HomeMy WebLinkAbout1991/06/11 Item 9
COUNCIL AGENDA STATEMENT
Item-.!t.-
Meeting Date 6/11/91
ITEM TITLE: a) Resolution I<.l4ll' Authorizing issuance of bonds,
approvi ng bond indenture and offi ci a 1 statement for an
assessment district for Assessment District No. 88-1
SUBMITTED BY:
REVIEWED BY:
b)
Resolution 1(.11~ Making award for sale of bonds, and
providing for the establishment of a redemption fund for
Assessment District No. 88-1
Resolution 11.1417 Authorizing and providing for the
security enhancement agreement for Assessment District No.
88-1 and authorizing the Mayor to execute said agreement
Resolution 1~14f" Ratifying the first amendment to the
agreement with Thomas O. Meade for project management services
for the Otay Lakes Road - Phase I assessment district and
authorizing the Mayor to execute said agreement
Director of Public WorksAJ/l)'~//
Director of Finance ~ rv
,,1
City ManagerV (4/5ths Vote: Yes___No-X-)
c)
d)
These are the cl os i ng resol ut ions for the Otay Lakes Road 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 May 14, 1991, at the public hearing, Council confirmed the assessments,
authorized the issuance of 1915 Act bonds, and authorized the advertising for
bids on the bond issue.
The amount of bonds authorized was not to exceed $8,298,367, subject to
prepayment of assessments by any property owner. Of the five property owners
involved in the assessment district, only one has indicated an intention to
payoff thei r assessments duri ng the 30-day cash payment peri od whi ch closes
June 14, 1991. The amount of bonds actually issued will be adjusted for any
cash payments received.
Sealed proposals will be received on June 11, 1991 at 11:00 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.
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Page 2, Item q
Meeting Date 6/11/91
The attached bond indenture gi ves a detail ed descri pt i on of the bonds, the
term and maximum interest rate. After the successful bidder has been
determined, this document must be executed on behalf of the City Council.
This assessment district includes improved and unimproved commercial and
i ndustri a 1 parcel s but no res i dent i allots. Most of the unimproved lots do
not meet the City's minimum requirement of a 3:1 value-to-lien ratio. letters
of credit are required for those unimproved parcel s which do not meet the
City's 3:1 requirement. All improved parcels meet or exceed the City's 3:1
criteria. There are 21 of 29 parcels for which letters of credit are required
totalling approximately $1.4 million. It is anticipated that when buildings
are constructed on these parcels, the value-to-lien ratio will meet or exceed
the City's criteria and the letters of credit will not be needed. The
security agreement executed by Eastlake Development Company outlines the
necessity, use and release of the letters of credits posted by Eastlake.
In January, 1988 the City entered into an agreement for project management
servi ces, funded by Eastl ake Development Company, re 1 at i ve to the fi nanci ng
and implementation of the improvement of Telegraph Canyon Road between Paseo
ladera and Hunte Parkway. The associated project manager's scope of work has
since been turned over to Thomas O. Meade as outl ined in a contract approved
by Council in September, 1989 by Resolution 15316. The hourly agreement, with
a maximum amount of $21,730 was based on assumpt ions of the scope of work
involved and the construction phasing of the improvements. Subsequently,
Eastlake requested and staff directed the project manager to add the financing
and implementation of the Telegraph Canyon Drainage Channel to the assessment
district project and it was necessary to alter the boundaries of the district
due to the change in the construction phasing of Telegraph Canyon Road. These
changes were outlined to Council at the April 9, 1991 meeting at which time a
new acquisition financing agreement was approved. The changes have required
the expenditure of additional time on the part of the Project Manager to bring
the assessment district to this point and to complete it in the near future.
It is recommended that the agreement be amended to increase the maximum amount
to $26,730 in order to complete the necessary work.
FISCAL IMPACT: None to the City. All bond issuance costs will be paid by
the assessment di stri ct. Eastl ake Development Company has depos ited $5,000
with the City to fund the addit i ona 1 project management costs. Thi s $5,000
will not be reimbursed by the assessment district because the publ ic hearing
has been held and the assessments levied.
WPC 5632E:AY073
<1-2.
RESOLUTION NO. ~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, AUTHORIZING ISSUANCE
OF BONDS, APPROVING BOND INDENTURE AND OFFI-
CIAL STATEMENT FOR AN ASSESSMENT DISTRICT FOR
ASSESSMENT DISTRICT NO. 88-1
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, is conducting
proceedings for the installation of certain public improvements in a special assess-
ment 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. 88-1 (OTAY LAKES ROAD, PHASE I) (hereinafter referred to as the
"Assessment Districttl); and,
WHEREAS, this legislative body has previously declared in its Resolution of Inten-
tion 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 Certificate 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 list
shall control and govern.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
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 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.
Q"3
BOND INDENTURE
SECTION 3. That the BOND INDENTURE is approved substantially in the form presented
herein, subject to modification~ 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 final form, subject to non-
material modifications as necessary and as approved by the Finance
Director, with the concurrence of Bond Counsel, 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 particulars 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 prosecute to completion foreclosure
actions regarding delinquent installments of the assessments in the
manner, within the time limits and pursuant to the terms and conditions
as set forth in the Bond Indenture as submitted and approved through the
adoption of this Resolution.
APPROVED and ADOPTED this
day of
, 1991.
MAYOR
CITY OF CHULA VISTA
STATE OF CALIFORNIA
ATTEST:
CITY CLERK
CITY OF CHULA VISTA
STATE OF CALIFORNIA
q-~
RESOLUTION NO. 1" 19 "
RESOLUTION OF THE CITY' COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, ,MAKING AWARD FOR SALE
OF BONDS, AND PROVIDING FOR THE ESTABLISHMENT
OF A REDEMPTION FUND FOR ASSESSMENT DISTRICT
NO. 88-1
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. 88-1 (OTAY LAKES
ROAD, PHASE I) (hereinafter referred to as the "Assessment District"); and,
WHEREAS, in the Resolution of Intention it was determined and declared that
should issue under the provisions of the "Improvement Bond Act of 1915",
Division 10 of the Streets and Highways Code of the State of California; and,
bonds
being
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 Assess-
ment District and should be accepted.
NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
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 interest rate and terms as Bet
bidder as on file with the transcript of
public inspection.
forth in the proposal of said
these proceedings and open for
SECTION 3. That said sale is subject to all the terms and conditions as set forth
in the Resolution of Issuance, in the Bond Indenture in its final form,
and in the accepted proposal.
APPROVED and ADOPTED this
day of
, 1991.
ATTEST'
MAYOR
CITY OF CHULA VISTA
STATE OF CALIFORNIA
CITY CLERK
CITY OF CHULA VISTA
STATE OF CALIFORNIA
q..s/ q..b
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, BEVERLY A. AUTHELET, CITY CLERK of the CITY OF CHULA VISTA, CALIFORNIA, DO HEREBY
CERTIFY that the foregoing Resolution, being Resolution No. , was duly
passed, approved and adopted by the City Council, approved and signed by the Mayor,
and attested by the City Clerk, all at the meeting of said City Council
held on the day of 1991, and that the same was
passed and adopted by the following vote:
AYES:
COUNCIL MEMBERS
NOES:
COUNCIL MEMBERS
ABSENT:
COUNCIL MEMBERS
ABSTAIN:
COUNCIL MEMBERS
EXECUTED this _____ day of
[SEAL]
q-~
, 1991, at Chula Vista, California.
CITY CLERK
CITY OF CHULA VISTA
STATE OF CALIFORNIA
RESOLUTION NO. ~
RESOLUTION OF THE CITY. COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA,. AUTHORIZING AND PRO-
VIDING FOR THE SECURITY ENHANCEMENT AGREEMENT
FOR ASSESSMENT DISTRICT NO. 88-1. AND AUTHORIZING
THE 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. 88-1 (OTAY LAKES
ROAD, PHASE I) (hereinafter referred to as the "Assessment District"); and,
WHEREAS,
should
Division
in the Resolution of Intention it
issue under the provisions of the
10 of the Streets and Highways Code
was determined and declared that
"Improvement Bond Act of 1915",
of the state of California; and,
bonds
being
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, IT IS HEREBY RESOLVED AS FOLLOWS:
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 ~ubstantially the form presented to this
meeting, with such changes as the officers executing the eame or the
City Attorney or bond counsel may approve, such approval to be conclu-
sively evidenced by the execution and delivery thereof.
APPROVED and ADOPTED this
day of
, 1991.
ATTEST:
MAYOR
CITY OF CHULA VISTA
STATE OF CALIFORNIA
CITY CLERK
CITY OF CHULA VISTA
STATE OF CALIFORNIA
1:1-1 I q- 'l,
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, BEVERLY A. AUTHELET, CITY CLERK of the CITY OF CHULA VISTA, CALIFORNIA, DO HEREBY
CERTIFY that the foregoing Resolution, being Resolution No. , was duly
passed, approved and adopted by the City Council, approved and signed by the Mayor,
and attested by the City Clerk, all at the meeting of said City Council
held on the day of 1991, and that the same was
passed and adopted by the following vote:
AYES:
COUNCIL MEMBERS
NOES:
COUNCIL MEMBERS
ABSENT:
COUNCIL MEMBERS
ABSTAIN:
COUNCIL MEMBERS
EXECUTED this _____ day of
[SEAL]
a.-~
, 1991, at Chula Vista, California.
CITY CLERK
CITY OF CHULA VISTA
STATE OF CALIFORNIA
RESOLUTION NO. It.l ~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CRULl'. VISTA RATIFYING THE FIRST AMENDMENT TO
THE AGREEMENT WITH THOMAS O. MEADE FOR PROJECT
MANAGEMENT SERVICES FOR THE OTAY LAKES ROAD -
PHASE I ASSESSMENT DISTRICT AND AUTHORIZING
THE MAYOR TO EXECUTE SAID AMENDMENT
The City Council of the City of Chula vista does hereby
resolve as follows:
WHEREAS, the City Council of the City of Chula Vista,
California, has 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. 88-1 (Otay Lakes Road, Phase I) (hereinafter
referred to as the "Assessment District"); and
WHEREAS, the City Council by Resolution No. 15316,
adopted september 26, 1989 authorized the City to retain the
service of Thomas o. Meade to provide project management services
for the study of the feasibility of the financing of the project
and to make recommendations to the City regarding the most
appropriate method for financing the specified public works of
improvement; and
WHEREAS, it was necessary for staff to request inclusion
and it is now appropriate to ratify that action by amending the
contract to include Telegraph Canyon Channel - segment 1 in the
scope of services regarding the Assessment District; and
WHEREAS, it is necessary to amend the contract to extend
the term of the contract for Task A to October 31, 1991; and
WHEREAS, it is necessary to amend the contract to
increase the total amount authorized to be expended for project
management purposes from $21,730.00 to $26,730.00 in order to
accomplish said additional services within the extended contract
period.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does resolve as follows:
Section 1.
That the above recitals are all true and
correct.
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Sect ion 2. Tha t the Fir st Amendment to the consul tan t
agreement for the project Manager which is on file in the Office
of the City Clerk is hereby ratified and approved, and the
execution thereof authorized by the Mayor and the City Clerk.
presented by
Approved as to form by
,~> ~ VL-
M. Boogaard
John P. Lippitt, Director of
Public works
8938a
C\-II>
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FIRST AMENDMENT TO AGREEMENT FOR SERVICES
THIS FIRST AMENDMENT TO AGREEMENT, entered into this
day of , 1991, by and between the CITY OF CHULA VISTA,
a municipal corporation (hereinafter referred to as "CITY"), and
THOMAS O. MEADE (hereinafter referred to as "Project Manager").
WIT N E SSE T H
WHEREAS, the City and Project Manager entered into an agreement
for project management services on September 26, 1989, in
conjunction with the anticipated improvement of Telegraph Canyon
Road, and
WHEREAS, said agreement provided for a broad range of services,
including further study of the financing and implementation of
the improvement of Telegraph Canyon Road, on an hourly rate of
compensation with a maximum total remuneration, and
WHEREAS, the actual financing and implementation of Telegraph
Canyon Road has altered significantly from the original concept,
due to changes in the construction phasing, and the scope of the
project has been expanded to include the financing of the
Telegraph canyon Drainage Channel - Segment 1, and
WHEREAS, the City's requested changes in concept and scope of
services have required the expenditure of time on the part of the
Project Manager beyond that originally estimated.
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties
involved hereto to amend the original agreement as follows:
Section 1. section lA (l)a of the original agreement is amended
to read: "Coordinate the activities of support consultants
retained by the City as it relates to the development and
implementation of financing public improvements in the OTAY LAKES
ROAD AND TELEGRAPH CANYON CHANNEL - SEGMENT 1." section lA (2)
h.2 of the original agreement is amended to read: "Ordinances and
agreements which affect the financing of OTAY LAKES ROAD AND
TELEGRAPH CANYON CHANNEL - SEGMENT 1."
Section 2. section 2A Task A of the original agreement is
amended to read: "TASK A - OTAY LAKES ROAD AND TELEGRAPH CANYON
CHANNEL - SEGMENT 1 MANAGEMENT SERVICES. Project Manager shall
complete all items listed under Task ,A on or before October 31,
1991. "
Section 3. Section 3 of the original agreement is amended to
read: "In any event, the total remuneration for services
performed pursuant to TASK A, SECTION 1 of this agreement shall
not exceed $26,730 and for services performed pursuant to TASK B,
SECTION 1 of this agreement shall not exceed $5,465 and for
services performed pursuant to TASK C, SECTION 1 of this
agreement shall not exceed $1,290.
~-\\
IN WITNESS WHEREOF, city and Project Manager have executed this
Amendment on this day of , 1991.
THE CITY OF CHOLA VISTA
PROJECT MANAGER
~D~
Thomas o. Meade
Mayor of the City of
Chu1a vista
ATTEST:
city Clerk
Approved as to form by:
city Attorney
'1_1']..../ Q...3b
COUNCIL AGENDA STATEMENT
Item 2. 0
Meeting Date i'11:!H
ITEM TITLE:
Public Hearing:
Lakes Road-Phase I
Resolution 11.170 Confirming the assessment, ordering the
improvements made, together wi th appurtenances, and approvi ng
the Engineer's "Report" in Assessment District No. 88-1 (Otay
Lakes Road, Phase I)
Assessment Di stri ct No. 88-1, Otay
SUBMITTED BY:
REVIEWED BY:
Resolution '''1''11 Authorizing certain assessment district
bonds to be sold at a public sale and directing a call for
sealed bids in Assessment District No. 88-1 (Otay Lakes Road,
Phase I)
Director of P.UbliC wo~
City Manager~~ -- (4/5ths Vote: Yes__No-X-)
On April 9,1991, Council adopted the Resolution of Intention to order the
acquisition and financing of Otay Lakes Road Phase I and a portion of the
Telegraph Canyon Drainage Channel pursuant to the Municipal Improvement Act of
1913. Council set May 14, 1991 as the date to conduct the required publ ic
hearing. The associated resolutions include confirming the assessment,
ordering the improvements, approving the engineering's report, authorizing the
sale of bonds and directing a call for sealed bids.
RECOMMENDATION: Adopt the resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The Municipal Improvement Act of 1913 requires that a public hearing be
conducted to hear testimony prior to forming an assessment district to finance
public improvements through the sale of bonds. On April 9, 1991 Council set
May 14 as the date to conduct that hearing. All owners of property within the
proposed Assessment District, which contains only non-residential land uses,
have been mailed a notice of the public hearing including the proposed
assessment to their land.
After conducting the publ ic hearing and considering any testimony presented,
the Council may choose to proceed with the district by approving the
Resolution Confirming Assessments and approving the Resolution Authorizing
Bond Sale. These actions, pursuant to the Municipal Improvement Act of 1913,
allows the financing of infrastructure improvements through sale of Assessment
District bonds with payments collected with property taxes.
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Page 2, Item '2.0
Meeting Date 5/14/91
The proposed Assessment District No. 88-1 is an acquisition Assessment
District wherein the developer has constructed the public improvements and the
City is acquiring them with funds derived from the sale of bonds. The cost of
the improvements is assessed to land within the Assessment District and paid
off by the property owners over a twenty-five year period. Property owners "
have the opt i on of payi ng off the assessment in a 1 ump sum at any time
following the public hearing.
The improvements proposed to be fi nanced by the Assessment Di stri ct i ncl ude
Otay Lakes Road Phase I between approximately Rutgers Avenue and Lane Avenue,
and the Telegraph Canyon Drainage Channel between approximately Rutgers Avenue
and the EastLake Business Center. All of the improvements have been completed.
The land to be assessed is
EastLake Village Center.
residential land.
all within the EastLake Business Center I and the
It is not proposed to levy any assessments on
The total amount proposed to be assessed to the parcel sin the Assessment
District is $8,298,367. This includes construction, engineering, design,
inspection and administration costs and other incidental costs as shown in the
following:
ACQUISITION CONSTRUCTION COSTS
Otay Lakes Road - North portion
Otay Lakes Road - Rutgers to EastLake boundary
Telegraph Canyon Channel - Phase I
Total
$ 833,176
4,770,911
230.735
$5,834,822
INCIDENTAL EXPENSES
Project Management
Assessment Engineering
Design Engineering, Survey & Staking
Construction Management
Bond Counsel
Financial Consultant
Landscape Design
Utility Engineering
Plan Check & Inspection Fees
Public Agency Project Management
Legal Fees (right-of-way)
Special Studies Engineering
Soils Engineering
Printing, Advertising, Posting of Public
Hearing Notices
Bond Printing, Servicing & Registration
Miscellaneous
2% City Administration for Channel DIF
$ 20,000
55,000
547,091
11,925
50,000
60,500
62,083
14,101
208,930
22,300
41,852
43,184
116,440
3,000
10,000
14,622
4,615
2.9 ..
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Page 3, Item
Meeting Date
2()
5/14/91
Street DIF Project Administration
2% Street DIF Program Support
Capitalized Interest
Developer Contribution
Subtotal Incidentals
4,000
130,805
110,368
(63,075)
$1,467,741
>
Bond Discount (2%)
Reserve Fund (10%)
TOTAL INCIDENTAL EXPENSES
TOTAL ASSESSED TO DISTRICT
165,967
829,837
$2,463,545
$8,298,367
Otay Lakes Road Phase I is a part of the circulation element of streets for
the Eastern Territories and as such, is also a part of the Eastern Territories
Transportation Development Impact Fee (DIF) program. It is proposed that the
DIF amount, currently $3,060 per equivalent dwell ing unit (EDU), be util ized
as the method of spreading the cost of Otay Lakes Road Phase I to the land
withi n the Assessment Di stri ct boundari es. With the bond issuance expenses
added to the DIF amount, the assessment is $3,655 per EDU. For those parcels
of land on which building permits were issued when the DIF was lower than it
is currently, the assessment wi 11 be the then current DIF pl us bond issuance
expenses.
A drainage development impact fee has also been established for the Telegraph
Canyon Drainage Channel. That fee, which is currently $3,922 per acre, is the
basis for drainage assessment in a similar manner to the Transportation DIF
descri bed above. The assessment per acre is $4,685 i ncl udi ng bond issuance
expenses. Parcels of land on which building permits were issued prior to the
establishment of the Drainage DIF will not be assessed unless EastLake
Development Company is the owner of the property and chooses to be assessed;
otherwise, they will absorb the drainage DIF costs. Only that portion of the
proposed Assessment District within the Telegraph Canyon Drainage basin will
be assessed the Drainage DIF.
The assessments proposed for most of the parcel sin the Di stri ct result in
appraised value-to-assessment ratios ranging from 1.7 to 2.96 to 1 when added
to previous Assessment District liens and the school Mello-Roos Districts.
Those parcels which are above the City policy level of 3:1 are parcels which
have buildings on them. The appraisal of the current value of the parcels is
based on vacant lots with only the publ ic improvements in place. It is
reasonable to project that when buildings are constructed on the vacant lots,
the value-to-assessment ratio will meet or exceed the City's criteria. In the
interim, EastLake Development Company will provide a letter of credit to cover
all amounts which cause any parcel to exceed the City criteria prior to the
sale of bonds.
FISCAL IMPACT: EastLake Development Company has depos i ted the one percent
Assessment District initiation charge of $82,984 with the City. That charge
will not be included as a cost of the district. All Assessment District costs
will be paid through the issuance of 1915 Act bonds.
WPC 5580E
DDS:AY073
~
'1- IS
COUNCIL AGENDA STATEMENT
Item~
Meeting Date 4/9/91
ITEM TITLE: a)
Resolution ICo'~~ Making appointments,
documents and authorizing the Mayor to
acquisition/financing agreement in a Assessment
88-1 (Otay lakes Road Phase I)
approving
execute new
District No.
"
REVIEWED BY:
b) Resolution 1~/~1 Adopting a map showing the proposed
boundaries of Assessment District No. 88-1 (Otay lakes Road,
Phase I)
I~I ~'l
c) Resolution Declaring intention to order the
install at i on of certai n improvements in a proposed assessment
district; 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 for Assessment
District No. 88-1 (Otay lakes Road, Phase I)
d) Resolution I~/~' Passing on the
Engineer, giving preliminary approval, and
place for public hearing fO\?AS ssment
(Otay lakes Road, Phas~"~~
Director of Public wor~
City Manager)t~ (4/5this Vote: Yes__No~)
"report" of the
setting a time and
District No. 88-1
SUBMITTED BY:
On June 20, 1989, 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, for the
financing of Otay Lakes Road Phase I. This item continues the formal
proceedings leading to the establishment of the Otay lakes Road Phase I
assessment district.
RECOMMENDATION: Adopt the resol ut ions and execute said agreement. Set time
and date of public hearing for May 14, 1991, at 6:00 p.m.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Tonight's action is a continuation of the proceedings initiated by City
Council on June 20, 1989, for the formation of speci a 1 Assessment Di stri ct
88-1 (Otay Lakes Road - Phase I). Through the approval of these resolutions
the following will generally be accomplished:
1. The RESOLUTION MAKING APPOINTMENTS AND APPROVING DOCUMENTS is the formal
appointment of the Director of Public Works as Superintendent of Streets,
makes other administrative appointments and approves the Amended Petition
and the new Acquisition/Financing Agreement.
g...lfD
-,,-.+-
Page 2, Item.-JL.
Meeting Date 4/9/91
2. The RESOLUTION APPROVING BOUNDARY MAP is the formal action establishing
and approving boundaries of the proposed Assessment District. The
boundary as proposed includes Eastlake Business Center Unit 1 and Village
Center Unit 3.
3. The RESOLUTION DECLARING INTENTION is the jurisdictional Resolution under
"1913 Act" proceedings, declaring intent to finance improvements through
the issuance of bonds and declaring that the improvements are a benefit
to the properties within the district. This resolution also directs the
engineer-of-work, Willdan Associates to prepare a report on the plans,
specifications, cost estimate, assessment spread of the assessable costs
and a description of the improvements. Further, it provides for the
issuance of bonds on the project.
p'
4. The RESOLUTION PASSING ON "REPORT" AND SETTING PUBLIC HEARING is the
preliminary approval of the Engineer's "Report" as required in the
previous resolution and sets date, time and place for public hearing.
In January, 1988, the City entered into an acquisition/financing agreement
with Eastlake Development Company which has since expired. A new agreement is
now before Council for approval. The agreement has been updated to include
any new City requirements and includes additional improvements to be
acquired. At the time the previous acquisition agreement was prepared, only
four lanes of the ultimate six lanes of Otay lakes Road between Rutgers Avenue
and lane Avenue were to be constructed. Subsequently, it was determined that
the full six lanes should be constructed. The increase from four lanes to six
lanes and the addition of the drainage channel from Rutgers Avenue to the
Eastlake Business Center are included in this acquisition agreement. This
modification also increased the area upon which DIF assessments could be
levied. This is the subject of the petition's amendment which adds the
Village Center Unit 3 to the area covered by the original assessment district
petition.
The public improvements proposed to be financed through the acquisition
assessment district proceedings were completed in March 1991 and include
improvements to complete the full six lanes of Otay lakes Road and the
Telegraph Canyon drainage channel. The estimated total amount proposed to be
assessed to the land in the district is $8,705,199 including $6,003,919 for
construction and $2,701,280 in expenses such as right-of-way acquisition,
design engineering and plan check costs, inspection costs, consultant fees,
city administration costs and bond reserve fund and discount allowances.
Otay lakes Road Phase I is a part of the circulation element streets for the
Eastern Terri tories and as such, is also a part of the Eastern Territori es
Transportation Development Impact Fee (DIF) program. It is proposed that the
DIF amount, currently $3,060 per equivalent dwelling unit (EDU), be utilized
as the method of spreading the cost of Otay lakes Road Phase I to the 1 and
within the assessment district boundaries. With the bond issuance expenses
added to the DIF amount, the assessment is $3,656 per EDU. For those parcels
of land on which building permits were issued when the DIF was lower than it
is currently, the assessment will be the then current DIF plus bond issuance
expenses.
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Page 3, ItemJf
Meeting Date 4/9/91
A drainage development impact fee has also been established for the Telegraph
Canyon Drainage Channel. That fee, which is currently $3,922 per acre, is the
basis for drainage assessment in a similar manner to the Transportation DIF
described above. The assessment per acre is $4,685 including bond issuance
expenses. Parcels of land on which building permits were issued prior to the
establishment of the Drainage DIF will not be assessed unless EastLake
Development Company is the owner of the property and chooses to be assessed;
otherwise, they will absorb the drainage DIF costs. Only that portion of the
proposed assessment district within the Telegraph Canyon Drainage basin will
be assessed the Drainage DIF.
The next step in the assessment district proceedings is the publ ic hearing.
Adoption of tonight's resolution will set the time and date of the public
hearing for May 14, 1991, at which time the district will be formed and the
assessments will be levied.
;Y
Attached for Council's reference are Council Agenda Statements for the January
12, 1988, and June 6, 1989 meetings at which times the consultants' contracts,
the reimbursement and acquisition agreements and original petition were
approved.
FISCAL IMPACT: The Developer has advanced all City expenses related to the
proposed assessment di stri ct. 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
$85,000 prior to the publ ic hearing. The actual amount will be based on the
Final Engineer's Report.
DDS/AY-073
WPC 5524E
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7f="3-
~~
Revised 9/21/89
RESOLUTION NO. 15316
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING AGREEMENT BETWEEN THE CITY OF CHULA
VISTA AND THOMAS O. MEADE FOR OTAY LAKES ROAD ASSESSMENT
DISTRICTS, STREET DEVELOPMENT IMPACT FEES UPDATE AND
TELEGRAPH CANYON CHANNEL FINANCE PLAN AND AUTHORIZING
THE MAYOR TO EXECUTE SAID AGREEMENT
;..-'
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, Mr. George Simpson, Ci ty Project Manager for
Development Impact Fees and Acquisition District, passed away and
it is necessary that a new project manager be retained to carry
on the work that had been anticipated to be done by Mr. Simpson
and which is beyond the staff's expertise, and
WHEREAS, staff inquired around the County for special
assessment project managers to competitively bid this contract
and follow the City policy, however, the only person to do this
kind of work was Thomas O. Meade, and
WHEREAS, staff and consul tan ts (assessment and
financing) are recommending that Thomas O. Meade be retained as a
project manager for the anticipated Otay Lakes Road assessment
districts, and street Development Impact Fees, and the financing
program of Telegraph canyon channel.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Chula vista that that certain agreement between THE
CITY OF CHULA VISTA, a municipal corporation, and THOMAS O. MEADE
for Otay Lakes Road Assessment Districts, Street Development
Impact Fees Update and Telegraph Canyon Channel Finance Plan,
dated the 26th day of September , 1989, a copy of which is
attached hereto and incorporated herein, the same as though fully
set forth herein be, and the same is hereby approved.
BE IT FURTHER RESOLVED that the Mayor of the Ci ty of
Chula Vista be, and he is hereby authorized and directed to
execute said agreement for and on behalf of the Ci ty of Chula
Vista.
Presented by
Approved as to form by
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ThO'~~~/j:,;j;-;~:~"d;~; Attorney
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t/ ~P lic Works
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Resolution
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 26th day of September!, 1989 by the following vote:
AYES: Counci 1 members: Malcolm, McCandliss, Moore, Nader Cox
NOES:
Councilmembers: None
ABSENT: Council members: None
ABSTAIN: Councilmembers: None
ATTEST
~~"I{(~k
STATE OF CALIFORNIA )
COUNTY OF SAN OIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 15316 was duly passed,
approved, and adopted by the City Council of the City of Chula Vista,
California, at a regular meeting of said City Council held on the 26th day of
Sepember, 1989.
Executed this 27th day of September ,1989.
(
9 -;to
COUNCIL AGENOA STATEMENT
Item 8
Meeting Date 9/26/89
ITEM TITLE:
Resol uti on 15316 Approvi ng agreement with Thomas O.
Meade for Otay Lakes Road Assessment Di stri cts, Street
Development Impact Fees update and Tel egraph Canyon Channel
Finance Plan
vJ'J
Director of Public Works
City Manager{
Recently Mr. George Simpson, City Project Manager for Development Impact Fees
and Acquisition Oistrictsz, passed away. It is necessary that a new project
manager be retained to carryon the work that had been anticipated to be done
by Mr. Simpson and which is beyond the staff's expertise. Staff and
consul tants (assessment and financing) are recommending that Thomas O. Meade
be retained as the project manager for these listed projects.
SUBMIffiD BY:
REVIEWED BY:
(4/5ths Vote: Yes____No~)
RECOMMENOATION: That Council adopt the resolution.
BOARDS/CO~!MISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The City had several agreements with George T. Simpson for him to act as
project manager for the acquisition districts under the 1913 Improvement Act
and 1915 Bonds Act and the for the Development Impact Fees study east of I-80S
for transportation and drainage.
HOI~ever, before the accompl i shment of all the tasks to be done under these
agreements, fk. Si mpson passed away.
Mr. Simpson was principally working as project manager for the City for these
special assessment districts and studies. The City now needs to hire a ne~1
project manager to coordinate the work of the different special consultants
(finance, assessment and bond counselor) with the developers and the City.
The projects that need a project manager as soon as possi bl e are 1 i sted
below. The fees for project manager for these projects have al ready been
approved by Council. The recommended new contract with Thomas O. Meade is for
the balance of work remaining to be done on these projects. His fee will be
the remaining balance in each case.
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Page 2, Item 8
Meeting Date 9/Zb/B9
PROJECTS TO BE ASSIGNED TO MR. MEADE UNDER THE NEW AGREEMENT:
1. Dtay lakes Road Phase I f'.om Rutgers Avenue to EastLake Business Center.
,
Agreement approved by Council on the 12th of January 1988, Resolution
13406.
Contract amount - $20,000
Balance in the account - $3,260
2. Otay lakes Road adjacent to Rancho del Rey property.
Agreement approved by Council on the 6th of December 1988, Resolution
13881.
Contract amount - $20,000
Balance in the account - $18,470
3. Development Impact Fees - Transportation update
Agreement approved on the 14th of February 1989, Resolution 13963.
Contract amount - $6,500
Balance in the account - $5,465
4. Preparation of a drainage plan and fee for Telegraph Canyon Channel
Agreement approved by Council on the 12th of January 1988, Resolution
13407
Contract amount $12,000
Balance in the amount of $1,290
For the past eight years, Mr. Meade has been the Street Superintendent for the
Engineering and Development Department at the City of San Diego. During that
peri od, he conducted numerous assessment di stri ct proceedings rangi ng from
$0.5 million to $25.0 million in value. These proceedings involved the
Mi ssi on Vall ey flood control channel, major streets, water and sewer
facilities, and residential, commercial, and industrial subdivision
improvements. Most of the di stri cts have been developer requested and have
consisted of both construction and acquisition proceedings.
(
Mr. Meade has been responsible for directing and coordinating the efforts of
both the consultant team and City staff in the preparation of studies and the
implementation proceedings. He was instrumental in the development of City
procedures and pol i cies rel ative to developer requested publ i c financing and
the post issuance administration of 1915 Act bonds.
q~ 2"L
Page 3, Item 8
Meeting Date 9/26/89
Mr. Meade has now retired from the City and is available for this work full
time. Staff has inquired among other cities and with consultants involved in
this type of work in an effort to obtain a list of qualified persons in order
to adhere to the City policy for selection of consultants. However, the only -'
available person with an appropriate background is Mr. Meade. One other
person working with the County of San Bernardino has similar expertise but he
is not wi 11 ing to 1 eave hi s present posi ti on to work full-time as project
manager for cities or counties.
The remaining projects listed in 1'1rs. Simpson's letter of assignment are
completed or are in their final stages.
FISCAL IMPACT: None. All fees associ ated with thi s agreement were approved
by Council with approval of the George T. Simpson contracts.
WPC 4564E
Of)~d
by he City Council of
Chula Vista, California
Dated
t? - gC? - -;,
Q..j.3
AGREEMENT FOR CONSULTING SERVICES
THIS AGREEMENT, entered into this 26th day of September
1989, by and between THE CITY OF CHULA VISTA, a municipal
corpora t ion (hereinaf ter ref erred to as "City"), and THOMAS O.
MEADE, doing business as MUNICIPAL FINANCE ADMINISTRATION,
(hereinafter referred to as "Project Manager").
l'
WITNESSETH
WHEREAS, the City entered into the following agreements with
GEORGE T. SIMPSON to consider the financing of certain public
improvements:
A. Otay Lakes Road improvement adjacent to Rancho del Rey
Property on December 6, 1988 Resolution 13881.
B. Otay Lakes Road phase 1 improvement on January 12, 1988,
Resolution 13406.
C. Development Impact Fee for streets update on February 14,
1989, Resolution 13962.
D. Preparation of Drainage Plan and Fee for Telegraph Canyon
Channel on January 12, 1988, Resolution 13407.
WHEREAS, GEORGE T. SIMPSON passed away in May of 1989, and
WHEREAS, the tasks listed under section I, of this agreement have
not been completed or been partially completed by George T.
Simpson as Project Manager under above listed agreements, and
WHEREAS: in order to implement the financing program of those
certain public improvements, and
WHEREAS, the City has reviewed the qualifications of THOMAS O.
MEADE as the Project Manager, and found them to be satisfactory.
NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED by and between the
parties hereto as follows:
(
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SECTION 1 MANAGEMENT SERVICES
A. OTAY LAKES ROAD-PHASE 1 AND OTAY LAKES ROAD BY RANCHO DEL REY.
(1) The Project Manager shall, throughout the implementation
of the financing of the Project, at the direction
of the City Manager or his designee:
7
(a) Coordinate the activities of support
consultants retained by the City as it
relates to the development and
implementation of financing public
improvements in the OTAY LAKES ROAD.
(b) Review report documents or studies for the
City as may be directed and required.
(c) Assist and advise the City in the
implementation of the Assessment District/
Mello-Roos District.
(d) Develop schedules and assignments necessary
for the orderly and timely processing of the
District on the Council agendas.
(e) Attend such meetings of the City Council,
City staff, developer, and other agencies as
may be required.
(f) Coordinate City staff, developer and
supporting consultants' activities for the
implementation of the Assessment District/
Mello-Roos District.
(2) The Project Manager will be responsible for providing
direction to the Supporting Consultants and to coordinate
the implementation of the following actions and tasks
which will be performed by Support Consultants retained
by the City with regard to:
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PRELIMINARY AND GENERAL TASKS
(a) Prepare a preliminary boundary map.
(b) Prepare an overlay to the preliminary
boundary map.
;
I. Dedicated open space, public easements,
and other public lands other than
streets.
2. Proposed phasing of grading and drainage
improvements.
3. Ownership of assessors parcels.
(c) Provide a description and cost estimate
with the assistance of the Developers Design
Engineer of each improvements to be included
in the District.
(d) Provide preliminary basis and methodology
for the spread of the costs of improvements
included in the Assessment District or
Community Facilities District including
incidentals.
(e) Provide a preliminary assessment/special tax
per parcel.
(f) Provide a preliminary lien ration analysis
(value of land based on best data
available).
(g) Prepare a proposed bond sale strategy.
(h) Review existing reports and data on the
proposed Project.
(
1. Environmental Impact Reports
2. Ordinances and agreements which affect
the financing of OTAY LAKES ROAD.
3. Tentative maps and other plan approvals.
4. Existing plan and specifications for
construction.
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5. Sewer, water, drainage, traffic signals
and street light requirements.
6. All other prepared and related documents.
(i) Provide 25 copies of a Report on the
Preliminary and General Tasks with
recommendations for implementation.
(j) Coordinates with the Developers Design
Engineer.
(k) Prepare a construction phasing plan for the
improvements to be constructed by the
assessment district.
Prepare an assessment district plan to
accommodate the construction phasing through
either a series of individual districts, or
subdistricts to a master assessment
district.
(3) With regard to ASSESSMENT DISTRICTS, the Project
Manager shall:
(a) Prepare petition (assemble necessary
documents)
1. Boundary Map
2. General description of improvements
3. Preliminary Title Report
4. Lenders signatures
5. Owners signatures
6. Bank appraisal
(b) Assemble Plans and Specifications for public
bidding or description and cost estimates
for an Acquisition Agreement.
(c) Prepare Engineers Report*
1. Assessment roll and diagram
(d) Prepare bond bid agreement.
~-~1
(el P~epare Resolution of Intention and
necessary documents.
1. Set public hearing date.
(f) Prepare "Official Statement"
;>-
1. Authorize advertising for bids
(g) Public Hearing
1. Approve Engineers Report
2. Confirm Assessment roll and diagram
3. Review bond.bids and sale
4. Award construction contracts
* If a Community Facilities District under the Mello-Roos
legislation is pursued rather than an Assessment District,
a Special Tax Report will be prepared instead of the
Engineer's Report.
B. FIRST AMENDMENT TO THE DEVELOPMENT IMPACT FEES -
TRANSPORTATION (UPDATE). With regard to the update of the
Transportation DIF, Project Manager shall:
(1) ANNUAL REVIEW AND UPDATE - PROJECTS
Work with the City and its consultant to review and
update each project description and cost estimate for
projects contained in Ordinance No. 2251 and address the
following related issues:
(a) SR-125
- Proposition A impact
- Inclusion of grading and right-of-way
4 or 6 lanes
(
(b) Reevaluate the need for street projects in
the County to be funded with the DIF.
(c) Impact of EASTLAKE paying the difference
between an "interim" and a "permanent" DIF.
q-2.~
(d) Completion of EAST "H" STREET.
(e) Addition of portions of Orange Avenue.
(f) Addition of line item for City
administrative costs.
"
(g) PHASE 2 Telegraph Canyon Road costs included
in DIF.
(h) Possible credit to EASTLAKE and McMILLIN for
the construction of "H" Street east of Otay
Lakes Road.
(i) Review of Resolution No.13301 and the
Interim Financing Agreement between Bonita
Long Canyon and the City.
(j) Review of Traffic Signal fees.
(2) ANNUAL REVIEW AND UPDATE - DEVELOPMENT
Will work with the City, its Consultant and property
owners to review and update the projected development
within the DIF boundary.
(3) REVISE DEVELOPMENT IMPACT FEE
Based on the information generated from items B(l) and
B(2) above, calculate a revised Development Impact Fee
for streets.
(4) REVISE ORDINANCE NO. 2251
Based on information from items BO), (2), and (3) above,
recommend revisions to Ordinance No. 2251.
(5) PERMANENT DIF REPORT
Revise the Interim Eastern Area Development Impact
Fees for Streets Report (December 1987) to a
permanent report using the information generated in
the above items.
Q-2'i
~. PREPARATION OF A DRAINAGE PLAN, ORDINANCE, AND FEE FOR
TELEGRAPH CANYON CHANNEL.
(1) The Project Manager throughout the preparation and
implementation of the Financing Plan, at the
direction of the City Manager or his designee,
shall:
(a) Coordinate the activities of support
consultants retained by the City as relates
to implementing the Scope of Work
(Attachment "A") for the preparation of the
Telegraph Canyon Drainage Fee Plan and
Ordinance.
(b) Assist and advise the City in the
preparation and implementation of the
Drainage Fee Plan and Ordinance.
(c) Attend such meetings of City Council,
Planning Commission, City staff, developer
and other agencies as may be required.
(d) Review report documents or studies for the
City as may be directed and required.
(e) Coordinate City Staff, owner/developers,
consultants, and other agencies in the
development of the Drainage Plan and
Ordinance.
(f) Arrange and schedule necessary meetings.
SECTION 2 SCHEDULE OF WORK
A.
TASK A - OTAY LAKES ROAD MANAGEMENT SERVICES
(
Project Manager shall complete all items listed
under Task A within 15 months, on or before December
31, 1990.
B.
TASK B - TRANSPORTATION DIF UPDATE. ETC.
q~
Project Manager shall complete all items listed
under Task B within 5 weeks, on or before
November I, 1989.
C. TASK C - TELEGRAPH CANYON CHANNEL DRAINAGE PLAN, ORDINANCE,
AND FEE. ETC.
Project Manager shall complete all items listed
under Task C within 4 to 6 months, on or before
April I, 1990.
SECTION 3 FEE FOR SERVICES
Project Manager shall be paid a fee based on a hourly rate of
$90.00 per hour, plus reimbursement for all out-of-pocket expenses
outside of normal office expenses, including but not limited to,
travel, printing, map preparation, aerial photography and related
documentation reproduction. All fees will be payable on a monthly
basis upon an invoice submitted by the Project Manager.
In any event, the total remuneration for services performed
pursuant to TASK A, SECTION 1 of this agreement shall not exceed
$21,730.00 and for services performed pursuant to TASK B, SECTION
1 of this agreement shall not exceed $5,465.00 and for services
performed pursuant to TASK C, SECTION 1 of this agreement shall
not exceed $1,290.00.
SECTION 4 SERVICES BY CITY
City further agrees to furnish to Project Manager, in a timely
manner, such maps, records and other documents and proceedings, or
certified copies thereof, as are available and may be reasonably
required by Project Manager in the performance of these services.
SECTION 5 CONFLICT OF INTEREST
Project Manager presently has and shall acquire no interest
whatsoever in the Rancho Del Rey Project,or Eastlake Development
Project, the subject matters of this Agreement, direct or
indirect, which would constitute a conflict of interest or give
the appearance of such conflict. No person having any such
q-~I
conflict of interest shall be employed or retained by Project
Manager under this Agreement. Project Manager specifically
certifies that neither Project Manager nor any other person
employed or retained by Project manager has performed work for or
on behalf of McMillin Development or Eastlake Development, or its
predecessor in interest. Project Manager specifically certifies,
in addition, that no promise of future employment or other
consideration of any kind has been made to Project Manager or any
employee, agent, or representative of Project Manager, by McMillin
Development or Eastlake Development, any employee, agent, or
representative of the Project Manager regarding the subject matter
of this Agreement, or any future project in which Project Manager
has an interest.
1
SECTION 6 TERMINATION OF AGREEMENT FOR CAUSE
If, through any cause, Project Manager shall fail to fulfill in a
timely and proper manner his obligations under this Agreement, or
if Project Manager shall violate any of the covenants, agreements,
or stipulations of the Agreement, City shall have the right to
terminate this Agreement by giving written notice to Project
Manager of such termination and specifying the effective date
thereof, at least five (5) days before the effective date of such
termination. In that event, all finished or unfinished documents,
data, studies, drawings, maps, reports, and other materials
prepared by Project Manager shall, at the option of City, become
the property of City and Project Manager shall be entitled to
receive just and equitable compensation for any work
satisfactorily completed on such document and other materials up
to the effective date of notice of termination, not to exceed the
amounts payable under Section 3, hereinabove.
SECTION 7 TERMINATION FOR CONVENIENCE OF CITY
(
City may terminate this Agreement at any time and for any reason
by giving written notice to Project Manager of such termination
and specifying the effective date thereof, at least thirty (30)
days before the effective date of such termination. In that
event, all finished and unfinished documents and other materials
described in Section 7, hereinabove, shall, at the option of the
City, become City's sole and exclusive property. If the Agreement
is terminated by City as provided in this paragraph, Project
Manager shall be entitled to receive just and equitable
q-3~
compensation for any satisfactory work completed on such documents
and other materials to the effective date of such termination.
Project Manager hereby expressly waives any and all claims for
damages or compensation arising under this Agreement except as set
forth in Section 3, hereinabove, in the event of such termination.
SECTION 8 ASSIGNABILITY
Project Manager shall not assign any interest in this Agreement,
and shall not transfer any interest in the same (whether by
assignment or novation), without prior written consent of City;
provided, however, that claims for money due or to become due to
Project Manager from, City under this Agreement may be assigned to
a bank, trust company, or other financial institution without such
approval. Notice of such assignment or transfer shall be
furnished promptly to City. Any assignment requiring approval may
not be further assigned without city approval.
SECTION 9 OWNERSHIP, PUBLICATION, REPRODUCTION AND USE OF MATERIAL
All reports, studies, information, data, statistics, forms, designs,
plans, procedures, systems, and any other materials or properties
produced under this Agreement shall be the sole and exclusive
property of the City. No such materials or properties produced in
whole or in part under this Agreement shall be subject to private
use, copyrights, or patent right by Project Manager in the United
States or in any country without the express written consent of the
City. City shall have unrestricted authority to publish, disclose
(as may be limited by the provisions of the Public Records Act),
distribute, and otherwise, use, copyright or patent, in whole or in
part, any such reports, studies, data, statistics, forms or other
materials or properties produced under this Agreement.
SECTION 10 INDEPENDENT CONTRACTOR
City is interested only in the results obtained, and Project Manager
shall perform as an independent contractor with sole control of the
manner and means of performing the services required under the
}
q-33
Agreement. City maintains the right only to reject or accept
Project Manager's final work product as each phase of this Agreement
is completed. Project Manager and any of Project Manager's agents,
employees, or representatives are, for all purposes under this
Agreement, an independent contractor, and shall not be deemed to be
an employee of City, and none of them shall be entitled to any
benefits to which City employees are entitled, including, but not
limited to, overtime, retirement benefits, worker's compensation
benefits, injury leave, or other leave benefits.
?'
SECTION 11 INDEMNITY
Consultant shall indemnify and hold City free and harmless from any
and all claims, losses, damages injuries, and liabilities arising
form the death or injury of any person or persons, including
employees of Consultant, or from damage or destruction of any
property or properties, caused by or connected with any negligent
error, act or omission by Consultant, his agents, subcontractors,
employees, or servants in connection with his services under this
agreement.
SECTION 12 CHANGES
City may from time to time require changes in the scope of the
services by Project Manager to be performed under this Agreement.
Such changes, including any increase or decrease in the amount of
Project Manager's compensation, which are mutually agreed upon by
City and Project Manager shall be effective as amendments to this
agreement only when in writing.
IN WITNESS WHEREOF, City and Project Manager have executed this
Agreement on this 26th day of September, 1989.
ATTEST
Vista
MANAGER
C)~
THE CIT
Mayor
Meade
Finance Administration
(
Approved as to form by
J j: iJ /~-;;<o/ ./,-~
k{.City Attorney L)
't-;<f
ATTACHMENT 'A'
SCOPE OF WORK FOR TELEGRAPH CANYON CHANNEL FINANCING PLAN
A. Preparation of a "DRAINAGE PLAN" for the Telegraph Canyon Area.
1. Drainage area boundary map.
2. Assessor's parcels and ownership map within the drainage
area.
3. Description and cost estimate of facilities proposed to be
bu i It.
4. Map showing the location of facilities proposed to be built.
Note: Alignment, hydrological and design studies with cost
estimates will be provided by the Developer.
B. Preparation of a "Drainage Fee Report".
1. Based on the "Drainage Plan" developed in A above, determine
a per acre uniform fee based on gross acres of undeveloped
land within the drainage basin less dedicated areas for
public facilities.
2. Address fee collection, development conditioning, incidental
costs, consideration in lieu of fees, and fund advances.
C. Preparation of a feasibility analysis of overlaying a Community
Facilities District (Mello-Roos) or a 1913 ACT Assessment
District to provide an alternative method for an owner/developer
to pay Drainage Fees with bond proceeds and advance the
construction of needed drainage facilities.
D. Attend meetings as required with staff and Council/Board of
Supervisors.
)
't.35
(
(
LETTER OF ASSIGNMENT
----------
.~ "." ~- ,. ---
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.:........
I, Mary Simpson do hereby assign all interests in the following
agreements between George T. Simpson and the City of Chula Vista to
Thomas O. Meade, d.b.a. Municipal Finance Administration:
1. Chula Vista Street Financing Plan, Res. Nos. 12876 and 13962
2. East 'H' Street Assessment District, Res. No. 12792
3. Telegraph Canyon Road Assessment District, Res. No. 13406
4. East Chula Vista Development Impact Fee, Res. No. 12875
5. Otay Lakes Road Assessment District, Res. No. 13881
6. Eastlakes I Expansion Area Public Facilities Financing Plan, Res.
No. 13139
7. Telegraph Canyon Road Drainage Fee Study, Res. No. 13407
8. Implementation of the Growth Management Plan, Res. No. 13492
~~
Mary Simpson
~ I'/.. /'1%..1_
Date
,
q - 310
BOND INDENTURE
This Bond Indenture (the "Indenture")- dated as of June 11, 1991, entered into and
approved by the City of Chu1a Vista (the "Issuer"), a municipal corporation, to
establish the terms and conditions pertaining to the issuance of bonds in a special
assessment district known and designated as ASSESSMENT DISTRICT NO. 88-1 (OTAY LAKES
ROAD, PHASE I) (the "Assessment District").
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
Issuance, Designation and Amount. Pursuant to the provisions of the
"Improvement Bond Act of 1915", being Division 10 of the Streets and
Highways Code of the State of California, as amended (the "Act"), the
I ssuer does hereby authorize the issuance of bonds to represent unpaid
assessments within the Assessment District in principal amount deter-
mined pursuant to Section 2 but in any event not to exceed $8,298,367.00
and designated as the City of Chu1a Vista, Assessment District No. 88-1
(Otay Lakes Road, Phase I) Limited Obligation Improvement Bonds (the
"Bonds").
Unpaid Assessments.
of the 3D-day cash
are unpaid and the
8621 of the Streets
The Issuer shall, immediately upon the completion
collection period, determine the assessments which
aggregate amount thereof as authorized by Section
and Highways Code of the State of California.
Term of Bonds. Bonds to represent the unpaid assessments, and bear
interest at a rate not to exceed the current legal maximum rate of 12%
per annum, will be issued in the manner provided in the Act, the last
installment of which Bonds shall. mature a maximum of and not to exceed
twenty-four (24) years from the second day of September next succeeding
twelve (12) months from their date. The provisions of Part 11.1 of the
Act, providing an alternative procedure for the advance payment of
assessments and the calling of Bonds shall apply.
Registered Bonds. Said Bonds shall be issuable only as fully regis-
tered Bonds in the denomination of $5,000, or any integral multiple
thereof, except for one bond maturing in the first year of maturity,
which shall include the amount by which the total issue exceeds the
maximum integral multiple of $5,000 contained therein.
Date of Bonds. All of said Bonds shall be dated June 17, 1991, or the
31st day after recordation of the assessment roll and diagram, which-
ever is later, and interest shall accrue from that date.
Maturity and Denomination. The Bonds shall be issued in serial form
with annual maturities on September 2nd of every year succeeding twelve
(12) months after their date, until the whole is paid. The amount
maturing each year shall be such as to result in approximately equal
annual debt serv ice dur ing the term of the issue considering the
interest rate and/or rates and principal amounts maturing in the
respective years of maturity, and the Issuer shall, immediately upon
completion of the cash collection period, prescribe the denominations
of the Bonds, which shall be in convenient amounts, not necessarily
equal, and shall further provide for their issuance and delivery.
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SECTION 7.
SECTION 8.
Interest. Interest is payable each March 2 and September 2 (each being
an interest payment date), commencing March 2, 1992. Each Bond shall
be of a single maturity and' shall bear interest at the rate as Bet
forth in the accepted bid proposal for said Bonds from the interest
payment date next preceding the date on which it is authenticated and
registered, (1) unless said Bond is authenticated and registered as of
an interest payment date, in which case it shall bear interest from
said interest payment date, (ii) unless said Bond is authenticated and
registered prior to the first interest payment date, in which case it
shall bear interest from its date, or (iii) unless interest is in
default on said Bond on such date, in which case it shall bear interest
from the last date on which interest was paid in full, until payment of
its principal sum has been discharged.
Place of Payment. The principal on the Bonds shall be payable in
lawful money of the United States of America upon surrender of the Bond
at the Los Angeles office of Bank of America National Trust and Savings
Association, the designated registrar, transfer agent and paying agent
of the Issuer ("Paying Agent"), or such other registrar, transfer agent
or paying agent as may be designated by subsequent Resolution of the
Issuer.
Interest on said Bonds shall be paid by check or draft to the regis-
tered owner thereof at his address as it appears on the books of regis-
tration, or at such address as may have been filed with the Paying
Agent for that purpose, as of the 15th day immediately preceding said
interest payment date.
SECTION 9. Redemption. This Bond, or a po,rtion thereof if issued in a denomina-
tion greater than $5,000, shall be subject to redemption and payment in
advance of maturity in increments of $5,000 as provided in section 8768
of the streets and Highways Code, on the 2nd day of March or September
in any year, by giving the notice at least 30 days written provided in
said law to the registered owner thereof at his address as it appears
on the books of registration and by paying principal of and accrued
interest on such redeemed amount, together with a premium equal to
three percent (3%) of the redeemed principal amount. If less than the
entire Bond is redeemed, the unredeemed portion shall be reissued to
the registered owner thereof. The Bonds shall be subject to refunding
pursuant to Division 11.5 of the Streets and Highways Code of the State
of California on or after (but not prior to) September 2, 1995.
SECTION 10. Transfer of Registered Bonds. Any fully registered Bond may, in accor-
dance with its terms, be transferred upon the books of registration
required to be kept pursuant to the provisions of Section 11 by the
owner in whose name it is registered, or by his duly authorized
attorney or legal representative, upon surrender of such fully regis-
tered Bond for registration of such transfer, accompanied by delivery
of a written instrument of transfer in a form approved by the Paying
Agent and by the owner of said Bonds, duly executed.
SECTION 11. Exchange of Registered Bonds. Fully registered Bonds may be exchanged
at the office of the Paying Agent for a like aggregate principal amount
of Bonds of the same interest rate and maturity, subject to the terms
q _ ~%' 2
and conditions provided in the system of registration for registered
debt obligations, including the payment of certain charges, if any,
upon surrender and cancellation of this Bond. Upon such transfer and
exchange, a new registered Bond, or Bonds of any authorized denomination
or denominations of the same maturity for the same aggregate principal
amount will be issued to the transferee in exchange therefor.
SECTION 12. Books of Registration. There shall be kept by the Paying Agent
sufficient books for the registration and transfer of the Bonds and,
upon presentation for such purpose, the Paying Agent shall, under such
reasonable regulations as it may prescribe, register or transfer or
cause to be registered or transferred, on said register, Bonds as
hereinbefore provided.
SECTION 13. Execution of Bonds. The Bonds shall be executed in facsimile by the
Treasurer and by the City Clerk, and the corporate seal shall be
imprinted in facsimile on the Bonds. The Bonds shall then be delivered
to the Paying Agent for authentication and registration. In case an
officer who shall have signed or attested to any of the Bonds by
facsimile or otherwise shall cease to be such officer before the
authentication, delivery and issuance of the Bonds, such Bonds
nevertheless may be authenticated, delivered and issued, and upon such
authentication, delivery and issue, shall be as binding as though those
who signed and attested the same had remained in office.
SECTION 14. Authentication. Only such of the Bonds as shall bear thereon a certifi-
cate of authentication substantially in the form below, manually
executed by the Paying Agent, shall be valid or obligatory for any
purpose or entitled to the benefits of this Indenture, and such
certificate of the transfer agent and registrar shall be conclusive
evidence that the Bonds so authenticated have been duly executed,
authenticated and delivered hereunder, and are entitled to the benefits
of this Indenture.
FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This bond has been authenticated and registered.
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION
as Transfer Agent, Registrar and Paying Agent
By:
Date:
SECTION 15. Negotiability, Registration and Transfer of Bonds. The transfer of any
Bond may be registered only upon such books of registration upon surren-
der thereof to the Paying Agent, together with an assignment duly
executed by the owner or his attorney or legal representative, in satis-
factory form. Upon any such registration of transfer, a new Bond or
Bonds shall be authenticated and delivered in exchange for such Bond,
in the name of the transferee, of any denomination or denominations
author ized by this Indenture, and in an aggregate principal amount
equal to the principal amount of such Bond or principal amount of such
q..!>C\
3
Bond or Bonds so surrendered. In all cases in which Bonds shall be
exchanged or transferred, the Paying Agent shall authenticate at the
earliest practical time, Bonds ,in accordance with the provisions of
this Indenture. All Bonds surrendered in such exchange or registration
of transfer shall forthwith be cancelled. The Paying Agent may make a
charge for every such exchange or registration of transfer of Bonds
sufficient to reimburse it for any tax or other governmental charge
required to be paid with respect to such exchange or registration of
transfer. No transfer of fully registered Bonds shall be required to
be made between the fifteenth (15th) day next preceding each interest
payment date, nor during the fifteen (15) days preceding the selection
of any Bonds for redemption prior to the maturity thereof, nor with
respect to any Bond which has been selected for redemption prior to the
maturity thereof.
SECTION 16. Ownership of Bonds. The person in whose name any Bond shall be regis-
tered shall be deemed and regarded as the absolute owner thereof for
all purposes, and payment of or on account of the principal and redemp-
tion premium, if any, of any such Bond, and the interest on any such
Bond, shall be made only to or upon the order of the registered owner
thereof or his legal representative. All such payments shall be valid
and effectual to satisfy and discharge the liability upon such Bond,
including the redemption premium, if any, and interest thereon, to the
extent of the sum or sums so paid.
SECTION 17. Mutilated, Destroyed, Stolen or Lost Bonds. In case any Bond secured
hereby shall become mutilated or be destroyed, stolen or lost, the
Issuer shall cause to be executed and authenticated a new Bond of like
date and tenor in exchange and substitution for and upon the cancella-
tion of such mutilated Bond or in lieu of and in substitution for such
Bond mutilated, destroyed, stolen or lost, upon the owner's paying the
reasonable expenses and charges in connection therewith, and, in the
case of a Bond destroyed, stolen or lost, his filing with the Paying
Agent and Issuer of evidence satisfactory to them that such Bond was
destroyed, stolen or lost, and of his ownership thereof, and furnishing
the Paying Agent and Issuer with indemnity satisfactory to them.
SECTION 18. Cancellation of Bonds. All Bonds paid or redeemed, either at or before
maturity, shall be cancelled upon the payment or redemption of such
Bonds, and shall be delivered to the Paying Agent when such payment or
redemption is made. All Bonds cancelled under any of the provisions of
this Indenture shall be destroyed by the Paying Agent, which shall
execute a certificate in duplicate describing the Bonds so destroyed,
and shall retain said executed certificate in its permanent files for
the issue.
SECTION 19. Creation of Funds. The Treasurer is hereby authorized and directed to
establish the following Funds for purposes of making payment for the
costs and expenses for the works of improvement and payment of
principal and interest on the Bonds. The Funds to be created are
designated as follows:
IMPROVEMENT FUND: The proceeds from the sale of the Bonds,
deposit of required amounts in the Reserve Fund and Redemption
after
Fund,
q..40
4
shall be placed in the Fund hereby created, pursuant to Sections 10602
and 10424 of the California Streets and Highways Code, as amended,
which shall be called the "Improvement Fund", and the monies in said
Fund shall be used only for th~ purposes authorized in said assessment
proceedings, and specifically to pay for the costs and expenses of the
construction or acquisition of the authorized public capital improve-
ments, together with all incidental expenses. Any surplus in the
Improvement Fund after completion of the improvements shall remain in
the Improvement Fund for a period of not less than two (2) years from
the receipt of Bond proceeds as provided in Section 10427.1 of the
California Streets and Highways Code, and thereafter shall be utilized
or distributed as determined by the Issuer.
REDEMPTION FUND: The Treasurer is hereby authorized and directed to
keep a Redemption Fund designated by the name of the proceedings, into
which he shall place accrued interest, if any, on the Bonds from the
date of the Bonds to the date of delivery to the initial purchaser
thereof, all sums received for the collection of the assessments and
the interest thereon, together with all penalties, if applicable.
Principal of and interest on said Bonds shall be paid to the registered
owner out of the Redemption Fund so created (pursuant to Section 8671
of the California Streets and Highways Code). Accrued interest paid by
the purchaser of the BondS, if any, shall be deposited in the
Redemption Fund. In all respects not recited herein, said Bonds shall
be governed by the provisions of the Act. Under no circumstances shall
the Bonds or interest thereon be paid out of any other fund except as
provided by law.
RESERVE FUND: Pursuant to Part 16 of the Act, there shall be created a
special reserve fund for the Bonds to be designated by the name of the
Assessment District and specified as the special "Reserve Fund". An
amount equal to the Reserve Requirement (as hereinafter defined) shall
be deposited in the Reserve Fund out of the Bond proceeds derived from
the original sale of the Bonds.
Monies in the Reserve Fund shall be applied 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 reimbursed 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 maturity date of the Bonds ("Prepaid Assessment"), the
Treasurer shall credit such Prepaid Assessment with a proportionate
share of the Reserve Fund, thus reduc ing the total amount of the
Reserve Fund.
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5
C. Interest earned on the permitted investment of monies on deposit in
the Reserve Fund shall remain in the Reserve Fund so that the
amount therein may accumulate to and subsequently be maintained at
the "Reserve Requirement".. The Reserve Requirement shall be an
amount equal to the lesser of (i) the Maximum Annual Debt Service
on the Bonds, (ii) 125% of the Average Annual Debt Service on the
Bonds, or (iii) 10% of the original principal amount of the Bonds
outstanding. Annual Debt Service on the Bonds for each year ending
September 2nd shall equal the sum of (a) the interest falling due
on the outstanding Bonds in such 12 month period, assuming that the
outstanding Bonds are retired as scheduled, and (b) the principal
amount of outstanding Bonds falling due during such 12 month period.
"Average Annual Debt Service" shall mean the average Annual Debt
Service during the term of the Bonds. "Maximum Annual Debt
Service" shall mean, as computed from time to time, the largest
Annual Debt Service during the period from the date of such
computation through the final maturity of any outstanding Bonds.
D. 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 Act shall reflect credits against
each of the unpaid Assessments in the manner provided in Section
10427.1 of the Act in amounts equal to each assessment parcel's
proportionate share of any Reserve Fund disbursement.
E. 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 minimum amount required to be
maintained therein.
F. 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.
pr ior to June 30th of the fiscal year next preceding the fiscal
year in which the last unpaid assessment installment becomes due
and payable, the Treasurer 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 credited
in the manner set forth in Section 10427.1 of the Act, 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 install-
ment, then such excess shall be credited against the next to last
unpaid assessment installment.
SECTION 20. No Issuer Liability. It is hereby further determined and declared that
the Issuer will not obligate itself to advance any available funds from
its Treasury to cure any deficiency or delinquency which may occur in
the Bond Redemption Fund by failure of property owners to pay annual
special assessments. This determination shall be clearly set forth and
stated in the title of the Bonds to be issued pursuant to these proceed-
ings as authorized and required by Section 8769 of the Streets and
Highways Code of the State of California.
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SECTION 21. Covenant to Foreclose. The legislative body hereby covenants that upon
default of any assessment payment due, it will cause Superior Court
foreclosure proceedings to be brought within one hundred fifty (150)
days of such default and thereafter diligently prosecute to completion
such proceedings. Such foreclosure proceedings may be deferred if
funds are advanced to the Reserve Fund to keep said Fund continually at
the level set forth in the Section entitled "Reserve Fund" set forth
hereinabove.
SECTION 22. Covenant to Maintain Tax-Exempt Status. The Issuer covenants that it
will not make any use of the proceeds of the Bonds issued hereunder
which would cause the Bonds to become "arbitrage bonds" subject to
Federal income taxation pursuant to the provisions of Section 148(a) of
the Code, or to become "Federally-guaranteed obligations" pursuant to
the provisions of Section 149 (b) of the Code, or to become "private
activity bonds" pursuant to the provisions of Section 141(a) of the
Code. To that end, the Issuer will comply with all applicable require-
ments of the Code and all regulations of the United States Department
of Treasury issued thereunder to the extent such requirements are, at
the time, applicable and in effect. Additionally, the Issuer agrees to
implement and follow each and every recommendation provided by bond
counsel and deemed to be necessary to be undertaken by the Issuer to
ensure compliance with all applicable provisions of the Code in order
to preserve the exemption of interest on the Bonds from Federal income
taxation.
SECTION 23. Covenant Regarding Arbitrage. The Issuer shall not take nor permit or
suffer to be taken any action with respect to the gross proceeds of the
Bonds as such term is defined under the Code which, if such action had
been reasonably expected to have been taken, or had been deliberately
and intentionally taken, on the date of issuance of the Bonds, would
have caused the Bonds to be "arbitrage bonds" within the meaning of
Section 148 of the Code and the regulations promulgated thereunder.
SECTION 24. Order to Print and Authenticate Bonds. The Treasurer is hereby
instructed to cause Bonds, as set forth above, to be printed, and to
proceed to cause said Bonds .to be authenticated and delivered to an
author ized representative of the purchaser, upon payment of the
purchase price as set forth in the accepted proposal for the sale of
Bonds.
SECTION 25. Arbitrage Certificate. On the basis of the facts, estimates and circum-
stances now in existence and in existence on the date of issue of the
Bonds, as determined by the Treasurer, said Treasurer is hereby autho-
rized to certify that it is not expected that the proceeds of the issue
will be used in a manner that would cause such obligations to be
arbitrage Bonds. Such certification shall be delivered to the
purchaser together with the Bonds.
IN WITNESS WHEREOF, the Issuer has executed this Bond Indenture effective the date
first written hereinabove.
FINANCE DIRECTOR
CITY OF CHULA VISTA
STATE OF CALIFORNIA
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