation
Improvement Program Ordinance and Expenditure Plan" also
requires that all proposed projects funded with Transnet funds be
included in the Regional Transportation Improvement Program
(RTIP); and
WHEREAS, the Transnet Ordinance states that the revenue
generated by the sales tax measure will be used solely for
transportation improvement projects in accordance with the
following priorities:
1. To repair and rehabilitate existing roadways.
2. To reduce congestion and improve safety.
3. To provide for the construction of needed facilities.
WHEREAS, the proposed RTIP is consistent with the City's
CIP program and includes 8 projects utilizing Transnet funds in
Fiscal Years 1992-93 through 1998-99 which projects and their
corresponding amounts are programmed as follows:
Broadway between 'I' and 'L' Streets
Broadway between Naples and southerly City limits
Main Street between Industrial and Hermosa
Main Street between Hermosa and Hilltop
Main Street between Hilltop and 1-805
'L' Street between Mission and Nacion Avenues
Palomar Street between Industrial Blvd. and Broadway
Naples Street between Industrial Blvd. and Broadway
$3,501,600
1,760,700
4,200,000
5,900,000
4,200,000
350,000
854,000
575,000
-1-
Il.o-5
NOW, THEREFORE, BE IT RESOLVED that the city Council of
the City of Chula Vista does hereby adopt the 1992 Seven-Year
Transnet Local Street and Road Program (Fiscal Years 1993 through
1991) and approving the submittal of Chula Vista's Transnet 1992
R~gional Transportation Improvement Program (RTIP) to the San
Diego Associaiton of Governments (SANDAG).
John P. Lippitt, Director of
9129a
Approved
{fc."
:n
Presented by
Attorney
-2-
I \c - (",
17. PUBLIC HEARING
CONSIDERATION OF A DEFERRAL FOR
UNDERGROUNDING UTILITY SERVICES TO A
PROPOSED RETAILED ESTABLISHMENT AT 1100
TIIIRTIETH STREET, NATIONAL CITY - staff
requested this item be continued to the August 20, 1991
meeting.
1/
COUNCIL AGENDA STATEMENT
ITEM
va
ITEM TITLE:
Meeting Date
Resolution I t. "2.~~ - Approving
Agreement with Schema Systems to
develop RFP and Provide Management
Support for Implementation of a CAD
System
Chief of~e (4/5ths Vote: Yes____No-XKl
City Manager..j~ ~()*
8/6/91
SUBMITTED:
REVIEWED BY:
In 1986, Council directed staff to implement a series of
recommendations to improve the city's Public Safety Communications
Systems. Several of these recommendations have been implemented
and staff is now seeking Council's approval to proceed with the
selection of a consultant to prepare an RFP for a CAD System.
RECOMMENDATION:
That Council approve
the Mayor to sign
Council
the agreement authorizing
on behalf of the City
BOARDS/COMMISSION RECOMMENDATION: Not Applicable
DISCUSSION:
In July of 1985, the Council selected Alta Consulting Services to
perform a comprehensive study of the existing Public Safety
communications Systems facilities; and operational practices, to
develop a Communications Master Plan addressing both current and
long-term needs; to prepare bid specifications for recommended
equipment and to assist the City staff in the implementation of
recommended changes.
At a Council Conference in May of 1986, Alta Consulting Services
made a presentation that consisted of their findings and
recommendations. Council directed staff to proceed with the
implementation of the following major projects:
1) Relocate and enlarge the Communications Center
2) Replace the existing dispatch consoles, logging recorder
and alarm displays in the old Communications Center
3) Replace existing base station radio equipment; modify
mobile radios; improve radio system coverage; add one
more police channel for tactical use
la-\
Page 2, Item lea
Meeting Date 8/6/91
4) Develop a data processing master plan for automating
Public Safety records
5) Install a Computer Aided Dispatch system (CAD)
6) Develop a plan for the installation of Mobile Digital
Terminal (MDT'S) in police vehicles
Recommendations 1. 2. 3 and 4 have been completed and the new
communications Center was operational effective October 30, 1990.
since January, 1987, staff has been utilizing an in-house Computer
Aided Dispatch (CAD) System for fire and police dispatching. This
system is a significant improvement over the previous manual system
but it does not compare with a modern, vendor provided CAD system.
Such a system would have, at least, the fol'lowing features not
included in our current CAD:
a) Automatic call routing to appropriate dispatcher
b) Automatic address verification
c) Automatic selection presentation for misspelled addresses
d) Automatic premise history alert indicating prior police
response information on calls to the same address and
other hazards associated with a given address
e) Dispatch priority and queue assignment based on incident
type
f) unit recommended for dispatch by computer based on
location of call and available units
g)
Dynamic beat
recommendations
levels
structures allowing change of unit
based on beat structure and activity
h) Automatic timers to alert dispatchers to excessive travel
time, on scene time, or contact times
i) Built in system redundancy
j) Automatic interface with the 911 automatic address and
phone number systems
k) Console to console message sending capability
's - '2..
Page 3, Item
18
Meeting Date 8/6/91
1) Automatic inquiry on traffic stop license plates
In summary, a vendor provided CAD System offers many benefits. The
most significant advantages over the current system are that calls
will be dispatched in a shorter time frame after they are received;
that there will be less human error because the new CAD eliminates
many manual operations present in the current system; officer
safety will be significantly improved.
A vendor provided CAD system will free up significant mainframe
computer resources which can be used by existing and future
applications.
Once a CAD system has been procured and installed, staff will be
returning to Council with a recommendation that we develop an RFP
to select a vendor to obtain a Mobil Digital Terminal/Computer
System for public safety vehicles.
In the original contract with Alta Consulting Services, that
company had sub-contracted with Schema Systems, Inc. to assist them
in certain portions of their contract. One key task that Schema
performed was the development of an RFP for the new CAD System.
Schema developed this RFP and presented it to staff in August of
1988. The original time table called for going out to bid for the
CAD early in 1989 but this did not occur because the discovery of
asbestos in the police facility had significantly delayed the
remodeling of the Police Facility and specifically the construction
of the new communications Center. As a result of these delays,
Alta Consulting Services attempted to renegotiate their contract
with us for additional funds and staff took this opportunity to
cancel the contract with Alta Consulting.
Now that we are ready to proceed with the CAD project, staff is
recommending that we contract with Schema Systems to complete the
CAD RFP. Schema will perform the five (5) tasks listed below:
TASK 1. Review and Revise specification.
The present specification, titled Request for Proposals, City of
Chula vista Computer Assisted Dispatch System, was written by
Schema systems in July of 1988 and was delivered to the City in
August, 1988. It has become "stale" due to the rapid technology
advances in this field and is no longer suitable for release to
industry as part of a Request for Proposals (RFP).
Schema systems will revise and update the document for issuance by
18-~
Page 4, Item
\<&
Meeting Date 8/6/91
the City, complete except for City-supplied Bid Form and legal
information. It will be delivered as a reproducible Master for
duplication and mailing by the City., A list of suggested bidders
will also be provided.
The city will be the contracting party, so Schema Systems will
provide technical guidance and recommendations to the city and will
rely on its functional organizations to prepare the "boilerplate"
for the city's RFP and the subsequent contract with the selected
bidder.
TASK 2. Assist at Bidders' Conference.
Experience has shown that it is very important to conduct a formal
Bidders' Conference during the response period in order to allow
prospective bidders an organized opportunity to see the facility
and to ask questions directly. Schema Systems will assist the city
in planning and staffing such a meeting, and in preparing a written
RFP addendum if appropriate.
TASK 3. Evaluate Bid Responses.
To assure a fair and equitable contractor selection process, Schema
Systems will develop a weighed criteria form to be used by the
evaluation team members in scoring a detailed analysis of each
bidder's response. The weighing criteria will be specific to the
interests of the City.
As a member of the Evaluation Board, Schema will also use the form
to make a written evaluation of individual proposals, and will
assist the other Board members in their analysis of unfamiliar
features. With concurrence of the city, the highest rated bidders
will be invited for oral interviews. In handling many systems
procurement, Schema has consistently found that the results of the
selection process are about equal portions of the formal proposal
scoring and the oral presentations. Systems are built by people,
not by companies, and it is important for the evaluators to
interact with the people who will actually perform and manage the
work that their company has proposed.
After a careful analysis of all factors, Schema Systems will
recommend a specific offeror's proposal to the city, along with any
recommendations for items to be negotiated during the contract
award process.
TASK 4. Support the Contract Neaotiations.
Schema systems will then participate in the negotiations between
the City and the selected bidder. Although Schema does not give
legal advice, we have had substantial experience in preparing
18.~
Page 5, Item
18
Meeting Date 8/6/91
technical contracts and will participate from this perspective.
TASK 5. proiect Manaqement Support.
Agencies dedicated to providing public safety services are
typically staffed by persons who are skilled in the agency's "line
of business," but not necessarily in the development of complex
technical systems. There are critical activities on any
developmental project that must be carefully monitored and
validated by experienced proj ect management personnel. These
include the contract schedule and progress reports, design
documents, implementation and cutover plans, component and system
testing, and the system installation and acceptance tests. Schema
Systems will support the City throughout the contract life, but
particularly during these critical activities. The implementation
period is expected to be approximately 10 months.
PRICES AND PAYMENT SCHEDULE
TASKS PRICE
1) Review & Revise Specifications $4,425
2) Assist at Bidders' Conference 2,250
3) Evaluate Bid Responses 6,675
4) Support Contract Negotiations 5.275
$18,625
5) Project Management Support 31,000
$49,625
PAYMENT
Task completed
Task Completed
Task Completed
Task Completed
Sub Total
Ten Monthly
Payments of
$3,100 starting
at award of
Implementation
Contract
TOTAL
Schema Systems, Inc. is willing to negotiate a time and material
form of contract for Task #5 and this may be a preferred process.
Tasks 1 through 4 were included in the original contract with Alta
Consulting Services. Funds were encumbered in Purchase Order No.
187958, which currently has a balance of $22,604. The remaining
funds are available in CIP Project No. PSl15 which totals $400,000
of which $50,000 had been estimated for consulting services. These
funds will be more than adequate to cover the total amount
,8-5
Page 6, Item
l!P
Meeting Date 8/6/91
requested by Schema Systems ($49,625).
Staff believes there is adequate justification to enter into this
contract with Schema Systems as a sole source as opposed to an open
bidding process. This justification is based on the fact that
Schema has been invol ved in the proj ect from the beginning,
performed a significant portion of the basic communications systems
study and developed the CAD RFP that now has to be revised. Schema
systems has a proven track record of performance in all of the
disciplines necessary to fulfill public safety and local government
automation, radio communications, and project management
requirements. Schema Systems has developed CAD RFP's and
implemented these automated systems for the following
jurisdictions: Counties of Los Angeles, San Diego, Snohomish
(Washington), Clackamas (Oregon); cities of Anaheim, Downey, Los
Angeles, Kent, Washington and Honolulu.
Staff is recommending this agreement with Schema based on their
significant experience in the field, their previous understanding
of our project and the quality of their past work for the City of
Chula vista. Finally, staff believes that Schema's requested fee
for this project is reasonable and within the limits of the funds
that have been projected and budgeted for this project.
FISCAL IMPACT:
Funds are encumbered in Purchase Order No. 187958 and CIP Project
No. PS1l5.
SCHEMAAl13
Ie-\'"
RESOLUTION NO. ,(., '2. 'il9
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT WITH SCHEMA
SYSTEMS TO DEVELOP A REQUEST FOR PROPOSAL AND
PROVIDE MANAGEMENT SUPPORT FOR IMPLEMENTATION
OF A COMPUTER AIDED DISPATCH SYSTEM, AND
AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
The City Council of the City of Chula vista does hereby
resolve as follows:
WHEREAS, in 1986,
series of recommendations
Communications Systems; and
Council directed staff to implement a
to improve the City's Public Safety
WHEREAS, several
implemented and staff is
proceed with the selection
for Proposal for a Computer
of these recommendations have been
now seeking Council's approval to
of a consultant to prepare a Request
Aided Dispatch system; and
WHEREAS, staff is recommending the City enter into an
agreement with Schema systems based on their significant
experience in the field, their previous understanding of the
project, the quality of their past work for the City and the fact
that their requested fee is reasonable and within the limits of
the funds that have been projected and budgeted for this project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula vista does hereby find that competitive bidding
would be impractical and waives the bidding procedure in
accordance with Section 2.56.070 of the Chula Vista Municipal
Code.
approve
Provide
copy of
BE IT FURTHER RESOLVED that the City Council does hereby
an agreement with Schema Systems to Develop RFP and
Management Support for Implementation of a CAD System, a
which is on file in the office of the City Clerk.
BE IT FURTHER
authorized and directed
behalf of the City.
RESOLVED that
to execute said
the Mayor
agreement
is
for
hereby
and on
Director
"}
Presented by
William J. Winters,
of Public Works
9073a
l~-'i
ITEM TITLE: a)
SUBMITTED BY:
REVIEWED BY:
COUNCIL AGENDA STATEMENT
Item \<1 0..., b,<L.
Meeting Date 8-6-91
1<.. 2.C\ 0 Authorizing issuance of bonds,
bond indenture and offi ci a 1 statement for an
district for Assessment District No. 90-3 (EastLake
b)
Resolution
approving
assessment
Greens)
Reso 1 ut i on 1(" 2.q I Mak i ng award for sale of bonds, and
providing for the establishment of a redemption fund for
Assessment District No. 90-3 (EastLake Greens)
Resolution \<.. 2,.q2. Authorizing and providing for the
security enhancement agreement for Assessment District No.
90-3 (EastLake Greens) and authori zi ng the Mayor to execute
said agreement . ~.u~
Director of Public Work~fYY
Director of Finance or;;
City Manager .J4 I:>b@ (4/5ths Vote: Yes_No...x.J
c)
These are the cl os i ng resol ut ions for the Eastlake Greens Phase I assessment
di stri ct proceedi ngs. They approve certai n bond-rel ated documents and award
the bond sale to the lowest bidder. They also approve the Security
Enhancement Agreement which provides a safety factor for assessed parcels
whose value-to-assessment ratio is less than three to one.
RECOMMENDATION: Adopt the resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
On January 22, 1991, at the publ i c heari ng, Council confi rmed the assessments
and authorized the issuance of 1915 Act bonds. On July 9, 1991, Council
authorized the advertising for bids on the bond issue in the amount of
$22,352,427.
Sealed proposals will be received on August 6, 1991 at 11 a.m. in the office
of Charles P. Young/Jeffries Banknote Company in Los Angeles. The Director of
Finance will have the bids received and the name of the successful bidder at
the time of the Council meeting and will give a verbal report.
Tonight I s action wi 11 complete the 1 egi sl at i ve proceedi ngs for the EastLake
Greens Phase I Assessment District. Through the approval of these
resolutions, the following will generally be accomplished:
1'1- ,
Page 2, Item \'\
Meeting Date 8-6-91
1. The RESOLUTION AUTHORIZING ISSUANCE OF BONDS AND APPROVING THE BOND
INDENTURE AND PRELIMINARY OFFICIAL STATEMENT approves the bond
indenture, which sets forth the conditions and covenants of the bond
issue, and the preliminary official statement, which is the disclosure
document about the assessment district and bonds, in substantially final
form. After the successful bidder has been determined, the bond
indenture must be executed on behalf of the Council.
2. The RESOLUTION MAKING AWARD FOR SALE OF BONDS awards the bond sale to
the low bidder, in terms of interest cost, at this morning's bid opening
and provides for the establishment of the bond redemption fund to which
property owner payments will be deposited, and from which payments to
the bondholders will be made.
3. The RESOLUTION AUTHORIZING AND PROVIDING FOR THE SECURITY ENHANCEMENT
AGREEMENT wi 11 set forth the condit ions and amount of the 1 etter of
credit which EastLake Development Company will provide for parcels in
the assessment district whose appraised value is less than three times
the aggregate total of all publ ic debt on it. Prior to making any
payment to EastLake Development Company, said letter of credit shall be
provided to the City.
The letter of credit security will be approximately $5.6 million. The parcels
for which security is required include the golf course and clubhouse and the
commercial site within EastLake Greens and the Olympic Training Center. As
the parcels for whi ch security will be provided develop and property val ues
increase, it is anticipated that security will no longer be necessary. All
residential parcels meet the 3:1 value-to-lien criteria except parcel
595-320-05. Thi s parcel' s all owabl e dens ity has not been determi ned yet and
therefore it is possible that a pay down of the 90-3 assessment might be
required. This parcel is not covered by the letter of credit. However, prior
to maki ng any payment to EastLake Development Company, staff will return to
Council with an agreement to address this.
FISCAL IMPACT: None to the City. All bond issuance costs will be paid by
the assessment district.
DDS: AY083
WPC 5712E
IQ-'2.
:IT~ 1_~~ ON AGENDA
DATE:
August 6, 1991
FROM:
Honorable Mayor and City Council
John D. Goss, city Manager
Lyman ChristoPhetl~irector of
Finance
TO:
V:IA:
SUBJECT: SALE OF BONDS FOR ASSESSMENT D:ISTR:ICT 90-3, EASTLAKE
GREENS - PHASE :I ($22,352,427)
The City of Chula vista opened bids for AD 90-3 bonds this morning,
Tuesday, August 6, 1991.
Three bids were received with the lowest bid submitted by stone &
Youngberg with a net interest rate of 7.5878%.
staff recommends award of the bonds to stone & Younqberq.
LC/eb
/ f-"3
-
COUNCIL AGENDA STATEMENT
Item
Meeting Date 7/9/91
ITEM TITLE: a) Resolution Ordering changes and modifications in
proceedings and assessments in Assessment District No. 90-3
(EastLake Greens-Phase I)
b) Resolution
bonds to be sold
sealed bids in
Greens-Phase I)
Authorizing certain assessment district
at a public sale and directing a call for
Assessment Di strict No. 90-3 (EastLake
REVIEWED BY:
c) Resolution Ratifying first amendment of Willdan
Associates -contract for work performed in conjunction with
Assessment District No. 90~~~stLake ~reens-Phase 1)
Director of Public Works ~v .
City Manager (4/5ths Yote: Yes___No-x-)
SUBMITTED BY:
,
At a public hearing on January 22, 1991, Council adopted resolutions approving
the Final Engineer's Report and confirming assessments in the amount of
$24,185,852 for the EastLake Greens-Phase I Assessment District No. 90-3. The
construction of the improvements to be acquired through the assessment
di stri ct proceedings were not compl ete at the time of the publ ic heari ng and
sale of bonds was deferred to a later date. Today's action initiates the bond
sale portion of the proceedings.
.
In conjunction with this project, Willdan Associates has requested that the
City process an amendment to their contract which includes an increase in
compens,at i on.
RECOMMENDATION: Adopt the resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Resolution ordering changes in proceedings and assessments.
At the time of the public hearing, it was estimated by EastLake Development
Company that the construction of the improvements, which includes major and
collector streets, water, sewer, storm drain and reclaimed water systems, and
landscaping and irrigation would be completed in April of this year now should
be completed in September 1991.' In anticipation of the possibility that the
final cost of the improvements would exceed the estimated cost, a contingency
allowance of approximately 10% of the estimated construction cost was made in
the amount assessed to the district. It was further anticipated that the
assessmenh could subsequently be lowered if some or all of the contingency
was not needed.
Iq-3
-.-.-.-.- - ..
---------------
d _., . ,nn.-,,_
/
Page 2, Item
Meeting Date 7/9/91
Based on a review by the Assessment Engineer, Willdan Associates, of the
project costs to date, it is recommended that the assessments to the district
and the bond issue be reduced to $21,978,202 from the original $24,185,852
amount. This reduction is a result of actual construction costs known to date
conforming to the earlier estimated costs and the reduction in the need for
contingency allowances. There remains a very minimal contingency allowance
for the construction remaining to be completed. If the final cost of the
remaining construction exceeds the funds available from the bond issue,
EastLake Development Company will absorb the excess cost.
The proposed changes to the Final Engineer's Report, as shown in the Modified
Final Engineer's Report, consist of the lowering of the total amount assessed
to the district as discussed above and the resulting lowering of the
individual assessments. In addition, there were some minor corrections which
are also reflected in the Report. All necessary procedures to process the
changes have been followed.
Resolution authorizing bonds to be sold.
,
As a result of the construction schedule originally provided, it was planned
that the bonds would be sold at this time and that bond debt service payments
would be posted to the property tax roll by the August 10, 1991 deadline.
While the construction of the improvements will not be completed until
September 1991, it is recommended that the sale of the bonds proceed at this
time and that bond debt service be posted with County Tax Collector in August
as originally planned to be assessed this year. It is better to assess the
new homeowners the first year they are there. Otherwise an assessment in a
later year causes them problems.
If the bonds are not issued until November 1991, after the construction of the
improvements is complete in September, an interest accrual allowance of
approximately 7% would have to be added to the bond issue since the first bond
debt service could not be posted until August, 1992. This increase in
assessments to the district would negate most of the savings achieved through
the reduction in the contingency allowance. Bond debt service cannot be
posted to the property tax roll this year unless the bonds are sold and dated
prior to September 1, 1991.
The issuance of the bonds prior to the completion of the improvements has no
negative impact on the City or future property owners in that first, no
payment will be made to EastLake Development Company until all of the
improvements are complete and the final cost is reviewed; and second, any
funds remaining after the acquisition of the improvements is complete will be
credited back to the district in the form of a reduction in the amount of
bonds outstanding or in the bond debt service posted to the tax roll in 1992
or 1993.
1'1-4
/
Page 3, Item
Meeting Date 7/9/91
Resolution ratifying First Amendment to Willdan Associates contract.
EastLake requested and City staff directed Willdan Associates to include DIF
streets in the assessment district. It was not originally anticipated that
DIF streets be included because of the projected debt of non-DIF streets would
maximize the "1% special tax" pol icy. However, project costs came in lower
and EastLake requested that DIF streets be added to the district. A revi sed
acquisition agreement and the Preliminary Engineer's Report, approved by
Council by Resolutions 15975 and 15974, outlined the additional improvements.
The request to add DIF streets was made after Willdan Associates had prepared
a draft Preliminary Engineer's Report and required them to modify that report
and perform additional audit work. Willdan is requesting an additional
$18,000, $14,187.17 for Imol ementation , $5,500 for ACQuisition, and a
reduction of $1,687.17 for Postina (actual cost) for this district for a total
of $70,000 for the port ion of the contract being reimbursed by di stri ct.
There are adequate funds in the district budget to cover these costs. Staff
recommends approval of the additional compensation.
.
FISCAL IMPACT: None to the City. All bond issuance costs will be paid by
the assessment district.
DDS:fp/AY-083
WPC 5676E
111- 5
r.;......._.
~... ~".
.>,"*".
JJ 44-
--COUNCIL AGENDA STATEMENT I
rpv JI;:ff-
AI ";".r In
.ILI:II:
Meeting Date 1/22/91
Public Hearing: Assessment District No. 90-3 (EastLake Greens
- Phase I) .
a) Resolution
modification
No. 90-3
b) Resolution Confirming the assessment, ordering the
1mpr~vements made, together with appurtenances, and approving
the engineer's "report" for Assessment District No. 90-3
Ordering certain changes and
to the Engineer's report in Assessment District
,.
c) Resolution ApprOVing contracts for ownership of
utility improvements for Assessment District No. 90-3
SUBMITTED BY: Director of Public Works ~
REVIEWED BY:
City Manager
(4/Sths Vote: Yes___No-X--)
On December 1~, 1990, Council adopted the resolution of intention to order the
acquisition and finanCing of certain infrastructure improvements in the Greens
and surrounding areas of the Eastlake Development pursuant to the Municipal
Improvement Act of 1913 and Ordinance No. 2397, and set a public hearing for
January 22, 1991, for the purpose of hearing public testimony.
All owners of property within the proposed assessment district have been
mailed a notice of the public hearing including the proposed assessment to
their land.
RECOMMENDATION: Adopt the resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Municipal Improvement Act of 1913 is a financing mechanism which allows
the future residents to finance infrastructure improvements through assessment
district bonds with payments collected on their property taxes.
This is an acquisition assessment district wherein the developer is
constructing the publ ic improvements and the City will acquire them upon
completion with funds derived from the sale of bonds. The estimated cost of
the improvements are assessed to land within the assessment district and paid
off by the property owners over a 25 year period. New homebuyers have the
option of paying off the assessment and including the cost with their
mortgage. . However, since this would raise the amount of the down payment and
would be paid at a higher interest rate for a' longer period of time, this
option is rarely, if ever, exercised.
The improvements proposed to be financed by the assessment district include
circulation element streets, collector streets, water and sewer systems,
reclaimed water facilities, storm drain systems, dry utilities, landscaping
and irrigation systems.
lq-~
.d_
J
Page 2, Itl!lll
Meeting Date 1/22/91
The total amount proposed to be assessed to the parcels in the assessment
district 15 $24.19 lIillion. This includes construction, engineering design,
inspection and administration costs, and other incidental costs as shown in
the following:
ACQuisition Construction Costs
Vater System 98.0
Vater System 710 .
Vaste Vater
Street, Storm Drain and Landscaping
Reclaimed Vater -
Dry Utilities
DIF Streets
Incidental EXDenses
TOTAL
$1,684,921
1,426,751
2,032,996
4,947,466
975,861
1,173,014
5.101. 950
$17,342,959
1. Project Management
2. Assessment Engineering
3. Design Engineering
4. Construction Supervision
5. Bond Counsel
6. Financial Consultant
7. Landscape Design
8. Utility Engineering
9. Plan Check & Inspection Fees
10. Public Agency Project Management
11. Surveying & Staking
12. Special Studies Engineering
13. sons Engineering
14. Printing, Advertising, Post of Public Hearing Notices
15. Bond Printing, Servicing & Registration
16. Sewer and Vater Engineering
17. Capitalized Interest
SUBTOTAL INCIDENTALS
$ 40,000
70,000
1,367,000
70,000
62,732
35,000
320,000
50,000
600,000
35,000
336,000
300,000
164,000
4,000
10,000
235,000
241.859
$3,940,591
$ 483,717
2.418.585
$6,842,893
$24,185,852
18. Bond Discount (2%)
19. Reserve Fund (10%)
TOTAL
TOTAL ASSESSED TO DISTRICT
Since construction of all of the improvements is not yet complete, the amount
proposed to be assessed to the district and the individual assessments
represent not to exceed amount. There is a contingency amount of
apprOXimately 10 percent of the construction budget included in the amount
assessed to the district and upon completion of the improvements, the final
\ '\ "I.
;~;:,,:',-,>:,,_..........,~ "~'"..,-..'':'''
,"".,.. ~."<""".~'.." ,- - .--
. .~
".. . ,H
< . <,., ,,,. ,~~. ~ . ,,--.~
. .)
'"
J
Page 3. Itell
Meeting Date 1/22/91
construction cost wtll be reviewed and the assessments ro!duced as
appropriate. If the costs are higher than the contingency provide for. the
developer wf11 cover those increased amounts. The bond sale. which wf11 be
held at the completion of construction which is antiCipated in Aprtl1991,
will also be adjusted in accordance with the final construction cost.
The assessments proposed for three of the approximately 190 parcels in the
district result in parcel value to assessment ratios which are less then the
City's criteria of three to one.
The three parcels include the neighborhood shopping center, the golf course
and the golf course clubhouse site. Tbe appraisal of the current value of the
parcels is based em unimproved land with only the public improvements in
place. It is reasonable to project that when all three parcels are fUlly
developed. the value to assessment ratio wtll meet or elCceed the City's
criteria. In the interim period. the Eastlake Development Company will
provide letter of credit as security for that difference associated with the
debt to lien ratio of these parcels prior to the sale of bonds.
Subsequent to the approval of the Preliminary Engineer's Report. it was
determined that several final subdivision maps had been recorded. However,
one corresponding parcelization had not been included in the preliminary
assessment roll. The new parcels have now been included. Since the
assessment was considered in the preliminary report there is no charge in
assessment just a redistribution to the parcels created by the subdivision.
It was also determined that the incidental expenses of the assessment district
had been incorrectly applied to the individual assessments. The resolution
ordering changes and modifications to the Engineer's Report corrects these
inaccuracies. The correction of the incidental expense misapplication does
result in some assessments increasing and some decreasing. The maximum
increase in assessments to residential parcels is 8.5 percent. The resulting
assessments are well within the City's three-to-one value-to-assessment ratio
criteria and below the one percent maximum annual debt service policy. The
owners of parcels whose assessments have been raised have signed a waiver and
consent form accepting the increases.
On the agenda are three-party agreements with the City, Eastlake Development
Company and SDG&E. Pacific Bell, and Otay Water District for the acceptance
and conveyance of factl ities constructed as part of the assessment district
improvement. There is no cost or liability to the City associated with these
agreements, however, they are necessary as a part of the acquisition district
proceedings.
FISCAl IMPACT: Eastlake Development Company has deposited the one percent
assessment district origination charge of $241,858.52 with the City. If the
assessment proceedings are not completed, this money will be refunded minus
any staff costs. Or if the proceedings are completed, then this money will be
deposited to the General Fund. All assessment district costs will be paid
through the issuance of 1915 Act bonds.
Ii
;
WPC 5391E
\~-~
-
\-'~-'-""'~
ITEM TITLE:
SUBMlntJ> BY:
REVIEWED BY:
BACKGROUND:
.,
".J)
..)
\
SUPPLEMENTAL
COUNCIL AGENDA STATEMENT
t
Item
a) Resolution
b) Resolution
c) Resolution
Meeting Date 12/18/90
Adopting a map showing the proposed boundary
of a special Assessment District No. 90-3,
EastLake Greens Phase I
i
.
I
;
;
,
Declaring intention and covering preliminary
deteIl11ination to order the acquisition of certain
improvements in a proposed Assessment District
No. 90-3, EastLake Greens Phase I: ordering
the preparation of a report describing the district
to be assessed to pay the costs and expenses
thereof; and providing for the issuance of bonds
Passing on the "Report" of the Engineer, giving
preliminary approval and setting a time and
place for a public bearing regarding Assessment
District No. 90-3, EastLake Greens Phase I
I
.
d) Resolution Approving revisions to the acquisition/financing
agreement for Assessment District No. 90-3,
EastLake ~re7 Phase I.
Director of Public wor~ fVIV' "
City Manager
(4/Stbs Vote: Yes_NoX)
On October 16,1990, Council accepted the petition of the EastLake Development Company
and other property owners to initiate acquisition assessment district proceedings, pursuant
to the Municipal Improvement Act of 1913 and Ordinance 2397, for the financing of
infrastructure improvements in the Greens and surrounding areas of the EastLake
development. This item continues the formal proceedings leading to the establishment of
the EastLake Greens - phase I assessment district.
\~.q
..rJ
J
Page 2, Item
Meeting Date 12/18/90
Adopt the resolution. Set time and date of public hearing for January 22, 1991, at 6:30 p.m.
BOARDS AND COMMISSIONS RECOMMENDATIONS: None
DISCUSSION:
At its meeting of December 11, 1990, the Counell continued this item for one week and
requested information in three areas: What. WOuld be the impact of the proposed
assessments on future homeowners?; What information relative to the proposed assessments
would be disclosed to new home buyers?; and, By approving this assessment district, what
additional liability is the City taking on? : The following responses are offered to those
questions. .;
What would be 1M impact oftM proposed llSSessments on future homeowners?
City policy requires that the aggregate total of all property taxes, special taxes, and the
annual debt service for special assessments shall not exceed two percent (2%) of the market
value of a home. The two percent target is widely used by public agencies in California to
evaluate the impact of special taxes, primarily Mello-Roos Community Facility Districts, and
the annual payments for assessment districts on homeowners.
Since the property tax is approximately one percent (1%), the total of special taxes and
assessment district debt service cannot exceed the remaining one percent (1%). A
preliminary review of the existing and future debt, including this proposed assessment
district, by the financial consultant indicates that the maximum annual payments will be in
the range of three-quarters of one percent (3/4 of 1%). This is substantially below the one
percent (1%) referred to above.
The proposed assessments range from $5,930 for condominium units to $6,700 for detached
dwelling units. The estimated market value ranges .from $170,000 for the lowest
condominium unit to $192,000 for the lowest detached dwelling unit. The annual debt
service payment on an assessment of $5,930 would be approximately $590, which is 0.35
percent (0.35%) of the $170,000 value; for the assessment of $6,700, annual debt service
payment would be $670, which is 0.35 percent (0.35%).
As .discussed below, the home owner will be informed of the assessment district. The
facilities being constructed are necessary for the developers to construct their subdivisions.
Consequently, the developers have to front the costs and then charge them to the home
buyer in the price of the home m: charge them through an assessment district. The financial
impact to the home owner is shown on Exhibit S-I, attached, whereby the home owner has
the choice of financing the assessment through his mortgage or accepting the assessment.
This table illustrates, that over the life of the financing, the home owner would pay $4,390
more in interest payments if the assessment district were not an option. Therefore, there
IQ-IO
u_
...
Page 3, Item
Meeting Date 12118190
is a small favorable impact for the home owner in using the assessment district. There have
been very few, if any, home owners who assumed obligations through their conventional
loans in lieu of the assessment district.
What infomuzlion relative to the proposed DSSessments would be disclosed to new home buyers?
The City has a very strong disclosure ordinance regarding special taxes and special
assessments. Developers are required to disclose not only the amount of taxes and/or
assessments, but to show prospective home buyers all annual payments and the cost to
discharge the special tax and/or assessment-in its entirety at the time of purchase. In an
effort to assure that home buyers acknowledge this information, they may indicate on the
disclosure form whether or not th~ wish to discharge any or, all of the special taxes and
assessments, and sign the form. Sample disclosure forms for the proposed assessment
district are attached.
By approving this DSSessment district, whot 9""ltJonalliabiIity is the City taking on?
The City is assuming no liability in approving this assessment district. The land upon which
the assessments are levied provides the sole security for any bonds which are issued as a part
of this proceeding.
The following language is from an Official Statement to potential bond buyers and is
commonly utilized throughout California on assessment district bond issues:
"Neither the full faith alld credit liar the gelleral taxillg power of
the City, the State of Califomia, liar any political subdivisioll
thereof is pledged to the paymellt of the bOllds. If a delinquency
occurs ill the payment of any assessmellt illstallmellt, the City will
have a duty ollly to trallsfer illto the redemptioll fWld the amowzt
of the delinquellCY out of the reserve fund. This duty of the City
is continuing during the period of delillquency, only to the extellt
of funds available from the reserve fund, wuil reinstatemellt,
redemptioll or sale of the delinquellt property. 17lere is no
assurance that sufficiellt funds will be available from the reserve
fWld far/his purpose. III accordance with Section 8769(b) of the
Improvemellt Bond Act of 1915, the City has determilled that it
willllot obligate itself to advance funds from its treasury to cure
allY deficiellCY ill the redemptio" ftllld. "
Included in the assessment district budget are monies to establish a reserve fund. This fund,
. which is equal in amount to one full year of debt service on the bonds, is established for the
purpose of paying the bondholders in the event of any delinquency on the part of property
lq-l \
-
f}
L7
Page 4, Item
Meeting Date 12/18/90
owners in making their payments, which are collected on the annual property tax bill If a
property. owner is delinquent, the Qty will begin foreclosure proceedings against the
property within 150 days.
The impact of issuing assessment district bonds on the City's ability to issue other types of
bonds. is negligIble. It am actually enhance the City's bond issuing capability if the
admini~tration of assessment district bonds is timely and tliorough.
.;.
CONCLUSION:- 7-..-::- .,; '':'.
.. ,"". ".':; .... .- , ~ . '.-
. - : ;:', ~'. .
Assessment district. financing is widely usedin new developments in California, including
Chula Vista. All new development east of 1-805 arc in School District Mello-Roos Districts,
and all new development for EastLake and Rancho del Rey OJse assessment districts for
infrastructure. .. _ . . .' .... ...., .. . .
The Council Agenda Statement of December 11, 1990, is attached for reference. Also
attached arc sample disclosure forms given to potential buyers to fully inform them of the
assessment.
[A113-2\A-113-15.WP]
\ 't - \ "2..
'0.
~..)
EXHIBIT 5-1
TOTAL INTEREST PAID
CASE I - Assessment District and Conventional Loan
Assume conventional loan @ 10% - 30 yr. - 20% down
Assessment districts @ 8~% - 25 yr. - no down
Amount Monthly Total
Price Financed Payment Interest
Conv. loan $170,000 $136,000 $1,202.24 $296,806.40
A.D. 90-3 5,930 48.27 8,551.00
$141,930 $1,250.51 $305,357.40
CASE II - Financed by Conventional Loan Only
Conv. loan
$175,930
$141,930
$1,254.66
$309,747.60
Amount of interest saved by Assessment District is $4,390.20
'-~-..~~__~. "....~""'?'! :r -"'__Yo _. .' ~~. W.o _ .~
~., - ....-. -~
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. - _w._. ._.
Q -COUNCIL AGENDA STATEMENT 0
,
,
Item~, e Tb
Meeting Date 12/11/90
a) Resolution ,SCI'11 Adopting a map showing the proposed
boundary of special Assessment District No. 90-3, Eastlake
Greens Phase I
b) Resolution ,C'CI" '! Declaring intention and covering
.preliminary determination to order the acquisition of certain
improvements in proposed Assessment District No. 90-3,
Eastlake Greens Phase 1: ordering the preparation of a report
describing the district to be assessed to pay the costs and
expenses thereof; and providing for the issuance of bonds
c) Resolution l~q""Passing on the -Report- of the
Engineer, giving pre11minary approval and setting a time and
place for a public hearing regarding Assessment District No.
90-3, Eastlake Greens Phase 1 '
d) Resolution ''S''fJ$'" Approving revisions to the
acquisition/financing agreement for Assessment District No.
90-3, Eastlake Gree.ns Phas~~kl "
SUBMITTED BY: Director of Public work~lr- .
REVIEWED BY: City Manager l'Ja, . (4/Sths Vote: YeS_NO.!..>
On October 16, 1990, Council accepted the petition of the Eastlake Development
Company and other property owners to initiate acquisition assessment district
proceedings, pursuant to the Municipal Improvement Act of 1913 and Ordinance
2397, for the financing of infrastructure improvements in the Greens and
surrounding areas of the Eastlake development. This item continues the formal
proceedings leading to the establishment of the Eastlake Greens - Phase I
assessment district.
RECOMMENDATION: Adopt the resolutions. Set time and date of public hearing
for January 15, 1991, at 6:30 p.m.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The public improvements proposed to be financed through the acquisition
assessment district proceedings include major and collector streets, water and
sewer systems, reclaimed water facilities, electrical, gas, and. telephone
systems, storm drain facilities, and landscaping and irrigation systems. The
estimated total amount proposed to be assessed to the land in the district is
S24,185,852, including S17,342,959 for construction and S6,842,893 in expenses
which include design engineering and plan checking costs, inspection costs,
assessment district consultant expenses, and bond reserve fund and discount
allowances.
. ..
'Construction of the competitively bid improvements began in early 1990 and are
estimated to be completed by April 1, 1991. The improvements in the Greens
area will be sufficiently complete in early January, 1991 that the Eastlake
~\q.l~
.
l .', .
",~"fd"~' "
" ',''->;~'~",;,,,
,"':'~~'-" '
;>>Y".:','- .
r
u
'~ige 2, Item "II~+e
Meeting Date..J..lL2L2Q
. ~1' ~-~
. .-., nt Company has schedul ed the grand opening of that ar~,. in early
f ~fth the marketing of homes to follow shortly thereafter. Since the
Jng of homes would precede the levying of assessments in_ a standard
,,15ltion assessment district proceedings, Eastlake Development Company has
quested that the City's recently adopted procedural ordinance, Ordinance
/397, which allows the ~cquisition .of improvements completed after the
adoption of the. resolution of intention and public hearing, be utilized to
complete the proceedings prior to February. The City has received a guarantee
for all City improvements included in the proposed assessment districts in the
form of bonds. .This will. ensure that. the .improvements assessed in the
district will be constructed. Additionally, .the City will not pay for the
acquisition of improvements until theY.have been completed.
. " ,..
-. -'. ..
The areas incl uded within the proposed assessment district bou.ldary are the
Greens, Trails, Vistas and the Olympic Training Center site. Only the
northern portion of the Greens will have all improvements constructed at this
time, and will receive no subsequent. a.ssessments. The Trails,Vistas,- Olympic
Training Center,' and the southern portion of the' Greens, however, receive
benefit from portions of the ,backbone water, s~wer, reclaimed water,
electrical, gas, and telephone systems being constructed at this time. As
improvements are completed in these areas in the future, Eastlake Development
Company has indicated they' will propose subsequent asse~sment districts for
those improvements.
The proposed revisions to the approved acquisition/financing agreement consist
of the addition of two major streets, included in the Transportation
Development Impact Fee (DIF) program, and the deletion of one street, also in
the DIF program. The streets to be added are Eastlake Parkway from Otay Lakes
Road to approximately 4,500 feet south and Hunte Parkway from Otay Lakes Road
to Clubhouse Drive. The deleted street is East Orange Avenue from Hunte
Parkway to approximately 5,000 feet east. Also deleted are the water, sewer,
and storm drain facilities which would have been constructed as an integral
part of East Orange Avenue.
At the time the acquisition/financing agreement was prepared, it was thought
by the developer that the inclusion of the DIF amount, then 52,850 per
equivalent dwelling unit, in the assessments for the other improvements would
result in total assessments which would exceed the City's policy limiting all
annual public debt service to one percent (1%) of the value of a dwelling unit
or other development. A detailed review by the City's financial consultant
has shown that even with the addition of the recently updated DIF amount, the
proposed assessments are well below the one percent limit. East Orange Avenue
is being deleted due to a schedule change by the developer which delays its
completion until late 1991 or early 1992.
The next step in the assessment district proceedings is the public hearing.
Adoption of tonight's resolutions will set the time and date of the public
hearing for January 15, 1991, at which time the district will be formed and
the assessments will be levied. After the public hearing, further Council
action will be necessary to authorize the sale of bonds.
FISCAL IMPACT: The Developer has advanced all City expenses related to the
proposed assessment district. In conformance with City pol icy on developer
requested assessment districts, recently adopted by Resolution 15897, Eastlake
'Development Company will deposit the origination charge .of approximately
$240,000 prior to the public hearing. The actual amount will be based on the
Final Engineer's Report.
DDS/mad:AY083/WPC 5280E
~ IC\-IS
....;.;...._-
RESOLUTION NO. 1(" 1.'10
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING. ISSUANCE OF BONDS,
APPROVING BOND INDENTURE AND OFFICIAL STATE-
MENT FOR AN ASSESSMENT DISTRICT FOR ASSESSMENT
DISTRICT NO. 90-3 (EASTLAKE GREENS)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA,
CALIFORNIA, is conducting proceedings for the installation of
certain public improvements in a special assessment district
pursuant to the terms and provisions of the "Municipal Improvement
Act of 1913", being Division 12 of the Streets and Highways Code of
the State of California, said special assessment district known and
designated as ASSESSMENT DISTRICT NO. 90-3 (EASTLAKE GREENS) (herein-
after referred to as the "Assessment District"); and,
WHEREAS, this legislative body has previously declared in its
Resolution of Intention to issue bonds to finance said improvements,
said bonds to issue pursuant to the terms and provisions of the
"Improvement Bond Act of 1915", being Division 10 of said Code; and,
WHEREAS, at this time this legislative body is desirous to set
forth all formal terms and conditions relating to the authorization,
issuance and administration of said bonds; and,
WHEREAS, there has been presented, considered and ready for
approval a bond indenture setting forth formal terms and conditions
relating to the issuance and sale of bonds; and,
WHEREAS, there has also been presented for consideration by
this legislative body an Official Statement containing information
including but not limited to the Assessment District and the type of
bonds, including terms and conditions thereof; and,
WHEREAS, this legislative body hereby further determines that
the unpaid assessments shall be specifically in the amount as shown
and set forth in the certif icate of Paid and Unpaid Assessments as
certified by and on file with the Treasurer, and for particulars as
to the amount of said unpaid assessments, said Certificate and
listshall control and govern.
NOW, THEREFORE, BE IT RESOLVED:
RECITALS
SECTION 1. That the above recitals are true and correct.
BOND AUTHORIZATION
SECTION 2. That this legislative body does authorize the issuance
of bonds in an aggregate amount not to exceed
$22,352,427.00 pursuant to the terms and provisions of
the "Improvement Bond Act of 1915", being Division 10 of
the Streets and Highways Code of the State of California
and also pursuant to the specific terms and conditions
as set forth in the BOND INDENTURE presented herein.
1<\0.-1
BOND INDENTURE
SECTION 3. That the BOND INDENTURE" is approved substantially in the
form presented herein, subject to modifications as
necessary and as approved by the Finance Director, with
the concurrence of Bond Counsel. Final approval of the
BOND INDENTURE shall be conclusively evidenced by the
signature of the Finance Director upon final delivery of
bonds and receipt of proceeds. A copy of said BOND
INDENTURE shall be kept on file with the transcript of
these proceedings and open for public inspection.
OFFICIAL STATEMENT
SECTION 4. That the OFFICIAL STATEMENT is approved substantially in
the form presented and is deemed to be in near f ioal
form, subject to non-material modifications as necessary
and as approved by the Finance Director, and execution
and distribution is hereby authorized. A copy of said
OFFICIAL STATEMENT shall be kept on file with the
transcript of these proceedings and remain open for
public inspection.
FINAL ASSESSMENTS
SECTION 5. That the Certificate of Paid and Unpaid Assessments, as
certified by the Treasurer, shall remain on file in that
office and be open for public inspection for all particu-
lars as it relates to the amount of unpaid assessments
to secure bonds for this Assessment District.
SUPERIOR COURT FORECLOSURE
SECTION 6. This legislative body does further specifically covenant
for the benefit of the bondholders to commence and prose-
cute to completion foreclosure actions regarding delin-
quent installments of the assessments in the manner,
within the time limits and pursuant to the terms and
conditions as set forth in the Bond Indenture as
submitted and approved through the adoption of this
Resolution.
Presented by Approved as to form by
Bruce M. Boogaard
City Attorney
John P. Lippitt
Public Works Director
PASSED, APPROVED, and ADOPTED
of Chula Vista, California, this
1991, by the following vote:
by the city council of the city
day of
AYES: Councllmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Tim Nader, Mayor
ATTEST:
Beverly A. Authelet, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
ss.
I, Beverly A. Authelet, City Clerk of the City of Chula Vista,
California, do hereby certify that the foregoing Resolution No.
was duly passed, approved, and adopted by the City Council
held on the day of , 1991.
Executed this
day of
, 1991.
Beverly A. Authelet, City Clerk
\'\~-L.
RESOLUTION NO. 1(., 2..C\ I
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA MAKING AWARD FOR SALE OF BONDS,
AND PROVIDING FOR THE ESTABLISHMENT OF A
REDEMPTION FUND FOR ASSESSMENT DISTRICT NO.
90-3 (EASTLAKE GREENS)
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA,
CALIFORNIA, has heretofore instituted and conducted proceedings
under the terms and provisions of the "Municipal Improvement Act of
1913", being Division 12 of the Streets and Highways Code of the
State of California, for the installation of certain public works of
improvement, together with appurtenances and appurtenant work, in a
special assessment district known and designated as ASSESSMENT
DISTRICT NO. 90-3 (EASTLAKE GREENS) (hereinafter referred to as the
"Assessment District"); and,
WHEREAS, in the Resolution of Intention it was determined and
declared that bonds should issue under the provisions of the
"Improvement Bond Act of 1915", being Division 10 of the streets and
Highways Code of the State of California; and,
WHEREAS, there has now been received, in proper form, a sealed
bid (hereinafter the "proposal") for the purchase of said bonds to
issue under said proceedings, which is considered to best serve the
interests of owners of land included within the Assessment District
and should be accepted.
NOW, THEREFORE, BE IT RESOLVED:
SECTION 1. That the above recitals are all true and correct.
SECTION 2. That this legislative body hereby rejects all of said
proposals for the sale of bonds except that herein
mentioned, and does hereby make an award and accept the
proposal for the purchase of the improvement bonds from
the responsible bidder, to-wit:
at the
proposal
of these
interest rate and terms as set forth in the
of said bidder as on file with the transcript
proceedings and open for public inspection.
SECTION 3. That said sale is subject to all the terms and condi-
tions as set forth in the Resolution of Issuance, in the
Bond Indenture in its final form, and in the accepted
proposal.
Presented by
Approved as to form by
Bruce M. Boogaard
City Attorney
John P. Lippitt
Public Works Director
\G.b-I
PASSED, APPROVED, and ADOPTED
of Chula Vista, California, this
1991, by the following vote:
by the City Council of the City
day of
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilrnembers:
ABSTAIN: Councilmembers:
Tim Nader, Mayor
ATTEST:
Beverly A. Authelet, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
ss.
I, Beverly
California,
was
held on the
A. Authelet, City Clerk of the City of Chula Vista,
do hereby certify that the foregoing Resolution No.
duly passed, approved, and adopted by the City Council
day of , 1991.
Executed this
day of
, 1991.
Beverly A. Authelet, City Clerk
RESOLUTION NO. 1(., 2.'l 2.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING A~D PROVIDING FOR THE
THE SECURITY ENHANCEMENT AGREEMENT FOR ASSESS-
MENT DISTRICT NO. 90-3 (EASTLAKE GREENS) AND
AUTHORIZING MAYOR TO EXECUTE SAID AGREEMENT
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA,
CALIFORNIA, has heretofore instituted and conducted proceedings
under the terms and provisions of the "Municipal Improvement Act of
1913", being Division 12 of the Streets and Highways Code of the
State of California, for the installation of certain public works of
improvement, together with appurtenances and appurtenant work, in a
special assessment district known and designated as ASSESSMENT
DISTRICT NO. 90-3 (EASTLAKE GREENS) (hereinafter referred to as the
"Assessment District"); and,
WHEREAS, in the Resolution of Intention it was determined and
declared that bonds should issue under the provisions of the
"Improvement Bond Act of 1915", being Division 10 of the Streets and
Highways Code of the State of California; and,
WHEREAS, there has now been received, considered and ready for
approval a Security Enhancement Agreement to be entered into between
the City and East lake Development Company, a California limited
partnership, in order to provide assurance to the City that all
payments on the Bonds will be paid.
NOW, THEREFORE, BE IT RESOLVED,
SECTION 1. That the above recitals are all true and correct.
SECTION 2. The form of Security Enhancement Agreement presented to
this meeting is hereby approved in substantially the
form presented at this meeting and the Mayor and city
Clerk are hereby authorized and directed to execute and
deliver the Agreement in substantially the form
presented to this meeting, with such changes as the
officers executing the same or the City Attorney or bond
counsel may approve, such approval to be conclusively
evidenced by the execution and delivery thereof.
Presented by Approved as to form by
John P. Lippitt
Public Works Director
Bruce M. Boogaard
City Attorney
Iqc..-\
PASSED, APPROVED, and ADOPTED
of Chula Vista, California, this
1991, by the following vote:
by the City Council of the City
day of
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Tim Nader, Mayor
ATTEST:
Beverly A. Authelet, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
ss.
I, Beverly
California,
was
held on the
A. Authelet, City Clerk of the City of Chula Vista,
do hereby certify that the foregoing Resolution No.
duly passed, approved, and adopted by the City Council
day of , 1991.
Executed this
day of
, 1991.
Beverly A. Authelet, city Clerk
CITY OF CRULA VISTA
ASSESSKBHT DISTRICT 50. gO-3
LIMITED OBLIGATI05 IMPROVBKBBT BONDS
SECURITY BJlBA)ICBMDIT AGREBMDlT
THIS AGREEMENT is made and entered into this day of
, 1991, by and among the City of Chula vista
("city"), and EastLake Development Company, a California limited
partnership ("owner").
RECITALS
1. The City Council of the City (the "Legislative Body") has
heretofore undertaken proceedings to form an assessment district
designated as Assessment District No. 90-3 (EastLake Greens - Phase
I) (the "District") pursuant to the terms and provisions of the
"Municipal Improvement Act of 1913", being Division 12 of the
Streets and Highways Code of the state of California (the "Act"),
for the purpose of financing certain public facilities ("Public
Facilities") as described in that certain document entitled
"Modified Final Engineer'S Report, City of Chula vista Assessment
District 90-3, EastLake Greens Phase I Assessment District
(Acquisition)" (the "Report"), approved by the Legislative Body on
July 9, 1991, the original of which is on file in the Office of the
City Clerk of the City.
2. The parties hereto now desire to provide for the issuance
of the City of Chula Vista, Assessment District No. 90-3, Limited
Obligation Improvement Bonds, in the aggregate principal amount not
to exceed $22,352,427.00 (the "Bonds") for the purpose of financing
the acquisition or construction of the District's portion of the
Public Facilities.
3. Because the current appraised value to assessment lien
ratio of property assessed to finance the Public Facilities is less
than the three to one (3:1) ratio required by City policy and a
significant assessment obligation is against a portion of the
District that is owned by Owner for development and sale to the
public, prudent and sound underwriting and public issuer standards
dictate that the parties hereto provide methods for enhancing the
security for the proposed Bonds.
4. The parties hereto, therefore, desire to enter into this
agreement to insure the provision of adequate security for the
Bonds and to thus facilitate the marketability and acceptability of
the Bonds.
1
1'1~- 2..
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Letter of Credit. Owner agrees as to all property to
which it has title within the District to pay the assessments
relative to the Bonds prior to the delinquency date for the payment
of such assessments. At any time prior to or concurrently with the
transfer of the proceeds received by the City for the Bonds to
Owner in payment of the acquisition costs of the Public Facilities,
Owner further agrees to provide a letter of credit in a form
substantially similar to that attached hereto as Exhibit "A" from
a financial institution in accordance with section 5 and acceptable
to the City. The letter of credit shall be for at least one (1)
year and have a face value equal to one hundred and three percent
(103%) of the sum of all the Deficiencies with respect to the
property or parcels listed on Exhibit "B" attached hereto. As used
herein, the terms "Deficiency" or "Deficiencies" means with respect
to a property or parcel an amount equal to the sum of all special
assessment and special tax liens against the property or parcel
minus one-third of the appraised value of the parcel. Owner hereby
agrees that Exhibit "B" is, as of the date of this agreement true
and correct.
The letter of credit shall be renewed by Owner annually
thereafter, or a substitute letter of credit provided, thirty (30)
calendar days prior to its expiration in an amount calculated in
accordance with the terms of this section and section 3 of this
Agreement. If Owner provides a substitute letter of credit, the
City shall return any existing letter of credit at the time of such
substitution by Owner.
The City may draw upon the full amount of the letter of
credit, or any cash deposited in lieu of a letter of credit, in the
event any of the following occurs: (i) any delinquency or default
exists on any payment of the assessments of the District levied on
property listed in Exhibit "B" hereto as amended from time to time
as provided in section 3 hereof, (ii) the letter of credit is not
renewed by, or a substitute letter of credit is not provided by,
the Owner or Transferee (as herein defined) thirty days prior to
its expiration as provided in the immediately preceding paragraph
or (iii) the issuer of the letter of credit fails at any time to
meet the criteria of section 5 hereof; provided, however, the City
will not draw on any letter of credit because of the occurrence of
an event described in phrases (i) and (iii) of the first sentence
of this paragraph unless and until the City has provided the Owner
(or Transferee) thirty (30) days written notice of its intent to
draw on the letter of credit and the Owner (or Transferee) has not
cured such event. The total amount of the letter of credit shall
be drawn at the time a draw is made.
If the full amount of the letter of credit is drawn by the
city, the city shall deposit the proceeds in a redemption fund.
Thereafter, amounts in said fund shall be used to redeem Bonds at
2
ICh..~
the earliest date practicable and to the greatest extent possible.
The Director of Finance of the City and his or her designated
representatives are hereby authorized by the City to draw on the
letter of credit and provide for the reduction and termination of
any letter of credit as may be required and according to the terms
of this Agreement. OWner shall bear all costs associated with
posting any letter of credit.
2. Substitution. If the property owned by Owner is sold or
transferred in its entirety by OWner, a letter of credit on the
same terms specified hereinabove and hereinafter may be furnished
by the purchaser or transferee (the "Transferee"). The issuing
financial institution and the form and terms of said letter of
credit will be subject to reasonable prior approval by the Director
of Finance of the City and his or her designated representatives.
All terms provided in this Agreement are applicable to the
Transferee. In the event the Transferee fails or refuses to
deliver a substitute letter of credit, the letter of credit with
Owner as the account party shall be maintained.
3. Reduction and Termination. The letter of credit provided
by Owner and any other letter of credit required by this Agreement
from a transferee may be reduced or terminated annually on July 1
of each year as specifically hereinafter set forth upon the
occurrence of the following event: If it can be established by an
independent appraisal performed by a qualified MAl appraiser
approved by the City, which approval shall not be unreasonably
withheld, that the fair market value of any property or parcel in
the District listed in Exhibit "B" hereto is equal to or exceeds
three (3) times the sum of the property or parcel's current and
prior special assessments and the capitalized value of special
taxes, the property or parcel in question shall be released from
the letter of credit requirement regarding said property or parcel
and the letter of credit then outstanding shall be proportionately
reduced. Such proportionate reduction shall be in an amount equal
to 103% of such parcel's Deficiency as set forth in Exhibit liB".
The City shall accept a letter appraisal with appropriate
supporting documentation for purposes of such appraisal.
Upon receipt of the appraisal described hereinabove, the city
shall promptly review the valuation made therein and shall notify
the Owner of its approval thereof on or before July 1 of each year,
which approval shall not be unreasonably withheld. Concurrently
with its approval of the MAl appraisal, the City shall execute an
amendment to Exhibit "B" to delete any parcels which no longer have
a Deficiency and shall provide notice to the provider of the letter
of credit of the reduction.
4. Additional Debt. Property Owner will not initiate,
consent in writing to, or in any way cooperate in the issuance of
additional publicly financed debt resulting in a special tax or
3
ICf c. - 1..\
assessment being levied on the property subject to the assessment
being levied for the payment of the Bonds if such additional debt
would result in publicly financed debt on the property in excess of
one third the value of the property, unless a letter of credit or
other security enhancement conforming to section 1 hereof has been
provided for the property.
5. Terms of Letters of Credit. Any letter of credit posted
pursuant to this Agreement shall be an irrevocable, unconditional
letter of credit with a term of not less than one year. The
financial institution issuing any letter of credit shall, at the
time of the issuance thereof and at all times thereafter, be a
domestic bank and shall be rated "A" or better by Moody's Investor
Service or standard & Poor's. All cash balances, or additional
securities, or obligations directly pledged as collateral for the
letter of credit shall be invested at a yield which is equal to or
less than the yield on the Bonds and the Developer shall provide to
or cause to be provided to, the City evidence of compliance with
such investment limitation.
6. Cash DeDosits. The Owner may at any time deposit cash in
lieu of a letter of credit as hereinafter provided. Any cash
deposit provided for herein shall be deposited to the credit of,
and in the name of, the city in a bank account designated by the
City. All accrued interest shall be paid to the party providing
same on the first day of each calendar year quarter. The maximum
interest rate earned on such deposit shall not be permitted to
exceed the "yield" on the Bonds as such term is defined in the
Internal Revenue Code of 1986.
7. ReDlacement of Cash DeDosits or Letter of Credit. Any
letter of credit or cash deposit posted with the City pursuant to
the provisions of this agreement may be replaced at any time, with
five (5) business days notice, by a letter of credit subject to the
same terms and conditions and in the same amount as the substituted
letter of credit or cash deposit. Upon receipt of such replacement
letter of credit, the City shall concurrently return the
substituted letter of credit or cash deposit to the person or
entity posting such letter of credit or making the cash deposit.
8. Assianment. This Agreement shall be binding upon the
heirs, successors and assigns of the parties hereto.
9. Amendments. This Agreement may not be amended except by
written instrument executed by the parties hereto.
10. Attornev's Fee's. Should any action be brought in any
court of competent jurisdiction, the prevailing party in such
action shall be entitled to recover all reasonable attorney's fees
and court costs incurred in connection with such litigation.
4
ICle..-.5
IN WITNESS WHEREOF, this agreement was executed by the authorized
representatives of the parties hereto on the date first hereinabove
written.
CITY OF CHULA VISTA
By:
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM AND LEGAL ADEQUACY:
City Attorney
EASTLAKE DEVELOPMENT COMPANY
a California limited partnership
By: ~1 ~
l ~
1'1'/' 'I
5
Iq(!.-~
State of California
County of San Diego
On ~ore me, MClMA ~ ' personally appeared
. , personally known to (or proved to me on the basis
of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument on the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument. _
WITNEss my hand and official seal.
Signature _ ~t:tMaJ ~ (Seal)
@''''(10FFICIAlSEAI.
6, SILVANA 80AZEL
. HOINlY PfJ/lllC'I'AlIFO~NIAL
PRIN. C/PAl Off 'Cf IN
. lIy CmrutJSAN DlfGO COO/Ii'
r-.on (xPlres ~.fjb. 12. 199.i
Iq~-'"
1211786.83'
&:
~.
SECURITY PACIFIC NATIONAL BA~
INTERNATIONAL BANKINQ QROUP
EXHIBIT "A"
Page 1 of '2.-_
333 South Beaudry Avenue
Letter of C~edit No.
P.O. Box 92e90 Mei I Code W20-20
LOB Angele., Car iforniB 90017
Tele.: 67-4343 S.W.I.F.T.: SPNBUS66
We hereby issue ou~
Irrevocable Standby Credit
Place and date of iosue
Los Angeles, Ca.
Date Bnd place of expi~v
at/in LOS ANGELES, CA
Beneficiary:
CITY OF CHULA VISTA
276 4TH AVENUE
CHULA VISTA, CA 92010
Applicant:
EASTLAKE OEVELOPMENT COMPANY
14 CORPORATE PLAZA
NEWPORT BEACH, CA 92660
Amount: U.S. Dollars
Drawn on: Security Pacific.National Bank
LOB Angel.., California
Credit avai lable by payment against presentation of your d~aft(fi) at sinh
and the document. detai led herein, together with the original of this
L.tter of Credit and Amendments (if any).
A STATEMENT SIGNEO BY THE CITY OF CHULA VISTA
("BENEnCIARY") STATING THAT: EASTLAKE DEVELOPMENT COMPANY
("DEVELOPER") IS IN DEFAULT ON PAYMENT UNDER THE PROVISIONS OF
THAT CERTAIN CITY OF CHULA VISTA ASSESSMENT OISTRICT NO.
LIMITED OBLIGATION IMPROVEMENT BONDS SECURITY ENHANCEMENT
AGREEMENT BETWEEN THE CITY OF CHULA VISTA,AND EASTLAKE
DEVELOPMENT COMPANY, A CALIFORNIA GENERAL PARTNERSHIP.
It is a condition of this Letter of Credit that it shall be
deemed automatically extended without amendment fo~ ONE YEAR f~om
its cu~rent or future expiry date, unless not les5 than 60 days
p~ior to its current or future expiry date, we shal t notify yuu
by registered mai I receipt requested o~ overnight cou~icr
.ervice, that we elect not to renew this Lette~ of C~edit for
any additional period, at which time you may draw against thi!;
Letter of Credit by presenting your draft.
THE AGGREGATE AMOUNT OF THIS CREDIT SHALL BE FURTHER REOUCED
AUTOMATICALLY AND IMMEDIATELY WITHOUT AN AMENDMENT, AT ANY TII1E,
UPON RECEIPT BY US AT THE ABOVE ADDRESS OF A WRITTEN STATEMENT,
SIGNED BY THE CITY OF CHULA VISTA ("BENEFICIARY"), IDENTIFYING
THIS CREDIT, AND STATING THE AMOUNT OF SUCH REDUCTION.
THIS CREDIT SETS FORTH IN FULL THE TERMS OF OUR UNDERTAKING AND
SUCH UNDERTAKING SHALL NOT IN ANY WAY BE MODIFIED, AMENDED OR
AMPLIFIED BY REFERENCE TO ANY DOCUMENT, INSTRUMENT OR AGREEMENT
REFERRED TO HEREIN OR IN WHICH THIS CREDIT Is REFERRED TO, OR TO
WHICH THIS CREDIT RELATES,AND ANY SUCH REFERENCE SHALL NOT BE
DEEMED TO INCORPORATE HEREIN BY REFERENCE ANY DOCUMENT,
I NSTRUMENT OR AGREEt1ENT.
DraftCI> drawn under thil Lette~ of C~edit must bca~ the clause: Drawn
under Secu~jty Pacific Bank Letter of Credit Number date(J
We here-by engage with you that drafts drawn in strict compl ience with the
terms of this credit and amendments Cif any) shal I meet with due honor
upon pre.entatlon to us.
Communication with respect to this letter of credit shs! I be in w~iting
Iqc:.-~
1211?86-83'
f:
~.
SECURITY PACIFIC NATIONAL BANK
INTERNATIONAL BANKINQ GROUP
Reference No.
Page 2
and shal I be addressed to us at 333 South Beaudry Avenue, International
Banking S.rvicer. (W20-20), Attontion: Letter of Credit Department, Los
Angeles, Cal ifornia 90071, specifically referring to the numb"!r and date
of this letter of credit.
.
This credit is subject to the Uniform Customs and Practice for Oocumentgr
Credits (19B3 REVISION>, International Chamber of Commerce (I.C.C.>
publ ication No. 400.
--A~t~T~;d-~;t~;;--
I~a..-Cl
CITY OF CHULA VISTA
ASSESSMENT DISTRICT NO. 90-3
(EaslLake Greens - Phase I)
TABLE OF ASSESSMENTS AND ESTIMATED LIEN RATIOS
ESTIMATED PIIOl OUTSTANDING PUPATMENT ADJUSTED
ASSESSMENTS I SPECIAL TAXES fUNDS TOTAL LIEN lATlO
ASSESSOR'S CONf lIMED ESTIMATED LIEN lATlO ............................ AVAILABU lETTER (REDUCING
ASSESSMENT PARCEL ASSESSMENT VALUE INCl\.R) I NG CfD'S NO I CIHJlA T IVE fROII lETTER Of CRED IT DEBT n l TR
NO. IMIBER NOTE ACIES AD 90-] (NOTE I) 90-] ONlT AD 85-2 (NOTE 2) lIEN lATlO Of CRED IT (NOTE ]) Of CREO IT)
........... .............. ....... ......... ............... ............. ........... .............. ............. ........... ............... ........:..... ......:.=...
\(]]5-391l 595-350-01 to NOTE 4 10.48 5401,180.56 51,560,000 : 18.84 S91,B21 SI40,BlI1 11.9] $0.00 SO.OO 11.93
595-350-6]
2 595-321-06 14.56 5B3,OO4.0] 10,920,000 T 1.IB.73 133,T40.3B 195,7ZB 1I.9B 0.00 0.00 1I_9B
](In-322) 595-360-01 to NOTE 4 22.40 944,388.66 15,950,000 I 16.B9 221,900.95 301,121 10.B7 0.00 0.00 10.B7
595-361-74 152,9BO
4 595-320-05 IT.]B 586,113.15 7,560,000 I 12.90 83,675.]1 9.19 0.00 0.00 9.T9
5(323-]34) 595-321-14 to NOTE 4 35.84 ',482,437.03 19,260,000 I 12.99 0.00 4BI,793 9.BI 0.00 0.00 9.BI
595-321-25
6 595-321-10 11.66 B59,142.15 12,580,000 I 14.64 145,435.64 156,744 10.B3 0.00 0.00 10.B3
7 595-320-06 5.1] 23B,446.7B 2,200,000 I I 9.2] 65,744.BlI 68,962 5.90 0.00 0.00 5.90
B 595-320-10 6.00 204,320.7B 4,050,000 I 19.82 96,625.04 80,657 10.61 0.00 0.00 10.61
9 595-]21-11 19.00 4,937,160.15 6,620,000 I 1.34 159,33B.l1 255,415 1.24 3,145,246.31 3,239,60].70 3.00
10 595'320-09 4.69 12I,1B5.83 70,000 I 0.5B 69,904.IB 63,047 0.2B 230,B03.7B 237,7Z7.90 3.00
II 595-320-07 5B.27 874,000 0.00 0
11 595-321-02 10.66 160,000 0.00 0
11 595-321-05 26.54 39B,OOO 0.00 0
II sunOTAl 911,220.04 ',432,000 1.57 0 1.57 433, BlI6. 71 446,903.31 3.00
~ 12-119 595-330-01 t. NOTE 4 21.92 702,067.12 15,750,000 22.43 160,BlI6.67 294,668 13.61 0.00 0.00 13.1.1
595-331-22
tiJ 120-127 595-080-26 t. NOTE 4 19.27 915,OB1.93 13,685,000 14.95 T60,3n .67 259,044 10.25 0.00 0.00 10.25
~ 595-0BO-33
H 12B-I68 595-]40-01 t. NOTE 4 14.66 257,B50.2B 9,000,000 34.90 69,904.IB 197,073 17.15 0.00 0.00 17 .15
1-3 595-340-19
- ~ 169 595-050-17 60.57 4,365.000 NOT A PAIT .....................................................................
0 169 595-080-05 4.42 NA NOT A PART
169 595-0BO-13 263.39 16,310,000 NOT A PART
169 595-080-14 40.40 5,330,000 NOT A PAIT THE CUMULATIVE liEN RATIO Of ASSESSMENT PARCEL NO. 169
169 595-080-20 71.39 9,910,000 NOT A PAIT
169 595-080-21 15.2B 1,980,000 NOT A PAIT EXCEEDS 1:].00. fOR A DISCUSSION Of THE VALUE TO liEN
169 595-090-01 136.10 16,335,000 NOT A PART
169 595-090-09 57.62 6,225,000 NOT A PART lATIO Of ASSESSMENT PARCEL NO. 169 SEE THE PRECEEDING
169 643-020-19 17.04 NA NOT A PART
169 643-020-20 7B.BO 3,240,000 NOT A PART SUBSECTION ENTITLED "ESTIMATED liEN RATIOS - ESTIMATED
169 643'030-04 122.07 19,700,000 NOT A PART
169 64]-030-06 299.97 30,150,000 NOT A PART liEN lATIOS Of ASSESSMENT PARCEL NO. 169."
169 643-040,05 399.09 24,278,000 NOT A PART
169 643-040-06 45.86 NA NOT A PART
169 SUBTOTAL 7,346,1B9.13 137,B23,OOO ................................................................................................
170 595-320-02 14.BlI 0.00 NA 0.00 0
171 595 -320-03 ].37 0.00 NA 0.00 45,303
172 595-320-04 22.46 0.00 NA 0.00 ]01,927
173 595-]20'0B 4.06 0.00 NA NOT A PART 0
174 595-321-07 3.20 0.00 NA 0.00 0
175 595-320-12 17.64 B04, 247.88 12,480,000 I 15.52 0.00 237,132 11.9B 0.00 0.00 1I.9B
176 643-040-07 150.00 1,058,391.50 7,020,000 I 6.63 NOT A PART 2,946,n4 1.75 1,665,165.50 1,715,120.46 3.00
......... ..c............ ............. ......=....... ............. .....:......... ..............
TOTAL 2,120.07 S22,352,427.00 S283,960,000 S1,45B,553.96 S6,179,249 S5,475,102.30 $5,6]9,355.37
NOTE 1 AS ESTIMATED IN TNE APPRAISAL REPORT, APPENDIX III. INCREASED VALUE RESUlTING fROM IMPROVEHENTS VAS NOT INCLUDED.
NOTE 2 CHANGES AS IMPROVEMENTS OCCUR. ESTIMATED NET PRESENT VALVE Of TOTAL OBLIGATION AT A MAXIMUM ANNUAL TAX.
NOTE 3 THE fUNDS AVAILABLE fROM THE LETTER Of CREDIT ARE INCREASED BY 3X TO CALCULATE THE ACTUAL lETTER Of CREDIT fOR CALL PROVISIONS AS STATED IN THE
LETTER Of CREDIT AGREEMENT. THESE AMOUNTS ARE SUBJECT TO REDUCTION AND UILL IE ELIHINATED IF ASSESSMENTS ARE PREPAID IN FULL.
NOTE 4: INfORMATION PROVIDED IS THE SUM OF ALL THE ASSESSMENTS CONTAINED VITHIN THE ORIGINAL ASSESSOR PARCEL NUKBER. UHICH HAS RECENTLY BEEN SUBDIVIDED TO
INDIVIDUAL PARCELS.
PRELIMINARY OFFICIAL STATEMENT
~V?-
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- - - -
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~~~~
~~~~
$22,352,427
CITY OF CllliLA VISTA
LIMITED OBLIGATION IMPROVEMENT BONDS
(1915 ACT)
ASSESSMENT DISTRICT NO. 90-3
(EASTLAKE GREENS - PHASE I)
The date of this Preliminary OfficiJIl Statement is July 9, 1991.
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Preliminary Official Statement Dated July 9, 1991
New Issue
In the opinion of Bond Counsel, under existing laws, regulations, rulings, andjudicial decisions,
interest on the Bonds is exempt from State of California personal income taxes, is excluded from gross
income for purposes of income taxation by the United States of America, and is not an item of tax
preference for purposes of the alternative minimum tax imposed by the United States on individuals and
corporations, subject to certain qualifications more particularly described in the section of this Official
Statement entitled "TAX EXEMPTION. "
COUNTY OF SAN DIEGO
STATE OF CALIFORNIA
$22,352,427
CITY OF CHULA VISTA
LIMITED OBLIGATION IMPROVEMENT BONDS
(1915 AC1)
ASSESSMENT DISTRICT NO. 90-3
(EastLake Greens - Phase I)
Dated: August 17, 1991
Due: September 2, as shown below
The Bonds are issued pursuant to the Improvement Bond Act of 1915 and are secured by unpaid
assessments levied in the assessment proceedings by the City of Chula Vista for Assessment District No.
90-3 undertaken pursuant to the Municipal Improvement Act of 1913.
The Bonds will be issued as fully registered bonds without coupons in the denomination of $5,000
each or any integral multiple thereof, except for one Bond maturing in 1992 which may be in a principal
amount other than $5,000. Interest on the Bonds will be payable semiannually on March 2 and September
2 of each year, beginning March 2, 1992. (The first interest payment will be made in part from Bond
proceeds.) The principal of the Bonds is payable at the office of the Paying Agent, Bank of America,
National Trust and Savings Association, Corporate Agency Division in Los Angeles, California, and
interest thereon is payable by check or draft mailed to the respective registered owners. The Bonds will
mature on September 2 of each of the years and in the amounts as shown in the following maturity
schedule:
- i -
MATURITY SCHEDULE
Principal Due Interest Principal Due Interest
Amount Sent. 2 Rate Amount Sent. 2 Rate
$ 267,427 1992 % $ 565,000 2000 %
355,000 1993 605,000 2001
380,000 1994 655,000 2002
405,000 1995 705,000 2003
430,000 1996 760,000 2004
460,000 1997 820,000 2005
490,000 1998 890,000 2006
525,000 1999
$14,040,000 % Term Bonds Due September 2, 2016
(plus accrued interest)
Tbe maturity of any Bond may be advanced to any March 2 or September 2 and redeemed prior
to its stated maturity date by the City Treasurer if there are sufficient funds available for that purpose.
Notice of advanced maturity must be given at least 30 days prior to the date of such advanced maturity.
Upon surrender and cancellation of any such Bond, the Treasurer will pay the principal thereof and the
interest accrued thereon to the date of the advanced maturity (unless the Bond has been sooner
surrendered), together with a premium as set forth herein.
The Bonds are not secured by the general taxing power of the City of Chula Vista, the State
of California or any of its political subdivisions. The interest on and principal of the Bonds are
payable solely from moneys in the redemption fund established for the Bonds, and are secured by
unpaid assessments as more fully described herein.
See the section of the Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of
special factors which should be considered, in addition to the other matters set forth herein, in considering
the investment quality of the Bonds.
Tbe Bonds are offered, when, as and if issued, subject to the approval of Brown, Harper, Burns &
Hentschke, San Diego, California, Bond Counsel. It is anticipated that the Bonds will be available for
delivery in definitive form in San Diego, California on or about August 27, 1991.
- ii -
CITY OF CHULA VISTA
San Diego County, California
CITY COUNCIL
Tim Nader, Mayor
Leonard M. Moore, Member
(Vacant), Member
David L. Malcolm, Member
Jerry R. Rindone, Member
CITY OFFICIALS
John D. Goss, City Manager
Sid W. Morris, Asst. City Manager
John P. Lippitt, Director of Public Works
Clifford L. Swanson, City Engineer
Bruce Boogaard, City Attorney
Beverly A. Authelet, City Clerk
Lyman Christopher, Director of Finance
PROFESSIONAL SERVICES
Bond Counsel
Brown, Harper, Burns & Hentschke, San Diego, California
Assessment Engineer
Willdan Associates, San Diego, California
Financial Consultant
Kadie-Jensen, Johnson & Bodnar, Municipal Financing Consultants, Inc.
San Diego, California
(619) 296-1450
Paying Agent and Transfer Agent
Bank of America, National Trust and Savings Association
Corporate Agency Division, Los Angeles, California
The information contained in this Official Statement was prepared under the direction of the City
Council of the City of Chula Vista by Kadie-Jensen, Johnson & Bodnar, Municipal Financing Consultants,
Inc., financing consultants in connection with tbe Bonds.
The discussion and information herein relating to the Bonds, the Project, the Assessment District,
the property owners and the City do not purport to be comprehensive or definitive. All references to the
Bonds and the Project are qualified in their entirety by reference to the Engineer's Report and the City's
resolutions, including the Bond Indenture, setting forth the terms and descriptions thereof.
- iii-
The information contained in this Official Statement has been compiled from sources believed to
be reliable. The Official Statement contains estimates and matters of opinion which are not intended as
representations of fact. This Official Statement is not to be construed as a contract with the purchasers
of the Bonds.
No dealer, broker, salesperson or other person has been authorized to give any information or to make
any representations, other than as contained in this Official Statement, and if given or made, such other
information or representations must not be relied upon as having been authorized by the City. This
Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there
be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to
make such offer, solicitation or sale. The information set forth herein has been obtained from the City
of Chula Vista and other sources which are believed to be reliable but is not guaranteed as to accuracy
or completeness, and is not to be construed as a representation of such by the City. The information and
expressions of opinion stated herein are subject to change without notice. The delivery of this Official
Statement shall not, under any circumstances, create any implication that there has been no change in the
affairs of the City, the Project, the Assessment District or major property owners since the date hereof.
This Official Statement is, however, final as of its date.
The Bonds will not be rated. The Bonds are exempt from registration pursuant to the Securities
Act of 1933, as amended, and the Bond Indenture is exempt from qualification under the Trust Indenture
Act of 1939, as amended. The Bonds will not be listed on any stock or other securities exchange.
Neither the Securities and Exchange Commission nor any other federal, state, or other governmental entity
or agency will have passed upon the accuracy or adequacy of the Official Statement or approved the
Bonds for sale.
In connection with this Bond underwriting, the underwriter may over allot or effect
transactions which stabilize or maintain the market price of the Bonds described herein at a level
above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may
be discontinued at any time. The underwriter may offer and sell the Bonds described herein to
certain dealers and dealer banks acting as agents at prices lower than the public offering prices and
said public offering prices may be changed from time to time by the underwriter.
The City of Chula Vista considers this Preliminary Official Statement to be "near final" within
the meaning of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934.
- iv-
TABLE OF CONTENTS
INTRODUCTORY STATEMENT
....................................... .
1
THE BONDS ..................................................... 3
Description of the Bonds ......................................... 3
Authority for Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
Purpose of the Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
Estimated Sources and Application of Funds ................. . . . . . . . . . . .. 4
Redemption Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4
Disposition of Surplus in the Improvement Fund .......................... 6
Covenants of the City Regarding Arbitrage and Rebate ...................... 6
Estimated Debt Service Schedule .................................... 7
SECURITY FOR THE BONDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8
Estimated Lien Ratios ........................................... 8
The Letter of Credit ........................................... 10
Reserve Fund ............................................... 12
Covenant for Superior Court Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
THE ASSESSMENT DISTRICT ........................................ 15
Description of Project .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
Location and Terrain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15
Environmental Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
Method of Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17
Development Impact Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19
Land Use and Zoning .......................................... 19
The Acquisition Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Land Ownership and Future Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Prior Assessments and Community Facilities District Special Taxes. . . . . . . . . . . . .. 24
Tax Delinquency ............................................. 25
Assessment Diagram . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25
Project Vicinity Map and the EastLake Development Map ................... 25
SPECIAL RISK FACTORS ........................................... 28
City Limited Obligations ........................................ 28
Tax Delinquencies ............................................ 28
Price Realized Upon Foreclosure ................................... 28
Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29
Article XIII A of the California Constitution . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29
Future Land Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 29
Loss of Tax Exemption ......................................... 31
Concentration of Property Ownership ................................ 31
Parity Taxes and Special Assessments ................................ 31
- v -
MISCELLANEOUS ................................................ 33
No Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33
Approval of Legality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33
Tax Exemption .............................................. 33
No Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33
Underwriting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34
Financial Consultants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34
Additional Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34
APPENDICES
Appendix I:
Appendix II:
Appendix III:
Appendix IV:
The City of Chula Vista
Assessment Diagram
Excerpts from the Appraisal Report
Form of Security Enhancement Agreement
- vi-
INTRODUCTORY STATEMENT
This Official Statement is provided to furnish information relating to the City of Chula Vista,
California (the "City" and the "State", respectively) in connection with the issuance of the City's
$22,352,427 principal amount of Limited Obligation Improvement Bonds, Assessment District No. 90-3
(the "Bonds" or "Bond"). The Bonds are being issued pursuant to the Improvement Bond Act of 1915
and the assessment proceedings for Assessment District No. 90-3 (the "Assessment District") are being
conducted pursuant to the Municipal Improvement Act of 1913.
The proceeds from the sale of the Bonds will be used by the City to fund the acquisition of public
works, including street, water, drainage and utility improvements, together with appurtenances and
appurtenant work (the "Project"), to fund a special reserve fund (the "Reserve Fund"), to pay a portion
of the interest due on the Bonds March 2, 1992, and to pay costs related to the issuance of the Bonds.
The Project consists of water systems for the EastLake Greens Phase I area and adjacent areas
and for the Olympic Training Center, reclaimed water facilities for EastLake Greens Phase I and major
service lines to other areas in the EastLake development, full sewer service facilities to EastLake Greens
Phase I and major sewer mains to adjacent areas and the Olympic Training Center, street and storm drain
improvements for EastLake Greens Phases I and II and adjacent areas, and related improvements.
The Project is a part of the 3,230 acre development of EastLake Development Company
("EastLake" or the "Landowner-Developer") providing some 8,900 residential units, 274 acres of
industrial land, 103 acres of commercial/retail/office use and more than I, 100 acres of parks, recreation
and open space. (Phase I of EastLake, including the first two neighborhoods known as EastLake Hills
and EastLake Shores, was begun in 1985, residential home sales began in April 1986 and, by June 1990,
some 1,825 homes had been built and sold.) Approximately 66% of this $22,352,427 Project is for the
benefit of EastLake Greens Phase I, with the balance benefitting the remainder of the lands in the
Assessment District. EastLake Greens Phase I opened to public sale on February I, 1991. By mid-June
1991,250 homes were under construction or completed and contracts for sale entered into with buyers
for 150 of these with escrow having already closed on some sales. These homes have been sold at prices
varying from approximately $180,000 to over $600,000 with an average price of approximately $230,000.
(See the section entitled "THE ASSESSMENT DISTRICT - Land Ownership and Future Development -
The EastLake Development. ")
The City and EastLake, a major owner of land within the Assessment District with an option to
purchase substantially all of the remaining land (from Western Salt Company) within the Assessment
District, have entered into an agreement (the" Acquisition Agreement"), as provided for by the Municipal
Improvement Act of 1913, which provides that upon completion of construction by the Landowner-Devel-
oper of specified improvements, the City will initiate proceedings for the acquisition of such improve-
ments and the City has done so. (See the section entitled "THE ASSESSMENT DISTRICT - The
Acquisition Agreement. ")
The Bonds are payable from the annual assessment installments collected on the regular property
tax bills sent to owners of property having unpaid assessments levied against land benefitted by the
Project. (See the section of the Official Statement entitled "SECURITY FOR THE BONDS. ") In the
event of a delinquency in the payment of any installment of an assessment, the City will transfer from the
Reserve Fund (established from Bond proceeds) to the extent funds are available in such Fund, to the fund
from which principal and interest payments on the Bonds are made (the "Redemption Fund") the amount
necessary to pay the next maturing installment of principal and interest on the Bonds. The Reserve Fund
will be established in an amount equal to ten percent (10%) of the principal amount of the Bonds issued
or Maximum Annual Debt Service on the Bonds or 125% of Average Annual Debt Service on the Bonds,
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whichever is least. (See "SECURITY FOR THE BONDS - Reserve Fund. ") Additionally, the City has
covenanted under certain circumstances to commence appropriate judicial foreclosure proceedings in the
event of delinquencies. (See "SECURITY FOR THE BONDS - Covenant for Superior Court
Foreclosure. ")
Assessed parcels with value to lien ratios of less than 3: I (the "Deficient Parcels"), constituting
approximately 32 % of the total assessment (see the section entitled "SECURITY FOR THE BONDS _
Estimated Lien Ratios"), are to be additionally secured by a Letter of Credit provided by a qualified bank
in an initial principal amount of $5,639,355 (or cash is to be deposited in lieu thereof). In the event of
any default in payment of an assessment due on any Deficient Parcel, the Letter of Credit provides funds
payable unconditionally to the City to prepay assessments on all Deficient Parcels so as to increase value
to lien ratios on such Parcels to at least 3: I based on then current appraisals. Bond owners should be
aware that the amount of the Letter of Credit (or cash deposited in lieu thereof) may reduce over time as
a result of an increase in property values as outlined in the section of the Official Statement entitled
"SECURITY FOR THE BONDS - The Letter of Credit," and in Appendix IV.
As authorized by Section 8769 of the Streets and Highways Code of the State, the City has deter-
mined not to obligate itself to advance any available funds from the City Treasury to cure any deficiency
or delinquency which may occur in the Redemption Fund by failure of property owners to pay annual
special assessments.
The Bonds are not general obligations of the City or of the State or any other political sub-
division of the State, and neither the City nor the State has pledged its full faith and credit for the
payment thereof. If a delinquency occurs in payment of any assessment installment, the City will
have a duty only to transfer into the Redemption Fund the amount of the delinquency out of the
Reserve Fund. There is no assurance that sufficient funds will be available from the Reserve Fund
for this purpose.
The Bonds are not rated and have a substantial degree of risk. See the section of the Official
Statement entitled "SPECIAL RISK FACTORS" for a discussion of special factors which should be
considered, in addition to the other matters set forth herein, in considering the investment quality of the
Bonds.
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THE BONDS
Description or the Bonds
The Bonds will be dated August 17, 1991 and will bear interest from that date at the rates and
mature in the amounts and on the dates as previously set forth in this Official Statement. The Bonds will
be issued as fully registered Bonds without coupons in the denomination of$5,OOO or any integral multiple
thereof, except for one Bond maturing in 1992 which may be in a principal amount other than $5,000.
The Bonds will be issued as serial and term bonds. Interest on the Bonds will be payable
semiannually on March 2 and September 2 of each year commencing March 2, 1992. Principal of and
premium, if any, on the Bonds is payable at the office of the Paying Agent, Bank of America, National
Trust and Savings Association, Corporate Agency Division, Los Angeles, California, and interest thereon
is payable by check or draft mailed to the respective registered owners as of the 15th day of the month
preceding the interest payment date (each a "Record Date"), or upon the written request delivered to the
Paying Agent by the applicable Record Date of a Bondowner of at least $1,000,000 in aggregate principal
amount of Bonds, by wire transfer in immediately available funds to an account in the United States
designated by such Bondowner.
The Bonds are issued as fully registered bonds payable to the registered owners thereof. Transfer
of ownership of a fully registered Bond or fully registered Bonds shall be made by exchanging the same
for a new fully registered Bond or fully registered Bonds of the same maturity and in the same aggregate
principal amount. All of such exchanges shall be made in such manner and upon such reasonable terms
as may from time to time be determined and prescribed by the City in the Bond Indenture; provided, how-
ever, that no such exchange shall be made during the 15 day period prior to the selection of any Bonds
selected for redemption, or of any Bonds so selected for redemption.
Authority ror Issuance
The improvement proceedings for the Assessment District were initiated by adoption of the
Resolution of Intention adopted by the City Council of the City of Chula Vista (the "City Council") on
December 18, 1990. The proceedings are being conducted pursuant to Division 12 of the California
Streets and Highways Code, the Municipal Improvement Act of 1913 (the" 1913 Act"). The Bonds will
be secured by unpaid assessments levied against private property in the Assessment District in accordance
with the provisions of the 1913 Act, and will be issued pursuant to Division I 0 of the California Streets
and Highways Code, the Improvement Bond Act of 1915 (the" 1915 Act"). (The 1913 and the 1915 Acts
are herein together referred to as the "Bond Law".) The City has adopted a resolution providing for the
issuance of the Bonds pursuant to the Bond Law (the "Bond Indenture").
Purpose or the Bonds
The Bonds are authorized for the purpose of providing funds for the acquisition of public improve-
ments, including water systems for the EastLake Greens Phase I area and adjacent areas and for the
Olympic Training Center, reclaimed water facilities for EastLake Greens Phase I and major service lines
to other areas in the EastLake development, full sewer service facilities to EastLake Greens Phase I and
major sewer mains to adjacent areas and the Olympic Training Center, street and storm drain
improvements for EastLake Greens Phases I and II and adjacent areas, and related improvements, together
with appurtenances and appurtenant work, as more fully described in the section entitled "THE AS-
SESSMENT DISTRICT."
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Estimated Sources and Application of Funds
As described below, upon the sale of Bonds, a portion of the proceeds will be placed in the
Improvement Fund and disbursed therefrom, as provided in the Bond Law, for acquisition and other costs,
including planning and engineering work. A portion of the Bond proceeds equal to 10% of the principal
amount thereof or Maximum Annual Debt Service on the Bonds or 125 % of Average Annual Debt Service
on the Bonds (as those terms are defined in the section entitled "SECURITY FOR THE BONDS -
Reserve Fund"), whichever is least, will be placed in the Reserve Fund, and a portion thereof (together
with interest earnings thereon and special assessments collected by such date) sufficient to make the first
interest payment on the Bonds (March 2, 1992) will be placed in the Redemption Fund.
The Bond proceeds and funds collected in payment of assessments are estimated to be applied
as follows:
Sources of Funds
Cash Collections
Unpaid Assessments
Less Bond Discount (2.0%)"
$ 0
22,352,427
(447.049)
Accrued Interest
NET BOND PROCEEDS
21,905,378
49.345
$21,954,723
Aoolication of Funds
Construction Acquisition
Engineering, Testing and Inspection
Administration and Management
Legal and Financing
.
Reserve Fund (10%)
Capitalized Interest
Accrued Interest
TOTAL APPLICATION OF FUNDS
$16,047,582
3,190,138
273,799
109,441
2,235,243
49,175
49.345
$21,954,723
Redemption Provisions
The Bonds may be called by the City Treasurer and redeemed in advance of maturity, from the
sources of funds set forth below, on any March 2 or September 2 by giving notice at least 30 days prior
to the date fixed for such advanced maturity as provided by the Bond Law and by paying to the registered
owners the principal amount of the Bonds so redeemed, together with a premium equal to three percent
(3 %) of such principal amount plus interest to the date of advanced maturity (or redemption), or, if any
Bond is sooner surrendered, then interest to the date of payment of that Bond; provided, however, no
premium will be paid upon any Term Bonds (as defined below) called and redeemed in advance of
maturity from Mandatory Sinking Fund Payments.
I. From Prevaid Assessments. The Bond Law (and the Bond Indenture) provide that after Bonds
are issued a property owner may, at any time, pay all or part (in increments of $5,000) of the balance
due on his assessment by depositing with the City Treasurer all or part of the unpaid assessment plus the
interest thereon, plus the applicable premium thereon, plus the unpaid principal and interest posted on the
current tax roll and any delinquent amounts and any costs of calling Bonds less the proportionate amount
credited from the Reserve Fund (the "Prepaid Assessments"). Using these Prepaid Assessments the City
. Estimated; subject to change.
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Treasurer is required to advance the maturity of and redeem Bonds prior to their stated maturity dates in
accordance with the provisions of the Bond Law.
Development of parcels within the Assessment District and/or the application of moneys
derived by the City from the letter of credit (see the section entitled "SECURITY FOR THE BONDS
_ The Letter of Credit") could result in Prepaid Assessments. Any such Prepaid Assessments would
result in the advanced maturity (i.e. redemption) of Bonds prior to their respective stated maturity
dates. Redemption of Bonds from letter of credit moneys could be in a substantial amount.
2. From Mandatorv SinkinV Fund Payments. The Bonds maturing on September 2, 2016 (the
"Term Bonds") are subject to mandatory sinking payment redemption in part on September 2, 2007 and
on each September 2 thereafter to maturity, by lot, at a redemption price equal to the principal amount
thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium,
from sinking fund payments as follows:
SINKING FUND REDEMPrION SCHEDULE FOR BONDS
TERM BONDS MATURING SEPTEMBER 2.2016
Redemption Date Principal Amount
(Se.ptember 2) To Be Redeemed
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016 (Maturity)
$ 960,000
1,035,000
1,120,000
1,215,000
1,315,000
1,425,000
1,540,000
1,670,000
1,805,000
1,955,000
3. From Refundinl! Bond Proceeds. Applicable law permits the City to cause the Bonds to be
redeemed in advance of their respective maturity dates from the proceeds of refunding bonds issued
pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds. The City may issue and sell
refunding Bonds without giving notice to or conducting a hearing for owners of property in the
Assessment District or giving notice to the owners of the Bonds upon making certain relevant findings.
The City has covenanted, however, that it will not issue such refunding bonds prior to September 2, 1999
for the purpose of refunding the Bonds maturing on or after September 2, 2000.
Upon issuing refunding bonds, the City Council may require that the Bonds be exchanged
for refunding bonds on any basis which the City Council determines is for the City's benefit, if the
Bondowners consent to the exchange. As an alternative to exchanging the refunding bonds for the Bonds,
the City may sell the refunding bonds and use the proceeds to pay the principal of and interest and
redemption premium, if any, on the Bonds as they become due, or advance the maturity of the Bonds and
pay the principal of and interest and redemption premium thereon, all without Bondowner consent.
Fully registered Bonds issued in denominations greater than $5,000 will be subject to redemption
and payment in advance of maturity in increments of $5,000. If less than the entire Bond is redeemed,
a Bond representing the unredeemed portion shall be reissued to the registered owner thereof.
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Determination of which Bond or Bonds are to be redeemed will be made by the City Treasurer
in accordance with the Bond Law. In selecting a Bond for retirement, the City Treasurer shall select
Bonds in such a manner that the ratio of outstanding Bonds to issued Bonds shall be approximately the
same in each annual maturity and each annual sinking fund payment insofar as possible. Subject to the
foregoing, Bonds to be redeemed within an annual maturity shall be selected by lot.
Disposition of Surplus in the Improvement Fund
Any surplus remaining in the Improvement Fund after completion of the Project (including
payment of all claims) shall, in accordance with the Bond Law and the Bond Indenture, remain in the
Improvement Fund for a period of two (2) years from the receipt of Bond proceeds and thereafter be
applied as a credit to the assessment or, as an alternative, any portion of the surplus may be used to call
and redeem outstanding Bonds, as the City Council may determine.
Covenants of the City Regarding Arbitrage and Rebate
The City has covenanted to take all actions necessary to comply with the provisions of the Internal
Revenue Code of 1986, as amended, with respect to arbitrage and rebate of certain investment earnings
on the proceeds of the Bonds to the United States of America, all as set forth in the Bond Indenture.
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Estimated Debt Service Schedule
Set forth below is the estimated schedule for payment of debt service of the Bonds. Interest is
estimated at an average annual rate of 8.14%. Actual interest rates for the Bonds will be determined at
the time of sale thereof.
CITY OF CHULA VISTA
LIMITED OBLIGATiON IMPROVEMENT BONDS
ASSESSMENT DISTRICT NO. 90-3
(EastLake Greens - Phase I)
DEBT SERVICE SCHEDULE
Maturity Debt
Seotember 2 Princioal Interest Service
1992 $267,427 $1,850,443.35" $2,117,870.35
1993 355,000 1,760,380.00 2,115,380.00
1994 380,000 1,738,370.00 2,118,370.00
1995 405,000 1,714,050.00 2,119,050.00
1996 430,000 1,687,320.00 2,117 ,320.00
1997 460,000 1,658,080.00 2,118,080.00
1998 490,000 1,625,880.00 2,115,880.00
1999 525,000 1,590,600.00 2,115,600.00
2000 565,000 1,551,750.00 2,116,750.00
2001 605,000 1,509,092.50 2,114,092.50
2002 655,000 1,462,507.50 2,117,507.50
2003 705,000 1,411,417.50 2,116,417.50
2004 760,000 1,355,722.50 2,115,722.50
2005 820,000 1,294,922.50 2,114,922.50
2006 890,000 1,228,912.50 2,118,912.50
2007" 960,000 1,156,822.50 2,116,822.50
2008" 1,035,000 1,078,582.50 2,113,582.50
2009" 1,120,000 993,712.50 2,113,712.50
2010" 1,215,000 901,312.50 2,116,312.50
2011" 1,315,000 801,075.00 2,116,075.00
2012" 1,425,000 692,587.50 2,117,587.50
2013" 1,540,000 575,025.00 2,115,025.00
2014" 1,670,000 447,975.00 2,117,975.00
2015" 1,805,000 310,200.00 2,115,200.00
2016" 1.955.000 161.287.50 2.116.287.50
Totals $22,352,427 $30,558,028.35 $52,910,455.35
"
Interest from the date of the Bonds to March 2, 1992.
"" Mandatory Sinking Fund Payments on Term Bonds maturing September 2,2016.
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SECURITY FOR THE BONDS
The Bonds are secured by unpaid assessments levied against private property within the Assess-
ment District pursuant to the assessment proceedings. Such unpaid assessments (together with interest
thereon) and moneys in the Redemption Fund constitute a trust fund for the redemption and payment of
the principal of and interest on the Bonds. Principal of and interest on the Bonds are payable exclusively
out of the Redemption Fund. The Reserve Fund is also a trust fund for the benefit of the registered
owners of the Bonds. (See the subsection entitled "Reserve Fund".)
The Bonds are not secured by the general taxing power of the City, or the State or any
political subdivision of the State, and neither the City nor the State has pledged its full faith and
credit for the payment thereof.
Under provisions of the 1915 Act, installments sufficient to meet annual payments of principal
and interest on the Bonds are to be collected on the regular property tax bills sent to owners of property
against which there are unpaid assessments. These annual installments are to be paid into the Redemption
Fund which will be held by the City Treasurer and used to pay the principal of and interest on the Bonds
as they become due. The installment billed against each property each year represents a pro rata share
of the total principal and interest coming due on all of the Bonds that year. The amount billed against
each property is based on the percentage which the unpaid assessment against the property bears to the
total of unpaid assessments in the Assessment District. The failure of a property owner to pay an annual
assessment installment will not result in an increase in assessment installments against other property in
the Assessment District.
Although the unpaid assessments constitute liens on assessed parcels, they do not constitute a
personal indebtedness of the respective property owners. There is no assurance that property owners will
be financially able to pay their assessments or that they will pay such assessment installments even if
financially able to do so.
In the event of delinquency in the payment of any installment of an unpaid assessment, the City
will, to the extent that funds are available therein, transfer from the Reserve Fund to the Redemption
Fund the amount necessary to pay the next maturing installment of principal and interest on the Bonds.
In the event of delinquency in the payment of any installment of an unpaid assessment, the City also has
covenanted to institute superior court foreclosure proceedings to enforce payment of a delinquent
assessment installment. As authorized by Section 8769 of the Streets and Highways Code of the State,
the City has determined not to obligate itself to advance any available funds from the City Treasury to
cover any deficiency or delinquency which may occur in the Redemption Fund by failure of property
owners to pay annual special assessments. (This determination by the City does not prevent the City, in
its sole discretion, from so advancing such funds.)
Estimated Lien Ratios
Estimated lien ratios for each parcel in the District are set forth in this section in the following
Table of Assessments and Estimated Lien Ratios, together with the amount of the appraised value and
confirmed assessment for each parcel. The lien ratios are arrived at by dividing the appraiser's estimated
value by the confirmed assessment amount. (For example, a 2: I lien ratio means that the estimated land
value is two times the estimated assessment amount.) In all cases the "estimated value" includes the
existing improvements to be acquired from Bond proceeds, but does not include, unless otherwise noted,
the value of building improvements to be constructed on various parcels in the Assessment District.
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The Appraisal Report, dated May 21, 1991, prepared by Kibbey Company, San Diego, California,
is excerpted in Appendix III to this Official Statement. The complete Appraisal Report may be reviewed
in the office of the City Clerk.
The assessment parcels have been appraised to provide an estimate of value of the parcels in the
Assessment District. It should be emphasized that the land value investigation and market analysis did
not constitute a full appraisal of the parcels included in the Assessment District. The appraisal was
deemed by the appraiser to be adequate for estimating the probable "not less than" value for each parcel.
The Assessment District consists of 397 parcels of land, 369 of which have been assessed, the
remaining parcels being devoted to schools, open space and similar recreational areas. Improvements
constituting the Project have been substantially completed and are anticipated to be fully completed by late
September 1991, and all assessed parcels are benefitted by such public improvements.
The lien ratios on the assessed parcels (including prior assessments and CFD special taxes)
range from 0.28:1 to 17.15:1 as shown in the Table of Assessments and Estimated Lien Ratios.
Assessment Parcels Nos. 9-11 and 176, constituting approximately 32% of the assessed parcels (based
on the amount of assessments levied), have lien ratios of less than 3:1. As discussed in the following
section entitled "The Letter of Credit," each parcel with a lien ratio of less than 3:1 has been
additionally secured by a letter of credit in an amount sufficient to insure that each such parcel
meets the 3:1 lien ratio requirement based upon current appraisals.
There is no assurance that, in the event of a foreclosure sale for a delinquent assessment install-
ment, any bid will be received for such property or that any bid received will be sufficient to pay such
delinquent installment. (See the section entitled "SPECIAL RISK FACTORS".)
Prior Assessments: Special assessment improvements were made to certain parcels in the Assess-
ment District in prior proceedings and the estimated prior assessments levied against such parcels
presently outstanding are included in the lien ratios set forth in the Table of Assessments and Estimated
Lien Ratios under the heading "Estimated Prior Outstanding Assessments and Special Taxes - AD 85-2."
See the section of this Official Statement entitled "THE ASSESSMENT DISTRICT - Prior Assessments
and Community Facilities District Special Taxes."
Community Facilities District Debt: All of the property located within the Assessment District
is also located within Community Facilities Districts ("CFD") No. I of both Chula Vista Elementary
School District and Sweetwater Union High School District. Parcels within these two Community
Facilities Districts boundaries are subject to Mello-Roos CFD special taxes which have been levied to
secure CFD bonds. Except for Assessment Parcel No. 169 (discussed below), the amounts of such taxes
are included in the Table of Assessments and Estimated Lien Ratios under the heading "Estimated Prior
Outstanding Assessments and Special Taxes - CFD No.1." (Special taxes are estimated at a 9% net
present value by using the maximum tax for fiscal year 1990-91 escalated by 2% for 25 years.)
Estimated Lien Ratios of Assessment Parcel No. 169: Assessment Parcel No. 169 has not been
included in prior special assessment proceedings but is currently subject to raw land special taxes under
Category III of the CFD' s Special Tax Methodology. The Category III special tax is designed to provide
additional security for CFD bonds issued by the CFDs. No Category III special taxes have been levied
since the formation of the CFDs.
Category III special taxes are not needed for debt service on existing outstanding CFD obligations.
Current policy in each of the School Districts is not to issue future CFD obligations requiring the
imposition of any such Category III raw land special taxes. As Assessment Parcel No. 169 is subdivided
and final maps approved, such parcels will become subject to Category II special taxes and, when building
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permits are issued, to Category I special taxes, both at a lesser rate than Category III. Characteristically,
planning approvals result in substantial increases in land values.
The estimated value to lien ratio on Assessment Parcel No. 169 excluding CFD potential special
taxes is 18.76:1. If the CFD Category III maximum potential special tax liability is included, the
estimated lien ratio is 3.49: I.
The Letter of Credit
By City policy, a minimum value to lien ratio of 3:1, including all assessments to be spread
against a parcel and CFD debt, must be maintained on lands subject to special assessment or tax
proceedings conducted by the City. As shown in the following Table of Assessments and Estimated Lien
Ratios, of the 397 parcels located in the Assessment District, Assessment Parcels Nos. 9, 10, II and 176
have value to lien ratios, when prior special assessments and special taxes are added to the current
assessment, of less than the requisite 3: I (the "Deficient Parcels"). In order to cure this deficiency, the
City and the EastLake Development Company will agree, in a Security Enhancement Agreement, that,
prior to the transfer of any of the Bond proceeds to EastLake in payment for acquisition of the Project
by the City, EastLake Development Company, as LandownerlDeveloper, will obtain an unconditional
letter of credit payable by a qualified domestic bank with a credit rating of "A" or better to the City of
Chula Vista, on demand, in the amount of $5,639,355 (or will deposit cash in lieu thereof). This amount,
used to prepay assessments on Deficient Parcels, would result in a 3: I value to lien ratio on all Deficient
Parcels based upon current appraisals.
The Agreement will further provide that the City may call the entire amount of the letter of credit
any time that: (I) any Deficient Parcel fails to pay a levied assessment in a timely manner; (2) EastLake
Development Company fails to renew the existing (or any future) letter of credit not less than 30 days
prior to its annual expiration date; or (3) the issuing bank's rating is reduced below "A" and EastLake
fails to obtain a substitute letter of credit from a qualified bank within 30 days thereafter. The City has
agreed upon default in the payment of any assessment on any Deficient Parcel, to apply all monies
received under the letter of credit (or cash deposited in lieu thereof) to prepay assessments on the
Deficient Parcels so as to increase the value to lien ratio to 3: I or greater.
EastLake or any successor owner may seek reduction in the amount of the letter of credit (or in
any amount of cash deposited in lieu thereof) based upon an increase in the value of any Deficient Parcel,
upon an appropriate finding by the City, equal to or greater than 3: lover the assessment and special tax
obligations against such parcel. EastLake or any successor owner also may seek reduction in any letter
of credit or substitute letter of credit when the successor owner provides a substitute letter of credit
acceptable to the City and meeting its requirements. A copy of the proposed Security Enhancement
Agreement between EastLake Development Company and the City is included as Appendix IV.
The City has covenanted in the Bond Indenture to require minimum value to lien ratios of not less
than 3: I in future financings involving assessment or special tax debt on lands located within the
Assessment District. Additional assessments will not be approved by the City against any parcel(s) which
would result in a value to lien ratio of less than 3: I unless additional letters of credit or comparable
security enhancements are provided.
For a discussion of additional future indebtedness which may adversely affect the lien to value
ratios on the parcels securing the Bonds, see the section entitled "SPECIAL RISK FACTORS - Parity
Taxes and Special Assessments."
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CITY OF CHULA VISTA
ASSESSMENT DISTRICT NO. 90-3
(EastLake Greens - Phase I)
TABLE OF ASSESSMENTS AND ESTIMATED LIEN RATIOS
ESTIMATED PRIOR DUTSTANDING PREPATMENT ADJUSTED
ASSESSMENTS l SPECIAL TAXES FUNDS TOTAL LIEN RATIO
ASSESSOR'S CONFIRMED ESTIMATED LIEN RATIO ....---..................... AVAILABLE LETTER (REDUC I NG
ASSESSMENT PARCEL ASSESSMENT VALUE I NCLUD I NG CFD'S NO I CUMULATIVE FROM LETTER OF CREDIT DEBT BT L TR
NO. NUMBER NOTE ACRES AD 90-3 (NOTE II 90,3 ONLY AD 85.2 (NOTE 2) LIEN RATIO OF CRED IT (NOTE 3) OF CREO I T)
....=aa..s:II: .............. ..=.... ......... ............... ............. ........... .............. ............. .........:. ..........=:... ====-.:11:======= ===========:
1(335-397> 595'350-01 to NOTE 4 10.48 S401,180.56 $1,560,000 : 18.84 $91,821 $140,881 11.93 $0.00 $0.00 11.93
595-350-63
2 595'321-06 14.56 583,004.03 10,920,000 : -18.13 133,140.38 195,128 11.98 0.00 0.00 11.98
3(111-322) 595-360-01 to NOTE 4 22.40 944,388.66 15,950,000 16.89 221,900.95 301,121 10.81 0.00 0.00 10.81
595-361-14
4 595-320-05 11.38 586,113. IS 7,560,000 12.90 83,615.31 152,980 9.19 0.00 0.00 9.19
5(323-334) 595-321-14 to NOTE 4 35.84 1,482,431.03 19,260,000 12.99 0.00 481,193 9.81 0.00 0.00 9.81
595-321-25
6 595-321-10 11.66 859,142.15 12,580,000 14.64 145,435.64 156,144 10.83 0.00 0.00 10.83
7 595.320-06 5.13 238,446.78 2,200,000 9.23 65,744.88 68,962 5.90 0.00 0.00 5.90
8 595-320' 10 6.00 204,320.78 4,050,000 19.82 96,625.04 80,657 10.61 0.00 0.00 10.61
9 595-321-11 19.00 4,937,160. IS 6,620,000 1.34 159,338.11 255,415 1.24 3,145,246.31 3,239,603.70 3.00
10 595'320-09 4.69 12',185.83 70,000 0.58 69,904.18 63,047 0.28 230,803.78 237,727.90 3.00
II 595-320-07 58.27 874,000 0.00 0
II 595-321-02 10.66 160,000 0.00 0
II 595-321-05 26.54 398,000 0.00 0
I' SUBTOTAL 911,220.04 1,432,000 1.51 0 1.57 433,886.71 446,903.31 3.00
12-119 595-330-01 to NOTE 4 21.92 702,061.12 15,150,000 22.43 160,686.67 294,668 13.61 0.00 0.00 13.01
595 - 33 I - 22
- 120-127 595-080-26 to NOTE 4 19.27 915,081.93 13,685,000 14.95 160,311.67 259,044 10.25 0.00 0.00 10.25
- 595-080-33
128-168 595-340-01 to NOTE 4 14.66 257,850.28 9,000,000 34.90 69,904.18 197,013 11. IS 0.00 0.00 11. IS
595-340-19
169 595-050-11 60.57 4,365,000 NOT A PART ******************...****************************...*.***************
169 595-080-05 4.42 NA NOT A PART
169 595-080-13 263.39 16,310,000 NOT A PART
169 595-080-14 40.40 5,330,000 NOT A PART THE CUMULATIVE LIEN RATIO OF ASSESSMENT PARCEL NO. '69
169 595-080-20 71.39 9,910,000 NOT A PART
169 595-080-21 15.28 1,980,000 NOT A PART EXCEEDS 1:3.00. FOR A DISCUSSION OF THE VALUE TO LIEN
169 595-090-01 136.10 16,335,000 NOT A PART
169 595-090-09 57.62 6,225,000 NOT A PART RATIO OF ASSESSMENT PARCEL NO. 169 SEE THE PRECEEDING
169 643-020-19 17.04 NA NOT A PART
169 643-020-20 78.80 3,240,000 NOT A PART SUBSECTION ENTITLED llESTIMATED LIEN RATIOS - ESTIMATED
169 643-030-04 122.07 19,700,000 NOT A PART
169 643'030-06 299.97 30,150,000 NOT A PART LIEN RATIOS OF ASSESSMENT PARCEL NO. 169.11
169 643-040-05 399.09 24,278,000 NOT A PART
169 643-040-06 45.86 NA NOT A PART
'69 SUBTOTAL 7,346,169.13 137,823,000 ..**......******..*.**....***.****.********.*********************************.******************
170 595-320-02 14.88 0.00 NA 0.00 0
171 595'320-03 3.37 0.00 NA 0.00 45,303
172 595-320-04 22.46 0.00 NA 0.00 301,927
113 595'320-08 4.06 0.00 NA NOT A PART 0
174 595-321 -07 3.20 0.00 NA 0.00 0
115 595.320-12 17.64 804,247.88 12,480,000 15.52 0.00 237,132 11.98 0.00 0.00 11.98
176 643-040'07 150.00 , ,058,391.50 7,020,000 6.63 NOT A PART 2,946,n4 1.15 1,665,165.50 1,715,120.46 3.00
=aea:eea_ .a======.sss:=: s=........... ...:=====:.... :=.....==.... =:z=:========:: ===:==========
TOTAL 2,120.01 $22,352,421.00 S283,960,OOO $1,458,553.96 $6,179,249 S5,415,102.30 $5,639,355.37
NOTE I:
NOTE 2:
NOTE 3:
NOTE 4:
AS ESTIMATED IN THE APPRAISAL REPORT, APPENDIX III. INCREASED VALUE RESULTING FROM IMPROVEMENTS WAS NOT INCLUDED.
CHANGES AS IMPROVEMENTS OCCUR. ESTIMATED NET PRESENT VALUE OF TOTAL OBLIGATION AT A MAXIMUM ANNUAL TAX.
THE FUNDS AVAILABLE FROM THE LETTER OF CREDIT ARE INCREASEO BY 3X TO CALCULATE THE ACTUAL LETTER OF CREDIT FOR CALL PROVISIONS AS STATED IN THE
LETTER OF CREDIT AGREEMENT. THESE AMOUNTS ARE SUBJECT TO REDUCTION AND WILL BE ELIMINATED IF ASSESSMENTS ARE PREPAID IN FULL.
INFORMATION PROVIDED IS THE SUM OF ALL THE ASSESSMENTS CONTAINED WITHIN THE ORIGINAL ASSESSOR PARCEL NUMBER, ~HICH HAS RECENTLY BEEN SUBDIVIDED TO
INDIVIDUAL PARCELS.
Reserve Fund
Pursuant to the 1915 Act and the Bond Indenture (and subject to the arbitrage requirements of
Section 148 of the Internal Revenue Code of 1986, as amended), a Reserve Fund in an amount equal to
the least of ten percent (10%) of the principal amount of the Bonds or Maximum Annual Debt Service
on the Bonds or 125% of Average Annual Debt Service on the Bonds (as those terms are defined below)
will be established from the proceeds of the sale of the Bonds. The Reserve Fund shall be maintained,
used, transferred, reimbursed and liquidated as follows:
(a) Whenever there are insufficient funds in the Redemption Fund to pay the next maturing
installment of principal of or interest on the Bonds, an amount necessary to make up such deficiency shall
be transferred from the Reserve Fund to the Redemption Fund. The amounts so advanced shall be reim-
bursed from the proceeds of redemption or sale of the parcels for which payment of delinquent
installments of assessments and interest thereon has been made from the Reserve Fund.
(b) In the event an unpaid assessment is paid in cash in advance of the final Bond maturity
date, the City is required to credit such Prepaid Assessment with a proportionate share of the Reserve
Fund, thus reducing the total amount of the Reserve Fund. The amount to be so credited is ten percent
(10%) of the original amount of the assessment being prepaid (Le., the original pro rata amount deposited
in the Reserve Fund).
(c) In the event that, after completion of the Project and payment of all claims from the
Improvement Fund, the City determines to use all or part of any surplus remaining in the Improvement
Fund to call Bonds (thereby reducing outstanding assessments and subsequent assessment installments),
the City is required to cause the Reserve Fund to be reduced pursuant to the Bond Law to assure that the
Bonds will not become subject to federal income taxation.
(d) Interest earned on permitted investments of Reserve Fund moneys shall remain in the
Reserve Fund to maintain it at an amount equal to the lesser of (i) the Maximum Annual Debt Service
on the Bonds, (ii) ten percent (10%) of the principal amount of the Bonds outstanding, or (iii) 125 % of
Average Annual Debt Service on the Bonds (the "Reserve Requirement"). The term "Maximum Annual
Debt Service on the Bonds" means the sum of (I) the interest falling due on then outstanding Bonds,
assuming that all then outstanding Bonds are retired as scheduled, and (2) the principal amount of then
outstanding Bonds falling due by their terms, all as computed for the twelve-month period ending Septem-
ber 2 in which such sum is largest. The term "Average Annual Debt Service on the Bonds" means the
average of such sum during the term of the Bonds. The Treasurer shall determine if there is any amount
in the Reserve Fund in excess of the amount required to be maintained therein as of June 30 of each year,
and shall transfer any such excess to the Redemption Fund by July 15 of such year in the manner provided
in Part 16 of the 1915 Act.
(e) Any excess in the Reserve Fund transferred by the Treasurer to the Redemption Fund
shall be used to advance the maturity of Bonds or credited towards unpaid assessments each year during
which any part of the Bonds remain outstanding. The auditor's record prepared pursuant to Section 8682
of the Bond Law shall reflect credits against each of the unpaid assessments in the manner provided in
Section 10427.1 of the Bond Law in amounts equal to each assessment parcel's proportionate share of any
Reserve Fund disbursement.
(t) Except as provided above, no Reserve Fund disbursement shall be made in any year in
excess of the amount which would cause the Reserve Fund to fall below the Reserve Requirement.
(g) All sums remaining in the Reserve Fund in the year in which the last installments of the
assessments become due and payable shall be credited toward the assessments as follows:
- 12-
Prior to June 30th of the fiscal year next preceding the fiscal year in which the last unpaid
assessment installment becomes due and payable, the City shall determine the amount remaining
in the Reserve Fund, if any, after all sums advanced and interest thereon have been reimbursed,
and shall order same to be distributed and/or credited in the manner set forth in Section 10427.1
of the Bond Law, provided only that where all or any part of such assessments remain unpaid and
are payable in installments, the amount apportioned to each parcel shall be credited against the
last unpaid assessment installment, then such excess shall be credited against the next to last
unpaid assessment installment.
The need to make advances from the Reserve Fund may result in its total depletion prior to
reimbursement from resales of property or delinquency redemptions. In that event, there could be a delay
in payments to owners of the Bonds.
In the event there are insufficient funds to pay in full the amount owing and unpaid upon the
Bonds, and the City Council determines that such shortage of funds will, in all likelihood, not be
corrected (through sale or redemption of property), then the payment of such principal and interest shall
be made ratably to the aggregate of such principal and interest then due without preference or priority of
principal over interest, or of interest over principal, or of any installment of interest over any other
installment of interest.
Covenant for Superior Court Foreclosure
In the event of delinquency in the payment of any installment of an unpaid assessment, the City
Council is empowered to order institution of an action in the Superior Court of the State to foreclose the
lien of such delinquent assessment, as authorized in the 1915 Act. In such action the real property subject
to the delinquent unpaid assessment may be sold at judicial foreclosure sale.
A judgment debtor (property owner) has 140 days from the date of service of the notice of levy
in which to redeem the property to be sold. If a property owner fails to so redeem and the property is
sold, his only remedy is an action to set aside the sale which must be brought within 6 months of the date
of sale. If, as a result of such an action, a foreclosure sale is set aside, the judgment is revived and the
judgment creditor is entitled to interest on the revived judgment as if the sale had not been made. The
constitutionality of the aforementioned legislation (which repeals the one-year redemption period) has not
been tested and there can be no assurance that, if tested, such legislation will be upheld.
Although judicial foreclosure proceedings are not mandatory, pursuant to the Bond Indenture, the
City will covenant with the registered Bondowners that it will cause to be commenced, and thereafter
prosecuted, court foreclosure proceedings upon any parcel against which there is a delinquent unpaid
assessment (plus costs, penalties and interest), as authorized by law. The Covenant provides that such
foreclosure proceedings shall be commenced within 150 days following the date of such delinquency and
that it will be diligently prosecuted to final judgment and sale. Commencement of such foreclosure
proceedings may be deferred by the City, however, if funds are advanced to the Reserve Fund sufficient
to maintain the Reserve Fund in amount equal to the Reserve Requirement.
In the event a Superior Court foreclosure or foreclosures are necessary, there could be a delay
in payments to owners of the Bonds pending prosecution of the foreclosure proceedings and receipt by
the City of the proceeds of the foreclosure sale. It is possible that no bid would be received at the fore-
closure sale, and in such event there could be additional delay in payment of the principal of and interest
on Bonds or such payment may not be made in full.
- 13 -
See the section entitled "SPECIAL RISK FACTORS - Price Realized Upon Foreclosure" for a
discussion of the certain circumstances under which property to be sold upon foreclosure may be sold for
less than delinquent installments of principal and interest of an assessment.
- 14-
THE ASSESSMENT DISTRICT
Description of Project
The City has undertaken to conduct assessment district proceedings to provide for the acquisition
of certain public improvements for the benefit of land within the Assessment District. The public
improvements to be financed through these assessment district proceedings are the acquisition of public
works, including water systems for the EastLake Greens Phase I area and adjacent areas and for the
Olympic Training Center, reclaimed water facilities for EastLake Greens Phase I and major service lines
to other areas in the EastLake development, full sewer service facilities to EastLake Greens Phase I and
major sewer mains to adjacent areas and the Olympic Training Center, street and storm drain
improvements for EastLake Greens Phases I and II and adjacent areas, and related improvements, together
with appurtenances and appurtenant work and incidental costs and expenses related thereto (collectively
referred to as the "Project"), all as more completely described in the Engineer's Report. For a more
complete description of the work to be acquired constituting the Project, see the section below entitled
"Method of Assessment."
The Project is to be acquired pursuant to the Acquisition Agreement. See the subsection entitled
"The Acquisition Agreement." Project work has been accomplished by the Landowner-Developer,
EastLake Development Company, hiring various management personnel and subcontractors for grading
and construction work.
Location and Terrain
Situated in the eastern part of the City east of Interstate 805 and west of Otay Lake, the
Assessment District is irregular in shape, and generally bounded to the north by EastLake Hills, EastLake
Shores and EastLake Business Park - Phase I and to the south by Orange Avenue, and is located on
properties commonly referred to as the EastLake Greens, Trails, Woods, Vistas, Olympic Training Center
and Business Center (Phase II). Total Assessment District area is approximately 2,112 acres, all within
the city limits of the City.
The Assessment District is hilly in terrain. Construction began on EastLake Greens, EastLake's
third residential neighborhood, in the Fall of 1989. Build-out is expected to occur over the next six years.
Planning on EastLake Trails has begun with completion of construction projected into the mid 1990s.
EastLake Vistas and Woods and Phase II of the Business Center are part of EastLake Phase III. These
areas have been annexed to the City and are part of the approved General Development Plan.
Development is scheduled for the mid to late 1990s. In addition, the warm weather Olympic Training
Center is currently under construction on a 150 acre parcel located within the Assessment District.
Summary of Assessment Procedure
Pursuant to the proceedings being used by the City for formation of the Assessment District, all
costs are either estimated or ascertained prior to doing the work or making the acquisition of the
improvements or property involved. Under such proceedings, the assessments are then levied, cash
collections of the assessments made (the "Cash Collections") and Bonds sold to represent unpaid assess-
ments. The money obtained from Cash Collections, if any, and Bond proceeds are used by the City to
pay for the acquisition of public improvements, for the property or rights of way to be acquired and for
incidental expenses.
Proceedings can be initiated by either a petition or by the City Council without a petition. The
Assessment District was initiated by a petition of EastLake Development Company, the Landowner-DeveI-
- 15 -
oper, and by Western Salt Company. The City and the Landowner-Developer then entered into the
Acquisition Agreement establishing the terms for acquisition of the public improvements by the City.
Thereafter, the Landowner-Developer caused the improvements to be constructed pursuant to the terms
of the Acquisition Agreement. After commencement of construction of the improvements constituting the
Project, the Assessment Engineer prepared a written report (the "Engineer's Report") which contains,
among other things, the estimate of Project costs and the assessment for each parcel to be benefitted. The
total amount of the proposed assessment was based upon the engineer's estimated cost of the Project. The
individual assessments were spread among the various parcels of land within the Assessment District on
the basis of the special benefit to be derived by each parcel from the Project. (See the "Method of
Assessment" herein.)
The Engineer's Report was filed and preliminarily approved by the City Council of the City on
December 18, 1990. Thereafter, notice was published in a local newspaper designated by the City
Council for that purpose. Notice was also posted along all of the open streets within the Assessment
District. In addition, notice of the proposed assessment was mailed to each of the owners whose property
was proposed to be assessed.
The notices advised the property owners of the filing of the preliminary Engineer's Report, the
date, time and place for the public hearing on the Project, the proposed assessments and the right to
protest. The mailed notice also advised the property owners of the precise amount proposed to be
assessed against their properties, as shown in the preliminary Engineer's Report.
Property owners had the right to file written protests prior to or at the commencement of the
hearing and to be heard at the hearing. No written protests were filed by any of the owners of land
located within the District.
A public hearing on these matters was held by the City Council of the City on January 22, 199 I.
At the conclusion of the hearing, the City Council, after making any necessary modifications and
overruling protests, adopted resolutions confirming the assessments, overruling protests and ordering the
work. Confirmation and recordation of the Assessment Diagram in the Office of the Superintendent of
Streets and filing with the County Recorder have occurred, and the assessments have become liens against
the various assessed parcels. The property owners have been given published and mailed notice of the
opportunity to pay all or a portion of the assessment in cash within 30 days of the recording of the
assessment (the "Cash Collection"). The notice further advised the property owners that if a cash payment
is not made, Bonds would be sold to represent unpaid assessments. The cash payment period ended
February 22, 1991. Any property owner who paid an assessment during the Cash Collection period was
entitled to a reduction in the amount of such assessment equal to that portion of the assessment that would
otherwise be used for any underwriter's discount, and for the funding of the Reserve Fund. However,
no such payments were made and Bonds are being issued in the full amount of assessments levied.
Modifications to the Engineer's Report, essentially decreasing certain assessments and the total amount
of the assessment requested and consented to by affected property owners, were approved by the City
Council of the City on July 9, 1991.
Environmental Review
Final Supplemental Environmental Impact Report No. 86-4, (EastLake Greens SPA Plan and
EastLake Trails Pre-Zone and Annexation), and Final Supplemental Environmental Impact Report No.
89-11 (EastLake III/Olympic Training Center) for the area in which Assessment District No. 90-3 is
located have been completed and were certified by the City Council of the City and became final in June,
1989 and October, 1989, respectively, all in compliance with the California Environmental Quality Act
("CEQA") (Public Resources Code, Section 21000 et. seq.), as amended, the State CEQA Guidelines and
the City's own local CEQA guidelines.
- 16-
Method of Assessment
The law requires and the statutes provide that assessments, as levied pursuant to the provisions
of the 19 \3 Act, must be based on the special benefits that the properties receive from the works of
improvement. The statute does not specify the method or formula that should be used in any special
assessment district proceedings. The initial responsibility for the identification of such method or formula
rests with the Assessment Engineer, who is retained for the purpose of making an analysis of the facts
and determining the correct apportionment of the assessment obligation. For these proceedings, the City
retained the services of Willdan Associates, San Diego, California.
The Assessment Engineer makes its recommendation at the public hearing on the Assessment
District, and the final authority and action rests with the City Council after hearing all testimony and
evidence presented at that public hearing. Upon the conclusion of the public hearing, the City Council
must take the final action in determining whether or not the assessment spread has been made in direct
proportion to the benefits received. Such action has now been taken and the assessment has now been
confirmed in these proceedings.
In allocating or "spreading" the costs of the Project, it is first necessary to identify the benefit that
the public improvements will render to the properties within the boundaries of the Assessment District.
In further making the analysis, it is necessary that the property owners receive a special and direct benefit
as distinguished from a benefit to the general public.
The overall benefit derived by the properties within the boundary of the Assessment District is
construction of the public improvements, which will enable the properties to develop. The Public
improvements include a water system, a sewer system, a reclaimed water line, dry utilities and street
improvements. The properties within the Assessment District boundary are currently undeveloped.
Because of the interrelationship of the various public improvements needed for future development, the
assessment district funding and acquisition mechanism is an efficient way to fund, construct and acquire
the improvements.
The lands located within the Assessment District participating in the costs of the improvements,
in whole or in part, are the properties commonly referred to as EastLake Greens, Trails, Woods, Vistas,
Olympic Training Center, and Phase II of the EastLake Business Center. Residential land uses in these
areas include residential estate, single family, condominium and multifamily units. Nonresidential uses
include commercial, industrial, public, quasi-public and a golf course to be located in EastLake Greens.
Master facility plans/studies prepared by NBS Lowry, an engineering and planning firm of Rancho
Bernardo, California, for water, wastewater and reclaimed water were used as a basis for the spread
methodology developed by the Assessment Engineer. Use factors established by these various studies
were incorporated into the spread formula.
Water Svstem. The water facilities funded in the Assessment District constitute two separate
systems. The 710 pressure zone system will provide water service to the Olympic Training Center and
the 980 pressure zone system will provide service to all other areas within the EastLake development.
The 710 system facilities benefit the Olympic Training Center exclusively, therefore the cost for these
facilities was spread to the Olympic Training Center only. (The system was designed for use by both
offsite sources and the Olympic Training Center. However, only the minimum pipe sizes required by the
EastLake development alone are funded in this Assessment District.) Additional facilities are required
in the 710 system in order to provide full service to the Olympic Training Center. Such additional
facilities are planned to be funded through future assessment districts as the construction is planned and
completed.
- 17 -
The 980 water system facilities to be acquired through the Assessment District will extend full
water service to the Greens I area of the EastLake development, as well as provide major trunk lines to
the remaining areas. This "backbone water system" is the complete network of water mains that will
provide equivalent water access to the Greens, Woods, Vistas, Trails and Business Center Phase II. In
the Assessment District, the cost for this entire backbone system is spread to the benefitting properties
by a water demand factor. However, the entire backbone system is not being constructed at the present
time. The cost of the future facilities is credited back by the same water demand factor to those areas
which do not receive 100% service. Those areas are EastLake Greens Phase II, Business Center Phase
II, Woods, Trails and Vistas. EastLake Greens Phase I is the only area that is receiving 100% service
and is therefore the only area not receiving any such credit.
Reclaimed Water ImDrovements. The reclaimed water facilities acquired through the Assessment
District will extend full reclaimed water service to EastLake Greens Phase I, as well as provide the major
service lines to the remaining areas within the EastLake development. This ultimate reclaimed water
system will provide a source of irrigation water for the parks, schools and open space areas within the
EastLake development including the golf course and Olympic Training Center. The cost for the ultimate
reclaimed water system is spread to the developments that benefit from the irrigated areas in proportion
to the average demand of that area. For instance, private facilities, like the golf course and the Olympic
Training Center, will bear the entire cost of their proportion of the reclaimed water system, whereas the
regional park cost will be spread to the entire residential community. A credit analysis has been utilized
since the entire system is not being constructed at the present time. The cost of the facilities to be
constructed in the future are credited back by the same water demand rate to those areas that are not
receiving 100% service. Those areas are EastLake Greens Phase II, Woods, Vistas, Trails, Business
Center II and the Olympic Training Center. EastLake Greens Phase I is the only area that is receiving
100% service and is therefore the only area not receiving any credit. This method of assessing and
crediting back the cost of facilities not yet constructed ensures that each parcel is assessed for its
proportionate share of the entire system. The additional reclaimed water facilities to be constructed are
planned to be funded in future assessment districts.
Waste Water ImDrovements. The waste water facilities acquired through the Assessment District
will provide full sewer service to EastLake Greens Phase I, as well as provide major sewer mains to the
Greens Phase II, Woods, Vistas, Trails, and Olympic Training Center development areas. For assessment
purposes, the system was divided into two separate drainage areas, the Telegraph Canyon Basin and the
Salt Creek Basin. The Telegraph Canyon Basin system serves the Business Center and most of the Greens
development. The Salt Creek System serves the Woods, Vistas, Trails, Olympic Training Center and
portions of the Greens. At present there are no gravity sewer outlets within the Salt Creek Basin. The
construction of a long-term sewage outlet is currently under investigation by the City of Chula Vista and
the EastLake Development Company. In the interim, the waste water within the Salt Creek Basin will
be pumped to the existing trunk sewer in Telegraph Canyon due to the availability of excess capacity in
this line. In accordance with the agreement between EastLake Development Company and the City of
Chula Vista, the Salt Creek pump station cost is assessed to the benefitting properties at a cost/EDU that
does not exceed the expected costlEDU of EastLake's share of the future Salt Creek Basin gravity line.
The cost of transmission lines and pump station within both the Telegraph Canyon and Salt Creek Basins
are spread to the benefitting properties by Waste Water Flow Factors.
Street and Storm Drain ImDrovements. Those streets and associated storm drain facilities acquired
through the Assessment District are of specific benefit to EastLake Greens Phase I and EastLake Greens
Phase II. These streets are designed in conjunction with major backbone streets which are under the
Chula Vista Development Impact Fee ("DIF") program. (See the following section entitled "Development
Impact Fees. ") The non-DIF streets to be acquired through the Assessment District are North Greensview
Drive, Masters Ridge Road, Greensgate Drive, and Clubhouse Drive. The cost of these streets, and
associated landscaping and storm drain facilities, is spread to the benefitting properties using an average
- 18 -
daily traffic (ADT) trip generation factor. The storm drain facilities funded are an integral part of the
street network used to divert water from the street surface for safe travel. Therefore, the cost of storm
drains is spread with the cost of streets using an ADT factor. These factors are based on land use and
provide a uniform method of spread based on computer modeling by the San Diego Association of
Governments.
Street Imvrovements Elieible for Develovment Imvact Fee Credit. EastLake Parkway and Hunte
Parkway, both four lane major streets, are two of a number of major streets required to be widened or
constructed to provide a circulation system which will accept the cumulative number of trips generated
by new development in the eastern area of the City of Chula Vista. Through the construction of these
streets, another link in the overall major street network is completed, providing additional capacity in the
overall circulation network.
EastLake Parkway and Hunte Parkway, together with other major streets, are included within the
City's Development Impact Fee ("DlF") program, a program for financing the major streets in the eastern
area as described in the following section. The benefit to the properties within this program is that
through each property's participation, it attains its share of capacity in the eastern area circulation street
system. Since EastLake Parkway and Hunte Parkway are a part of this program, the same methodology
used in the formulation of the DlF program is used in the Assessment District. The assessment levied
against each such assessed parcel equals the amount of the DlF.
A portion of the storm drain construction costs were not eligible for DlF credits and are included
in the non-DIF street improvement spread in the Assessment District.
Incidental Costs. The cost of incidentals has been spread proportionately over the various
improvements in the direct proportion that the improvement bears to the total cost of improvements.
Development Impact Fees
In 1988 the City enacted an ordinance providing for a Development Impact Fee ("DlF") to finance
major transportation (street) improvements to its rapidly developing "East Territories" area east of Inter-
state 805, which includes Assessment District No. 90-3. Future development was analyzed according to
traffic generation and all classes of such development were defined in Equivalent Dwelling Units
("EDU"). The fee per EDU was determined by dividing the total estimated cost of required facilities by
total EDU.
Developers may pay the DlF in cash or build required transportation facilities and receive a DlF
credit. EastLake Development Company and other owners of land within the Assessment District have
constructed approximately $5,815,373 DlF facilities (as shown in the Engineer's Report) which are being
acquired by the City in this assessment proceeding.
Additional DlF obligations of the Landowner-Developer will occur as other City designated DlF
streets are constructed as part of EastLake. Parcels within the Assessment District benefitted by such
additional street improvements may therefore be assessed in future proceedings (or the Landowner-Develo-
per may simply pay the DlF to the City). See the section of this Official Statement entitled "SECURITY
FOR THE BONDS - Estimated Lien Ratios."
Land Use and Zoning
The Assessment District area is covered by the City's General Plan, and as a Sectional Planning
Area. The land located within the Assessment District is zoned Residential, Commercial, Retail, Office
and Industrial. As a planned community, EastLake zoning is not implemented by strict application of such
- 19 -
standard classifications but rather through the use of comprehensive planning such as Planned Community
Zoning Districts.
A substantial portion of the land within the Assessment District is unimproved and part of the land
has been graded with pads and other improvements installed. Construction of residences is occurring in
EastLake Greens, Phase I. A substantial portion of developed land may be built upon in the future. For
additional information on proposed land use, see the section entitled "Land Ownership and Future
Development" below.
The Acquisition Agreement
California law authorizes the financing and construction of public improvements by a private party
and the acquisition by a public agency of such improvements. EastLake Development Company, as the
landowner/developer in the Assessment District, in order to proceed in a timely manner, has constructed
such public improvements and has entered into an amended agreement, dated December 18, 1990, with
the City (the "Acquisition Agreement") for purchase by the City of title to all of the improvements
constituting the Project, including reimbursement to EastLake Development Company for costs of
incidental expenses for preparation of plans and specifications and engineering services. The Acquisition
Agreement further provides that upon sale of the Bonds, proceeds will be paid for the Project pursuant
to written instructions executed by all persons having an interest in the land located within the Assessment
District.
Land Ownership and Future Development
The following specific information regarding ownership of assessed parcels in the Assessment
District has been provided by the respective owners of such parcels. This information is included because
it may be relevant to an informed evaluation of the Project and the security for the Bonds. However, no
assurance can be given that ownership of one or more of such parcels will not be changed or that the
projects planned by such owners will occur. See the section of this Official Statement entitled "SPECIAL
RISK FACTORS - Future Land Development." This information should not be construed to suggest that
the Bonds or the assessments securing the Bonds are personal obligations of the property owners or the
developers.
The Assessment District is comprised of 397 parcels, 203 of which are owned by EastLake
Development Company (the "Landowner/Developer"), by Western Salt Company under contract to sell
to EastLake Development Company, or by Custom Homes Partners, Ltd., a partnership in which
EastLake is the limited partner. (25 parcels have been assigned a zero assessment and three such parcels,
Nos. 1, 3 and 5 are divided into other assessment parcels.) This direct and indirect ownership by
EastLake represents some 1,880 acres of an Assessment District total of 2, 112 acres, which are assessed
approximately $18,946,846 of the total assessment of $22,352,427. See the section of this Official
Statement entitled "SPECIAL RISK FACTORS - Concentration of Property Ownership" for a discussion
of the potential risks resulting from such concentration of ownership.
EastLake DevelolJment ComlJanv of Chula Vista, 900 Lane Avenue, Suite 100, Chula Vista, California
91914, (619)421-0127, is the major developer and property owner of the EastLake Master-Planned
Community and is a California partnership whose general partners are Daniel V, a California corporation,
David V, a California corporation, and Boswell Properties, Inc., a California corporation. Daniel D.
(Ron) Lane is the principal shareholder in Daniel V, and one of the principals and chairman of the Board
of Lane/Kuhn Pacific, one of the residential developers of EastLake Planned Community. Mr. Lane
received a Bachelor of Arts degree in real estate from the University of Southern California in 1956 and,
for the past 29 years, has been the owner and president of three Lan Ron Companies. These companies
have been engaged in the development of thousands of single family homes since 1960. David B. Kuhn,
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Jr. is the principal shareholder of David V, and is one of the principals and president of Lane/Kuhn
Pacific. Mr. Kuhn graduated with top honors from the United States Military Academy at West Point
in 1965. Mr. Kuhn was with the Irvine Company for over seven years and was responsible for many of
the larger commercial/industrial developments on the 80,000 acre Irvine Ranch in south Orange County,
California. Boswell Properties, Inc., a wholly-owned subsidiary of Boston Ranch Company, which is
owned by J.G. Boswell Company, invests in real estate development. The LG. Boswell Company is a
large agribusiness concern engaged primarily in the production of cotton, with real estate holdings and
operations in the southwest United States and Australia. The J .G. Boswell Company has had extensive
experience in community development including Sun City in Arizona (in conjunction with the Del E.
Webb Company).
Western Salt Comvanv, 7220 Trade Street, P.O. Box 149, San Diego, CA 92112, (619) 566-6600, is a
California corporation, which acquired the 3,073 acre lanal Ranch (of which the Assessment District is
a part) in the mid 1920's for agricultural purposes. Western Salt Company has been owned by H.G.
Fenton Material Company since 1922 and specializes in the production of salt in San Diego County.
Using a natural solar evaporation process, Western Salt harvests some 65,000 tons of salt annually. H.G.
Fenton Material Company is one of the oldest and largest aggregate suppliers in San Diego with roots
dating back to 1906, and is one of the larger private landowners in the San Diego area. The company
employs nearly 600 people, all in San Diego, and, in addition to Western Salt Company, owns companies
with interests in real estate, topsoil, concrete, and transportation.
Western Salt Company currently owns approximately 1,552 acres (some 74%) of the land located
within the Assessment District. Approximately 38% of the total assessment in these proceedings is levied
on lands owned by Western Salt Company. Western Salt Company has agreed to retain ownership of such
lands within the EastLake development, including those located within the Assessment District, until such
time as needed for development by EastLake Development Company and has entered into an agreement,
effective through 1994, whereby EastLake is obligated to pay all taxes and assessments on all such
optioned land during the term of the agreement. Under the provisions of the agreement, EastLake
Development Company has until December 31, 1994 to give Western Salt Company notice of an intent
to exercise its option to purchase, and until January 31, 1995 to purchase those lands currently owned by
Western Salt Company. These dates could be extended by mutual agreement of the parties. Absent any
such extension(s) of time, it is EastLake's present intention to exercise its option in a timely manner.
The EastLake Develovment
EastLake Master-Planned Community ("EastLake") consists of 3,230 acres and is currently one
of the largest master-planned communities in San Diego County and, when completed, the composition
of the community is planned to include approximately 8,900 homes, 274 acres of industrial land, more
than 103 acres of commercial/office/retail uses and over 1,100 acres of parks, recreational facilities and
open space. EastLake is planned to have a population of approximately 22,000 at the completion of the
20 year development program, which began in 1985.
EastLake's master plan includes eight thematically individual neighborhoods. Each neighborhood
is planned to consist of distinct architectural styling, as well as amenities designed especially for each
area. For example, EastLake Hills features country French and English style living. Amenities include
a 13 acre swim/tennis club and school complex. EastLake Shores has a distinctive water-oriented
lifestyle, featuring Mediterranean and Cape Cod architecture and including a 21.5 acre manmade lake and
beach club facility, and the 823 acre EastLake Greens neighborhood will feature country club style living
with homes built around an 18-hole championship caliber golf course.
EastLake is classified as EastLake I, EastLake II and EastLake III. EastLake I (the initial phase
of EastLake) was built over a five year period, which began in 1985. This phase consists of 876 acres,
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_ ~___"____' .~_______ ...w _______._~m.._
including the first two residential neighborhoods known as EastLake Hills and EastLake Shores, where
1,823 homes have been built and sold. Residential sales for EastLake I started in April of 1986 with the
last unit being sold in June of 1990.
Also included in EastLake I is the EastLake Business Center, consisting of approximately 274
acres, and the EastLake Village Center, which when complete is planned to consist of 34 net acres of
commercial/retail/office space and approximately 405 apartment units. The EastLake Business Center is
complete and offers approximately 120 net acres of industrial property. To date, facilities range from
incubator industrial space to a 380,000 square foot United Parcel Service distribution center. Current
occupants in the Business Center include United Parcel Service, Creaser Price Insurance, Willig Freight
Lines, Nellcor, Kaiser Permanente and North Island Federal Credit Union.
EastLake Village Center, a 60 acre mixed-use commercial center, is planned to have retail, office,
medical, institutional and entertainment areas, as well as multi-family housing. The Village Center
contains developed lots for office (13 acres), commercial/retail (22.3 acres) and multi-family (18 acres)
uses. Phase I will comprise 15 acres and approximately 158,000 square feet of retail/commercial space.
It will also include approximately 405 apartment units. Phase II will include additional retail/commercial
uses and development of up to three mid-rise office buildings. Civic uses planned include a transit center
and a library.
The second phase of EastLake, EastLake II, consists of approximately I, ISO gross acres and
includes two additional neighborhoods, EastLake Greens and EastLake Trails, and the southern portion
of the EastLake Village Center. The EastLake Village Center is discussed above. EastLake Greens and
Trails is discussed in the following subsection.
A third phase of EastLake, EastLake III, has been annexed to the City and has an approved
General Development Plan. Currently, the property described as EastLake III is owned by Western Salt.
The EastLake Development Company intends to purchase this land from Western Salt no later than
December 21, 1994. When developed in the mid to late 1990's, EastLake III is planned to include two
additional residential neighborhoods (EastLake Vistas and EastLake Woods) and Phase II of the EastLake
Business Center. In addition, the first warm weather Olympic Training Center in the United States is
being constructed on a ISO acre parcel ofland leased by Western Salt Company to the San Diego National
Sports Training Foundation, working in conjunction with the United States Olympic Committee. (When
EastLake purchases this land from Western Salt in 1994, the land is to be donated to the Foundation.)
The EastLake master plan depends heavily on the creation and development of planned open space
and park and recreation facilities. Existing and planned open space and park and recreation facilities
include six neighborhood parks within EastLake I including major recreational facilities: EastLake Hills
Swim and Tennis Club, a private 2.8 acre park with a junior Olympic swimming pool, spa, children's
play area, picnic area and lighted tennis courts; EastLake Shores Beach Club, a private park with 21.5
acres, including a 13 acre lake, boat launching and fishing facility, swimming lagoon, sand beach with
volleyball and picnic facilities, meeting facilities and restrooms; three neighborhood parks include
Ashbrook Park, Shorebird Park and Cobblestone Park; and 7 acre Scobee Park in the EastLake Business
Center, an employee recreation and fitness center with softball, soccer, basketball and volleyball areas,
restroom and locker facility, picnic area and par course.
Within EastLake Greens, EastLake Community Park, a 13 acre Chula Vista community park, will
be created adjacent to the future EastLake High School. An additional II acre park site adjacent to the
elementary school site is planned. Both parks will include lighted softball and soccer fields, children's
play apparatus and picnic areas. In addition, three private 3 to 4 acre neighborhood parks will be
developed in the EastLake Greens neighborhood.
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At the present time, two schools are operational or being built in EastLake. EastLake Elementary
School in EastLake Hills, which is adjacent to the Swim and Tennis Club facilities and a neighborhood
park, opened in May 1990. The four-year development program on EastLake High School has begun.
Grading was completed on the site in summer 1989, with building construction begun in Fall 1990. The
first phase of the four-year high school will include 43 teaching stations that will accommodate 1,200
students with classes scheduled to start in Fall 1992. Phase II is expected to be complete by Fall 1994
and will increase enrollment capacity to 2,400.
EastLake Greens and Trails
EastLake Greens is proposed to include a variety of housing, ranging from conventional single-
family homes to stacked units. Approximately 2,774 residences are planned for the EastLake Greens
neighborhood, ranging in price from $100,000 to $600,000. A 160 acre, 18 hole golf course, designed
by Ted Robinson, winds through the residential area of EastLake Greens, providing a major visual and
recreational amenity. In addition, neighborhood parks, a community park, a high school and elementary
school, and a 15th acre neighborhood shopping center are proposed. Construction began on EastLake
Greens Phase I in the Fall of 1989 and home sales began February I, 1991. By mid-June 1991, 250
homes were under construction or completed and contracts had been signed with home buyers for 150 of
these with escrow having closed on some sales. Home sales prices have ranged from approximately
$180,000 to over $600,000, with an average of approximately $230,000. Build-out of the neighborhood
is planned to occur over a six year period.
Phase I of EastLake Greens is planned to include seven home types, utilizing some five builders,
and an exclusive gate-guarded custom lot project. The balance of EastLake Greens will be phased in over
a five to six year period and is planned to include more than 12 home types.
The golf course opened for play, following a complete growing season, on June 22, 1991, with
the 13,000 square foot clubhouse facilities designed by Robert Alteavers, proposed to open in early 1992.
Initially, the golf course will be open for public play.
Planning on EastLake Trails has commenced. The neighborhood is expected to be started in the
mid-1990's.
EastLake Community Park, a 13 acre major Chula Vista public community park, as well as
another II acre public neighborhood park will be included in EastLake Greens for use by the public and
by EastLake Greens residents. EastLake Community Park will start construction in the Fall of 1991 with
completion of the ball fields and community center scheduled for mid-1992. The II acre public park is
planned for construction in 1993. Three additional neighborhood parks, Augusta Park (completed),
Country Club Park and South Park, will be owned and maintained by the EastLake II community
association for use exclusively by Eastlake Greens residents. A community trail system, which presently
includes off-street trails and special landscaping, will link EastLake Greens with the community's first
two neighborhoods, EastLake Hills and EastLake Shores.
As previously discussed, construction on the 48.6 acre EastLake High School was begun in Fall
1990. Plans also call for a second elementary school to be built on a 10 acre site in EastLake Greens.
The Owner-Builders
Century American Corooration, 1428 East Chapman Avenue, Orange, CA 92666, (714) 770-
7707, is a southern California real estate developer concentrating on sites in large master-planned
communities, producing 300-400 residential units per year. Projects are located in Orange, Riverside,
Los Angeles, and San Diego Counties, and have involved some $157,500,000 since 1979. Roger C.
- 23 -
Hobbs is president of the corporation, as well as R. C. Hobbs Development Company, Hobbs Construction
Company and La Cuesta Management Company.
Century American owns Assessment Parcels Nos. 12 through 119 (Fairway Ridge) and Nos. 120
through 127 (Fairway Villas). Century American plans to build two home products within EastLake
Greens. Fairway Villas is to consist of 158 single family attached townhomes in four floor plans.
Fairway Ridge will include 96 executive single family detached homes. Both products will be situated
in close proximity to the golf course.
Custom Homes Partners. Ltd., 900 Lane Avenue, Suite 100, Chula Vista, CA 92013, (619) 421-
0127, is a California limited partnership comprised of David S. Minter Co., a California corporation, as
General Partner, and EastLake Development Company, as Limited Partner.
Custom Homes Partners, Ltd. owns Assessment Parcels No. 144, 145, 154 and 155 and initially
has built four custom homes in the project called Augusta Place. EastLake Development Company also
has available 36 additional lots for sale to individuals wishing to construct custom homes.
Davidson Communities, 12520 High Bluff Drive, Suite 300, San Diego, California 92130, (619)
481-8500, is a San Diego based corporation, founded in 1978, specializing in residential housing projects
primarily in San Diego County. Projects include Alcala de Rancho Santa Fe, Blackhorse La Jolla and
Sienna Canyon in Encinitas, California.
Davidson Communities owns Assessment Parcel No. 175. Davidson Communities plans to
construct 105 single family detached, two-story homes called Maracay at EastLake Greens. Nearly 50
percent of these homes will feature golf course frontage.
Fieldstone Communities. Inc., 5465 Morehouse Drive, Suite 250, San Diego, CA 92121, (619)
546-8081, a San Diego based California corporation, is one of the highest ranked homebuilders in San
Diego County. Fieldstone is noted for projects which attract campouts of interested home buyers.
Fieldstone Communities, Inc., owns Assessment Parcels No. 335 through 397, and Nos. I and
2. Fieldstone Communities, Inc. is planning to build 147 single family detached homes called Fieldstone
Tamarisk at EastLake Greens.
Lane/Kuhn Pacific Homes, 14 Corporate Plaza, Newport Beach, CA 92660, (714) 640-5251, the
homebuilding sister company of EastLake Development Company, is a California general partnership
comprised of Daniel VI, Inc., David VI, Inc., and Boswell Properties, Inc.. These are substantially the
same general partners as those of EastLake Development Company and are described previously in this
section.
Lane/Kuhn Pacific Homes Limited Partnership No. I (with Lane/Kuhn Pacific Homes as a
General Partner and EastLake Development Company as a Limited Partner) owns Assessment Parcels
Nos. 3(177-322) and 5(323-334). Lane/Kuhn will construct two home products within EastLake Greens.
The Masters Collection at EastLake Greens is to include 214 duplex homes in four floor plans. The
Vintage at EastLake Greens is to consist of 142 detached homes in four floor plans.
Prior Assessments and Community Facilities District Special Taxes
The assessment (and any reassessment) and each installment thereof and any interest and penalties
thereon constitute a lien against the lots and parcels of land on which they were imposed until the same
are paid. Such lien is subordinate to all fixed special assessment and/or Community Facilities District
special tax liens previously imposed upon the same property, but has priority over all existing and future
- 24-
private liens and over all fixed special assessment liens which may thereafter be created against the
property. Such lien is coequal to and independent of the lien for general taxes and Community Facilities
District special taxes.
The City reports that there are outstanding special assessment liens and special taxes previously
levied on property located within the Assessment District. A prior 1913/1915 Act assessment proceeding
for Assessment District 85-2 (EastLake) resulted in the levy of assessments against some of the parcels
located in the Assessment District which are included as Estimated Prior Assessments shown in the Table
of Assessments and Estimated Lien Ratios in the section entitled "SECURITY FOR THE BONDS -
Estimated Lien Ratios." In addition, two prior Community Facilities Districts, Nos. I, resulted in the
imposition of special taxes on each of the parcels located in the Assessment District which are included
as Estimated Prior Special Taxes shown in the Table of Assessments and Estimated Lien Ratios. The
prior assessments and special taxes are combined with the assessments levied in these proceedings for
Assessment District No. 90-3 in calculating the lien ratios on such parcels.
Potential future special assessment and Community Facilities District Special Tax debt and the
resulting tax liens are discussed in the section of the Official Statement entitled "SECURITY FOR THE
BONDS - Estimated Lien Ratios," and "SPECIAL RISK FACTORS - Parity Taxes and Special Assess-
ments. "
Tax Delinquency
As of July 8, 1991, all property taxes upon land located within the Assessment District had been
paid in full and no tax delinquencies existed.
Assessment Diagram
A copy of the Assessment Diagram for Assessment District No. 90-3 is included in Appendix II.
Project Vicinity Map and the EastLake Development Map
The following are a Vicinity Map for the Project and a neighborhood map showing the location
of the constructed and proposed residential, commercial and industrial areas of the EastLake development.
- 25-
VICINITY MAP
Escondida
Rancho
Sante Fe
Del Mar
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...
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M
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,
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-I
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o
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(619lm.181~
- 26 -
~c:~
NEIGHBORHOODS
Salt Creek
Ranch
EastLake
Village
Center II
EastLake
Greens
EastLal~e
Business
Center II
EastLake
Woods
East
EastLake
Village Center III
EastLake
Woods
West
EastLake
Hills
EastLake
Shores
EastLake
Business
Center 1
EastLake
Village
Center I
EastLake
Trails
EastLake
Vistas
EastLake
Terraces
EastLake
Village
Center IV
Olympic Training Center
... fASTLAKE
A PLANNED COMMUNITY BY EASTlAKE DEvaOPMENT Co.
- 27 -
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11/28/88 I l=i :
SPECIAL RISK FACTORS
City Limited Obligations
The City's legal obligations with respect to any delinquent assessment installments are solely (I)
advancing available funds from the Reserve Fund to the Redemption Fund, and (2) instituting judicial
foreclosure proceedings, all as set forth in Resolutions of the City and in the Bond Indenture.
As discussed in the "SECURITY FOR THE BONDS" section herein, in the event of a delin-
quency in payment of any unpaid assessment installment, the City has no obligation to advance to the
Redemption Fund funds of the City, to purchase land at the delinquent assessment foreclosure sale, in the
absence of any bidder at a foreclosure sale, or to pay future delinquent installments of assessments or
interest thereon.
Tax Delinquencies
Under provisions of the Improvement Bond Act of 1915, assessment installments from which
funds necessary for the payment of annual installments of principal of and interest on the Bonds are
derived will be billed to properties against which there are unpaid assessments on the regular property tax
bills sent to owners of such properties. Such assessment installments are due and payable, and bear the
same penalties and interest for nonpayment, as do regular property tax installments. Therefore, the
unwillingness or inability of a property owner to pay regular property tax bills as evidenced by property
tax delinquencies may also indicate an unwillingness or inability to make regular property tax payments
and assessment installment payments in the future.
See the sections of the Official Statement entitled "SECURITY FOR THE BONDS", "Reserve
Fund" and "Covenant for Superior Court Foreclosure", for provisions which apply, and procedures which
the City is obligated to follow, in the event of a delinquency in the payment of assessment installments.
Price Realized Upon Foreclosure
Amendments to the Bond Law enacted in 1988 and effective January I, 1989 provide that under
certain circumstances property may be sold upon foreclosure at a lesser Minimum Price or without a
Minimum Price. "Minimum Price" as used in the Bond Law is the amount equal to the delinquent install-
ments of principal or interest of the assessment or reassessment, together with all interest penalties, costs,
fees, charges and other amounts more fully detailed in the Bond Law. The court may authorize a sale
at less than the Minimum Price if the court determines, based on the evidence introduced at the required
hearing, any of the following:
(I) Sale at the lesser Minimum Price or without a Minimum Price will not result in an
ultimate loss to the Bondowners.
(2) Bondowners of 75 percent or more of the Outstanding Bonds, by principal amount, have
consented to such sale and the sale will not result in an ultimate loss to the nonconsenting
Bondowners.
(3) Bondowners of 75 percent or more of the Outstanding Bonds, by principal amount, have
consented to the petition and all of the following apply:
a. By reason of determination pursuant to the Bond Law, the City is not obligated
to advance available funds to cure a deficiency (the City made such a deter-
mination not to be so obligated with respect to the Bonds).
b. No bids equal to or greater than the Minimum Price have been received at the
foreclosure sale.
- 28-
c. No funds remain in the Reserve fund.
d. The City has reasonably determined that a reassessment and refunding proceeding
is not practicable, or has in good faith endeavored to accomplish a reassessment
and refunding and has not been successful, or has completed reassessment and
refunding arrangements which will, to the maximum extent feasible, minimize the
ultimate loss to the Bondowners.
e. No other remedy acceptable to Bondowners of 75 percent or more of the Out-
standing Bonds, by principal amount, is reasonably available.
Bankruptcy
The payment of property owners' assessment installments and the ability of the City to foreclose
the lien of a delinquent unpaid assessment, as discussed in the section herein entitled "SECURITY FOR
THE BONDS", may be limited by bankruptcy, insolvency, or other laws generally affecting creditors
rights or by the laws of the State relating to judicial foreclosure.
The various legal opinions to be delivered concurrently with the delivery of the Bonds (including
Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal
instruments, by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of credi-
tors generally.
Although bankruptcy proceedings would not cause the assessment liens to become extinguished,
bankruptcy of a property owner could result in a delay in prosecuting Superior Court foreclosure proceed-
ings. Such delay would increase the likelihood of a delay or default in payment of the principal of and
interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full.
Article XIII A of the California Constitution
Enactment of Article XIII A of the California Constitution and subsequent legislation effectively
repealed the otherwise mandatory duty of an issuer of bonds pursuant to the Improvement Bond Act of
1915, to levy and collect a special tax in an amount necessary to pay delinquent assessment installments,
but not to exceed $.10 on each $100 of assessed valuation of taxable property within the jurisdiction of
the issuer of Bonds in any year, if surplus funds are not available to cover such delinquencies.
Future Land Development
The information regarding ownership and private development of assessed parcels in the Assess-
ment District as contained in this Official Statement has been provided by the respective owners of such
parcels. This information is included because it may be relevant to an informed evaluation of the Project
and the security for the Bonds. However, no assurance can be given that ownership of one or more of
such parcels will not be changed or that the projects planned by such owner will occur. This information
should not be construed to suggest that the Bonds or the assessments securing the Bonds are personal
obligations of the property owner or the developer. See the section entitled "THE ASSESSMENT DIS-
TRICT - Land Ownership and Future Development."
In addition, there are two specific matters involved in the EastLake development of the various
projects and parcels of land located within the Assessment District which could adversely affect projected
development:
1. SR 125 Interim Facility Construction. The Assessment District is bounded in part to the west
by proposed State Route 125. The City of Chula Vista has recently stated that if current approved
Tentative Maps within the City, including those of EastLake, are built out as proposed and no interim (or
- 29-
permanent) construction of SR 125 is concurrently completed, the City's transportation system would be
at full capacity. If this situation did, in fact, occur, development within the City, including that
within the Assessment District, could be stopped until traffic congestion mitigation measures were
implemented. In order to avoid such a result, the City estimates that such an interim SR 125
improvement will need to be completed and in service sometime during 1995-96.
With regard to the Assessment District, the area within EastLake Greens and the Olympic
Training Center have approved Tentative Maps. Other areas (EastLake Trails, Vistas, Woods and
Business Center Phase II) do not have approved Tentative Maps and, unless other traffic mitigation
measures are identified and implemented, development of the SR 125 interim facility will be a
requirement for development of these areas.
As discussed previously (see the Section entitled "THE ASSESSMENT DISTRICT - Development
Impact Fees"), the City of Chula Vista has established a Transportation Development Impact Fee ("DIF")
program which collects transportation development fees from all development within the City east of
Interstate 805. This area includes the EastLake development. Funding for an interim SR 125 project
from San Miguel Road to Orange Avenue is included in the City's DIF program. The City has
acknowledged, however, that even though the interim SR 125 project is included in the transportation DIF
program, insuftlcient funds for the project will have been collected to construct the roadway by 1995-96.
The City is currently in the consultant selection process for a study which will recommend a funding sys-
tem/mechanism and interim SR 125 configuration which would meet anticipated development
transportation requirements. It is the City's intent to make ordinance revisions which will implement the
funding program recommended by the consultant.
The California Department of Transportation has completed a substantial part of the environmental
studies for the SR 125 project. The completion of the environmental work has been transferred to
California Transportation Ventures, Inc. ("CTV"), a private corporation which has been awarded a
franchise by CalTrans to finance and develop a toll road to meet the SR 125 requirement. CTV indicates
that the EIR Final Report will be completed by the first quarter of 1993. However, local opposition to
such a toll road may impair CTV's ability to complete the project. The existing residents in the
Sweetwater Valley area (San Miguel Road) have voiced opposition to the toll road. In addition, local City
and State politicians have not embraced the "toll road" concept. Several bills are currently pending in
the State legislature which would impair CTV's ability to develop a toll road project.
2. Water Allocations. The EastLake development (including the land located in the Assessment
District) is served by Otay Water District. The Water District established a temporary water allocation
program in June 1989 to allow for a steady level of growth pending development of terminal water storage
facilities so as to maintain a five-day storage capacity with an ultimate goal of a lO-day storage capacity.
(The program is scheduled to remain in effect until a second pipeline to southern San Diego County is
completed, currently scheduled for late 1994.)
The current water allocation program allows for connections for 1,900 Equivalent Dwelling Units
("EDUs") annually. These EDU connections are allocated pro rata quarterly, with 325 available for
single family detached residences and 150 for single family attached residences and/or commercial. The
Water District has adopted (and amended) a comprehensive and complex set of rules governing request
for and distribution of these water allocations. In the event required water allocations are unavailable
to the Developer, the ability to develop all or a portion of the areas within the Assessment District
would be impaired.
EastLake has been involved in the water allocation program since its inception and, to date, has
acquired all EDU connections necessary to permit the orderly development of EastLake Greens by its
builders. (In many cases, EDU connections in excess of actual need have been acquired.) EDU's for
- 30-
EastLake Greens have been acquired averaging 73 per quarter, and EastLake estimates a need for 40 EDU
allocations per quarter for projected development through 1994 when the allocation program is anticipated
to be discontinued. EastLake has entered into an agreement with the Water District to fund terminal
water storage facilities as a credit against future fees and, as a result, EastLake is not limited in the
number of EDU allocations it may request quarterly while builders or developers not a party to such an
agreement are limited to requesting a maximum of 200 such EDU allocations. In addition, EastLake is
entitled to an additional 15% EDU allocation bonus because EastLake is a reclaimed water user. No
assurance can be given, however, that future water allocations will be received.
The Water District's water allocation program is designed to address the District's lack of terminal
water storage which is being satisfied by the construction of reservoirs and of the second aqueduct to
south San Diego County. While the potential drought conditions prevalent in Southern California and the
southwest in general over the past several years have caused the implementation of voluntary water
conservation measures within the Water District as a whole, there are currently no special restrictions on
obtaining water permits ("will serve" letters) for new construction. Because of the amount of rainfall
experienced in the area during the Spring of 1991, none of the water conservation measures contemplated,
which would have impacted the issuance of building permits, have been implemented to date. Such
measures could include conservation programs which would offset the demand created by new users or
the payment of a fee to the Water District for the implementation of water conservation projects within
the Water District. In the event that drought conditions require the implementation of water
conservation measures within the Water District, development within the Assessment District could
be seriously impaired in the absence of acceptable mitigation measures which are implemented by
the Developer.
Loss of Tax Exemption
In the opinion of Bond Counsel, the Bonds constitute governmental obligations under the Internal
Revenue Code of 1986, as amended (the "Code"). The City has covenanted to comply with Code restric-
tions (relating to use of Bond proceeds, reserve fund funding requirements, investment yield limitations
and rebate requirements, federal guarantee prohibitions and registration requirements) so that interest on
the Bonds is excludable from gross income for federal income tax purposes. However, in the event the
City fails to comply with any of these covenants, interest on the Bonds would be includable in gross
income for federal income tax purposes retroactive to the date of Bond issuance.
Concentration of Property Ownership
Until further subdivision and/or development and sales of parcels occur within the Assessment
District, payment of approximately 85% of assessment installments is dependent upon timely payment by
EastLake Development Company, the owner directly, or indirectly, through options to purchase lands
owned by Western Salt Company, of approximately 94% the land located in the Assessment District. (See
the section entitled "THE ASSESSMENT DISTRICT - Land Ownership and Future Development. ")
Failure by EastLake Development Company to successfully sell and/or develop its projects proposed for
the land within the District would increase the likelihood of failure to pay assessment installments
applicable to its properties when due, therefore resulting in the rapid depletion of the Reserve Fund prior
to reimbursement from the resales of property or delinquent reductions. In that event, there could be a
default in the payment of the principal of and interest on the Bonds.
Parity Taxes and Special Assessments
The City has limited control over the amount of additional debt payable from taxes or assessments
on all or a portion of the property within the Assessment District that may be issued in the future by other
governmental entities or districts, including but not limited to water districts or any other district having
- 31 -
jurisdiction over all or a portion of the land located within the Assessment District. To the extent such
indebtedness is payable from special taxes or taxes, such special taxes and taxes will have a lien on the
property within the Assessment District on a parity with the lien of the special assessments levied in this
proceeding. The City currently anticipates that there may be additional assessments, resulting from future
assessment district proceedings, levied on those parcels of land located within the Assessment District
presently owned by Western Salt Company.
Accordingly, the debt on the property within the Assessment District could increase, without any
corresponding increase in the value of the property within the Assessment District, and thereby reduce
the ratio that exists at the time the Bonds are issued between the value of the property and the debt
secured by the taxes and assessments thereon. The imposition of such additional indebtedness could also
reduce the willingness and ability of the property owners within the Assessment District to pay the
assessments when due. In the event of a delinquency in the payment an assessment, no assurance can be
given that the proceeds of any foreclosure sale would be sufficient to pay the delinquent assessment and
any other delinquent assessments, special taxes, or taxes. See the sections entitled "Price Realized Upon
Foreclosure" above, and "SECURITY FOR THE BONDS - Covenant for Superior Court Foreclosure."
- 32-
MISCELLANEOUS
No Litigation
There is no known controversy or litigation of any nature now pending to restrain or enjoin the
issuance, sale, execution or delivery of the Bonds or in any way contesting or affecting the validity of the
Bonds, the proceedings of the City taken with respect to the issuance or sale thereof, the existence or
powers of the City or the title of any officers of the City to their respective positions.
Approval of Legality
All legal matters related to the authorization, issuance, sale and delivery of the Bonds are subject
to the approval of Brown, Harper, Burns & Hentschke, San Diego, California, Bond Counsel. The
unqualified opinion of Bond Counsel approving the validity of the Bonds will be supplied free of charge
to the original purchaser of the Bonds and will be printed on each Bond. Fees payable to Bond Counsel
are, in part, contingent upon the sale and delivery of the Bonds.
Tax Exemption
In the opinion of Bond Counsel, under existing laws, regulations, rulings and judicial decisions,
interest on the Bonds is exempt from personal income taxes imposed by the State of California, is
excluded from gross income for federal income tax purposes, and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and corporations. However, Bond
Counsel notes that, with respect to corporations (as defined for federal income tax purposes), interest on
the Bonds will be included in determining corporate adjusted net book income (adjusted current earnings
for taxable years ending after December 31, 1989), a portion of which may increase the alternative
minimum taxable income of such corporations.
Bond Counsel's opinion as to the exclusion from gross income of interest on the Bonds is subject
to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as
amended (the "Code"), which must be satisfied subsequent to the issuance of the Bonds to assure that such
interest will not become includable in gross income for federal income tax purposes. Failure to comply
with such requirements could cause the interest on the Bonds to be included in gross income for federal
income tax purposes retroactive to the date of issuance of the Bonds. The City has covenanted to comply
with all such requirements. Bond Counsel has not undertaken to determine (or to inform any person)
whether any actions taken on (or not taken) or events occurring after the date of issuance of the Bonds
may affect the tax status of interest on the Bonds.
Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross
income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise
affect the federal income tax liability of the recipient. The extent of these other tax consequences will
depend upon the recipient's particular tax status and/or other items of income or deductions. Bond
Counsel expressed no opinion regarding any such consequences. Accordingly, all potential purchasers
should consult their tax advisors before buying any of the Bonds.
In rendering its approving opinion, Bond Counsel also has considered the existence and application
of the letter of credit.
No Rating
No rating has been sought or obtained for the Bonds.
- 33 -
Underwriting
The Underwriter intends to offer the Bonds to the public initially at the prices andlor yields set
forth previously in this Official Statement plus accrued interest from the date of the Bonds, which price
or yield may subsequently change without any requirement of prior notice.
The Underwriter reserves the right to join with dealers and other underwriters in offering the
Bonds to the public. The Underwriter may offer and sell Bonds to certain dealers (including depositing
Bonds into investment trusts) at a price lower than the public offering price, and such dealers may allow
any such discounts on sales to other dealers.
In reoffering Bonds to the public, the Underwriter may over allot or effect transactions which
stabilize or maintain the market price for Bonds at levels above those which might otherwise prevail. Such
stabilization, if commenced, may be discontinued at any time.
Financial Consultants
Kadie-Jensen, Johnson & Bodnar, Municipal Financing Consultants, Inc. has acted as financial
advisor to the City in connection with the formation of the Assessment District and the issuance of the
Bonds.
Additional Information
Any statements made in this Official Statement involving matters of opinion or of estimates,
whether or not so expressly stated, are set forth as such and not as representations of fact, and no
representation is made that any of the estimates will be realized. This Official Statement is not to be con-
strued as a contract or agreement between the City and the purchasers or owners of any of the Bonds.
Clerk.
Copies of the documents referred to herein are available for inspection at the Office of the City
This Official Statement was duly authorized July 9, 1991, by the City pursuant to a Resolution
adopted by the City Council. Concurrently with the delivery of the Bonds, the City will furnish a certifi-
cate executed on behalf of the City by its City Engineer to the effect that this Official Statement, as of
its date and as of the date of delivery of the Bonds, has been diligently reviewed and to the best
knowledge and belief of the City and its officials does not contain any untrue statement of a material fact
or omit to state any material fact necessary to make the statements herein, in light of the circumstances
under which they were made, not misleading and that this Official Statement is final as of its date. The
execution and delivery of this Official Statement have been duly authorized by Resolution of the City
Council of the City.
CITY OF CHULA VISTA
By ISI JOHN D. GOSS
City Manager
- 34-
Appendix I:
Appendix II:
Appendix III:
Appendix IV:
APPENDICES
The City of Chula Vista
Assessment Diagram
Excerpts from the Appraisal Report
Form of Security Enhancement Agreement
APPENDIX I
THE CITY OF CHULA VISTA
Appendix I
APPENDIX I
The following information relating to the City of Chula Vista, San Diego County, California (the
"City") is supplied solely for purposes of information. The City is not obligated in any manner to pay
principal of or interest on the Bonds or to cure any delinquency or default on the Bonds (except to the
extent of transferring funds from the Reserve Fund and instituting foreclosure proceedings against any
parcel in default in accordance with the Resolutions and the Bond Indenture adopted by the City Council
of the City.)
THE CITY
The City of Chula Vista, California is located on San Diego Bay in Southern California, 8 miles
south of San Diego and 7 miles north of the Mexico border, in the area generally known as "South Bay."
City limits cover approximately 30 square miles. The City was incorporated October 17, 1911, and
became a chartered city in 1951. With a 1991 certified population of 138,092, Chula Vista is the second
largest city in San Diego County.
Municipal Government
Chula Vista is a charter city with the council-manager form of government. A four-member city
council is elected at large for four-year alternating terms at elections held every two years. The mayor
is the presiding officer of the council and also is elected to serve a four-year term. The city manager,
appointed by the council for an indeterminate term, acts as chief executive officer in carrying out council
policies.
The City has approximately 750 full-time employees. City services include police and fire
protection, public works, parks and recreation, and community development. The city has a class 3 fire
rating.
Climate and Topography
Chula Vista has mild summers with a mean temperature for the month of July of 70 degrees and
moderate winters with an average winter temperature of 65 degrees. The relative humidity averages 62
percent. Average rainfall, which occurs generally in the period between November and April, is less than
9 inches.
The City is located on the San Diego Bay between Bonita Valley to the north and Otay Valley to
the south at an altitude of 0 to 300 feet above sea level.
Source: Chula Vista Chamber of Commerce.
- Appendix I -- Page I -
Population
As of January I, 1991, the City's population was certified at 138,092 by the State Department
of Finance. The following is a tabulation of population data for the City of Chula Vista.
CITY POPULATION DATA
Calendar City of
Year Chula Vista
1950 16,505
1960 42,031
1970 67,901
1980 82,200
1986' 116,300
1989 128,028
1991 138,092
% Change
154.7%
61.5
21.1
41.5
8.7
7.8
, Estimated; 1986 includes recent annexation.
Source: U.S. Census; California Department of Finance.
City Employees Retirement Program
The City contributes to the California Public Employees Retirement System ("PERS "), an agent
multiple-employer public employee retirement system that acts as a common investment and administrative
agent for participating public entities within the state of California. All salaried full-time and part-time
employees are eligible to participate in PERS. Participants in the plan vest after 5 years of employment.
Employees in the plan who retire at or after age 50 receive annual retirement benefits calculated based
on age, years of service and the final 3 year's compensation. The City's payroll for employees covered
by PERS for the year ended June 30, 1990 was $23,878,477 out of a total payroll of $26,184,479.
Pension costs are recorded as expenditures when paid by monthly contributions to PERS. The
total pension contribution for the year ended June 30, 1990 was $4,252,218. At June 30, 1989 the plan
net assets available for benefits totaled $61 million (at cost). The City's total unfunded actuarial liability
at June 30, 1989 was $8.1 million. The interest rate assumption used for discounting actuarial present
values and normal costs is 8.5%.
Source: City of Chula Vista General Purpose Financial Statements and Independent Auditor's Report for
year ended June 30, 1990, audited by Deloitte & Touche, San Diego, California.
- Appendix I -- Page 2 -
City Self-Insurance Program
The City self-insures claims and judgments for public liability, workers' compensation, and
unemployment insurance and has excess insurance coverage as follows:
Excess Coverage per
Self-Insured Occurrence Over Self-
Per Occurrence Insurance Retention
Public liability
VVorkers' compensation
Unemployment claim
$250,000
200,000
Full amount
of benefits
$10,000,000
5,000,000
None
The City is a member of the San Diego County Cities Risk Management Authority, a California
Joint Exercise of Powers Authority. Begun in 1982, the Risk Management Authority was formed for the
purpose of assisting members in insuring against various liabilities. The Agreement creating the Authority
was amended in early 1986 to provide for risk pooling of general liability insurance coverage by
participating cities in San Diego County. As a member, the City of Chula Vista has agreed to pay annual
premiums and to assume the initial $250,000 per occurrence of liability ("self-insured retention"). For
liability above such amount, the City may draw against the funds of the Risk Management Authority up
to the amount of $5,000,000.
The City has entered into contracts with servicing agents who administer the public liability and
workers' compensation claims program.
At June 30, 1990, the following amounts have been accumulated and are restricted for use
pursuant to the self-insurance program initiated by the City.
VV orkers Public Unempl.
Compensation Liabilitv Insurance Total
Cash & investments $1,032,812 $1,432,328 $620,800 $3,085,940
Accrued interest
and other receivables 6.031 10.136 5.744 21.911
Reserve for Self-
Insurance $1.038.843 $1.442.464 $626.544 $3.107.851
Source: City of Chula Vista Risk Manager, and City of Chula Vista General Purpose Financial State-
ments and Independent Auditor's Report for year ended June 30, 1990, audited by Deloitte & Touche,
San Diego, California.
- Appendix I -- Page 3 -
Assessed Valuation (Secured)
Shown below is a five-year table of secured assessed valuation for the City.
CITY OF CHULA VISTA
Secured Assessed Valuations (I)
(in thousands)
Fiscal
-Ym.
Secured Assessed
Valuation
1986-87
1987-88
1988-89
1989-90
1990-91
$3,210,992
3,604,847
3,624,774
4,045,241
4,593,519
(I) Assessed valuations are based on 100% of full market value.
Source: San Diego County Assessor's Office.
Tax Delinquencies
CITY OF CHULA VISTA
SECURED PROPERTY TAX LEVIES AND DELINQUENCIES
FISCAL YEARS 1985-86 THROUGH 1989-90
Year Ending
June 30
Secured Tax
Levy
Delinquencies
as of June 30
Amount Percent
1986
1987
1988
1989
1990
$4,047,979
5,216,213
5,842,449
6,343,358
7,145,026
$159,008
197,171
225,699
177,262
227,993
3.93%
3.78
3.86
2.79
3.19
Source: Office of the Auditor-Controller, Property Tax Services, San Diego County.
- Appendix I -- Page 4 -
Bonded Debt
The Independent Auditors' Report of the City for the year ended June 30, 1990, audited by
Deloitte & Touche, Certified Public Accountants, of San Diego, California, reported that as of June 30,
1990, the City had outstanding $285,000 principal amount of General Obligation Bonds due to be retired
by 1995, $30,560,000 of Tax Allocation Bonds due to be retired by 2011, and $16,140,000 Certificates
of Participation to be retired by 2013.
Fund Balances; General Fund Revenues, Expenditures and Transfers
As of June 30, 1990, the City had the following fund balances in its major funds: General Fund
_ $11,358,042; Special Revenue Funds - $46,833,144; Capital Projects Funds - $14,808,955; and Debt
Service Fund - $9,971,564.
A five-year summary of the City's General Fund revenues, expenditures and transfers, as reported
by the City's Director of Finance, is presented in the following table. (Figures in this summary vary from
those set forth in the Independent Auditor's Report for the year ended June 30, 1990 audited by Deloitte
& Touche, Certified Public Accountants, of San Diego, California, due to differences in accounting
presentation. )
- Appendix I -- Page 5 -
CITY OF CHULA VISTA
SUMMARY OF GENERAL FUND REVENUES, EXPENDITURES AND TRANSFERS
YEARS ENDED JUNE 30
CATEGORY 1986 1987 1988 1989 1990
REVENUES
Property Taxes . . . . . . . $ 4,748,028 $ 5,730,472 $ 6,448,037 $ 7,077,352 $ 7,975,193
Sales Taxes . . . . . . . . . 7,016,399 8,367,892 9,659,924 10,518,772 10,913,588
Utility Users Tax .... . 1,787,359 2,263,303 2,428,743 2,538,773 2,550,051
Property Transfer .... . 158,144 246,851 208,549 372,359 307,613
Trans. Occup. Tax '" . 768,972 914,084 1,093,736 1,207,756 1,197,988
Business Licenses .... . 320,940 355,332 367,307 381,519 377,366
Franchise Taxes ..... . 1,110,992 1,257,413 1,303,140 1,506,317 1,532,049
Licenses & Permit . . . . . 997,304 1,065,453 1,260,784 1,470,023 1,421,031
Fines, Forfeitures
& Penalties ....... . 125,596 139,635 161,259 184,895 215,949
Revenue from
other Agencies ..... . 5,147,545 6,867,745 6,743,841 7,489,617 8,603,342
Revenue from Use
of Money & Prop ... . 997,149 935,588 1,000,130 504,659 1,068,576
Charges for
Current Services .... . 1,254,191 1,354,566 1,768,111 2,131,755 2,691,440
Miscellaneous ...... . 468.153 567.807 159.366 454,410 595.015
TOTAL REVENUES . . . $24.900.772 $30.066.141 $32.602.927 $35.838.207 $39 .449 .202
EXPENDITURES
General Govtment . . . . . $ 4,898,308 $ 6,109,959 $ 6,371,069 $ 7,727,820 $ 7,537,083
Public Safety . . . . . . . . 10,962,944 13,501,176 15,227 ,179 16,499,574 18,558,229
Public Works. . . . . . . . 5,425,834 7,056,061 7,175,380 6,974,016 8,731,150
Parks & Recreation '" . 2,409,914 2,686,934 2,903,547 3,214,492 3,474,964
Public Library ...... . 1.607 .560 1. 775.588 2.004.382 2.204.382 2.473.886
TOTAL EXPENDITURES $25.304.560 $31.129.718 $33.681.557 $36.620.128 $40.775.312
Revenues Over (Under)
Expenditures . . . . . . . . (403,788) (1,063,577) (1,078,630) (781,921) (1,326,110)
Interfund Transfers 2.614.758 (504.643) 855.462 2.012.463 2.143.808
Revenues & Trans
Over (Under) Expend $ 2,210,970 $(1,568,220) $ (223,168) $ 1,230,542 $ 817,698
Beginning Fund Equity . . 9.037.480 11.248.450 9.680.230 9.457.062 10.687 .604
Ending Fund Equity .. . $11,248,450 $ 9,680,230 $ 9,457,062 $10,687,604 $11,505,302
Reserved Balance .... . (2.071.880) (2.207 .660) (3.165.931) (3.796.115) (4.293.616)
UNRESERVED BALANCE $ 9.176.570 $ 7.472.570 $ 6.291.131 $ 6.891.489 $7.211.686
- Appendix I -- Page 6 -
I
Employment and Industry
Current employment data is not available for Chula Vista. Chula Vista is included in the San
Diego Metropolitan Statistical Area, which includes all of San Diego County. Set forth below is data
from 1984 to 1988, reflecting the County's civilian labor force, employment and unemployment.
SAN DIEGO COUNTY
CIVILIAN LABOR FORCE, EMPWYMENT AND UNEMPWYMENT
1985 1986 1987 1988 1989
Civilian Labor Force(l) 958,200 1,024,200 1,058,800 1,118,400 1,170,700
Employment 907,400 973,000 1,011,000 1,070,400 1,097,500
Unemployment 50,800 51,200 47,800 48,000 73,200
Unemployment Rate(2) 5.3% 5.0% 4.5% 4.3% 6.3%
(I) Labor force by place of residence. Employment includes self-employed persons and persons
involved in labor-management trade disputes.
(2) The unemployment rate is computed from unrounded data; it may differ from rates using the
rounded figures in this table.
Source: California Employment Development Department.
- Appendix I -- Page 7 -
Employment reported by place of work. Does not include proprietors, self-employed or persons
involved in labor-management trade disputes.
Detail may not add to total due to independent rounding.
Source: State of California Employment Development Department.
- Appendix I -- Page 8 -
I
Commerce
Taxable sales in the City exceeded $1 billion in 1989, the most recent year for which figures are
available. The following shows the five-year record of taxable transactions of the City as provided by
the California State Board of Equalization.
CITY OF CHULA VISTA
TAXABLE TRANSACTIONS
(in OOO's)
1985 1986 1987 1988 1989
Retail Stores:
Apparel stores . . . . . $ 19,534 $ 28,086 $ 34,312 $ 39,272 $46,302
General merchandise . 138,128 175,916 196,798 225,442 246,401
Drug stores ..... . 14,180 16,035 18,450 19,770 21,440
Food stores ..... . 41,797 58,464 63,245 67,953 78,154
Package liquor ... . 4,321 5,151 5,358 4,958 4,753
Eating & drinking
establishments ... . 62,075 82,482 85,535 97,644 104,999
Home furnishings
and appliances ... . 29,881 37,981 45,779 50,037 53,906
Building materials
and farm implemnts . 16,105 40,898 59,346 78,768 82,461
Auto dealers and
supplies ....... . 42,196 51,133 56,334 60,913 69,487
Service stations . . . . 56,570 56,117 65,355 73,834 80,515
Other retail stores . . 43.126 58.558 68.694 74.091 84.211
Total retail stores . . . . $467,913 $610,821 $699,206 $792,682 $872,629
All other outlets . . . . . 79.655 114.162 114.238 116.675 141.630
Total Taxable
Transactions ..... . $547 .568 $724.983 $813.444 $909.357 $1.014.259
- Appendix I -- Page 9 -
I
Construction
A five-year summary of the number and value of building permits issued in the City is shown in
the following tabulation:
CITY OF CHULA VISTA
BUILDING PERMITS AND VALUATION
Calendar Building Permits
Year Issued Valuation
1986 2,287 $209,459,267
1987 1,924 145,968,009
1988 2,361 255,168,370
1989 2,403 215,623,342
1990 1,950 140,231,787
The following tabulation shows the segregated valuation of building permits issued by the
Department of Building and Housing of the City during 1990:
CITY OF CHULA VISTA
1990 SEGREGATED BUILDING PERMIT VALUATION
New Residential. . . . . . . . . . . . .
New Industrial/Commercial .....
Additions/Alterations/Conversions .
Other ...................
Total Valuation . . . . . . . . . . . . .
$ 95,246,603
20,368,035
18,616,945
6.000.204
$140,231,787
Source: City of Chu1a Vista Department of Building and Housing.
Education
Public educational instruction from kindergarten through high school is provided by the Chula
Vista Elementary School District and Sweetwater Union High School District. These districts administer
twenty-six elementary schools, nine junior high schools and eight senior high schools. Southwestern
College, a two year Community College, has an enrollment of more than 15,000. There are also four
adult education schools and twelve private schools. There are some seven universities or colleges within
30 minutes commuting distance from Chula Vista in the San Diego Metropolitan Area. The City and
Balwin Vista Company have proposed a University of California campus in Chula Vista, to be located
on a 400 acre site adjoining the Olympic Training Center.
Source: Chula Vista Chamber of Commerce.
- Appendix I -- Page 10 -
I
Community Facilities
There are two acute-care hospitals, two psychiatric hospitals and three convalescent hospitals, and
more than 400 medical doctors and allied professionals in Chula Vista. Community Hospital of Chula
Vista is developing a 30 acre medical campus, which will include a 13 I-bed hospital, 24 hour emergency
service and the South Bay's only helicopter landing pad.
There are two daily, one weekly and one semi-weekly newspapers published and circulated in the
City. The City has one main public library and two branch libraries.
Recreational facilities within or near the City include twenty-four parks, four community centers,
six "tot lots," two ballfields, twenty-eight tennis courts, three (two private) golf courses, four municipal
swimming pools, two gymnasia and a boat launching facilities. The Chula Vista bayfront area contains
a marina which houses 552 boats and miles of public beaches. The City also provides many trails for
bicycling, hiking and jogging.
Chula Vista will also be the home of the United States Olympic Training Center. This is the third
such training center in the nation and the only year round training facility. The Center will be located
on a ISO-acre site donated by EastLake Development Company adjacent to the Otay Lake reservoir.
Ground breaking for the Center took place in the summer of 1990 and the first phase is expected to be
complete in 1992.
The City has sixty churches and nearly 100 service, fraternal and civic organizations.
Source: Chula Vista Chamber of Commerce.
Transportation
U.S. Highways 5 (along the coast) and 805 (inland) provide full freeway access from Chula Vista
north to San Diego and south to the Mexican border. Commuter rail service is provided by the San Diego
Trolley, a light rail system started in 1981 and the eleven bus routes covering the City.
Daily bus connections serve the City, and Southern Pacific Railway and San Diego's Lindbergh
International Airport are fifteen minutes to the north of the City.
Utilities
Electric power and natural gas are provided by San Diego Gas and Electric Company. Pacific
Bell Telephone Company serves the area. Otay Water District and Sweetwater Water District provide
water service and the City provides sewer service.
- Appendix I -- Page II -
I
APPENDIX II
ASSESSMENT DIAGRAM
Appendix II
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
,
\
SEE SHEET ~
SEE SHEET 7
NOT TO SCALE
@
@
@
AN ASSESStv'ENT WAS LEVBJ BY TI-E ary Co..tO... CF TI-E aTY CF
Oi..LA VISTA, STATE IF CALFa:NA. ON PARa3...S CF It>MJ Sl-OWN CN
THS ASSES9\ENT ClAGRAM MAP. SAD AS9::S9.ENT WAS LEVEO ON Trt::
____ DAY CF ________~ I9OCl. SAD AS!=ES9.ENT OA8RAM Al'.v HE
ASSESSM:NT RCLL WERE FEaRED N TI-E CFFCE IF Tl-E STREET
8l..PEI=I'frENENT CF TI-E OTY CF D-LLA VISTA ON TI-E ____DAy CF ______~
I9OCl. REFEAEN:E IS MACE TO TI-E ASSES9\ENT RCl.L REca:n:EO N TI-E
l:FA:C CF TI-E STREET SLPEFf',lTEN::ENT Fa:! TI-E EXACT AM:LNT CF EADi
ASSESSto.e'lT LEVED AGANST EAO-l PARE. CF LAN) SHJWN ON THIS
ASSE~T [lAlJ:lAM
BfYCCEf:i(:-aTy-o=CiU.t..-ViST'A--
FLED N TI-E CFA:E CF TH: OTY a..ERK CF TI-E OTY CF D-U..-A VISTA
THS ____ DAY CF _________~ 1990.
OTVClEA<.-OTY-EFCiU"A-ViST"A--
LEGEND
\i
REaJUED N T1-E CFA:E IF TI-E STREET Sl.PEANTEr\CENT CF Tft: CITY CF
a-u...A VISTA THS ___ DAY CF _________ 'QOCl.
STREET9..PEFNrEI'iENf-------
ary CF D-U..A VISTA
~BCQ(~_-_-_-_-p~'ri: CF ----Go-MAPS Wi:J:SSM=NT~~TS:-REaX.ER'S
cx:nt.o'ENT NJ. _ -l,nI;e-CFFCE CF TI-E CXJlNTY RECCR:EA CF TI-E
CClNTY CF SAN CEOO;"sr A TE CF CALFCR\lA
ECiMYREaHERCFSAN-i:EOO"{':'i)My-
---
DISTRICT BOUNDARY
PARCEL BOUNDARY
NAP NOT A PART OF THE DISTRICT
""'"
TI-E BCl.N)ARY A/'.IJ PARCELS AS Sl-OWN I-ERECN ARE
AS SI-OWN CN TI-E ASSESSGl'S PARCEL MAPS CF TI-E
ca..NTY CF SAN OEOO. 8T A TE CF CALFCANA.
(0
ASSESSMENT NUMBER
SHEET 1 OF 7 SHEETS
Appendix II - Page 1
~1 WILLDAN ASSOCIATES
\AI CONSULllNG ENGNWIS AND PlNlNERS
--......--......-,..
JN04000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
LEGEND
T
N
I
- - - - - TRACT BOUNDARY
PARCEL BOUNDARY
GRAPHIC SCALE
~.,. .,.
('"rut')
1!Do1I_looft.
i
12 LOT NUMBER
o ASSESSMENT NUMBER
PARCELS ARE AS SHOWN ON THE ASSESSOR'S PARCEL MAPS
Of' Tll[ COUtfTY OF SAN DIEGO, ST"TE Of CALlf'ORNIA.
SHEET 2 OF 7 SHEETS
Appendix II - Page 2
'\'A'7 WILLDAN ASSOCIATES
\AI e-.1WQ IMGIB:.. NIl PL_"
__........__"'al~__'..
J.N.Q4000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
.
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LEGEND
--------- DISTRICT BOUNDARY
PARCEL BOUNDARY
12 LOT NUMBER
.
o
ASSESSMENT NUMBER
-8
\ 8,
. ,-'
v
PARCELS ARE I<S SHOWN ON THE ASSESSOR'S PARCEL MAPS
OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA.
SHEET 3 OF 7 SHEETS
Appendix II - Page 3
\ 'AI. / WILLDAN ASSOCIATES
\AI COfIIIUl.lllllllltll_ER8 AND PUoN/tERS
.........""''''.1"<_...__.....,,,.,.,,.,,..
J.N.Q4000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
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PARCEL BOUNDARY
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. /
/~/
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12 LOT NUMBER
G ASSESSMENT NUMBER
PARCELS ARE AS SHOWN ON THE ASSESSOR'S PARCEL IAAPS
Of THE CQUNTY OF SAN DIEGO, STATE OFCAlJFORNIA.
'\'A'7 WILLDAN ASSOCIATES
\AI e_,. _'118 _"'_"1
--.........--........--...
Appendix II - Page 4
J.N.04000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
~
\
GRAPHIC SCALE
'L--..J . -
!"'Iol"'W"'l ' ,
.,.
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(DfPDl'I
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LEGEND
--------- TRACT BOUNDARY
PARCEL BOUNDARY
12 LOT NUMBER
G ASSESSMENT NUMBER
PARCELS ARE /lS SHOWN ON THE ASSESSOR'S PARCEL MAPS
Of THE CQUNtY OF SAN DIEGO, STATE Of CALlFORNt.'o.,
SHEET 5 OF 7 SHEETS
Appendix II - Page 5
\"\W7 WILLDAN ASSOCIATES
\AI C_ULTlNG ENliItltEEII8 AItD Pl.AMERS
....._........_..""'" '"u (010146"''''
J,N.04000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
~~
........
NO SCALE
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LEGEND
--.--.-----.-- TRACT BOUNDARY
PARCEL BOUNDARY
12 LOT NUMBER
G ASSESSMENT NUMBER
PARCELS ARE AS SHOWN ON THE ASSESSOR'S PARCEL IAAPS
OFTl1E CQUNTYOF SAN DIEGO, STATE OF CALIFORNIA.
SHEET 6 OF 7 SHEETS
Appendix II - Page 6
\'A'7 WILLDAN ASSOCIATES
\AI COIl8U1.TlIMI ENGIND!U AND ~It.
.. ..._.........,._...........~...."...>-"..
J.N.04000
I
ASSESSMENT DIAGRAM OF
ASSESSMENT DISTRICT 90-3
CITY OF CHULA VISTA, COUNTY
OF SAN DIEGO, STATE OF CALIFORNIA
EASTLAKE GREENS PHASE I
~
\
NOT TO SCALE
LEGEND
_______ TRACT BOUNDARY
.
l
I .""......
.-.-
,..
PARCEL BOUNDARY
12
LOT NUMBER
o ASSESSMENT NUMBER
PARCELS ....RE~ SHOWN ON THE ASSESSOR'S PARCEL w.,PS
OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA,
SHEET 7 OF 7 SHEETS
Appendix II - Page 7
,\-'W7 WILLDAN ASSOCIATES
\AI COIl8U1.TIICI EflGINEEU _ JIl_U
...._"''''''''_...........'''''.1'''''''"''.
J.N.04000
I
APPENDIX III
EXCERPTS FROM THE APPRAISAL REPORT
PREPARED BY
KIBBEY COMPANY
SAN DIEGO, CALIFORNIA
Dated: May 22, 1991
Appendix III
II
KIBBEY COMPANY
REAL ESfATE APPRAISALS/CONSULTATION
1471 MORENA BOULEVARD, SAN DIEGO, CA 92110-3782 PHONE (619) 275.fJ967 FAX (619) 275-5200
DAVID R SAMPPAL\, MAl
JAMES NAUGHTON, MAl
JOHN Me.. ASHTON
JAMES NAUGHTON, JR
JACK A. MORRA
JEFFREY D. MORELOCK
RICHARD CRIPPEN
mOMAS H. GAVIN
DANA KUHN
May 22, 1991
Ref. No. 9O-128A
Mr. Lyman Christopher
Finance Director
CITY OF CHULA VISTA
Post Office Box 1087
Chula Vista, California 92010
Mr. Carl Kadie
KADIE-JENSEN, JOHNSON & BODNAR
Municipal Financing Consultants, Inc.
7801 Mission Center Court, Suite 400
San Diego, California 92108
RE: Assessment District No. 90-3 - EastLake Community
Chula Vista, California 92013
Gentlemen:
As you requested, an inspection has been made and sufficient analyses completed in
order to provide opinions of value for parcels of land contained within the above referenced
assessment districts.
The properties contained within the north portion of EastLake Greens, Assessment
Parcels 1 through 168 and 175, have been valued "as if fully improved and graded in accord
with the recorded final subdivision map for this portion of the property". The values
estimated are also based upon non assessed parcels No. 170 through 174 being improved,
graded and landscaped in accord with the approved subdivision maps for EastLake Greens
Phase I. The southern portion of the EastLake Greens area has been valued "as is" in
accord with an approved subdivision map. The balance of the assessment parcels contained
within the EastLake Business Center No 2, EastLake Woods West, EastLake Woods East,
EastLake Trails, EastLake Vistas and the Olympic Village site have been valued "as is" with
the benefit of the approved master plan and the major streets and backbone of utilities to
be completed with the funds from this assessment district
The Assumptions and Limiting Conditions outlined herein are an integral part of this
appraisal. The individual and summation of individual values of the assessments parcels in
this assessment district as individual sites capable of independent sale, in designated
condition, are outlined on the following attachments.
Appendix III - Page I
I
Mr. Lyman Christopher
Finance Director
CITY OF CHUlA VISTA
May 22, 1991
Page Two
Mr. Carl Kadie
KADIE-JENSEN, JOHNSON & BODNAR
Municipal Financing Consultants, Ine.
As you requested and for the sake of brevity, this report is presented in a summary
format with all pertinent data detail utilized in arriving at these conclusions retained in our
back-up files in the event that further or additional work is required.
Assessment district appraisal reports are typically presented in this format because
they are often reproduced and included in the prospectus for the sale of the assessment
bonds.
This study shall serve as a guide to establishing assessment values which will be the
security for bonded indebtedness and for no other purpose. The sum of these individual
value estimates as of May 22, 1991 was:
$283,960,000
(TWO HUNDRED mOHTY.'lHREB MIllJON, NINB HUNDRED SIXTY TIlOUSAND DOll..ARS)
Thank for the opportunity to be of service in this appraisal assignment. If there are
any questions or if we may be of further assistance, please do not hesitate to call.
Very truly yours,
David R Samppala, MAl
John McL. Ashton
JA:lw
Appendix III - Page 2
KIBBEY COMPANY
I
~B OREEHS ASSESSMENT DISTRJCf90-3 Ref. No. 90-128
............ lJwou APN A<no U""" Zoolo& BalIlDlled
u.. (..._PIn) Value
I F1e1dl1ODe CommwdUa 5".321.03 lua 63 .. S1,.!6O,000
% FieIdatoocComlDuDiticl 595-321'- 1~56 .. .. 110,9ZO,000
3 Bullate Deveklpme:llt Co. 595-321..(18 22.4 I" .. $15,950,000
4 EutLake OeveJopmellt Co. 595.320-05 11.31 .. .. 17,.!6O,000
, UM Kuha 595.3Z1~ "... %14 .. $19,160,000
6 euu...ke DewIopmeD' Co. 595.321-10 11.66 I" MH 117,3llO,000
7 EutLake Developmeal Co. 595-320-06 3.13 n Ul 1~2OO,000
8 Eutllke OeveJopmcDt Co. 595-320-10 U .. Ul 14,030,000
. Ellluke OeveIopmeDI Co. 595-321.11 19.0 0 ComIlL Sbopplnl Center l6.62O,000
10 EutLate DeveIopmeDl Co. ,.,.""",,, u. 0 Couauy Cub 170,000
II ......... 0eveJ0pme" eo. ,.,.3>>07 3&:17 0 00Il c...ne S874,000
II ~te DeYelopmeat Co. 59S-311-OJ 10.66 0 00Il c...ne 1160,000
II EutLate Oevelopmeet Co. 595.321.05 :16.34 0 00Il c...ne 139ll,000
12-119 DavidIaa eo.c.. Pal1Den 5".]20..11 21.n 103 Ul SU.7.so.000
120-127 CeIliIUl}' Americ:aa 595-321.01 19.27 161 MH 513.6&5,000
128-168 Minter DeYeIopmeBl 595-321-09 l,u6 .. L 1',000,000
169 Walem SIll Co. 5"-050-17 ...37 97 LAOS $4,365,000
169 Walel'1ll SIll Co. ,,,........ U% 0 P NA
169 Wale,. Slh Co. S9S.oso.t3 :l63.:l9 283 IR.LMP 116,310,000
169 Walen SIb Co. 595.(180..1" ..... 183 UlAL $$,-
169 Waccm SIll Co. .59S..Q80.20 71.39 :zso CR.P-PO A tAl $9,918.000
169 Walem Sail Co. 595-080-21 13.:11 73 Ul 11,900,000
169 Wale... Sah Co. 5".-.01 136.10 363 L-P-OS-PQ 516,335,000
169 Weltera Sail Co. ,,,- 37.6% 138 L-OS l6.n5,000
169 Wale... Slh Co. 6U42O-19 .7.04 0 P NA
169 WCIICm Sab Co. 6U42O-lll 78.10 1:11 p.PO." 13,260,000
169 Well.enl Sah Co. ............ 122.07 716 L-tAl... 519,700.000
169 WCl&en Sail Co. 643Ql.06 299.97 1,377 (,M Golf CowIe S30,13O,000
169 Walen Sail Co. 643<J3O.<I5 339.09 936 lAIPO 1:14,:178,000
169 Wcalel1l S.h Co. ..~ ..... 0 PAPO NA
170 Oly 01 OIu1a Viola 393-~ I.... 0 Part NA
171 HOA ,.,.3>><13 3.37 0 OS NA
m HOA ,...- n" 0 OS NA
173 HOA ,.,.33><18 U6 0 P.NI'elUl~ NA
'" HOA 595-321.01 U 0 Part NA
173 FalrwlJ VUIu 595-320.-12 17.64 .. Ul 11~""000
176 Olympic TnlaJlII Ceala' """""'" 130 300 OIympk -SO 57,020.000
Oly oI01u1a Viola 595.320-01 46.87 0 Hip SdIooI NA
Cky of Cbu.lll VIMa 595-321.12 0.39 0 RaeIYoirIPUIIlp NA
atyotCllula Villa .595-32t-13 1:11 0 Raenoir/I"llat NA
TOTAL< 2,109.81 "283 1:113,....000
SUM OF INDIVIDUAL PARCEL VALUES
5283,960,000
-------
NA . Nol assessed u . pari of Assessment Dlslric1 No. 9(1.3
Appendix III - Page 3
I
APPRAISAL BASIS
The appraisal of real property for the assessment district is somewhat different than
for other appraisal assignments. The assessment is a lien on an individual parcel. As each
individual assessment is secured by an individual tax assessor's parcel, the value of the parcel
is appraised individually as though offered for sale independent of all other parcels.
In the appraisal, all parcels are viewed at the stage of physical development and city
approval that can be reasonably inferred to be completed at the time of completion of the
bonded improvements. In this case, the assumption of completed improvements includes
not only the improvements of the assessment district, but also the continuing development
by the project development that may be inferred to be completed
In this assessment district, the bonded improvements will consist of street, water,
sewer, utilities and drainage improvements to be installed In addition, the developer will
continue the project's full improvements of non-bonded streets, curbs, gutters, sidewalks,
traffic signals, utility installations, golf course clubhouse, swimming pools, tennis courts, other
common area facilities and site grading. The process of subdivision map approvals will also
continue during the construction of the bonded improvements.
The properties contained within the north portion of EastLake Greens, Assessment
Parcels 1 through 168, have been valued "as if fully improved and graded in accord with the
recorded final subdivision map for this portion of the property". The southern portion of
the EastLake Greens area has been valued "as is" in accord with an approved subdivision
map. The balance of the assessment parcels contained within the EastLake Business Center
No 2, EastLake Woods West, EastLake Woods East, EastLake Trails, EastLake Vistas and
the Olympic Village site have been valued "as is" with the benefit of the approved master
plan and the major streets and back bone of utilities to be completed with the funds from
this assessment district
This is a very large project undergoing continuing stages of development It is
reasonable to believe that city approvals and civil development will be substantially advanced
beyond the condition assumed in the appraisal of the assessment parcels as of the date of
final bonded assessment
Parcels are valued at market value as dermed in the California Code of Civil
Procedure. In essence, the value is the price the parcel would bring if offered on the open
market with no party under distress to buy or sell. The price is defined as cash or its
equivalent at typical real estate terms market inter est rates.
The parcels are valued as part of a large planned community with developing
neighborhoods and prospective services.
The parcels are also valued on the basis of schools fees being passed on to the
builder as normally being paid at the time of the building permit
Appendix III - Page 4
KIBBEY COMPANY
II
APPRAISAL BASIS (Continued)
The parcels are also appraised on the basis of 1990 constant dollars. It is quite
probable, given the historic trend of real estate value increases, that values upon completion
will be some what above the value indications concluded by the appraisers as of May 22,
1991. This is believed to be, however, a prudent approach for appraising parcels for the
security of assessment bonds. For purposes of this appraisal, values are not increased for
possible increases in real estate values nor for possible value increases due to inflationary
forces.
PROCESS
The first step was to value all of the parcels via the Sales Comparison Approach to
value in accord with the condition of improvement stated in the letter of transmittal. The
average values for each of the lots and/or units contained within the various master plan
areas are multiplied by the number of units in each tax assessment parcel to reach a
summation of value within each tax assessment parcel.
The sum of the individual parcel values should not be confused with a Bulk Market
Value wherein absorption is considered and appropriate discounts are made.
SALES COMPARISON APPROACH
The value of the parcel and market values are the prices such parcels would bring
when freely offered on the open market The best method of valuing in this context is in
comparison with the sales of similar properties. This is the Sales Comparison Approach
to value.
RESIDENTIAL PARCELS
In this study, the residential portions of EastLake Community are composed of larger
parcels for development to various densities. The major source of comparable residential
property sales data was sales made to major builders/developers in similar larger planned
communities whereby sales were made in bulk to the merchant builders.
BUSINESSIINDUSTRIAL PROPERTIES
In this study, comparable business and industrial lot sales in San Diego County were
examined that were considered to be similar to the subject business park area.
COMMERCIAL PROPERTIES/CHURCH SITES
In this study, comparable properties devoted to these uses in the San Diego County
market area were examined that were considered to be similar to the subject properties.
Appendix III - Page 5
KIBBEY COMPANY
I
CERTIFICATION
I certify that, to the best of my knowledge and belief:
1) The statements of fact contained in this report are true and correct
2) The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are my personal, unbiased professional
analyses, opinions and conclusions.
3) I have no present or prospective interest in the property that is the subject of this
report, and I have no personal interest or bias with respect to the parties involved
4) My compensation is not contingent on an action or event resulting from the analyses,
opinions, or conclusions in, or the use of, this report
5) My analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal
Practice.
6) The use of this report is subject to the requirements of the Appraisal Institute
relating to review by its duly authorized representatives.
7) As of the date of this report, I, David R. Samppala, have completed the requirements
under the continuing education program of the Appraisal Institute.
8) I have made a personal inspection of the property that is the subject of this report
9) In addition to those that may have co-signed this report, acknowledgment for
assistance is given to the following:
RESTRICflON UPON DISCLOSURE AND USE
Disclosure of the contents of this appraisal report is governed by the By-Laws and
Regulations of the Appraisal Institute.
Neither all nor any part of the contents of this report (especially any conclusions as
to the value, the identity of the appraiser or the firm with which he is connected, or any
reference to the Appraisal Institute) shall be disseminated to the public through advertising
media, public relations, news media, sales media, or any other public means of communica-
tion without the prior written consent and approval of the undersigned
David R. Samppala, MAl
Appendix III - Page 6
KIBBEY COMPANY
I
SUMMARY OF ~AT W.NT FACI'S AND CONCllJSIONS
LOCATION:
West of Otay Lake, south of EastLake
Hills, EastLake Shores and EastLake
Business Park Phase I, city limits of City of
Chula Vista.
REFERENCE NO./MAP NOS.:
9O-128/70B B, C & D - 3, 4 & 5
OWNER OF RECORD:
EastLake Development Company, a Cali-
fornia General Partnership
DATE OF APPRAISAL:
APPRAISAL PURPOSE:
May 22, 1991
Estimation of values for individual parcels
to provide security of bond indebtedness
and for no other purpose.
SITE AREA:
Approximately 2,109.98:t acres are valued
and contained within Assessment District
No. 90-3.
ZONE:
The approved specific plan for the total
EastLake Community calls for the devel-
opment of 8,837 total dwelling units in-
cluding various densities of residential lots,
business and industrial parks, commercial
site's, church sites, school and park sites.
Zoning is in accord with the approved
specific plan. The total EastLake Com-
munity consists of approximately 3,105.9:t
acres. EastLake Hills, EastLake Shores
and EastLake Business Center Phase I
have been developed and not contained
within this assessment district.
IMPROVEMENTS:
Installation of streets, utilities improve-
ments, drainage improvements and grading
of the property is ongoing. EastLake
Greens Golf Course has been improved
and is in play. The clubhouse is under
construction.
Appendix III - Page 7
KIBBEY COMPANY
I
SUMMARY OF SAT JRwr FAcrs AND CONCLUSIONS (Continued)
EASTLAKE COMMUNITY DATA:
The initial units of the EastLake Commu-
nity, EastLake Hills, EastLake Shores have
been one of the most successful develop-
ments in Southern California The devel-
oper sold 1,478 lots in bulk subdivisions to
builders in a six month marketing period
as of September 10 1990. There have
been 1,823 homes/units built and sold
since the sale of the vacant land to build-
ers started in 1986.
EastLake Greens Assessment Par-
cels 1 through 168 AND 175 contained in
Assessor's Books 595-320 and 559-321
have been graded and completion of all
off-site improvements is nearing
completion and the golf course has been
completed and is in play. As can be seen
by the currently ownership of Parcels
valued herein, parcels for "bulk" groups of
lots in EastLake Greens have been sold to
builders. These are listed as Davidson
Coscan Partners, Fairway Villas, Century
American, Fieldstone, Lane Kuhn and
Minter Development.
The south half of EastLake Greens has an
approved subdivision map. The balance
of the assessment parcels are contained
within the approved EastLake Community
Master Plan. These parcels will benefit by
the off-site major streets and back bone of
utilities to be completed with the funds
from Assessment District 90-3. (Please
see District Maps and Exhibits).
Appendix III - Page 8
KIBBEY COMPANY
I
A~Cl'P.ssMRNT PAR~ ~ NO. 169
OLYMPIC TRAINING r.RNJ'FI.R DATa
Assessor's Parcel Nos. 634-040-07 (150 acres) is located within the approved master
plan for the EastLake Community (see enclosed exhibit). This is 150~ acre Olympic
Training Center which has an estimated market value of $7,020,000. This is equivalent to
low density residential lots as an alternate residential use. After consideration of probable
time to reprocess plans/maps approvals for said alternate use.
According to Ms. Lori McKinley, the planner for this project, there will be 500 two
bedroom 1 bath suites in dormitory buildings, 2 large gymnasiums, 3 smaller gymnasiums,
tennis courts, swimming and diving pools, administrative center, central dining hall,
recreation rooms, several track and field training facilities, boat launching facilities and a
visitor's center with theater administrative offices and a gift shop. On site grading is in
progress.
This site will be a 365 day/year training facility.
Appendix III - Page 9
KIBBEY COMPANY
I
UMITING CONDmONS AND ASSUMPTIONS
In the preparation of this report, certain basic assumptions have been relied upon,
and there are also certain limiting conditions which circumscnbe the scope of this report.
1) This report assumes all final approvals for the development of Rancho Del Rey in
accord with the approved specific plan.
2) This report assumes that the proposed improvement will be completed in a
satisfactory manner in accordance with the approved specific plan prepared and
submitted by the developer within a normal and reasonable amount of time.
3) We have relied upon the description of the improvements to be installed in
Assessment District No. 90-3 supplied by WiIIdan Associates (Mr. Jerome Fournier).
4) The report assumes any permits, maps, plans or restrictions that are tentative or
preliminary at the time of this appraisal will be recorded and approved without
significant changes by the appropriate governmental agencies, within a normal and
reasonable amount of time.
5) No engineering survey has been made available to the appraiser. Data relative to
sizes and areas were provided by the developer and are considered reliable. No
encroachment of real property improvements are assumed to exist
6) We have relied upon the approved master plan prepared by Cinti & Associates,
Planners for the location of the numbers and types of lots/units contained within each
tax assessor's parcel
7) This report assumes no flood hazard potential exists in the EastLake community.
8) It is assumed that the utilization of the land and improvements is within the
boundaries or property lines of the property descnbed and that there is no
encroachment or trespass unless noted in the report.
9) Estimates of completion time (for proposed or renovation projects) supplied by third
parties are expressions of opinion, and the appraiser in utilizing said opinions for esti-
mating time of completion cannot warrant the inevitability of such an occurrence, nor
should he be held liable in any way through estimation of a date of completion.
10) It is the intent of the appraiser to have complied with the requirements of the
Federal Home Loan Bank Board In no way, however, should this report be
construed as a precise prediction of future values. At best, it is a reflection of future
probabilities based on current and historical trends.
Appendix III - Page 10
KIBBEY COMPANY
I
LIMITING OONDmONS AND ASSUMPTION& (Continued)
11) Unless otherwise stated in this report, the existence of hazardous material, which may
or may not be present on the property, was not observed by the appraiser. The
appraiser has no knowledge of the existence of such materials on or in the property.
The appraiser, however, is not qualified to detect such substances. The presence of
substances such as asbestos, urea-formaldehyde foam insulation, or other potentially
hazardous materials may affect the value of the property. The value estimate is
predicated on the assumption that there is no such material on or in the property
that would cause a loss in value. No responsibility is assumed for any such
conditions, or for any expertise or engineering knowledge required to discover them.
The client is urged to retain an expert in this field, if desired.
12) All mortgages, liens, encumbrances, leases and servitudes have been disregarded
unless so specified within this report. The property is appraised as though under
responsible ownership and competent management.
13) That no guarantee is made as to the correctness of estimate or opinion furnished by
others, and which have been used in making this appraisal
14) Title to the property appraised is assumed to be marketable and free of encumbranc-
es.
15) That no liability is assumed on account of matters of a legal nature affecting this
property, such as title defects, liens, encroachments, overlapping boundaries, etc..
16) Maps, photos and plats furnished by this appraiser are not based upon a survey, but
are furnished as an aid to the reader in visualizing the property.
17) Possession of this report, or any copy thereof, does not carry with it the right of
publications, nor may the same be used for any purpose by anyone but the applicant,
without the previous written consent of the appraisers, and in any event, only in
its entirety.
18) On a11 appraisals, subject to satisfactory completion, repairs or alterations, the
appraisal report and value conclusion are contingent upon completion of the
improvements in a workmanlike manner pursuant with the intent of the builder.
19) The appraiser assumes that there are no hidden or unapparent conditions of the
property, subsoil, or structures, which would render it more or less valuable. The
appraiser assumes no responsibility for such conditions, or for engineering which
might be required to discover such factors.
20) This appraisal is made of surface rights only. No analysis has been made of
subsurface rights, if any.
Appendix III - Page 11
KIBBEY COMPANY
I
lJMITING CONDmONS AND ASSUMPTIONS (Continued)
21) The depreciated Cost Approach and Income Capitalization Approach to value have
been considered, but not felt to be as accurate as the Sales Comparison Approach.
22) The appraisal is to be considered in its entirety and use of only a portion thereof will
render the appraisal invalid
23) Appraiser shall not be required by reason of this appraisal to give testimony or to be
in attendance in court or any governmental or other hearing with reference to the
property without prior arrangements having first been made with the appraisers
relative to such employment
24) Appraisers assume no responsibility for economic or physical factors which may affect
the opinions herein stated which may occur at some time after the date of appraisal.
25) No opinion is intended to be expressed on matters which require legal expertise or
specialized investigation or knowledge beyond that customarily employed by real
estate appraisers.
26) The appraiser reserves the right to make such adjustments to the valuation herein
reported as may be required by the consideration of additional data or more reliable
data that may become available.
27) It is assumed that there is full compliance with all applicable federal, state and local
environmental regulations and law unless nonconformity has been stated, defined and
considered in the appraisal report
28) It is assumed that all required licenses, consent or other legislative or administrative
authority from any local, state, or national governmental or private entity or organi-
zation have been, or can be, obtained or renewed for any use on which the value
estimate contained in this report is based
29) Any sketch or floor plan in the report may show approximate dimensions and is
included to assist the reader in visualizing the property. The appraiser has made no
survey of the property.
30) Due to the varying requirements of individual review processes, this report cannot be
guaranteed to meet every specific review appraiser's opinion of acceptability. Any
changes required by a review appraiser will be completed at the client's expense and
at the appraiser's option.
31) Selected portions of this appraisal report shall not be given to third parties without
the prior written consent of the signatories of this appraisal report
Appendix III - Page 12
KIBBEY CaMP ANY
-
I
LUtffl'ING OONDmONS AND ASSUMPTIONS (Continued)
32) 'The submission of this report constitutes completion of the service authorized It is
submitted upon the condition that the client will provide the appraiser customary
compensation relating to any subsequent required depositions, conferences, additional
preparation or testimony.
33) The appraiser accepts no responsibility for matters of appraisal management as
dictated by the Federal Home Loan Bank Board Such matters include, but are not
limited to, sequential approval of appraisers, issuance of engagement letters to
appraisers and promulgation of specific lending institutional guidelines.
34) A bulk/discounted market value is not presented, nor was it requested
Appendix III - Page 13
KIBBEY COMPANY
1-
-
APPENDIX IV
PROPOSED FORM OF:
SECURITY ENHANCEMENT AGREEMENT
BETWEEN
EASTLAKE DEVELOPMENT COMPANY AND THE CITY OF CHULA VISTA
Appendix IV
I
APPENDIX IV
The following Security Enhancement Agreement is in form proposed to be executed by EastLake
Development Company and tbe City of Chula Vista. While tbis form has been approved in general as
of tbe date hereof by tbe parties, it may be subject to minor changes and adjustments as necessary to
conform to tbe actual agreement of tbe parties at tbe time of payment for and delivery of tbe Bonds.
(However, no material changes will be made to tbe Agreement without tbe written consent of tbe
successful bidder for tbe Bonds.)
- Appendix IV -- Page I -
-I
CITY OF CHULA VISTA
ASSESSMENT DISTRICT NO. 90-3
LIMITED OBLIGATION IMPROVEMENT BONDS
SECURITY ENHANCEMENT AGREEMENT
THIS AGREEMENT is made and entered into this day of
, 1991, by and among the City of Chula vista
("city"), and EastLake Development Company, a California limited
partnership ("Owner").
RECITALS
1. The City Council of the City (the "Legislative Body") has
heretofore undertaken proceedings to form an assessment district
designated as Assessment District No. 90-3 (EastLake Greens - Phase
I) (the "District") pursuant to the terms and provisions of the
"Municipal Improvement Act of 1913", being Division 12 of the
Streets and Highways Code of the State of California (the "Act"),
for the purpose of financing certain public facilities ("PUblic
Facilities") as described in that certain document entitled
"Modified Final Engineer'S Report, city of Chula vista Assessment
District 90-3, EastLake Greens Phase I Assessment District
(Acquisition)" (the "Report"), approved by the Legislative Body on
July 9, 1991, the original of which is on file in the Office of the
City Clerk of the City.
2. The parties hereto now desire to provide for the issuance
of the City of Chula Vista, Assessment District No. 90-3, Limited
Obligation Improvement Bonds, in the aggregate principal amount not
to exceed $22,352,427.00 (the "Bonds") for the purpose of financing
the acquisition or construction of the District's portion of the
Public Facilities.
3. Because the current appraised value to assessment lien
ratio of property assessed to finance the Public Facilities is less
than the three to one (3:1) ratio required by city policy and a
significant assessment obligation is against a portion of the
District that is owned by Owner for development and sale to the
public, prudent and sound underwriting and public issuer standards
dictate that the parties hereto provide methods for enhancing the
security for the proposed Bonds.
4. The parties hereto, therefore, desire to enter into this
agreement to insure the provision of adequate security for the
Bonds and to thus facilitate the marketability and acceptability of
the Bonds.
1
- Appendix IV -- Page 2 -
-
I
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Letter of Credit. Owner agrees as to all property to
which it has title within the District to pay the assessments
relative to the Bonds prior to the delinquency date for the payment
of such assessments. At any time prior to or concurrently with the
transfer of the proceeds received by the city for the Bonds to
Owner in payment of the acquisition costs of the Public Facilities,
Owner further agrees to provide a letter of credit in a form
substantially similar to that attached hereto as Exhibit "A" from
a financial institution in accordance with section 5 and acceptable
to the city. The letter of credit shall be for at least one (1)
year and have a face value equal to one hundred and three percent
(103%) of the sum of all the Deficiencies with respect to the
property or parcels listed on Exhibit "B" attached hereto. As used
herein, the terms "Deficiency" or "Deficiencies" means with respect
to a property or parcel an amount equal to three times the sum of
all special assessment and special tax liens against the property
or parcel minus the appraised value of the parcel. Owner hereby
agrees that Exhibit "B" is, as of the date of this agreement true
and correct.
The letter of credit shall be renewed by Owner annually
thereafter, or a substitute letter of credit provided, thirty (30)
calendar days prior to its expiration in an amount calculated in
accordance with the terms of this section and section 3 of this
Agreement. If Owner provides a substitute letter of credit, the
city shall return any existing letter of credit at the time of such
substitution by Owner.
The City may draw upon the full amount of the letter of
credit, or any cash deposited in lieu of a letter of credit, in the
event any of the following occurs: (i) any delinquency or default
exists on any payment of the assessments of the District levied on
property listed in Exhibit "B" hereto as amended from time to time
as provided in section 3 hereof, (ii) the letter of credit is not
renewed by, or a substitute letter of credit is not provided by,
the Owner or Transferee (as herein defined) thirty days prior to
its expiration as provided in the immediately preceding paragraph
or (iii) the issuer of the letter of credit fails at any time to
meet the criteria of section 5 hereof; provided, however, the City
will not draw on any letter of credit because of the occurrence of
an event described in phrases (i) and (iii) of the first sentence
of this paragraph unless and until the City has provided the Owner
(or Transferee) thirty (30) days written notice of its intent to
draw on the letter of credit and the Owner (or Transferee) has not
cured such event. The total amount of the letter of credit shall
be drawn at the time a draw is made.
If the full amount of the letter of credit is drawn by the
City, the city shall deposit the proceeds in a redemption fund.
Thereafter, amounts in said fund shall be used to redeem Bonds at
2
- Appendix IV -- Page 3 -
I
the earliest date practicable and to the greatest extent possible.
The Director of Finance of the city and his or her designated
representatives are hereby authorized by the city to draw on the
letter of credit and provide for the reduction and termination of
any letter of credit as may be required and according to the terms
of this Agreement. Owner shall bear all costs associated with
posting any letter of credit.
2. Substitution. If the property owned by Owner is sold or
transferred in its entirety by Owner, a letter of credit on the
same terms specified hereinabove and hereinafter may be furnished
by the purchaser or transferee (the "Transferee"). The issuing
financial institution and the form and terms of said letter of
credit will be subject to reasonable prior approval by the Director
of Finance of the City and his or her designated representatives.
All terms provided in this Agreement are applicable to the
Transferee. In the event the Transferee fails or refuses to
deliver a substitute letter of credit, the letter of credit with
Owner as the account party shall be maintained.
3. Reduction and Termination. The letter of credit provided
by Owner and any other letter of credit required by this Agreement
from a transferee may be reduced or terminated annually on July 1
of each year as specifically hereinafter set forth upon the
occurrence of the fOllowing event: If it can be established by an
independent appraisal performed by a qualified MAl appraiser
approved by the City, which approval shall not be unreasonably
withheld, that the fair market value of any property or parcel in
the District listed in Exhibit "B" hereto is equal to or exceeds
three (3) times the sum of the property or parcel's current and
prior special assessments and the capitalized value of special
taxes, the property or parcel in question shall be released from
the letter of credit requirement regarding said property or parcel
and the letter of credit then outstanding shall be proportionately
reduced. Such proportionate reduction shall be in an amount equal
to 103% of such parcel's Deficiency as set forth in Exhibit "B".
The city shall accept a letter appraisal with appropriate
supporting documentation for purposes of such appraisal.
Upon receipt of the appraisal described hereinabove, the City
shall promptly review the valuation made therein and shall notify
the Owner of its approval thereof on or before July 1 of each year,
which approval shall not be unreasonably withheld. concurrently
with its approval of the MAl appraisal, the City shall execute an
amendment to Exhibit "B" to delete any parcels which no longer have
a Deficiency and shall provide notice to the provider of the letter
of credit of the reduction.
4. Additional Debt. Property Owner will not initiate,
consent in writing to, or in any way cooperate in the issuance of
additional publicly financed debt resulting in a special tax or
3
- Appendix IV -- Page 4 -
I
assessment being levied on the property subject to the assessment
being levied for the payment of the Bonds if such additional debt
would result in publicly financed debt on the property in excess of
one third the value of the property.
5. Terms of Letters of Credit. Any letter of credit posted
pursuant to this Agreement shall be an irrevocable, unconditional
letter of credit with a term of not less than one year. The
financial institution issuing any letter of credit shall, at the
time of the issuance thereof and at all times thereafter, be a
domestic bank and shall be rated "A" or better by Moody's Investor
Service or Standard & Poor's. All cash balances, or additional
securities, or obligations directly pledged as collateral for the
letter of credit shall be invested at a yield which is equal to or
less than the yield on the Bonds and the Developer shall provide to
or cause to be provided to, the city evidence of compliance with
such investment limitation.
6. Cash Deposits. The Owner may at any time deposit cash in
lieu of a letter of credit as hereinafter provided. Any cash
deposit provided for herein shall be deposited to the credit of,
and in the name of, the City in a bank account designated by the
City. All accrued interest shall be paid to the party providing
same on the first day of each calendar year quarter. The maximum
interest rate earned on such deposit shall not be permitted to
exceed the "yield" on the Bonds as such term is defined in the
Internal Revenue Code of 1986.
7. Replacement of Cash Deposits or Letter of Credit. Any
letter of credit or cash deposit posted with the City pursuant to
the provisions of this agreement may be replaced at any time, with
five (5) business days notice, by a letter of credit subject to the
same terms and conditions and in the same amount as the substituted
letter of credit or cash deposit. Upon receipt of such replacement
letter of credit, the City shall concurrently return the
substituted letter of credit or cash deposit to the person or
entity posting such letter of credit or making the cash deposit.
8. Assiqnment. This Agreement shall be binding upon the
heirs, successors and assigns of the parties hereto.
9. Amendments. This Agreement may not be amended except by
written instrument executed by the parties hereto.
10. Attorney's Fee's. Should any action be brought in any
court of competent jurisdiction, the prevailing party in such
action shall be entitled to recover all reasonable attorney's fees
and court costs incurred in connection with such litigation.
4
- Appendix IV -- Page 5 -
"I
IN WITNESS WHEREOF, this agreement was executed by the authorized
representatives of the parties hereto on the date first hereinabove
written.
CITY OF CHULA VISTA
By:
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM AND LEGAL ADEQUACY:
City Attorney
EASTLAKE DEVELOPMENT COMPANY
a California limited partnership
By:
5
- Appendix IV -- Page 6 -
I
BOARD OF PORT COMMISSIONERS
CHAIRMAN OF THE BOARD
July 18, 1991
The Honorable Tim Nader
Mayor, City of Chula Vista
276 4th Avenue
Chula Vista, CA 91910
Dear Mayor Nader,
On June 18, 1991, the Board of Port Commissioners adopted
a policy to formally create an Equal Opportunity Advisory
Committee. As stated in the new Policy, it is the Board's intent that
the Equal Opportunity Advisory Committee (EOAC) reflect the
diversity of our community through the maximum representation of
both ethnic minorities and women. A copy of the adopted policy is
enclosed.
Five of the eight committee appointments to the EOAC are to
be made by the City Councils of the District's member cities. The
Policy provides for the January appointment of those committee
members. Since there are but a few months remaining in this
calendar year, it is suggested this first appointment be for
17 months, expiring December 31, 1992. Member City Councils
would then make yearly appointments (or reappointments)
commencing in January 1993.
The Board invites you to submit the name of your City's
appointee to the Equal Opportunity Advisory Committee. It is hoped
all appointments could be made by August 30, 1991. If you would
like additional information regarding the Committee, feel free to
contact me; Commissioner Graves, Committee Chair; or Elizabeth
Moore-Stump, the District's DBE Liaison and Affirmative Action
Officer. All may be reached at 291-3900.
I look
your appoin
respond
forward to hearing from you soon and working with
'. rt's continuing efforts to solicit input, and
he minority and women communities.
~
nrrnl/"D Respectfully,
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Enclosure '''':'''7-'-,-:.':,), -~'
ROBERT PENNER, M.D.
Chairman
210--\
BPC Policy No. 500
Page 1 of 2
SAN DIEGO UNIFIED PORT DISTRICT
SUBJECT: Equal Opportunity Advisory Committee
PURPOSE: To create an Equal Opportunity Advisory Committee to the Board of Port
Commissioners (Board) to advise the Board on matters dealing with the San
Diego Unified Port District's (District) affirmative action programs,
disadvantaged business enterprise programs, and other equal opportunity
matters involving the District.
POLICY STATEMENT:
1. An Equal Opportunity Advisory Committee (Committee) shall be established.
a. Committee shall be composed of a minimum of eight members and in no
instance more than eleven members: three Port Commissioners, one of whom
shall be designated by the Chairman of Board to serve as Committee Chair; one
appointee by each of the member City Councils; and three at large members
appointed at the discretion of the Chairman of the Board of Port
Commissioners. It is the goal of the Board to achieve maximum participation
of minorities and females on the Committee; in the event that the non-
commissioner members appointed by the City Councils are not representative
of the San Diego community's ethnic population, the Chairman of the Board of
Port Commissioners will use a maximum of three at large appointees to achieve
ethnic balance for the Committee.
i) Commencing in 1991, anc:1 each year th~reafter, non-commlSSJOner
committee members shall serve Ol:e year terms. Said one ycar term
shall commence January 1 of the year in which Committee members are
appointed by their respective City Councils.
ii) Should a Committee vacancy occur prior to the end of the scheduled
one year term, the Board shall request the City Council to appoint a
replacement for the unexpired term.
iii) The District Clerk (Clerk) shall maintain a record of the current
Committee members appointed and their term expirations.
2l"-..-2.
BPC Policy No. 500
Page 2 of 2
iv) Each January the Board shall be advised by each of the member cities'
City Councils as to who has been appointed as the representative to the
Committee. Should the appointment/reappointment of any Committee
member not be made prior to January 1, the existing member shall hold
over until such appointment/reappointment is made.
b. Committee's purpose is to: review District programs with respect to affirmative
action, disadvantaged business enterprise participation, and other equal
opportunity issues; consider making recommendations with respect to the above
referenced programs and other equal opportunity issues; and advise Board as
may be required.
c. Committee members shall receive no compensation for their services.
'd. Committee members shall be subject to filing economic disclosure statements in
accordance with the Political Reform Act and the District's Conflict of Interest
Code.
e. Committee meetings shall be noticed and open to the public. It shall be the
policy of Committee to actively solicit participation from minority and female
community members and to encourage these constituents to use Committee as
a forum for providing input on' the District's affirmative action and
disadvantaged business enterprise programs, and other equal opportunity issues.
f. Committee is advisory in nature and shall have no authority to negotiate for or
commit the District in any respect.
g. Committee shall meet at the call of its Chairman, and no less frequently than
quarterly.
h. Any recommendations endorsed by a majority of the Committee shall be
transmitted in a written report to the Board.
RESOLUTION NUMBER AND DATE: 91-205,18 June 1991
2 \"'-. - ~