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Home My WebLink About2007/08/07 Agenda Packet I decIIIw undIr penalty of perjury IhaIIIIII ImJllapd br 1M CIty of Chula Villa In" .. "1M CIty Clerk lInlI thIt I ........ .... . I II 011 tile bu...... baMI II 11 A".. " , ~ ' " -"'nl'1IIIIlIL5~ ~' '~ '*' (07 SIGNED ~~~ - - -- CITY OF CHlJLA VISTA 11 Cheryl Cox, Mayor Rudy Ramirez, Council member David R. Garcia, City Manager John McCann, Council member Ann Moore, City Attorney Jerry R. Rindone, Council member Susan Bigelow, City Clerk Steve Castaneda, Councilmember August 7, 2007 4:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . INTRODUCTION BY CITY ATTORNEY MOORE OF EMPLOYEE OF THE MONTH, TERRl ZELENIAK, LEGAL ASSISTANT . OATH OF OFFICE Human Relations Commission Member: Maria Zadorozny . PRESENTATION BY MAYOR COX OF A PROCLAMATION COMMENDING RICK ROSALER UPON 14 YEARS OF DEDICATED SERVICE TO THE CITY OF CHULA VISTA . PRESENTATION BY CONGRESSMAN FILNER OF A PROCLAMATION TO STELLA SUTTON PROCLAIMING AUGUST 7, 2007 AS STELLA SUTTON DAY IN THE 51 ST CONGRESSIONAL DISTRICT . PRESENTATION BY THE MEMBERS OF THE HISTORIC HOMEOWNER COMMITTEE, PAMELA BENSOUSSAN; GLENDA DEVANEY; CARLOS FOX; CORINNE MCCALL; IMOZELLE MCVEIGH; JIM MCVEIGH; JOHN PARKS; AND NANCY PARKS, OF A CHECK TO THE CITY FOR $25,000 DEPOSITING THE FUNDS TO THE HISTORIC RESOURCES SURVEY DEPOSIT ACCOUNT FOR THE INITIAL FUNDING FOR A COMPREHENSIVE SURVEY OF HISTORIC RESOURCES IN CHULA VISTA . PRESENTATION BY JACK BLAKELY OF THE THIRD AVENUE VILLAGE ASSOCIATION OF A CHECK TO THE CHULA VISTA ANIMAL CONTROL FACILITY FOR PROCEEDS FROM THE THIRD AVENUE PET FEST HELD ON JUNE 23, 2007 6:00 P.M. (Time Certain) OATH OF OFFICE FOR CHULA VISTA REDEVELOPMENT CORPORATION DIRECTORS: Rafael Munoz, Hector Reyes, Jr., and Salvador Salas, Jr. CONSENT CALENDAR (Items 1 through 12) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please .fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. APPROVAL OF MINUTES of the Regular Meetings of May 22, 2007, June 5, 2007 and June 12,2007, the Special Meeting of the Redevelopment Agency of June 5, 2007, and the Adjourned Regular Meeting of June 7, 2007. Staff recommendation: Council approve the minutes. 2. WRlTTEN COMMUNICATION Memorandum from Councilmember John McCarm, requesting an excused absence from the City Council Meeting of July 24, 2007. Staff recommendation: Council excuse the absences. 3. ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING PROGRAM IS-06- 013, AMENDING ZONING MAP OR MAPS ESTABLISHED BY CHULA VISTA MUNICIPAL CODE SECTION 19.18.010 TO ESTABLISH THE PRECISE PLAN MODIFYING DISTRlCT AND ADOPT PRECISE PLAN STANDARDS FOR 3.9 ACRES AT THE NORTHEAST CORNER OF THIRD A VENUE AND "H" STREET, CURRENTLY ZONED R-3 APARTMENT RESIDENTIAL (SECOND READING) The applicant, (St. Rose of Lima Catholic Parish) is requesting a phased renovation and expansion of the church campus in order to upgrade the existing facilities and provide for anticipated growth. Adoption of the ordinance approves the negative declaration and mitigation monitoring program, amends the zoning map, and adopts the precise plan standards. This ordinance was introduced at the Regular City Council meeting of July 17, 2007. (Plarming and Building Director) Staff recommendation: Council adopt the ordinance. 4. ORDINANCE OF THE CITY OF CHULA VISTA REQUIRING THE REGISTRATION OF ABANDONED RESIDENTIAL PROPERTIES (SECOND READING) Page 2 - Council Agenda httn://www.chulavistaca.!lOV August 7, 2007 Adoption of an abandoned residential property registration program is a means of ensuring that residential neighborhoods are spared the negative impacts associated with abandoned residential properties. The proposed ordinance requires lenders who own or are responsible for abandoned homes in Chula Vista to pay a fee to register those homes with the City's code enforcement section, and to retain the services of a local property management company. Registration facilitates periodic monitoring by code enforcement staff and provides a mechanism for staff and neighbors to alert the local property management company of the need to take action to maintain the property. A fee of $70 per property would be charged as a means of recovering the cost of administering the program. This ordinance was introduced at the Regular City Council meeting of July 17, 2007. (Planning and Building Director) Staff recommendation: Council adopt the ordinance. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH A FEE OF $15 FOR PASSPORT PHOTOGRAPHS FOR THE P ASSPORT ACCEPTANCE FACILITY The City Clerk's Office has received notification of its designation as a passport application acceptance agent and now must establish a fee for passport photos. (City Clerk) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A DONATION OF $25,000 FROM THE HISTORIC HOMEOWNER COMMITTEE AND DEPOSITING THE FUNDS TO THE HISTORIC RESOURCES SURVEY DEPOSIT ACCOUNT FOR THE INITIAL FUNDING FOR A COMPREHENSIVE SURVEY OF HISTORIC RESOURCES IN CHULA VISTA The Historic Homeowner Committee donated $25,000 to the City for the initial funding for a comprehensive survey of the historic resources in Chula Vista. Adoption of the resolution accepts the funds to be deposited in the Historic resources Survey deposit account and designates the funds for the use of the survey. (Office ofthe Mayor) Staff recommendation: Council adopt the resolution. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AND APPROPRIATING A DONATION FROM THE THIRD A VENUE VILLAGE ASSOCIATION (4/5THS VOTE REQUIRED) The Animal Care Facility received a donation in the amount of $2,521.51 from the Third Avenue Village Association. Staff is recommending the donation be used to purchase necessary medical and laboratory supplies. (General Services Director) Staff recommendation: Council adopt the resolution. Page 3 - Council Agenda http://www .chu lavistaca. flOY August 7, 2007 8 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A CAPITAL IMPROVEMENT PROJECT (CIP) DR-I73, THE "FIFTH AVENUE DRAINAGE IMPROVEMENT PROJECT", AUTHORIZING INTERPROJECT TRANSFERS FROM EXISTING CAPITAL IMPROVEMENT PROJECTS TO CIP DR-173 IN THE AGGREGATE AMOUNT OF $455,164 TO COMPLETE THE PROJECT, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND A WARDING THE CONTRACT FOR THE "FIFTH AVENUE DRAINAGE IMPROVEMENTS IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. DR-I73)" PROJECT TO MJC CONSTRUCTION IN THE AMOUNT OF $212,685 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE CHANGE ORDERS AS NECESSARY IN AN AGGREGATE AMOUNT NOT TO EXCEED $53,171 The proposed project provides for the construction of a drainage facility west of Fifth A venue at the intersection of Fifth A venue and Clariss Street. Six bids for this project. Adoption of the resolutions establishes the capital improvement project, accepts the bids, and awards the contract to MJ C Construction. (General Services Director) Staff recommendation: Council adopt the resolutions. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY OF CHULA VISTA TO BE THE LEAD AGENCY IN THE SOUTH BAY REGIONAL HOUSEHOLD HAZARDOUS WASTE PROGRAM, AUTHORIZING THE SUBMITTAL OF GRANT APPLICATIONS TO THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD, AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE ALL GRANT DOCUMENTS NECESSARY TO SECURE GRANT FUNDS AND IMPLEMENT THE APPROVED GRANT PROJECTS ON BEHALF OF THE CITY OF CHULA VISTA AND PARTICIPATING JURISDICTIONS In June 2007, the General Services Department submitted a regional grant application to the California Integrated Waste Management Board requesting funding for waste collection events for the South Bay Regional Household Hazardous Waste Program, which is comprised of Chula Vista, Imperial Beach and National City. The Council previously adopted a resolution approving submittal of the grant application. The Board requested that the City adopt a modified resolution authorizing the City to be the lead agency for the region. (General Services Director) Staff recommendation: Council adopt the resolution. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING THE APPOINTMENTS AND OPERATIONAL PROCEDURES OF THE INTERIM HISTORIC PRESERVATION ADVISORY COMMITTEE Page 4 - Council Agenda http://www.chulavistaca.IWV August 7, 2007 According to the membership structure presented in the Work Program approved by the Council May 22, 2007, the development related committees and commissions have appointed members, and staff has selected community members to serve on the Historic Preservation Advisory Committee. Staff has also developed operational procedures to assist the Historic Preservation Advisory Committee in the process. (Planning and Building Director) Staff recommendation: Council adopt the resolution. II. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FISCAL YEAR 2007/2008 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISITORS BUREAU PROMOTIONAL SERVICES, AND VISITOR AND TRANSIT INFORMATION SERVICES The City has contracted annually with the Chula Vista Chamber of Commerce to provide convention and visitors bureau services since 1995. According to Council Policy #230- 01, the Council considers a budget and related contract with the Chamber for the provision of Chula Vista Convention and Visitors Bureau Promotion Services, and Visitor and Transit Information Services at the Chula Vista Visitor Information Center and Chamber of Commerce Main Office. (Acting Community Development Director) Staff recommendation: Council adopt the resolution. 12. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT FROM SCRIPPS HEALTH COMMUNITY BENEFIT FUND TO CONTINUE THE DEVELOPMENT OF SENIOR WELLNESS THROUGH ACTION AND EDUCATION WITH A COLLABORATIVE BETWEEN THE NORMAN PARK CENTER AND SCRIPPS MERCY HOSPITAL CHULA VISTA WELL BEING CENTER, AND APPROPRIATING FUNDS THEREFOR (4/5THS VOTE REQUIRED) The intent of this grant, "Happy Healthy Seniors," is to expand the Recreation Department's efforts to address components of health and wellness for persons fifty and over, through health presentations, a men's support group, a health camp for seniors, supervised fitness center classes and a health fair. (Recreation Director) Staff recommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff Comments are limited to three minutes. Page 5 - Council Agenda httu ://www.chulavistaca.l!OV August 7, 2007 PUBLIC HEARINGS The following items have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 13. CONSIDERATION OF ASSESSMENT INCREASE FOR OPEN SPACE DISTRICT NOS. 3; 7; 9; 20, ZONES 2, 4 AND 7; 23; AND EASTLAKE MAINTENANCE DISTRICT NO. I ZONES A AND D On May 22, 2007, the City Council authorized the preparation of an Engineer's Report in order to consider a Proposition 218 ballot process requesting an increase to assessments in 9 of 36 existing Open Space Districts/Zones because the cost for service requirements exceeds the amount of revenue that can be generated by the current maximum assessment. The Proposition 218 process requires the holding of a public hearing and the authorization of the tabulation of the assessment ballots. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council conduct the public hearing and authorize the tabulation of the ballots. 14. CONSIDERATION OF A PROPOSED TENTATIVE SUBDIVISION MAP FOR THE CONDOMINIUM CONVERSION OF AN EXISTING 24-UNIT APARTMENT COMPLEX AT 1419 TOBIAS DRIVE (APPLICANT: ANTHONY-TAYLOR CONSULTANTS) The proposed Tentative Subdivision Map subdivides 1.628 acres into twenty-four condominium units for individual ownership at 1419 Tobias Drive. The tenant noticing required by the State and by the Municipal Code up to this point has been completed. Once all necessary approvals are obtained, the owners will notify the tenants with the remaining notices required. (Planning and Building Director) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ESTABLISHING CONDITIONS OF A TENTATIVE MAP TO DIVIDE INTEREST IN 1.628 ACRES AT 1419 TOBIAS DRIVE FOR A ONE-LOT CONDOMINIUM CONTAINING 24 RESIDENTIAL UNITS 15. CONSIDERATION OF APPROVAL OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED REFINANCE AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT PALOMAR APARTMENTS Page 6 - Council Agenda htto:/ /www.chulavistaca.gov August 7, 2007 The proposed issuance of tax exempt bond obligations would fund the refinance and rehabilitation of the Palomar Apartments located at 171 Palomar Street, an existing 168 unit affordable complex originally financed through the Department of Housing and Urban Development. The project is thirty-five years old and in need of some minor rehabilitation to ensure continued long term use and viability. (Acting Community Development Director) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCE AND REHABILITATION OF EXISTING AFFORDABLE UNITS A T PALOMAR APARTMENTS 16. CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS The Landings development will partially satisfy the master developer's affordable housing obligations for Otay Ranch Village II. Chelsea Investment Corporation was selected by the master developer to pursue development of the affordable rental housing on the R-19 site. Chelsea Investment Corporation received loan approval for State financing for the project and is ready to enter into a loan agreement with the City. (Acting Community Development Director) Staff recommendation: Council/Housing Authority conduct the public hearing and adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $960,000 FROM HOME INVESTMENT PARTNERSHIP FUNDS FOR FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE A LOAN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CIC LANDINGS, L.P. AND ALL OTHER AGREEMENTS AND DOCUMENTS NECESSARY FOR THE FINANCING OF THE PROPOSED LANDINGS AFFORDABLE APARTMENTS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AFFORDABLE HOUSING REGULATORY AGREEMENT FOR THE 115 AFFORDABLE FOR-SALE UNITS AND A NEW AFFORDABLE HOUSING AGREEMENT FOR THE 92 AFFORDABLE RENTAL UNITS IN NEIGHBORHOOD R-19 IN OTAY RANCH VILLAGE ELEVEN (4/5THS VOTE REQUIRED) Page 7 - Council Agenda http://www.ch "Iavistaca. gov August 7, 2007 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PROPOSED DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 ACTION ITEMS The Items listed in this section of the agenda will be considered individually by the Council, and is expected to elicit discussion and deliberation. If you wish to speak on any item. please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 17. CONSIDERATION OF REPORT ON THE DISPOSITION OF PAVEMENT REVITALIZATION EFFORTS ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET AND ENDORSEMENT OF STAFF'S RECOMMENDATION TO EVALUATE THIS STREET WITHIN THE CONTEXT OF THE CITY'S COMPREHENSIVE PAVEMENT MANAGEMENT SYSTEM The City has developed a comprehensive pavement management system that provides an analyses of the entire City's pavement inventory and, based upon the physical condition of the streets, the pavement condition index, and the funding available, creates lists that will form the basis for the contracting of future pavement rehabilitation projects. In 2005, inquiries were received from residents of Alpine-Minot Street between E and F, indicating they believed their street should be resurfaced and that improvements to the sidewalks should be made. City staff held site meetings and inspections as well as met with residents over the past two years. Additionally, significant repairs to sidewalk panels on the street and street resurfacing through a combination of Asphalt Rubber Aggregate Membrane and a sand seal were made. (Assistant City Manager/City Engineer, General Services Director, Public Works Operations Director) Staff recommendation: Council not approve the resolution and that future pavement treatments on the street be undertaken within the context of the City's comprehensive pavement management program. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING THE STAFF TO UNDERTAKE A PAVEMENT REHABILITATION PROJECT ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET AND TRANSFER $27,560 FROM THE TRANSPORTATION SALES TAX APPROPRIATION OF CAPITAL IMPROVEMENT PROJECT STL335, PAVEMENT REHABILITATION FISCAL YEAR 2007-2008 TO CAPITAL IMPROVEMENT PROJECT STL329, PAVEMENT REHABILITATION ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET Page 8 - Council Agenda http://www.c.hulavistaca.l?Ov August 7, 2007 18. CONSIDERATION OF RECOMMENDATIONS FROM THE SUB-COMMITTEE ON CIVIC ENGAGEMENT The Sub-Committee on Civic Engagement was appointed by the City Council to review and summarize the 49 recommendations in the Terry Amsler Report on Civic Engagement. The Committee has met twice and synthesized the report into clear and concise goals for the City to follow. They have reduced the number of recommendations for the City to implement to six important recommendations. (Planning and Building Director) Staff recommendation: Council adopt the recommendations of the Ad Hoc Committee on Civic Engagement. OTHER BUSINESS 19. CITY MANAGER'S REPORTS 20. MAYOR'S REPORTS A. Ratification of appointment of Sharon Harmon to the Nature Center Board of Trustees. B. Ratification of appointment of Jose Lopez to the Board of Appeals and Advisors. 21. COUNCIL COMMENTS Councilmember Castaneda: Ratification of appointment of Sam Longanecker to the Mobilehome Rent Review Commission. CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M Brown Act (Government Code 54957.7). 22. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) Three cases ADJOURNMENT in memory of Chula Vista resident, Staff Sergeant Joshua P. Mattera, who gave his life in service to our country, to the Regular City Council Meeting on August 14,2007 at 6:00 p.m. in the City Council Chambers. Page 9 - Council Agenda http://vvww.chulavistaca.2ov August 7, 2007 In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for :,pecific iriformation at (619) 691-5041 or Telecommunications Devicesfor the Deaf(TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired Page 10 - Council Agenda htto ://WVI.'W .chulavlstaca.IWV August 7, 2007 DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA May 22, 2007 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:07 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCarm, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: Interim City Manager Thomson, City Attorney Moore, City Clerk Bigelow, and Deputy City Clerk Bennett WELCOME AND INTRODUCTIONS BY DEPUTY MAYOR JERRY R. RINDONE Deputy Mayor Rindone welcomed and recognized Council colleagues and dignitaries present at the meeting. PLEDGE OF ALLEGIANCE TO THE FLAG LED BY JOHN WILLETT Mr. Willett led the Pledge of Allegiance. INVOCATION BY THE REVEREND DR. RICHARD FREEMAN Dr. Freeman led the invocation. INTRODUCTION OF MAYOR CHERYL COX BY ELIZABETH COX Elizabeth Cox introduced her mother, Mayor Cox. STATE OF THE CITY ADDRESS BY MAYOR CHERYL COX Mayor Cox presented the State of the City Address. At 6:38 p.m., Mayor Cox announced a recess for the reception. The meeting reconvened at 7:30 p.m. with all Councilmembers present. SPECIAL ORDERS OF THE DAY . PRESENTATION BY MAYOR COX OF A PROCLAMATION TO PUBLIC WORKS OPERATIONS DIRECTOR BYERS, PROCLAIMING THE WEEK OF MAY 20 THROUGH MAY 26, 2007 AS NATIONAL PUBLIC WORKS WEEK Mayor Cox read the proclamation, and Deputy Mayor Rindone presented it to Public Works Operations Director Byers. " {I', , f r~- CONSENT CALENDAR (Items 1 through 11) Councilmember Ramirez asked that Item I be removed from the Consent Calendar for discussion. Councilmember Castaneda asked that Item 2 be removed for discussion. Councilmember Ramirez stated he would abstain from voting on Item 3. Deputy Mayor Rindone asked that Item lObe removed for discussion. Councilmember Castaneda stated he would abstain from voting on Item 10 due to the proximity of property he owns to the Police Department. 1. This item was removed from the Consent Calendar for discussion. 2. This item was removed from the Consent Calendar for discussion. 3. RESOLUTION NO. 2007-116, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING JUNE 15, 2007 AS THE DATE BY WHICH PROPERTY OWNERS WITHIN UNDERGROUND DISTRICT NO. 133 ALONG FOURTH AVENUE FROM L STREET TO ORANGE AVENUE SHALL BE READY TO RECEIVE UNDERGROUND UTILITY SERVICE, SETTING DECEMBER 31, 2008 AS THE APPROXIMATE DATE BY WHICH POLES, OVERHEAD WIRES AND ASSOCIATED OVERHEAD FACILITIES ARE REMOVED WITHIN THE DISTRICT, AUTHORIZING THE INCREASE OF UTILITY ALLOCATION FUNDS TO APPROXIMATELY $2,967,000, AND AUTHORIZING PRIVATE UTILITY CONNECTIONS TO BE CONSTRUCTED AS PART OF THE DISTRICT In January 2002, the Council held a public hearing and established Utility Underground District No. 133 along Fourth Avenue, from L Street to Orange Avenue. Adoption of the resolution sets June 15, 2007 as the date by which property owners shall be ready to receive underground utility service; sets December 31, 2008 as the approximate date by which poles and other associated overhead structures shall be removed within the district; increases the authorization of utility allocation funds; and authorizes the private utility connections to be constructed as part of the district. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolution. 4. RESOLUTION NO. 2007-117, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AND APPROPRIATING $138,776 IN REIMBURSEMENTS FROM THE STATE OF CALIFORNIA OFFICE OF EMERGENCY SERVICES AND THE CITY OF SAN DIEGO TO OFFSET OVERTIME AND SUPPORT COSTS IN THE FIRE DEPARTMENT The Fire Department has received reimbursements in the amount of $138,776 from the State Office of Emergency Services and the City of San Diego for staff time related to strike teams that were sent as part of the mutual aid agreements to assist in statewide firefighting efforts during the 2006 fire season and the rescue team that was deployed for Hurricane Emesto. Adoption of the resolution appropriates these funds to offset overtime and facility support costs. (Fire Chief) Staff recommendation: Council adopt the resolution. Page 2 - Council Minutes hUp:/ /www.chulavistaca.gov / A- 2. May 22, 2007 CONSENT CALENDAR (Continued) 5. RESOLUTION NO. 2007-118, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FEDERAL FISCAL YEAR 2007 EMERGENCY MANAGEMENT PERFORMANCE GRANTS FUNDS IN THE AMOUNT OF $30,729 AND DIRECTING STAFF TO INCLUDE SAID FUNDS AND CORRESPONDING MATCHING FUNDS IN THE AMOUNT OF $30,729 TO THE FEDERAL GRANTS FUND EMERGENCY MANAGEMENT PERFORMANCE GRANTS PROGRAM IN THE FISCAL YEAR 2007/2008 BUDGET The County of San Diego Office of Emergency Services, which administers the Emergency Management Performance Grants Program, has notified the Fire Department of its Fiscal Year 2007 award in the amount of $30,729. Adoption of the resolution accepts these funds for use in continuing the development of the City's pre-incident planning project. (Fire Chief) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2007-119, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING FEDERAL FISCAL YEAR 2006 STATE HOMELAND SECURITY GRANT PROGRAM FUNDS IN THE AMOUNT OF $104,600 AND APPROPRIATING SAID FUNDS The County of San Diego Office of Emergency Services, which administers the State Homeland Security Grant Program, has notified the Fire Department of its Fiscal Year 2006 award in the amount of $104,600. Adoption of the resolution accepts and appropriates the funds for use in the Fire and Police Departments to purchase communication and computer equipment and to fund homeland security-related training and planning activities. (Fire Chief) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2007-120, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING VARIOUS DONATIONS IN THE AMOUNT OF $2,086 TO THE ANIMAL CARE FACILITY AND APPROPRIATING SAID DONATED FUNDS (4/5THS VOTE REQUIRED) The Animal Care Facility has received donations in the amount of $2,086 from various donors from March through April 2007. Adoption of the resolution accepts and appropriates the donations to purchase supplies as needed to provide veterinary care. (General Services Director) Staff recommendation: Council adopt the resolution. 8. RESOLUTION NO. 2007-121, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $54,777 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE FEDERAL GRANTS FUND FOR THE LAW ENFORCEMENT TERRORISM PREVENTION PROGRAM Page 3 - Council Agenda htto:llwww.chulavistaca.gov May 22, 2007 114-3 CONSENT CALENDAR (Continued) The County of San Diego Office of Emergency Services, which administers the Law Enforcement Terrorism Prevention Program for local agencies, has notified the Police Department of its Fiscal Year 2006 award in the amount of $54,777. Adoption of the resolution accepts and appropriates the funds to be used on portable radios and homeland security training. (police Chief) Staff recommendation: Council adopt the resolution. 9. RESOLUTION NO. 2007-122, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $194,114 FROM THE U.S. DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE FEDERAL GRANTS FUND FOR THE URBAN AREA SECURITY INITIATIVE GRANT PROGRAM The City of San Diego Office of Homeland Security, which administers the Urban Area Security Initiative Grant Program, has notified the Police Department of its Fiscal Year 2006 award in the amount of $194,114. Adoption of the resolution accepts and appropriates the funds to purchase chemical-resistant personal protective equipment and provide homeland security training to police officers. (Police Chief) Staff recommendation: Council adopt the resolution. 10. This item was removed from the Consent Calendar for discussion. 11. RESOLUTION NO. 2007-125, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP OF CHULA VISTA TRACT NO. 04-09, SYCAMORE ESTATES, ACCEPTING THE VARIOUS STREETS AND EASEMENTS GRANTED ON SAID MAP, APPROVING THE ASSOCIATED SUBDIVISION IMPROVEMENT AGREEMENT AND SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR THE PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENTS On April 19, 2005, the Council approved tentative map 04-09 for Sycamore Estates. Adoption of the resolution approves the final map for Sycamore Estates, located north of Main Street, between Hilltop Drive and I-80S. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolution. ACTION: Councilmember McCann moved to approve staff's recommendations and offered Items 3 through 9 and 11. Deputy Mayor Rindone seconded the motion, and it carried 5-0, except on Item 3, which carried 4-0-1 with Councilmember Ramirez abstaining. Page 4 - Council Minutes htto:1 Iwww.chulavislaca.gov IA-4 May 22, 2007 ITEMS REMOVED FROM THE CONSENT CALENDAR 1. ORDINANCE NO. 3073, ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 2.66.040 OF THE CHULA VISTA MUNICIPAL CODE TO ALLOW THE PERMITTING OF ALCOHOL DURING FACILITY RENTALS AT SALT CREEK, MONTEVALLE AND VETERANS RECREATION CENTERS AND AMENDING SECTION 2.66.015 (A) TO REDEFINE THE TERM ALCOHOLIC BEVERAGE TO INCLUDE BEER, WINE AND CHAMPAGNE ONLY (SECOND READING) Adoption of the ordinance revises the Municipal Code sections that relate to alcohol at recreation centers in order to add the three centers to the current list of authorized facilities and to limit alcohol to beer, wine and champagne. New permitting standards and fees are also proposed. First reading of the ordinance was held on May 15, 2007. (Recreation Director) Staff recommendation: Council adopt the ordinance. Councihnember Ramirez stated that the Parks and Recreation Commission had voted unanimously to oppose the item, citing concerns about police calls for service to those recreation centers that serve alcohol. Recreation Director Martin responded that, as requested by the Commission, staff would present a report to the Commission at the conclusion of one year addressing any issues. ACTION: Deputy Mayor Rindone moved to adopt Ordinance No. 3073, heading read, text waived. Councihnember McCann seconded the motion, and it carried 5-0. 2. ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING A TWO-HOUR PARKING LIMIT ALONG THE 500 BLOCK OF VANCE STREET AND UPDATING SCHEDULES VI AND XVI OF THE REGISTER MAINTAINED IN THE OFFICE OF THE CITY ENGINEER TO INCLUDE THIS TIME-LIMITED PARKING ZONE (FIRST READING) Staff received a petition signed by the residents of the 500 block of Vance Street stating that there is insufficient on-street parking and requesting that time-limited parking be implemented. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council place the ordinance on fIrst reading. Councilmember Castaneda asked when the two-hour parking would be enforced. Acting Assistant City Manager/City Engineer Tulloch replied that the restricted parking would be enforced 24 hours per day and would apply to the residents on the affected street. He further explained that a parking permit issued by the City would be required for residents to park on the street. ACTION: Councilmember Castaneda moved to approve staffs recommendation and offered the ordinance for fIrst reading, heading read, text waived. Councihnember McCann seconded the motion, and it carried 5-0. Page 5 - Council Agenda him ://www.chulavistaca.IWV May 22, 2007 IA-5 ITEMS REMOVED FROM THE CONSENT CALENDAR (Continued) 10. A. RESOLUTION NO. 2007-123, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PREPARATION OF AN ENGINEER'S REPORT TO INITIATE THE PROPOSITION 218 BALLOT PROCESS TO CONSIDER INCREASING ASSESSMENTS FOR OPEN SPACE DISTRICTS 3, 7, 9, OPEN SPACE DISTRICT 20 ZONES 2, 4, 7, OPEN SPACE DISTRICT 23, AND EASTLAKE MAINTENANCE DISTRICT 1, ZONES A AND D B. RESOLUTION NO. 2007-124, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND NBS GOVERNMENT FINANCE GROUP, DBA NBS, FOR PROPOSITION 218 BALLOT SERVICES FOR CERTAIN OPEN SPACE DISTRICTS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT The City administers and maintains 36 open space districts and associated zones. The Council previously approved the development of an effort regarding potential open space district levy increases to maintain levels of service. Adoption of the resolutions authorizes the preparation of an engineer's report, directs staff to begin the public process to propose an increase in the district assessments, and approves an agreement with NBS for 1972 Act assessment increase services. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolutions. Deputy Mayor Rindone asked staff to resume the practice of bifurcating items when a Councilmember has a conflict of interest on a portion of an item. He then requested that the ballot information to the affected property owners include information about the benefits of the proposed adjustments and the potential risks of not maintaining the open space districts if the ballot is defeated. He asked that the Council be provided with a sample ballot. Councilmember Castaneda asked that his original request to be recused from discussing and voting on this item be removed, since it was determined by the City Attorney that no conflict existed regarding the location of his property in proximity to the Police Department. Councilmember Ramirez asked staff to consider modifying the noticing to ensure that the affected residents were adequately informed about potential consequences of decreased levels of service in the open space districts. Deputy Mayor Rindone asked staff to consider conducting at least one community meeting for each open space district impacted by the election in order to allow dialogue prior to the distribution of the ballots. ACTION: Deputy Mayor Rindone offered Resolution Nos. 2007-123 and No. 2007-124, headings read, texts waived, and included in the motion direction to staff to implement Council's suggestions. Councilmember McCann seconded the motion, and it carried 5-0. Page 6 - Council Minutes htm:! !www.chulavistaca.gov May 22, 2007 IA-& . T.',.;l.,..:, .~. . .~lr-,'.ji\ . . PUBLIC COMMENTS Stephen Pavka reported that his elderly neighbors continue to feel harassed by the towing of vehicles from his neighborhood and large towing fees. Peter Watry stated that it was impossible for Community Development Department staff to remain objective about redevelopment in the City, citing the KOA project as an example where staff was unable to present a balanced, objective report, He urged the Council to find a way for staff to do their job while providing a fair hearing to affected residents. PUBLIC HEARINGS 12. CONSIDERATION OF ACCEPTANCE OF STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUNDS The Police Department was awarded $434,864 through the Supplemental Law Enforcement Services Fund. These state funds were allocated to the Police Department for purposes required by the Citizens' Option for Public Safety (COPS) Program, which requires a public hearing to accept the funds. (police Chief) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chief Emerson requested that the funds be included in the fiscal year 2008 budget for the department's over-hire program and in addressing $1.6 million in salary savings. Any additional funds would be used to offset costs associated with mid-year budget revisions to address patrol staffing needs. Mayor Cox opened the public hearing. There being no speakers, Mayor Cox closed the public hearing. ACTION: Councilmember McCann moved to adopt Resolution No. 2007-126, heading read, text waived. RESOLUTION NO. 2007-126, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $434,864 FROM THE STATE COPS SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND AND DIRECTING STAFF TO INCLUDE $434,864 IN THE FISCAL YEAR 2008 BUDGET OF THE SUPPLEMENTAL LAW ENFORCEMENT SERVICES GRANT FUND Deputy Mayor Rindone seconded the motion, and it carried 5-0. 13. CONSIDERATION OF ACCEPTANCE OF EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT FUNDS The Police Department received notice of an Edward Byrne Memorial Justice Assistance Grant award in the amount of $90,139 from the Bureau ofJustice Assistance. According to grant provisions, acceptance of the funds requires a public hearing. (police Chief) Page 7 - Council Agenda htto://www.chulavistaca.gov May 22, 2007 IA-7 > . i' PUBLIC HEARINGS (Continued) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chief Emerson explained that this funding would also be used for the over-hire program, and any remaining funds would be directed toward an additional Traffic Supervisor position. Mayor Cox then opened the public hearing. There being no speakers, Mayor Cox closed the public hearing. ACTION: Councilmember McCann moved to adopt Resolution No. 2007-127, heading read, text waived. RESOLUTION NO. 2007-127, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $90,139 FROM THE 2007 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT AND DIRECTING STAFF TO INCLUDE SAID FUNDS IN THE FISCAL YEAR 2007/2008 BUDGET OF THE JUSTICE ASSISTANCE GRANT FUND Councilmember Castaneda seconded the motion, and it carried 5-0. ACTION ITEMS 14. CONSIDERATION OF APPROVAL OF THE HISTORIC PRESERVATION WORK PROGRAM The proposed program includes the formation of an interim advisory committee, finalization of a historic preservation ordinance, a proposal for a historic resources survey, and public participation throughout the process. (planning and Building Director) Associate Planner Lopez presented the comprehensive historic preservation work program. Councilmember Castaneda asked whether staff had looked at grant funding opportunities for the proposed work program. Ms. Lopez responded that staff would be working with the City's Grants Office to seek grant funding. Peter Watry spoke in support of the proposed work program and of the importance of historical preservation in conjunction with redevelopment. Georgie Stillman spoke in support of the proposed work program and expressed the need to preserve and protect worthy historical resources, noting that implementation of the proposed program would also prevent inadvertent destruction of historical buildings. Pamela Bensoussan spoke of the many benefits and rewards that would be achieved from the proposed work program, which she believed would fulfill the goals and objectives of the General Plan and facilitate implementation of the Urban Core Specific Plan. Page 8 - COWlcil Minutes hllD:! !www.chulavistaca.gov IA-B May 22, 2007 .,,,,J...t":::~.;;:: ACTION ITEMS (Continued) Mayor Cox stated that the Mayor's Office is planning an old-fashioned ice cream social and open house in August at the Dickinson-Boal house, the proceeds of which would be used to support the program's survey work. Councilmember McCann expressed hope that staff would seek grant funding, as well as additional local donors or sponsors, and leverage the City's large pool of volunteers. ACTION: Mayor Cox moved to adopt Resolution No. 2007-128, heading read, text waived. RESOLUTION NO. 2007-128, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE HISTORIC PRESERVATION WORK PROGRAM AND AUTHORIZING STAFF TO COMMENCE WITH THE IMPLEMENTATION OF SAID WORK PROGRAM Councilmember McCann seconded the motion, and it carried 5-0. OTHER BUSINESS 15. CITY MANAGER'S REPORTS Interim City Manager Thomson reported that in accordance with the Municipal Code, no Council meeting was scheduled for May 29,2007. He also noted a budget workshop scheduled for June 7,2007, at 6:00 p.m., at the John Lippitt Public Works Center. 16. MAYOR'S REPORTS Mayor Cox mentioned three tentative dates in July for interviews for the Planning Commission, Parks and Recreation Commission, and Chula Vista Redevelopment Corporation. 17. COUNCIL COMMENTS Deputy Mayor Rindone congratulated the Police Department on its recent awards and recognition ceremony and also Mayor Cox on the recent graduation of her daughter from Boston University. He then congratulated the Chula Vista Veterans Commission and McMillin Corporation on the dedication of Wolfe Canyon Park and for remembering veterans who have given the ultimate sacrifice for our freedoms. Lastly, he congratulated the Cultural Arts Commission on the successful Taste ofthe Arts event. Councilmember McCann reported that he attended the Police Department awards and recognition ceremony. He also attended the Wolfe Canyon Park dedication, and he thanked McMillin Company and the Veterans Advisory Commission. He congratulated the Cultural Arts Commission on the success of the Taste of the Arts event, stating that the new location worked well. He suggested that next year, the booths be placed next to Third Avenue to tie in with the Third Avenue restaurants. Councilmember Ramirez shared Councilmember McCann's sentiments regarding the Police Department's awards and recognition ceremony and the Taste of the Arts event. He then thanked Mayor Cox for her comments in the State of the City Address, particularly her approach to addressing redevelopment in the southwest area of the City. Page 9 - Council Agenda httD:/ /www.chulavistaca.e:ov May 22, 2007 IA-q ADJOURNMENT At 8:56 p.m., Mayor Cox adjourned the meeting to the Regular Meeting of June 5, 2007 at 4:00 p.m. in the Council Chambers. ~ Lorraine Bennett, CMC, Deputy City Clerk - ".,.-- -- Page 10 - Council Minutes htto:llwww.chulavistaca.gov May 22, 2007 I A -10 ~..~.~- ,.. DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA June 5, 2007 4:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 4:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: Interim City Manager Thomson, Deputy City Attorney Shirey, Senior Deputy City Clerk Peoples, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . INTRODUCTION BY ENGINEERING DIRECTOR SCOTT TULLOCH OF THE EMPLOYEE OF THE MONTH, HELEN VISTRO, DEVELOPMENT SERVICES TECHNICIAN Acting Assistant City Manager/City Engineer Tulloch introduced the employee of the month, Helen Vistro. Mayor Cox then read the proclamation, and Deputy Mayor Rindone presented it to Ms. Vistro. . PRESENTATION OF GAYLE MCCANDLISS ARTS AWARD WINNERS FOR 2007, PRESENTED BY CULTURAL ARTS COMMISSIONER SARA DEA VENPORT Distinguished Service Award: Mrs. Mitsuyo Fukuda Distinguished Bravo Award: Mr. Victor Manuel Diaz (posthumous award) Rising Star Awards: Edgar Gonzalez, Angela McDuffie, and Adrian Murillo, Chula Vista High School Literary Arts Award: Deborah Halverson (Young Adult); Max Branscomb (Play Scripts) Commissioner Deavenport introduced Mitsuyo Fukuda, recipient of the Gayle McCandliss Distinguished Service Award, and Deputy Mayor Rindone presented Ms. Fukuda with a plaque. Commissioner Deavenport spoke of Victor Manuel Diaz' many accomplishments, and Councilmember McCann presented the McCandliss Bravo Award to Martha Diaz, widow of Mr. Diaz. 1-6-1 DRAFT SPECIAL ORDERS OF THE DAY (Continued) Principal Librarian Jonas introduced Deborah Halverson, recipient of the McCandliss Literary Arts Award. Councilmember Ramirez presented Ms. Halverson with a plaque. Virginia Taylor, President of the Civic Center Friends Chapter, presented her with a $100 monetary award. Ms. Jonas then introduced the second McCandliss Literary Arts Award recipient, Max Branscomb. Councilmember Castaneda presented Mr. Branscomb with a plaque, and Virginia Taylor presented him with a $100 monetary award. Commissioner Deavenport introduced the three Rising Star Award recipients, Edgar Gonzalez, Angela McDuffe, and Adrian Murillo. Deputy Mayor Rindone presented each recipient with a plaque and a $400 monetary award. Mr. Murillo thrilled the audience with an impromptu guitar solo. · PRESENTATION OF A PROCLAMATION BY MAYOR COX, PROCLAll\.1ING JUNE 3 THROUGH JUNE 9, 2007, AS MANAGEMENT WEEK IN THE CITY OF CHULA VISTA Mayor Cox read the proclamation, and Deputy Mayor Rindone presented it to Laura Baszak, President of the National Management Association Goodrich Chapter, and Gale Lewis, Candi Creel and Debbie Schwartz. CONSENT CALENDAR (Items I through 13) Mayor Cox stated that Item II would be removed from the agenda at the request of staff and continued for one week. Councilmember Ramirez stated that he would abstain from voting on Item 12. With respect to Item 2, Councilmember Castaneda submitted a letter from Mr. Fred Cowles regarding policy matters on how the ordinance would be implemented. He asked staff to follow up with a report to the Council. Councilmember McCarm stated that he would abstain from voting on Item 10. 1. APPROVAL OF MINUTES of the Regular Meeting of April 17, 2007, and Adjourned Regular Meeting of April 19, 2007. Staff recommendation: Council approve the minutes. 2. ORDINANCE NO. 3074, ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 19.58.022 OF THE CHULA VISTA MUNICIPAL CODE, ADDING AND MODIFYING DEVELOPMENT STANDARDS FOR ACCESSORY SECOND DWELLING UNITS (SECOND READING) Page 2 - Council Mioutes http://www.chulavistaca.gov June 5, 2007 I B-2 .,. ~ . ',-.j_.........; - DRAFT CONSENT CALENDAR (Continued) The Planning Commission reviewed and made recommendations on a draft ordinance amendment to Municipal Code Section 19.58.022 to add new regulations and modify some existing regulations for accessory second dwelling units on lots zoned for single- family residential use. First reading of the ordinance was held on May 1, 2007. (Planning and Building Director) Staff recommendation: Council adopt the ordinance. 3. ORDINANCE NO. 3075, ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING A TWO-HOUR PARKING LIMIT ALONG THE 500 BLOCK OF VANCE STREET AND UPDATING SCHEDULES VI AND XVI OF THE REGISTER MAINTAINED IN THE OFFICE OF THE CITY ENGINEER TO INCLUDE THIS TIME-LIMITED PARKING ZONE (SECOND READING) Adoption of the ordinance establishes a two-hour parking limit along the 500 block of Vance Street and updates register schedules maintained by the Engineering Department. First reading of the ordinance was held on May 22, 2007. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the ordinance. 4. ORDINANCE NO. 3076, ORDINANCE OF THE CHULA VISTA CITY COUNCIL AMENDING CHAPTER 2.55, SECTION 2.55.090 OF THE CHULA VISTA MUNICIPAL CODE TO REMOVE THE CITY COUNCIL MEMBERS FROM THE CVRC BOARD OF DIRECTORS (SECOND READING) Adoption of the ordinance amends the Municipal Code to remove the City Councilfrom the Chula Vista Redevelopment Corporation Board of Directors. First reading of the ordinance was held on May 24, 2007. (Acting Community Development Director/City Attorney) Staff recommendation: Council adopt the ordinange. 5. RESOLUTION NO. 2007-129, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH BOB HOFFMAN VIDEO PRODUCTIONS FOR VIDEOTAPING CHULA VISTA CITY COUNCIL MEETINGS Adoption of the resolution approves an agreement with Bob Hoffman Video Productions for videotaping City Council and Chula Vista Redevelopment Corporation meetings for televising. (Communications Director) Staff recommendation: Council adopt the resolution. Page 3 - Council Minutes http://www.chulavistaca.gov June 5, 2007 /B-3 DRAFT CONSENT CALENDAR (Continued) 6. RESOLUTION NO. 2007-130, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A CAPITAL IMPROVEMENT PROJECT ENTITLED "TRAFFIC CONGESTION RELIEF PROGRAM" (TF-354), AMENDING THE FISCAL YEAR 2007 CAPITAL IMPROVEMENT PROGRAM AND APPROPRIATING $500,000 FROM THE UNALLOCATED TRANSNET BALANCE One of the priority uses for Transnet funding is to reduce congestion and improve safety. Approximately $500,000 of costs for traffic staff related to congestion relief in Fiscal Year 2006-2007 was charged to the City's general fund. The Council adopted a resolution in May to include the allocation of $500,000 of the City's Transnet fund balance to cover staff costs. Adoption of the resolution replaces $500,000 in general fund revenue that was allocated to cover these costs. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2007-131, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ALLOCATION OF $55,000 FROM THE TRAFFIC SIGNAL FEE FUND TO CAPITAL IMPROVEMENT PROJECT (CIP) TF- 329, "TRAFFIC MANAGEMENT CENTER" FOR THE PURCHASE OF ADDITIONAL TRAFFIC SIGNAL CONTROLLER SOFTWARE LICENSES Traffic signals in the City are controlled by a variety of components and software that keep each signal running safely and efficiently, and allow City staff to perform routine maintenance and timing modifications with ease. Adoption of the resolution authorizes the allocation of funds to purchase additional software licenses that are needed for newly installed traffic signals. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolution. 8. RESOLUTION NO. 2007-132, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORTS FOR PROCEEDINGS FOR THE ASSESSMENT INCREASE FOR OPEN SPACE DISTRICT NOS. 3, 7, 9, 23, 20, ZONES 2, 4, AND 7, AND EASTLAKE MAINTENANCE DISTRICT NO. I ZONES A AND D, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING REGARDING THE PROPOSED ASSESSMENT INCREASES On May 22, 2007, the Council authorized the preparation of an engineer's report in order to consider a Proposition 218 ballot process requesting an increase to assessments in nine of 36 existing open space districts/zones because the costs for service requirements exceed the amount of revenue that can be generated by the current maximum assessment. The Proposition 218 process requires approving an engineer's report and declaring the intention to raise assessments, the mailing of a notice and ballot to each property owner within each affected open space district, the holding of a public hearing, and the tabulation of the assessment ballots. Adoption of the resolution approves the engineer's reports and the formal initiation of the balloting process. On August 7, 2007, a public hearing, followed by a tabulation of the assessment ballots, would occur so that final DRAFT CONSENT CALENDAR (Continued) 9. RESOLUTION NO. 2007-133, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2007/2008 Article XIIIB of the California Constitution, approved by the voters in 1979 and commonly referred to as the Gann Initiative, requires each local government to annually establish an appropriations limit by resolution. The purpose of the limit is to restrict spending of certain types of revenues to a level predicated on a base-year amount increased annually by an inflation factor. Adoption of the resolution establishes an appropriations limit of$511,957,324 for Fiscal Year 2007/2008. (Finance Director) Staff recommendation: Council adopt the resolution. 10. A. RESOLUTION NO. 2007-134, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CITY STAFF'S ACTION ON APPROVING CHANGE ORDERS WITH PORTILLO CONCRETE, INC. TO COMPLETE THE "OT A Y LAKES ROAD SIDEWALK IMPROVEMENTS FROM ALLEN SCHOOL TO SURREY DRIVE AND PAVEMENT REHABILITATION ON OTAY LAKES ROAD FROM BONITA ROAD TO RlDGEBACK ROAD IN THE CITY OF CHULA VISTA, CALIFORNIA" (STL-286) PROJECT B. RESOLUTION NO. 2007-135, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AN INTER-PROJECT TRANSFER IN THE AMOUNT OF $250,000 FROM THE PAVEMENT REHABILITATION CIP (STL-238) TO THE "OTAY LAKES ROAD SIDEWALK IMPROVEMENTS FROM ALLEN SCHOOL TO SURREY DRIVE AND PAVEMENT REHABILITATION ON OTAY LAKES ROAD FROM BONITA ROAD TO RlDGEBACK ROAD IN THE CITY OF CHULA VISTA, CALIFORNIA" (STL-286) PROJECT AS NECESSARY TO COMPLETE THE PROJECT (4/5THS VOTE REQUIRED) The City has a contract with Portillo Concrete, Inc. for the Otay Lakes Road sidewalk improvements and pavement rehabilitation project (STL-286). Unforeseen circumstances caused an increase in quantities for the dig-out portion of the project, beyond what was anticipated during the preparation of the project specifications, and the addition of the pavement rehabilitation at the intersection of Otay Lakes Road/Bonita Road, with which staff directed the contractor to proceed to complete the project. Adoption of the resolutions ratifies staff's action in approving the change orders and appropriates funds to cover the additional costs. (General Services Director) Staff recommendation: Council adopt the resolutions. 11. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE RESULTS OF THE MID-MANAGEMENT STUDY AND APPROVING THE CORRESPONDING COMPENSATION SCHEDULE Page 5 - Council Mioutes http://www .chulavistaca.gov 18-5 June 5, 2007 DRAFT CONSENT CALENDAR (Continued) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE RESULTS OF VARIOUS INDIVIDUAL NON-MANAGEMENT CLASSIFICATION STUDIES AND APPROVING THE CORRESPONDING COMPENSATION SCHEDULE Human Resources staff conducted a comprehensive classification and compensation study of positions in the mid-management group, consisting of 131 employees in 67 classifications. The study included a review of the work performed, scope and complexity of assignments, and overall responsibility of each position. In addition, department-initiated classification reviews were conducted on individual non- management positions represented by the Chula Vista Employees Association and Western Civil Engineers. (Human Resources Director) Staff recommendation: Council adopt the resolutions. 12. RESOLUTION NO. 2007-136, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT FOR POLICE, FIRE AND EMERGENCY MEDICAL SERVICES TO BE PROVIDED ON PORT DISTRICT LANDS WITH PAYMENT FOR THE SERVICES TO THE CITY, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY Chula Vista has provided police, fire and emergency medical services to the San Diego Unified Port District lands that do not generate ad valorem tax revenues since 1994. Adoption of the resolution approves an agreement to continue providing these services until Fiscal Year 2008-2009. (Police Chief) Staff recommendation: Council adopt the resolution. 13. RESOLUTION NO. 2007-137, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ALLOWING BEER, WINE, AND CHAMPAGNE TO BE SERVED AT MONTEVALLE RECREATION CENTER FOR THE BOARDS AND COMMISSION RECEPTION ON JUNE 18, 2007 On May 22, 2007, the Council approved the second reading of an ordinance amending Section 2.66.040 of the Municipal Code to allow beer, wine and champagne to be served during special events at several recreation centers, Montevalle being one. The ordinance takes effect 30 days after the second reading. Adoption of the resolution allows beer, wine, and champagne to be served at the Board and Commission reception being held at Montevalle Recreation Center on June 18,2007. (Office of the Mayor and City Council) Staffrecommendation: Council adopt the resolution. Page 6 - Council Minutes http://www.chulavistaca.gov June 5, 2007 18-0 DRAFT CONSENT CALENDAR (Continued) ACTION: Councilmember McCann moved to approve staffs recommendations and offered Consent Calendar Items 1 through 10, 12 and 13, headings read, texts waived. Deputy Mayor Rindone seconded the motion, and it carried 5-0, except on Item 10, which carried 4-0-1, with Councilmember McCann abstaining; and Item 12, which carried 4-0-1, with Councilmember Ramirez abstaining. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Margaret Tuite reported that she submitted a residential house check request to the Police Department's Senior Volunteer Patrol and temporarily de-listed from the City's "Are you Okay" program prior to leaving on vacation. When she returned, she found that her home had been broken into by the Police Department as a result of a call by a concerned neighbor, who had not seen Ms. Tuite in a few days. She believed that the lack of communication between the Senior Volunteer Patrol and the Police Department was inexcusable and a waste of resources. Mayor Cox referred the matter to the City Manager. Peter Watry discussed his belief that the Community Development Department is unable to conduct a fair hearing, citing examples from the May 3, 2007 Redevelopment Advisory Committee Meeting. He urged the Council to find a way for Community Development staff to do their jobs while providing the neighborhoods that would be sacrificed by redevelopment with a fair hearing. Deputy Mayor Rindone requested that the Interim City Manager release the staff memorandum to Mr. Watry describing the involvement of a variety of departments, including Community Development, in redevelopment projects. Kevin O'Neill distributed an article by James Maddison dated November 23, 1787, that referenced the differences between representative and populous forms of government. Patricia Aguilar, representing Crossroads II, said she was encouraged by the progression of public meetings on the Cummings Initiative and the positive, informal exchanges between staff and the public. She stated she was hopeful that such meetings would prove to be a model towards resolving future issues. Theresa Acerro, representing a group of concerned citizens, spoke regarding a Star News headline about the Urban Core Specific Plan (UCSP) and served the Council and Redevelopment Agency with a copy of a writ of mandate and complaint for declaratory injunctive relief to compel the City of Chula Vista and the Redevelopment Agency 1) to comply with the provisions of CEQA by fully analyzing cumulative impacts and providing all feasible and possible mitigations in a specific measurable form, prior to permitting any actions that may create negative impacts; 2) to comply with the intent and the purpose of the City's growth management ordinances; 3) to eliminate or change, so that it always lessens impacts, the exception clause adopted as "I" in Chapter 6 of the UCSP; and 4) to come up with a means of financing and an implementation plan for ongoing maintenance and bringing all streets, sidewalks, drainage, and other infrastructure up to standards prior to implementing the UCSP. She believed these actions were vital to the well-being of current and future residents and businesses in the City. She asked that all concerned citizens join in insisting that the UCSP environmental impact report be revised, and she encouraged citizens to attend an infrastructure workshop on June 6, 2007, at 6:00 p.m. in Council Chambers. Page 7 - Council Minutes http://www.chulavistaca.gov !B-7 June 5, 2007 DRAFT PUBLIC COMMENTS (Continued) Susan Luzzro spoke regarding the second dwelling unit ordinance and thanked the Council for protecting and taking into consideration the older neighborhoods in the City. PUBLIC HEARINGS 14. CONSIDERATION OF WANING MINOR IRREGULARITIES ON THE BID RECEIVED FOR THE "'MOSS STREET SEWER IMPROVEMENTS AND STREET RECONSTRUCTION BETWEEN 300 FEET EAST OF BROADWAY TO COLORADO AVENUE (ClP NO. SW-233)" PROJECT PER CITY CHARTER SECTION 1 009 On Wednesday, April 25, 2007, the General Services Director received 13 sealed bids for the project, which will improve approximately 1,800 linear feet of sewer pipe located under Moss Street, between Broadway and Colorado Avenue. The street reconstruction will provide a new, stable street section for all vehicles traveling on Moss Street. (General Services Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Mayor Cox opened the public hearing. There being no members of the audience who wished to speak, Mayor Cox closed the public hearing. ACTION: CounciImember McCann moved to adopt Resolution Nos. 2007-138 and No. 2007- 139, headings read, texts waived. A. RESOLUTION NO. 2007-138, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WANING IRREGULARITIES, ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "MOSS STREET SEWER IMPROVEMENTS AND STREET RECONSTRUCTION BETWEEN 300 FEET EAST OF BROADWAY TO COLORADO AVENUE (ClP NO. SW-233)" PROJECT TO ORTIZ CORPORATION IN THE AMOUNT OF $730,733 B. RESOLUTION NO. 2007-139, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AN INTERPROJECT TRANSFER FROM EXISTING CAPITAL IMPROVEMENT PROJECT (STL-238) "PAVEMENT REHABILITATION PROGRAM" TO THE "MOSS STREET SEWER IMPROVEMENTS AND STREET RECONSTRUCTION BETWEEN 300 FEET EAST OF BROADWAY (SW-233) IN THE AMOUNT OF $182,083 TO COMPLETE THE PROJECT AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT Councilmember Castaneda seconded the motion, and it carried 5-0. Page 8 - Council Minutes hllp:/ /www.chulavistaca.gov /8-8 June 5, 2007 " DRAFT PUBLIC HEARINGS (Continued) 15. CONSIDERATION OF A CONDITIONAL USE PERMIT (PCC-07-063) FOR CHAMPIONSHIP OFF-ROAD RACING (COOR) JUNE 8-10 AND SEPTEMBER 28- 30,2007, ROCK MOUNTAIN QUARRY LAND ADJACENT TO THE OTAY RNER VALLEY - JAMES BALDWIN, APPLICANT AND OWNER OF CHAMPIONSHIP OFF-ROAD RACING (CORR) The owner of Championship Off-Road Racing (CORR)applied for a conditional use permit for two temporary off-road racing events. Aside from the new location in the Rock Mountain Quarry, these events will be the same as the four temporary racing event weekends conducted in 2006, and two conducted in 2005 in Otay Ranch Village Two. Adoption of the resolution approves Conditional Use Permit PCC-07-063 in accordance with the findings and subject to the conditions contained therein. (Planning and Building Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Associate Planner Phelps presented an overview of the proposal. Environmental Project Manager Laube presented the environmental process undertaken for the proposed event. Mr. Phelps then discussed the operational plan requirements for the proposed event. Mayor Cox opened the public hearing. Rob Cameron, representing CORR, stated that since the last races were held locally, championship off-road racing's popularity has gone national. He explained that the proposed events would provide many benefits, including national press exposure and economic benefits, all at no cost to the City. He then addressed and clarified concerns raised during previous community hearings, and expressed confidence that the event site would create no negative environmental impacts. Pie Roque, representing the El Primero Boutique Bed and Breakfast Hotel, spoke in support of the event, stating that his business has benefited from the event, and he was excited about the financial rewards the event would bring to the City and its small businesses. Michel Dedina, representing South Bay San Diego Regional Alliance and an Imperial Beach resident, opposed the proposed events, stating that as the City becomes more urbanized, more pressure will be placed upon the Otay Regional Park for various events. He expressed concern about the youth who race their vehicles on City streets, stating that CORR is not a solution to this problem. He asked the Council to adhere to its agreement in 2001 with the County of San Diego on the conceptual plan for the Otay Valley Regional Park to provide a mix of active and passive recreational activities, while protecting environmentally sensitive areas. He then submitted a letter dated June 5, 2007, from Michael McCoy, an Imperial Beach resident, also indicating his opposition to the proposed CORR racing events. Joe Moeller, President, San Diego International Sports Council, spoke in support of the proposed events, stating that the City would receive direct economic benefits and media exposure. He urged the Council to embrace and nurture the CORR enthusiasm. Page 9 - Council Minutes http://www.chulavistaca.gov 18-9 June 5, 2007 DRAFT PUBLIC HEARINGS (Continued) Kevin O'Neill, a member of the Otay Valley Regional Park board, supported the CORR event, stating that it would offer the City an excellent opportunity for exposure. He recommended that the Council consider making the event a permanent venue. Ellen Shivlely, representing the Sierra Club, expressed concern with the quality of life, air quality, and noise associated with the proposed event, and suggested that the Council deny the conditional use permit. Lisa Johnson, representing the Corky McMillin Companies, spoke in support of the event and read into the record a letter from Mark and Scott McMillin, dated June 5, 2007, urging the Council's support of the event and issuance of the conditional use permit. Albert Verduco, a resident of Otay Ranch, spoke in support of the event and asked the Council to continue hosting it. Georgie Stillman expressed concern that the event was inappropriately proposed in a multiple species preservation area, adding that the Resource Conservation Commission voted to deny the acceptability of the reports. She stated that technical problems related to the event have not been adequately addressed, and she emphasized that wildlife in the area could not be replaced and must be rehabilitated. Jessica Johnson, a local resident, expressed strong support for the event, stating she and her son have attended all prior CORR events in the City. Lisa Cohen, CEO Chamber of Commerce, stated that the Chamber is responsible for managing the City's Convention and Visitors Bureau to promote the City as a destination. She spoke in support of the CORR event, stating that it would bring a positive economic benefit to the City by creating much-needed sales tax, transient occupancy tax revenue, and priceless media exposure. Mayor Cox referenced letters of support submitted by the Chula Vista Chamber of Commerce, Chula Vista Convention and Visitors Bureau, Holiday hm Express, Chula Vista, and a letter referred to by a previous speaker from Michael A. McCoy of Imperial Beach. There being no further members of the public who wished to speak, Mayor Cox closed the public hearing. Planning and Building Director Sandoval explained the conditional use permit processes undertaken regarding the MSCP, the mitigated negative declaration, the air quality analysis, and work done with the various wildlife agencies. Joe Monaco, consultant with Dudek and Associates, addressed some of the issues raised by speakers regarding the air quality analysis. Mayor Cox stated she was confident that there would be adequate event monitoring by staff, with time in between events to rectify any issues that may arise. Page 10 - Council Minutes http://www.chulavistaca.gov 18-/0 June 5, 2007 DRAFT PUBLIC HEARINGS (Continued) Councilmember McCann spoke in support of the CORR event, stating that it would bring good national media coverage and many economic resources to the City, and that the proposed location had undergone thorough environmental studies and was appropriate for the event. Deputy Mayor Rindone stated that the proposed event would provide an economic boost for the City and would not lead to additional degradation or cause new issues. He expressed concern, however, that Bonitafest would be held on the same day and suggested that this be avoided in future years. Councilmember Ramirez stated he was impressed with the complete staff analysis on the application and the attention given to the sensitivities of the residents. He stated that the event would provide a good opportunity to test any impacts, and he welcomed CORR to the City. Councilmember Castaneda spoke in support of the event, stating that if NBC broadcasted the races, he would want to specifically see Chula Vista highlighted. He stated that the event would also create an opportunity for people in the region to come to the City to see what it has to offer. ACTION: Councilmember McCann moved to adopt Resolution No. 2007-140, heading read, text waived. RESOLUTION NO. 2007-140, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE MITIGATED NEGATNE DECLARATION AND MITIGATION MONITORING PROGRAM, IS-07-030, AND GRANTING A CONDITIONAL USE PERMIT, PCC-07-063, TO CONDUCT OFF- ROAD RACING EVENTS ON A TEMPORARY OFF-ROAD RACETRACK ON A PORTION OF THE RIMROCK ROCK MOUNTAIN QUARRY, LOCATED OFF OF HERITAGE ROAD AND ADJACENT TO THE OTAY RNER VALLEY - JAMES BALDWIN, OWNER OF CHAMPIONSHIP OFF-ROAD RACING (COOR) Councilmember Ramirez seconded the motion, and it carried 5-0. Mayor Cox asked staff to provide a report after the fust event to the Council, Planning Commission, and Resource Conservation Commission. OTHER BUSINESS 16. CITY MANAGER'S REPORTS Interim City Manager Thomson announced that a budget workshop was scheduled for June 7, 2007 at 6:00 p.m., at the John Lippitt Public Works Center. Page II - Council Minutes http://www.chulavistaca.gov /8-/ / June 5, 2007 DRAFT OTHER BUSINESS (Continued) 17. MAYOR'S REPORTS Mayor Cox announced that Deputy Mayor Rindone had agreed to serve as a member of the Preserve Owner Manager Group for the Otay Valley Regional Park. Mayor Cox announced that the. City, was a recent recipient of the Taxpayers Association's Golden Fleece Award for its policies on the use of Coors Amphitheatre tickets, and that she had indicated to reporters that the City intends to follow the current policy. 18. COUNCIL COMMENTS Councilmember Ramirez stated he also attended the Taxpayers Association's Golden Fleece Awards and would abide by the Council policy regarding Coors tickets. He also expressed concern about Margaret Tuite's recent experience with the Police Department, stating he felt the matter was not about people who failed, but rather a system failure. He expressed the importance of having the correct systems in place to avoid future situations. Lastly, he thanked Mr. O'Neill for his public comments and stated he would be reading the material provided to the Council. Councilmember McCann thanked the Fleet Reserve Association for its Memorial Day service at Glenn Abbey. He also thanked the Chula Vista Garden Club for dedicating blue star markers in Veterans Park and at Veterans Elementary School. Deputy Mayor Rindone stated that he attended the recent Fleet Reserve Memorial dedication ceremony, stating that it was a wonderful event. He also expressed congratulations to the recent Cancer Society's Relay for Life event, and he thanked Councilmember McCann for his honorary leadership for the event. ADJOURNMENT At 6;30 p.m., Mayor Cox adjourned the meeting to the Adjourned Regular Meeting on June 7, 2007, at 6;00 p.m. at the Jolm Lippitt Public Works Center, 1800 Maxwell Road, and thence to the Regular Meeting of June 12, 2007 at 6:00 p.m. in the Council Chambers at City Hall. ---- Lorraine Bennett, CMC, Deputy City Clerk Page 12 - Council Minutes hllp:/ /www.chulavistaca.gov ! 13-/Z June 5, 2007 DRAFT MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA June 5, 2007 4:00 p.m. A Special Meeting of the Redevelopment Agency of the City ofChula Vista was called to order at 6:31 p.rn., in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agencymembers: Castaneda, McCann, Ramirez, Rindone, and Chair Cox ABSENT: Agencymembers: None CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - POTENTIAL INITIATION OF LITIGATION PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54956.9(c): One (1) case Chair Cox announced that closed session would not held. The above item was not discussed, and no action was taken. ADJOURNMENT At 6:32 p.rn., ChairCox adjourned the meeting to an Adjourned Regular Meeting on June 7, 2007, at 6:00 p.rn. at the John Lippitt Public Works Center, 1800 Maxwell Road; and thence to the Regular Meeting of June 12,2007 at 6:00 p.rn. in the Council Chambers at City Hall. ..- ~ ~:- Lorraine Bennett, CMC Deputy City Clerk It DRAFT MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA June 7, 2007 6:00 P.M. An Adjourned Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:14 p.m. in the John Lippitt Public Works Center, 1800 Maxwell Road, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCann, Ramirez, Rindone (arrived at 6:54 p.m.), and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: Interim City Manager Thomson, City Attorney Moore, Assistant City Clerk Noms, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS There were none. 1. THIRD QUARTER FINANCIAL STATUS REPORT QUARTERLY FINANCIAL STATUS REPORT FOR THE QUARTER ENDED MARCH 31, 2007 Presented for Council consideration was the financial status report for the third quarter of fiscal year 2006-2007. The detailed report for the quarter ending March 31, 2007, projected that the City would continue to maintain an 8% general fund reserve level, as required by Council policy. (Finance Director) Interim City Manager Thomson presented the workshop agenda. Finance Director Kachadoorian gave an update on the City's general fund reserves. ACTION: Councilmember Castaneda moved to accept the third quarter report. Councilmember Castaneda seconded the motion, and it carried 4-0, with Deputy Mayor Rindone absent. 2. FISCAL YEAR 2007/2008 PROPOSED BUDGET PRESENTATION . Introduction . General Fund Five-Rear Revenue and Expenditure Forecast Finance Director Kachadoorian provided an overview of the five-year forecast for the general fund. Page 1 . Council Minutes httu:/lwww.chulavistaca.Q:ov June 7, 2007 /'0-1 DRAFT BUDGET PRESENTATION (Continued) Councilmember Ramirez asked what was being done to ensure a balanced budget for fiscal year 2008/2009. Finance Director Kachadoorian replied that staff would be focusing on a long-term financial plan to identify core services and possible options. Interim City Manager Thomson explained that the 2008/2009 projections were based on assumptions, and taking drastic measures now would disrupt services to the public. Mayor Cox stated that drastic cuts could not be made until they became necessary. Councilmember McCann stated that City-owned properties were being under-utilized and thought it would be a good long-term strategy to generate revenue by taking advantage of those properties. Councilmember Castaneda expressed the need to immediately begin looking at budget restraints for next year, and to be more conservative with projections and planning for the future. · Fiscal Year 2007/2008 Proposed Capital Improvement Program General Services Director Griffin presented the proposed 2007/2008 capital improvement program. Discussion ensued regarding various projects, including the need for improved drainage. Acting Assistant City Manager Tulloch expressed the need to support state legislation to equate storm drain fees with sewer fees, in that storm drain fees should not fall under Proposition 218. Mayor Cox stated that storm drain issues should be discussed at a future workshop. · Fiscal Year 2007/2008 Proposed Budget Director of Budget and Analysis Van Eenoo presented the operating budget, including a summary of the independent financial review and budget reduction plan. Councilmember Castaneda requested a report of staff growth for each department compared to population growth from fiscal years 2003/2004 through 2007/2008. Deputy Mayor Rindone requested a breakdown of the 18 cities in San Diego County, as well as others in the state, that have exceeded a 15 percent budget reserve level. · City Council Budget Director of Budget and Analysis Van Eenoo presented the fiscal year 2007/2008 proposed Council budget. Councilmember Ramirez requested budget and legislative equity between the Mayor's and Council offices and felt it would be more appropriate to move the Constituent Services Manager position and funding to the City Manager's office in order for Councilmembers to claim a portion of the services from this position. Mayor Cox responded that the Mayor's Office had received compliments from departments indicating that the services provided by the current Constituent Services Manager had reduced their load in trying to answer a multiplicity of questions; and all constituent calls and e-mails are directed to the Constituent Services Manager. Page 2 - Council Minutes htto://www.chulavistaca.gov June 7, 2007 ID-2 DRAFT CITY COUNCIL BUDGET (Continued) Councilmember McCann stated that the focus needed to be on balancing the budget and seeking revenue-generating projects that would offer the possibility of additional staff in the future. He added that having one point of contact, the Constituent Services Manager, avoided redundancy on constituent issues. Mayor Cox asked the Council to support the Coastal and Environmental Policy Consultant position. Councilmember Castaneda responded that since no one on the Council currently serves on the Coastal Commission, he opposed making the position permanent. Further, he stated that the Council has asked staff to do more with less, and the Council needed to lead by example. Kevin O'Neill, a Chula Vista resident, expressed concern over deferred maintenance citywide that could be addressed with an increased tax base and revenues that would occur as a result of new development. He recommended that the Council avoid cuts in long-range planning and be ready to move forward once the economic cycle improves. He stated that building services were primarily paid by developer fees, and whatever the cost, projects must move ahead. He stated that the bottleneck in permit processing was the lack of adequate fire prevention staffing, and he spoke in support of the proposed Fire Prevention Engineer position. He suggested that there be a more streamlined process by the City for developer permit processing and job closeout. No formal action was taken by Council on this item. ADJOURNMENT At 9:07 p.m., Mayor Cox adjourned the meeting to the Regular Meeting on June 12, 2007 at 6:00 p.m. in the Council Chambers. ------ Lorraine Bennett, CMC, Deputy City Clerk Page 3 - Council Minutes http://www.chulavistaca.gov June 7, 2007 /'0-3 DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA June 12,2007 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: City Manager Garcia, City Attorney Moore, City Clerk Bigelow, and Senior Deputy City Clerk Peoples PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . REPORT BY CHUCK COLE, PRESIDENT OF ADVOCATION, INC., ON STATE BUDGET AND FISCAL PROJECTIONS Mr. Cole provided an overview of the status of the fiscal year 2007/2008 state budget, including its potential impacts on the City's budget. . PRESENTATION OF MASTER MUNICIPAL CLERK DESIGNATION TO LORI ANNE PEOPLES, SENIOR DEPUTY CITY CLERK, BY KAY VINSON, MMC, CITY CLERK'S ASSOCIATION OF CALIFORNIA, LEGISLATNE DIRECTOR AND CITY CLERK OF MURRIETA Mayor Cox announced that the presentation would be continued to a future meeting. . PRESENTATION OF "EXCELLENCE IN ENERGY SAVINGS" AWARDS TO LOCAL BUSINESSES FOR THEIR PARTICIPATION IN THE CHULA VIST A/SDG&E BUSINESS ENERGY EFFICIENCY PROGRAM Environmental Resources Manager Reed, assisted by Risa Barron of San Diego Gas and Electric, recognized Chula Vista businesses and institutions for their participation in the San Diego Gas and Electric and Chula Vista Empower Partnership program. They then presented the Sweetwater Union High School District, Don Pedro Taco Shop, and South Bay Fish and Grill with certificates of recognition for excellence in energy savings for their commitment to energy efficiency and conservation. Senior Office Specialist Blackmar provided background information on the accomplishments of each award recipient. /E-I DRAFT SPECIAL ORDERS OF THE DAY (continued) · DID YOU KNOW...THAT THE NATURE CENTER IS CELEBRATING ITS 20TH ANNIVERSARY? Presented by Dan Beintema, Nature Center Director Nature Center Director Beintema, assisted by Nature Center Program Managers Gailband and Laube, provided a presentation including photographs of the past 20 years at the Nature Center. CONSENT CALENDAR (Items 1 through 5) Mayor Cox announced that Councilmember Ramirez would abstain on Item 1; Deputy Mayor Rindone and Councilmember Castaneda would abstain on Item 2A; and Councilmember McCann would abstain on Item 2B. Councilmember Ramirez asked that Item 3 be pulled for discussion. Councilmember Castaneda stated he would vote no on Item 5. 1. RESOLUTION NO. 2007-141, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A $50,000 GRANT FROM THE COUNTY OF SAN DIEGO, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE COUNTY OF SAN DIEGO On April 17, 2007, the County of San Diego approved a community project award of $50,000 to Chula Vista in order to provide for preliminary engineering services for the J Street to Stella Street segment of the Bayshore Bikeway. Adoption of the resolution accepts the funds and authorizes the City Manager to execute the agreement required by the County. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolution. 2. A. RESOLUTION NO. 2007-142, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING THE COMMITMENT OF MATCHING FUNDS FROM THE AVAILABLE BALANCE OF THE TRAFFIC SIGNAL FUND SHOULD A GRANT BE AWARDED FROM THE HIGHWAY SAFETY IMPROVEMENT PROGRAM TO ENHANCE TRAFFIC SIGNAL AND PEDESTRIAN FACILITIES AT MAJOR INTERSECTION NUMBERS 1 THROUGH 16 B. RESOLUTION NO. 2007-143, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING THE COMMITMENT OF MATCHING FUNDS FROM THE AVAILABLE BALANCE OF THE TRAFFIC SIGNAL FUND SHOULD A GRANT BE AWARDED FROM THE HIGHWAY SAFETY IMPROVEMENT PROGRAM TO ENHANCE TRAFFIC SIGNAL AND PEDESTRIAN FACILITIES AT MAJOR INTERSECTION NUMBERS 17 THROUGH 31 Page 2 - Council Minutes http://www.chulavistaca. gOY June 12, 2007 /13'-2 , ,~.. ..."~j' " /'. DRAFT CONSENT CALENDAR (continued) As part of a citywide assessment program, 31 street intersections were identified for potential enhancements. As included in the March 27, 2007 Citywide grant list report, an application for grant funding from the Highway Safety Improvement Program, matched with traffic signal fee funds, was submitted to fund a project to enhance safety (pedestrian, bicyclist and vehicular) and/or traffic flow at those intersections. (Acting Assistant City Manager/City Engineer) Staff recommendation: Council adopt the resolutions. 3. This item was removed from the Consent Calendar for discussion. 4. RESOLUTION NO. 2007-146, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FISCAL YEAR 2007/2008 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT REGARDING JOINT OPERATION OF THE DYNAMIC AFTER SCHOOL HOURS (DASH) AFTER SCHOOL RECREATIONAL PROGRAM, AND THE SAFE TIME FOR RECREATION, ENRICHMENT, AND TUTORING FOR CHILDREN (STRETCH) EXTENDED SCHOOL DAY EDUCATIONAL PROGRAM, AND AUTHORIZING THE MAYOR TO EXECUTE THE MEMORANDUM OF UNDERSTANDING The current memorandum of understanding (MOO) between the City and the Chula Vista Elementary School District, in effect until June 30, 2007, authorizes the operation of two after-school programs at elementary school sites. The STRETCH program, with its emphasis on literacy and arts enrichment, is currently offered at seven district schools. The existing MOU also authorizes the operation of a structured sports and recreation program called DASH (Dynamic After School Hours) at 25 district schools. Adoption of the resolution approves the fiscal year 2007/2008 MOU, and includes expansion of the DASH program to one new site (Wolf Canyon Elementary). (Assistant City Manager/Library Director) Staff recommendation: Council adopt the resolution. 5. A. RESOLUTION NO. 2007-147, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE RESULTS OF THE MID- MANAGEMENT STUDY AND APPROVING THE CORRESPONDING COMPENSATION SCHEDULE B. RESOLUTION NO. 2007-148, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE RESULTS OF VARIOUS INDIVIDUAL NON-MANAGEMENT CLASSIFICATION STUDIES AND APPROVING THE CORRESPONDING COMPENSATION SCHEDULE (Continued from June 5, 2007) Page 3 - Council Minutes http:// www.chulavislaca.gov June 12,2007 IE. -3 DRAFT CONSENT CALENDAR (continued) Human Resources staff conducted a comprehensive classification and compensation study of positions in the mid-management group, consisting of 131 employees in 67 classifications. The study included a review of the work performed, scope and complexity of assignments and overall responsibility of each position. In addition, department-initiated classification reviews were conducted on individual non- management positions represented by the Chula Vista Employees Association and Western Civil Engineers. (Human Resources Director) Staff recommendation: Council adopt the resolutions. ACTION: Deputy Mayor Rindone moved to approve staffs recommendations and offered Consent Calendar Items 1, 2 4 and 5, headings read, texts waived. Councilmember McCann seconded the motion. Item 1 was adopted 4-0-1 with Councilmember Ramirez abstaining; Item 2A was adopted 3-0-2 with Deputy Mayor Rindone and Councilmember Castaneda abstaining; Item 2B was adopted 4-0-1 with Councilmember McCann abstaining; Item 4 was adopted 5-0; and Item 5 was adopted 4-1 with Councilmember Castaneda voting no. ITEMS REMOVED FROM THE CONSENT CALENDAR 3. A. RESOLUTION NO. 2007-144, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AND AWARDING THE CONTRACT FOR PHASE 1 (AREA A FENCING) OF THE LAUDERBACH PARK IMPROVEMENT PROJECT (PR-295) TO ATLAS FENCING, AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE CONTRACT B. RESOLUTION NO. 2007-145, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO PROCEED WITH THE DESIGN OF PHASE 2 (AREA B FENCING, RESTROOM CONSTRUCTION, LIGHTING IMPROVEMENTS AND TOT LOT SURFACING) OF THE LAUDERBACH PARK IMPROVEMENTS (PR-295) AND RETURN TO COUNCIL IN JULY OF 2007 TO APPROPRIATE ADDITIONAL STATE RECREATIONAL GRANT FUNDS AND RESIDENTIAL CONSTRUCTION TAX FUNDS FOR INCREASED COSTS TO COMPLETE THE PROJECT On May 15, 2007, the General Services Director received informal bids for this project, which is the fust phase of the Lauderbach Park improvement project, funded through a state recreation grant and the western Chula Vista infrastructure financing program. Adoption of the resolutions awards the contract for Phase 1 of the Lauderbach Park improvement project, and directs staff to proceed with the design of Phase 2 and return to the Council for appropriations necessary for project completion. (General Services Director, Public Works Operations Director) Staff recommendation: Council adopt the resolutions. Page 4 - Council Minutes htm:/ /www.chulavistaca.gov June 12,2007 /E-'-f ~ .....'- ,",'; '";'t'.~ 'rl DRAFT ITEMS REMOVED FROM THE CONSENT CALENDAR (Continued) General Services Director Griffin, responding to inquiries from Councilmembers Castaneda and Ramirez, provided an overview of the bid process and confirmed that the increased costs for the restroom facility resulted from not attaching it to the Boys & Girls Club building as originally planned. Assistant City Manager Thomson noted that the staff report contained a recommendation that three other proposed capital improvement projects not proceed in order to fully fund this proj ect. Councilmember Ramirez asked staff to solicit more bids in the future to ensure a competitive process. Assistant Director of Public Works Operations Hopkins reported on discussions with the Boys & Girls Club and community involvement regarding the fencing and restroom issues. Councilmember McCann stated for the record that he held an uncompensated position on the Board of Directors of the Boys & Girls Club, and that the City Attorney had confirmed he had no conflict of interest. ACTION: Councilmember Castaneda offered Resolution Nos. 2007-144 and 2007-145, headings read, texts waived. Deputy Mayor Rindone seconded the motion, and it carried 5-0. At the request of Councilmember Castaneda, General Services Director Griffin explained the processes for informal and formal bids. Councilmember Castaneda asked staff to attempt to identify Chula Vista businesses from which to solicit bids in the future. Deputy Mayor Rindone spoke of safety and security issues at parks having a single entrance and asked staffto (1) never build single entrance parks again, and (2) look at ways to correct existing park entrance problems. PUBLIC COMMENTS Philip Lopez, Chula Vista resident, spoke regarding the outcome of a meeting on the proposed development of the KOA site. He asked the Council to remain focused on the land use issue, stating that they would be deciding the fate of the last remaining open space in northwest Chula Vista. Peter Watry, Chula Vista resident, spoke regarding the changing nature of the Community Development Department and his opinion that staff could not provide a fair hearing for neighborhoods impacted by future development. PUBLIC HEARINGS 6. CONSIDERATION OF AMENDMENTS TO CHAPTER VII RECREATION PROGRAMSfF ACILITIES OF THE MASTER FEE SCHEDULE The Recreation Department last updated fees in June 2003. Staff is proposing fee increases and new fees based upon the Consumer Price Index, informal surveys and assessments of what increases would be appropriate in the Chula Vista market, and City cost increases. The new fees and/or increases are proposed for facility rentals, athletics, aquatics, and miscellaneous services. (Recreation Director) Page 5 - Council Minutes httu:llwww.chulavistaca.!lOV June 12, 2007 jE-5 DRAFT PUBLIC HEARINGS (continued) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Councilmember Castaneda stated he would abstain from discussion and voting on Item 6, as he lives adjacent to the facility. He then left the Council Chambers. Recreation Director Martin stated that staff was present to respond to questions. Mayor Cox opened the public hearing. There being no one from the audience who wished to speak, Mayor Cox closed the public hearing. Deputy Mayor Rindone asked staff to review the fee schedule every two years or so. ACTION: Mayor Cox moved to adopt Resolution No. 2007-149 and No. 2007-150, headings read, texts waived: A. RESOLUTION NO. 2007-149, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO EFFECT CHANGES TO EXISTING FEES AND THE ADDITION OF NEW FEES FOR RECREATION B. RESOLUTION NO. 2007-150, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO EFFECT CHANGES TO EXISTING FEES AND THE ADDITION OF NEW FEES FOR AQUATICS Deputy Mayor Rindone seconded the motion, and it carried 4-1 with Councilmember McCann voting no, stating that he could not support the motion due to the 30% increase in field fees. Deputy Mayor Rindone asked if Councilmember McCann was registering a no vote for the lighting fees or the entire item. Councilmember McCann responded that he voted against the entire item. OTHER BUSINESS 7. CITY MANAGER'S REPORTS City Manager Garcia stated that the Chula Vista Redevelopment Corporation would meet Thursday, June 14, and final budget adoption would be considered on June 19. 8. MAYOR'S REPORTS Mayor Cox noted that the meeting would be adjourned in the memory of a young man from Chula Vista who was killed in Afghanistan. Page 6 - Council Minutes http:// www.chulavistaca.gov June 12,2007 IE-6 DRAFT OTHER BUSINESS (Continued) 9. COUNCIL COMMENTS Councilmember McCann thanked Assistant City Manager Thomson for his service to the City, and recognized and congratulated Deputy Mayor Rindone on his retirement from the Sweetwater Union High School District. He then asked staff to look at using solar panels at City pools to save costs. ADJOURNMENT At 7:26 p.m., Mayor Cox adjourned the meeting in memory of Charles Edward Wycoff, Jr., a native of Chula Vista, who died serving his country in Afghanistan, to an adjourned regular meeting with the Chula Vista Redevelopment Corporation and Redevelopment Agency on Thursday, June 14, 2007, at 6:00 p.m. in the Council Chambers; and thence to the regular meeting ofJune 19,2007, at 6:00 p.m. in the Council Chambers. ~~ (LA ~~~jJJ~ La . Anne Peoples, MMC, Senior Deputy City Clerk Page 7 - Council Minutes htto://www.chulavistaca.1WV June 12,2007 /6-7 'Revfs~ r-f.e/n 2 RECEIVE' Mayor and City Council '07 AUG -7 AlO :31 City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 el1Y OF 619,691,5044-6194765379 FaxCJTY OF CHULA ViS: CHULA VISTA CITY CLERK'S OFF: MEMO Tuesday, August 07, 2007 TO: The Honorable Mayor & City Council, City Manager FROM: Councilmember John McCann RE: Excused Absence from City Council Meeting Councilmember John McCann has requested an excused absence from the City Council Meeting dated July 24, 2007 as he was out of town on business and when he returned to the City in the evening, the Council meeting had already ended. The July 24th City Council meeting was originally cancelled by the City Council. cc: City Clerk zr RECEIVED Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chuta Vista, Ca 91910 CllY OF 619.691.5044 - 619.476.5379 Fax CHUlA VISfA '07 Jl 31 P3:49 CITY OF ..mll._ 0 CITY CLElnmlWI Tuesday, July 31, 2007 FROM: The Honorable Mayor & City Council, City Manager Councilmember John McCann ~ Excused Absence from City Council Meeting TO: RE: Councilmember John McCann has requested an excused absence from the City Council Meeting dated July 24,2007 as he was out of town on business. The July 24th City Council meeting was originally cancelled. cc: City Clerk zr 2- ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING MITIGATED ~GAT ~~O~ DECLARATION AND MITIGATION MONITO REPORTING PROGRAM IS-06-013, AME$~ NING MAP OR MAPS ESTABLISHED ~~ 'ttffiLA VISTA MUNICIPAL CODE SECTION 19.1~~-TO ESTABLISH THE PRECISE PLAN MODIFYING DISTRlCT AND ADOPT PRECISE PLAN STANDARDS FOR 3.9 ACRES AT THE NORTHEAST CORNER OF THIRD A VENUE AND "H" STREET, CURRENLY ZONED R-3, APARTMENT RESIDENTIAL 1. REClT ALS A. Project Site WHEREAS, the area of land which is the subject matter of this Ordinance is diagrammatically represented in Exhibit "A" and hereto incorporated herein by this reference, and commonly known as St. Rose of Lima Catholic Parish, and for the purposes of general description consists of approximately 3.9 acres at the northeast corner of Third Avenue and "H" Street. ("Project Site"); and, B. Project; Application for Discretionary Approval WHEREAS, a duly verified application was filed with the City of Chula Vista Planning and Building Department on September 21, 2006, 2006 by St Rose of Lima Catholic Parish (Applicant), requesting approval of a zoning modification application to establish the Precise Plan Modifying District and adopt Precise Plan Standards for 3.9 acres know as St. Rose of Lima project. It is currently zoned R-3, Apartment Residential; and, C. Prior Approvals WHEREAS, the Design Review Committee held an advertised public hearing on May 7, 2007, at 4:30 p.m. in the City Council Chambers at 276 Fourth Avenue and, after hearing staff presentation and public testimony, voted 3-0-1-0 to approve DRC 06-50 contingent upon approval of this Ordinance and the Ordinance entering into effect; and D. Planning Commission Record on Application WHEREAS, the Planning Commission held an advertised public hearing on the Project on June 27, 2007, and after hearing staff presentation and public testimony, voted 4-0-3-0 to recommend that the City Council approve the Project, in accordance with the fmdings listed below; and, WHEREAS, the Planning Department set the time and place for hearing on said Project, and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, and its mailing to property owners within 500 ft. of the exterior boundaries of the Project, at least ten (10) days prior to the hearing; and, 3-t Ordinance No. Page 2 WHEREAS, the proceedings and all evidence introduced before the Planning Commission at the public hearing on the Project held on June 27, 2007, and the minutes and Resolution resulting there from, are incorporated into the record of these proceedings; and E. City Council Record on Application WHEREAS, the City Clerk set the time and place for the hearing on the Project applications and notices of the hearing, together with its purposes given by its publication in a newspaper of general circulation in the City, and its mailing to property owners within 500 feet of the exterior boundaries of the Project Site at least ten (10) days prior to the hearing; and WHEREAS, the City Council held an advertised public hearing on the Project on xxxxxxxxx, at 6:00 p.m. in the City Council Chambers at 276 Fourth Avenue; and WHEREAS, after hearing staff's presentation and public testimony, and receiving the recommendation of the Planning Commission, the City Council voted _-_-_ to adopt the Mitigated Negative Declaration, (IS-06-013) and approve the Project, in accordance with the findings listed below; and F. Discretionary Approvals Resolution Ordinance WHEREAS, at the same City Council hearing, at which the Ordinance was introduced, for first reading ( , 2007), the City Council of the City of Chula Vista approved Resolution number _by which it approved a Conditional Use Permit for the Project Site. NOW THEREFORE, the City Council of the City of Chula Vista does hereby finds, determines and ordains as follows: A. Certification of Compliance with California Environmental Quality Act (CEQA) The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has conducted an Initial Study, IS-06-013 in accordance with the California Environmental Quality Act. Based upon the results of the Initial Study, the Environmental Review Coordinator has determined that the project could result in significant impacts on the environment. However, revisions to the project made by or agreed to by the applicant would avoid the effects or mitigate the effects to a point where clearly no significant effects would occur; therefore, the Environmental Review Coordinator has prepared a Mitigated Negative Declaration, IS-06-013 and associated Mitigation Monitoring and Reporting Program. B. Independent Judgment of the City Council WHEREAS, the City Council considered Mitigated Negative Declaration IS-06-013 together with any comments received during the public review process; and WHEREAS, the City Council further finds that on the basis of the whole record before it (including the initial study and any comments received), the project could result in significant effects on the environment. However, revisions to the project made by or agreed to by the 3-2 Ordinance No. Page 3 applicant would avoid the effects or mitigate the effects to a point where clearly no significant effects would occur; and WHEREAS, the Mitigated Negative Declaration and other related materials are located in the Planning and Building Department and maintained by the custodian of said documents who is the Director of Planning and Building. This constitutes the record of proceedings upon which this adoption of the Mitigated Negative Declaration is based, and WHEREAS, the City Council has exercised their independent review and judgment and concurs with the Planning Commission, and Environmental Review Coordinator's determination that Mitigated Negative Declaration (IS-06-013), in the form presented, has been prepared in accordance with requirements of the California Environmental Quality Act (CEQA), the State CEQA Guidelines and the Environmental Review Procedures of the City of Chula Vista and adopts the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (IS-06-0 13). C. The zoning modification of the Project Site is consistent with the City of Chula Vista General Plan, as approved on December 13, 2005, and public necessity, convenience, the general welfare and good zoning practice support the amendment to the Municipal Code. D. The City Of Chula Vista Zoning Map established by Section 19.18.010 of the Chula Vista Municipal Code is amended to modify the zoning of the Project Site as depicted in Exhibit "A" from the R-3 (Apartment Residential) Zone to the R-3-P, Apartment Residential Zone with Precise Plan Modifying District, including Property Development Standards as represented in Exhibit B. FINDINGS FOR APPROVAL OF REZONE AND PRECISE PLAN, INCLUDING PRECISE PLAN STANDARDS. Pursuant to Section 19.56.041 of the Chula Vista Municipal Code, the City Council of the City of Chula Vista finds that the following circumstances are evident, which allows the application of the "P" Precise Plan Modifying on the Project Site: 1. That such use will not under the circumstances of the particular case be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. Establishing the Precise Plan Modifying District and Precise Plan Standards to guide the redevelopment of the project site will provide the project designer with sufficient flexibility to create a more efficient site design, suitable for an urbanized area. The precise plan standards are intended to address specific site design constraints and opportunities and protect the residential neighborhood to the east. Thus, establishing the precise plan modifying district will not be detrimental to the health, safety or general welfare of persons residing or working in the vicinity. 2. That such plan satisfies the following principles for amendment of the "P" modifying district as set forth in CYMC 19.56.041: 3-3 Ordinance No. Page 4 The property or areas to which the P modifying district is applied is an area adjacent and contiguous to a zone aUowing different land uses, and the development of a precise plan wiu allow the area so designated to coexist between land usages which might otherwise prove incompatible. The site is adjacent and contiguous to the newly adopted Urban Core Specific Plan (UCSP) on three sides (north, south and west). The UCSP promotes a development pattern, which facilitate a compact urban environment, which is pedestrian friendly. These development standards include: (1) zero building setbacks from all adjacent street sides; (2) increased building height; (3) increased fence height to 8 feet along eastern property line; and (4) minimal on-site surface parking with remaining parking off-site. The zero building setback line with on-site parking to the east, behind the buildings, which will front along the western portion of the site facing Third A venue and H Street. The proposed building height of 54 feet will be similar to that established by the Gateway structure (approximately 56 feet) to the west as well as by anticipated building heights up to 84 feet as allowed under the UCSP. 3. That any exceptions granted which may deviate from the underlying zoning requirements shall be warranted only when necessary to meet the purpose and application of the Precise Plan. Development of the lot using the development standards of the R-3 zone would limit the ability of the applicant to propose a design which: The requested deviations under the Precise Plan are necessary in order to achieve a consistent urban-type development similar to the existing and proposed surrounding development to the west, north and south. The surrounding Urban Core Specific Plan promotes a development pattern, which facilitate a compact urban environment, which is pedestrian friendly. The proposed precise plan development standards include: (I) zero building setbacks from all adjacent street sides: (2) increased building height; (3) increased fence height to 8 feet along eastern property line; and (4) minimal on-site surface parking with remaining parking off-site. The zero building setback line with on-site parking to the east will facilitate placing building frontage along the western portion of the site facing Third Avenue and H Street. The proposed building height of 54 feet will allow a building height similar to that established by the Gateway structure (approximately 56 feet) to the west as well as by anticipated building heights up to 84 feet as allowed under the UCSP. 4. That the approval of this plan will conform to the General Plan and the adopted policies of the City OfChula Vista. The Precise Plan Modifying District and Precise Plan Standards will conform to both the General Plan as well as the newly adopted Urban Core Specific Plan, whose boundaries surround the project site on three sides. The increased flexibility inherent in the Precise Plan Standards will guide the development or redevelopment of the proj ect site will provide the project designer with sufficient flexibility to create a more efficient site design, suitable for an urbanized area. This is consistent with the goals and policies of the newly adopted General Plan. 3-4 Ordinance No. Page 5 F. The Precise Plan and Precise Standards as depicted in Exhibits B are adopted and are supported by the required fmdings (CYMC Section 19.56.041, as outlined above. n. APPROVAL OF ZONE MODIFICA nON The City Council of the City of Chula Vista does hereby approve the rezone to establish the Precise Plan Modifying District and adopting Precise Plan Standards for the Project Site as represented in Exhibit "B". III. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by James D. Sandoval Planning and Building Director Exhibits: Exhibit A: Zone Modification Map Exhibit B: Precise Plan Standards J:\A.Uomey\OrdinanffiAdopt PoIND oS: MMRP lS..Q6..0IJ_07.17-o7.a.x. 3-5 CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR ~ st. ~ose of Lima Catholic C) Parish ~~: 293 H 51. EXHIBIT A . SCALE: FIL.E NUMBER: NORTH No Scale pcz-or -o2IPcc-or3 - 6 PROPOSED PRECISE PLAN STANDARDS Minimum Building Setbacks: Third Avenue: o feet Alvarado Street: o feet H Street: o feet Building Height: 54 feet (top of roof) 90 feet (top of spire) Fence Height: g feet height (along interior/eastern) or, line Parking: 261 of required paIki.ng spaces allowed off- site. Shared paIki.ng will be allowed in conjunction the following: 1) parking study showing excess parking available from Donor during time of applicants need for such spaces 2) copy of agreement between Donor and Recipient. Off-site Pedestrian Access: Modification of Section 19.62.040 of CYMe to require only a two party agreement between applicant and City required ensuring that off-site parking soaces will be orovided. Exhibit B 3-7 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ~ ~~O"t\ CHULA VISTA REQUIRING THE REGISTRATIQbll"\\_~ ABANDONED RESIDENTIAL PROPERTIES fOV:.(j:j"t\tJ ~tJW I. Recitals. WHEREAS, the presence of vacant, abandoned residences can lead to neighborhood decline; and WHEREAS, the presence of vacant, abandoned residences can create an attractive public nuisance; and WHEREAS, the presence of vacant abandoned residences can contribute to lower property values; and WHEREAS, the presence of vacant abandoned residences can discourage potential buyers from purchasing a home adjacent to or in neighborhoods with vacant abandoned residences; and WHEREAS, many vacant abandoned residences are the responsibility of out of area, out of state lenders and trustees; and, WHEREAS, in many instances the lenders and trustees fail to adequately maintain and secure these vacant residences; and WHEREAS, the city has an obligation to protect its residential neighborhoods from decline and devaluation; and. WHEREAS, on June 11, 2007 the Board of Appeals and Advisors met, reviewed and discussed the proposed ordinance; and, WHEREAS, the Board of Appeals and Advisors voted unanimously to recommend passage of the proposed ordinance to the City Council; and NOW THEREFORE THE CITY COUNCIL of the City of Chula Vista does hereby ordain as follows: Section I. That the proposed Vacant Abandoned Residential Property Registration ordinance be enacted as follows: 4-1 Ordinance No, Page 2 15.60 ABANDONED RESIDENTIAL PROPERTY REGISTRATION 15.60,010 PURPOSE/SCOPE It is the purpose and intent of the Chula Vista City Council, through the adoption of this Chapter, to establish an abandoned residential property registration program as a mechanism to protect residential neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned properties. 15.60.020 DEFINITIONS For the purposes of this chapter, certain words and phrases used in this chapter are defined as follows: "Abandoned" means a property that is vacant and is under a current Notice of Default and/or Notice of Trustee's Sale, pending Tax Assessors Lien Sale and/or properties that have been the subject of a foreclosure sale where the title was retained by the beneficiary of a deed of trust involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale. "Accessible orooertv" means a property that is accessible through a compromised/breached gate, fence, wall etc.. "Accessible structure" means a structurelbuilding that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons. "Aoreement" means any agreement or written instrument, which provides that title to residential property, shall be transferred or conveyed from one owner to another owner after the sale, trade, transfer or exchange. "Assionment of Rents" means an instrument that transfers the beneficial interest under a deed of trust from one lender/entity to another. "Beneficiary" means a lender under a note secured by a deed of trust. "Buver" means any person, co-partnership, association, corporation, or fiduciary who agrees to transfer anything of value in consideration for property described in an agreement of sale, as defined in this subsection. "Danqerous buildinq" means any building/structure that is violation of any condition referenced in CVMC Chapter 15.18. "Davs" means consecutive calendar days. "Deed of Trust" means an instrument by which title to real estate is transferred to a third party trustee as security for a real estate loan. Used in California instead --4-2 Ordinance No. Page 3 of a mortgage. This definition applies to any and all subsequent deeds of trust Le.: 2nd trust deed, 3rd trust deed, etc. "Deed in lieu of foreclosure/sale" means a recorded document that transfers ownership of a property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust. "Default" means the failure to fulfill a contractual obligation, monetary or conditional. "Distressed" means a property that is under a current Notice of Default and/or Notice of Trustee's Sale and/or pending Tax Assessor's Lien Sale or has been foreclosed upon by the trustee or has been conveyed to the beneficiaryltrustee via a Deed in lieu of Foreclosure/sale. "Evidence of vacancv" means any condition that on its own, or combined with other conditions present would lead a reasonable person to believe that the property is vacant. Such conditions include but are not limited to, overgrown and/or dead vegetation, accumulation of newspapers, circulars, flyers and/or mail, past due utility notices and/or disconnected utilities, accumulation of trash, junk and/or debris, the absence of window coverings such as curtains, blinds and/or shutters, the absence of furnishings and/or personal items consistent with residential habitation, statements by neighbors, passersby, delivery agents, government employees that the property is vacant. "Foreclosure" means the process by which a property, placed as security for a real estate loan, is sold at auction to satisfy the debt if the trustor (borrower) defaults. "Loca'" means within forty (40) road/driving miles distance of the subject property. "Neiahborhood standard" means those conditions that are present on a simple majority of properties within a three hundred (300) foot radius of an individual property. A property that is the subject of a neighborhood standard comparison, or any other abandoned property within the three hundred (300) foot radius, shall not be counted toward the simple majority. "Notice of Default" means a recorded notice that a default has occurred under a deed of trust and that the beneficiary intends to proceed with a trustee's sale. "Out of area" means in excess of forty (40) road/driving miles distance of the subject property. "Owner" means any person, co-partnership, association, corporation, or fiduciary having a legal or equitable title or any interest in any real property. 4-3 Ordinance No. Page 4 "Owner of record" means the person having recorded title to the property at any given point in time the record is provided by the San Diego County Recorders Office. "Prooertv" means any unimproved or improved real property, or portion thereof, situated in the city and includes the buildings or structures located on the property regardless of condition. "Residential buildino" means any improved real property, or portion thereof, situated in the city, designed or permitted to be used for dwelling purposes, and shall include the buildings and structures located on such improved real property. This includes any real property being offered for sale, trade, transfer, or exchange as "residential" whether or not it is legally permitted and/or zoned for such use. "Securino" means such measures as may be directed by the Director of Planning and Building or his or her designee that assist in rendering the property inaccessible to unauthorized persons, including but not limited to the repairing of fences and walls, chaining/pad locking of gates, the repair or boarding of door, window and/or other openings. Boarding shall be completed to a minimum of the current HUD securing standards at the time the boarding is completed or required. "Trustee" means the person, firm or corporation holding a Deed of Trust on a property. "Trustor" means a borrower under a deed of trust, who deeds property to a trustee as security for the payment of a debt. "Vacant" means a building/structure that is not legally occupied. 15.60.030 RECORDATION OF TRANSFER OF LOAN/DEED OF TRUST/ASSIGNMENT OF RENTS Within ten (10) days of the purchase and/or transfer of a loan/deed of trust secured by residential property the new beneficiary/trustee shall record, with the San Diego County Recorders Office, an Assignment of Rents, or similar document, that lists the name ofthe corporation, and/or individual, the mailing address and contact phone number of the new beneficiary/trustee responsible for receiving payments associated with the loan/deed of trust. 15.60.040 REGISTRATION Any beneficiaryttrustee, who holds a deed of trust on a property located within the City of Chula Vista, shall perform an inspection of the property that is the security for the deed of trust, upon default by the trustor, prior to recording a Notice of Default with the San Diego County Recorders Office. If the property is 4-4 Ordinance No. Page 5 found to be vacant or shows evidence of vacancy, it is, by this chapter, deemed abandoned and the beneficiary/trustee shall, within ten (10) days of the inspection, register the property with the Director of Planning and Building or his or her designee on forms provided by the City. If the property is occupied but remains in default it shall be inspected by the beneficiaryltrustee, or his designee, monthly until 1 ) The trustor other or party remedies the default or 2) It is found to be vacant or shows evidence of vacancy at which time it is deemed abandoned, and the trustee shall, within ten (10) days of that inspection, register the property with the Director of Planning and Building or his designee on forms provided by the City. In either case the registration shall contain the name of the beneficiary/trustee (corporation or individual), the direct street/office mailing address of the beneficiary/ trustee (no P. O. Boxes), a direct contact name and phone number for the beneficiaryltrustee and, in the case of a corporation or out of area beneficiary/trustee, the local property management company responsible for the security, maintenance and marketing of the property. Registration fees will not be prorated. An annual registration fee shall accompany the registration form. The fee and registration shall be valid for the calendar year, or remaining portion of the calendar year, in which the registration was initially required. Subsequent registrations and fees are due January 1st of each year and must be received no later than January 31 of the year due. This section shall also apply to properties that have been the subject of a foreclosure sale where the title was transferred to the beneficiary of a deed of trust involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale. Properties subject to this chapter shall remain under the annual registration requirement, security and maintenance standards of this section as long as they remain vacant. Any person, firm or corporation that has registered a property under this chapter must report any change of information contained in the registration within ten (10) days of the change. 15.60.050 MAINTENANCE REQUIREMENTS Properties subject to this section shall be, in comparison to the neighborhood standard, kept free of weeds, dry brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, accept those required by federal, state or local law, discarded personal items including but not limited to, furniture, clothing, large and small appliances, printed 4-5 Ordinance No. Page 6 material or any other items that give the appearance that the property is abandoned. The property shall be maintained free of graffiti, tagging or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior of the structure. Visible front and side yards shall be landscaped and maintained to the neighborhood standard at the time registration was required. Landscape includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation. Landscape does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastic sheeting, mulch, indoor-outdoor carpet or any similar material. Maintenance includes, but is not limited to regular watering, irrigation, cutting, pruning and mowing of required landscaped and removal of all trimmings. Pools and spas shall be kept in working order so the water remains clear and free of pollutants and debris or drained and kept dry. In either case properties with pools and/or spas must comply with the minimum security fencing requirements of the Sate of California. Adherence to this section does not relieve the beneficiaryltrustee or property owner of any obligations set forth in any Covenants Conditions and Restrictions and/or Home Owners Association rules and regulations which may apply to the property. 15.60.060 SECURITY REQUIREMENTS Properties subject to this section shall be maintained in a secure manner so as not to be accessible to unauthorized persons. Secure manner includes but is not limited to the closure and locking of windows, doors (walk-through, sliding and garage) gates and any other opening of such size that it may allow a child to access the interior of the property and or structure(s). In the case of broken windows securing means the reglazing or boarding of the window. If the property is owned by a corporation and/or out of area beneficiary/trustee/ owner, a local property management company shall be contracted to perform weekly inspections to verify that the requirements of this section, and any other applicable laws, are being met. '4-6 Ordinance No. Page 7 The property shall be posted with name and 24-hour contact phone number of the local property management company. The posting shall be no less than 18" X 24" and shall be of a font that is legible from a distance of forty-five (45) feet and shall contain along with the name and 24-hour contact number, the words "THIS PROPERTY MANAGED BY. and "TO REPORT PROBLEMS OR CONCERNS CALL". The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building/structure facing the street to the front of the property so it is visible from the street or if no such area exists, on a stake of sufficient size to support the posting in a location that is visual from the street to the front of the property but not readily accessible to vandals. Exterior posting must be constructed of and printed with weather resistant materials. The local property management company shall inspect the property on a weekly basis to determine if the property is in compliance with the requirements of this chapter. 15.60.070 ADDITIONAL AUTHORITY In addition to the enforcement remedies established in Chapters 1.20, 1.30 and 1.41, the Director of Planning and Building or his or her designee shall have the authority to require the beneficiaryltrustee/owner and/or owner of record of any property affected by this section, to implement additional maintenance and/or security measures including but not limited to, securing any/all door, window or other openings, installing additional security lighting, increasing on-site inspection frequency, employment of an on-site security guard or other measures as may be reasonably required to arrest the decline of the property. 15.60.080 FEES The fee for registering an Abandoned Residential Property shall be set by resolution of the City Council. 15.60.90 ENFORCEMENT Violations of this chapter may by enforced in any combination as allowed in Chapters 1.20, 1.30 and 1.41. 15.60.100 APPEALS Any person aggrieved by any of the requirements of this section my appeal insofar as such appeal is allowed under Chapter 1.40. 15.60.11 0 VIOLATION/PENALTY Violations of this chapter shall be treated as a strict liability offense regardless of intent. Any person, firm and/or corporation that violates any portion of this section shall be subject to prosecution and/or administrative enforcement under Chapters 1.20 and 1.41. 4-7 Ordinance No. Page 8 15.60.120 SEVERABILITY Should any provision, section, paragraph, sentence or word of this chapter be determined or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this chapter shall remain in full force and effect. Section 11. Effective Date This ordinance shall take effect and be in full force on the 60th day from and after its second reading. Presented by Approved as to form by ~j~~~~~ Ann Moore City Attorney James D. Sandoval Director of Planning and Building 4-8 CITY COUNCIL AGENDA STATEMENT AUGUST 7, 2007, Item b ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH A FEE OF $15 FOR PASSPORT PHOTOGRAPHS FOR THE PASSPORT ACC}Jt!ANCE FACILITY SUSAN BIGELJC( CITY CLERK CITY MANAGER SUBMITTED BY: REVIEWED BY: 4/5THS VOTE: YES D NO ~ BACKGROUND The City Clerk's Office has received notification of its designation as a passport application acceptance agent and now must establish a fee for a set of passport photos. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. RECOMMENDATION Council adopt the resolution establishing $15 as the fee for passport photos. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In May 2007, the City Council authorized the City Clerk to submit an application to the U.S. Department of State, Bureau of Consular Affairs, to designate the City Clerk's office as a passport application acceptance facility. The City Clerk's Office has now received notification of its designation as a passport agent. The City Clerk's Office will use existing staff initially to implement passport services on a part-time, by-appointment-only basis; and provide a one-stop operation for customers, including photographs and mailing 5-1 AUGUST 7, 2007, Item !? Page 2 of3 services. Once the program matures and revenues increase enough to offset the cost of a dedicated, full-time employee, the service may be expanded to longer hours and possibly to satellite locations. The City Clerk and Assistant City ManagerlLibrary Director have discussed the benefits of eventually providing Saturday passport services at the South Chula Vista branch, a service not currently available anywhere else in the south bay. City Clerk staff can begin providing passport services as soon as training is completed, equipment is purchased, and a location is identified. Training consists of one eight-hour training class provided without charge by the Los Angeles Regional Passport Agency and completion of an on-line training class. There are four significant benefits to becoming a passport acceptance facility: . Community Service - A passport acceptance facility is somewhat unique in that, other than the post office, no other organization in the community is authorized to offer this service. Having a passport acceptance facility at City Hall will provide a vital service to all citizens and a local source for residents to easily and conveniently obtain passport application forms and submit passport applications. . Positive Public Relations - The service to the community and positive interaction with the public will further promote the City. It will also offer an opportunity to promote other City services and opportunities available to the public. . New Revenue Source - The City will receive $30 for each application processed, from which only mailing costs (about $1 per application) will be deducted once start-up costs have been recovered. In addition, the City will receive $12 for passport photo services. . Community Economic Impact - People from surrounding commUnItIes who travel to Chula Vista to submit passport applications will have a positive impact on Chula Vista's economy, since many customers may decide to patronize other Chula Vista businesses while in the City. The City Clerk recommends that the Council set a fee of $15 for a set of two passport photographs. Currently, El Cajon charges $10, Poway charges $15, and the post office charges $15. The $15 fee is recommended to offer a one-stop opportunity to applicants but not compete with local businesses that also offer passport photos. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(1) is not applicable to this decision. 5-2 AUGUST 7, 2007, Item 5 Page 3 of3 FISCAL IMPACT For each passport application accepted, the City will collect and retain the $30 processing fee established by the federal government. Offering passport photos at $15 per set of two will also increase revenue. Revenue generated will offset start-up costs. It is anticipated that part-time services will generate $50,000 or more in general fund revenue. ATTACHMENTS Resolution Prepared by: Susan Bigelow, City Clerk 5-3 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH A FEE OF $15 FOR PASSPORT PHOTOGRAPHS FOR THE PASSPORT ACCEPTANCE FACILITY WHEREAS, the City Clerk's Office has received notification of its designation as a passport application acceptance agent; and WHEREAS, the City Clerk must now establish a fee for passport photographs. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby establish a fee of $15 for a set of two passport photographs. Submitted by Approved as to form Susan Bigelow, MMC, City Clerk ~\lCN\~\'\~~ Ann Moore, City ttorney 5-4 CITY COUNCIL AGENDA STATEMENT ~'Yf:. CIIT OF -<;"" ~~ CHULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: , AUGUST 7, 2007, Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A DONATION OF $25,000 FROM THE HISTORIC HOMEOWNER COMMITTEE AND DEPOSITING THE FUNDS TO THE HISTORIC RESOURCES SURVEY DEPOSIT ACCOUNT FOR THE INITIAL FUNDING FOR A COMPREHENSIVE SURVEY OF HISTORIC RESOURCES IN CHULA VISTA CONSTI~NT SERVICES MANAGER, OFFICE OF THE MAYOR CHIEF 0 AFF, OFFICE OF THE MA YO~ 4/5THS VOTE: YES D NO 0 BACKGROUND The Historic Homeowner Committee wishes to donate $25,000 to the City for the initial funding for a comprehensive survey of the historic resources in ChuIa Vista. Adoption of the resolution accepts the funds to be deposited to the Historic Resources Survey deposit account and designates the funds for the use of the survey. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060( c )(3) of the State CEQA Guidelines the activity is not subject to CEQA. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 6-1 AUGUST 7, 2007, Item~ Page 2 of2 DISCUSSION Mayor Cox and the City Council are hosting "The Ultimate Open House Ice Cream Social" that is the kick-off event for Chula Vista's Centennial celebration, coming up in 2011. The event will be held on Saturday, August 18 from 2 - 5 p.m., at the historic home of Chula Vista's founder, Colonel William Dickinson. The 1887 Victorian, three story, 18-room Queen Anne home, is now owned by Jim Ladd and located at 1433 East 24th Street in National City. Proceeds from the ticket sales will be used to help fund a survey of Chula Vista's historic resources. The City has recently adopted the Historic Preservation Work Program that will implement the goals and objectives for Chula Vista's certification with the State Office of Historic Preservation that will include the adoption of a new historic preservation ordinance and the compilation of a comprehensive survey of local historic resources. In appreciation of the effort to adopt the Historic Preservation Work Program and efforts to increase public awareness of historic preservation by organizing "The Ultimate Open House Ice Cream Social" with the proceeds going towards the funding of a survey of Chula Vista's historic buildings, eight members of the historic homeowner committee would like to donate $25,000. The donation of $25,000 will be deposited to the Historic Resources Survey deposit account for the initial funding of a comprehensive survey of historic resources in Chula Vista. The eight historic homeowner committee members, Pamela Bensoussan; Glenda Devaney; Carlos Fox; Corinne McCall; Imozelle McVeigh; Jim McVeigh; John Parks; and Nancy Parks, voted unanimously on July 19, 2007, to donate $25,000, from its historic preservation-earmarked fund to the City to provide initial financing for the comprehensive survey of historic resources. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(l) is not applicable to this decision. FISCAL IMP ACT There is no impact on the general fund. The donation of $25,000 is for the specific purpose of initially funding a comprehensive survey of historic resources in Chula Vista. The $25,000 donation will be deposited in the Historic Resources Survey deposit account. ATTACHMENTS Resolution Letter from the members of the Historic Homeowner Committee 6-2 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A DONATION OF $25,000 FROM THE HISTORIC HOMEOWNER COMMITTEE AND DEPOSITING THE FUNDS TO THE HISTORIC RESOURCES SURVEY DEPOSIT ACCOUNT FOR THE INITIAL FUNDING FOR A COMPREHENSIVE SURVEY OF HISTORIC RESOURCES IN CHULA VISTA WHEREAS, eight historic homeowners serving as the steering committee for the historic home tours set up a fund in 2002 to benefit historic preservation in Chula Vista; and WHEREAS, the committee was determined to raise monies from historic home tours that could be used to support worthy historic preservation proj ects or programs in Chula Vista, such as underwriting the fmancing of a comprehensive City-wide survey of historic resources; and WHEREAS, since that time, net proceeds from annual historic home tour ticket sales and business sponsorships have been deposited; and WHEREAS, the City has recently adopted the Historic Preservation Work Program that will implement the goals and objectives for Chula Vista's certification with the State Office of Historic Preservation that will include the adoption of a new historic preservation ordinance and the compilation of a comprehensive survey of local historic resources; and WHEREAS, in appreciation of this recent effort by the City of Chula Vista to formally begin implementation and funding of these long awaited historic preservation programs, the Historic Homeowners Committee voted unanimously on July 19, 2007, to donate $25,000, from its historic preservation-earmarked fund to the City to provide initial financing for the comprehensive survey of historic resources; and WHEREAS, the Committee also recognized Mayor Cox's efforts to increase public awareness of historic preservation by organizing The Ultimate Ice Cream Social on August 18, 2007, at the historic 1887 Victorian home of Chula Vista's original developer, Colonel William Dickinson, and the stated purpose of the event is to raise funds to assist in the historic survey and kick-off planning for Chula Vista's Centennial 2011; and WHEREAS, the members of the Historic Homeowners Committee wish to donate $25,000, to be earmarked towards initial funding of the comprehensive historic survey, at this precise time in order to challenge others, including the business and development communities, to match these funds by contributing to the Mayor's "Ultimate Ice Cream Social" in order to underwrite further fmancing of this important survey. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept $25,000 from the Historic Homeowners Committee and deposits the $25,000 to 6-3 the Historic Resources Survey deposit account to be used specifically to begin the comprehensive survey of historic resources within the City. Submitted by: Approved as to form 'fi r ui' Constituent ervices Manager Office of the Mayor ~r~~~~\\ Ann Moore City Attorney 6-4 August 7, 2007 RE: Donation of $25,000 In) the Historic Homeowner Committee to begin the Historic Resources Suroelj Honorable Milyor and Citt) Council Members, Whereas, the eight historic homeowners seroing as the Steering Committee for the Historic Home tours set up a fund in 2002 to benefit Historic Preseroation in Chula Vista. The Committee was determined to raise monies from historic home tours that could be used to suppori worthy historic preseroation projects or programs in Chula Vista, such as underwriting the financing of a comprehensive cittj-wide suroelj of historic resources. Since that time net proceeds from annual historic home tour ticket sales and business sponsorships have been deposited. Whereas, the City has recently adopted the Historic Preseroation Work Program that will implement the goals and objectives for Chula Vista's certification with the State Office of Historic Preseroation that will include the adoption of a new Historic Preseroation Ordinance and the compilation of a comprehensive suroey of local historic resources. Whereas, in appreciation of this recent effort by the Citt) of Chula Vista to formally begin implementation and funding of these long awaited historic preseroation programs, the Historic Homeowners Committee voted unanimously on July 19, 2007, to donate $25,000, from their historic preservation-earmarked fund, to the Citt) to provide initial financing for the Comprehensive Survelj of Historic Resources. Whereas, the Committee also recognizes Mayor Cox's efforts to increase public awareness of historic preservation by organizing The Wtimate Ice Cream Social on August 18,2007, at the historic 1887 Victorian home ofChu/a Vista's original developer, Colonel William Dickinson. Whereas, the stated purpose of this event is to raise funds to assist in the Historic Survey and kick-offplanningfor Cltula Vista's Centennial 2011. Therefore, we, the members of the Historic Homeowners Committee, are donating $25,000 to be earmarked towards initial funding of the comprehensive historic suroey. And Therefore, we make the donation at this precise time in order to challenge others, including the business and development communities to match these funds by contributing to the Milyor's "Wtimate Ice Cream Social" in order to underwrite further financing of this important suroey. Sincerely, COMMITTEE MEMBERS: Pamela Bensoussan Glenda Devaney Carlos Fox Corinne McCall Imozelle McVeigh Jim Me Veigh John Parks Nancy Parks 6-5 CITY COUNCIL AGENDA STATEMENT ~!~ CITY OF ,~".l,....CHULAVIC'TA ,~~~ ~If\ 8/07/07, Item-L ITEM TITLE: RESOLUTION ACCEPTING AND APPROPRIATING A DONATION FROM THE THIRD AVENUE VILL~E, AS~~IATION DIRECTOR OF GENE~N'I~ CITY MANAGER ASSISTANT CITY GER~-r 4/STHS VOTE: YES ~ NO 0 SUBMITTED BY: REVIEWED BY: BACKGROUND The Animal Care Facility (ACF) has received a donation in the amount of $2,521.51 from the Third Avenue Village Association. Staff is recommending the donation be used to purchase necessary medical and laboratory supplies. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has detennined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council adopt the resolution accepting the donation in the amount of $2,521.51 and amending the FY08 services and supplies budget of the Animal Care Facility. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On June 23, 2007, the Third Avenue Village Association sponsored Pet Fest 2007. This premier pet event featured pet adoptions, contests, entertainment, delicious food, training tips, pet accessories, treat and much more. Pet Fest vendors were also on site offering low cost rabies vaccinations, on-site microchipping and on-site spaying and neutering on the SNAP Neuter Scooter. Proceeds from the event were donated to the Chula Vista Animal Care Facility. Staff is recommending the donation be used to purchase necessary medical and laboratory supplies. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has detennined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section I 8704.2(a)(I) is not applicable to this decision. FISCAL IMPACT At this time staff is recommending amending the FY08 Supplies and Services budget of the Animal Care Facility, accepting the donation and appropriating $2,521.51 for medical and laboratory supplies. Prepared by: Merce LeClair, Sr. Management Analyst, General Ser1it'el Dept. RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AND APPROPRIATING A DONATION FROM THE THIRD A VENUE VILLAGE ASSOCIATION WHEREAS, the Animal Care Facility has received a donation in the amount of $2,521.51 from the Third Avenue Village Association; and WHEREAS, on June 23, 2007, the Third Avenue Village Association sponsored Pet Fest 2007; and WHEREAS, this premier pet event featured pet adoptions, contests, entertainment, food, training tips, pet accessories, and treats; and WHEREAS, proceeds from the event were donated to the Chula Vista Animal Care Facility. NOW, THEREFORE BE IT RESOLVED that the City Council adopt the resolution accepting and appropriating a donation from the Third A venue Village Association in the amount of $2,521.51 to the Animal Care Facility and amend the FYOS General Services, Services & Supplies Animal Care Facility budget.. Presented by Approved as to form by ~~<N\1\\'lQ.1~'0\ Ann Moore City Attorney Jack Griffin Director of General Services 7-2 CITY COUNCIL AGENDA STATEMENT ITEM TITLE: 8/7 /07 I tern 8 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISlllNG A CAPITAL IMPROVEMENT PROJECT (CIP) DR-173, THE "FIFTH AVENUE DRAINAGE IMPROVEMENT PROJECT", AUTHORIZING INTERPROJECT TRANSFERS FROM EXISTING CAPITAL IMPROVEMENT PROJECTS TO CIP DR-173 IN THE AGGREGATE AMOUNT OF $455,164 TO COMPLETE THE PROJECT, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE "FIFTH AVENUE DRAINAGE IMPROVEMENTS IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. DR-173)" PROJECT TO MJC CONSTRUCTION IN THE AMOUNT OF $212,685 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE CHANGE ORDERS AS NECESSARY IN AN AGGREGATE AMOUNT NOT TO EXCEED $53,171 DIRECTOR OF GENERAL ERVICES ~~ , J '7--) CITY MANAGER ASSISTANT CITY 4/5THS VOTE: YES L8J NO D BACKGROUND The proposed project provides for the construction of a drainage facility west of Fifth A venue at the intersection of Fifth Avenue and Clariss Street in the City of Chula Vista. On Wednesday, July 11, 2007 at 2:00 p.m, the Director of General Services received six (6) sealed bids for the "Fifth Avenue Drainage Improvements, in the City of Chula Vista, California (CIP No. DR- 173)" project. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 2(c) categorical exemption pursuant to Section 15302, entitled Replacement or Reconstruction of the State CEQA Guidelines. Thus, no further environmental review is necessary. 8-1 8/7/07, Item B Page 2 of 4 RECOMMENDATION 1. Council adopt resolution establishing a Capital Improvement Project entitled "Fifth Avenue Drainage Improvements in the City ofChula Vista, California (CIP No. DR- 173)" and transferring existing funds from various capital improvement proj ects to DR-173 for said purpose. 2. Council adopt resolution accepting bids and awarding contract for the "Fifth Avenue Drainage Improvements, in the City of Chula Vista, California (CIP No. DR-133)" project to MJC Construction, in the amount of$212,685.00. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION This project consists of the installation of a concrete U-charmel (approximately 210 linear feet) west of Fifth Avenue (see Attachment I). The general scope of the project involves all labor, material, equipment, tools, transportation, mobilization, traffic control, removal and disposal of existing improvements, and other work necessary to construct the project in accordance with City standards. The project is located downstream of and will work in conjunction with "Emerson Street Drainage improvements" (DR-133). The Emerson Street drainage project, now in construction, was identified as a top drainage priority in the Infrastructure Deficiency Report presented to Council on April 5, 2007. As part of the more specific drainage study done for DR-133, the area of the proposed project (DR-173) was identified as one with a high probability of flooding. The design for the project before Council tonight will serve to provide protection for the public and private properties in the vicinity. DR-133 was awarded first because it's a larger project and requires more construction time. DR-173 will be completed concurrently with DR 133. BID ACCEPTANCE On July 11, 2007, General Services staff received and opened bids from six (6) contractors as follows: CONTRACTOR BID AMOUNT 1. MJC Construction - Bonita, CA $212,685.00 2. Metropolitan Construction Bonita, CA $222,880.50 3. New Century Construction - Lakeside CA $228,522.00 4. Palm Engineering - San Diego, CA $236,115.00 5. Bonita Pipeline, Inc. - Bonita, CA $275,352.90. 6. Zondiros Corp - San Marcos, CA $322,464.00 The apparent lowest bid of $212,685 submitted by MJC Construction is $27,315 or approximately 11.4% below the Engineer's estimate of $240,000. The Engineer's estimate was based on average prices for similar types of work completed during the last two years. References provided by the contractor have been reviewed and their work record found to be 8-2 8/7/07, ItemL Page 3 of 4 satisfactory. This Contractor has also performed on past City projects and the work was consistent with City standards. The Contractor's license is current. Approval of tonight's resolution will also authorize City staff to expend all available funds and increase the value of the contract as necessary due to unforeseen circumstances. Unforeseen circumstances may cause an increase in quantities beyond what was anticipated during the preparation of the project specifications. Due to the age of the surrounding area, unforeseen circumstances may occur during the removal of the existing improvements and the Contractor may find field conditions different from proposed improvement plans and specifications. As a result, a change order for additional labor and/or material may be required to complete the project. This is a typical situation with all storm drain projects built within this area. According to City Council Policy No. 574-01, if a change order exceeds the cumulative contract change order aggregate amount allowable to be approved by the Director of Public Works Operations, City Council approval is required. Under said City Council Policy, the amount would be $29,156. However, approval of tonight's resolution will increase the Director of Public Works Operations' authority to approve change orders as necessary up to the contingency amount of $53,171. If this money is not used during construction, the additional funds shall be redistributed to the appropriate original funding source. DISCLOSURE STATEMENT Attached is a copy of the Contractor's Disclosure Statement (Attachment 2). STAFF COSTS As part of an ongoing program to correct drainage through Emerson Street and Fifth Avenue, staff sought the expertise of an engineering firm to help resolve the difficult utility issues. With the aid of CV ALDO Corporation, the City was able to bring in new ideas and allocate staff s time to other projects. CV ALDO Corporation completed the design and after review of CV ALDO's design, staff was able to advertise this project. Said firm is one of three that have an on-call contract with the General Services Department for expertise and workload issues. A Staff Resource Implementation has been provided as Attachment 3. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the properties which are the subject of this action. FISCAL IMPACT At this time, staff recommends awarding the contract in the amount of $212,685 to accomplish the construction of the capital improvement project DR-173. 8-3 8/7/07, Item /3 Page 4 of 4 FUNDS REQUIRED FOR PROJECT Contract Amount $212,685 Contingencies (25% of contact amount) $53,171 Total Hard Cost (T.H.C) $265,856 Consultants and Staff Time Cost Consultant Staff Time Total % ofT.H.C. Survey Work $0 $32,000 $32,000 12.04% Design/Construction Management $54,000 $22,750 $76,750 28.87% Construction Inspection $0 $40,000 $40,000 15.05% Environmental $0 $1,000 $1,000 0.38% Engineering $0 $490 $490 0.18% Right of Way $0 $17,368 $17,368 6.53% City Attorney/Finance/GIS $0 $1,000 $1,000 0.38% Soil Testing and Study $0 $10,000 $10,000 3.76% Permits and Other Proiect Cost Title Reports $1,700 Property Owner's Compensation $8,000 Miscellaneous $1,000 Total Soft Cost $189,308 TOTAL $455,164 FUNDS AVAILABLE FOR PROJECT A. Capital Improvement ProjectlFiscal Agent $0 B. Residential Construction Tax (RCT) $0 Interproject Transfer From DR 169 (Fiscal Agent) $45,094 Interproject Transfer From DR 165 (Fiscal Agent) $10,000 Interproject Transfer From DR 160 (Fiscal Agent) $198,544 Interproject Tranfer From DR 160 (RCT) $20 1,526 TOTAL $455,164 There is no impact to the General Fund. Upon completion of the project, the improvements will require only routine City drainage maintenance. Because of the clear and present necessity for this project, staff is proposing fund to be transferred from DR-160 that is a lower priority project and DR-165 and DR-169 that have been completed and have funds remaining ATTACHMENTS Attachment 1 - Project Area Plat Attachment 2 - Contractor Disclosure Statement Attachment 3 - Staff Resource Implementation Prepared by: Roberto Yano, Sr. Civil Engineer, General Services M:\General Services\GS Administration\Council Agenda\DR.173\DR173.a113Rl pgs.doc 8-4 ex) \ u\ f ~ Q: \SoSKPRQJ\X-Po\Monlgomery Areo.dwg 07/24/2007 08: 15:48 AM PDT ORAWN BY: nTLE: POTEN G. SAN PEDRO DA TE: SHEET 1 07-24-07 OF 1 SHTS. CITY OF CHULA VISTA DRAINAGE IMPROVEMENTS, FIFTH AVENUE PROJECT FILE #DR173 PREPARED BY: POTEN G. SAN PEDRO APPROVED BY: ROBERTO YANO :J> -1 ..; J> o I s: m z --< I I~ AiT.t\CHMENT Z- City of Chula Vista Disclosure Statement Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. :::TAv II;;. (a. ;)1 M G: NE.... 2. If any person" identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. ::lAvl!:;\>- :::rIME>-.lE~ 3. If any person" identified pursuant to (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. (...J/A . 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. irA\J1t:::-p. :T'MF-:./'.J~L- 5. Has any person" associated with this contract had any financial dealings with an official"" of the City of Chula Vista as it relates to this contract within the past 12 months? Yes_ No~ 15 M:\General ServicesIDesignIDRI73IDR 173-CONTRACf.doc 8-6 If Yes, briefly descn"be the nature of the financial interest the official" may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No )t.Yes _ If yes, which Council member? 7. Have you provided more than $340 (or an item of equivalent value) to an official" of the City of Chu1a Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No X If Yes, which official** and what was the nature of item provided? Date: 1-11- 0'"1 0~~ SIgnature of Contractorl Applica trAVIEI4 -::t\Me.NS:Z.. Print or type name of Contractor! Applicant , Person is defined as: any individual, fIrm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. .. Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member ofa board, commission, or committee of the City, employee, or staff members. 8-7 ATTACHMENT 3 STAFF RESOURCE IMPLEMENTATION Project: "FIFTH A VENUE DRAINAGE IMPROVEMENTS IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO. DR-I 73)"drainage facility west of Fifth. The proposed project will construct a 4.5 feet deep by 1 0 feet wide concrete U .channel (approximately 210 linear feet) west of Fifth Avenue at the intersection of Fifth Avenue and Clariss Street in the City of Chula Vista. 1) Project Management $22.750 Budget: The budget is first analyzed for contractibility from design to construction. Staff time for design, survey, right-of-way, environmental processing and others. This budgent is monitored continually and documented for future Staff time refinement. Department Coordination Environmental: Even though this project was a categorical exemption, coordination with the Environmental group was necessary to comply with state laws. Right of Way: Coordination of one easement and 3 right of entries were required for this project. Construction Survey: Identify infrastructure and digitized information, determine limits of properties, create plats and legal descriptions & quality control (QC). Coustruction Inspection: Conference for different construct ability methods & QC and Quality Assurance. Public Works Operations: Discussed future maintenance of proposed facilities Processing/Council Agenda preparation: This project involved City ordinance research and coordination with City attorneys. Utilities Company Coordination: Coordination with Utility Companies to eliminate infrastructure conflict with utility facilities. 2) Desil!n $54.000 Improvement Plans: The City puts lots of effort in the creation of improvements plans because they are the means to transfer information from the office to the field Contractor and City staff. In addition improvement plans become contract documents between the Contractor and the City. In this case, a consultant was used because of workload issues. Specification: Special instructions to the Contractor are written and public safety and utilities protection is written in to specification. Quality Control is cheeked for construct ability. These Specifications also become the contract documents between the Contractor and the City. The specification define the materials to be used, installation procedures, quantities, pay items and test to be performed for each improvement. 8-8 Analysis of Survey Points: Survey crew is sent out to gather data to physical locations of existing improvements. These points are tied to real world coordinate systems. Base Drawing Creation: With the survey points, existing infrastructure is laid out. Research is conducted to identifY the infrastructure of both seen and unseen facilities. Often times, pot holing is done to verifY underground facilities. Proposed Storm Drain Alignment and Profile: With the existing improvements and limitations to design standard, a new proposed alignment is created. From this alignment the Storm Drain profile is created and analyzed for functionality. Storm Drain Study: Documentation of analysis is written for project record keeping. Modification and design criteria are detailed. Because of the magnitude and complexity of the improvements a detail study was performed for the design storm. Based on this study, correct size and slope were determined for the proposed improvements. 8-9 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING CIP DR-I 73, THE "FIFTH A VENUE DRAINAGE IMPROVEMENT PROJECT, AUTHORIZING INTERPROJECT TRANSFERS FROM EXISTING CAPITAL IMPROVEMENT PROJECTS TO CIP DR-I73 IN THE AGGREGATE AMOUNT OF $455,164 TO COMPLETE THE PROJECT, AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE FUNDS IN THE PROJECT WHEREAS, the Infrastructure Deficiency Report presented to Council on April 5, 2007 (Report) identified various areas throughout the City as having drainage deficiencies; and WHEREAS, a more specific drainage study done for one of the areas (DR-B3 - Emerson Street Drainage Project) listed in the Report, identified the area of the proposed project (DR-I 73) as one with a high probability of flooding. WHEREAS, the Fifth Avenue Drainage Improvement Project has been proposed to address the concerns raised by the more specific drainage study; and WHEREAS, City Staff and the consultant firm of Cvaldo Corporation prepared the plans, contract documents and technical specifications for "Fifth Avenue Drainage Improvements in the City of Chula Vista, California (CIP No. DR-173)"; and WHEREAS, the cost estimate for CIP No. DR-I73, including design, construction, permits, testing, etc. as identified in the Council Agenda Statement is $455,164.00; and WHEREAS, staff suggests the establishment of a Capital Improvement Project, entitled "Fifth Avenue Drainage Improvements" (CIP No. DR-173); and WHEREAS, staff recommends an interproject transfer from various existing Capital Improvement Projects to the "Fifth Avenue Drainage Improvements in the City of Chula Vista, California (CIP No. DR-173)" in the amount of $455,164.00 ($45,094 from DR-169, $10,000 from DR-165, $198,544 from DR-160, and $201,526 from DR-160(RCT)) to complete the project; and WHEREAS, the Capital improvement project DR-165 and DR-I 69 have been completed and have funds remaining, and DRI60 "F Street Drainage Facilities" has a lower priority and has sufficient funds to transfer $400,070 to the "Fifth Avenue Drainage Improvements in the City of Chula Vista, California (CIP No. DR-173)"; and 8-10 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby establish a Capital Improvement Project, entitled "Fifth Avenue Drainage Improvements," CIP DR.I?3, authorize interproject transfers from existing capital improvement project DR.165 ($10,000), DR-169 ($45,094) and Capital Improvement Project DR.160 "F Street Drainage Facilities" ($198,544 and $201,526), to DR.l73 in the aggregate amount of $455,164.00 to complete the project, and authorize the expenditure of all available funds in the project. Presented by Jack Griffin Director of General Services 8-11 RESOLUTION NO. 2007- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING THE CONTRACT FOR THE FIFTH AVENUE DRAINAGE IMPROVEMENTS, IN THE CITY OF CHULA VISTA, CA (CIP No. DR-173) TO MJC CONSTRUCTION IN THE AMOUNT OF $212,685 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE CHANGE ORDERS AS NECESSARY IN AN AGGREGATE AMOUNT NOT TO EXCEED $53,171. WHEREAS, City staff and the consultant firm of Cvaldo Corporation prepared the plans, contract documents and technical specification for the "Fifth Avenue Drainage Improvements, in the City ofChula Vista, California (CIP No. DR-173)" project and advertised the project; and WHEREAS, On July 11, 2007, the Director of General Services received six (6) sealed bids for the "Fifth Avenue Drainage Improvements, in the City of Chula Vista, California (CIP No. DR-173)" project; and WHEREAS, MJC Construction of Bonita California submitted a bid of $212,685.00 which is $27,315 or approximately 11.4% below the Engineer's estimate of $240,000, and WHEREAS, staff has verified the references provided by the contractor and the contractor has previous done satisfactory work for the City; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 2(c) categorical exemption pursuant to Section 15302, entitled Replacement or Reconstruction of the State CEQA Guidelines. Thus, no further environmental review is necessary; and WHEREAS, staff recommends awarding MJC Construction for the "Fifth Avenue Drainage Improvements, in the City ofChula Vista, California (CIP No. DR-l?3)" project in the amount of$212,685; and WHEREAS, though the contract bid was based on conditions believed to be existing, all underground projects have a level of risk due to the unknown challenges that could be encountered under the surface in the course of construction. When such unforeseen circumstances arise, they may cause an increase in quantities beyond what was anticipated during preparation of the project specification; and WHEREAS, in light of such unforeseen circumstances, staff recommends a waiver of Council Policy 574-01, to permit the Director of Public Works Operations' to authorize change orders as necessary in an aggregate amount not to exceed $53,171. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of ChulafVista does accept bids and award contract for the "Fifth Avenue Drainage Improvements, in the 8-12 City of Chula Vista, California (CIP No. DR-I73)" Project to MJC Construction in the amount of$212,685. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby waives the change order limitations in Council Policy 574-01 to permit the Director of Public Works to authorize change orders as necessary in an aggregate amount not to exceed $53,171. Jack Griffm Director of General Services Presented by 8-13 CITY COUNCIL AGENDA STATEMENT ~!~CITYOF i~CHUIA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: 8/7/07. Item 9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY OF CHULA VISTA TO BE THE LEAD AGENCY IN THE SOUTH BAY REGIONAL HOUSEHOLD HAZARDOUS WASTE PROGRAM, AUTHORIZING THE SUBMITTAL OF GRANT APPLICATIONS TO THE CALIFORNIA INTEGRATED WASTE MANAGEMENT BOARD, AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE ALL GRANT DOCUMENTS NECESSARY TO SECURE GRANT FUNDS AND IMPLEMENT THE APPROVED GRANT PROJECTS ON BEHALF OF THE CITY OF CHULA VISTA AND PARTICIPATING JURISDICTIONS DIRECTOR OF GE~,~~SFRVICES~~ CITY MANAGER ~/Uf/ ASSISTANT CITY AGER <r 'i 4/5THS VOTE: YES D NO C8J BACKGROUND In June 2007, the Environmental Services Division, General Services Department submitted a regional grant application to the California Integrated Waste Management Board (Waste Board) requesting $300,000 for electronics, batteries, fluorescent light bulb and sharps/syringe waste collection events for the South Bay Regional Household Hazardous Waste Program (SBRHHWP) which is comprised ofChula Vista, Imperial Beach and National City. Council had previously approved the submittal of grant applications through Resolution 2005- 187 (attached). The Waste Board contacted City staff, requesting that the City adopt a modified resolution also authorizing the City to be the lead agency for the region. Staff has prepared a modified resolution responsive to the Waste Board's request. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council approve the resolution authorizing and empowering the City Manager or designee to execute all grant documents necessary to secure Local Government Household Hazardous Waste 9-1 8/7/07, Item~ Page 2 of2 and Used Oil Grant funds and implement the approved grant projects on behalf of the City of Chula Vista, as the lead agency, and participating jurisidictions. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista is the lead agency in the South Bay Regional Household Hazardous Waste Program (SBRHHWP), which is a partnership between the cities of Chula Vista, Imperial Beach, and National City. This partnership has been in place for over seven years and from time to time other jurisdictions (Coronado, south San Diego County and City) have joined the South Bay Regional Program based upon the projects being implemented. The Waste Board, per AB 1220 (Eastin), provides grants to local governments to establish and implement waste diversion and separation programs to prevent disposal of hazardous waste, including household hazardous waste, in solid waste landfills. In June 2007, the South Bay Regional Household Hazardous Waste Partnership applied for a three-year, $300,000 Local Government Household Hazardous Waste Grant. These funds will be used to improve collection/drop-off opportunities and increase awareness of proper disposal requirements for materials targeted by this year's grant program: electronics, batteries, fluorescent lamps and sharps/syringes from home application of medications such as insulin. The application contains the support letters from Imperial Beach and National City authorizing Chula Vista to act on their behalf. City Council had previously granted authority to the City Manager and/or designated staff to execute all grant documents necessary to secure local government household hazardous waste and used oil grants and implement the approve grant projects. However, the Waste Board recently contacted City staff, requesting that the City adopt a modified resolution additionally authorizing the City to be the lead agency. The modified resolution does not change how we have been operating but rather, meets the request of the Waste Board. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section l8704.2(a)(I) is not applicable to this decision. FISCAL IMPACT There is no impact to the General Fund. ATTACHMENTS 1. Resolution 2005-187 Prepared by: Lynn France. Environmental Services Program Manager, General Services Department M:\General Services\GS Administration\Council Agenda\Environmental\AGENDA STATEMENTS\A 113 2007-D& grant reso, 8-7-07.doc 9-2 ATTACHMEN1 / -- RESOLUTION NO. 2005-187 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AND EMPOWERING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE ALL GRANT DOCUMENTS NECESSARY TO SECURE LOCAL GOVERNMENT HOUSEHOLD HAZARDOUS WASTE AND USED OIL GRANT FUNDS AND IMPLEMENT THE APPROVED GRANT PROJECTS WHEREAS, the people of the State of California have enacted the California Oil Recycling Enhancement Act, which provides grant funds to cities and counties for establishing and maintaining local used oil collection programs that encourage recycling or appropriate disposal of used oil ("Used Oil Grants"); and WHEREAS, the people of the State of California have enacted Assembly Bill 1220 that provides grants to local governments to establish and implement waste diversion and separation programs to prevent disposal of hazardous waste, including household hazardous waste, in solid waste landfills ("HHW Grants"); and WHEREAS, the California Integrated Waste Management Board has been delegated the responsibility for administering these grant programs, which includes procedures governing the application by and payment to eligible cities and counties; and WHEREAS, if awarded a grant, the applicant will enter into a grant agreement with the California Integrated Waste Management Board for implementation of said grants. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista authorizes the submittal of grant applications to the California Integrated Waste Management Board for all available grants under the California Oil Recycling Enhancement Act and all available HHW Grants from the time this resolution is adopted, through June 30, 2009; and BE IT FUR THER RESOLVED THAT the City Manager of the City of Chula Vista, or the City Manager's designee, is hereby authorized and empowered to execute in the name of the City of Chula Vista, all grant documents necessary to secure grant funds and implement approved projects relative to Used Oil Grants and HHW Grants. Presented by Approved as to form ~~rv~irector -,-~ n1.A~ Ann Moore City Attorney 9-3 Resolution No. 2005-187 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of June, 2005, by the following vote: AYES: Councilmembers: Castaneda, Davis, McCann, Rindone and Padilla NAYS: Councilmembers: None ABSENT: Councilmembers: None ~~~ Stephen C. adilla, Mayor A TIEST: =--I.lJJ..Al'~~ Susan Bigelow, MMC, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2005-187 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 7th day of June, 2005. Executed this 7th day of June, 2005. - ---tu. o...c ~C:;(~ Susan Bigelow, MMC, City Clerk .. 9-4 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY OF CHULA VISTA TO BE THE LEAD AGENCY IN THE SOUTH BAY REGIONAL HOUSEHOLD HAZARDOUS WASTE PROGRAM, AUTHORIZING THE SUBMITTAL OF GRANT APPLICATIONS TO THE CALIFORNIA INTEGRA TED WASTE MANAGEMENT BOARD, AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE ALL GRANT DOCUMENTS NECESSARY TO SECURE GRANT FUNDS AND IMPLEMENT THE APPROVED GRANT PROJECTS ON BEHALF OF THE CITY OF CHULA VISTA AND PARTICIPATING JURISIDICTIONS. WHEREAS, on June 7, 2005, pursuant to Resolution No. 2005-187, the City Council, authorized the submittal of grant applications to the California Integrated Waste Management Board (Waste Board) for all available grants under the California Oil Recycling Enhancement Act (Used Oil) and all available household hazardous waste (HHW) grants through June 30, 2009; and WHEREAS, pursuant to Resolution No. 2005-187, the City Council also authorized the City Manager to execute all grant documents necessary to secure grant funds and implement approved projects relative to the Used Oil Grants and the HHW Grants; and WHEREAS, in June 2007, the City has submitted a grant application to the Waste Board requesting $300,000 for electronics, batteries, fluorescent light bulb and sharps/syringe waste collection events for the South Bay Regional Household Hazardous Waste Program (SBRHHWP), pursuant to the authorization granted by Resolution No. 2005-187; and WHEREAS, the SBRHHWP is comprised of the Cities of Chula Vista, Imperial Beach, and National City; and WHEREAS, the Waste Board has requested that the City act as lead agency for the SBRHHWP; and WHEREAS, staff is asking for an extension of the date for the submittal of grant applications to the Waste Board. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: I. That it authorizes the City of Chula Vista to act as lead agency for the South Bay Regional Household Hazardous Waste Program. 9-5 2. That it authorizes the submittal of grant applications to the California Integrated Waste Management Board for all available grants under the California Oil Recycling Enhancement Act and all available Household Hazardous Waste grants for the period of five years, not to exceed June 30, 2012. 3. That it authorizes the City Manager, or designee, to execute all grant documents necessary to secure grant funds and implement the approved grant projects. Presented by: Approved as to form: Jack Griffin General Services Director ~~a.~ Ann Moore City Attorney .I:\Attorney\RESO\GENERAL SERVICES\Hollsehold Haz Waste Grant City Lead Agency.doc 9-6 ITem -7f- / tJ ~l~ -~- -- CllY Of CHUIA VISTA COUNCIL INFORMATION MEMORANDUM DATE: August 7, 2007 TO: The Honorable Mayor and City Council VIA: David R. Garcia City Manager FROM: James D. Sandoval, Director of Planning and Building SUBJECT: Consent Item #lO/Design Review Committee HPAC Appointment Please be advised that at a regularly scheduled meeting, held August 6, 2007, the Design Review Committee (DRC) voted to nominate David Bringas as the DRC representative for the Historic Preservation Advisory Committee (HPAC) and Jeremy Hogan as the alternate representative. CITY OF CHULA VISTA CITY COUNCIL AGENDA STATEMENT Item No.: 10 Meeting Date: 08-07-2007 ITEM TITLE: REPORT: RATIFICATION OF THE INTERIM HISTORIC PRESERVATION ADVISORY COMMITTEE MEMBERSHIP AND OPERATIONAL PROCEDURES. SUBMITTED BY: REVIEWED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING THE APPOINTMENTS AND OPERATIONAL PROCEDURES OF THE INTERIM HISTORIC PRESERVATION ADVISORY COMMITTEE. DIRECTOR OF PLANNING AND BmLDIN~ ASSISTANT CITY~ER <s.r "'. ~ CITY MANAGER 4/5THS VOTE: YES NO_X_ As part of the Historic Preservation Work Program, approved by Council on May 22, 2007, Council authorized the formation of an Interim Historic Preservation Advisory Committee (HP AC) to assist staff in finalizing a Historic Preservation Program for the City of Chula Vista. According to the membership structure presented in the Work Program, staff has solicited individuals to serve on this committee from each of the City development related committees and commissions, the Heritage Museum Board, the Third Avenue Village Association, the Redevelopment Advisory Committee and two (2) community members at large. Staff has also developed operational procedures to assist the HP AC in the process. BACKGROUND Summary of The Proposed Work Program: The Historic Preservation Work Program (Work Program) approved by Council on May 22, 2007, consists of a phased implementation approach that will coordinate the efforts of staff, City committees and commissions, and the community at large to finalize the development of the Historic Preservation Program (HPP). The Work Program will fmalize and bring forward, for formal consideration the HPP that staff has developed to date. The Work Program includes, finalization of a Historic Preservation Ordinance with refmed criteria and procedures, a proposal for a Historic Resources Survey, and the formation of an advisory committee. 10-1 Date, Item No.: ID Meeting Date: 08-07-2007 Page 2 of5 This phased approach is intended to identify and group tasks into manageable parts, include the public and decision makers in the development of the HPP and provide a collaborative process that will address potential issues upfront, prior to adoption of the final HPP. The diverse membership of the HPAC provides a good balance of education, knowledge and experience and will ensure that broad based interests are addressed throughout the Work Program. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 31 categorical exemption pursuant to Section 15331 (Historical Resource Restoration/Rehabilitation) of the State CEQA Guidelines. Thus, no further environmental reVIew IS necessary. RECOMMENDATION Staff recommends that Council approve the Interim Historic Preservation Advisory Committee membership appointments and operational procedures. BOARDS/COMMISSION RECOMMENDATION Each of the development related City committees and commissions appointed one member and one alternate to sit on the Historic Preservation Advisory Committee and therefore recommends that City Council approve each of the appointments. DISCUSSION Interim Historic Preservation Advisorv Committee Appointments: Subsequent to Council approval of the Work Program, Staff contacted each of the development related committees and commissions, Third Avenue Village Association and the Heritage Museum Board to request that each formally appoint one (1) member and one (1) alternate to sit on the HP AC. Staff asked that appointees with education, experience and/or a special interest in historic preservation, archeology, history, architectural history, and/or architecture be considered to sit on the HP AC. The appointments are provided below. Community Outreach and Selection Process: Staff conducted the selection process of the community members at large. The outreach process to the community at large consisted of print media and advertising, distribution of brochures and posting of flyers, website postings, and mail correspondence to historic homeowners and other members of the public that had previously expressed interest in historic preservation in Chula Vista. (Attachment 1) The time and date of the HPAC meetings will be determined collectively by the HP AC and therefore, those residents that had flexibility in their schedules were asked to 10-2 Date, Item No.: 10 Meeting Date: 08-07-2007 Page 3 of 5 apply. All interested residents were asked to complete and submit an application prior to July 16, 2007. Three (3) applicants applied to participate as community members on the HPAC. Given that the number of applications received is fewer than the two members and two alternates anticipated in the Work Program, staffrecommends a slight modification to the HPAC composition that was proposed in the Work Program approved on May 22,2007. At this time, Staff recommends that two applicants be approved to sit as members of the HP AC and that the third applicant sit as an alternate to both members. Staff further recommends that staff continue efforts to fill the position and that position remain open until filled. If staff is unable to fill the position, the one alternate will remain the alternate to both sitting members until the HP AC sunsets. Communitv Member Selection Process: Staff reviewed all submitted applications and selected the two community members and one alternate based upon the committee and commission appointee composition. Of the applications received, the community members selected will provide the HP AC a balance in experience and knowledge. Staff's recommendation for community members at large, to be ratified by Council, are provided below. Group Reoresentation and Membership: The represented group of each of the appointees and alternates is included below: Planninl! Commission- Member: Pamela Bensoussan Alternate: Mike Spethman Resource Conservation Commission- Member: Georgie Stillman Alternate: Doug Reid Desil!n Review Committee- Due to a lack of a quorum, the Design Review Committee has not held a meeting since staff requested that they appoint a member to the HPAC. The next scheduled Design Review Committee meeting is August 6, 2007, at which the DRC is scheduled to appoint a member to the HP AC. Staff will present the Design Review Committee appointment verbally at the Council meeting, August 7, 2007. Redevelopment Advisorv Committee- Member: Patricia Aguilar Alternate: Lisa Cohen Herital!e Museum Board- Member: Jim McVeigh Alternate: Glenda Devaney 10-3 Date, Item No.: 10 Meeting Date: 08-07-2007 Page 4 of 5 Third Avenue Villa2e Association- Member: Cheryl Mestler Alternate: Jack Blakely Communitv Members- Member: Kevin O'Neill Member: Susan Walter Alternate: Earl Jentz Alternate: To Remain Open until Filled HPAC RESPONSIBILITIES AND OPERATIONAL PROCEDURES: The HP AC will serve primarily as an advisory group to staff and a historic preservation consultant. The intent of the HP AC is to build and maintain community participation and to provide community ownership in the finalization of the City's HPP. The responsibilities and operational procedures of the HPAC are sununarized below and detailed in Attachment 2. General Functions and Duties: Input from the HPAC will be crucial to finalizing both the content and structure of the HPP. The general functions and duties of the HPAC will include but will not be limited to: . Recommend on content and structure of the Draft HPP. . To work with staff and/or consultants on any other functions related to the development of a comprehensive HPP. Operational Procedures: The operational guidelines and procedures of the HPAC will follow the City Charter and the City Municipal Code. Decisions and recommendations will be based upon a majority vote and all procedures are subject to Article VI (600-606) of the City Charter. Term of Service and Attendance: To complete the HPP in a timely manner will require that the HPAC meet on, approximately, a bi-monthly basis. The HPAC will commence its efforts immediately upon approval of City Council and will serve in its capacity if and until a permanent commission is formed. The HP AC will sunset upon formation of a Historic Preservation Commission. DECISION-MAKER CONFLICTS: Not Applicable: Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations Section I 8704.2(a)(I) is not applicable to this decision. FISCAL IMPACT: No budget authorization is required at this time. The costs of the HP AC functions and duties will be accomplished through the staff and resources identified in the Work Program approved 10-4 Date, Item No.: 10 Meeting Date: 08-07-2007 Page 5 of5 by Council on May 22,2007. A$ stated in the Work Program, all costs associated with the HPAC will be absorbed in the Planning and Building Departments Fiscal Year 07/08 budget. ATTACHMENTS: 1. HP AC Operational Procedures '2. HPAC Members 10-5 Historic Preservation Work Program Interim Historic Preservation Advisory Committee Operational Guidelines . . COMMITTEE MEMBERSHIP: The Interim Historic Preservation Advisory Committee (HPAC) is comprised of eight members representing members from each of the development related committees and commissions, key stakeholder groups in the City and two community members at larg~ I The HPAC is intended to be broadly representative and include persons with experience, education, and/or knowledge of historic preservation or related fields. . One person and 1 alternate from each of the following committees and commissions or stakeholder groups shall be appointed by the respective committee, commission or group and ratified by Council to sit on the Committee. )- Design Review Committee )- Resource Conservation Committee )- Planning Commission )- Redevelopment Advisory Committee )- Third Avenue Village Association )- Heritage Museum Board . Two community members at large and two alternates with qualifications or general interest in historic preservation shall be selected by staff and ratified by Council to sit on the Committee. Functions and Duties: In establishing the HPAC, it is the intent of the City Council to build and maintain community participation and to provide community ownership in the finalization of the City's Historic Preservation Program (HPP). Input from the HPAC will be crucial to finalizing both the content and structure of the HPP document and will include the following functions and duties: 10-6 HP AC Operational Procedures 2 . Recommend on content and structure of the Draft HPP. . Participate in the drafting of a permanent Historic Preservation Ordinance. . Contribute to the development of a Historic Context Statement for the City of Chula Vista. . Draft process and procedures for a comprehensive citywide Historic Resources Survey. . To work with staff and/or consultants on any other functions related to the development of a comprehensive HPP. OPERATIONAL PROCEDURES: The operational guidelines and procedures of the HPAC will follow the City Charter and the City Municipal Code. Key decisions and recommendations will be voted upon and all procedures are subject to Article VI (600-606) of the City Charter, unless as modified herein which provisions shall govern. . Selection of a chairperson and vice-chairperson by the HPAC members . Meetings will be held approximately bi-monthly (typically in the evenings) day(s) and time(s) to be decided by the members . Meetings will be held at the City, , or at another location subject to notification. . Meetings will be open to the public and notices will be posted at the City. Agendas and limited minutes will be prepared. . All meetings and notices will be governed by the Brown Act and any other rules and regulations by which other City boards, and commissions are bound to in the conduct of public meetings. . A minimum of (5) members, a majority of the membership, shall constitute a quorum for conduct of meetings. . When a vote is necessary, a vote by a majority of the members present at a meeting shall constitute action by the HPAC. TERM OF SERVICE AND ATTENDANCE: To complete the HPP in a timely manner will require that the HPAC meet on a bi-monthly basis. The HPAC would commence its efforts immediately upon approval of Council and will serve in its capacity if and until a permanent commission is formed. 10-7 HP AC Operational Procedures 3 . The term of service will be through the adoption of the HPP document by Council and the commencement of the permanent Historic Preservation Commission. . Any member who cannot make a meeting should provide the earliest notice possible, but in no case less than at least 24 hour advanced notice to the chair or city staff and the alternate shall attend the meeting in their place. . Members shall be required to attend at least 80 percent of the meetings. Should a member miss two (2) meetings in a row without notification, or more than four meetings total, the chair will have the right to consider whether to request replacement of that member with the alternate. . If a member cannot fulfill their obligation, the alternate would step in as a voting member of the HPAC and the committee or commission that appointed them shall appoint another alternate member. MEETING SCHEDULE AND AGENDAS: The time and date of the HPAC bi-monthly meetings will be determined collectively by the HPAC subject to staff availability and schedules. Staff will develop and set agendas with topics for discussion at each meeting. 10-8 Historic Preservation Advisory Committee --IjI-- --,----IiI-- --.-- --IjI----IiI----.-- - -1jI----.-- --,-- --1iI- - --,-- Member Representation Planning Commission- Member: Pamela Bensoussan Alternate: Mike Spethman Resource Conservation Commission- Member: Georgie Stillman Alternate: Doug Reid Design Review Committee- Next Scheduled meeting = August 6, 2007 Member: Alternate: Redevelopment Advisorv Committee- Member: Patricia Aguilar Alternate: Lisa Cohen Heritage Museum Board- Member: Jim McVeigh Alternate: Glenda Devaney Third Avenue Village Association- Member: Cheryl Mestler Alternate: Jack Blakely Community Members- Member: Kevin O'Neill Member: Susan Walter Alternate: Earl Jentz Alternate: To remain open until filled AlTACHMENT 2 10-9 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING THE APPOINTMENTS AND OPERATIONAL PROCEDURES OF THE INTERIM mSTORlC PRESERVATION ADVISORY COMMITTEE WHEREAS, May 22, 2007 Council approved the Historic Preservation Work Program; and WHEREAS, the Historic Preservation Work Program includes, finalization of a Historic Preservation Ordinance with refmed criteria and procedures, a proposal for a Historic Resources Survey, and the formation of an Interim Historic Preservation Advisory Committee; and WHEREAS, subsequent to Council approval of the Work Program, staff solicited participation of each of the City development related committees and commission, the Heritage Museum Board, the Third A venue Village Association, and community residents to sit as members on the Interim Historic Preservation Advisory Committee; and WHEREAS, one (I) member and one (I) alternate of each of the City development committees and commission, the Heritage Museum Board, the Third Avenue Village Association were appointed by the respective committees, commissions and groups and two (2) community residents and two (2) alternates were selected by staff to sit as members on the Interim Historic Preservation Advisory Committee; and WHEREAS, a list of the Historic Preservation Advisory Committee members and alternates is attached hereto as Attachment I; and WHEREAS, the Operational Procedures of the Interim Historic Preservation Advisory Committee are attached hereto as Attachment 2; and WHEREAS, Staff requests that Council accept the member appointments and community member recommendations and approve the Operational Procedures of the Interim Historic Preservation Advisory Committee; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 31 categorical exemption pursuant to Section 15331 (Historical Resource RestorationlRehabilitation) of the State CEQA Guidelines. Thus, no further environmental review is necessary. 10-10 NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve the Interim Historic Preservation Advisory Committee membership appointments, recommendations and operational procedures. Presented by: Approved as to form by: James D. Sandoval Director of Planning & Building re ~\lcity 10-11 \L-f\J\ 'b (\ ", {. /"^ 7\ nmed \J '...JYJI)Cll'CT \ur " Av.:J,!):' ?-j 2..O:J::t I-!en: 10 Historic Preservation Work Program (""CkS: -.:ccq- ?cS Interim Historic Preservation Advisory Committee Operational Guidelines . . COMMITTEE MEMBERSHIP: The Interim Historic Preservation Advisory Committee (HPAC) is comprised of 10 members representing members from each of the development related committees and commissions, key stakeholder groups in the City two community members at large, and 1 member with historical knowledge or professional experience in history and 1 member that is an architect or historic architect. The HPAC is intended to be broadly representative and include persons with experience, education, and/or knowledge of historic preservation or related fields. The ten HPAC seats shall be filled as follows: . One person and 1 alternate from each of the following committees and commissions or stakeholder groups shall be appointed by the respective committee, commission or group and ratified by Council to sit on the Committee. ~ Design Review Committee ~ Resource Conservation Committee ~ Planning Commission ~ Redevelopment Advisory Committee ~ Third Avenue Village Association ~ Heritage Museum Board . Two community members at large and two alternates with qualifications or general interest in historic preservation shall be selected by staff and ratified by Council to sit on the Committee. * ~ . Two members shall have knowledge or experience of history and I architecture. 1 HPAC seat shall be held by a person with historical HP AC Operational Procedures 2 knowledge or a Historian and 1 HPAC seat shall be held by an architect or historic architect. Functions and Duties: In establishing the HPAC, it is the intent of the City Council to build and maintain community participation and to provide community ownership in the finalization of the City's Historic Preservation Program (HPP). Input from the HPAC will be crucial to finalizing both the content and structure of the HPP document and will include the following functions and duties: . Recommend on content and structure of the Draft HPP. . Participate in the drafting of a permanent Historic Preservation Ordinance. . Contribute to the development of a Historic Context Statement for the City of Chula Vista. . Draft process and procedures for a comprehensive citywide Historic Resources Survey. . To work with staff and/or consultants on any other functions related to the development of a comprehensive HPP. OPERATIONAL PROCEDURES: The operational guidelines and procedures of the HPAC will follow the City Charter and the City Municipal Code. Key decisions and recommendations will be voted upon and all procedures are subject to Article VI (600-606) of the City Charter, unless as modified herein which provisions shall govern. . Selection of a chairperson and vice-chairperson by the HPAC members . Meetings will be held approximately bi-monthly (typically in the evenings) day(s) and time(s) to be decided by the members . Meetings will be held at the City, or at another location subject to notification. . Meetings will be open to the public and notices will be posted at the City. Agendas and limited minutes will be prepared. . All meetings and notices will be governed by the Brown Act and any other rules and regulations by which other City boards, and commissions are bound to in the conduct of public meetings. HP AC Operational Procedures 3 . A minimum of (6) members, a majority of the membership, shall constitute a quorum for conduct of meetings. . When a vote is necessary, a vote by a majority of the members present at a meeting shall constitute action by the HPAC. TERM OF SERVICE AND ATTENDANCE: The HPAC would commence its efforts immediately upon approval of Council and will serve in its capacity if and until a permanent commission is formed. . The term of service will be through the adoption of the HPP document by Council and the commencement of the permanent Historic Preservation Commission. . Any member who cannot make a meeting should provide the earliest notice possible, but in no case less than at least 24 hour advanced notice to the chair or city staff and the alternate shall attend the meeting in their place. . Members shall be required to attend at least 80 percent of the meetings. Should a member miss two (2) meetings in a row without notification, or more than four meetings total, the chair will have the right to consider whether to request replacement of that member with the alternate. . If a member cannot fulfill their obligation, the alternate would step in as a voting member of the HPAC and the committee or commission that appointed them shall appoint another alternate member. MEETING SCHEDULE AND AGENDAS: The time and date of the HPAC meetings will be determined collectively by the HPAC subject to staff availability and schedules. Staff will develop and set agendas with topics for discussion at each meeting. CITY COUNCIL AGENDA STATEMENT 8/7107, ItemL ITEM TITLE: RESOLUTION OF THE CITY COUNCIL APPROVING THE FY 2007-2008 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISITORS BUREAU PROMOTIONAL SERVICES, AND VISITOR AND TRANSIT INFORMATION SERVICES. ACTING COMMUNI DEVELOPMENT DIRECTOR mW- CITY MANAGER ASSISTANT CITY ER c;;- SUBMITTED BY: REVIEWED BY: 4/STHS VOTE: YES D NO ~ BACKGROUND In 1994, in conjunction with consideration of the scheduled rate increase in the Transient Occupancy Tax (TOT), Council received a request from the Chamber of Commerce and Chula Vista Motel Association to create a Convention and Visitors Bureau. Similar bureaus serve North County, Carlsbad, East County, and the San Diego metropolitan area. Since 1995, the City has contracted annually with the Chula Vista Chamber of Commerce (Chamber) to provide Convention and Visitors Bureau services. According to Council Policy #230-01, the Council must approve a budget and related contract with the Chamber for the provision of Chula Vista Convention and Visitors Bureau Promotion Services, and Visitor and Transit Information Services at the Chula Vista Visitor Information Center and Chamber of Commerce Main Office. RECOMMENDATION That Council adopt the resolution approving the FY 2007-2008 contract between the City of Chula Vista and the Chula Vista Chamber of Commerce for the provision of Chula Vista Convention and Visitors Bureau Promotion Services, and Visitor and Transit Information Services at the ChuIa Vista Visitor Information Center and Chamber of Commerce Main Office. BOARDS/COMMISSION RECOMMENDATION Not applicable. 11-1 8/7/07, Item~ Page 2 of 4 DISCUSSION Back2round The City Council adopted a Council Policy (#230-01, see Attachment nAn) to support a Chula Vista Convention and Visitors Bureau (CVConvis) at its March 21, 1995 meeting. Convention and Visitors bureaus typically conduct advertising campaigns, produce brochures, attend trade shows, and operate tourist-oriented facilities to promote the City. The focus of the Chula Vista bureau, as established in 1995, is to promote Chula Vista destinations, including the U.S. Olympic Training Center, entertainment venues, golf, Yacht Harbor, local motels, restaurants, shopping, and special events such as Celebrate Chula Vista and Taste of the Arts. CVConvis also promotes Chula Vista during major conventions and events in the region, which in the past has included the Super Bowl and World Series. Also, at the March 21, 1995 meeting, Council approved increasing the TOT rate from 8% to 10% and approved a draft budget for CVConvis. The funds to operate CVConvis were included in the approved City budget for fiscal year 1995-96, subject to negotiation of a contract with the Chamber. The last contract was approved by Council in 2002, and has subsequently been extended, via contract amendments, through June 2007. On a related subject, the City has had a contract with the Chamber since 1994, for operation of the Visitor Center at the Bayfront/E Street Trolley Station and the provision of general visitor and transit information at both that location and the Chamber's main officel. Since opening in 1986, the Visitor Center has had four commercial operators, none of whom were able to operate the center at a profit. In late 1994, after considering four proposals to run the Visitor Information Center, the Council approved a contract with the Chamber, which has been extended annually, via contract amendments. Since its opening in 1986, the City has paid the costs of utilities, exterior maintenance, building repairs, major improvements and landscaping. The Center serves a daily average of more than 200 people who request visitor and transit information. The major focus of the Visitor Center is to provide mass transit information and ticket sales to trolley and bus riders, promote visitor-serving attractions and businesses in the City, and to provide accurate information to visitors concerning Chula Vista and the San Diego region including Tijuana and Baja California, Mexico. With the limited retail opportunities at the Visitor Center plus the main focus on providing service to the tourist and transit riders, an annual subsidy for the operation is required. Part of the Strategic Plan developed by the Chamber for CVConvis and the Visitor Center is to identify other revenue opportunities, as well as other goals and objectives for the Center. 1 The Bayfront/E Street Trolley Station is jointly owned and operated by the City of Chula Vista and the Metropolitan Transit System (MTS). The site includes the Visitor Center, which has been administered by the City under a separate agreement. 11-2 8/7/07, Item~ Page 3 of 4 Terms The terms of this contract are similar to the terms in the previous contract with the Chamber for CVConvis and Visitor and Transit Information Services. The City and the Chamber will have a one-year consecutive option to extend the agreement, for a maximum of one year. The Chamber will provide the following services: . Promote and market the City and the City's vlSltor destinations, meeting facilities, tourism, and related businesses (see Operating Rules, Attachment C) . Respond to inquiries about transit; provide transit information about trolley and bus schedules, routes, prices and stops; and sell transit passes . Provide information about Chula Vista (e.g. major hotels/motels, restaurants, shopping), San Diego County visitor attractions, Southern California, and Northern Baja, Mexico . Provide general information about the City, including City maps and brochures . Operate the Visitor Center between 8:00 a.m. - 4:30 p.m. on weekdays and 8:30 a.m. - 4:00 p.m. on weekends and holidays Fundinl!: The Council-approved City budget includes $193,014 in funding dedicated to the Chamber for Chula Vista Convention and Visitor Bureau activities, Visitor Center operations and to provide Chamber Information Services at the main office. Included in the annual figure is the $13,376 that the City pays the Chamber for general information services. Visitor Center Maintenance - City In addition to the CVConvis and Visitor Center budget allocation per the proposed contract, the City also funds the maintenance of the Visitor Center. These maintenance costs are included in the Chula Vista Transit's FY 2007-2008 budget for the BayfrontIE Street Trolley Station and are the City's responsibilities. Staff and the Chamber are committed to maintaining and operating a safe and responsive Visitor Center. The image of the City is very important and the Chamber is committed through this contract to promote a positive, friendly and responsive image as desired by the City. DECISION MAKER CONFLICT Not ADDlicable Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. 11-3 8/7/07, Item~ Page 4 of 4 FISCAL IMPACT Funds in the amount of $193,014 have been identified from the City's General Fund in the Community Development Department and Chula Vista Transit/MTS Budget for fiscal year 2008, as approved and adopted within the City budget on June 19, 2007, for costs associated with the scope of work. $148,014 is allocated in Community Development Department's budget, and $45,000 in the Bayfront/E Street Trolley Station (CV TransitJMTS) budget to fund the Contract with the Chamber. ATTACHMENTS Attachment A - Council Policy #230-01 Attachment B - CONVIS Strategic Plan Attachment C - Operating Rules Prepared by: Gustavo Perez, Senior Community Development Specialist. Community Development Department J:\COMMDEY\STAFF.REP\2006\CONVIS 2008 Staff Report.doc 11-4 ~A . COUNClL POLICY CITY OF CHULA VISTA SJECT: SuPPORT POR A aruLA VISTA VJSIrORS AND CONVENI'lON BU1I!AU, stlBJECl'TO ANNUAL APPROVAL OF A BUDGET AND REI.ATED CO:NTRACl' POUCY NUMBER 230-01 EFFECJ'IVE DATE 07-01-95 PAGE 20F2 )I'nw BY: Resolution No. 17843 I DATED: ()3..21.9S - If the lUIAluI T.o. T. nmmue uceeds S2.5 lIIi1lioa, the proposed VJSitozs md Coave:adoll Promotion !uclpt would be $200,000. The City woulcl tha rmcw this CollZll:1I Po1iI:7. iac1udinr clisc:ussins it with the OwDIHr 01 Commerce ad th. ClaW. VIsta Morel....-..:.t.iOll, to detamlne wlmher the polic:y Iho1Ild be nYiled to pnmae IIDY .dditioa.ll1l1lideliDes far pnlpOSe4 VISitors lIDd Coa'1l!llti01l PramotiClll t'madlas beycnd the S2oo,OOOliaaximum propoled lImlua1 mil OlUIt prO'Ilded III this poley. ne ChuIa VIsta Ch....b... of Colllmuce IIDd me ChuI.l V"JSla Motel Associadoa. ua fozmiur a Chula Vista V"lSicoa and Conventioa Bureau, ad represmtWves of thOse ereacia aad the CIty lVi1I be hnolved in fon:a.w.':." a proposed Vuiton IIDd CoaventiClD Promotion !udpt to be COAsidond 1Iy the CIty CaunciI each &l:a1 yur. Ic is mticlpeted that 10m. projecu induded ill. the VuitOD IIld CoIl_tiClll. homotiaA Budget will eoDtlDue to be admillistenc! by the Cty or b. (ot: .enices for wlIich the Cily lIaJ pnvi.,.,.)y contracted with the Chamber of C02IUIlerce. Ic is also IIlclc:ipued that · signiBc:ant ponion (probably thlllllajority) of the V"uiCQn lIII4 Conftllliou ProIllOtiOtl audl.t will b. lor speciJl.ed senic:es far which me CIty will aec:uta a &mIual ODe-year CClDlnet with me. -:!Iamba' o( Commerl:ll, aD behalf of the Vbicon aad Convention B1I1'1Iau. The Chcaber will proWle ,uarteriy repora to the Cicr to be specified iD me lIDDual COIltraa:, inducli.z1, appropriate acccUJIdq dara. 'Ib.ia poliey shall be .ec for rnicw -1'1'I".ate1y fivw yeaa after ia adoptioD datI. nac nYiew ahould iIldlIa. bue Rot be limited to, the appropriatm_ of ecatinWu, .to uub1lsll V1sIcoa aad CoIlventioll. ProlDolioa budgets ill relaclomb.ip to lb. _OWlC of T.O.T. revenue col1ec:ced, the rWdelli1es for such nJatioaships, and the appropriateness of the Clalllllber of Commm:a ""'1ri",dlll 10 ac:c as the eoDtractia! UDI of the Vbima _d Convellll.OJI llurelW C:Olllpared to other ~ticm.a] anus_eats lOch as the _blishmelJl: of a stand.ll1011e VJSimn aad CoIlveulioa BurealL .. -.. 11-5 ATTACHMENT B Chula Vista Convention & VISitors Bureau Stratl!2ic Plan Mission: The Chula Vista Convention &: Visitors Bureau focuses on developing ChuIa VISta as a destination eity by generating and promoting tourism, while expanding and atttac:ting visitors to our eommunity. Vision: II is our vision to create a Visitor Center offic:e tllat ~eIIls and International Visilor Information Center using the latest in technology and an interactive environment, to _leeme and assist guests from all over the world. Goal: ParlDer with The City of Chula Vista to aeate a visitor cealer in a central, visible. high traffic, street level, ac:cessible location in the City of Chula Vista. Provide a site for publie outreach for the c:ommUDity of Chula Vista and our visitors. Create an atmosphere whieh promotes our city as a great place 10 live, work and play... Catch the Spiritl We want visitors to: . Select Chula Vista &: San Diego County as a destination; . Feel weleomecl, informed and eduated so they take full advantage ofChula Vista all%aclions, aceommodations, dining and shopping, as well as current scheduled enlerlainment, activities and events; . Treat the Visitor Information Center (VIC) as an attraction- the window to the rest of their stay- a destination in itself . Maintain or lengthen the duration of their Slay; . Say "WOWI" &: consequently promote the City ofChula Vista through positive word-ot:.moulh; . Return to Chula Vista and ilS atlraetions often.. Objectives: 1. The ulti:mate objeetive is to ensure that the Chula Vista V"lSitor Information Center (VIe) and Chula Vista Convention &: Visitors Bureau (CONVIS) supports and promDle Chula Vista's sales and marketing efforts by responding to visitor inquiries in a professional, friendly, ac:curale and timely manner. The VIC and CONVIS will render valuable information services to visitors from around the world and projec:t a positive image while rejlresenting the City of Chula Vista, San Diego County &: Port of San Diego. 2. To manm;.. attendance al aU of tile atlractions, aeeommodations and ac:tivities in Chula Vista and San Diego County by providing pertinent information via the lalest in multi-media technology as well as through La JoUa &: San Diego Official Visitor Guides, brochures, maps and promotional materials for guests visiting the Chula Vista VIC and Chula Vista CONVIs. 3. That the VIC becomes the primary resoUl'l:e for Chula Vista in order to assist and support local atlractions, concierges, etc. 4. To maximize revenue genen1ioo through retai1 sales, alIractioo and tour tic:ket sales, restaurant reservations and sponsorship opportunities; and optional services such as ac:c:ess to the Internet and ..mail, phone eard vending machine, travel books, visitor sundries and souvenirs. S. To further support a team ofvohmteers by cOlllin1jing to develop a foanal volunteer program that includes reeruitment, training, scheduling and motivating community volunteers to assist with information dissemination in a friendly and unbiBsed rilanner and in a variety of foreign . languages. 6. Collaborate with the City of Chula Vista, the Chula Vista Chamber of Commerce and CONVIS for multimedia eoverage to further market the City of Chula Visl;a. i.e. press, radio, television, m.p:rines and promotiona1 material. 11-6 Chula Vista CONVIS Strategic Plan In order to su.cessfuliy aehleve the Vbioll, Goals aad Objectives listed above, there are three categories which must be addressed. 1. Interul space Deeds 1. EnernallocatiOD Deeds 3. Resources 1. INTERNAL SPACE NEEDS: walk.in center 1200 sq. n. Public Space: . Reception area . Signage in severa1langnages and for people with various disabilities . Counter space . Professionally designed infonnation and inte!pretive displays for the City of Chula Vista, San Diego Co1lllty, Port. . Pleasing graphics that depict the City of Chula Vista and San Diego COllllly . Interactive displays, videos, kiosks with information and scene. re: Chula Vista and San Diego C01lllty " . State of the art information retrieval systems (example, CD's with headphones and/or video screens to viewl1isten to information of Clnlla Vista; (virtual reality) . Internet access for visitors to sendlreceive e-mail . Retail sales area and gift shop . Postage stamp vending machine . Attraction &; tour ticket sales area . Brochure distribution racks . Public pbones, including one for the hearing impaired (TDD) . Regional locator map and public tnmsportation map displayed for viewing . Wall space and backlit display space to lease for advertising purposes . Thematic decor, ambiance to coordinate with Chula Vista and San Diego Convis advertising and promotional themes- carry out the Chula Vista "brand." . Welcoming decor- banners, flags, displays, mpas, light and bright, a visual experience, "We're glad yon are here" . Accessible fealllrcs for lnIvelers with disabilities. . Public restrooms for eacb gender, fiunilies and people with disabilities as well as daily custodial services (this will depend on location and public restrooms in the area) Bebind the Scenes . OfIice spi1ce for sup'ervisor and staff with bookcases, file cabinets, computers, pbones and desk space for voluateers " . Space for office macbines: fax, copier, postage machine, printers, typewriters, telephone and voice mail equipment . Wiring for computers, internet, phone lines . Storage for visitor guides, brochures, office supplies, promotional items, retai1 items, cleaning equipment, light bulbs, historical records . Brealc room- with refrigerator, microwave, lOastIlr oven, coffee, sink, lockers for staff; water cooler . RestLuuwS for staff . Coat nck . Cash register and built in safe . Phone system that h.k. fa..... with Chula Vista CONVIS . Appropriate heating and air conditioning ," 11-7 Chula Vista CONVIS Strategic PIao 2. EXTERNAL LOCATION NEEDS: . Central Clula Vista location . Access to public ttaIlspottation . Ground floor, street level, drive by access . Attractive arcllitectunI design . Parking areal mmgcmcnts for staff &: volllIIlem . Several I , minute free paridng places for visitors wanting to "run in &: pick up a guide" and lor metered and validated paridng areas . F~ and fnmt eatrance tacing major street- c:mrent1y E Street . Neon signs and directional signs (in several languages or inlmlalional symbol signs) from freeways and major arteries, to attract visitors to Visitor Center (and subsequently, ChuIa Vista businesses) . Well lit - creale sense of "safety" for area . 24-hour secmity . 24 hour infonnation available via direct dial phones on exterior of visitor center and or electronic visitor information kiosk . Area for leased coffee cart operation Revenue Soun:es/ Customer Service! Retail Sales . Sell tour and allIaction tickets . Sell Chula Vista t-shirts, sweatshirts, caps, bags,logo items . Sellll'allSit licketl passes . Museum tickets! Balboa Park passpOIt . Souvenirs . Sundries, film, suntan lotion . Postcards, videos . Maps . Souvenir penny machine with Chula Vista and San Dieag scenes . Phone card vending machine . Sell sponsorship space . Multilingual staff; guides, infonnation resources . Accommodation and/or restlulrant reservation service . Advertising panel with dedicated phone lines for self service reservatiollS and info . Mexican insurance lease space . Serviccsl business center o Public phones- including for the deaf o Place to sit and llie lbrough information they have gathered o Clange machine o Stamps o Access to internet and to puck up their e-mail o Cwrency exchaage lease space 3. CONVISI VIC RESOURCES: . Bilingual stalfwith a combined total of IS years ofvisitor center experience . Establish a volunteer program with dedicated,kn,?wledgeable, trained volunteers . Establish a motel association to bring together motcIlhotcl owners and managm and the City of Clula Vista Police Department and City Code cnforcemcnt to work on railing the bar (work on increasing AAA ratings) . Proven methods of information dissemination . Recognized "hospitaIity training" 1" "lI'.....a fur high school, college . Regional, natiODal and inlmIalional marketing opportanitics 11-8 Chula Vista CONVlS Strategic Plan FUNDING AND MANAGEMENT RECOMMENDATIONS: I. The City of Chula Vista and Downtown Business Association PBID and sponsors share operating and staffing costs. 2. Cost recovery revenue is obtained through the chamlcls listed previously. 3. Chula Vista CONVIS and the City of Chula Vista work together to obtain a major cotpOrate spOllSor (La. Airlines, American Express Tn......!, etc) 4. The Center be managecl and operated by the Chula Vista Chamber of COlllIl1erce Tho Chula Vista Visitor Iuformation Center (VIC) plays a crucial role within and for our City. In many instances they are the tint and final link in CbuIa Vista's Marketing Plm- service to the Visitor. By utilizing Sau Diego's aggressive advertising campaign, we will atlrac:t the visitor and then nspoDs1'blo for providing friendly and hospitable service. The happy visitor is the repeat visitor. Our Chula Vista Visitor Center is a site for public outreach for Cbula Vista businesses, providing the fundamental visibility and accessibility to travelers and residents alike to the City of Cbula Vista. " 11-9 Cbula Vista CONVIS Strategic Plan ATTACHMENT C CHULA VISTA CONVENTION AND VISITORS BUREAU A OMSION OF THE CHULA VISTA CHAMBER OF COMMERCE OPERATlNG RULES: 1. ORGANIZA TlON: This division shall be known as the Chula Vista Convention and Visitors Bureau ("CONVlS') and Visitor Information Center ("vIC') and shall be an integral part of the Chula Vista Chamber of COnimerce (the "Chamber"), according to our Bylaws subject to the contractual relationship between the City of Chula Vista and the Chula Vista Chamber of Commerce which is incorporated under the laws of the State of Califomia. 2. THE MISSION STATEMENT: The Chula VISta Convention and Visitors Bureau focuses on developing Chula VISta as a destination city by generating and promoting tourism, while expanding and attracting visitors to our community. 3. THE CREED: The Chula Vista Convention and Visitors Bureau is organized for the purpose of marketing Chula Vista as a viable tourist destination for the benefit of the community. 4. SUBCOMMITTEE: The Board of Directors of the Chamber shall appoint a subcommittee to guide this division and advise the CONYIS AND VlC General Manager, who shall be the chair. It shall be governed according to the general rules of the Chamber pertaining to appointment and operation of committees. The subcommittee members need not be Chamber members. At least seventy-five percents of the members shalll)ave employment or Interest in the entertainment, tourism or hotel industries. The Public Information Coordinator of the City of Chula Vista shall be an ex-offlcio member of the subcommittee. The recommendations of the Subcommittee shall be advisory only, subject to the approval of the Board of Directors of the Chamber. 5. GENERAL MANAGER: The division's day to day operations shall be conducted by the CONYIS AND VlC General Manager who Shall be an employee of the Chamber. The General Manager shall be advised by the Subcommittee and shall report directly to the Chamber Board of Directors. 6. FUNDS: All money paid to CONVIS and Y1C shall be placed in a general operating fund under the Chamber's name but separate ffom the Chamber's other accounts. Money subscnbed or conbibuted for a special purpose is to be placed In a separate account for such purpose. The Chula Vista Chamber of Commerce CEO and either the Treasurer of the Chamber or another Member of the Chamber Executive Committee must sign dIsbursements of the funds of CONVIS if the Treasurer is not available. Executive Committee and Chula Vista Chamber of Commerce CEO must approve expenditures over $2000 in advance. . .- 7. BUDGET: The CONVIS General Manager and the Chamber Finance Committee shall review and generate/negotiate the budget of estimated expenses for the fiscal year as received from the City of Chula Vista, and submit it to the Chamber Board of Directors as part of the budget of the Chamber. 8. ANNUAL AUDIT. The acoounts of CONVIS shall be examined annually In coordination with the Chamber's annual audit and shaD under the supervision of the Vice President Finance and Audit Committee, according to Section 5.A. INTERNAL AUDIT COMMITTEE. 1 h10 (Resolution) WHEREAS, The Chula VISta Chamber of Commerce has contracted with the City of Ghula Vista to operate the Chula VISta Convention and Visitors Bureau and Visitor Information Center. The City of Chula Vista makes an annual contribution of funds to the Chula Vista Chamber of Commerce to fund the operation of the Chula VISta Convention and Visitors Bureau and Visitor Information Center. . The City of Chula Vista has requested that the Chula Vista Chamber of Commerce reflect in Its organizational minutes the administrative procedures for operation of the Chula Vista Convention and Visitors Bureau and Visitor Information Center. The Board of Directors has considered this mater and has determined that the best approach is to make the Chula Vista Convention and Visitors Bureau a division of the Chula Vista Chamber of Commerce with its own General Manager reporting directly to the Chula Vista Chamber of Commerce CEO and tci the Board of Directors and a subcommittee providing guidance and supervision, subject to oversight of the Board of Directors. RESOLVED, that the Chula VISta Convention and Visitors Bureau shall be a division of the Chula Vista Chamber of Commerce with its own General Manager reporting directly to the Chula Vista Chamber of Commerce CEO and the Board of Directors and a subcommittee providing guidance and supervision, subject to oversight of the Board of Directors. RESOLVED FURTHER, that the operating rules appearing in that certain document hereto attached entitled Chula VISta Convention and Visitors Bureau Operating Rules' are adopted as and for operating rules of the Chula Vista Convention and Visitors Bureau Corporation and Visitor Information Center. .' 11-11 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE IT 2008 CONTRACT BETWEEN THE CITY OF CHULA VISTA AND THE CHULA VISTA CHAMBER OF COMMERCE FOR THE PROVISION OF CHULA VISTA CONVENTION AND VISTORS BUREAU PROMOTIONAL SERVICES AND VISITOR AND TRANSIT INFORMATION SERVICES, AND AUTIIORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the City of Chula Vista ("City") desires to have visitor and transit information available upon request, without cost, to persons entering the City from the Visitor Information Center located on the southeast comer of"E" Street and the Interstate 5; and WHEREAS, the Chula Vista Chamber of Co=erce ("Chamber") occupies a unique public service position in the City and has provided general informational and promotional services to the public-at-Iarge for many years; and WHEREAS, the Chamber is experienced and staffed in a manner such that it can provide convention and visitor promotion services ("Promotion Services") and visitor and transit information services ("Information Services"); and WHEREAS, the Chamber has been providing the City with Promotion Services and Information Services pursuant to separate agreements through fiscal year 2007; and WHEREAS, the Chamber has a CONVIS Strategic Plan ("Strategic Plan") which establishes goals and objectives for providing convention and visitor promotion services and visitor and transit information services; and WHEREAS, the City desires to continue providing Information Services and Promotion Services pursuant to a single agreement for the provision of these two types of services, based on the Strategic Plan, and on performance measures to gauge success in providing these services; and WHEREAS, the City's approved budget for fiscal year 2008 includes $193,014.00 in funding dedicated to the Chamber for these services. WHEREAS, the City and the Chamber shall have a one-year consecutive option to extend the agreement, for a maximum of one year; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista approves the FY 2008 contract between the City of Chula Vista and the Chula Vista Chamber of Co=erce for the provision of Chula Vista Convention and Visitors Burel:\u Promotional Services and Visitor and Transit Information Services, and authorizing the Mayor to execute the Agreement. PRESENTED BY Ann Hix Acting Co=unity Development Director 'W- core ' City 'Attorney 11-12 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CI COUNCIL r; <<- / Ann Moore City Attorney Dated: t/~,lor- Agreement between City of Chula Vista And CHULA VISTA CHAMBER OF COMMERCE For Chula Vista Convention and Visitors Bureau Promotion Services and Visitor and Transit Information Services 11-13 Parties and Recital Page(s) Agreement between City of Chula Vista and CHULA VISTA CHAMBER OF COMMERCE ("Chamber") for Chula Vista Convention and Visitors Bureau Promotion Services and Visitor and Transit Information Services at the Chula Visitor Information Center and Chamber of Commerce Main Office. This agreement ("Agreement"), dated (add date) for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Chamber"), and is made with reference to the following facts: Recitals Whereas, the City desires to have visitor and transit information available upon request, without cost, to persons entering the City and desiring same, from the Visitor Information Center located on the southeast corner of "E" Street and the Interstate 5 (hereinafter "Center") at an address commonly known as 750 "E" Street, and from the Chamber of Commerce office, 233 Fourth Avenue, Chula Vista (hereinafter "Main Office"); and Whereas, the Chamber occupies a unique public service position in the City and has provided general informational and promotional services to the public at large for many years; and Whereas, the Chamber hereby warrants and represents that it is experienced and staffed in a manner such that it can provide the convention and visitor promotion services (hereinafter "Promotion Services") and visitor and transit information services (hereinafter "Information Services") as herein required in accordance with the terms and conditions of this Agreement; and Whereas, the City and Chamber have been party to separate agreements for: Convention and Visitors Bureau Promotion Services Page 1 11-14 from FY 1997-98 as extended through amendments to FY 2007, a copy of which is on file with the City Clerk as Document No. CO 97-079, (hereinafter "Existing CONVIS Contract") and for Visitor and Transit Information Services from FY 1994-95 as extended through amendments to FY2007, a copy of which is on file with the City Clerk as Document No. CO 94-121, (hereinafter "Existing Information Contract"); and Whereas, the consecutive option year; and City and the Chamber shall have a one-year to extend the agreement, for a maximum of one Whereas, the Chamber has a CONVIS Strategic Plan (hereinafter "Strategic Plan") which establishes goals and objectives for providing convention and visitor promotion services and visitor and transit information services; and Whereas, the City and Chamber desire to continue a single agreement for the provision of these two types of services, based on said Strategic Plan, and on performance measures to gauge success in providing said services. Whereas, Chamber warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Chamber to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page starts Obligatory Provisions.) Page 2 11-15 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Chamber do hereby mutually agree as follows: 1. Chamber Duties A. General Duties Chamber shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Chamber shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Chamber, from time to time reduce the Defined Services to be performed by the Chamber under this Agreement. Upon doing so, City and Chamber agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Chamber to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Chamber, Chamber shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is Page 3 11-16 otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Chamber, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Chamber represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Chamber, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage") . Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Chamber shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may Page 4 11-17 not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Chamber's Commercial General Liability Insurance Policy, Chamber shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Chamber shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Chamber shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Chamber is Page 5 11-18 in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Chamber to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Chamber shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Chamber agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Chamber for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall permit access to its office facilities, files and records by the Chamber during the term of this Agreement, for the limited purpose of facilitating the Chamber in the performance of its obligations under this Agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Chamber's performance of this Agreement. B. Compensation Upon receipt of a properly prepared billing from Chamber submitted to the City periodically as indicated in Exhibit A, Page 6 11-19 Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Chamber for all services rendered by Chamber according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Chamber for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Chamber shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess Page 7 11-20 of the time specified for the completion of the respective work assignment or Deliverable, the Chamber shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the Chamber's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Chamber A. Chamber is Designated as an FPPC Filer. If Chamber is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Chamber is deemed to be a "Chamber" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Chamber is designated as an FPPC Filer, Chamber shall not make, or participate in making or in any way attempt to use Chamber's position to influence a governmental decision in which Chamber knows or has reason to know Chamber has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber warrants and represents that Chamber has diligently conducted a search and inventory of Chamber's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Chamber does not, to the best of Chamber's knowledge, have an Page 8 11-21 economic interest which would conflict with Chamber's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber further warrants and represents that Chamber will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Chamber is designated as an FPPC Filer, Chamber further warrants and represents that Chamber will immediately advise the City Attorney of City if Chamber learns of an economic interest of Chamber's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Chamber warrants and represents that neither Chamber, nor Chamber's immediate family members, nor Chamber's employees or agents ("Chamber Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Chamber further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Chamber or Chamber Associates in connection with Chamber's performance of this Agreement. Chamber promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Chamber agrees that Chamber Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Chamber may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in Page 9 11-22 conflict with Chamber's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Chamber shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Chamber, and Chamber's employees, subcontractors or other persons, agencies or firms for whom Chamber is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Chamber , its employees, agents or officers, or any third party. With respect to losses arising from Chamber's professional errors or omissions, Chamber shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Chamber's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Chamber's obligations under this Section shall not be limited by any prior or subsequent declaration by the Chamber. Chamber's obligations under this Section shall survive the termination of this Agreement. 8. Termination of Agreement for Cause Page 10 11-23 If, through any cause, Chamber shall fail to fulfill in a timely and proper manner Chamber's obligations under this Agreement, or if Chamber shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Chamber of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Chamber shall, at the option of the City, become the property of the City, and Chamber shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Chamber's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Chambers' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Chamber shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Chamber of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by the City as provided in this paragraph, Chamber shall be entitled to receive just and equitable compensation, which shall in no event exceed the amount payable under this Agreement, for any satisfactory work completed on such documents and other materials to the effective date of such termination. Chamber hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. Page 11 11-24 11. Assignability The services of Chamber are personal to the City, and Chamber shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Chamber in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Chamber shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Chamber's work products. Chamber and any of the Chamber's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Chamber shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. Page 12 11-25 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Chamber shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Chamber prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Chamber shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Chamber is not authorized to Represent City Unless specifically authorized in writing by City, Chamber shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Chamber is not a Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Chamber and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Chamber represents that neither Page 13 11-26 Chamber, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] Page 14 11-27 Signature Page to Agreement between City of Chula Vista and Chula Vista Chamber of Commerce to provide Chula Vista Convention and Visitors Bureau Promotional Services and Visitor and Transit Information Services at the Chula Visitor Visitor Information Center and Chamber of Commerce Main Office IN WITNESS WHEREOF, City and Chamber have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 200 City of Chula Vista by: Cheryl Cox, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: Chula Vista Chamber of Commerce ~~o-coQ-- Lisa Cohen, CEO Exhibit List to Agreement (X ) Exhibit A. Page 15 11-28 Exhibit A to Agreement between City of Chula Vista and Chamber of Commerce 1. Effective Date of Agreement: Agreement Last Executed" Fill-in date, or ftDate 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: [insert business form] , a ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Chamber: Chula Vista Chamber of Commerce 5. Business Form of Chamber: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Chamber: 233 Fourth Avenue Chula Vista, California 91910 Voice Phone (619) 420-6602 Page 16 11-29 Fax Phone (619) 420-1269 7. General Duties: CHULA VISTA CONVENTION AND VISITORS BUREAU The general purpose of this duty shall be to promote the City of Chula Vista and Chula Vista visitor destinations, meeting facili ties, tourism and related businesses ("Promotion Services") . The Chamber will include in its operations a division known as the Chula Vista Convention and Visitors Bureau ("Bureau") to provide Promotion Services. This division will conduct advertising and marketing campaigns for the Bureau and have an advisory committee, appointed by the Chamber Board. The City shall be a member of said committee. Advisory participation on this committee shall be open to all interested parties, regardless of membership in the Chamber. Said open participation shall not preclude fund raising activities or fees for member and/or patron listings. VISITOR AND TRANSIT INFORMATION SERVICES AT THE CENTER The Chamber shall also provide Information Services, as more particularly described in this Agreement at the Center and Main Office for the benefit of the City of Chula Vista, the South Bay Region and visitors to the County. The Chamber has a duty to operate the Center and provide public services as specified in this Agreement. Al though portions of this Agreement have certain aspects of a lease, the parties agree that this is primarily a services agreement and it is not a lease. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Duties Applyinq to Both Informational and Promotional Services Pursuant to City Council Policy #230-01 as approved 3/21/95, the Chamber agrees to provide the following services as part of its Informational and Promotional services. (1) In general. The Chamber shall respond to all walk-in, phone and mail inquiries received making reasonable and appropriate requests for information by the Chamber from individuals, Page 17 11 -30 groups, businesses, news media, etc., and persons referred by the City. Responses shall be accurate, complete, cooperative and promote goodwill on behalf of the City. Responses shall be made in a timely manner. Walk-in and phone inquiries shall be responded to as they are received unless additional research is required. Mail inquiries shall be responded to within three (3) working days after the receipt of such inquiries, unless extensive research is required. (2) Staffing The Chamber shall employ qualified competent staff who are neatly dressed and courteous at all times. The Chamber shall be encouraged, but not required, to schedule a minimum of two employees to provide Center services - although, an adequate number of personnel must be scheduled so that Permitted Commercial Activities do not significantly interfere with the primary responsibility of providing Information Services. The Chamber shall also provide an adequate number of personnel who are qualified and competent at the Main Office to provide Information Services during Main Office business hours. (3) Training The Chamber shall provide adequate training to ensure that personnel are able to respond to inquiries about transit and areas of interest from members of the public and to promote visitor-serving attractions and facilities in Chula Vista. The Chamber shall also provide adequate safety training, as determined by the City, to ensure that personnel safely maintain the Center. a. Extensive Knowledge. Center, Main Office, and CONVIS staff must have extensive knowledge of and be capable of disbursing complete and accurate information about the following: i. Chula Vista - including but not limited to, street locations, major hotels / motels, restaurants, visitor attractions, government offices, Chula Vista Nature Center, and major shopping areas. ii. Transit information including but not Page 18 11-31 limited to, Trolley schedules, prices, and stops, and Chula Vista Transit bus schedules and routes. iii. San Diego County visitor attractions including, but not limited to Sea World, San Diego Zoo and Wild Animal Park, Horton Plaza, airport, Gaslamp Quarter, Mission Bay, beaches and other attractions, along with applicable admission prices, hours of operation and directions. b. Adequate knowledge. Center, Main Office, and CONVIS staff must have an adequate general knowledge of and be capable of dispensing general information about the following: i. Northern Baja, Mexico including but not limited to major highways, cities, insurance requirements, major hotels/motels, restaurants, shopping areas, major visitor attractions, and written information from governmental agencies regarding duty and visa regulations. ii. Southern California including but not limited to major highways, cities and visitor attractions. c. Visitor Services. Chamber shall provide information (e.g. locations, schedules, directions, applicable fees), on topics including, but not limited to the following: Community clubs and organizations Local events parades, displays, seasonal promotions Chula Vista Nature Center - u. S. Olympic Training Center Coors Amphitheatre Knott's Soak City Street Information directions, locations, closures, detours, etc. Lodging facilities Transit - Airports and Trains - Medical, Professional and real estate offices Page 19 11-32 Business Referrals - Meeting Rooms Government services/officials and referrals to appropriate departments Churches and other places of worship Schools, including colleges and universities - Museums, historical and cultural sites - Mexico - information on tourist cards, parking, etc. Tourist attractions Recreational sites, parks, picnic areas, and beach information Newspaper and local publications RV parking/mobile home parks Chula Vista demographics (e. g. population, housing) d. Chula Vista Promotion. In an effort to promote Chula Vista, the Chamber shall always provide information on those businesses , facilities, and attractions in Chula Vista which pertain to the person's inquiry. The Chamber shall also suggest businesses , facilities or attractions which the Chamber believes may be of interest to a visitor. (4) City Image Enhancement The City, as a public entity, is concerned about the image portrayed and services provided by the Chamber and its personnel. The City shall have the right to inform in writing, the Chamber of actions by the Chamber or the Chamber's personnel, which do not conform with the image the City desires to have portrayed. This includes providing complete and accurate Promotion Services and Information Services and presenting a neat, clean, responsive, and friendly image of the City. The Chamber shall take all necessary steps to ensure that its actions project the image desired by the City as directed from time to time. (5) Standard Information The Chamber shall develop and utilize standardized packages of information for responding to general inquiries about Chula Vista as a visitor destination and for new or potential residents of the City. Such packages shall be maintained with current information and Page 20 11 -33 shall meet with the approval of the City. The packages may be used, but shall not be deemed solely adequate, for inquiries, making reasonable, specific requests for information not routinely included in the packages. (6) Referrals - Other Agencies For inquiries beyond the expertise of the Chamber, referrals may be made to more appropriate entities. A tally of the number of inquiries referred to other enti ties, including date of inquiry, type of inquiry (walk-in, phone or mail), entity referred to, and subject of inquiry shall be recorded and reported in the quarterly summary to the City. The Chamber will provide the name and address of the person or business making the inquiry, if appropriate. (7) Referrals - Businesses Responses to inquiries shall show no preferential treatment to Chamber members or any other group or individual persons or businesses. Wherever possible, however, referrals to businesses shall be made to businesses in the City of Chula Vista. Referrals shall be rotated among businesses qualified to provide the service or services requested. The Chamber shall coordinate with the Development Department on responses business relocation inquiries. City's Community to significant (8) Customer Feedback During a specified period of this Agreement (as determined by the City and Chamber) the Chamber shall develop and make available to the public unstamped response cards addressed to the City's Community Development Department to obtain feedback on the quality of information provided. Each response to mail inquiries shall include such a card. All cards returned to the Chamber shall be forwarded to the City's Community Development Department. (9) Information The Chamber shall exercise care in ensuring the Center has new, pertinent information as it arises, such as Page 21 11-34 special events, lists of visitor-oriented businesses and attractions. As part of this effort, the Chamber shall include the Center on the Chamber's mailing list. Furthermore, the Chamber shall keep updated information at the Center and the Main Office and maintain a website containing said information ("Website"). (10) Free Services The Chamber shall not charge the public a fee for providing services unless specifically approved in writing by the City. City maps will be sold to the City at cost, and sold at the Center and Main Office for no more than cost plus 15% to the general public. Notwithstanding this prohibition, fees charged by credit card companies for may be passed along to the purchaser. (11) Sample Survey The Chamber shall conduct a sample survey over a two-week period that covers all of the hours and days that the Visitor Center is open to determine who is using the Visitor Center and for what reason. The answers/results from the survey shall be provided to the City. Promotion Services and the Chula Vista Convention and Visitors Bureau (1) Marketing and Promotion Chamber shall hire adequate marketing staff ("CONVIS staff") to coordinate an advertising and marketing campaign for the Chula Vista Convention and Visitors Bureau ("Bureau"). In addition, CONVIS staff will oversee Center operations and the sale and display of advertising therein. Incidental Chamber support and liaison by CONVIS staff would be anticipated by this Agreement, with such support and liaison being in conjunction with, but not detracting from, the performance of primary CONVIS staff responsibilities. For illustrative purposes, duties of a proposed General Manager of CONVIS are attached as Exhibit B. Chamber shall ensure that CONVIS staff do not have any conflict of interest that would negatively impact its provision of Promotion and Information Services. Page 22 11-35 (2) San Diego CONVIS membership Chamber shall maintain membership in the San Diego Convention and Visitors Bureau for the City of Chula Vista and/or Chula Vista Convention and Visitors Bureau. (3) Distribution of Visitor Brochure and Nature Center Brochure. Chamber shall distribute and place Brochures specified by the City at all major brochure racks in San Diego County, including but not limited to those at airports, cruise ship terminals, bus and train stations, hotels, motels, visitor centers and convention centers. (4) Design and Printing of Brochures At City's request, Chamber shall design and print the brochures, flyers, and/or other publications that focus on promoting Chula Vista and its attractions - such as general visitor brochures or folders, calendar of events, dining and lodging guide, attraction coupon and golf course flyer. The Chamber shall exercise its best efforts to have the costs for the design and/or printing of these publications (i. e. dining and lodging guide) fully or partially reimbursed by the promoted attractions. Any deficit in production costs shall be paid for by Chamber. (5) Advertising Notwithstanding the printing and designing of brochures, Chamber shall spend at least $25,000 of the compensation awarded under this Agreement for advertising. Advertising design, content and placement shall focus on promoting Chula Vista and Chula Vista attractions within the region and maintaining primarily a visitor and/or convention orientation. Target media may include but are not limited to: regional magazines, recreational vehicle or auto club publications, motel room event and attraction listings, San Diego CONVIS publications, etc. Advertisements shall be placed in at least three tourist- oriented publications and the response/success of those advertisements communicated to the City. For any ad placement or series of placements in the same publication for which the total price shall exceed $6,000, said placement shall be subject to review and approval by the Page 23 11-36 City's Contract Administrator. The Chamber shall also be encouraged to engage in cooperative advertising campaigns, with participation by the City and by local visitor-oriented businesses. The maximum City and Chamber participation via this Agreement in any such cooperative advertising shall be 60% of the cost of advertising production and placement. The other 40% of advertising expenses shall be borne by the local participants. Such cooperative advertising shall be open to all visitor-oriented Chula Vista businesses, regardless of membership in the Chamber. For those items that would entail graphic or display design (e.g. Advertising, Visitor Brochure, Chula Vista display at the u.S. Olympic Training Center, etc.), the Chamber shall work with City on initial design concepts and obtain the prior written design approval of the Ci ty' s Community Development Department and Office of Communications. Said approval shall be in addition to any other required design review or other discretionary City approvals. (6) Specific Promotional Activities As part of this Agreement, the Chamber shall also perform these specific promotional activities: a. Hold at least three meetings per year for the operators of hotels and motels in Chula Vista. Adequate written notice of the time, place and subject matter of these meetings shall be provided (at least 30 days prior to such event). At these meetings, the Chamber and lodging providers will work on develop marketing strategies and communicate ways to improve their businesses and stature within the community. b. At least twice per year, organize FAM (familiarization) tours to the City's major attractions (e. g., Olympic Training Center, Coors Amphitheatre, Knott's Soak City, the Chula Vista Nature Center, three golf courses, etc.) for San Diego CONVIS members, meeting/convention planners, and concierges from around the County. c. Promote and market the City and the following Page 24 11-37 visitor-serving attractions at industry trade shows: i. Restaurants ii.Shopping iii. Arts and cultural activities iv. Golf v. Local history vi. Libraries vii. Parks and recreation facilities viii. Entertainment venues Information Services - Visitor Information and Transit Center (750 E Street) The Chamber shall operate a first-class Visitor Information Center according to the following standards for the term of this Agreement as same may be from time to time extended. (1) Hours of Operation The Chamber shall operate the Center at least eight and one-half hours per day on weekdays and seven and one-half hours per day on weekends and holidays. Operating hours shall be 8:00 am to 4:30 pm on weekdays and 8:30 am to 4:00 pm on weekends, subject to amendment by separate written Agreement of the Chamber and City Contract Administrator. The Center may be closed on Easter Sunday, Thanksgiving Day, Christmas Day and New Year's Day. The Center may also close early on Christmas Eve and New Years' Eve, at the Chamber's discretion. (2) Transit Passes The Chamber will make available for sale to the public, transit passes issued by the Metropolitan Transit System (MTS) and Chula Vista Transit. The Chamber will also make change for transit fares as requested by the public to the extent feasible. (3) Precedence of Services Commercial activities, promotion and/or referrals shall not interfere with the Chamber's ability to provide free, reliable, complete and true information in response to requests from public users of the Center. Page 25 11-38 (4) Signage The Chamber may be required to post a "Free Visitor Information" sign at each of the three entrances to the Center or at the counter. Size and design of the sign will meet with the approval of the City. The cost of supplying and installing any such signs(s) shall be borne by the City. (5) The Chamber is prohibited from erecting or creating any signs on the Center that are visible from the outside or in any area within the jurisdiction of the City without prior written approval of the City. Interior signage or advertising is subject to the City's approval. (6) Display Advertising The Chamber shall be permitted to sell display advertising space, which shall be limited to the Dura Trans Board. Display advertising on surfaces other than windows is limited to those areas indicated on the Design Layout as herein defined and as it may be modified with the City's Approval. (7) Wall Space Except as provided herein or otherwise approved by the Ci ty, interior and exterior wall space will be posted only with public service information consistent with material identified in this Agreement. Display material supplied or approved by the City designed to promote visitor attractions in Chula Vista may also be posted on walls. (8) Information Counter Display of retail merchandise on the information counter top shall not significantly interfere with its ability to be seen and used for providing Information Services. Display or additional retail merchandise behind the counter shall present a neat, uncluttered appearance. (9) Pay Phone The Chamber shall be required to maintain at least one public pay phone at the Center. Page 26 11-39 (10) Restroom Access Due to health and safety concerns there are no public rest rooms at the Center, although the City reserves the right to allow MTS and Chula Vista Transit bus drivers to have access to the Center's restrooms, with said access only being through the exterior restroom doors. Exterior doors to the restrooms shall be locked when not being utilized by Center or transit employees. Interior doors opening into the restrooms shall be locked when the Center is closed - i.e., transit employees will only be provided keys to the exterior doors. (11) Compliance with the Law Operation of the Center shall comport with all local, state, and federal laws and regulations, including but not limited to, those provisions of the Chula Vista Municipal Code ("CVMC") relating to the sale of adult materials (as defined in CVMC ~ 19.04.007) and the County of San Diego Health Department's regulations relating to food sales and consumption. (12) Center Design Layout The Chamber agrees to maintain the current layout of the Center ("Design Layout") which includes a color scheme, theme, lighting, and physical location of furniture, fixtures and equipment such as tables, chairs, racks, shelves, vending machines, display advertisements, etc. The City will work with the Chamber and a space designer (to be provided by the City) to make any changes to the Design Layout necessary for improving Americans with Disabilities Act (ADA) access, improving City image, and improving Information Services and retail revenue. Approval will be subject to all City rules and regulations, including but not limited to Design Review. City may terminate any use in the interior of the Center or layout of the interior facilities, which it finds objectionable; and the Chamber is prohibited from use or decoration of the exterior areas without the advance written approval of the City. The Chamber shall not make any structural improvements or changes to the Center except in accordance with the Design Layout, which has been reviewed and approved by Page 27 11-40 the City. The Chamber's operation of the Center will conform to the approved Design Layout. Any changes to the approved Design Layout must have prior approval of the City. The Chamber shall maintain displays in the Center, including, but not limited to, the following: a. One bulletin board of community activities of a size and design acceptable to the City. The Chamber shall insure that current information concerning upcoming special events wi thin Chula Vista are displayed at all times. b. Display map of the City of Chula Vista; c. Display stand of scenes of Chula Vista; d. Display space on the information counter for brochures designated by the City about Chula Vista attractions. The Chamber will further provide space for transit brochures designated by the City in a location mutually agreeable to the parties; and e. At least one fully stocked brochure rack in the lobby area of the Center containing brochures, which provide information on the major visitor attractions in Chula Vista and San Diego County. (13) Maintenance, Repairs, Utilities and Improvements of the Center: a. Regular Maintenance The Chamber shall operate the Center in a safe and reasonable manner. The Chamber shall be responsible for keeping the interior and exterior of the Center free of trash and in good order and condition. This includes, but is not limited to, the vending machine area and private restrooms. Cleanliness, repair and maintenance shall be done to the City's satisfaction. Restrooms will be cleaned at least once per day. The Chamber shall provide restroom supplies such as Page 28 11-41 toilet paper and paper towels. The Chamber shall be responsible for all costs and supplies necessary for the proper cleaning of the interior of the Center, including graffiti removal that does not require painting, and minor maintenance such as replacing interior light bulbs. The Chamber shall be responsible for the professional cleaning of the interior floors and vending machine area floor at least once every three months using professional equipment and/or personnel. The Chamber shall be responsible for maintenance of the exterior advertising panels, steam cleaning of the exterior patios and walkways of the Center when needed, trash pick-up and removal, and exterior ashtray cleaning. b. Facility Repairs The City shall be responsible for repairing and maintaining the exterior of the Center. This responsibility extends to, but is not limited to, the interior, the roof, exterior walls, landscaping, and exterior graffiti removal. The City shall be responsible for repairing and maintaining all permanent interior improvements to the Center. Said improvements shall include, but not limited to, plumbing, utility systems, windows, fixtures, painting, and wall coverings. c. Emergency Repairs The City authorizes the Chamber to make emergency repairs of up to $500 for items the City is responsible for repairing and maintaining. Emergency repairs include but are not limited to broken windows and roof leaks. The City will reimburse the Chamber for reasonable costs up to $500 for such necessary emergency repairs within sixty (60) days of submitting an invoice to the City's Contract Administrator. d. Negligence Page 29 11-42 Notwithstanding the foregoing subsections, the Chamber will be responsible for all repairs required as a result of negligence of the Chamber or the Chamber's employees. Costs of said repairs shall not be deemed "Applicable Operating Expenses." e. Utilities The City shall be responsible for all water, sewer, and electricity utility costs associated with the use of the Center, including the restrooms. The Chamber shall be responsible for all trash disposal, alarm service and telephone costs. Telephone billing records and long distance charges shall be subject to review and audit by the City. f. Improvements and Personal Property; Title upon Termination Unless otherwise provided in writing by both parties, all improvements to the Center shall be the responsibility of the City, and upon termination of this Agreement, all improvements to the Center (regardless of who performed improvement), all inventory and all personal property remaining on the Center shall be deemed to be the property of City. (14) Right to Inspect Operations The City Contract Administrator shall have the right to enter the Center, inspect same and review the operations of the Chamber under this Amended Agreement at any time during the term of this Agreement. (15) Evaluation of Visitor Center Location Chamber and City shall meet to evaluate the location of the Visitor Center and make a recommendation to the City Manager by January 1, 2007. Informat1on Serv1ces - Chamber's Ma1n Off1ce (223 Fourth Avenue) and Off-S1te In recognition of the fact that not all services can be solely performed at the Center, due primarily to the walk-in oriented Page 30 11 -43 business attracted to the Chamber's Main Office, the Chamber shall continue to provide limited General Information Services for the City at its Main Office. The Chamber shall also continue to represent the City at selected trade shows, work with the City's economic development staff to obtain materials and displays, as appropriate, and represent the City at selected special events to promote the City to visitors and enhance its regional image. (1) Main Office Services - Hours of Operation Chamber staff shall be available to provide Main Office Services Monday through Friday from 9:00 am to 5:00 pm, except for New Year's Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day{ the day after Thanksgiving Day and Christmas Day'. Holidays cited above falling on a Saturday will be observed on Friday. When a holiday occurs on Sunday, it will be observed on the following Monday. (2) Consolidation of Services Where possible and practical, the Chamber shall endeavor to consolidate Main Office service with that provided at the Center. Efforts to consolidate shall include, but not be limited to, White Pages listing of the Center phone number and site as the Chamber's "General Information/Tourism" contact and review of phone and mail handling procedures. Performance Meetings and Minor Amendments to Aqreement The Chamber and City shall meet on at least a quarterly basis to review items including, but not limited to: quarterly reports, scope of services, hours of operation, permitted commercial activities, Design Layout, and scope and consolidation of Main Office Services. The Chamber and City Contract Administrator may, in a separate addendum to this Agreement, amend the scope of services or operating conditions relating to: form and content of quarterly reports, hours of operation, permitted commercial activities and Design Layout. Any other changes shall be Page 31 11-44 subject to a formal written amendment approved by the City Council. B. Date for Commencement of Chamber Services: (x) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: June 30, 2008 D. Date for completion of all Chamber services: June 30, 2008 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Employer's Liability Insurance coverage: $1,000,000. (x) Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage) . Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage) . 10. Materials Required to be Supplied by City to Chamber: A. Duty to Make Center Available for the Use and Occupancy of the Chamber City agrees to make the Center available to the Chamber in order to provide the Information Services and Promotion Services herein required, and to conduct such other collateral uses herein permitted, which availability shall be to the exclusion of all other commercial uses of the Center. The Chamber has no independent right to occupy the Center except to provide its duties outlined in this Agreement. B. Duty to Allow the Chamber to Conduct Certain Commercial Activities (1) Permitted Commercial Activities On the terms and conditions including accordance with the herein specified, approved Design Page 32 11-45 Layout, the Chamber shall have the right, and City shall permit the Chamber, to conduct the following commercial activities or sales at the Center: - Transit tickets and passes Phone Cards - ATM Services - Pay Phone Services - "Chula Vista": T-shirts, Hats; Bumper Stickers; Key Chains; Buttons; Pens; Pencils; and Postcards Film, Flashbulbs and Batteries - Maps/ Guide Books - Mexican Auto Insurance - Newspapers and Magazines Travelers Checks/American Express services - Soft Drinks/ Coffee - Candy/ Gum/ Ice Cream/Snack Foods Sunglasses - Suntan Lotion/Chap Stick/First Aid items - such as pain relief medicines - Postage Stamps - Kleenex/Pocket Combs - Lottery Tickets - Tour and Excursion Tickets - Video/ vending machines - Display advertising space as permitted herein The sale of products or services not listed above is subject to the City's approval. Such approval shall not be unreasonably withheld, but shall be consistent with the approved Design Layout. 11. Compensation: A. (x) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Chamber as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $193,014.00, payable as follows: Promotion Services & Center Information Services: $179,638.00; payable in quarterly increments of $44,909.50. Main Office Information Services: $13,376.00; payable in Page 33 11-46 quarterly increments of $3,344.00. Single Fixed Fee Amount may be higher or lower depending upon the following: If Gross Sales exceed Applicable Operating Expenses during any fiscal year, twenty-five percent (25%) of said net profits shall be remitted to the City. For purposes of computing net losses, any monies received from the San Diego County Community Enhancement Program or the San Diego Unified Port District for the Visitor Center or Chula Vista Convention and Visitors Bureau would be counted as Visitor Center revenues. For purposes of computing net profits, monies received from the San Diego County Community Enhancement Program or the San Diego Unified Port District for the Visitor Center Chula Vista Convention and Visitors Bureau would not be counted as Visitor Center revenues. 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The Page 34 11 -47 practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. () Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. () Hourly Rate Arrangement Page 35 11-48 For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation") . (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee of Consultant Name Hourly Rate Hourly rates may increase by 6% for services rendered after [month], 19 ,if delay in providing services is caused by City. Page 36 11-49 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. Cost or Rate Reports, not to exceed $ Copies, not to exceed $ Travel, not to exceed $ Printing, not to exceed $ Postage, not to exceed $ Delivery, not to exceed $ Long Distance Telephone Charges, not to exceed $ Other Actual Identifiable Direct Costs: not to exceed $ , not to exceed $ 13. Contract Administrators: City: Gustavo Perez, Senior Community Development Specialist, City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 476-2300 Chamber: Lisa Cohen, CEO, Chula Vista Chamber of Commerce 233 Fourth Avenue Chu1a Vista, CA 91910 (619) 420-6602 14. Liquidated Damages Rate: ( ) $ per day. (x) Other: None 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. Page 37 11-50 FPPC Filer Category No.1. Investments and sources of income. Category No.2. Interests in real property. Category No. property and regulatory, department. Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. 3. Investments, interest in real sources of income subject to the permit or licensing authority of the Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: As approved in advance by the City and corresponding to the terms of this Agreement. Sub-contractors may provide: Mexican Insurance Indoor ATM Machine Page 38 11-51 Pay Phone Soft drink and snack vending machines Any revenues derived from these contracts shall be include the totals for Gross Sales. If physical changes to the Center, Design Layout or grounds are needed to accommodate these types of sub-contractors, the Chamber must receive written approval in advance from the City. 18 Bill Processing: A) Consultant's Billing to be submitted for the following period of time: ( ) Monthly (x) Quarterly Paid in advance. For FY Second Quarter; beginning October 1, 2007: For FY Third Quarter; beginning January 1, 2008: For FY Fourth Quarter; beginning April 1, 2008: Other: $48,253.50 $48,253.50 $48,253.50 $48,253.50 B) Day of the Period for submission of Consultant's Billing (x) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C) City's Account Number: 19 Security for Performance ) Performance Bond, $ ( ) Letter of Credit, $ (x) Other Security: Type: In lieu of providing a security deposit or bond, the Chamber hereby agrees that compensation for it services provided under this Agreement may be withheld in payment for, and in proportion to, any repair or maintenance work required as a result of Chamber's failure to maintain the Center in accordance with Exhibit A, Paragraph 9, section C(13). Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their Page 39 11-52 option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: Retention Percentage: % Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services Other: Page 40 11-53 CITY COUNCIL AGENDA STATEMENT ~I'f::.. CITY OF ~CHULA VISTA AUGUST 7, 2007, Item~ SUBMITTED BY: REVIEWED BY: Resolution Accepting a grant from Scripps Health Community Benefit Fund to continue the development of Senior Wellness through Action and Education with a collaborative between Norman Park Center and Scripps Mercy Hospital Chula Vista Well Being Center, and appropriating funds therefore ~ DrnECTOROFRE~CN CITY MANAGER ASSISTANT CITY A ER ITEM TITLE: 4/5THS VOTE: YES ~ NO D BACKGROUND The intent of this grant, "Happy Healthy Seniors," is to expand the existing Recreation Department's efforts to address components of health and wellness for persons 50+, through health presentations, a men's support group, a health camp for seniors, supervised fitness center classes and a health fair. The Scripps Health Community Benefit Fund is providing $39,800 to expand Senior Wellness Through Action and Education, per the attached agreement (Attachment "A"). ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not involve a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council adopt the resolution accepting a grant from the Scripps Health Community Benefit Fund for the continued development of Senior Wellness through Action and Education, amending the FY08 Recreation Department budget by appropriating $11,363 in Personnel Services and $28,437 in Supplies and Services based on unanticipated revenue. 12-1 AUGUST 7, 2007, Item.-L Page 2 of2 BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The Senior Wellness through Action and Education program started in the spring of 2006 with a $25,000 grant award from the Scripps Health Community Benefit Fund. This collaboration between the Chula Vista Recreation Department's Senior Section and Scripps Mercy Hospital Chula Vista Well Being Center addressed components of health and wellness for persons 50+ through health presentations, supervised fitness center activity and extended hours, and a walking program at the Chula Vista Marina. Community health fairs were also held at Norman Park and Otay Recreation Center The proposed grant funding for "Healthy Happy Seniors" will expand the Senior Wellness through Action and Education program. The goal is to continue monthly health presentations, sponsor a monthly men's support group lunch facilitated by a Scripps doctor, and hold a community health fair at Norman Park Center to promote prevention and wellness with a variety of health screenings. The development of a health camp for seniors, "Camp Scripps", will provide an opportunity for seniors to get an inside look at hospital operations with a healthy lunch provided each day. The Norman Park Fitness Center will offer special classes that address posture, strength, balance, joint mobility and flexibility. New equipment will be purchased and staff will be trained to develop a Pilates program that focuses on the needs of the over fifty population in Chula Vista. Four senior volunteer promotoras will be recruited, trained and supervised as they provide outreach at senior residences, mobile home parks and to senior social groups about important health issues. The volunteers will receive stipends through gift cards. DECISION MAKER CONFLICT No Property within 500 feet Staffhas reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT The FY08 General Fund budget for the Recreation Department is proposed to be amended by $39,800 for the Happy Healthy Seniors: Senior Wellness through Action and Education Grant fully funded by the Scripps Health Community Benefit Fund, with no net impact to the General Fund. The $39,800 grant will be allocated as follows: $11,363 in Personnel Services and $28,437 in Supplies and Services. Full payment of the grant award will be made to Norman Park Center following Scripps' receipt of the signed contract. ATTACHMENTS Attachment "A"- Scripps Health Community Benefit Fund Grant Contract and Application. Prepared by: Kathy Wigginton. Recreation Supervisor IlL Recreation 12-2 t). Scripps Chris D. Van Gorder, FACHE President and Chief Executive Officer Scripps Health June 14, 2007 4275 Campus Point Court San Dlego, CA 92]2]-]5]3 Buck Martin Director of Recreation Norman Park Senior Center 276 Fourth Avenue Chula Vista, CA 91910 rei 858-678-7200 Fax 858-678-6767 RE: Scrip I)' Health Communitv Benefit Fund ~~W)!,f)D cffy'(jjltl100~A/I!lP.A Jl.!JIij'l220~200~i Dear Mr. Martin: R~GR!!',*iOOib~~~U~!illfT Congratulations! Your application for funding has been approved in the amount of $39,800 through the Scripps Health Community Benefit Fund. We believe that the Senior Wellness Through Action & Education: A Collaborative Between Norman Park Ct:I1ter & SClipps Mercy Hospital Chula Vista Well Being Center is in keeping with the S:ripps mission and values (quality, efficiency and respect). and complements our efforts to improve the overall health of the communities we serve. Enclosed you will find a copy of the Community Benefit Fund CO:1traet. Provided the contract meets with your approval, please sign and return it to Scripps. This is a grant for a period of one year beginning; on the date of this letter. Full payment of the grant award will be made to Norman Park Centn following Scripps' recetpt of the signed contract. A semi-annual report and a line item fin;mc;ai accounting ofthc grant disbursement to date will be due on Fri:iay, November 9, 2007. This semi-anuual report shall include progress made toward medill~ objectives outlined in the grant application. A final repNt is due within thirty (30) cays fe'lIo',. ing thc expiration date of the grant. L, addition to the progress made toward meeting the objectiver. ""t!ined in the grant application, the final report shall include quantitative and quahtative results oJ'the- progcam against its stated goals and objectives. A financial accounting ofthe grant disbursemem against the budget must be included as part of thi, tinal report. In order to improve the process nnd ensure that e~ch grantee's experience with Scripps is as positive as possible, we welcome your continued feedback. Anette BI~!t, Manager of Community Benefit Services, will be in ,'oninct with you to arrange activities to cmy,memorate the grant award and to address any questlons and/or concerns you may have. If you ;'Icrd additional assistance, you may reach Ms. Blatt via phone or e-mail (858-678-7095, bIatt.ane:~e@1:crippsheulth.org). We are very proud to be partneling with you. Scripps Jnoks forward to working with Norman Park Senior Center in support of this exeitillg eommur.ity health irr;pr;wement endeJvor. Chris Van Gordcr President an<l ChielTx'~cutive Officcr CVG:jb Enclosure cc: Kathy Wigginton . Scripps Health. Scripps Green Hospital' Scripps Memorial Hospital Encinitas . Scripps Memorial Hospital La Jolla' Scripps !\.1ercy Hospital Scripps Mercy HospItal Chula Vista. Scripps Home He~I~I:-Eoae . Scripps Clinic' Scripps Mercy Medical Group The Whittier Institute for Diabetes' Scripps Health Foundation AH-~ A Scripps Health Community Benefit Services 4275 Campus Point Court, CP 113 San Diego, CA 92121 Te1858-678-7095 Fax 858-678-6131 t). Scripps SCRIPPS HEALTH COMMUNITY BENEFIT FUND GRANT CONTRACT PROJECT TITLE: Senior Wellness through Action and Education; A Collaborative Between Norman Park Center And Scripps Mercy Hospital Chula Vista Well Being Center GRANTEE: Norman Park Center, Recreation Department, City of Chula Vista MAILING ADDRESS: 270 F Street, Chula Vista, CA 91910 PROGRAM DIRECTOR: Buck Martin PERIOD OF GRANT: June 1,2007 to May 31, 2008 GRANTED FUNDS: $39,800 I Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: I1pmtrpt 12-4 t)o Scripps Scripps Health does hereby grant Norman Park Center, Recreation Department, City of Cbula Vista funds in the amount of $39.800 subject to the following terms and conditions ("Grant Contract"): 1. Use of Grant Funds: A. Grant funds are to be applied as set forth in the 2007 Community Benefit Fund Budget Sheet ("Budget") in Grantee's grant application to Scripps Health dated 1/31/07 for funds from its 2007 Community Benefit Fund. A copy of the grant application is attached hereto as Exhibit "A" and made a part hereof for all purposes. B. Grant funds must be expended as set forth in the Budget and no changes or modifications to the Budget or to the persons named as personnel in the grant application, or to Norman Park Center, Recreation Department, City of Cbula Vista project as described in the grant application, may be made without the prior written approval of Scripps Health. 2. Termination of Grant Within twenty-four (24) hours ofthe occurrence of anyone or more of the following events, grantee shall provide written notice thereof to Scripps Health, cease any and all expenditures of grant funds and return to Scripps Health any and all remaining grant funds. Scripps reserves the right to terminate the grant funds: A. The grant funds cannot be expended in accordance with the Budget; B. The personnel and/or Norman Park Center, Recreation Department, City of Chula Vista project is changed and any or all of these changes are not approved by Scripps Health. C. Grantee loses or changes its Internal Revenue Service tax-exempt status. D. Grantee fails to comply with Section 3A. 2 Updated: 4113/06 ab Legal Review: 3/21/03 rs Ref: IIpmtrpt 12-5 t). Scripps 3. Reports/Submission Items: Grantee shall submit to Scripps Health, attention Manager of Community Benefit Services at 4275 Campus Point Court, CPl13, San Diego, CA 92121, the following: A. A semi-annual summary progress report and a line item financial accounting of the grant disbursement to date shall be completed on or before Friday, November 9, 2007 of the grant period. Reports shall include, but not be limited to, progress made toward meeting objectives outlined in the grant application. B. Within thirty (30) days following the expiration date of the grant a final progress report shall be submitted to Scripps Health. In addition to the progress made toward meeting the objectives outlined in the grant application, the Final Report should include quantitative and qualitative results of the program against its stated goals and objectives. A line item financial accounting of the grant disbursement against the budget must be included as part of this final report. C. The Grantee shall provide Scripps Health with any additional information or progress updates, relative to grant project, as reasonably requested. D. Scripps Health reserves the right to audit expenditures and supporting documentation. 4. Standards To maintain high quality assurance standards, Scripps Health reserves the right for Scripps Health staff and/or representatives to visit the Grantee's site and/or program as deemed necessary or appropriate, expected to be about twice yearly. Such visits will provide assurance of quality in addition to the written progress requirement of Scripps Health as outlined above. Grantee agrees to provide access to facility, personnel and records at the request of Scripps Health for such purposes. 3 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref, IJpmtrpt 12-6 t). Scripps 5. Grant Payments This is a grant for a period of one year beginning on June 1,2007. Grant funds shall be made to the Grantee upon receipt by Scripps Health ofthis Grant Contract executed by both parties. Payment will be made payable to City of Chula Vista Recreation Department (Memo: Norman Park Center, Recreation Department, City of Chula Vista and mailed to 270 F Street, Chula Vista, CA 91910. 6. Promotion and Publications A. Scripps Health may release information regarding this Grant, including picture(s) ofthe program/project, as well as the research summaries and Final Report, to the general public and news media. Grantee represents to Scripps Health that it has the authority to grant Scripps Health the right to publish the works and photographs of the program/project. B. Grantee may release information regarding this Grant to the public and news media, upon the following terms and conditions: 1) Grantee must acknowledge Scripps Health as a funding source on all publications related to this Grant in clear, unambiguous and readily- identifiable fashion, such as "supported by a grant from Scripps Health", 2) Grantee will present to Scripps Health for its approval, prior to printing, distribution, publication, display, or use, any and all promotional materials, publications, articles, pictures, press releases and scripts of all statements, oral or written, to be made by Grantee, its agents or spokespersons, which use or refer to Scripps Health, 3) Copies of all other news releases, articles, pictures and any and all other published material, which may develop in connection with the Grant must be furnished to Scripps Health by Grantee prior to publication. C. The Grantee shall make itself available to work with Scripps Health to identify and participate in a public event to commemorate the grant award. 4 Updated: 4/13/06 ab Legal Review: 3121/03 rs Ref: JIpmtrpt 12-7 t). Scripps 7. Non-Guarantee of Additional Support This grant is accepted by Grantee with the understanding that Scripps Health is not obligated to provide any additional financial support, or other support, to Grantee, its agents or spokespersons, in connection with the Grant, the Grant Contract, and the project or for any other reason. 8. Governmental Compliance Grantee will cooperate with Scripps Health in supplying additional information to Scripps Health, or in complying with any procedures which might be required by any governmental agency in order for Scripps Health to establish that it has observed all requirements ofthe law with respect to this Grant. 9. Authority All persons and individuals executing this Grant Contract certify and warrant that they have the capacity and have been duly authorized to execute this Grant Contract on behalf of the entities so indicated and that no additional authorization or approval is required. 10. Independence Grantee understands and warrants that it is an organization or entity distinct and independent form Scripps Health that this grant is solely a funding mechanism and does not create between the parties a partnership or joint venture and that Grantee shall indemnify and hold Scripps Health and its agents harmless from any liability arising from Grantee's use of this grant. 11. Entire Agreement This Grant Contract supercedes any prior understanding or oral agreements between the parties regarding the subject matter hereof and constitutes the entire understanding and agreement between the parties with respect to the subject matter hereof, and there are no 5 Updated: 4/13/06 ab Legal Review: 3/21103 rs Ref: Ilpmtrpt 12-8 t). Scripps agreements, understandings, representations or warranties among the parties other than those set forth herein. 12. Governing Law This Grant Contract shaH be governed by and construed in accordance with the laws of the State of California. This Grant is expressly conditional upon Grantee's acceptance of the terms and conditions set forth above. The signature on this Grant Contract by an authorized representative of Grantee represents Grantee's acceptance of this award and agreement to comply with all of the above terms and conditions. AGREED TO AND ACCEPTED BY: Scripps Health '0f{ftYVVL---' June K~ar : \..- Senior Vice President Strategic Planning and Business Development Date: (;//1/67- I I Grantee: /)~.J~+O( Date: 7//7/0; , Buck Martin Director of Recreation Attachments to Grant Contract: Exhibit A, Grant Application Exhibit B, Semi-Annual Progress Report Exhibit C, Year-End Final Report 6 Updated: 4/13/06 ab Legal Review: 3121/03 rs Ref: Ilpmtrpt 12-9 t)- Scripps Exhibit A, Grant Application 7 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: IIpmtrpt 12-10 t). Scripps SCRIPPS HEALTH COMMUNITY BENEFIT FUND 2007-2008 PROPOSAL TEMPLATES PROPOSAL ARE DUE TUESDAY, JANUARY 31,2007 Please Complete and Mail or Deliver Proposals to: Anette Blatt, Manager of Community Benefit Services Scripps Health 4275 Campus Point Court, CPl13 San Diego, CA 92121-1513 2007 COMMUNITY BENEFIT FUND COVER SHEET (1 OF 2) APPLICANT INFORMATION Name of organization: Norman Park Senior Center Address: 270 F Street Chula Vista, CA 91910 Contact Name (first & last) Title KAREN HARVELL Recreation Supervisor III Phone Number Fax Number E-mail Address 619-691-5086 619-476-8167 kharvell@ci.chula-vista.ca.us PROGRAM INFORMATION Program/Project Name (Please do not name "Scnpps Community Benefit Fund"): Ha Health Seniors: Senior Wellness throu h Action and Education County Region of Focus (San Diego County region where target population is located): o Central 0 North Central 0 North Inland 0 All Regions o East 0 North Coastal x South Is this a 0 NEW or ~ EXPANDED program OR an 0 ONGOING prOgram/project? Amount Requested: $39,883 Total Project Budget: $60,783 Provide a brief explanation of the proposed program/project. Note: In a few sentences, this section should provide the reader with a dear understanding of the overall intent of the project. (Not to exceed 100 words): The overall goal of "Healthy Happy Seniors" is to expand our existing efforts 50 as to increase health awareness and prevention for 6,400 seniors by respectfully addressing components of health and wellness well-being for persons 50+ through monthly senior health presentations, a monthly men's support group, a health camp for seniors to give them an inside look at hospital care and preventive services, supervised fitness activity activities to include balance and flexibility workshops that address fall prevention, joint mobility and flexibility and a health fair. All program activities will be collaboratively implemented with Scripps Mercy Hospital Chula Vista Well Being Center. x Yes No 2006 $25.000.00 Happy Healthy Seniors: Senior Wellness throu h Action and Education ABl 0/3 1/06 12-12 2007 COMMUNITY BENEFIT FUND COVER SHEET (2 OF 2) Organization Type Fundmg IS available for government agencles/dlstncts and non-profit corporations or organizations that can rovide the followin information and documentation. Private Non-profit Federal Tax 1.0. # x Government Agency/District #956000690 Applicant Organization Certification and Acceptance Name and title of offiCIal signing for applicant organization (President/CEO, Executive Director or Administrator): Karen Harvell, Recreation Supervisor III, City Of Chula Vista Recreation Department I certify that the statements herein are true and complete to the best of my knowledge and accept the obligation to comply with the Scripps Health terms and conditions if a grant is awarded as a result of this application. Sionature: C"'\ ,'( 'v,. [',-_ LUl/vv ::1- ( Date: /, ?;(, ( f If the proposal is funded, the clleek should be made out to: City of Chula Vista Recreation Department memo: Norman Park Center 2 ABJO/31/06 12-13 2007 COMMUNITY BENEFIT FUND NARRATIVE (1 OF 6) PROGRAM INFORMATION Organization Name:Norman Park Senior Center Program/Project Name: EDUCATION HAPPY HEALTHY SENIORS: WELLNESS THROUGH ACTION AND ABIO/31/06 12-14 Background INeeds and Program Intent Bnefly describe the speCIfic Issue your proposal will address. You should provide a bnef history of how this issue has evolved in the environment in which your project or activity will focus, and note any previous effort by your organization or others to address the issue. This section should give a clear sense of the scale of the problem and how it is related to improving health or health systems in communities. You should also give an overview of the intent of the program/project. Describe the work that you are proposing to do to address the specific issue that you have identified. (400 words): Healthy Happy Seniors program goal is to respectfully address components of health and wellness for persons 50 + through effective strategies that have proven effective over the last funding period. The goal of the project is to respectfully address components of health and wellness for persons 50 + through health presentations, a men's support group, a health camp for seniors, supervised fitness center classes and a health fair. This project will: Expand Scripps Mercy Hospital Chula Vista's relationship with the senior community Enhance and expand an existing successful hospital/senior community partnership Educate seniors through 12 (twelve) quality health and wellness programs. Encourage health behavior and show seniors how to participate in their health care. Enhance awareness of health services in the community through 1 health fair at Norman Park in Chula Vista. Screenings at health fairs will honor the dignity of all persons. Promote prevention and wellness by encouraging healthy behavior. Advertise programs to "improve access to health care" through newsletters and publicity flyers. Send press releases to 20+radio, television and news contacts for each program Provide seniors with quality opportunities for fitness classes that address posture, strength, balance, joint mobility and flexibility Provide seniors with fitness equipment to enhance their strength and flexibility through the purchase of equipment Sponsor monthly men's support group lunches facilitated by a Scripps Doctor Provide an opportunity for seniors to get an inside look at hospital operations by participating in "Camp Scripps" Develop a Pilates program that focuses on the needs of the over fifty population in South Ba 2 AB I 0/31/06 12-15 2007 COMMUNITY BENEFIT FUND NARRATIVE (2 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name: Education Happy Healthy Seniors: Senior Wellness through Action and Target population Bnefly describe the populatIon that will tie served by the program and Identify how the population wIll be reached (150 words): Seniors 50+ residing in the South Bay area will be served by this project. This includes diverse ethnic groups of seniors ages 50 to 9S. Over 27,000 seniors attend Norman Park Center in a three-month period. The center specifically hosts programs for American, Korean and two Spanish groups and also offers Chinese and Spanish language classes. Many of the participants at Norman Park have good relations with their primary care providers, however, some do not. Access is limited for some and health education needs to be increased. The seniors will be targeted to participate in program activities through: . Scripps newsletters and community programs . Quarterly brochures published by the recreation department and distributed City. . 1500 Bi monthly calendars distributed to seniors at the senior center and mailed to senior living facilities. . 20 press releases sent to television, radio and newspaper contacts for each event. . Personal announcements made at existing programs held at Norman Park . Notices on the City Of Chula Vista and life Options websites . Flyer distribution to South Bay collaborative, libraries and providers of senior services. . Personal reminder calls to seniors registering for programs made by volunteers. 3 AB I 0/3 1/06 12-16 2001 COMMUNITY BENEFITFUNrrNARRATrvK~(30F 6) PROGRAM INFORMATION OrganIZation Name: Norman Park Senior Center Program/Project Name Happy Healthy Seniors: Senior Wellness through Action and Education Anticipated Outcomes and Measurement Briefly descnbe what outcomes are expected as a result of the program/project and how they Will be measured. Applicants are asked to provide specific outcome numbers including the number of people who are expected to be served. Demonstrate that the program does not duplicate any direct care services already available in the community (200 words): Obiective 1: Increase Access, Education and Awareness of Health Care to 420 seniors Activities . Provide monthly education to seniors through 12 (twelve) quality health and wellness programs. . Advertise programs to "improve access to health care" through newsletters and publicity flyers. . Send press releases to 20+radio, television and news contacts for each program . Provide an opportunity for seniors to get an inside look at hospital access and operations by participating in "Camp Scripps" . Provide a health fair with health screenings targeting seniors Evaluation Written surveys by participants will quantify the pertinence, quality and learning points of each presentation. Obiective 2: Increase Physical Activity and Well-Being for 1,300 Seniors Activities . Provide seniors with quality opportunities for fitness classes that address posture, strength, balance, joint mobility and flexibility . Provide seniors with fitness equipment to enhance their strength and flexibility through the purchase of equipment . Develop a Pilates program that focuses on the needs of the over fifty population in South Bay . Seniors will participate in specialized Fall prevention, balance and flexibility programs that provide a social environment for the development of strength, flexibility and health habits. Evaluation . Use of the fitness center will be measured daily attendance and class attendance in the fitness center. . Participants will keep personal records of their workouts. . Seniors will be surveyed to assess health access and awareness. 4 AB 10/31/06 12-17 Obiective 3: Increase Psychosocial Support for Seniors Activities . Sponsor monthly men's support group lunches facilitated by a Scripps Doc to offer senior men in the community a venue to discuss personal health issues. . Camp Scripps will provide an opportunity for seniors to get an inside look at hospital care, an ambulance, specialized programs and services. Participants will get t shirts for attending and will be provided a healthy lunch each day of camp . promotoras (4) will be trained by Scripps Health and Well Being center staff to provide health information to 50 seniors per month. . Norman Park staff will recruit seniors, track attendance, set up training dates. . promotoras will speak at senior residences, mobile home parks and to senior social groups about important health issues. Overall Evaluation All proposed program activities would be evaluated through a variety of qualitative and quantitative measures. Baseline data will be collected through a participant questionnaire that will collect information regarding demographics and access to health care. These programs do not duplicate any direct care services already available in the community. . There are no senior fitness centers in West Chula Vista. The YMCA located in East Chula Vista has a family fitness program and encourages senior membership at a cost. Our project would afford seniors low cost access to fitness equipment supervised by professional trainers. . There is no other senior center like Norman Park in the South Bay area that offers a large variety of classes and has the diversity and high attendance as documented by Norman Park. . This is a unique partnership between Scripps Mercy Hospital Chula Vista's Well- Being Center and Norman Park. 5 AB 10/31 /06 12-18 2007 COMMUNITY BENEFIT FUND NARRATIVE (4 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH ACTION AND EDUCATION Sustainability Plan Programs must Incorporate a sustalnablhty plan, Identifying how the program/project will be supported when the Scripps Health funding ends. Include a project funding plan for the year and any progress or plans for sustainability of the project after the initiative ends in 2007 (100 words): OVERALLSUSTAINABIUTY Through the course of this expanded project, sustainability will be identified through grant opportunities and continued collaboration with Scripps Mercy Hospital Chula Vista Well Being Center and other agencies. This proposed expansion is a model for partnership between a community-based senior center and Scripps Mercy Hospital Chula Vista for our continued successful programs FITNESS PROGRAM Last year, the City Of Chula Vista funded the fitness center to be open 18 hours a week. The Scripps grant provided 10 additional hours for the facility to be open last year. The City has incorporated those hours into their 07-08 budget. The purchase of additional fitness equipment funded through this grant will encourage a broader membership base. Revenue from memberships fees will demonstrate justification to continue the program when grant funding ends. Classes offered through this grant will continue on a small fee basis to cover the cost of the instructor once the program is established. HEALTH TALKS and MEN'S SUPPORT GROUP The center currently offers health programs from a variety or organizations. Grant funding will provide funds to call and remind seniors who have pre-registered to attend, provide refreshments and extra incentives for seniors to attend. The senior center, through this grant, will enhance their working relationship with Scripps Mercy Hospital Chula Vista Well- Being Center and continue to offer health talks and the men's support group as a regular part of programming when funding ends. HEALTH FAIR Health Fairs require intensive planning. Once the health fairs have been designed it is possible that in the future and intern could organize a health fair. CAMP SCRIPPS This program requires heavy support from Scripps Well Being Center. Norman Park will coordinate publicity, recruit and register seniors and collaborate with Scripps Well Being Center to develop an informative, fun, educational camp for seniors. PROMOTORAS Seniors participating in these programs may see the value of what they are contributing to the community and choose to volunteer to continue when the grant has ended. 6 AB 1 0/3 1/06 12-19 2007 COMMUNITY BENEFIT FUND NARRATIVE (5 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:Happy Healthy Seniors: Senior Wellness through Action and Education Applicant Organization Briefly describe your organization including the mission, vision and values. To the degree possible articulate how your organization's values align with the Scripps Health values of quality, efficiency and respect (not to exceed 100 words): Norman Park Senior Center is an established one stop shop for residents in South Bay who are looking for programs and services for persons 50+. The center directly serves independent seniors with educational, recreation and physical activity programs and provides information and referral services to all community members regarding programs and services for seniors. Nonprofit support agencies including Meals on Wheels, Lutheran Social Services, Senior Legal Services and Aging and Independence Services outreach, have offices on the 2nd floor of the building. Seniors from all over the South Bay region participate in activities at Norman Park as it offers the most comprehensive senior programming in South Bay and is open 72 hours a week. The center also has a safety net program for at risk seniors. The Senior Center is funded through the Recreation Department of the City of Chula Vista. The Recreation Department mission, Vision and Values are as follows: . Mission: UWe enrich the community through recreation opportunities and services." . Vision uOur vision is a community that achieves learning, self-discovery, balance and essential life skills through recreation." . Values: Integrity, Respect, Professionalism, Accountability, Commitment, Teamwork and Fun The Recreation Department values of ResDect and Professionalism are also values of Scripps. Scripps "Quality of service" relates to professionalism and accountability values of the Recreation Department. By caring for patients in a responsible and efficient manner, Scripps demonstrates commitment and teamwork, which are also values of the Recreation Department. 7 AB I 0/31106 12-20 2007 COMMUNITY BENEFIT FUND NARRATIVE (6 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:HAPPY HEALTHY SENIORS: WELLNESS THROUGH AmON AND EDUCATION Affiliated Community Organizations If other community organizations are involved in the program/project please identify what they are and how they are involved (100 words): This proposed expansion is a collaborative effort between Scripps Mercy Hospital Chula Vista's Well-Being Center. Additional important partners include The City Of Chula Vista Recreation Department, local community college and adult schools. Senior Center supervisors will be involved in processing and supervision of the project. A City Of Chula Vista graphic artist will design publicity flyers. City Of Chula Vista fitness specialists will teach the fitness classes and the Recreation Department's Life Options program coordinator will recruit and schedule promotoras. Chula Vista Adult School and Southwestern College instructors will assist in the recruitment of seniors for programs both at Norman Park and throughout the community. Volunteer groups teaching and leading classes at the senior center will assist in the publicity of programs designed for this project. Some of these classes include World Affairs, Craft groups, art classes, exercise classes, language groups and computer classes. South County Action Network, a network of agencies serving seniors in South Bay will assist in the promotion of activities. 8 AB10/31/06 12-21 2007 COMMUNITY BENEFIT FUND BUDGET SHEET (1 OF 2) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:Happy Healthy Seniors: Senior Wellness through Action AND EDUCATION Jul 1 2007 OPERATING List Program Specific Position Titles & Salaries: 1. Recreation $7.950 $7950 specialists, leader 2. Recreation $3000 Supervisor $5000 Fringe Benefits & Payroil $413 $413 Taxes Consultants & Professional $ 1000 $ Fees graphic artist Travel $100 $ Consumable Supplies $13.260 $13.260 Printing & Copying $500 $ Telephone & Fax $200 $ Postage $100 $ Rent & Utilities $17.000 $ Other Operating Expenses (specify): 1. promotional t shirts $900 $900 2.Promotoro stipend $4000 $4000 3.Volunteer stipends for $360 $360 office work TOTAL OPERATING $50.783.00 $29.883.00 EXPENSES f AB 10/31/06 12-22 2007 COMMUNITY BENEFIT FUND BUDGET SHEET (2 OF 2) PROGRAM INFORMATION Organization Name: NORMAN PARK SENIOR CENTER Program/Project Name: AND EDUCATION HAPPY HEALTHY SENIORS: WELLNESS THROUGH ACTION REQUESTED ITEM PROPOSED PROJECT % OF TIME FROM SCRIPPS BUDGET HEALTH CAPITAL Equipment (specify): Fitness center $5000 $5000 Other Capital Expenses (specify): 1. Training $5000 $5000 2. $ $ 3. $ $ 4. $ TOTAL CAPITAL $10.000 $10.000 EXPENSES TOTAL PROJECT $60.783 $39.883 BUDGET Number of units or persons served 6352 Per unit cost': $6.28 . To calculate. divide the total project budget by the total number of units or persons served by the program/project. 2 ABIO/31/06 12-23 2007 COMMUNITY BENEFIT FUND BUDGET NARRATIVE (1 OF 1) PROGRAM INFORMATION Organization Name:Norman Park Senior Center Program/Project Name: HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH ACTION AND EDUCATION Budget Narrative A detailed budget narrative of proposal expenses must accompany the budget. For each line item In the budget, please provide a brief description of how the funds will be used and why they are programmatically necessary. You may use this space for any explanatory information that would help us understand your project budget, including in-kind donations, number of full- time equivalent staff on the project, explanation of specific budget items, overhead rates, etc. (100 words): Recreation Specialists will write press releases, make arrangements for refreshments, register seniors for the programs and make all room arrangements. These tasks are necessary in order to have well attended programs. Recreation supervisor will oversee entire project. The City Of Chula Vista graphic artist will create flyers and all publicity documents including all Scripps logos. Professionally crafted flyers attract the consumers attention. Mileage will be reimbursed for miles traveled in personal cars for all aspects of these programs. Consumable supplies include all refreshments, incentives, t-shirts and promotional materials that will be provided for the seniors. These consumables attract the seniors and keep them coming back. Often the senior, because they have enjoyed a program, will bring a friend to the next one. Printing, telephone and Fax, Postage and Rent are a portion of the overall operating expenses for this project. Training will certify the fitness staff to provide specialized, prOfessional, safe programs. When working with this special population, training of staff is required to ensure the participants safety and to teach modified exercises. Fitness equipment will be purchased to provide opportunities for seniors to work independently once they are trained on equipment that addresses issues of joint mobility, balance and flexibility. Promotoras and other senior volunteers will receive stipends to perform their duties in a professional manner. Fitness center equipment will provide tools for seniors to improve their balance, flexibility and overall strength. Training funds will be used to train staff to provide a safe, age appropriate pilates program. ABIO/31/06 12-24 2007 COMMUNITY BENEFIT FUND REVENUE SHEET (1 OF 1) PROGRAM INFORMATION Organization Name: NORMAN PARK SENIOR CENTER Program/Project Name: HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH ACITON AND EDUCATION Government Grants & Contracts (specify): 1. 2. 3. 4. Foundations (specify): 1. 2. 3. 4. Corporations (specify): 1. 2. 3. 4. United Way/Other Federated Campaigns Individual Contributions/Donations Special Events & Other Fundraisers Membership Dues fitness center memberships Earned Income In-kind Contributions Other (specify): 1. City of Chula Vista General Fund for Norman Park Senior Center 2. 3. 4. TOTAL REVENUE $ $ $ $ $ $ $ $ $ $7500 $ $ $13.400 $ $ $ $ $ $ $ $20.900 $39883 NOTE: THE TOTAL REVENUE AMOUNT CONFIRMED PLUS THE TOTAL REVENUE AMOUNT PROJECTED SHOULD EOUAL THE TOTAL PROJECT BUDGET. 2 AB 1 0/31/06 12-25 t)- Scripps Exhibit B, Semi-Annual Progress Report 8 Updated: 4/13/06 ab Legal Review; 3121/03 rs Ref:I1pmtrpt 12-26 SCRIPPS HEALTH 2007 COMMUNITY BENEFIT FUND Semi-Annual Month Progress Report 1 PROGRAM INFORMATION i Organization Name: Program/Project Name: Time Desired Frame Status I Outcome Strategy(s} Measurement s Baseline (Start and End Outcome Dates . . . ~ "" !. -.J . . . I. . . . . . . 1 of 1 t). Scripps Exhibit C, Year End Final Report 9 Updated: 4/13/06 ab Legal Review: 3121/03 rs 12-28 Ref: Jlpmtrpt 2007 Scripps Healtb Community Benefit Fund Final Report Form Today's Date: Name of Organization: Fiscal Agent (if different from your organization): Address: Phone: Fax: Contact person: Title: Project Title: Grant Amount: Period that this report covers: ~ _ to ~_ Email: Part 1: Project Budget Review What was your proposed project budget? $ Please provide information on the final project budget figures for this project for the grant period. 1. Total project revenue, by source, as indicated below: Total Project Revenue $ Scripps Health Grant $ Government Grants $ Other Foundation I $ Other Foundation 2 $ Other Foundation 3 $ Other Foundation 4 $ All Other Funding Sources $ 2. Project expenses paid out of the Scripps Health grant for this grant period. Staff Expenses $ Consultant Expenses $ Non-labor Expenses (e.g., materials, local travel) $ Indirect Expenses (overhead) Total of above expenses $ $ If the total expenses paid out of the Scripps Health grant are less than the award amount, please explain why. 1~-29 Part 2: Description of Results Please respond to each of the following questions using up to 3 (three) pages in total. Your responses should focus specifically on the funded project or program. 1. Referring to the goals and objectives described in your original grant request (or any subsequent revisions), please describe the following: a) If you did not receive full project funding from Scripps Health or any other sources, please explain how you adjusted your project. b) What action steps or activities did you use to meet your objectives and goals? c) In the quantitative measures section we will ask you to list up to 5 specific quantitative measures of your project. Please use this section to comment on these quantitative outcomes and to describe other (non-quantitative) outcomes. If the measures and targets are different than those listed in your proposal, please describe the change. 2. We are interested in learning about challenges that you may have handled as you implemented your project. a) Describe any setbacks that you encountered during the period of this grant. b) How did these difficulties affect/influence the project or your organization? c) How were they addressed? 3. Tell us about lessons you have learned from this grant: a) Were there any unexpected results ofthe project? b) What are the key things that you learned from this project? 4. If your project involved collaboration with other organizations or individuals outside your agency, please describe the effects of that work for the project. 5. What steps are you taking to sustain your project or organization beyond this grant period? 6. We hope that our grantmaking process is easy to understand and reasonable. Please give us your comments about any aspect of it, such as the proposal requirements, the proposal review process, and/or the reporting requirements. 12-30 Part 3: Quantitative Measures In addition to the narrative description on the previous page, we are interested in quantitative measures of the outcomes of your grant, if applicable to your project. You may have up to 5 measures, but none is required. Measure (e.g. People Directly Served, Target Attain Meetinf!.s Held) # # 1 2 3 4 5 Optional Attachments: _ Promotional/dissemination materials about the program (i.e. brochures, flyers, ad copy) _ News Clippings FINAL REPORTS MUST BE SUBMITTED NO LATER THAN THIRTY DAYS AFTER THE END OF THE GRANT PERIOD. Send to: Community Benefit Manager Scripps Health Community Benefit Services 4275 Campus Point Court, CPII3 San Diego, CA 92121 Or to: blatt.anette@,scriooshealth.org Questions: 858-678-7095 Revised: March 23, 2006 1~-31 C)" Scripps Exhibit B, Semi-Annual Progress Report 8 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: Ilpmtrpt 12-32 t). Scripps Exhibit C, Year End Final Report 9 Updated: 4/13/06 ab Legal Review: 3/21/03 rs 12-33 Ref: I1pmtrpt RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT FROM SCRIPPS HEALTH COMMUNITY BENEFIT FUND TO CONTINUE THE DEVELOPMENT OF SENIOR WELLNESS THROUGH ACTION AND EDUCATION WITH A COLLABORATIVE BETWEEN THE NORMAN PARK CENTER AND SCRIPPS MERCY HOSPITAL CHULA VISTA WELL BEING CENTER, AND APPROPRIATING FUNDS THEREFORE WHEREAS, the proposed grant funding for "Happy Healthy Seniors," is to expand the existing Recreation Department's efforts to address components of health and wellness for people 50+, through health presentations, a men's support group, a health camp for seniors, supervised fitness center classes and a health fair; and WHEREAS, the goal is to continue monthly health presentations, sponsor a monthly men's support group lunch facilitated by a Scripps doctor, and hold a community health fair at Norman Park Center to promote prevention and wellness with a variety of health screenings; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it does not involve a physical change to the environment, therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does hereby accepts a grant from Scripps Health Community Benefit Fund to continue the development of Senior Wellness through Action and Education with a collaborative between Norman Park Center and Scripps Mercy Hospital Chula Vista Well Being Center, and appropriating funds therefore. Presented by: Approved as to form by: -A.~"(~~, Ann Moore City Attorney Buck Martin Director of Recreation 12-34 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL . ~"'<UOV\ nJ~~hA Ann Moore City Attorney Dated: 1('/6+ Scripps Health Community Benefit Fund Grant Contract for Senior Wellness through Action and Education: A Collaborative Between Norman Park Center and Scripps Mercy Hospital Chula Vista Well Being Center 12-35 Scripps Health Community Benefit Services 4275 Campus Point Coun, CPI 13 San Diego, CA 92] 21 Tel 858-678-7095 Fax 858-678-613] t). Scripps SCRIPPS HEALTH COMMUNITY BENEFIT FUND GRANT CONTRACT PROJECT TITLE: Senior Wellness through Action and Education; A Collaborative Between Norman Park Center And Scripps Mercy Hospital Chula Vista Well Being Center GRANTEE: Norman Park Center, Recreation Department, City of Chula Vista MAILING ADDRESS: 270 F Street, Chula Vista, CA 91910 PROGRAM DIRECTOR: Buck Martin PERIOD OF GRANT: June 1,2007 to May 31, 2008 GRANTED FUNDS: $39,800 1 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref llpmtIllt 12-36 t). Scripps Scripps Health does hereby grant Norman Park Center, Recreation Department, City of Cbula Vista funds in the amount of $39.800 subject to the following terms and conditions ("Grant Contract"): 1. Use of Grant Funds: A. Grant funds are to be applied as set forth in the 2007 Community Benefit Fund Budget Sheet ("Budget") in Grantee's grant application to Scripps Health dated 1/3 1/07 for funds from its 2007 Community Benefit Fund. A copy of the grant application is attached hereto as Exhibit "A" and made a part hereof for all purposes. B. Grant funds must be expended as set forth in the Budget and no changes or modifications to the Budget or to the persons named as personnel in the grant application, or to Norman Park Center, Recreation Department, City of Cbula Vista project as described in the grant application, may be made without the prior written approval of Scripps Health. 2. Termination of Grant Within twenty-four (24) hours of the occurrence of anyone or more of the following events, grantee shall provide written notice thereof to Scripps Health, cease any and all expenditures of grant funds and return to Scripps Health any and all remaining grant funds. Scripps reserves the right to terminate the grant funds: A. The grant funds cannot be expended in accordance with the Budget; B. The personnel and/or Norman Park Center, Recreation Department, City of Cbu)a Vista project is changed and any or all of these changes are not approved by Scripps Health. C. Grantee loses or changes its Internal Revenue Service tax-exempt status. D. Grantee fails to comply with Section 3A. 2 Updated: 4/13/06 ab Legal Review: 3/2] /03 rs 12-37 Ref: IlpmtI1Jt t)o Scripps 3. Reports/Submission Items: Grantee shall submit to Scripps Health, attention Manager of Community Benefit Services at 4275 Campus Point Court, CPII3, San Diego, CA 92121, the following: A. A semi-annual summary progress report and a line item financial accounting of the grant disbursement to date shall be completed on or before Friday, November 9, 2007 of the grant period. Reports shall include, but not be limited to, progress made toward meeting objectives outlined in the grant application. B. Within thirty (30) days following the expiration date of the grant a final progress report shall be submitted to Scripps Health. In addition to the progress made toward meeting the objectives outlined in the grant application, the Final Report should include quantitative and qualitative results ofthe program against its stated goals and objectives. A line item financial accounting of the grant disbursement against the budget must be included as part of this final report. C. The Grantee shall provide Scripps Health with any additional information or progress updates, relative to grant project, as reasonably requested. D. Scripps Health reserves the right to audit expenditures and supporting documentation. 4. Standards To maintain high quality assurance standards, Scripps Health reserves the right for Scripps Health staff and/or representatives to visit the Grantee's site and/or program as deemed necessary or appropriate, expected to be about twice yearly. Such visits will provide assurance of quality in addition to the written progress requirement of Scripps Health as outlined above. Grantee agrees to provide access to facility, personnel and records at the request of Scripps Health for such purposes. 3 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: llpmtrpt 12-38 t)- Scripps 5. Grant Payments This is a grant for a period of one year beginning on June 1, 2007. Grant funds shall be made to the Grantee upon receipt by Scripps Health of this Grant Contract executed by both parties. Payment will be made payable to City of Chnla Vista Recreation Department (Memo: Norman Park Center, Recreation Department, City of Chula Vista and mailed to 270 F Street, Chula Vista, CA 91910. 6. Promotion and Publications A. Scripps Health may release information regarding this Grant, including picture(s) of the program/project, as well as the research summaries and Final Report, to the general public and news media. Grantee represents to Scripps Health that it has the authority to grant Scripps Health the right to publish the works and photographs of the program/project. B. Grantee may release information regarding this Grant to the public and news media, upon the following terms and conditions: 1) Grantee must acknowledge Scripps Health as a funding source on all publications related to this Grant in clear, unambiguous and readily- identifiable fashion, such as "supported by a grant from Scripps Health", 2) Grantee will present to Scripps Health for its approval, prior to printing, distribution, publication, display, or use, any and all promotional materials, publications, articles, pictures, press releases and scripts of all statements, oral or written, to be made by Grantee, its agents or spokespersons, which use or refer to Scripps Health, 3) Copies of all other news releases, articles, pictures and any and all other published material, which may develop in connection with the Grant must be furnished to Scripps Health by Grantee prior to publication. C. The Grantee shall make itself available to work with Scripps Health to identify and participate in a public event to commemorate the grant award. 4 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: Ilpmtrpt 12-39 t)o Scripps 7. Non-Guarantee of Additional Support This grant is accepted by Grantee with the understanding that Scripps Health is not obligated to provide any additional financial support, or other support, to Grantee, its agents or spokespersons, in connection with the Grant, the Grant Contract, and the project or for any other reason. 8. Governmental Compliance Grantee will cooperate with Scripps Health in supplying additional information to Scripps Health, or in complying with any procedures which might be required by any governmental agency in order for Scripps Health to establish that it has observed all requirements of the law with respect to this Grant. 9. Authority All persons and individuals executing this Grant Contract certify and warrant that they have the capacity and have been duly authorized to execute this Grant Contract on behalf of the entities so indicated and that no additional authorization or approval is required. 10. Independence Grantee understands and warrants that it is an organization or entity distinct and independent form Scripps Health that this grant is solely a funding mechanism and does not create between the parties a partnership or joint venture and that Grantee shall indemnify and hold Scripps Health and its agents harmless from any liability arising from Grantee's use of this grant. 11. Entire Agreement This Grant Contract supercedes any prior understanding or oral agreements between the parties regarding the subject matter hereof and constitutes the entire understanding and agreement between the parties with respect to the subject matter hereof, and there are no 5 Updated: 4/13/06 ab Legal Review: 3/21/03 fS Ref: llpmtrpt 12-40 t). Scripps agreements, understandings, representations or warranties among the parties other than those set forth herein. 12. Governing Law This Grant Contract shall be governed by and construed in accordance with the laws of the State ofCalifomia. This Grant is expressly conditional upon Grantee's acceptance of the terms and conditions set forth above. The signature on this Grant Contract by an authorized representative of Grantee represents Grantee's acceptance of this award and agreement to comply with all of the above terms and conditions. AGREED TO AND ACCEPTED BY: Scripps Health "~frYWVL-- June Komar' ,/ Senior Vice President Date: ~11i(/br I ! Strategic Planning and Business Development Grantee: ,I)~.J~+O( Date: 7//7/0'/ , Buck Martin Director of Recreation Attachments to Grant Contract: Exhibit A, Grant Application Exhibit B, Semi-Annual Progress Report ExhIbit C, Year-End Final Report 6 Updated: 4/13/06 ab Legal Review: 3/2 1103 TS Ref: J1pmtrpt 12-41 t). Scripps Exhibit A, Grant Application 7 Updated: 4/13/06 ab Legal Review: 3/21/03 rs Ref: J1pmtrpl 12-42 I o t). Scripps SCRIPPS HEALTH COMMUNITY BENEFIT FUND 2007..2008 PROPOSAL TEMPLATES PROPOSAL ARE DUE TUESDAY, JANUARY 31, 2007 Please Complete and Mail or Deliver Proposals to: Anette Blatt, Manager of Community Benefit Services Scripps Health 4275 Campus Point Court, CP113 San Diego, CA 92121-1513 . - .- 2007 COMMUNITY BENEFIT FUND COVER SHEET (1 OF 2) APPLICANT INFORMATION Name of organization: Norman Park Senior Center Address: 270 F Street Chula Vista, CA 91910 Contact Namemrst & last) Title KAREN HARVELL Recreation Supervisor III Phone Number Fax Number E-mail Address 619-691-5086 619-476-8167 kharvell@ci.chula-vista.ca.us PROGRAM INFORMATION Program/Project Name (Please do not name'Scripps Community Benefit Fund"): Ha Health Seniors: Senior Wellness throu h Action and Education County Region of Focus (San Diego County region where target population is located): o Central 0 North Central 0 North Inland 0 All Regions o East 0 North Coastal x South Is this a 0 NEW or ~ EXPANDED program OR an 0 ONGOING program/project? Amount Requested: $39,883 Total Project Budget: $60,783 Provide a brief explanation of the proposed program/project. Note: In a few sentences, this section should provIde the reader with a dear understanding of the overall intent of the project. (Not to exceed 100 words): The overall goal of "Healthy Happy Seniors" is to expand our existing efforts so as to increase health awareness and prevention for 6,400 seniors by respectfully addressing components of health and wellness well-being for persons 50+ through monthly senior health presentations, a monthly men's support group, a health camp for seniors to give them an inside look at hospital care and preventive services, supervised fitness activity activities to include balance and flexibility workshops that address fall prevention, joint mobility and flexibility and a health fair. All program activities will be collaboratively implemented with Scripps Mercy Hospital Chula Vista Well Being Center. x Yes No 2006 $25.000.00 Happy Healthy Seniors: Senior Wellness throu h Action and Education ABIO/31/06 12-44 2007 COMMUNITY BENEFIT FUND COVER SHEET (2 OF 2) Organization TVpe Funding IS available for government agencies/districts and non-profit corporations or organizations that can rovide the followin information and documentation. Private Non-profit Federal Tax 1.0. # x Government Agency/District #956000690 Applicant Organization Certification and Acceptance Name and title of offiCial signing for applicant organization (President/CEO, Executive Director or Administrator): Karen Harvell, Recreation Supervisor III, City Of Chula Vista Recreation Department ] certify that the statements herein are true and complete to the best of my knowledge and accept the obligation to comply with the Scripps Health terms and conditions if a grant is awarded as a result of this application. , ' . Siqnature: . "'\ J.... ,'- {.J (tA.v ~:l. \. Date: /, ./ ( i If the proposal is funded, the check should be made out to: City of Chula Vista Recreation Department memo: Norman Park Center 2 AB 10/31/06 12-45 2007 COMMUNITY BENEFIT FUND NARRATIVE (1 OF 6) PROGRAM INFORMATION Organization Name:Norman Park Semor Center Program/Project Name: EDUCATION HAPPY HEALTHY SENIORS: WELLNESS THROUGH AmON AND ABl 0/3 J/06 12-46 Background INeeds and Program Intent Briefly describe the specific issue your proposal will address. You should provide a brief history of how this issue has evolved in the environment in which your project or activity will focus, and note any previous effort by your organization or others to address the issue. This section should give a clear sense of the scale of the problem and how it is related to improving health or health systems in communities. You should also give an overview of the intent of the program/project. Describe the work that you are proposing to do to address the specific issue that you have identified. (400 words): Healthy Happy Seniors program goal is to respectfully address components of health and wellness for persons 50 + through effective strategies that have proven effective over the last funding period. The goal of the project is to respectfully address components of health and wellness for persons 50 + through health presentations, a men's support group, a health camp for seniors, supervised fitness center classes and a health fair. This project will: Expand Scripps Mercy Hospital Chula Vista's relationship with the senior community Enhance and expand an existing successful hospital/senior community partnership Educate seniors through 12 (twelve) quality health and wellness programs. Encourage health behavior and show seniors how to participate in their health care. Enhance awareness of health services in the community through 1 health fair at Norman Park in Chula Vista. Screenings at health fairs will honor the dignity of all persons. Promote prevention and wellness by encouraging healthy behavior. Advertise programs to ~improve access to health care" through newsletters and publicity flyers. Send press releases to 20+radio, television and news contacts for each program Provide seniors with quality opportunities for fitness classes that address posture, strength, balance, joint mobility and flexibility Provide seniors with fitness equipment to enhance their strength and flexibility through the purchase of equipment Sponsor monthly men's support group lunches facilitated by a Scripps Doctor Provide an opportunity for seniors to get an inside look at hospital operations by participating in 'Camp Scripps" Develop a Pilates program that focuses on the needs of the over fifty population in South Ba 2 ABIO/31/06 12-47 2007 COMMUNITY BENEFIT FUND NARRATIVE (2 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name: Education Happy Healthy Seniors: Senior Wellness through Action and Target Population Briefly describe the population that will be served by the program and identify how the population will be reached (150 words): Seniors 50+ residing in the South Bay area will be served by this project. This includes diverse ethnic groups of seniors ages 50 to 95. Over 27,000 seniors attend Norman Park Center in a three-month period. The center specifically hosts programs for American, Korean and two Spanish groups and also offers Chinese and Spanish language classes. Many of the participants at Norman Park have good relations with their primary care providers, however, some do not. Access is limited for some and health education needs to be increased. The seniors will be targeted to participate in program activities through: . Scripps newsletters and community programs . Quarterly brochures published by the recreation department and distributed City. . 1500 Bi monthly calendars distributed to seniors at the senior center and mailed to senior living facilities. . 20 press releases sent to television, radio and newspaper contacts for each event. . Personal announcements made at existing programs held at Norman Park . Notices on the City Of Chula Vista and life Options websites . Flyer distribution to South Bay collaborative, libraries and providers of senior services. . Personal reminder calls to seniors registering for programs made by volunteers. 3 ABIO/31/06 12-48 2001 cOMMUNITY BENEFITFUNrrNARRATIYE~(3'OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name Happy Healthy Seniors: Senior Wellness through Action and Education Anticipated Outcomes and Measurement Briefly describe what outcomes are expected as a result of the program/project and how they will be measured. Applicants are asked to provide specific outcome numbers including the number of people who are expected to be served. Demonstrate that the program does not duplicate any direct care services already available in the community (200 words): Obiective 1: Increase Access, Education and Awareness of Health Care to 420 seniors Activities . Provide monthly education to seniors through 12 (twelve) quality health and wellness programs. . Advertise programs to "improve access to health care" through newsletters and publicity flyers. . Send press releases to 20+radio, television and news contacts for each program . Provide an opportunity for seniors to get an inside look at hospital access and operations by participating in "Camp Scripps" . Provide a health fair with health screenings targeting seniors Evaluation Written surveys by participants will quantify the pertinence, quality and learning points of each presentation. Obiective 2: Increase Physical Activity and Well-Being for 1,300 Seniors Activities . Provide seniors with quality opportunities for fitness classes that address posture, strength, balance, joint mobility and flexibility . Provide seniors with fitness equipment to enhance their strength and flexibility through the purchase of equipment . Develop a Pilates program that focuses on the needs of the over fifty population in South Bay . Seniors will participate in specialized Fall prevention, balance and flexibility programs that provide a social environment for the development of strength, flexibility and health habits. Evaluation . Use of the fitness center will be measured daily attendance and class attendance in the fitness center. . Participants will keep personal records of their workouts. . Seniors will be surveyed to assess health access and awareness. 4 ABIO/31/06 12-49 Obiective 3: Increase Psychosocial Support for Seniors Activities . Sponsor monthly men's support group lunches facilitated by a Scripps Doc to offer senior men in the community a venue to discuss personal health issues. . Camp Scripps will provide an opportunity for seniors to get an inside look at hospital care, an ambulance, specialized programs and services. Participants will get t shirts for attending and will be provided a healthy lunch each day of camp . Promotoras (4) will be trained by Scripps Health and Well Being center staff to provide health information to 50 seniors per month. . Norman Park staff will recruit seniors, track attendance, set up training dates. . Promotoras will speak at senior residences, mobile home parks and to senior social groups about important health issues. Overall Evaluation All proposed program activities would be evaluated through a variety of qualitative and quantitative measures. Baseline data will be collected through a participant questionnaire that will collect information regarding demographics and access to health care. These programs do not duplicate any direct care services already available in the community. . There are no senior fitness centers in West Chula Vista. The YMCA located in East Chula Vista has a family fitness program and encourages senior membership at a cost. Our project would afford seniors low cost access to fitness equipment supervised by professional trainers. . There is no other senior center like Norman Park in the South Bay area that offers a large variety of classes and has the diversity and high attendance as documented by Norman Park. . This is a unique partnership between Scripps Mercy Hospital Chula Vista's Well- Being Center and Norman Park. 5 AB10/31/06 12-50 2007 COMMUNITY BENEFIT FUND NARRATIVE (4 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH ACTION AND EDUCATION Sustainability Plan Programs must incorporate a sustainability plan, identifying how the program/project will be supported when the Scripps Health funding ends. Include a project funding plan for the year and any progress or plans for sustainability of the project after the initiative ends in 2007 (100 words): OVERALLSUSTAINABILITY Through the course of this expanded project, sustainability will be identified through grant opportunities and continued collaboration with Scripps Mercy Hospital Chula Vista Well Being Center and other agencies. This proposed expansion is a model for partnership between a community-based senior center and Scripps Mercy Hospital Chula Vista for our continued successful programs FITNESS PROGRAM Last year, the City Of Chula Vista funded the fitness center to be open 18 hours a week. The Scripps grant provided 10 additional hours for the facility to be open last year. The City has incorporated those hours into their 07-08 budget. The purchase of additional fitness equipment funded through this grant will encourage a broader membership base. Revenue from memberships fees will demonstrate justification to continue the program when grant funding ends. Classes offered through this grant will continue on a small fee basis to cover the cost of the instructor once the program is established. HEALTH TALKS and MEN'S SUPPORT GROUP The center currently offers health programs from a variety or organizations. Grant funding will provide funds to call and remind seniors who have pre-registered to attend, provide refreshments and extra incentives for seniors to attend. The senior center, through this grant, will enhance their working relationship with Scripps Mercy Hospital Chula Vista Well- Being Center and continue to offer health talks and the men's support group as a regular part of programming when funding ends. HEALTH FAIR Health Fairs require intensive planning. Once the health fairs have been designed it is possible that in the future and intern could organize a health fair. CAMP SCRIPPS This program requires heavy support from Scripps Well Being Center. Norman Park will coordinate publicity, recruit and register seniors and collaborate with Scripps Well Being Center to develop an informative, fun, educational camp for seniors. PROMOTORAS Seniors participating in these programs may see the value of what they are contributing to the community and choose to volunteer to continue when the grant has ended. 6 AB I 0/31/06 1 2-51 2007 COMMUNITY BENEFIT FUND NARRATIVE (5 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:Happy Healthy Seniors: Senior Wellness through Action and Education Applicant Organization Briefly describe your organization including the mission, vision and values. To the degree possible articulate how your organization's values align with the Scripps Health values of quality, efficiency and respect (not to exceed 100 words): Norman Park Senior Center is an established one stop shop for residents in South Bay who are looking for programs and services for persons 50+. The center directly serves independent seniors with educational, recreation and physical activity programs and provides information and referral services to all community members regarding programs and services for seniors. Nonprofit support agencies including Meals on Wheels, Lutheran Social Services, Senior Legal Services and Aging and Independence Services outreach, have offices on the 2nd floor of the building. Seniors from all over the South Bay region participate in activities at Norman Park as it offers the most comprehensive senior programming in South Bay and is open 72 hours a week. The center also has a safety net program for at risk seniors. The Senior Center is funded through the Recreation Department of the City of Chula Vista. The Recreation Department mission, Vision and Values are as follows: . Mission: nWe enrich the community through recreation opportunities and services." . Vision "Our vision is a community that achieves learning, self-discovery, balance and essential life skills through recreation." . Values: Integrity, Respect, Professionalism, Accountability, Commitment, Teamwork and Fun The Recreation Department values of ResDect and Professionalism are also values of Scripps. Scripps "Quality of service" relates to professionalism and accountability values of the Recreation Department. By caring for patients in a responsible and efficient manner/ Scripps demonstrates commitment and teamwork, which are also values of the Recreation Department. 7 ABIO/31/06 12-52 2007 COMMUNITY BENEFIT FUND NARRATIVE (6 OF 6) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:HAPPY HEALTHY SENIORS: WELLNESS THROUGH ACTION AND EDUCATION Affiliated Community Organizations If other community organizations are involved in the program/project please identify what they are and how they are involved (100 words): This proposed expansion is a collaborative effort between Scripps Mercy Hospital Chula Vista's Well-Being Center. Additional important partners indude The City Of Chula Vista Recreation Department, local community college and adult schools. Senior Center supervisors will be involved in processing and supervision of the project. A City Of Chula Vista graphic artist will design publicity flyers. City Of Chula Vista fitness specialists will teach the fitness classes and the Recreation Department's Life Options program coordinator will recruit and schedule promotoras. Chula Vista Adult School and Southwestern College instructors will assist in the recruitment of seniors for programs both at Norman Park and throughout the community. Volunteer groups teaching and leading classes at the senior center will assist in the publicity of programs designed for this project. Some of these classes include World Affairs, Craft groups, art classes, exercise classes, language groups and computer classes. South County Action Network, a network of agencies serving seniors in South Bay will assist in the promotion of activities. 8 AB I 0131106 12-53 2007 COMMUNITY BENEFIT FUND BUDGET SHEET (1 OF 2) PROGRAM INFORMATION Organization Name: Norman Park Senior Center Program/Project Name:Happy Healthy Seniors: Senior Wellness through Action AND EDUCATION Ju 1 2007 OPERATING List Program Specific Position TItles & Salaries: 1. Recreation $7.950 - $7950 specialists, leader - 2. Recreation - $3000 Supervisor $5000 - Fringe Benefits & Payroll $413 $413 Taxes Consultants & Professional $ 1000 $ Fees graphic artist Travel $100 $ Consumable Supplies $13.260 $13.260 Printing & Copying $500 $ Telephone & Fax $200 $ Postage $100 $ Rent & Utilities $17.000 $ Other Operating Expenses (specify): 1. promotional t shirts $900 $900 2.Promotoro stipend $4000 $4000 3.Volunteer stipends for $360 $360 office work TOTAL OPERATING $50.783.00 $29.883.00 EXPENSES :;- AB 1 0/31/06 12-54 2007 COMMUNITY BENEFIT FUND BUDGET SHEET (2 OF 2) PROGRAM INFORMATION Organization Name: NORMAN PARK SENIOR CENTER Program/Project Name: AND EDUCATION HAPPY HEALTHY SENIORS: WELLNESS THROUGH ACTION REQUESTED ITEM PROPOSED PROJECT % OF TIME FROM SCRIPPS BUDGET HEALTH CAPITAL Equipment (specify): Fitness center Other Capital Expenses (specify): 1. Training 2. 3. 4. TOTAL CAPITAL EXPENSES TOTAL PROJECT BUDGET $5000 $5000 $5000 $ $ $5000 $- $ $ $10.000 $10.000 $60.783 $39.883 Number of units or persons served 6352 Per unit cost.: $6.28 . To calculate. divide the total project budget by the total number of units or persons served by the program/project. 2 AB 1 0/31/06 12-55 2007 COMMUNITY BENEFIT FUND BUDGET NARRATIVE (1 OF 1) PROGRAM INFORMATION Organization Name:Norman Park Senior Center Program/Project Name: HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH AmON AND EDUCATION Budget Narrative A detailed budget narrative of proposal expenses must accompany the budget. For each line item in the budget, please provide a brief description of how the funds will be used and why they are programmatically necessary. You may use this space for any explanatory information that would help us understand your project budget, including in-kind donations, number of full- time equivalent staff on the project, explanation of specific budget items, overhead rates, etc. (100 words): Recreation Specialists will write press releases, make arrangements for refreshments, register seniors for the programs and make all room arrangements. These tasks are necessary in order to have well attended programs. Recreation Supervisor will oversee entire project. The City Of Chula Vista graphic artist will create flyers and all publicity documents including all Scripps logos. Professionally crafted flyers attract the consumers attention. Mileage will be reimbursed for miles traveled in personal cars for all aspects of these programs. Consumable supplies include all refreshments, incentives, t-shirts and promotional materials that will be provided for the seniors. These consumables attract the seniors and keep them coming back. Often the senior, because they have enjoyed a program, will bring a friend to the next one. Printing, telephone and Fax, Postage and Rent are a portion of the overall operating expenses for this project. Training will certify the fitness staff to provide specialized, professional, safe programs. When working with this special population, training of staff is required to ensure the participants safety and to teach modified exercises. Fitness equipment will be purchased to provide opportunities for seniors to work independently once they are trained on equipment that addresses issues of joint mobility, balance and flexibility. Promotoras and other senior volunteers will receive stipends to perform their duties in a professional manner. Fitness center equipment will provide tools for seniors to improve their balance, flexibility and overall strength. Training funds will be used to train staff to provide a safe, age appropriate pilates program. ABIO/J 1/06 12-56 2007 COMMUNITY BENEFIT FUND REVENUE SHEET (1 OF 1) PROGRAM INFORMATION Organization Name: NORMAN PARK SENIOR CENTER Program/Project Name: HAPPY HEALTHY SENIORS: SENIOR WELLNESS THROUGH ACTION AND EDUCATION Scripps Health Community Benefit Fund Government Grants & Contracts (specify): 1. 2. 3. 4. Foundations (specify): 1. 2. 3. 4. Corporations (specify): 1. 2. 3. 4. United Way/Other Federated Campaigns Individual Contributions/Donations Special Events & Other Fundraisers Membership Dues fitness center memberships Earned Income In-kind Contributions Other (specify): 1. City of Chula Vista General Fund for Norman Park Senior Center 2. 3. 4. TOTAL REVENUE $- $- $- $7500 $ $ $13.400 $ $ $ $20.900 $ $ $ $ $ $ $ $ $ $ $39883 NOTE: THE TOTAL REVENUE AMOUNT CONFIRMED PLUS THE TOTAL REVENUE AMOUNT PROJECTED SHOULD EQUAL THE TOTAL PROJECT BUDGET. 2 12-57 AB 1 0/31/06 t} Scripps Exhibit B, Semi-Annual Progress Report 8 Updated: 4/13/06 ab Legal Review: 3/21/03 rs 12-58 Ref: llpmtrpt SCRIPPS HEALTH 2007 COMMUNITY BENEFIT FUND Semi-Annual Month Progress Report ,;PROGRAM INFORMATION I , , , i , , , Organization Name: Program/Project Name: , Time , Frame Desired I Statusl 1 Outcome Strategy(s) Measurement s Baseline (Start and End Outcome Dates . . . ~ "" I '~ . . . . . . . . . lof1 t). Scripps Exhibit C, Year End Final Report 9 Updated: 4/13106 ab Legal Review: 3/21103 rs 12-60 Ref: lIpmtrpt 2007 Scripps Health Community Benefit Fund Final Report Form Today's Date: Name of Organization: Fiscal Agent (if different from your organization): Address: Email: Phone: Fax: Contact person: Title: Project Title: Grant Amount: Period that this report covers: -.! _ to ~_ Part 1: Project Budget Review What was your proposed project budget? $ Please provide information on the final project budget figures for this project for the grant period. 1. Total project revenue, by source, as indicated below: Total Project Revenue $ Scripps Health Grant $ Government Grants $ Other Foundation I $ Other Foundation 2 $ Other Foundation 3 $ Other Foundation 4 $ Al1 Other Funding Sources $ 2. Project expenses paid out of the Scripps Health grant for this grant period. Staff Expenses $ Consultant Expenses $ Non-labor Expenses (e.g., materials, local travel) $ Indirect Expenses (overhead) Total of above expenses $ $ If the total expenses paid out of the Scripps Health grant are less than the award amount, please explain why. 112-61 Part 2: Description of Results Please respond to each of the following questions using up to 3 (three) pages in total. Your responses should focus specifically on the funded project or program. 1. Referring to tbe goals and objectives described in your original grant request (or any subsequent revisions), please describe tbe following: a) If you did not receive full project funding from Scripps Health or any other sources, please explain how you adjusted your project. b) What action steps or activities did you use to meet your objectives and goals? c) In the quantitative measures section we will ask you to list up to 5 specific quantitative measures of your project. Please use this section to comment on these quantitative outcomes and to describe other (non-quantitative) outcomes. If the measures and targets are different than those listed in your proposal, please describe the change. 2. We are interested in learning about cballenges tbat you may bave bandIed as you implemented your project. a) Describe any setbacks that you encountered during the period of this grant. b) How did these difficulties affect/influence the project or your organization? c) How were they addressed? 3. Tell us about lessons you bave learned from tbis grant: a) Were there any unexpected results of the project? b) What are the key things that you learned from this project? 4. If your project involved collaboration with other organizations or individuals outside your agency, please describe the effects of tbat work for the project. 5. Wbat steps are you taking to sustain your project or organization beyond tbis grant period? 6. We hope that our grantmaking process is easy to understand and reasonable. Please give us your comments about any aspect of it, such as tbe proposal requirements, the proposal review process, and/or the reporting requirements. 122-62 Part 3: Quantitative Measures In addition to the narrative description on the previous page, we are interested in quantitative measures of the outcomes of your grant, if applicable to your project. You may have up 10 5 measures, but none is required. Measure (e.g. People Directly Served, Target Attain Meetinps Held) # # 1 2 3 4 5 Optional Attachments: _ PromotionaVdissemination materials about the program (i.e. brochures, flyers, ad copy) _ News Clippings FINAL REPORTS MUST BE SUBMITTED NO LATER THAN THIRTY DAYS AFTER THE END OF THE GRANT PERIOD. Send to: Community Benefit Manager Scripps Health Community Benefit Services 4275 Campus Point Court, CPII3 San Diego, CA 92121 Or to: blatt.anette(aJscriooshealth.org Questions: 858-678-7095 Revised: March 23, 2006 132-63 t). Scripps Exhibit B, Semi-Annual Progress Report 8 Updated: 4/13/06 ab Legal Review: 3/21103 rs 12-64 Ref: Ilpmtrpt t). Scripps Exhibit C, Year End Final Report 9 Updated: 4113/06 ab Legal Review: 3/21/03 rs 12-65 Ref: llpmtrpt RECEIVED FROM PETRA BARAJAS <6 -111J.-3 ~aE{()eJJ ;:i(OIl7;JeJlfIf l3/ltf/1.T/JS I , ~FK c ~~lL3' ~"l-IVES, RECEIVED .... .v.OOXW1.;. AV0VifZ,?-007 ~f.~17 A9:18 ~~,~"~ ,;~'~'.,..; 'OlulaVlsta,CA91912t;' '\0 ~ CltvCA fl5-hQ?;t Cov y. c)F~' . ~...!.t,/\'.c I Cl' 11l!'KOJ IJ>QR,. I rr tl Ff I '","'0'" p,,,p,"" I."" Chol. v".. ",.."",,",,",.h, 1n1110R) rJCj-1Jf11- l(~ . D ',o' ",.11 r"II..", (or emu' We., completion or have: I'no~ the 1989 '" ~ - ",.k, '" lull"...., ,~huol, (onCUrrcnl ordinJfI(c for ,rowlh It- qtqJ ,k'cl"p<;r, 1<1 hu,ld Willi dc\elorment cunlroltordcvclope"'" _-"""-"""~ C",,' d" SUHSO proO.. '" 00. ,h,'. "J ..., I~' ,;;T]J...J...h:;; (!., V. ' A IQur ,lor\' Bleh andimpl<,rmnlaChula dren', MAmuiun ~ I Y VHI/ lJYr;. Sd..",,1 w,lh 5)1011 ,Ill' V,.ta unified ,,,110<11 [)I"f,m" ~Clu'n prolec1 11 - denl capacllv. and J dl\l. ,radu K.I:!. wilh your write.in ~ ~~r-: ~~ to 1/11 e ..0 "",,.' m,dd!, S,mo'''~'''''Y ,ff". ,," ,,, ,,," E. ..V\^ = , .. I fr' If' ~ .' \,ho,,1 'l\'llh ~ 2.500 ll~t June !i.200J. Barajas for I\lIror I Y \ ~ " IV 'lIJ,knl ral'a~l1y at Our Clly'~ children Nov. S. 2002. 11'~ your rty Ct -' -r 4 ~ ~ r- EaseLal.c and Chill. fulurc ,) a Jcwellu be .. American DRam" . '" :':~;,,,~~;'..i';;:~; :::~":~;.'::;:d':':d ~::o~"'w~~~,:;:: Cl 1f5/.J>.ef'/ MvD wi ~vtVf r J ~ h,'Ja~'.21'I3,"," .0ooOM ,h,y ,,,d E. 8mj.. Cha'. f tV ~ fl ;\ft6-rilA -t:.ve'-':J/1J(; four 'IO.~. High School ~('. noe com~roml~. ViJl.lI ~I'ror Nov. 5. ~ C{) ~ ~ 1/f' CO S wuh J,OOO 'ludenl~ II (arctic: noaMlaJ ,am 10112. '" ~ '" m ~a"aClI\. allJ "HI''''''''; and a,"anccmcnt 01 ..JI ~ ~ rJ J _m'dd!' ",,,,,, .,," po'"'''' po.'" '" '~,:~~",,"~ _ .t.S 1U ~-E'ComlYl-B1l~ tr ~cLJkJV1 k 0 yv ~()Jo{L\ yIlfi RffOfl;1efu; let2-W\2.\~~17f~SMJ pc-bV ~~ 1:t-r\vh..5 fA-R,\1, CtJ LIt~ 1$s V~l1T"JULy ~J~oo7 po ~ B~.vjER ~">A.ost .\f<1JV~fJ4LlS M ~ C.S rfJ 1lfE 13Eo~ t-Jit-~f1J'~ft=n fie- ~ qM.A v~~ ~9~CocJ/f/1y) 5kVfN/;,~l.Ls ~rVO Ztves"()f I ~~LE \)) \1~ /r:t-Cq.J~ wrlLiJi f!f?JJ1Ft> jt1JvTpfe='(;pEJVII/JLfi;S p~ ~~ILl1> tel{ ~ \tE 15 ,4W~LL l'1~of[P Mt>YMvepTJICf~Mc- ~'l "fWtVJN'f)1f'x ~~ pS{)8s$iZE'7f :lpvS(fiJC&5.1Itff1v1llt$lrJt: MLS~ \1te crfr2EIVS'; tftsTJf;:fC.:r1ZVCk1rM)l-17h ~ 11orJ1)~'fJ6'!f(fY1IN "'* Q,,'y~ """15 ,Ii c_ :M\~ f.R'f) $'jJl1'eJL.patd4f!'1.. ~ sftrcit"fPW Lw~ VJlJffl-~E>iy ~(kTiI"W~ty t~~ \'J\.l C\,O(\J{q\] t; t~~Vf1-JJv..cPJ ('1>1~fcor.Le-J..qCl~~€PfL~ if' ~y 1\t~1(Cf) ?L~-Js:t\WL~ wtf~tS;H1fWle0fICY1f(bVf2-~RF~ ~R.. L~~~ ~\jJs1J~~~AL~ ~.s,cf\lV::-PSJ1f!t5fS wfff(*, ~~~(l,ES eS\5 ktvP ~ }\- <;Coy ~of\l fofZ-,H-ts1iC(1;~E" 10 ye=ftoN6f;.;- \~f;;' '\:)~~ ~cU /tJV{~C)t~& ",p.x~s1V ~klfcff/s fi$~E: b~ .~ ,h ~ "~\lft' (j,v.017. p, u dJ/ 1/1> D'dMP ~ 1lt1f1' f1ltE 15M'<='13 kL L.5 ES~~'j '5 y>fAye/., . C~LLJS WJ8MtJff" PI ~f7Vte- (5 (;orYfif~ /Vt;- "'l7f.lr~J o~iJlfts, 0'e/J<~~~,\\lffI(VG l'^l\:::~~V~~~1. ~L ~. ~ C::~~J\-\-m l-rz,tJ 5 C 4tcrvOiZ-HVt;' J,/V l\ 1.,": IV DJ I\J~ ~~V\V')'Z-.E: .~ 0 D,), e: ~ t.l.{ fW~IL C:1>J~cjl, fA-\1-tl::-fZ,.5 ~ ~~c. . Lli") !4/~ jJ f7cY-/JJJ1 '~~f2-."c;m'2.C#r$~J " .. RECEIVED FROM PETRA BARAJAS G H T S C I T Y ;fkEIUED 1if0/J1 A~/~/J uvs 'l;fI{~JI1J V1 --, )Iyman and lSforhisrole state utility of the 1990.< tical advisor bnMoores, t back onto w..steMan- taxpayer- $117,BIBa -old <l1eryI 003 by then ton, a dose )(lard early :<:i. Current statesena- ~ar veteran ~ senate. to j Republi- it at now- ration and wfAmer- ltment to y Speaker ll'ea<rhas ieffective lied w..ste ," Nunez vs release lYe. "Her luing the audate." :nateand 'e picked fho once ;tensibly :cyding ~ used to : Peace's to state ieked in in local on June pfather Uy trust~ treet in he deal y Devid lrnmis- 13 Mal- interest ~whi1c o least' listrict. :led an Summer sail U"ion- Tribune owner David Copley's 164-foot yacht Happy Dayshas departed Monaco; on July ll,itwasspot- ted at the docks of Luka Gruz harbor in Dubrovnik, Repub- licof Croatia. ... San Diego Magazineeditor Tom Blair has joined the legions of local Barack Obama backers with a March contribution to the Rob Quigley Democratic presidential can- didate of$250. Other Obama- itcs include high-concept architect Rob Quigley ($500) and public relations woman Jan Percival Lipscomb ($1000). Meanwhile, local Democrat Byron Geor- giou, onetime leg.ll affairs secretary to (;ovprnnr LIGHTS C I T Y L I G H T lS RECEIVED ALE.-7ePn6n:1 Qlles Pa- ~4 s Ir Deal The convention center deal between Chula VISta and Nashville's Gaylord Enter- tainment has apparently collapsed. People are wringing their hands. They whelming bulk of the com- should be clapping their hands. pany - is softening. alllla VISta and the Port could Now there is talk that the not afford the heavily subsi- deal will be revived That's too dized proposal that was on bad, because if this costly sub- the table_ Gaylord couldn't sidized deal were shelved, Rendcringfrom now scrapped plans for Chula Vista marina development afford to ante up its portion either: it has lost $167 million in the last three years, has con- tinued losing money this year, and is loaded with debt. Its hotel business - the over- downtown San Diego's con- vention center and hotels wouldn't be losing business to Chula VISta. On July 6, the company wrote a letter to Chula Vista servicesofBostonlawyerslallJeyKell.r,w~~ ~~.. I advising the council on compliance with co ;J Y OCFLEl'l'R~~rP'lf. tions the SEe laid down in a November 2006 J I tlement following its investigation of the City's By Don Bauder fraudulent disclosure practices. The council earmarked $4 mil- lion to retain Keller and asso- ciates, a sizable chunk of which, the expense reports show, has been spent on travel, food, and incidentals. "Lunch at Bonjour," "Hotel Stanley Keller stay for San Diego," "Dinner at Dobson's,""Parking at Logan Airport," "Limo Cab fare to hotel in San Diego" are among the expenses listed in a $809.73 entry for January 21 of this year. Total costs in January were $70.351.33, On February 7. the report attributed $1039,60 to "Travel & Related Expenses for Waiter St. Onge's airfare ticket." On Febru- ary 13, a $935.72 expenditure by S1. Gnge, one of Keller's legal associates, included "Dinner with Stan Keller," "Breakfast with Stan Keller and Jay Goldstone," and "Va:rious tips throughout the trip." Grand total in February: $63,608.23. On March 20, St. Onge was reimbursed $880.41 for such items as "Meals Coffee; Meals Dinner; Hotel the Westgate Hotel." Of course, there was also SOme work involved, For instance, on April2S, it took 3.3 hours for Keller to "Prepare work plan and budget; prepare Audit Committee guidance; review City Attorney Report on internal controls," and have "discussions regard~ ing Interim Report numberI5." At Keller's hourly rate of $700, that session cost $2310. At the end of a hard day, it was back to an unidentified hotel for St. Dnge. "Dinner-$31.49; pink lemon~ ade-$2.90"were among costs included in a $1295.93 expenditure for St. Dnge, dated April 25. The total for April was $63,364.22. " . officials, saying it was back- ing out because of intransi- gence of the San Diego Build- ing and Construction Trades Council, which demanded that only union contractors and subcontractors be aIlowcu to participate. This would have added $50 million to $75 mil- lion totheproject'scost, acrord- ing to Gaylord, which also fi:ared environmental lawsuits. Had .the company done its homework, it would have known that labor and envi- ronmental problems are nor- mal costs of doing business in California. The Cityand the company had been negotiating for a year_ Gaylord wanted to build a hotel with 2000 rooms and 400,000 ,sq~are feet of con- vention space that would be marketed greatly to organi~ zations that want to keep their convention and attendees under one roof. Gaylord oper- ates such facilities in the i'iashville, Orlando, and Dal- las markets and is building one in Prince George's wunty, Maryland, to serve the nation's capital. These hotels consti- tute 96 percen1 of Gaylord's business. The Grand Ole OpT)' and related enterprises make up the rest. . . . , ~ g > < ~ o o o > o Threats contirrued orr page 8 By Don Bauder City Attorney Mike Aguirre is getting threatening letters. There is nothing new about that, except that these have come from purported law enforce- charges;' warned Korsmeyer. ment agencies. "Your actions may cause the On July 17, Aguirre got a tainting or loss of crucial evi- hand-delivered letter from dence" sought by her office. the district attorney's office. Parallel investigations are not According to chief deputy unusuaL There is good rea- district attorney Julie son to believe that the dis- Korsmeyer, the office is look- trict attorney's office will ing into the land deal in which bury - not investigate _ ballpark czar Mike Madigan the Madigan/Nieto matter. <>n,~ hi.. .....~.~~_ 0_..1 "T:.. Mikr'Aguirrc officials including District Attorney Bonnie Dumanis, said he would ask the attor- ney general to look into CITY LIGHTS Penniless pair contirluedfrom page 6 "I looked at the Gaylord letter of intent, and it was pretty clear to me that it was a risky project for [Chula Vista]," says Scott Barnett, president and founder of Tax- payersAdvocate.org. Chula Vista and/or the Port were looking into the sale of $308 million in bonds to subsidize the deal. "The Port or City or both would have to come up with $25 million a year to cover the debt service. To get $25 million out of the pro- ject, ynu have to have $2.5 bil- lion worth of new, private development:' Gaylord planned to put $750 million-plus into the project. With the public sec- tor putting in a bit more than $300 million, "The Gaylord hotel project would only have generated $7 million to $7.5 million of tax increment;' says Barnett. "So that means that the other $18 million of debt service had to come from other sources such as sales tax, hotel tax, or $1.5 billion of private bayfront development:' CITY LIGHTS And Chula Vista is in over its head already. Last Octo- ber. Barnett issued a report titled "Chula Vista - The Looming Fiscal Crisis:' Among many things, the study pointed out that the City's revenues have soared the past fouryears, but spending has risen even more rapidly. The inevitable result: deficits. The bureau- cracy has burgeoned. and the average management salary in October was $131 ,400. The pension debt tripled over two years, and the City's debt zoomed by $143 million in five years. In the ten fiscal years ended in 2005,Chula VISta's revenues jumped from $98.1 million to $233 million, but spend- ing increased more rapidly, from $108.7 million to $256 million. In the four years ended last year, the City ran a deficit of$2Imillion,reducinggen- era! fund emergency reserves to balance the budget. By the end ofIast year, the emergency reserves were down to 6 per- cent of expenditures; the city council's target reserve policy is 8 percent. The City has increased its debt by $143 million in the SAN DIEGO'S LOCAL DATELINE SAil!; 1181111 EMJIOY:7f! Listen & Reply to Personals FREEl San Diego 619.295.5550 858.707.7777 EI Cajon 619.387.0317\' La Mesa 619.388.0770 'IJ 'J Chula Vista 619.734.0083' La Jolla 858.713.5545 Mira Mesa 858.860.0177 Encinitas 760.516.0011 Oceanside 760.405.0899 CITY LIGHTS past half-decade. It's now up to $190 million. Chula Vista has added 256 employees since 2001 and boosted bureau- cracy pay and benefits. The City has $13 million in pen- sion obligation bonds that it first floated in 1994. Such bonds are poison, because they don't go to building a bridge or a school or something that would make the econ- omymore productive but sim- ply shift an obligation onto future generations. Gaylord is not much bet- ter off. Largely because it has lost money heavily in four of its last six years, "Earnings are insufficient to cover fixed charges by $104.2 million;' the company confessed in its 2006 report to the Securities and Exchange Commission. That's more than double the insufficiency in 2005. (Fixed charges are costs that remain the same regardless of the extent of use. Rent and prop- ertyinsurance are often exam- ples.) The company admits it has "a significant amount of debt;' and when any amount of principal is due, Gaylord may not have the cash to pony up. The company has $874 "~ - CITY LIGHTS million of long-term debt; that's $120 million higher than last year, and it dwarfs the $808 million of equity, or the value of stockholders' investment. Because of the high debt, the company is restricted from paying dividends, making acquisitions, and incurring further debt. In late May and early June, Gaylord sold $366 million of its assets. It intends to pour the proceeds into its hotel business - but not in Chula Vista. Realistically, it should think about paying off some of that debt. In the first quarter of this year, Gaylord's net - income plunged 74 percent to $3.5 million. Occupancy at the hotels dropped because of a decline in group meetings. Morningstar, which rates com- panies and mutual funds, gives Gaylord's financial position a grade of F. The company's profitability gets a grade ofD. Mark S. Basham of Stan- dard & Poor's says the com- pany will lose another $5.5 million this)"'l1'. He was count- ing on the Washington D.C. facility and the Chula Vista project to boost earnings until 2012. Now that looks shaley. The company gets the lowest ranking (1) out of Standard & Poor's fair-value ranking of I to 5. When government enti- ties can't afford to dish out a subsidy and a private sector entity can't afford to plunk in its share, it's time to call the deal off. . , ., 1" .. co~ <;(~" , 'Jr.Jd' l'OLl' 1\, Golden Hill blindness , (0I1IiIllH,ti/roml'IIi:,,7 demup, removing large atxU1- . doned items from the com- munity, landscaping along streets, deaning up canyons, placing and emptying trash CITY COUNCIL AGENDA STATEMENT 08/07/07, Item~ ITEM TITLE: PUBLIC HEARING PROCEEDINGS FOR THE PROPOSED ASSESSMENT INCREASE FOR OPEN SPACE DISTRICT Nos. 3; 7; 9; 20, ZONES 2, 4 AND 7; 23; AND EASTLAKE MAINTENANCE DISTRICT NO.1 ZONES A AND D. CITY ENGINEER CITY MANAGER 4/STHS VOTE: YES D NO 0 SUBMITTED BY: REVIEWED BY: BACKGROUND On May 22, 2007, the City Council authorized the preparation of an Engineer's Report in order to initiate the Proposition 218 ballot process to consider an increase to assessments in nine of 36 existing Open Space Districts/Zones because the estimated cost for service requirements exceeds the amount of revenue that can be generated by current maximum assessments. The Proposition 218 process for Open Space Districts requires the approval of an Engineer's Report and the declaration of intention to raise assessments; the mailing of a notice and ballot to each property owner within each affected Open Space District; the holding of a public hearing; tabulation of the assessment ballots; and resolution declaring resulting levies. On June 5, 2007, the City Council approved the Engineer's Report, the mailing ofa notice and ballot, and set the public hearing to be followed by a tabulation of the assessment ballots. Tonight's action will conduct the public hearing to be followed by the tabulation of ballots on August 8, 2007. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves a ballot measure for potentially increasing funding for existing activities in the Open Space Districts and does not involve any new activities, therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That Council conduct the public hearing to take and consider public testimony. 13-1 08/07/07, Item~ Page 2 of6 BOARDS/COMMISSION RECOMMENDA nON Not applicable. DISCUSSION This topic was discussed at the May 22,2007 City Council meeting. On June 5, 2007, the City Council approved the Engineer's Report, and set the public hearing to be conducted tonight. The tabulation of ballots will occur on August 8t\ staff will return to Council on August 14th with Resolutions declaring the final Fiscal Year 07/08 levies resulting from the ballot tabulation. Open Space Districts Open Space Districts (OSD's) were established in conjunction with each particular development to ensure financing for the perpetual maintenance of common open space areas. OSD's provide a mechanism for the City to levy an annual assessment to cover the costs of maintenance associated with each OSD. OSD's 3, 7, 9, 20, 23, and Eastlake Maintenance District No. I costs for service requirements will exceed the amount of revenue that can be generated by the maximum assessment. Due to the passage of Proposition 218, the City cannot increase the maximum assessment without the approval of property owners within the affected District. Proposition 218 On November 5,1996, Proposition 218- the "Right to Vote on Taxes Act," was approved by a majority of voters in a general election and took effect on July 1, 1997. This proposition severely impacted the formation of Open Space Districts by the "1972 Landscaping & Lighting Act." This impact stemmed from the burden placed on cities to show that parcels to be assessed received a "special benefit." In addition, all future increases in the amount of the assessment require the approval by the property owners via a ballot procedure. The only exception to this requirement is the use of an inflation formula, approved by property owners during the formation of the district. The passage of Proposition 218 added an additional layer to the procedural requirements of the majority protest provisions related to assessments. To disapprove an assessment, previous law required a majority protest of property owners owning more than 50% of the assessable area, but did not require an election. Proposition 218 now requires that the agency mail a ballot to each property owner of record. Then, when the ballots are tabulated, a majority protest exists if the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed. Proposition 218 removed the ability of the legislative body to override a majority protest. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. In order for a public agency to increase assessments beyond the annual inflationary amount, a Proposition 218 balloting is necessary. Such a balloting consists of the following steps: 13-2 08/07/07, Item-B- Page 3 of6 1. Preparation of an Engineer's Report 2. Distribution of a notice and ballot to property owners 3. Public hearing and ballot tabulation The Proposition 218 assessment ballot proceeding requires Council to take three actions before levying any approved assessment increase. First, Council approves the Engineer's Report, declares its intention to levy the annual assessment, and sets the date and time for a public hearing. The second action is to conduct the public hearing, take and consider public testimony, and tabulate ballots. The third action is to adopt the resolution approving the assessment increase and ordering the levy of the annual assessment for those Districts that do not receive a majority protest. Tonight's action is the second step in this process. Table I lists the names and locations ofthe Districts. District maps, a summary of services and potential service reductions can be found as Attachment 1. Table 1. Open Space Districts Within the City of Chnla Vista OSD# Name . . ...... . ..... . .... ...... .... ...... 3 Rancho Robinhood Units I & 2 South of Allen School Lane 7 Zenith Units 2,3, and 4 North & South of Palomar, east of 1-805 9 EI Rancho del Rey Paseo del Rey, north of Telegraph Canyon Road 20 Rancho del Rey North of East H Street, west of Gray Lakes Road 23 Dray Rio Business Park West of Heritage/Otay Valley Road, south ofOtay Rio Road - Eastlake Maintenance District No. I Eastlake I. Eastlake Greens, Salt Creek 1, OTC, Telegraph Canyon Channel Improvements and Services The maintenance activities, facilities and items to be maintained by the Open Space Districts consist, in general, of the following: 1. Irrigation 2. Fertilization 3. Aerification 4. Pest control 5. Insect infestation control 6. Removal of weeds, trash and litter 7. Removal of noxious plant materials 8. Trail maintenance 9. Public walkway cleaning 10. Low flow and brow channel maintenance 11. Weed abatement 12. Pond equipment and maintenance 13. Pedestrian light maintenance 14. Signage within trails/canyons 15. Pruning of trees and shrubs 16. Replacement of dead or diseased plant material 17. Repair of irrigation equipment 18. Irrigation equipment upgrades 19. Brush clearance 20. Encroachment trims 21. Fencing maintenance 13-3 08/07/07, Item ~ Page 40f6 Maximum Assessments In the mid-1990's (and for all Open Space Districts established after that date), Council approved the assessments with an inflation factor. Since that date, Council may annually increase the assessment by this inflation factor without this increase being subject to a protest vote under Proposition 218. The current maximum assessments for FY 2007/08 were approved by Council on July 10,2007 at the FY 2006/07 amounts adjusted by the inflation factor of 3.4% pursuant to the Municipal Code. This allows the City to assess the nine districts at the maximum rate assuming the ballot is unsuccessful. The current maximum assessments, proposed increases and proposed maximum assessments for FY 2007/08 are as follows: Table 2. Current and Proposed FY 2007/08 Maximum Assessments Assessment per EDU Open Space District Maximum Current Proposed Increase Projected or Zone FY 07/08 FY 07/08 ($) Revenue 3 $ 364.89 $ 510.00 $ 145.11 $ 64,770.00 7 $ 129.83 $ 174.00 1$ 44.17 1$ 18,096.00 9 $ 168.09 $ 230.00 1$ 61.91 1$ 88,320.00 20 [Zone 2 - Rice Canyon $ 4.69 $ 17.00 $ 12.31 $ 67,309.46 ~one 4 - Business Center $ 24.91 $ 52.00 $ 27.09 $ 135,329.53 Zone 7 - SPA III $ 178.35 $ 339.00 $ 160.65 $ 398,931.47 23 $ 551.82 $ 760.00 $ 208.18 $ 68,445.60 ELMD No. I Zone A - Eastlake I $ 12.72 $ 34.00 $ 21.27 $ 286,619.41 Zone D - Salt Creek I $ 230.01 $ 303.00 $ 72.99 $ 128,290.20 Budgets In general, the deficit situations are due to two primary factors: budget requirements outpacing revenue growth, compounded by the impacts of allowable index increases. In general, expenditure budgets have increased due to price increases in labor, materials, supplies, and electricity. Of particular note are increased requirements due to the repair, replacement, and testing of back flow devices. Backflow is defined as the reversal of flow of water and/or mixtures of water and other liquids, gases, or other substances from a customer's side of the service connection (normally the water meters), into the City water system. State regulations require public potable water supplies to adopt rules to prevent contamination in their water systems. To comply with these mandates, 13-4 08/07/07, Item ~ Page 5 of6 the City ofChula Vista's Open Space "Backflow Prevention Program" was designed to protect the City's potable water supply from contaminants back-flowing from a customer's water system, in this case the customer being the individual Districts. If repairs and/or replacements are not made in a timely manner, then the Water District shuts off the water meters until such repairs are made, which could result in highly stressed or dead landscaped areas along the parkways, medians and erosion control slopes. Further complicating the situation, with the adoption of Proposition 218, the maximum assessment amount has been limited to the lesser of two approved indexes. Over the last several years, this limitation has resulted in maximum assessment revenues that fail to meet the approved and necessary expenditure budgets in several districts. As a result, the fund reserves have slowly eroded below preferred levels ranging from 50% to 100%. This trend persists and corrective action is required. If property owners do not approve the recommended increase in assessment, budgeted maintenance expenditures for these Districts will need to be reduced. Public Education and Input At its meeting of May 22,2007, the City Council requested that staff look for ways to ensure that the importance of this effort and potential connection to fire suppression is communicated to impacted residents. Efforts were constrained due to the County Assessor's Property Tax deadlines and limited budgetary resources for these Districts. However, as a result of the City Council request, the pre-ballot informational flyers (see Attachment 2) were amended to specifically call out brush clearance for fire protection in Districts where this is applicable. The ballot was also revised similarly. Copies of the ballot packages are attached (see Attachment 3). Two drop-in clinics for community input and questions were held. Staff was available at these clinics to address any questions or concerns that the public may have. On June 27, staff was located at Salt Creek Recreation Center from 4 p.m. to 8 p.m. Seven community members visited to share their questions and comments. Staff assisted them with the various inquiries they had, as well as provided follow-up information as requested by the citizens. One letter was received (see Attachment 4). Staff communicated with this resident and this perspective will be accommodated should another ballot process be necessary at any time in the future. A "Frequently Asked Questions" handout for the next drop-in clinic was created based on these interactions as well as phone calls that had been received to date (see Attachment 5). The second drop-in date was July 19. This clinic was advertised through various Home Owner Association (HOA) web sites as well as community bulletin boards. A list of these HOA's can be found as Attachment 6. On this date, staff was located at Montevalle Recreation Center from 10 a.m. to 8 p.m. Only one member of the community participated in this outreach opportunity. Attachment 7 lists those members of the public who turned out for the drop-in clinics. In addition to the community outreach programs, staff was available through three public hotlines. These hotline numbers were advertised through the informational flyer that was 08/07/07, Item-12- Page 60f6 services, the City's Open Space Hotline was available, and for ballot proceeding and open space district information, NBS, the City's Special District Administrator, was available to take questions. A total number of 40 phone calls were received during the duration of the outreach and balloting process. Most of the questions that the public had, at either the drop-in clinics or over the hotlines, were pertaining to the maintenance activities that were currently occurring in their respective . District. Ballot Tabulation Proposition 218 requires that the City send the ballot materials to the current owner of record. The City mailed the ballot materials based on the most current database provided by the County of San Diego. During the week of June 18th a notice and ballot were mailed out to 6,993 properties. As of July 31 't, the Office of the City Clerk had received a total of 2,566 ballots. Of that total, 352 were unopened/returned ballots, meaning they were undeliverable to the current owner of record. Those ballots that were returned to the Office of the City Clerk by the close of this public hearing shall be tabulated by NBS the morning after this public hearing, due to the large volume and the time required to tabulate the votes. On August 14th, staffwill return to Council with a summary of the results for each district/zone and a resolution authorizing the new maximum assessment for those Districts that do not receive a majority protest. This resolution will be submitted to the County so that the new amounts can be levied in the current fiscal year. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no such holdings within 500' of the boundaries of the property which is the subject of this action. FISCAL IMPACT The full cost of providing maintenance services in these Districts totals $1,256, Ill. However, the current maximum assessment will only provide $672,056 in revenue; leaving a deficit of $584,055. This deficit amount would be eliminated if the ballot process is successful. ATTACHMENTS 1. District Maps 2. Informational Flyers 3. Ballot Packages 4. Letter from Resident 5. Frequently Asked Questions 6. HOA List 7. Community Outreach Attendance Sheet J:\EngineerIAGENDA\CAS2007\08-07-07\OSD Public Hearing.doc Prepared by: Tessa Quicho, Administrative Analyst II, Engineering Department 13-6 City of Chula Vista Open Space District 3- Rancho Robinhood Units 1 and 2 District 3 Maintenance Codes _ Irrigated Slope. _ Ornamental Plants D City Boundary -- I .open Space District --." ~,~ -6 mY Of QUA VISTA ClWll._IW.-AJloOlI<lrllllll . ~"1 c,..d'~' r;;;o.s ".~ . ~.--' ,-. .- '....0 "L.....=nr--<.......~_.,__..- ~ ~ n ~ ~ The Ostrict is coflllrised of 3_5 acres of irrigated slopes and 0.5 acres of omaITEntal plants. Current Services Maintenance consists in general of the following: . Brush dearance for fire protection . Irrigated erosion control slopes . Irrigation and fertilization . Rerroval of weeds, trash and litter . Pruning of trees and shrubs . Replacerrent of dead or diseased trees and shrubs . Repair of equipment and fadlities At Risk Services Antidpated service reductions orelirrinations: . Reduction or elimination of brush dearance far tire protection . No watering of irrigated slopes . Reduced tree trimming, fertilization and brush management . Sirrination of sprinkler, equipment and plant replacement . Increase in litter, trash and \'\eeds Potential RAte Increase This ye ar's (Fiscal Year 2007) annual rate tor your Open Space District was: $352.00 peryear or$29.33 a rronth Description of DIstrict The Dstrict indudes all otthe area bounded by the subdi\lision boundary tor Rancho Robinhood 1 and 2, and currently consists ot about 127 Parcels. The areas maintained by the District include, all of open space lot 115, slopes along Otay Lakes Road, Allen School Lane and certain other slopes The proposed maximum assessment for the upconing year (Fiscal Year 200B) is: $510.00 per year or$42.50 a rronth - City of Chula Vista Open Space District 7- Zenith Units 2, 3 and 4 District 7 Maintenance Codes _ Ornamental Plants D City Boundary -- I oOoen Space District __J' ~,~ ifftij art Of 0fJIA VISTA ~CJ*.(IlIOLUl<l/IolYlIlIll .'", '~T.:...r' .~-.J1')1 r'y.,.....v. -- -._ , t. ~~~~/J The area maintained by the District indudes the slopes along East Palomar Street. The Ostrict is COlTllrised of 0.6 acres of ornamental plants. Current Services Maintenance consists in general of the following: . Irrigation and fertilization . Rermval of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equipment and fadlities At Risk Services Antidpated service reductions orelirrinations: . Reduced tree trimming, fertilization and brush management . Birrination of sprinkler, equipment and plant replacement . Increase in litter, trash and Meds Potential Rllte Increase This ye ar's (Fiscal Year 2007) annual rate for your Open Space District was: $125.00 peryear or$10.42 a month Description of District The Dstrid: indudes all of the area bounded by the subdivision boundaries forthe Zenith II, III and IV Subdivisions and a.mentfy consists of about 104 parcels_ The proposed maximum assessrrentfor the upconing year (Fiscal Year 2008) is $174.00 per year or$14.50 a month City of Chula Vista Open Space District 9- EI Rancho del Rey Irrigated Slopes _ Non-lrrlgatedJPreS81V8 Slopes _TUrf D City Boundary -- . oOoen Space District __J' ~,~ ~ -- Q1'(Of QUA VISTA ()lOO.........:',.-_...,_.~I_ "'-<"r"PS1J' <""'" ....<,.."" 'S'< ,~~ ,',j { ~-"f 1""'.r 'i CI j j c9 ~ ~~'Ii-t_'""P_~"~--"''- The District isco~rised of 16.7 acres of irrigated slopes, 16.6 acres of non-irrigatedlpreserve slopes and 0.6 acres of tuff. Current Services Maintenance consists in general of the following: . Brush dearance for fire protection . Irrigated erosion control slopes . Irrigation and fertilization . MoWng of turf . Rerroval of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equipment and facilities At Risk Services Alltidpated service reductions orelimnations: . Reduction or elimnation of brush dearance for fire protection . No watering of irrigated slopes . Reduced rrowing and watering of turf . Reduced tree trimning, fertilization and brush management . Bimnation of sprinkler, eQuipment and plant replacement . Increase in litter, trash and V\eeds Potential Rate Increase This year's (Fiscal Year 2007) annual rate for your Open Space Dis:rict was: $162.00 peryear or$13.50 a rronth Description of District The Ostrict indude s all of the area bounded by the subdivision boundary for the EI Rancho del Rey, Unit No.5 Subdivision and aJrrently consists of about 384 parcels. The areas maintained by the Ostrict includes Lots A,B,C,D,G,H,l and the grass lined drainage channel. The proposed maximum assessment for the upcorring year (Fiscal Year 2008) is: $230,00 per year or $19.17 a month City of Chula Vista Open Space District 20- Rancho del Rey Zone 2 Non-Irrigated Slopes Non-lrrlgatedlPreserve Slopes Turf Ornamental Plants D City Boundary -- . .open Space District __01 ~,~ ~ (]1I'Of QUA VISTA CI<>Cll-..-e....-.lI0l\1YIJW "..JJS,' '" ~, ','-" ~;,---~,~ r /, _ " \'-1, r.:::J 1 ~~"L"^"A--"""~ Description of District The areas maintained by the Ostrid include SPA I, II and III and OJrrently consist of about 2,186 parcels. Current Services Maintenance consi&s in general of the following: . Irrigation and fertilization . Movo.ing of turf . Removal of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equipment and facilities At Risk Services Amidpated service reductions orelirrinations: . Reduced ITDWing and watering of turf . Reduced tree trimming, fertilization and brush management . Binination of sprinkler, equipment and plant replacement . Increase in litter, trash and v...eeds Potential Rate Increase This year's (Fiscal Year 2007) annual rate for your Open Space Oistrict 'rNaS $4.54 per year or $0.39 a month The District is cOrfllrised of 60 acres non-irrigated slopes, 47.9 acres of non-irrigated/preserve slopes, 0.04 acres of turf and 17 acres of omarrental plants. The proposed maximum assessment for the upcorring year (Fiscal Year 2008) is' $17.00 per year or$1.42 a month City of Chula Vista Open Space District 20- Rancho del Rey Zone 4 Irrigaled Slopes _ Non-Irrigated Slopes _Turf _ Ornamental Plants Deny Boundary -- , .open Space District __oil ~,~ ~ alYOF o-uA VISrA c;lOCllVMICI_~I_'nl,," . ".J'S~ ^,''-, q;. .:,xc'''' f" . t""'CJ ---1.{';. ..C;::' \<4..... .:.....' .,..;. -~lr-""L"\-~.__.-' Description of District The area maintained by the District indudes SPA I, Phase 1 and rurrently consists of about 27 parcels. The Ostrict is corrplised of 3.7 acres of irrigated slopes, 3.0 acres of non-irrigated slopes, 0.1 acres of turf and 4.7 acres of omarrental plants. Current Services Maintenance consists in general of the follOVoling: . Brush dearance for fire protection . Irrigated erosion control slopes . Irrigation and fertilization . MCM4ng of turf . Rerroval of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equiprrent and facilities At Risk Services Anticipated service reductions or elimnations: . Reduction or elimnation of brush dearance for fire protection . No watering of irrigated slopes . Reduced l'T'"lJWing and watering of turf . Reduced tree trimning, fertilization and brush management . Bimnation of sprinkler, equipment and plant replacement . Increase in litter, trash and ~eds Potential Rirte Increase This year's (Fiscal Year 2007) annual rate for your Open Space District was $24.00 per year or$2.00 a rmnth Th e proposed maximum assessrrent for the upcoming year (Fiscal Year 2008) is: $52,00 per year or $4 .33 a rmnth City of Chula Vista Open Space District 20- Rancho del Rey Zone 7 Irrigated Slopes Non-Irrigated Slopes _ Non-lrrlgatedlPreserve Slopes _Turf _ Ornamental Plants D City Boundary -- I .open Space District __J ~'ft. '-4 art Of <HAA VISli\. t:IO<:"VO<<I~JI9t4nj_ . t;.l-'.....f19l (S~~ JF ,^"",- CJ "'i...;,.-''YI.r''t.....______'"' Description of District The area maintained by the District indudes SPA III and portions of SPA I south of East"W Street and C1Jrrently consists of 1.217 parcels The Dstrict is corrprised of 7.5 acres of irrigated slope, 42.6 aaes of non-irrigated slopes, 110.77 acres of non-irrigated preserve slopes, 0.95 acres of turf, and 19,9 acres of ornamental plants Current Services Maintenance consisl:s in general of the following: . !:tush dearance for fire protection . Irrigated erosion control slopes . Irrigation and fertilization . MCJ'I.".4ng of turf . Re/llJval of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equiprrent and facilities At Ri$k Servtce$ Antidpated service reductions orelininations. . Reduction or elirrination of brush dearance for fire protection . No watering of irrigated slopes . Reduced rrowing and lMltering of turf . Reduced tree trimming, fertilization and brush management . 8imination of sprinkler, equipment and plant replacement . Increase in lilter, trash and ~eds Potential Rat. Incr.i1ISe Thisyear's (Fiscal Year 2007) annual rate for your cpen Space District was. $172.00per year or$14.33 a rronth The proposed maximum assessrrent for the upcoming year (Fiscal Year 2008) is. $339.00 peryear or$28.25 a rronth City of Chula Vista Open Space District 23- Otay Rio Business Park District 23 Maintenance Codes _ Ornamental Plants Deny Boundary -- I .open Space District __J ~l~ ~ <JIYOf 01UIA VISTA CWCllYllll:I_,_tnnllll ~t; -, 5...r'~:J " 11 " c::;J '-~ The area maintained by the District indudes open space tots and rredian landscaping wthin the OI:ay Rio Business Park, as well as the planted median on Main Street starting on Nirvana. Current Services Maintenance consists in general of the following: . Fertilization . Rerroval of weeds, trash and litter . Replacement of dead or diseased trees and shrubs . Repair and replacement of equipment and facilities At Risk Services Antidpated service reductions orelimnations: . Reduction or elirrination of irrigation and pruning of trees and shrubs . Reduced fertilization . Reduction or elinination of sprinkler. equipment and plant replacement . Increase in litter, trash and v.eeds PotendalRatelncrease This year's (Fiscal Year 2007) annual rate for your Open Space District was. $533.00 peryear or$44.42 a rronlh Description of District The Ostrict indudes all of the area bounded by the OI:ay Rio B.Jsiness Park. This District rurrently consists of about eight parcels. The proposed maximum assessment forlhe upcomng year (Fiscal Year 2008) is: $760.00 peryear or$63.33 a month The O'strict is cOfl1Jrlsed of 2_61 acres of omarrental plants. City of Chula Vista Open Space District Eastlake Maintenance District No1 Zone A Irrigated Slopes _Turf _ Ornamental Plants D City Boundary -- I .open Space District __J ~,~ ~ rnvOf OUAVISJj\ uoo........c I..-~n<ll'o IIIIUII 0' r"' 'i)f <'~ -1, c;J \ ~~---,~~-- The Osmct is cofTllrised of 0.9 acres of irrigated slopes, 2.0 acres of turt and 5.7 acres of omarrental plants. Current Services Maintenance consists in general of the following: . Irrigated erosion control slopes . Irrigation and fertilization . MoWng turf . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equipment and fadlities At Risk Services Antidpated service reductions or elirrinations: . Reduced rrowing and watering of turf . No watering ot irrigated slopes . Reduced tree trimming, fertilization and brush management . 8irrination of sprinkler, equipment and plant replacement . Increase in litter, trash and ...-.eeds Potential Rate Increase This year's (Fiscal Year 2007) annual rate for your Q:Jen Space District was: $12.30 peryearor$1.03 a month Deurlptlon of District The astrict is bounded by the areas colTlT'Only known as Eastlake Hills, Shores, Village Center and Business Center, as V\eU as the northern portion of Eastlake Greens and currently consis:s of about 2,410 parcels The proposed rnaximum assessrrent for the upconing year (Fiscal Year 2008) is $34.00 per year or$2.83 a rrnnth City of Chula Vista Open Space District Eastlake Maintenance District No1 Zone D ELMD Zone D Maintenance Codes Irrigated Slopes ~, Non-Irrigated Slopes _ Non-lrrigatedlPreserve Slopes _ Ornamental Plants o City Boundary -- I oOoen Space District __J' ~'f? ~ =<Jf <HJIA VISTA CIOOlI...-cI_AJ_lrlllAl c,~~ ,'- c;"...,-'-a f.u- 'r..-J ~ r:? .-\ "":V\,,~,,~<~ De$crlptlon of District The Ostrict is bounded by the areas corrm:mly known as Easl:lake Hills, Shores, Village Center and Business Center. as v.ell as the northern portion of Eastlake Greens and currently consists of about 523 parcels_ The Ostrict is corrprised of 9.2 acres of irrigated slopes, 2.0 acres of non-irrigated slopes, 6.2 acres of non-irrigated/preserve slopes and 2.2 acres of omarrental plants Current Services Maintenance consists in general of the following: . Brush dearance for fire protection . Irrigated erosion control slopes . Irrigation and fertilization . Removal of weeds, trash and litter . Pruning of trees and shrubs . Replacement of dead or diseased trees and shrubs . Repair of equipment and facilities At Risk Services Antidpated service reductions orelininations: . Reduction or elinination of brush dearance for fire protection . No watering of irrigated slopes . Reduced tree trimning, fertilization and brush management . E1irrination of sprinMer, equipment and plant replacement . Increase in litter, trash and Wleds Potential Rat. Increase This year's (Fiscal Year 2007) annual rate for your Open Space District was: $222.00 peryear or$18.50 a m:mth The proposed maximum assessment for the upconing year (Fiscal Year 2008) is $303.00 per year or$26.25 a month 2 - CJ -.: - en -- C Q)M (J - fa 0 c.Z (J) c: (I) c. o " O::J J: U '0, ~'.~~" c:. .-N .c"C o. _I: ~. CU'} O"~ .s:: ,,' c (J' l: fa 0:: o ~6 ~6 '10 '2jS!^ 21n40 anUah'l 4jJno::l 9LZ juawjJedaa cupaau!cU3 'l'15lh 'v1nH) JO Ill) ---- ""1."""" "lJ)f:" COMMUNITY PRIDE What does the annual levy provide? It is likely these changes will lead to a loss of plant material and the risk of fire could increase. The beauty-and, in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. clearing brush for fire protection . irrigating designated erosion control slopes . irrigating and fertiiizing removing weeds, trash and litter . pruning trees and shrubs replacing dead or diseased trees and shrubs . repairing equipment and facilities How much could the rates increase? Current maintenance includes the following: Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district This year's (Fiscal Year 200?) annual rate for your open space district was: $352.00 per year or $29.33 per month The maximum assessment for the upcoming year (Fiscal Year 2008) is proposed to be: $510.00 per year or $42.50 per month What's at risk and why? What's next? ~!i~ , 'Rancho; ~obinhood, '~ Resolution' ;"",,~~ If your district fails .to approve ar. ,inC[e~se, open space areas will noticeably investments and years of plant lost. Future restoration ':::<.. . ;':"- - ,'''''-'' "':;;".-,-_.' ;: Assessme'nt ballots ,will arrive In the mall , .,;,,', ':' ,.i,'.' . . .,' '> ;.,,;., '.',' ,,:: ':'the",week of June 18~"You ,may return your ",/'," ballot by mall or In person at the. Office' of ' )';,' , b!;,~,I!y',~lerk, be~ore,~~,?:c!p~e ~f,~[1 Ali9~st,. " .1" ,public, hearing on: the" ..proposed , "'~~:~i\t: :,5:;')/{' ,;y,..' "" ,:~<[. "',: '~'st 7 ~I" r~; h ,," Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To leam more, please read the following important infomnaUon. Look for the ballot that will soon arrive -' cdlthe mall. I -' '\ What is Open Space District No,3? Costs for labor, materials, supplies. water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves have been exhausted. Assessments must be increased to cover current costs and to begin replenishing depleted funds. - (J 'i: - en ,- C G)""" (J , ~ 0 o.Z (J) s::::: G) 0. o :::r.~'~ -.:t "C C .~. M' .....r .."., in - .- c ~. .J!.\ -: ._-. c G) N' 0.. , .;"'.'i;; o ~6 ~6 110 '2IS!A 21040 aouaMI 4\.100.:1 sa luaW\J2daa 6upaau!6u3 YJSIA VIllH:) JO lJl.) ---- ---- --L-- 7/\",," ~ COMMUNITY PRIDE What does the annual levy provide? How much could the rates increase? Current maintenance indudes the following: Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. . irrigating and fertilizing removing weeds, trash and litter pruning trees and shrubs . replacing dead or diseased trees and shrubs repairing equipment and facilities This year's (Fiscal Year 2007) annuai rate for your open space disbict was: $125.00 per year or $10.42 per month The maximum assessment for the upcoming year (Fiscal Year 2008) is proposed to be: $174.00 per year or $14.50 per month The beauty--and in some cases, the safety of these areas--is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. , What's at risk and why? What's next? 'j' Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To learn more, please read the following important information. Look for the ballot that will soon arrive c:J1 the mail. I Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. .. Assessment ballots will arrive In the mail .,:.the week of June 1B. You, may return your '. ballot by mail or in person at the Office of ';'" the City Clerk, before the close of an August . '.: ;'7! "'.: public'. hearing '. on : the proposed ,:,:;:a;~~~~J~'~~'~' c.' .J'.' " :.,J ' , .~. Augu~t 7 heari[]g, the ~ily Council will ....<.":!i'-~'.M~~~",:., .",'0"""-","1<' ..-c.,..,......'. '. ' 'Q,~~~~j~~t~,orah% . ~E1~~s:.'... an~ ~r,~tt~9L.;;,i:~;i,-:' r: , .~I~,d,; by ,'nler~.ste? ..>:. c' . .~ ,p.m. InJ;~~ntll " :t~::~~:~ii,{~i, ,~. _~'~i1:~,U;i\!;'~',~ail~t~:\~~:' .~, ;iUbli1:: hearing:: c< jhl~';:-\.vhether>;.~: '. {:L ,i,:~,t~~:..~~~,J.; ..... . If your district falls to approve an increase, op,en space areas will noticeably decline. Initial ., inv';'stments and years of plant growth could be lost. Future restoration"would be exp~nsive/and" labor intensive. ." ". U::J J: w - o 'i: - In ,- C (1)m o ' ca 0 c.Z en s:::: CI) c. o o ~6 ~6 \f~ 'ejs!^ eln4~ anua^\f 4jJno.:l sa juawjJedaa 6upaau!6u3 Y15I^ Y1I1HJ j() UIJ .,.,"'''' ?'/if:" ..~ ..; : COMMUNITY PRIDE What does the annual levy provide? Increase in litter, trash and weeds Current maintenance includes the following: It is likely these changes will lead to a loss of plant material and the risk of fire could increase. Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. . clearing brush for fire protection . irrigating erosion control slopes . irrigating and fertilizing mowing turf removing weeds, trash and litter How much could the rates increase? The beauty--and in some cases, the safety of these areas--is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. . pruning trees and shrubs replacing dead or diseased trees and shrubs repairing equipment and facilities ,',"'<' This years (Fiscal Year 2007) annual rate for your open space district was: $162.00 per year or $13.50 per month The maximum. asses~ment for the upcoming year (Fiscal Year200~) is R'oposed to be: 1-',", ,:' <;-.- " $230.00 peryear or $19.17 per month . Soon, you'll be asked to consider an increase in the annual levy assigned to your district To learn more, please read the following important infomiation. Look for the ballot that will soon arrive ($ the mail. I What's at risk and why? Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels.. of service. As a result, reserves are dwindling. Assessments must be increased to r ''l;cov~r,; current costs and to ,begin replenis~ing depleted funds. lr - (J 'i: - In ,- CO (1)N (J , ca 0 0..2 en c: CI) c. o "' ..~> ca ' ,,:' ~,"~.' <C ,.,"- :,-- ca N ... ,', .;".1- :,i{:~.:~:,. W c: ,_, "'" c: 0' o ~;!< Nc ca o ~6 ~6....:> 'ejS!A eln4:> SnUSA.... 4jJno:l SLZ lUSW1JedSa 6upsSU!6u3 VJ5I^ VlIlID JOUI) ---- ---- --~-- 'l)\~ ~.....'''... ....... -- COMMUNITY PRIDE What does the annual levy provide? It is likely these changes will lead to a loss of plant material and the risk of fire could increase. The beauty-and in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. clearing brush for fire protection irrigating and fertilizing mowing turf removing weeds, trash and liller pruning of trees and shrubs replacing dead or diseased trees and shrubs repairing equipment and facilities How much could the rates increase? Current maintenance includes the following: Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained. with monies you contribute to an open space district. This year's (Fiscal Year 2007) annual rate for your open space district was: $4.54 per year or $0.39 per month What's at risk and why? . . The maximum ,assessment for the up~oming year : (Fiscal Y,ear 2008)is propo~ed to be: ..$1ioo Per yearor.$,1.42 per month ~.:.. '<.i'i What's next? What is Open Space District No. 20, Zone 2, Rice Canyon Trail Area? Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, the reserves have been, exhausted. Assessments must be increased to cover current costs and to begin' rep!"niS,hing depleted funds. If your district fails to approve an incre,~.s,e, /:.i . open space areas will noticeably declipe:jnitiaL/,-,,," investments and years of plant grov;th.'cdDIPib. . ';?~'I~.~ttgt~~~, {~storation ~~!~a:",~:~:f~~~~~1"~)e~; '~~' .labpr,:',',1!t9!l~JY:e.~,:i~:~> - ~ ....""1,;<..0) 'W;~:j,,~l~~~'~) ",'1\; ~:~::,!:~0~,.~;;,,:;,;;;::t\>;:;:~~-("t,- .., '-"<;;'~;.i":':(.\~~ 7).,/::t 'l" <' , ):As~e~~ment 'ballots wi!i.arrlve' in the: ",ail ,,-:;, ., ~wej,k,of;Jime 18.Yc>u'-;';ay. relurri',your. , t~t~~~~~li~,pr, l~}ip~~~_$9~~ ~t:;~H~:21ff~eo~' . !. . bef 'he,clil~&o.fan~uilu~\i '.' Yw . arl ~rel ,;;t:~~,~.( pro..~~\~,~i:I :;' ,;-~tf" .,-~.,' "/;~( Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To leam more, please read the following important information. t.ook for the ballot that will soon arrive c;j, the mail. I 'f. .'.'.:'~:;:i~~;~f"'?"f~~!kV"";i'" .,. . Resolution.:1041 ,,'c.:" -:',', ::';':~b;.t.~trt, :1::_j;::?f";::J'~,;(i' :."....:':<....:..,,"",," -- o "i: -- en "- CO Q)N o " ns 0 c.z en c:: Q) c. o -- ?J ~i ~" u:;) . J: W ~.-~ - Q) en ns .c a.. <f>' < ";r:if, " -', "'~. .;:'::1,,- '::.:,.:i .~ .:~>;:;,? ";'~:'~~:;(' -' <( c.. en ~ ~' Q) c::, o N 0,6,6 V';) 'elS!^ eln4';) anua^v 4).'"0::1 9LZ luawlJedaa 6upaau!6u3 '1'151/\ 'v1nHJ .IO,W) ---- ""'b"'''' "lllf:" COMMUNITY PRIDE What does the annual levy provide? Increase in litter, trash and weeds Current maintenance indudes the following: It is likely these changes will lead to a loss of plant material and the risk of fire could increase. The beauty-and in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. . dearing brush for fire protection irrigating erosion control slopes . irrigating and fertilizing mowing turf removing weeds, trash and litter pruning trees and shrubs . replacing dead or diseased trees and shrubs repairing equipment and facilities How much could the rates increase? Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained. with monies you contribute to an open space district. This years (FisCal Year 2007) annual rate for your . open space district was: . Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To learn more, please read the following important ..i'fonnation. Look for the ballot that will soon arrive cb1 the mail. I What's at risk and why? _' '(' _;_-,,~the -rnaxirr1,UIT\'a5se5sqf~ntJot the_ upcoming year ';.:.(Fiscal Year 2008) is propeSI'd to be: ~ oi, :~~". . , ,;.,!' "" ' i"~";,, ,,",',,:-""i ,:,i'," . '"$5?,00 per yea'13r $4.33. per month . ,"',;'..-." . )i",'/ "<',:,J~~ /:' 'p':r, ',"';1:'-:,'. -"1P".( ',' .'.-",: Costs for labor, malerials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required ,),E3v~,ls "qf,,~~rvj~e. As a result, reserves are :,,,,, ,:;t ~"~dwindling. Assessments must be, increa~ed to cover current costs and to begin reple~ishi~g depleted funds. . '. ... (.) ~; U::J :I: U .- ~ ... tJ) .- CO Q)N (.) . co 0 C.z t/) C Q) C. o o ~6 ~6 II';) 'elS!^ e\n4';) anua^1I 4lJno~ 9Ll lUaWlJedaa 6upaau!6u3 VJSIA VlnH) JO AlD "''''u.... -'lll~ -~...; : COMMUNllY PRIDE What does the annual levy provide? Reduction of sprinklers, plants, equipment and facilities Increase in litter, trash and weeds Current maintenance includes the following: The beauty-and in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. . c1ealing brush for fire protection irligating erosion control slopes irrigating and fertilizing . mowing turf removing weeds, trash and litter . pruning trees and shrubs . replacing dead or diseased trees and shrubs . repailing equipment and facilities It is Iikeiy these changes will lead to a loss of plant material and the risk of fire could increase. Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an'open space district. How much could the rates increase? Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To leam more, please read the following important information. Look for the ballot that will soon arrive -' . c,dn the mall. I What's at risk and why This year's'(Fiscal Year 2007) annual rate for your open space distlict was: $1:72.00 per year or $14.33 per month ,', J:, , The maxh;,um assessmeni for the upcoming year ':\,,~' " (FiscafVear 2008)' is proposed to be: . .?f i:$~39;00'per ye~r~~ $~~25 pe~ month What's next? ~,.- '. What is Open Space District No. 20, Zone 7, SPA 3? Costs for labor, materials, supplies, water and electlicity have increased substantially, forcing districts to tap into reserves to provide required levels 'of service. As a -result, reserves are dwindling. Assessments must be increased to . . cover ~urrenl costs and to begin replenishing" , "depieted funds. "'''r ;.;q: .'_ ?'~.<:-:. "'. i . ',open'Sp~c~:l;:>i~tiJCt'i'!o:,~o,:Zone T SPA 3 was ,'.. kirrnesJD ...' . ".,.. ',;".' esoiy~o~ 15419:' ,,,,,'C';"- ,';'," - (.) .i:: - l/) .- OM (l)N (.) . ca 0 c.z en c (I) c. o ;1 O::J J: W ".-4 l/) l/) (I): " C':' .- l/) ;: ~~ aJ "'" o ~;\ ca' - o ~'"t ~~""- o ~6 ~6 '10 'ajS'A alOllO aouaA'I lljJOO:l 9Ll juawjJadaa 6upaau\6u3 VJSIA VTnHJ JO ILl) ---- ......U...'" 7/I'IY" .. ~ COMMUNITY PRIDE What does the annual levy provide? How much could the rates increase? Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. fertilizing removing weeds, trash and litter . replacing dead or diseased trees and shrubs repairing and replacing equipment and facilities An increase in the assessment would include an expansion in the scope of services to include irrigation and pruning of trees and shrubs. Current maintenance includes the following: This yea~s (Fiscal Year 2007) annual rate for your open space district was: $533.00 per year or $44.42 per month Soon, you'll be asked to consider an increase in' the annual levy assigned to your district. To leam more, please read the following important information. Look for the ballot that will soon arrive ~ cJn the mail. I Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. The maxir:num assessment for the upcoming year (Fiscal year 2008) is proposed tobe: $760.00 per. year or$63,33 per month . ',,~.,' The beauty-and in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. What's at risk and why? I"~::' What's next? q '''i j',.' .", . What is Open Space District No.23? i:;:' If your district fails to approve an increase, i.op~Q:pace areas will noticeably declin~. Initial investments and years of plant growth could' be lost. Future restoration would be expensive'and'. , labor intensive. . J " "';'''.~'.:.' . ,~::!",::.1',,:,:' ':,::~iC-:~~;i;:~~~~f~!~1fi~gt'~~~~~itJb:;{" <,,\:~/i'?}j} . ., Open Space',District;N....' " . ::~i~~~i:iig"."" ". ',~" (1) (J c n:s Cor- (1) - c 0- n:s ::! at: (1)_ ~ I/J n:so- ...Ie - I/J n:s w o z - CJ -- 'lJ, ~# U::J J: U _":,l~:':or O~6~6 v':) '8lS!A 81n4':) anuaAV 4l.1no.:l 9LZ lUaWl.l8daa 6upaau!6u3 'l'lSlA \IlnHJ JO \J,D ~~iJ~~ -?jl~ ... -- COMMUNITY PRIDE What does the annual levy provide? How much could the rates increase? The beauty--and in some cases, the safety of these areas--is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. . irrigating erosion control slopes irrigating and fertilizing . mowing turf pruning trees and shrubs . replacing dead or diseased trees and shrubs . repairing equipment and facilities This yea(s (Fiscal Year 2007) annual rate for your open space district was: $12.30 per year or $1.03 per month Current maintenance indudes the following: Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The maximum.Bssessment for. the upcoming year (Fiscal Year 2008) is proposed to be: $34.00 per year o~ $2.B3per month What's at risk and why? ';'i;',;' --:.,(, ,-~ What's next? Soon, you'll be asked to consider an increase in the annual levy assigned to your district To learn more, please read the following important information. Look for the ballot that will soon arrive c;;, the mail. I Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels.ot service. As a result, reserves are dwindling~ Assessments must ,be increased to cover current costs and to begin replenishing ,.<,~depleted funds: . "'..'-.,,,...,' '. ':;!'.;",.......,-:" ..,:..... .' .. .:.. '.:.. .,.Assessment ballots. will arrive In the mail ~::" ,"":':"'" ' ,; -:'. . '" . " '.' "'. . ,. '. '. ": -.:' ,'~, " '". ',:' the: week of June 18. You may'return your .'-.~";,,, ''':-:''; "" >- ,-' ':';;':' ' .'-~, .-<-,' ,k,;j,al\ot by mail or in person, ,at the Offi,ce of .....'e"_~.ll.. '." ;,,,"' . .. " . ,',.,'" :,.:. _ ',', ::.,. '" :',,'- ". -"'-" , , City Clerk, before,tHe.close of an. August,. ',. . .1\, )Ie'!: hea~~g; ':9n~;:;~~,:;:,,~~?POSed ',,:':', ... , If your district fails to approve av increllse, open space areas will noticeably da~iin,,: 'Initl~t' , y,.'--,.... "." !'-' investments and years of plant groWth'~ould:'b :.'- .,:.;_.,-""i':,",'1"");.j"-' . lost. Future restoration wAll . "Xpel'isive .!ill" ':i;!'~\;i~'b~tihtensive.' -,,-- - .. ". 'c'~ f"" (1) o C cu CT"" (1) " cO "_Z cu_ :EO "i: (1)_ ...lI::tn CU"- ...JC - tn cu W -- ~ ~, ,;t U:;) J: W o ~6 ~6 V'J 'elS!^ eln4'J anUaAV 4J.JnO;l 9a luawlJedaa 6upaau!6u3 VlSIA YlnHJ ,.IO.W) ---- ""\''''' -1)\~ -.. -- COMMUNITY PRIDE What does the annual levy provide? It is likely these changes will lead to a loss of plant material and the risk of fire couid increase. Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beaut~ul landscaping, fences, walls and monument signs in these public areas are maintained. with monies you contribute to an open space district. . clearing brush for fire protection irrigating erosion control slopes irrigating and fertilizing removing weeds, trash and liller pruning trees and shrubs . replacing dead or diseased trees and shrubs repairing equipment and facilities How much could the rates increase? Current maintenance includes the following: This year's (Fiscal Year 2007) annual rate for your open space district was: $222.00 per year or $18.50 per month The beauty-and in some cases, the safety of these areas-is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. The maximum assessment for the. upcoming year (Fiscal Year 2008) is proposed to be: $303.00 per year or $25.25 per month '.: c.),,, ";.,," _.:,:.~. ; ..,.", What's at risk and why? ('{W !:d~\: What's next? What is EastLake maintenance District No, 1, Zone D? Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves, are dwindling. Assessments must be increased to cover current costs and to begin replenishing ge~leted}~nds, . "'iJ__" "1. " . :L~':iu~-~~~~m~~t',;.ba'i~,:~;;'i'~i'L-'~rrl~e, 'in.' the: mail . '_1'<'."-"','-",::".;'::, ".:-,"'" ''''''''\,,''''; _', '?'.. '--",Y-. .... . ':('th& ",eek of' June 18.:;;Vou' m~y! return: your "'~;~y.:.:naii or In. ~e'r~on;~\.the\qtilceOf\: . .., k.; bef!>re:ttl.e ,,1c~sM)f:an;August . .. ea 'on .'Llhe.,. propose Soon, you'll be asked to consider an increase in the annual levy assigned to your district. To learn more, please read the following important information. Look for the ballot that will soon arrive cJn the mail. I .ii'.:,"'" If your district fails to approve an'.inc~ea~e, . open space areas will noticeably deW~e1! Ihilial<.... investments and years of plant gro"4~.c9uJ~Jqe::;,:.'. -- ,".- ..>. ,. _ ,:.,.. ,.' ,_~.,..,. It losl. Future restoration wou "RenfIY"::;!); ""-:F...,'_".':C - - "'';' ~ ->::;:;.".:"," ~., ,. ATTACHMENT ~ NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO.3, RANCHO ROBIN HOOD 1 AND 2 As of June 11,2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fuliy fund the estimated increased cosls of maintaining natural open space, green belt and slopes aiong major and collector roads, including the maintenance of ali trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No.3, Rancho Robinhood 1 and 2. 2. Amount. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $64,770.00. The increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to ali owners within the District, the foliowing method of apportionment has been used. The assessment has been spread equaliy among the 127 parcels lying within the district. The determination of benefit takes into account that ali lots within OSD No.3 will receive an equitable special benefit. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated Caiifornia Fourth Quarter Per Capita Personal Income as contained in the Governor's budget pubiished in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates wili increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hali Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on AUQust 7, 2007 sDecified above. The ballots will be weighted according to the proportional financiai obligation of the affected properties. If the baliots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-34 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO.3. RANCHO ROBIN HOOD 1 AND 2 Current Condition Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Clearing brush for fire protection . Irrigating designated erosion control slopes . Irrigating and fertilizing . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of brush clearance for fire protection . No watering of irrigated slopes . Reduced fertilization, tree trimming and brush management . Reduction or no replacement of sprinklers, equipment, facilities and plants . Increase in litter, trash and weeds As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-35 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO.3, RANCHO ROBINHOOD 1 AND 2 Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Totai Fiscai Year 2007/08 District Maximum Assessment: $46,341.03 Total Fiscal Year 2007/08 Proposed Maximum Assessment: $64,770.00 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to compiete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE 'XXXX-XXX-XX-XXXXY' 'XXXX-XXX-XX-XXXXN' The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mall or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-36 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO.7, ZENITH UNITS 2, 3, & 4 As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No.7, Zenith Units 2,3, and 4. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $18,096.00. The increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. The assessment has been spread equally among the 104 parcels lying within the district. The determination of benefit takes into account that all lots within OSD NO.7 will receive an equitable special benefit. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance It can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner In the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on AUQust 7. 2007 specified above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-37 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO.7, ZENITH UNITS 2, 3, AND 4 Current Condition Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Irrigating and fertilizing parcels . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities . Increase in litter, trash and weeds. As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-38 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO.7, ZENITH UNITS 2, 3, AND 4 Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the fOllowing proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel Is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change In estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment $13,502.32 Total Fiscal Year 2007/08 Proposed District Maximum Assessment $18,096.00 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. . TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE 'XXXX-XXX-XX-XXXXY' 'XXXX-XXX-XX-XXXXN* The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-39 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO.9, EL RANCHO DEL REY, UNIT NO.5 As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and siopes aiong major and collector roads, inciuding the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No.9, EI Rancho Del Rey, Unit No.5. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $88,320.00. The increase in the maximum assessment for your property Is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. The assessment has been spread equally among the 384 parcels lying within the district. The determination of benefit takes into account that all lots within OSD NO.9 will receive an equitable special benefit. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be ievied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materiais, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit the Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on Auaust 7. 2007 sDecified above. The ballots will be weighted according to the proportionai financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-40 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO.9, EL RANCHO DEL REV, UNIT NO.5 Current Condition Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Clearing brush for fire protection . Irrigating erosion control slopes . Irrigating and fertilizing . Mowing turf . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of brush clearance for fire protection . No watering of irrigated slopes . Reduced mowing and watering of turf . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities . Increase in litter, trash and weeds. As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-41 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO.9, EL RANCHO DEL REV, UNIT NO.5 Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment: $64,546.56 Total Fiscal Year 2007/08 Proposed District Maximum Assessment: $88,320.00 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to seiect in favor or to oppose. The Property Owner shown above seiects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE 'XXXX-XXX-XX-XXXXY' 'XXXX-XXX-XX-XXXXN' The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-42 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO. 20, ZONE 2, RICE CANYON TRAIL AREA As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fuliy fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and coliector roads, including the maintenance of ali trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No. 20, Zone 2, Rice Canyon Trail Area. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $67,309.46. The Increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to ali owners within the District, the foliowing method of apportionment has been used. An equivalent dweliing unit (EDU) factor based on recreational use was established and uses as a base a standard population factor for a residential household. This factor is then related to the population per acre of non-residential land uses based on numbers derived from San Diego Traffic Generators, July 1988, SANDAG/CALTRANS. The factors are: Residential-1 EDU per dweliing unit, Commerciai-15 EDU per acre and Business Park-40 EDU per acre. The proposed maximum assessment shali increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area AIi Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actualiy levied each year (assessments may be levied at less than the maximum rate), the maximum aliowable rates wili increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment wili be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7,2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hail Council Chambers, 276 Fourth Avenue, Chula Vista, California to take pubiic testimony, hear protests, tabuiate the Assessment Baliots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Baliot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7,2007 in Section 4 above. To do so, the owner must: mark the Baliot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand deiivered or mailed to the City Cierk at the City's address shown on the Assessment Ballot using the enclosed enveiope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on AUQust 7. 2007 sDecifled above. The baliots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase wili not occur. However the previously approved assessment will not be affected and will continue to be ievied. The baliot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, Caiifornia. To get additional information about the assessments or the City of Chula Vista Speciai Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-43 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO. 20, ZONE 2, RICE CANYON TRAIL AREA Current Condition Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Clearing brush for fire protection . Irrigating and fertilization . Mowing turf . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of brush clearance for fire protection . Reduced mowing and watering of turf . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities . Increase in litter, trash and weeds As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-44 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO. 20, ZONE 2, RICE CANYON TRAIL AREA Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscai Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment: $18,569.37 Total Fiscal Year 2007/08 Proposed District Maximum Assessment: $67,309.46 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behaif of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE 'XXXX-XXX-XX-XXXXY' 'XXXX-XXX-XX-XXXXN* The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessmentbaHot Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-45 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO. 20, ZONE 4, SPA 1, PHASE 1 As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No. 20, Zone 4, SPA 1, Phase 1. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $135,329.53. The increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. An average daily traffic (ADT) factor has been assigned to each iand use type. To compare traffic generation across different land types, ADTs are converted to Equivalent Dwelling Units (EDU) with a single family detached unit having a base EDU of 1. Other land uses are factored upon the base EDU: Single family attached-0.8 per unit, Multi-family-0.6 per unit, Employment park-30 per acre, Commercial-40 per acre, and Church-1 per acre. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actually ievied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the ievei of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Councii will hoid a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabuiate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 In Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on Auaust 7. 2007 sDecifled above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the bailots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chuia Vista, California. To get additional information about the assessments or the City of Chuia Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11 , 2007 City Cierk City of Chula Vista 13-46 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO. 20, ZONE 4, SPA 1, PHASE 1 Current Condition Potential I! Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas.. is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Brush clearing for fire protection . Irrigating erosion control slopes . Irrigating and fertilizing . Mowing turf . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of brush clearance for fire protection . No watering of irrigated slopes . Reduced mowing and watering of turf . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities . Increase in litter, trash and weeds. As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-47 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO. 20, ZONE 4, SPA 1, PHASE 1 Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Pi ease mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment: $64,827.92 Total Fiscal Year 2007/08 Proposed District Maximum Assessment: $135,329.53 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE *XXXX-XXX-XX-XXXXY* *XXXX-XXX-XX-XXXXN* The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-48 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO. 20, ZONE 7, SPA 3 As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of Open Space District No. 20, Zone 7, SPA 3. 2. Amounts. For the Fiscal Year 2007/08 the proposed Increased maximum assessment for the whole District Is estimated to be $398,931.47. The increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. An average daily traffic (ADT) factor has been assigned to each land use type. To compare traffic generation across different land types, ADTs are converted to Equivalent Dwelling Units (EDU) with a single family detached unit having a base EDU of 1. Other land uses are factored upon the base EDU: Single family attached-0.8 per unit, Multi-family-0.6 per unit, Employment park-30 per acre, Commercial-40 per acre, and Church-1 per acre. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change In estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied Into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7,2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on AUClust 7. 2007 sDecified above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-49 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO. 20, ZONE 7, SPA 3 Current Condition Potential If Baliot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Clearing brush for fire protection . Irrigating erosion control slopes . I rrigating and fertilizing parcels . Mowing turi . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of brush clearance for fire protection . No watering of irrigated slopes . Reduced mowing and watering of turi . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities . Increase in litter, trash and weeds As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-50 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO. 20, ZONE 7, SPA 3 Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscai Year 2007/08 Existing District Maximum Assessment $209,880.31 Total Fiscal Year 2007/08 Proposed District Maximum Assessment $398,931.47 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to compiete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is iegally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE *XXXX-XXX-XX-XXXXY* *XXXX-XXX-XX-XXXXN* The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessmentbaHot Signature of Property Owner Printed Name Upon completion place the assessment ballot In the return envelope and mall or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-51 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA OPEN SPACE DISTRICT NO. 23, OTAY RIO BUSINESS PARK As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or pi aced within said open space area within the boundaries of Open Space District No. 23, Otay Rio Business Park. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $68,445.60. The increase In the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. The method of apportioning the special benefit, and thus the cost of the maintenance, is based on the estimated traffic generated by each parcel. An average daily traffic (ADT) factor has been assigned to each land use type and these factors are used to estimate the traffic generated by each parcel. The District contains only industrial parcels, therefore, the total ADT for each parcel is directly proportional to the gross area of the parcel. Each gross acre of land is equivalent to one equivalent dwelling unit (EDU). The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personai Income as contained in the Governor's budget published in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7,2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed enveiope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on Auaust 7. 2007 sDecifled above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase. weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue. Chula Vista. California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-52 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION OPEN SPACE DISTRICT NO. 23, OTAY RIO BUSINESS PARK Current Condition r?'~-j:~\ r4 - ~ t. . ., ,,' 1, ,.' :', ....-I -, ., :1."., ,_.." . ".' ~.~ '~j. i \-,,< " ~. I' ',' '" / . Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Fertilizing . Removing weeds, trash and litter . Replacing dead or diseases trees and shrubs . Repairing replacement of equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduction or elimination of irrigation and pruning of trees and shrubs . Reduced fertilization . Reduction or elimination of sprinkler equipment and plant replacement . Increase in litter, trash and weeds As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-53 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT OPEN SPACE DISTRICT NO. 23, OTAY RIO BUSINESS PARK Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment: $49,696.87 Total Fiscal Year 2007/08 Proposed District Maximum Assessment: $68,445.60 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE 'XXXX-XXX-XX-XXXXY' 'XXXX-XXX-XX-xxxxw The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mall or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. 13-54 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE A As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that: 1. Purpose. The City is proposing to adjust the assessments in the above District that inciudes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and siopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of EastLake Maintenance District No.1, Zone A. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $286,619.41. The increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. Each land use was assigned a trip generation factor derived from trip generation rates by land use as they related to a single family residentiai land use. The land use factor is multipiied by the number of dwelling units if the iand use is residentiai, or the number of acres for other land uses. The product of this muitiplication is the number equivalent dweliing units (EDU) for each parcel to be assessed. The sum of all the EDU is divided into the total budget to arrive at the amount of each EDU. The amount of the EDU is then multiplied by the number of EDU for each parcel to estabiish the annual assessment charge for a particular lot or parcel of land. The proposed maximum assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropoiitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardiess of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of labor, materials, suppiies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the level of maintenance it can provide, thus jeopardizing the quaiity and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7,2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take public testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 in Section 4 above. To do so, the owner must: mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand delivered or mailed to the City Clerk at the City's address shown on the Assessment Bailot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on AUllust 7. 2007 specified above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, California. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-55 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE A Current Condition Potential If Bailot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the following services: . Irrigating erosion control slopes . Irrigating and fertilizing . Mowing turf . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the following changes: . Reduced mowing and watering of turf . N6 watering of irrigated slopes . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-56 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE A Name and address of record owner: OWNER ADDRESS CITY. STATE. ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment $107,308.38 Total Fiscal Year 2007/08 Proposed District Maximum Assessment $286,619.41 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE *XXXX-XXX-XX-XXXXY* *XXXX-XXX-XX-XXXXN* The undersigned certifies under penalty of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot In the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the Instructions enclosed with this assessment ballot. 13-57 NOTICE OF PROPOSED ASSESSMENT INCREASE CITY OF CHULA VISTA EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE D As of June 11, 2007, THE CITY OF CHULA VISTA GIVES NOTICE that 1. Purpose. The City is proposing to adjust the assessments in the above District that includes your property. The purpose of the adjustment is to fully fund the estimated increased costs of maintaining natural open space, green belt and slopes along major and collector roads, including the maintenance of all trees, shrubs, plants, etc., planted or placed within said open space area within the boundaries of EastLake Maintenance District No.1, Zone D. 2. Amounts. For the Fiscal Year 2007/08 the proposed increased maximum assessment for the whole District is estimated to be $128,290.20. The Increase in the maximum assessment for your property is set forth in the accompanying Assessment Ballot. The method of apportionment of the assessments and any provisions for their increase in the future are discussed below. Please read this Notice carefully. 3. Method of Spread of Assessment. In order to provide an equitable assessment to all owners within the District, the following method of apportionment has been used. Each land use was assigned a trip generation factor derived from trip generation rates by land use as they related to a single family residential land use. The land use factor is multiplied by the number of dwelling units if the land use is residential, or the number of acres for other iand uses. The product of this multiplication is the number equivalent dwelling units (EDU) for each parcel to be assessed. The sum of all the EDU is divided into the total budget to arrive at the amount of each EDU. The amount of the EDU is then multiplied by the number of EDU for each parcel to establish the annual assessment charge for a particular iot or parcel of land. The proposed maximum assessment shall increase or decrease by an infiation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. Regardless of the amounts actually levied each year (assessments may be levied at less than the maximum rate), the maximum allowable rates will increase as described above. Any Increase in the actual amount of the assessment levied, as long as it does not exceed the maximum assessment for that fiscal year, will not be considered an increase of the assessment as defined by Proposition 218. The assessment will be levied into perpetuity. Currently, assessments cannot be increased by the City to pay for the increased costs of iabor, materials, supplies, electricity, and water. Without the ability to increase assessments, it may be necessary for the District to reduce the ievel of maintenance it can provide, thus jeopardizing the quality and appearance of the open space areas. The District is requesting the ability to increase the current Maximum Assessment within the District. 4. Public Hearing. On August 7, 2007 at 4:00 p.m., the City Council will hold a PUBLIC HEARING at City Hall Council Chambers, 276 Fourth Avenue, Chula Vista, California to take pubiic testimony, hear protests, tabulate the Assessment Ballots, and take final action on the levy of the assessments for Fiscal Year 2007/08. 5. Ballot. At or before the end of the PUBLIC HEARING in Section 4 above, any property owner in the District may submit an Assessment Ballot, which is enclosed with this Notice, to the City Clerk. All Ballots must be received prior to the conclusion of the Public Hearing on August 7, 2007 In Section 4 above. To do so, the owner must mark the Ballot either "In Favor of Maximum Assessment Increase" or "Oppose Maximum Assessment Increase;" and sign it. Any Ballots returned and not marked or signed will be rejected and not counted. The Ballots may be hand deiivered or mailed to the City Clerk at the City's address shown on the Assessment Ballot using the enclosed envelope. To be counted, a Ballot must be received by the City Clerk not later than the end of the PUBLIC HEARING on Auaust 7. 2007 specified above. The ballots will be weighted according to the proportional financial obligation of the affected properties. If the ballots submitted in opposition to the assessment increase exceed the ballots submitted in favor of the increase, weighting those assessment ballots by the amount of the proposed assessment to be imposed, the increase will not occur. However the previously approved assessment will not be affected and will continue to be levied. The ballot affects only the proposed adjustment and not the existing assessment. 6. Information. The Engineer's Report and other written material about the Open Space District may be reviewed at the City Clerk's Office, 276 Fourth Avenue, Chula Vista, Caiifornia. To get additional information about the assessments or the City of Chula Vista Special Tax Districts Information Line: (619) 585-5708. Dated as of June 11, 2007 City Clerk City of Chula Vista 13-58 CITY OF CHULA VISTA ASSESSMENT BALLOT INFORMATION EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE D Current Condition Potential If Ballot Fails Open space in your community contributes to the outstanding quality of life Chula Vista residents enjoy. Beautiful landscaping, fences, walls and monument signs in these public areas are maintained with monies you contribute to an open space district. The beauty-- and in some cases, the safety of these areas-- is at risk. Costs are outpacing revenues, and open space districts are struggling to cover expenses. Currently your district receives the fOllowing services: . Clearing brush for fire protection . Irrigating erosion control slopes . Irrigating and fertilizing . Removing weeds, trash and litter . Pruning trees and shrubs . Replacing dead or diseased trees and shrubs . Repairing equipment and facilities Costs for labor, materials, supplies, water and electricity have increased substantially, forcing districts to tap into reserves to provide required levels of service. As a result, reserves are dwindling. Assessments must be increased to cover current costs and to begin replenishing depleted funds. If your district fails to approve an increase, open space areas will noticeably decline. Initial investments and years of plant growth could be lost. Future restoration would be expensive and labor intensive. With no increase in the assessment, residents can expect the fOllowing changes: . Reduction or elimination of brush clearance for fire protection . No watering of irrigated slopes . Reduced tree trimming, fertilization and brush management . Reduction of sprinklers, plants, equipment and facilities As a result of these changes, vegetation will be lost and the risk of fire could increase. 13-59 CITY OF CHULA VISTA OFFICIAL ASSESSMENT BALLOT EASTLAKE MAINTENANCE DISTRICT NO.1, ZONE D Name and address of record owner: OWNER ADDRESS CITY, STATE, ZIP Parcel Identification: XXX-XXX-XX-XX Please mark your support or opposition to the following proposed maximum assessment increase: Fiscal Year 2007/08 Existing Maximum Assessment for your parcel is: $01d0708 Fiscal Year 2007/08 Proposed Maximum Assessment for your parcel is: $new0708 The future Maximum Annual Assessment shall increase or decrease by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January: Total Fiscal Year 2007/08 Existing District Maximum Assessment: $97,383.66 Total Fiscal Year 2007/08 Proposed District Maximum Assessment: $128,290.20 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be the record owner of the property identified above or the representative of the record owner of such property who is legally authorized to complete and submit this ballot for and on behalf of the record owner. THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE CERTIFICATION BELOW IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BALLOT. TO BE COUNTED, A BALLOT MUST BE RECEIVED BY THE CITY CLERK NOT LATER THAN THE END OF THE PUBLIC HEARING ON AUGUST 7, 2007. ASSESSMENT BALLOT: Please place an X (in ink) in one of the boxes below to select in favor or to oppose. The Property Owner shown above selects one of the following: D IN FAVOR OF ASSESSMENT INCREASE D OPPOSE ASSESSMENT INCREASE *XXXX-XXX-XX-XXXXY* *XXXX-XXX-XX-XXXXN* The undersigned certifies under penally of perjury that he/she is entitled to complete and submit this assessment ballot. Signature of Property Owner Printed Name Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the Instructions enclosed with this assessment ballot. 13-60 JUl - Ii 2001 R~C~", qvE:D -111~ ATTACHMENT ~ Mayor and Council Members City ofChula Vista, California July 02,. 2007 Re: Notice of Pr osed.Assessment Increase,. City of Chula Vista,. Open Space District No. 20, Zone 2, e Canyon Trail Area With all due resp t, exception is made to the above referenced Notice. The exception is made to the mann in which the City is telling property owners that more revenue is needed. A threat 0 reduction of mandatory service to areas where the City, clearly, has primary responsibility does not set well. Certain questions arise that should be answered before returning the requested ballot. If the Fire Marshal declares an area has a fire hazard, who corrects the situation? Nature Preserves must be maintained by the City, such as the case in District 20_ If there is a code violation, such as excessive trash in an area, who is served with the citation? Certain areas are the responsibility of the City. Is the City telling property owners that neighborhood parks, parkways, city facilities, equipment, trees, etc. will not be maintained if an increase of assessment is opposed? The increase in an assessment could be understood better if it was simply stated that this special district has the. ne.edfor more. money, due to increase of costs.. Using. public funding for several expensive mailings and threatening to reduce or cut off services is unacceptable. It is hoped that this Notice is not an example offuture communications from the City. Please explain where reference material may be found to research subjects which City Officials feel the general public should be informed_ The City of Chula Vista's web site does not seem to cover these complicated issues.o Your attention to this matter is greatly appreciated. W/?-' Michael C. Cronin v_v II c --- Chula Vista, CA 91910 13-61 o <:) ~ o z <( ,G15 ;-... (:l' I -J z. ,.;}. --; f~' (:l' ;';', 0 - 'S' ~ e '" u 25 ~ .ii! 5 I .~ tn i ;10 ;> I f~ .g ".J'.~ ';10 0 ,; :~ - j 1"". - -- .- # ~ -~ ~v ~ 0'V ~ '- -- '- - ~ AI:! ~ ~ .- .-- == .- <) "' r}.. ::::: .- ...... 0... , ..J l-u 't1- - :::. " () "t U ~ ~ ~ f' <j 1.J. I/J -\l.~~ ~4:~ >:: ..J 't -..D ~ ~f'.Z ,,~ ~ '- -- .t.'" 1") 1,fl (':1 +- c' .,-1 I'l~ ..... IT' 13 62 ATTACHMENT OPEN SPACE DISTRICT 3 Rancho Robinhood Units 1 &. 2 .S - FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budget 3 $ 52,560 $ 64,711 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 3 $ 352.90 $ 364.90 $ 510.00 13-63 OPEN SPACE DISTRICT 7 Zenith Units 2, 3, 4 FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budget 7 $ 14,121 $ 18,087 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 7 $ 125.57 $ 129.84 $ 174.00 13-64 OPEN SPACE DISTRICT 9 EI Rancho Del Rey FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budget 9 $ 73,915 $ 88,055 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 9 $ 162.57 $ 168.10 $ 230.00 13-65 OPEN SPACE DISTRICT 20, Zone 2 Rice Canyon Trail Area FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budget $ 20 Zone 2 35,213 $ 64,482 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 20 Zone 2 $ 4.54 $ 4.69 $ 17.00 6. Why am I in multiple Zones? During the formation proceedings of each Zone, boundaries were established that identified parcels that received special benefit from that particular Zone's improvements and services provided. As a result of Prop. 218, all property owners within the proposed boundaries receive the "right to vote on taxes" which allowed them to vote on whether or not the Zone should be created. It is pOSSible for property owners to be in multiple Zones if they receive special benefit from each Zone. Each Zone's assessment is going towards different land5f~l2i'6% maintenance activities and services that are unique to that Zone. OPEN SPACE DISTRICT 20, Zone 4 SPA 1, Phase 1 (Business Center) FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budaet 20 Zone 4 $ 74,287 $ 134,594 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 20 Zone 4 $ 24.10 $ 24.92 $ 52.00 6. Why am I in multiple Zones? During the formation proceedings of each Zone, boundaries were established that identified parcels that received special benefit from that particular Zone's improvements and services provided. As a result of Prop. 218, all property owners within the proposed boundaries receive the "right to vote on taxes" which allowed them to vote on whether or not the Zone should be created. It is possible for property owners to be in multiple Zones if they receive special benefit from each Zone. Each Zone's assessment is going towards different landscaping maintenance activities and services that are unique to that Zone. 13-67 OPEN SPACE DISTRICT 20, Zone 7 SPA 3 FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space Distrip: has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIII D) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budaet 20 Zone 7 $ 267,561 $ 398,347 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment 20 Zone 7 $ 172.49 $ 178.35 $ 339.00 6. Why am I in multiple Zones? During the formation proceedings of each Zone, boundaries were established that identified parcels that received special benefit from that particular Zone's improvements and services provided. As a result of Prop. 218, all property owners within the proposed boundaries receive the "right to vote on taxes" which allowed them to vote on whether or not the Zone should be created. It is possible for property owners to be in multiple Zones if they receive special benefit from each Zone. Each Zone's assessment is going towards different landscaping maintenance activities and services that are unique to that Zone. 13-68 OPEN SPACE DISTRICT 23 Otay Rio Business Park FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 050 Budget Proposed Budget 23 $ 60,331 $ 68,448 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed 050 Max Max Max Assessment Assessment Assessment 23 $ 533.68 $ 551.82 $ 760.00 13-69 EASTLAKE MAINTENANCE DISTRICT NO.1 Zone A - Eastlake I FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budaet ELMD Zone A $ 123,753 $ 286,659 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment ELMD Zone A $ 12.87 $ 13.31 $ 34.00 6. Why am I in multiple Zones? During the formation proceedings of each Zone, boundaries were established that identified parcels that received special benefit from that particular Zone's improvements and services provided. As a result of Prop. 218, all property owners within the proposed boundaries receive the "right to vote on taxes" which allowed them to vote on whether or not the Zone should be created. It is possible for property owners to be in multiple Zones if they receive special benefit from each Zone. Each Zone's assessment is going towards different landscaping maintenance activities and services that are unique to that Zone. 13-70 EASTLAKE MAINTENANCE DISTRICT NO.1 Zone D - Salt Creek I FREQUENTLY ASKED QUESTIONS 1. Will the revenues collected from the homeowners ever be used to fund other City services or the general fund? No. Each Open Space District has it's own account and the funds we receive from the County are deposited in these separate accounts. The funds in these accounts can only be used for each particular District. The funds are not commingled with any other District or City fund. 2. Who do I contact to request general maintenance of the landscaping or if work is needed in my area? Please contact the Open Space Hotline at: (619) 397-6016 3. What is Proposition 218? Proposition 218 is an amendment to the California Constitution (Articles XIIIC and XIIID) which, as it relates to assessments, requires the local government to have a vote of the affected property owners for any proposed new or increased assessment before it could be levied. California voters passed Proposition 218, the "Right to Vote on Taxes Act" in November 1996. In this case, we are asking residents to consider an increase in their annual levy in order to cover current costs so that service levels can continue to be maintained and to replenish depleted funds. 4. What is the budget for my District? FY 2006-07 FY 2007-08 OSD Budget Proposed Budget ELMD Zone D $ 103,799 $ 128,320 5. What is the maximum assessment for my District? FY 2006-07 FY 2007-08 FY 2007-08 Proposed OSD Max Max Max Assessment Assessment Assessment ELMO Zone 0 $ 222.45 $ 230.01 $ 303.00 6. Why am I in multiple Zones? During the formation proceedings of each Zone, boundaries were established that identified parcels that received special benefit from that particular Zone's improvements and services provided. As a result of Prop. 218, all property owners within the proposed boundaries receive the "right to vote on taxes" which allowed them to vote on whether or not the Zone should be created. It is possible for property owners to be in multiple Zones if they receive special benefit from each Zone. Each Zone's assessment is going towards different landscaping maintenance activities and services that are unique to that Zone. 13-71 ATTACHMENT L Homeowner's Association List N. N Jaeschke Various HOA's in Rancho Del Rey lk Eastlake Aspire-Encore at Rancho Del Rey HOA Augusta Place Homeowners Assoc Chula Vista Canyon View Community Cortina at the Summit Fairway Villas @ Eastlake Green Assoc La Vida at Eastlake Greens Assoc Masters Collection at Eastlake Greens HOA Mantilla at Terra Nova HOA Sanibelle Condominium Assoc Summit at Eastlake Community Assoc Tiara at Rancho Del Rey Condominium Assoc Treviana @ Lomas Verdes HOA Villa de Anita Owners Assoc Villagio @ Lomas Verdes HOA Woodland Hills Merit ProDerties Portions of Eastlake Eastlake "3" Woods/VistasjTrails Sudberry ProDerties Portions of Eastlake Bonita Pt. Plaza (Ralphs at Otay Lakes and East H St) Eastlake Village Market Place (Lowe's shopping Center) Eastlake Business Owners Association (Scoby Park) Village Walk (Petco, Trophys, etc.) Walters Manaaement Portions of Eastlake Eastlake "1" Hills/Shores 13-72 ATTACHMENT if Community Outreach Attendance Sheet Wed., June 27, 2007 1. Jim Williams 2. Pete Conrow 3. Michael Cronin 4. Susan Cronin 5. Roger Cady 6. David Krogh 7. Alan Stancliff Thurs., July 19, 2007 1. Glenda S. Heard 13-73 CITY COUNCIL AGENDA STATEMENT ~!0::. CITY OF '~CHULA VISTA Item:~ Meeting Date:08/7/07 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ESTABLISHING CONDITIONS OF A TENTATIVE MAP TO DIVIDE INTEREST IN 1.628 ACRES AT 1419 TOBIAS DRIVE FOR A ONE-LOT CONDOMINIUM CONTAINING 24 RESIDENTIAL UNITS. SUBMITTED BY: DIRECTOR OF PL ING AND BUlLDINGf REVIEWED BY: CITY MANAGER ASSIST CITY MANAGER S'-'- 4/5THS VOTE: YES NO_X_ BACKGROUND The original Applicant, Westone Management Consultants, on behalf of Joan & Richard Steussy, submitted a Tentative Map application proposing to convert an existing apartment complex into twenty-four (24) condominium units for individual ownership. The current applicant is Anthony- Taylor Consultants. The applicant has completed the tenant noticing required by the State and by the Municipal Code up to this point prior to Tentative Map consideration (see Attachment E, Noticing Documentation). Once all necessary approvals are obtained the owners will notify the tenants with the remaining notices required by the State and by the Municipal Code. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 (existing facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION That the City Council adopt the attached Resolution, approving the proposed Tentative Subdivision Map to subdivide 1.628 acres into twenty-four (24) condominium units for individual ownership at 1419 Tobias Drive, based on the fmdings and subject to the conditions contained therein. 14-1 PCS-06-04 Page No.2 BOARDS/COMMISSION RECOMMENDATION The Planning Commission considered this proposal on June 13,2007 and voted unanimously, (7-0- 0) to recommend that the City Council approve the proposed Tentative Subdivision to subdivide 1.628 acres into twenty-four (24) condominium units for individual ownership at 1419 Tobias Drive. The Design Review Committee considered this proposal on March 19,2007 and voted unanimously to approve the design. DISCUSSION Project Site Characteristics: The 178' x 359' rectangular-shaped property is located on Tobias Drive, south of Quintard Street in the southern portion of Chula Vista (see Attachment A, Locator Map). The apartment complex consists of twenty-four units, four of which are 3-bedroom 2-bath and the remainder 2- bedroom I-bath units. The apartments feature open parking spaces and landscaped areas, and are to have open balconies or patios. The property is surrounded by duplexes to the north and east, and apartments to the south and west. The parcel is level, and access is via a section of the site containing only driveway and parking spaces. The apartment complex presently consists of one two-story rectangular-shaped wood structure, and a separate one-story laundry facility/clubhouse. The applicant intends to replace the laundry facility with restrooms to serve the clubhouse. Project Description: The applicant's Design Review permit application proposed only minor exterior design changes, including new fencing, balconies and patios, each with a storage unit. Landscaped areas, deck, paving and a new trash enclosure are also planned. For interior improvements, each unit would be renovated, and windows would be replaced. A Physical Elements report, referred to as a 'Property Condition Assessment', commissioned by the applicant, identifies recommended improvements to bring the property and individual units to acceptable condominium standards (see Attachment D, Property Condition Assessment). Staff has incorporated the recommendations as conditions of approval. Table 1 below lists the existing service utilities within the project. Table 1: Existing Utilities Air conditioning Not available Heating Individual gas-fired hot air furnace in each unit Water heaters One central gas-fired hot water heater in clubhouse building: 14-2 PCS-06-04 Page No.3 Gas Individual gas meters Electric meter Individual electrical meters Water HOA Sewer HOA *Cable Individual wlit *Telephone Individual wlit "Not covered in the HOA The maintenance and monthly payment of utilities would be addressed in the project's CC&Rs. The units are already served by separate gas and electric meters, while water and sewer will be the responsibility of the Homeowner's Association. Compliance with Development Regulations: The existing multi-family use of the property conforms with the General Plan designation and the present site zoning. General Plan Zoning Current Land Use Site: North: South: East: West: Residential Medium Residential Medium Residential Medium High Residential Medium Residential Medium R3 R2 R3 R2 R3 Multi-Family Residential Duplexes Multi-Family Residential Duplexes Multi-Family Residential Project Data: DEVELOPMENT REGULATIONS Required ProposedlExisting Building Setbacks: Building Setbacks: Front: 15' Front: 30' Side: 5' & 5' Side: 62' & 67' Rear: 15' Rear: 56' Building Height: 28'/45' (w/PCC approval) Building Height: 28' Parking: 2 open parking spaces per wlit Parking: 2 open parking spaces per unit Open Space: 600 sq. ft. per wlit Open Space: 796 sq. ft. per wlit Storage: 200 cu. ft./ 2 bedroom wlit Storage: 209 cu. ft./2 bedroom wlit 250 cu. ft/3 bedroom wlit 252 cu ft/3 bedroom unit 14-3 PCS-06-04 Page No.4 This project is consistent with the Multi-Family Residential (RJ) Zone, General Plan designation of Residential High, Design Manual, Landscape Manual, and all other applicable codes and regulations of the Municipal Code. Analysis: A condominium conversion project must satisfy certain City Code requirements including the Chula Vista Design Manual, Chula Vista Municipal Code (CVMe) including Chapters 19.28 and 15.56, the California Fire Code, and Uniform Building Code standards. The following issues are included: open space, storage, off-street parking, tenant relocation, design guidelines, noticing documentation, physical elements report, housing inspection, separate service meters, CC&Rs, and fire protection. The following paragraphs discuss some of the major requirements, such as: open space, storage, off-street parking, tenant relocation, design guidelines, noticing documentation, physical elements report, housing inspection, separate service meters, CC&Rs, and fire protection in more detail. Open Space: CVMC Section 19.28.090 requires that 600 square feet of common usable open space be provided per unit. This requires at least 14,400 square feet of open space. The existing open space includes front yard landscaping, reasonably-sized landscaped strips along the sides and rear of the property, a clubhouse and recreation area and a deck. Each unit will have a 100 sq. ft private porch or balcony. The combined amount of open space is thus 19,104 square feet, providing a total of 796 square feet per unit (see Attachment F, Project Plans). Storage: Section 15.56.020 specifies storage area for each unit. There are twenty 2-bedroom units requiring a minimum 200 cubic feet of storage per unit and four 3-bedroom units, each requiring 250 cubic feet. The applicant has shown a storage closet on each balcony that provides either 178 or 117 cubic feet, along with 31 or 135 cubic feet within the unit. The combined total area of storage space for each unit varies, but all units exceed the minimum requirement, with all 3-bedroom units and several 2-bedroom units having 252 cubic feet. All of the storage areas are contiguous with the unit. Off-street parking: In the RJ zone, a minimum of two open parking spaces are required for each unit. The project provides a total of 46 parking spaces, leaving two extra spaces for guest use. The 24- ft wide access driveway provides sufficient room for ingress and egress maneuvers. Tenant Relocation: The applicant will make his best effort to assist tenants with the opportunity of ownership. For those not wishing to buy or unable to qualify for financing, the applicant will pay an amount 14-4 PCS-06-04 Page No.5 equal to one month's rent to assist tenants in relocation. The tenants will have the option of not paying their last month's rent or receiving an equivalent payment. Payments will be made to the tenant's new property management company within the last 30 days of their tenancy at this address. Tenants will also have the option of receiving the incentive upon vacating their individual dwellings. Design Guidelines: The applicant submitted a Design Review application which was approved by the Design Review Committee on March 19, 2007. The Design Review permit proposed no significant exterior structural changes, but rather minor design upgrades, including replacing fencing, providing new balconies or patios, landscaped area, paving and a new trash enclosure, etc. For interior improvements, each unit will be renovated to provide new carpet, tile, doors, windows, hardware, storage areas, etc. The laundry room facilities will also be removed and individual laundry facilities are to be provided in each unit (See Attachment C, Design Review Minutes). Noticing Documentation Pursuant to Section 66452 of the Subdivision Map Act, condominium conversion projects must satisfy certain noticing requirements for specified time periods. The Table 3 below identifies the noticing requirements and when existing and prospective tenants must receive them. The tenants have been made aware of the condominium conversion project proposal since March 2004 and any tenant moving in since then has been given a notice prior to signing his or her lease agreement. Each tenant will also be given notice of having the first option to purchase a unit. The Table also shows when the Applicant met these requirements. Sample notices provided by the Applicant are attached (see Attachment E, Noticing Documentation). Table 3: Noticing Documentation Notice Requirement How Long & When Compliance 60-day notice to all existing 60 days prior to filing a Design 60-day notices were sent tenants of intent to convert - Review and Tentative Map certified mail to existing "Form A"* application with the City tenants on March 3, 2004. Notice to all prospective tenants Prior to acceptance of any rent Notice has been prepared of intent to convert - "Form B"* or deposit from the prospective and signed by 15 new tenant tenants who have moved in since March 3, 2004 10-day notice to all existing 10 days before or after submittal To be determined! Typically tenants of an application of a of the Public Report to the following Final Map Public Report - "Form C" Department of Real Estate approval 14-5 PCS-06-04 Page No.6 lO-day Notice to all existing Within 10 days of approval of To be determined! Typically tenants of Final Map approval- the Final Map by the City following Final Map HForm D" approval Notice to all prospective tenants Prior to acceptance of any rent To be determined prior to of option to purchase/termination or deposit from the prospective approval of Final Map oftenancv - "Form E" tenant 90-day Notice to all existing For a period of90 days after To be determined prior to tenants of option to issuance of the Public Report approval of Final Map purchase/termination of tenancy from the Department of Real -"FormF" Estate 180-day notice to all existing 180 days prior to termination of To be determined prior to tenants of intent to tenancy approval of Final Map convert/termination of tenancy - "Form G" · Attachment E - Noticing Documentation The City Council only needs to find that the Applicant has submitted Forms "A" and "B" prior to the approval of the Final Map. The remaining notices are required after approval of the Final Map. Physical Elements Report: The applicant submitted a "Physical Elements Report", referred to as a 'Property Condition Assessment' (See Attachment D) prepared by JCEPIHuang Consulting Engineers, Inc. for review by the City's Building Official. The report concludes that the existing apartment complex is in overall good condition with few defects, and composed of durable materials and sturdy construction. After reviewing the recommendations, staff concludes that the proposed improvements will satisfy the Building Code requirements if constructed or put in place. Staff has included the report recommendations as conditions of approval in Attachment C of the draft City Council Resolution. Housing Inspection: The Project is required to conform to Uniform Housing Code requirements in existence at the time of the approval of the Subdivision Map. The project has completed a housing inspection and is required by condition of approval to correct the minor noted deficiencies prior to Final Map approval. Separate Service Meters: Each unit has individual gas and electric meters. A Homeowner's Association will be responsible for the water and sewer service utility meters. The Applicant shall provide CC&R's prior to final map approval showing how this will be satisfied. 14-6 PCS-06-04 Page No.7 CC&Rs: The Project is conditioned to provide evidence of declarations of covenants, conditions and restrictions in conjunction with approval of the Final Map. Fire Protection: The project shall comply with the California Fire Code including, but not lirnited installing smoke detectors to be hardwired and interconnected with battery backup capabilities in each bedroom and hallway leading to bedroom. DECISION-MAKER CONFLICTS: Staff has reviewed the property holdings of City Council and has found no property holdings within 500 feet of the boundaries of the property which is subject to this action. CONCLUSION: This project is consistent with the Multi-Family Residential (R3) Zone, General Plan designation of Residential High, Design Manual, Landscape Manual, and all other applicable codes and regulations of the Municipal Code. Based on the preceding information, the project, as conditioned, is in substantial conformance with the requirements for condominium conversion and the City Council can approve the Tentative Map subject to the conditions listed in the attached City Council Resolution. FISCAL IMPACT The application fees and processing cost are paid for by the Applicant. ATTACHMENTS A. Locator Map B. Planning Commission Resolution & Minutes C. Design Review Minutes D. Property Condition Assessment - "Executive Summary" E. Noticing Documentation F. Project Plans G. Disclosure Statement Prepared by: Ann Pease, Associate Planner, Community Development Department J:\CommDev \Ann IPCS\IPCS-06-04-CC Staff Report 14-7 ~ PROJECT _______ LOCATION Castle Park Hiah School ~ R1 KI7\ C HULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT DESCRIPTION: C) APPLICAm Anthony Taylor Consultants MISCELLANEOUS PROJECT 1419 Tobias Rd. Project Summary: Proposing condominium conversion of 24 ADDRESS: existing attached apartment units with 48 parking spaces; located SCALE: FILE NUMBER: at 1419 Tobias Rd. ~ No Scale PCS-06-04 Related cases: DRc.06-18 .... L.\Gabe FllesILocalors\pcs0604.cdr 06.29.07 ATI~HMe.JT "5 RESOLUTION NO. PCS-06-04 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL APPROVE A TENTATIVE MAP TO DIVIDE INTEREST IN 1.628 ACRES AT 1419 TOBIAS DRIVEFORA ONE-LOT CONDOMINIUM CONTAINING 24 RESIDENTIAL UNITS- ANTHONY-TAYLOR CONSULTANTS. WHEREAS, on September 15,2005, a duly verified application was filed with the City of Chula Vista Planning and Building Department by Westone Management Consultants ("Original Applicant"), requesting approval of a Tentative Subdivision Map to convert 24 apartment units into individually owned condominiums ("Project"); and, WHEREAS, in May 2006, Westone Management Consultants ("Original Applicant") was replaced by Anthony-Taylor Consultants ("Applicant") by the building owner; and, __ --WHEREAS, the area of land which is the subject matter of this Resolution is diagrammatically represented on Attachment A and for the general description herein consists of a 1.628 acres located at 1419 Tobias Drive ("Project Site"); and WHEREAS, The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1 (existing facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is necessary; and WHEREAS, the Planning and Building Director set the time and place for a hearing on the Project, and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners within 500 feet of the exterior boundaries of the property, at least 10 days prior to the hearing; and, WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m., June 13,2007, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed; and WHEREAS, the Planning Commission having received certain evidence on June 13,2007, as set forth in the record of its proceedings herein by reference as is set forth in full, made certain findings, as set forth in their recommending Resolution PCS-06-04 herein, and recommended that the City Council approve the Project based on certain terms and conditions. ~~~-' -~ NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION recommends that the City Council adopt the attached Draft City Council Resolution approving the Project in accordance with the findings and subject to the conditions contained therein. 14-9 BE IT FURTHER RESOLVED THAT a copy of this resolution be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNIA, this 13th day of June, 2007, by the following vote, to-wit: AYES: Vinson, Moctezuma, Bensoussan, Felber, Tripp, Clayton, Spethman NOES: ABSENT: @) Bryon F': ',0." . ATTEST: ;:-~~ - ~ 14-10 Planning Commission Minutes -7- -4 -,rAe-ii A1 e: AJ T -is June 13, 2007 4. PUBLIC HEARING: PCS 06-04; Consideration of a Tentative Subdivision Map to subdivide 1.628 acres into twenty-four (24) condominium units for individual ownership at 1419 Tobias Drive. (Quasi-Judicial) 8:05:50 PM Background: Ann Pease, project manager reported that the proposal is to consider a Tentative Subdivision to convert an existing 36 year old apartment complex into 24 condominium units for individual ownership. When the DRC first reviewed the projects, it was much dated and in need of improvements both exterior and interior. When final DRC approval was granted, it was a much improved, attractive and up to date complex. There is a proposed new landscape plan providing 796 sf of open space per unit. Additionally, two parking spaces are provided per unit and storage space above what is required by Code is provided on the balcony and inside each unit. Staff Recommendation: That the Planning Commission adopt Resolution PCS 06-04 based on the findings and subject to the conditions contained therein, recommending that the City Council approve the Condominium Tentative Map. Public Hearing Opened. 8:13:30 PM Bruce Taylor applicant on behalf of the owners stated he was available to answer questions. Cmr. Felber asked how old is the roof on the units, and what types of incentives are they offering to existing tenants. Mr. Taylor stated the roof is three to four years old. They are offering existing tenants the first right of refusal to purchase those units. As far as financial incentives, they've not discussed that, however, most likely they would be open to discussing assisting tenants with their relocation expenses. 8:15:44 PM Cmr. Bensoussan noted that the renovation of the units is extensive and it would appear that the tenants who plan to buy their unit would need to vacate the premises in order for the renovation to take place; she asked how the developer intended to address this situation. Mr. Taylor stated that in effect, the premises would need to be vacated for the renovation project, therefore, they would hope to be able to phase the remodel and relocate those tenants who wish to purchase into another unit that has been vacated. Public Hearing Closed. 14-11 Planning Commission Minutes -8- June 13, 2007 Cmr. Bensoussan stated that she is please with the extensive renovation that will take place to make it an overall very attractive complex, and commended the applicant for going above and beyond in meeting all of the parking, storage space, and open space requirements. In her opinion, this is a prototype for condo conversion projects because it is upgrading the housing stock and improving the surrounding community, instead of just slapping a coat of new paint and barely meeting the minimum requirements. 8:19:14 PM MSC (Clayton/Spethman) (7-0) that the Planning Commission adopt Resolution PCS 06-04 based on the findings and subject to the conditions contained therein, recommending that the City Council approve the Condominium Tentative Map. Motion carried. 8:20:22 PM director's report. . Jim Hare reported that a memorandum regarding The Taste of Italy has been distributed to the Commission, simply reporting that there have been no incidences, no causes, no calls, no code enforcement actions. . Mr. Hare further stated that a survey is yet to be completed of the surrounding neighborhood who came to testify against the restaurant because of the myriad of quality of life impacts the restaurant was having on their community. If after the survey is conducted it is determined that they are overall satisfied that the concerns have been mitigated and properly addressed, staff will make a determination at that time whether to proceed with scheduling a public hearing for them to come before the Planning Commission once again for review. . The Joint GMOC/Planning Commission/City Council meeting for June 21, 2007 has been cancelled. In lieu of that meeting, staff is proposing to use that meeting date on June 21st to hold the Procedures Workshop for the Planning Commission; confirmation on that workshop will be forthcoming. Meeting adjourned to a regular Planning Commission meeting on June 27,2007. Diana Vargas Secretary to the Planning Commission 14-12 A".~~IMEtJT c Design Review Committee Minutes 2 March 19. 2007 1. DRC-06-18 Anthony-Taylor Consultants The project is located at 1419 Tobias Drive. Remodel of a 24-unit aoartment comolex on a 1.628-acre site orior to conversion into a condominium comolex. Project Manager: Ann Pease, Associate Planner Staff Presentation: Ms. Ann Pease, Associate Planner, presented the project details to the committee. She stated that the project is located at 1419 Tobias Drive and involves the conversion of a small, older apartment complex on a 1.6 acre parcel into a condominium complex. Ms. Pease stated that at the DRC meeting of January 22, 2007, the committee members commented on revising the following design elements: . Some additional contrasting paving material in the parking lot. . Adding a shelter over the deck in the rear of the project. ADDlicant Presentation: Mr. Bruce Taylor with Anthony Taylor Consultants (304 Enterprise Street, Escondido, CA) spoke regarding the project and the revisions they made to the elevations, renderings and the landscape plan. STAFF RECOMMENDATION: That the Design Review Committee approve of the project subject to the conditions stated in the draft Notice of Decision. Public Comments: None COMMnTEE DISCUSSION: During discussions, the Committee commented on the newly covered balcony areas. They wanted to know if there was any consideration about having some type of header beam that goes under the roofing material. The columns seem to be floating as they hit the roof and they felt there should be some sort of beam that ties in the columns a little. ::"". MSC (Bringas/Justus) (5-0) Approve DRC-06-18 project as presented with the condition of providing the header, which can be reviewed at staff level. 14-13 Design Review Committee Minutes 4 A.rr~..u..h""le:.rJT c. . March S. 2007 2. DRC-06-18 Anthony-Taylor Consultants The project is located at 1419 Tobias Drive. Remodel of a 24-unit apartment complex on a 1.628-acre site prior to conversion into a condominium complex. Project Manager: Ann Pease, Associate Planner Action: (Alberdi/Bringas) (4-0-0-1) To continue the item to a date uncertain. Motion carried with Member Justus absent. F. PRELIMINARY REVIEW: None G. BUSINESS ITEM: 3. Proposed Municipal Code Amendments relating to the Design Review Committee. Staff Contact: John Schmitz, Principal Planner Staff Presentation: Mr. John Schmitz, Principal Planner, presented the details of the Municipal Code Amendments to the committee. Action: None taken. The committee had some concern about item Jl of the Municipal Code and the phrase, "new non-residential buildings less than 20,000 square feet in size." They would like to see this sentence removed. H. ADJOURNMENT: The meeting was adjourned at 5:52 p.m. A regular Design Review Committee meeting will be held on Monday, March 19, 2007 at 4:30 p.m. in Council Chambers. Prepared by: Lori McElroy, Recorder "--,. :"'". 14-14 ArT~\J\VIe.rJr D 1.0 EXECUTIVE SUMMARY 1.1 General Description JCEP/Huang completed a property condition assessment (PCA) of a multi- dwelling complex known as the Rancho Vista Condominiums located at 1419 Tobias Drive in Chula Vista, San Diego County, California 91911-4430 (subject property) at the request of Joseph Scarlatti of West one Management Consultants. As a part of the PCA, an on-site walk through observation was made on January 12,2005 with Ray Davis, Resident Manager, Bob McGowan and Leonard Chretien, Partners of the subject property. The subject property consists of24 dwelling units housed in a rectangular-shaped two story garden type apartment building, and a single-level clubhouse building. Out of the 24 apartments, four are 3 x2 units, others are 2 x Is. The apartments are numbered I through 24 where I through 12 are ground level apartments, 13 through 24 are on the second floor. Constructed of wood frame, the subject apartment building has a rentable area of an approximated 20,860 square feet. Original development of the property was completed in 1972 on an irregularly shaped parcel ofland of an estimated 70,908 square feet (1.628 acres) in the City of Chula Vista. A brief description of the subject property is as follows: Two x one Three x two Total Note: During the on-site walk through observation, JCEPlHuang randomly observed the following units: Nos. 1,4,5,6,8,9,10,11,12,14,15,19,2122 and 24. Additionally, the subject dwelling complex also provides 48 asphalt paved surface parking spaces, a laundry room with 3 washers and 3 dryers, a clubhouse building, and associated hardscape and landscape. The clubhouse building is currently used to accommodate the laundry room, a storage room, a domestic hot water heater utility room, and the clubhouse which is not in use. We understand, this clubhouse building will be renovated to offer a refurbished and up-graded clubhouse with men's and women's bathrooms. And the currently gravel covered grounds in front of the clubhouse building will be converted into a tot lot and a BBQ area with BBQ grills and picnic table sets to meet current City standards. Due to the mild climate in Chula Vista, and like many apartments in the project area, Rancho Vista Apartments is not air conditioned for cooling. Heating for the apartments is provided by individual gas-fired forced hot air furnace in the utility 4 14-15 closet of each apartment. Domestic hot water for the apartments is provided by one central gas-fired hot water heater contained in the utility closet in the clubhouse building. Each dwelling unit is furnished with a gas range/oven, stainless steel sink, counter tops, wall cabinets, ceiling fan and refrigerator. As a part of the condominium conversion program, stacked washer and dryer will be installed in each unit. And the existing laundry room will be converted into men's and women's restrooms for the new clubhouse. The electric distribution panels and individual electric meters are housed in the utility closet attached to the apartment building. Individual gas meters are hung on the exterior wall of the apartment building. Smoke detectors are available for the dwelling units, and the apartment building is fitted with fire extinguishers. Additionally, fire hydrants are located along the city street sidewalks by the property and on-site as required by the current fire code. 1.2 General Physical Condition The subject property appears adequately maintained and in overall good condition with few defects noted. Components of the building are composed of durable materials and sturdy construction. It is JCEP/Huang's opinion that the subject property is comparable to or better than other similar properties of similar age in this area and, subject to a continued program of sustained preventative maintenance, the remaining economic life of the subject apartments should exceed 35 years. 1.3 Recommended Immediate Repairs (within 12 months) Deferred maintenance and physical deficiencies for which actions are recom- mended represent potentially unsafe conditions, material code violations, and items that require corrective works on a higher priority than routine work. Based upon observations conducted during the property visit, the following objectionable property conditions that require immediate corrective works were identified: . Cracks were observed on the asphalt pavement by the west side entrance way to the apartment building (See photo 24). These cracks appeared large enough to be considered as potential tripping hazards. JCEP/Huang recommends that this condition be corrected immediately. ESTIMATED COST: $1,300.00 . The first concrete tread on the west side stairs was noted to be broken (See photo 23). This condition can also be considered as a potential tripping hazard. 5 14-16 It is recommended that this tread be replaced immediately. ESTIMATED COST: $ 300.00 1.4 Recommended Short Term and Intermediate Term Repairs (between 1 to 5 years) We understand that the owner of the property has planned a Renovation Program to convert the dwelling units into condominiums. The Program will be carried-out within the next two to three years, and it includes: 1. Repair/replacement of flooring and painting of interiors of all dwelling units. 2. Replacement of kitchen appliances with reputable name brands, and repair/replacement of counter tops, cabinets and sinks. 3. Repair/replacement of windows and doors. 4. Repair/replacement of bathroom fixtures. 5. Repair/replacement of any water and pests damaged building elements and materials, including the stairs, second floor landings and breezeways, fencing, gates and light poles. 6. Repair/replacement of the heating units. 7. Repair/replacement of the hot water heater. 8. Install new stacked washer and dryer in each apartment. 9. Install dishwasher in each unit. 10. Up-grade the site illumination system, including repairs/replacements oflight poles. II. Install a centrally located brand new trash enclosure that meets the current City standards. JCEP/Huang also recommends the following repairs/replacements and up-grades be incorporated with the Renovation Program. . Isolated cracking and alligatoring were noted on the asphalt paved driveway and parking lots. Localized repairs are recommended. Following the repairs, seal-coating and restrlping of the pavement should be performed. 6 14-17 . Reroof the clubhouse building. . Re-landscape the backyard (north side of the property) including the hill and adjust irrigation system accordingly. . Fill bare areas with materials that are comparable to the existing plants and adjust the irrigation system accordingly. Also reset sprinkler heads for proper spraying ofthe irrigation water to avoid staining the exterior walls. . Paint exterior walls of the building, property fences, stairs, railings for the second floor landingslbreezeways. . Install an electronically controlled security gate system at the entry way to the property facing Tobias Road 7 14-18 C J , . . os ervlce", _ ~ CER}lAED MAIL", R9CEIPT (DomesticM;nfOnly;No Insuran~Coverage Provided) c J USE ~ A L , Postage $ Certified Fee $2.30 $1.75 $0.00 J J Retum Reelepl Fee J (Endorsement Required) J Aestrlcted CeJiYery Fell J (Endorsement Required) C 'I To'" Po""" &F... $ $4 .42 , J en. 0 V iL~n/.e.. ...j' ('(Wl,iLi... 1)iat.-- ....__......__ J ~;;;,.er.ijjiiVO:;-......-.-...u. __ _~_"n....n . or PO Box Ne. citY;.~~'1(.V:;~-..CA.....c, 1'1 II ............--........... U.S. Postal Service"" CERTIFIED MAIL", RECEIPT (Domestic Mail Only; No Insurance Coverage PrOVIded) USE PO$tllGe S eo"'od F.. $2 . 30 Retum Reclept Fee "I 75 (Endorum~nt Required) ".. Restricted Delivery Fee .0 00 (Endol'Mment Required) :r . Total Postage & Fellis $ H.~2 .^~~:..~,f,s:f.b:eLS..C~f0.2.......................__.......__....... ,:,lrBst''''f't. No.; or PO Box No. u.s. Postal Service,,", CERTlAED MAIL, RECEIPT (DomesticMail Only; No Insurance Coverage Provided) t'" ! A l U S E ..--- ""'laO' S ..'J' Certlnec:lFee $2.30 004Q Retum Reela"t Fee OS "Il<>otma'" Endorsement Required) $1.75 .;> ./ ..... Restricted Delivery Fee $0.00 "Z?- :ndorsement Required) Total Postage & Fees $ $4..2 <0.. " P--/lVmr.r Lfl/lJ.l.,"'.... ATrAc.....tMSrJr E ", ", m~ .-- . . rv, , ' CERTIRED MAlL" RECEIPT (Domestic Mair Onfy;Na Insurance Coverage Provided) ~ CJ '.-- m ~ jf1 ~ ~J ~''''':- L. Postage $ :;; Certified Fee D Aetum Reelepl Fee D (Endorsem~nl Required) D Restricted Oellvery Fee CO (Endorsement RequIred) .Jl ..-:I Total Postage & Fees ", CJ CJ .-- \./lJj~ 'stm~' Here-:- ~, . C Z~~~ !I. ~ '" . 0' ", 03/0:Y2004 12.30 $1.75 $0.00 $4..2 ''-- LJ'I rn .-- .~ CJ .-- Poo_ S ", .-- Certified Fee 12.30 CJ CJ Retum Reclepl Fee $1. 75 CJ (Endorsement Required) CJ Restrlcted Oellvery Fee $0.00 "" (Endorsement ReqUited) .Jl Total Postage" Fees $ $4.42 r-'l ITl CJ CJ .-- ..... USe ,i""' -:;0 ,. , .--.. 0040 OS ~lmarl< rJ'"~ere C-~ <l' 03/031 00. . .-r.' iIX..l:..,A.M..!.(!{Jfr.:--..-- r-'l .-- ", .-- U.s. Postal Service." CERTIFIED MAIL", RECEIPT (Domestic Malf Only; No Insurance Coverage Provided) I p, t i \. ~,:': ,Ii'''' ., ....: 'iw:, ,- _.. ~ CJ .-- ", ~SIL~( Ptmage $ .-- CJ CJ Return Reelept Fee CJ (EndorsemWlt Requited) \ OO~/ ' 08 '~~stmark J' Here ~1' C. . IS C.rtftled Fee $2.30 $1. 75 $0.00 o Restricted Oellvery Fee cQ (Endorsement Reqwea) .Jl .-'l Tnt..1 P".tace & Fee. $ t,~.~2 g f..~:~.~?({Sct!l.a_lJ.Q__flnce 1 _ O. CONDOMINIUM CONVERSIONS-FORM B NonCE TO PROSPECTIVE TENANT OF INTENT TO CONVERT (PRIOR TO EXECUTION OF RENTAL AGREEMENT) To the prospective occupant(s) of: 1419_Tobias Dr Chula Vista. CA 91911 (address) 1 (apartment #) The owner(s) of this building, at 1419 Tobias Dr. Chula Vista. CA 91911 (address), has filed or plans to file a Design Review and Tentative/Parcel Map application with the City of Chula Vista to convert this building to a condominium project. No units may be sold in this building unless the conversion is approved by the City of Chula Vista and until after a public report is issued by the Department of Real Estate. If you become a tenant of the building, you shall be given notice of each hearing for which notice is required pursuant to Sections 66451.3 and 66452.5 of the Government Code, and you have the right to appear and the right to be heard at any such hearing. The owner or owner's agent shall provide a total of five (5) different notices throughout the approval process to each tenant prior to the. tenant vacating the premises due to the conversion. The City of Chula Vista will notify each tenant of all three public hearings (Design Review Committee, Planning Commission, and City Council) for the project approval. If you moved in after the process had began, the owner's representative shall inform you of the current status of the project imd how. many notices you will be given prior to vacating the unit. (signature of owner or owner's agent) December 20"'. 2004 (date) I have received this notice on (date) (prospective tenant's signature) 14-20 60 Day Tenant Notification that the Owner Intends to File an Application with the City of Chula Vista to Convert the Existing Apartments to Condominiums Vicente or Maria Diaz Chula Vista, CA 91911 The-Owner(s) of the buildings located at, 1419 Tobias Dr, Chula Vista, CA 91911, intenas to file an application with the City of Chula Vista to convert the building to a condominium. You shall be given notice of each public hearing for which notice is required . pursuant to sections 66451.3 and 66452.5 of the Government Code, and you have the right to appear and the right to be heard at any such hearing. 12-20-04 Date Westone Management Consultants, LLC Authorized Agent for the Owners of the Property 1 4- 21 ~ ,0 q " " ::'~ ~~ [;i~ d j! il!;i ~~~ ~ ~r;n ;~: g 1 I I 1 1 1 I ~I ~ <:1 ~<;>I . - en m g; S I I ~ 651 i 1 co c7i If- -- -- 2 ~I .. I ~~ " 2:'':::::1 I ~~ ~~I T 1=:"1 L , I ; 1 " ,1 I :~I ,f -- ~" " J_"- o~! 1 ! ,-, I " ~ ~~~~ I i ~!!; 1 1 I~;;mll I ~ !j~;~~~t 'I--'--~, ~) ,~ ~ \~ : ~ i , ~ ~ ~ \ ( ihlw! ~,,; ~~hiH 0 <( 1; ~ >=- ,--~ 1!2~~~~~~ > :00'-'0 011": ^ 'Jl::S!~"'~~htj~"1:;~"~i'l~~'O!n\;~~~d-,,,",:d:,>~~g~~~B ~ i ~ ~~' ~ ,1"'" c. ."~ ;;;;i :~gi~g ~ ~ ~ f.~~ ~Il'wg,l: ~ ~1: :c " > > ~ > 0 en ; ~ ~ ;"z 8~j ;~:~~~~~~~I!I ~~ i~ OJ ~ 5 c. 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""""""""'- ......,"""''''''''''" Tobias Dr. ,,,I",J'''' f-"I'I_'. uo",__ ,,,,,,,1<i-"'" <<.."....'"'''' -~-.. --..01.. -"","""""'" -...."''''''"'' ''''''"'''''''' t,,,,,",,,,,,,,"",,,,,,,,,,_""'_ E>co,...,.,_,....;,'F,_."_E>uoIL.... ~ ""''''''''''-,~"".~''' ,,,...""-'i, """""~.."'- -,.,~,.. ",,,,,- -- r=J,......1I _.,,,....<- o.,<",,",",...~,...1>oo " ~~",,,,,,,,.,,..'''''''''' .'<"'......,..-".. M""~"""'...~..' ,~__.""""" _~"""""'"""".~ '.."'~L''''''"'.'''"'' .~,~....."~" 'Kt",.~m .""........ "."=" ~'-::... ".-""""" ...."--. "'''''~-, '''''~_- (~,,-- Wood Arbor Shade Stn.K:tLlre Mor<,o,..",lrn ,.,J., ACParkingArea 1"1 I .,. - ~- - -,c"" ..; Oc --.0 pc..... .)~' I~ .~':>, l~ '~', " I ' ~, "n ':~.~' 'h'"'.,I, - 0 , +.'-"'-.:::!_ - - ~ 1,__ ENTRY ENLARGEMENT S<ale1l!'~_ 'L-Stairs - -'-"...C.........--~ ,_. ~- -,,,-,-,---~--- ~-'''''-''=-----="-------- ~'-'-~ "1,, "~,,,,:, ~"" =.11. , 'l'C"'~~:." ." ~C' .. . ' '.'..n --" ~ _. / t --'-7:;-'::-%:-< "- . - -- ..-.... ,,',i:"'~ - ";""-i,/'~::. );((: ;*', ~- ",..,"'" "'''''''''''' ~1 /~ <: ~- l.ANI)SCJ\P_~R~'(1;1Qf1fl_~J!1f--b!\J(--~~---- ~rth .- ____n_____ .,!' , _I S<.l~ ~ 10'.0" ~~."." WOOD DECK & ARBOR SHADE STRUCTURE PERSPECTIVE VI ::e ::> Z ~ o ~ ~~ o ~j u ~.; .c( ~.i:i I- ~ > VI ~ 3 :> -6 o :J: U Z ~ ]j' '2'\1 <In, !CU' jGI H H ~ ~~ ~ ~i n ~; ~ ~i ;:[ ~::: " H i~ Cf] RANCHO VISTA CONDOMINIUMS 1419 Tobias Drive Chula Vista, CA 91911 - -+: ' , I ~ N , , \-' ....->r..., New Storage Rooms. Patio/Deck New 3'x3' Columns with DecorativeWroughllron Railings and exlerior lighting New Fr!!nch Duor~ NewW'ndows and Shutter>; ~'HwStuccofmi5h Partial South Elevation S<o>o,.."<r p-, P-2 P-' P-2 P-3 South Elevation Replace all ~ert'calwood siding with New Stucco &:.ION"" ~II?- -11- . - .: ItfTAc-tt JU e)J T 6- P I ann Building Planning Division I & Department Development Processing- n g em OF CHUlA VISTA APPLICATION APPENDIX B Disclosure Statement Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. iJjA- 2. ifany person. identified pursuant to (1) above is a corporation or partrership, list the names of all Individuals with a $2000 investment in the business (corporationlpartrershlp) entity. ldM&1o ~ )I'sfv-, U:>(lJo(V\'Ci'11 ~ I LLc.. 3. If any person. identified pursuant to (1) above is a non-profit organization or trus~ list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or,trustor of the trust. ~4 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. IftJp~YliL rVlCU1i/i~. Cons..u~1-s 5. Has any person. associated with this contract had any financial dealings ><n official.. of the City of Chula Vista as it relates to this contract within the past 12 months. Yes_ No If Yes, briefly describe the nature of the financial interest the official" may have in this contract. 6. Have you made a contributlen {r more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? No pes _ If yes, which Council member? 276 Fourth Avenue Chula Vista I 14-23 a 91910 (619) 691.5101 P I ann n g & Building Planning Division I Department Development Processing- ClJY Of CHUlA VISTA APPLICATION APPENDIX B Di5~lo5urfil Statement - ~age 2 7. Have you provided more than $340 (or an item of equivalent value) to an official- of the City of Chula Vista in the past twelve 1:.2) onths? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) ~-~ . . If Yes, which Icial- and what was the nature of item provided? Date: -j lUlL --- 15 i [)f)D:J I Signa re of Contractor/Applicant . ~~~ont~~c:!b Print or . Person is defined as: any individual, firm, co-partnership, .joint venture, association, social club, fraternai organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other politicai subdivision, -or any other group or combination acting as a unit. .. Official includes, but Is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 2i6 Fourth Avenue Chula Vista C, '" 14-24 91910 (619) 691.5101 RESOLUTION NO. 2007- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ESTABLISHING CONDITIONS OF A TENTATIVE MAP TO DIVIDE INTEREST IN 1.628 ACRES AT 1419 TOBIAS DRIVE FOR A ONE-LOT CONDOMINIUM CONTAINING 24 RESIDENTIAL UNITS. I. RECITALS A. Project; Application for Discretionary Approval WHEREAS, a duly verified application for a Tentative Subdivision Map was filed on September 15, 2005, with the City of Chula Vista Planning and Building Department by Westone Management Consultants ("Original Applicant") requesting approval of a Tentative Subdivision Map to convert 24 apartment units into individually owned condominiums ("Project"); and WHEREAS, in May 2006 Westone Management Consultants was replaced by Anthony- Taylor Consultants ("Applicant") by the building owner; and B. Project Site WHEREAS, the area of land which is the subject matter of this Resolution is diagrammatically represented in Exhibit A, copies of which are on file in the Office of the City Clerk, incorporated herein by reference, and commonly known as Chula Vista Tract No. , Tentative Subdivision Map, and for the purpose of general description herein consists of 1.628 acres located at 1419 Tobias Drive ("Project Site"); and C. Prior Discretionary Approval and Recommendations WHEREAS, the development of the Project Site has received the following discretionary approvals and recommendations: 1) Design Review Committee approval on March 19, 2007, 2) Planning Commission recommendation of approval of PCS-06-04, Tentative Subdivision Map for a 24-unit condominium conversion on June 13,2007; and D. Planning Commission Record of Applications WHEREAS, the Planning Commission held an advertised public hearing on the Project on June 13, 2007, and after hearing staff's presentation and public testimony voted to recommend that the City Council approve the Project, in accordance with the fmdings and subject to the conditions listed below; and E. Council Record of Applications WHEREAS, the City Clerk set the time and place for the public hearing on the Project's tentative subdivision map application; and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, its mailing to property owners within 500 feet of the exterior boundary of the project and its mailing to the current tenants residing at 1419 Tobias Drive, at least 10 days prior to the hearing; and 14-25 Resolution No. 2006- WHEREAS, the duly called and noticed public hearing on the Project was held before the City Council of the City of Chula Vista on , in the Council Chambers, 276 Fourth Avenue, at 6:00 p.m. to receive the recommendations of the Planning Commission, and to hear public testimony with regard to the same. NOW THEREFORE BE IT RESOLVED that the City Council does hereby fmd, determine and resolve as follows: II. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing on the Project held on June 13,2007, and the minutes and Resolution resulting there from, are hereby incorporated into the record of this proceeding. ill. COMPLIANCE WITH CEQA The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class I (existing facilities) categorical exemption pursuantto Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is necessary. IV. INDEPENDENT JUDGMENT OF CITY COUNCIL The City Council has exercised its independent review and judgment and concurs with the Environmental Review Coordinator's determination that the Project qualifies for a Class I (existing facilities) categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. V. TENTATIVE SUBDIVISION MAP FINDINGS A. Pursuant to Government Code Section 66473.5 of the Subdivision Map Act, the City Council finds that the Tentative Subdivision Map, as conditioned herein for 1419 Tobias Drive, is in conformance with the elements of the City's General Plan, based on the following: 1. Land Use It is the City's goal to accommodate diversified housing types. The site is designated Residential- High, and was previously developed with 24 units on the property, which is consistent with the General Plan. Thus, the Project, as conditioned, is in substantial compliance with the adopted General Plan. 2. Circulation All on-site and off-site public streets required to serve the subdivision currently exist. No street improvements are required. 14-26 Resolution No. 2006- 3. Housing The Project is consistent with the density prescribed within the General Plan and provides attached condominium units for individual ownership. The conversion of24 apartment units to 24 condominium units creates additional opportunities for residential ownership. 4. Open Space The Project includes patios, balconies, and landscaped areas. B. The site is physically suited for residential development and the proposal conforms to all standards established by the City for such proj ect. C. The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extend to the impact created by the proposed development. VI. FINDINGS OF COMPLIANCE WITH CONDOMINUM CONVERSION REQUIREMENTS PURSUANT TO CHAPTER 15.56 AND APARTMENT RESIDENTIAL ZONE REQUIREMENTS PURSUANT TO CHAPTER 19.28 OF THE CHULA VISTA MUlCIPAL CODE Pursuant to Chapter 15.56, Conversion of Dwelling Units to Independent Ownership, the City Council fmds that the project meets the following: A. Fire Protection: The proj ect shall comply with the California Fire Code including but not limited to installing smoke detectors to be hardwired and interconnected with battery backup capabilities in each bedroom and hallway leading to a bedroom. B. Uniform Building Code: The Building Department reviewed the "Property Condition Assessment" prepared by JCEPIHuang Consulting Engineers, Inc. and found that the Project will satisfy the Building Code requirements if the recommended improvements are constructed or put in place. These requirements are generally described in the Property Condition Assessment. C. Storage: Chula Vista Municipal Code Section 15.56.020 requires storage area for each unit. There are twenty 2-bedroom units requiring a minimum 200 cubic feet of storage for each unit and four 3-bedroom units, each requiring 250 cubit feet. The applicant will provide a storage closet on each balcony that provides either 178 or 117 cubic feet, along with either 31 or 135 cubic feet within each unit. The combined total area of storage space for each unit varies, but all units exceed the minimum requirement, with all 3-bedroom units and several 2-bedroom units having 252 cubic feet. All of the storage areas are contiguous with the unit. D. Housing Code: The Project is required to conform to Uniform Housing Code requirements in existence at the time of the approval of the Subdivision Map. The project has completed a housing inspection and is required by condition of approval to correct any deficiencies prior to Final Map approval. 14-27 Resolution No. 2006- E. Off-street parking: In the R3 zone, a minimum of 2 open parking spaces are required for each unit. The project provides a total of 46 parking spaces, leaving two extra spaces for guest use. F. Design Guidelines: The applicant submitted a Design Review application which was approved on March 19, 2007 (DRC-06-18). The Design Review permit proposed no significant exterior structural changes, but rather minor design upgrades, including replacing fencing, providing new balconies or patios, landscaped areas, paving and a new trash enclosure, etc. For interior improvements, each unit will be renovated to provide new carpet, tile, doors, windows, hardware, storage areas, etc. The existing laundry room facilities will also be removed and individual laundry facilities are to be provided in each unit. G. Separate Service Meters: Each unit has individual gas and electric meters. A Homeowners Association will be responsible for the water and sewer service utility meters. The Applicant shall provide CC&R's prior to final map approval showing how this will be satisfied. H. The applicant submitted a "Property Condition Assessment" (See Attachment E) for review by the City's Building Official. The report concludes that the existing apartment complex is in overall good condition with few defects, and composed of durable materials and sturdy construction. After reviewing the recommendations, staff concludes that the proposed improvements will satisfy the Building Code requirements if constructed or put in place. Staff has included the report recommendations as conditions of approval in Attachment C of the draft City Council Resolution. 1. CC&Rs: The Project is conditioned to provide evidence of declarations of covenants, conditions and restrictions in conjunction with approval of the Final Map. BE IT FURTHER RESOLVED that the City Council does hereby approve the Project subject to the general and special conditions set forth below. VII. GOVERNMENT CODE SECTION 66020 NOTICE Pursuant to Government Code Section 66020(d)(I), NOTICE IS HEREBY GIVEN that the 90 day period to protest the imposition of any impact fee, dedication, reservation, or other exaction described in this resolution begins on the effective date of this resolution and any such protest must be in a manner that complies with Section 66020(a) and failure to follow timely this procedure will bar any subsequent legal action to attack, set aside, void or annual imposition. The right to protest the fees, dedications, reservations, or other exactions does not apply to planning, zoning, grading, or other similar application processing fees or service fees in connection with the project; and it does not apply to any fees, dedication, reservations, or other exactions which have been given notice similar to this, nor does it revive challenges to any fees for which the Statute of Limitations has previously expired. 14-28 Resolution No. 2006- VITI. COMPLIANCE WITH GOVERNMENT CODE SECTIONS 66451.3 AND 66452.5 Noticing Documentation Government Code Sections 66451.3 and 66452.5 require notification of a tenant's right to a public hearing. The City of Chula Vista provided notices to tenants and surrounding property owners of all required public hearings for the Project, and the Applicant has satisfied the following noticing requirements at the time of submittal of the Tentative Map, which includes a 60-day "Notice of Intent to Convert" and a "Notice to Prospective Tenants of Intent to Convert". BE IT FURTHER RESOLVED that the City Council does hereby approve Tentative Subdivision Map, Chula Vista Tract No. , subject to the general and special conditions set forth below. IX. GENERAL CONDITIONS OF APPROVAL A. Project Site is Improved with Project The Applicant, Owner or his/her successors in interest, shall improve the Project Site with the Project as described in the Tentative Subdivision Map, Chula Vista Tract No. 1419 Tobias Drive. B. Design Consistency The Applicant shall develop the condominium units in accordance with all applicable City of Chula Vista Design Guidelines and in accordance with the DRC 06-18 approval by the Design Review Committee. X. SPECIAL CONDITIONS OF APPROVAL A. The conditions herein imposed on the tentative map approval or other entitlement herein contained is approximately proportional both to nature and extent of impact created by the proposed development. Unless otherwise specified, all conditions and code requirements listed below shall be fully completed by the applicant or successor-in-interest to the City's satisfaction prior to approval of the Final Map, unless otherwise specified: GENERAL / PLANNING AND BUILDING I. All of the terms, covenants and conditions contained herein shall be binding upon and inure to the benefit of the heirs, successors, assigns and representatives of the Applicant as to any or all of the property. 2. Applicant and his/her successors in interest shall, comply, remain in compliance and implement, the terms, conditions and provisions, as are applicable to the property which is the subject matter of this Tentative Subdivision Map and as recommended for approval by the Planning Commission on June 13,2007, and DRC 06-18 approval by the Design Review Committee. The Applicant shall enter into an agreement (Subdivision Improvement Agreement and Supplemental Subdivision Improvement Agreement) with the City, providing the City with such security (including recordation of covenants running with the land) and implementation procedures as the City may require compliance with the above regulatory documents. Said Agreement shall also ensure that, 14-29 Resolution No. 2006- after approval of the final map, the Applicant and his/her successors in interest will continue to comply, remain in compliance, and implement such Plans. 3. Applicant shall schedule a meeting with the current tenants to present alternative rental housing opportunities and assistance in relocation prior to Final Map approval. 4. Prior to recordation of the Final Map, the Applicant shall submit evidence that the following City of Chula Vista noticing forms have been delivered to the existing and prospective tenants, or a schedule detailing required future notifications: a. 10-day notice to all existing tenants of an application of a Public Report - "Form C" (If submitted to State Dept. of Real Estate prior to Final Map approval). b. IO-day Notice to all existing tenants of Final Map approval- "Form D". c. Notice to all prospective tenants of option to purchase/termination of tenancy - "Form E. d. 90-day Notice to all existing tenants of option to purchase/termination of tenancy - "Form F". 5. Any and all agreements that the Applicant is required to enter into hereunder shall be in a form approved by the City Attorney. DRAINAGE & NPDES I. All onsite drainage facilities shall be private. 2. The developer shall enter into an agreement to fully implement NPDES best management practices ("BMPs") to reduce the amount of pollutants entering the city's storm water conveyance system, including but not limited to: a. Installing and using efficient irrigation systems and landscape design; more specifically: I. Employ rain shutoff devices to prevent irrigation after precipitation. ii. Adjust irrigation systems to each landscape area's specific water requirements 111. Using flow reducers or shutoff valves triggered by a pressure drop to control water loss in the event of broken sprinkler heads or lines. IV. Employing other comparable, equally effective, methods to reduce irrigation water runoff. b. Employing integrated best management principles. More specifically, eliminate and/or reduce the need for pesticide use by implementing Integrated Pest Management (IPM), including: (I) planting pest-resistant or well-adapted plant varieties such as native plants; (2) discouraging pests in the landscaping design; (3) distributing IPM educational materials to homeowners/residents. Minimally, educational materials must address the following topics: keeping pests out of 14-30 Resolution No. 2006- buildings and landscaping using barriers, screens, and caulking; physical pest elimination techniques, such as, weeding, squashing, trapping, washing, or pruning out pests; relying on natural enemies to eat pests; and, proper use of pesticides as a last line of defense. c. Educate the Public. More specifically, the Homeowners Association, through Property Management, etc., shall inform residents about the City's non-storm water and pollutants discharge prohibitions. This goal can be achieved by distributing informative brochures (some available free from the City of Chula Vista) to new home buyers and dedicating sections of newsletters to storm water quality issues, as applicable. SEWER 1. The onsite sewer system shall be private. All sewer laterals shall be privately maintained from each building and/or condo unit to the City maintained public sewer main. 2. An inspection and maintenance program shall be developed and implemented by the Owner to prevent blockage of private sewer lines and overflow of sewage to storm drain systems. Developer/Owner shall establish a homeowners association to fund and oversee a contract for the maintenance of the onsite private sewer system. The frequency of maintenance of the sewer system shall be contained in the provisions of the Codes, Covenants & Restrictions (CC&Rs). The City Engineer and Director of Public Works shall approve the provisions of the CC&Rs regarding the onsite private sewer system. STREETS 1. The Owner shall remove and replace driveway on Tobias Drive for compliance with ADA pedestrian access route requirements. Said work shall be done under a Chula Vista construction permit using Chula Vista Construction Standard CVCS-l for driveways. Driveway replacement shall be guaranteed prior to recordation of the Final Map. 2. Damaged curb, gutter and sidewalk along the Project frontage shall be removed and replaced as required by the City Engineer and to the satisfaction of the City Inspectors prior to approval of the Final Map. CC&R'S 1. The Owner shall submit CC&R's as approved by the City Attorney to the City Engineer and Director of Planning and Building for approval prior to approval of the final map. Said CC&R's shall include the following: . Indemnification of City for private sewer spillage. . Listing of maintained private facilities. . The City's right but not the obligation to enforce CC&R's. 14-31 Resolution No. 2006- . Provision that no private facilities shall be requested to become public unless all homeowners and 100% of the first mortgage obligors have signed a written petition. . Maintenance of all walls, fences, lighting structures, paths, recreational amenities and structures, sewage facilities, drainage structures and landscaping. . Implement education and enforcement program to prevent the discharge of pollutants from all on-site sources to the storm water conveyance system. Said CC&Rs shall be consistent with Chapter 18.44 of the Subdivision Ordinance, and shall be recorded concurrently with the final map. 2. The Owner shall submit homeowners association (HOA) budget for review and approval by the City Engineer for the maintenance of the private sewage systems. Said budget shall account for cleaning the sewer once a year with a contingency for emergencies. EASEMENTS 1. All existing easements and irrevocable offers of dedication shall be shown on the fmal map. A title report dated within 60 days of submittal of the final map shall be submitted together with backing documents for all existing public utility easements and offers of dedication. Developer shall submit evidence of noticing to all existing public utility easement holders within the project boundaries as required by the Section 66436 of the Subdivision Map Act. AGREEMENTS 1. The Owner shall enter into an agreement for the following; . Agree to defend, indemnify and hold harmless the City and its agents, officers, and employees, from any claim, action or proceeding against the City, or its agents, officers or employees to attack, set aside, void or annul any approval by the City, including approval by its Planning Commission, City Council or any approval by its agents, officers, or employees wit regard to this subdivision pursuant to Section 66499.37 of the State Map Act provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. . Agree to hold the City harmless from any liability for erosion, siltation or increase flow of drainage resulting from this project. . Agree to ensure that all franchised cable television companies ("Cable Company") are permitted equal opportunity to place conduit and provide cable television service to each lot within the subdivision. Restrict access to the conduit to only those franchised cable television companies who are, and remain in compliance with, all of the terms and conditions of the franchise and which are in further compliance with all other rules, regulations, ordinances and procedures 14-32 Resolution No. 2006- regulating and affecting the operation of cable television companies as same may have been, or may from time to time be issued by the City of Chula Vista MISCELLANEOUS I. The Final Map shall tie the boundary of the subdivision to the California System-Zone VI (NAD '83). 2. Copies of the Final Map in a digital format such as (DXF) graphic file shall be submitted prior to approval of the Final Map. Provide computer aided Design (CAD) copy of the Final Map based on accurate coordinate geometry calculations and submit the information in accordance with the City Guidelines for Digital Submittal in duplicate on 3 y, HD floppy disk prior to the approval of the Final Map. 3. The Owner shall submit a conformed copy of a recorded tax certificate covering the property prior to approval of the Final Map. 4. The Owner shall provide evidence to the satisfaction of the City Engineer of compliance with all tenant noticing requirements per Section 66427.1 of the Subdivision Map Act prior to approval of the fmal map. B. The following Conditions of Approval shall be satisfied by the Developer prior to Building Permit approval unless otherwise noted: I. Obtain approval of a building permit for the balconies and patios, trash enclosure, wooden deck, exterior and interior remodel of each condominium unit, and items listed in the "Property Condition Assessment". 2. The project plans shall include all immediate recommended items to be replaced/repaired as stated in the "Property Condition Assessment", prepared by JCEPIHuang Consulting Engineers, Inc., and shall comply with the Uniform Building Code. The following is a list of the improvements to be completed prior to condominium occupancy of the units: . The entire site shall be refenced with 6-foot tall 'Windowpane' style wood- textured vinyl fencing or other fencing acceptable to the Planning Division of the City. . In accordance with the Tentative Subdivision Map, a 5' -0" tall retaining wall shall be constructed on the east side of the parking lot per City standards. . Install new trash enclosure to meet current City standards. . Install new recreation area between the Club House and parking lot, in accordance with plans submitted to the City. . Construct new wood deck on the north side of the site in accordance with Landscape Plans approved by the City. . Repair/replace the asphalt paved driveway and parking lots and install sections of accent paving as shown on the Landscape Plans. . Following repair and/or replacement of the asphalt paving the pavement shall be seal-coated and restriped. 14-33 Resolution No. 2006- . Submit complete Landscape and Irrigation Plans for City approval. . Complete paving and planting design shall be installed as indicated on the approved Landscape Plans. . The roof of the clubhouse building shall be replaced. . The laundry in the clubhouse building shall be removed and men's and women's restrooms shall be located in its place. . Repair or replace the central hot water heater installed in the clubhouse building. . Paint and restucco all building exteriors as required to meet the standards indicated in the plans approved by the Design Review Committee. . Construct decks and storage closets for all upper units and patios with storage closets for lower units. These shall be in accordance with plans approved as part of the Design Review evaluation. . Replace all kitchen appliances with reputable name brands and replace counter tops, cabinets and sinks. . Replace all bathroom fixtures. . Either the vertical window panels or the adjacent plain stucco wall panels shall be finished in contrasting stucco and built out from the adjacent walls. . Replace all windows with double-glazed units and all exterior doors shall be solid-core. . Repair/replace any water- or pest-damaged building elements and materials, including the stairs, second floor landings, breezeways, fencing, gates and light poles. . Replace the first concrete tread on the west side stairs. . Specify a graffiti resistant treatment for all building surfaces. . Install new dishwasher and stacked washer and dryer in each apartment. . All electrical wiring throughout each unit shall be replaced to meet code, and GFCI protected receptacles shall be installed in the kitchen areas. . When wall and floor/ceiling assemblies are opened to enable replacement of appliances and cabinets, fiberglas insulation should be found to have been installed to attain code-required soundproofmg (STC) and energy insulation ratings of at least 50. Should STC and energy insulation ratings be deficient, additional fiberglas insulation shall be provided within wall and floor/ceiling assemblies to meet City of Chula Vista and UBC requirements. 3. The Project's exterior and interior upgrades for the site shall be constructed in accordance with the approved DRC-06-l8 design review permit. 4. The Developer shall comply with requirements of the approved "Recycling and Solid Waste Management Plan" to the satisfaction of the City's Conservation Coordinator. The plan shall demonstrate those steps the applicant will take to comply with Municipal Code, including but not limited to Sections 8.24 and 8.25, and meet the State mandate to reduce or divert at least 50 percent of the waste generated by all residential, commercial and industrial developments. The applicant shall contract with the City's franchise hauler throughout the construction and occupancy phase of the project. The plan shall 14-34 Resolution No. 2006- incorporate any trash enclosure redesign required for compliance with the City's NPDES permit. 5. The Developer shall show that walls and ceilings meeting the current Uniform Building Code standards regarding fire and sound attenuation have been installed between airspaces of the condominium units to the satisfaction of the City Building Official and Director of Planning and Building. If said walls and ceilings do not meet said standards, then the walls and ceiling shall be modified to conform to the Uniform Building Code. 6. The Developer shall comply with all requirements of the City of Chula Vista Fire Department and the California Fire Code. XI. CONSEQUENCE OF FAILURE OF CONDITIONS If any of the foregoing conditions fail to occur, or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted, deny, or further condition issuance of all future building permits, deny, revoke, or further condition all certificates of occupancy issued under the authority of approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The Applicant shall be notified ten (10) days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable and diligent time frame. XII. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that anyone or more terms, provision, or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. Presented by: Approved as to form;}'y: ,/ ----" ---_.. James D. Sandoval Planning and Building Director H:IPlanninglcase filesI07PCSIPCS-06-04 CC Reso.doc 14-35 ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT AUGUST 7, 2007, Item-L:L PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED REFINANCE AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT PALOMAR APARTMENTS. RESOLUTION OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MOL TIF AMIL Y HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCE AND REHABILITATION OF EXISTING AFFORDABLE UNIT.S.. AT PALOMAR APARTMENTS. I\n~ ACTING COMMUNJT.X *~ELOPMENT DIRECTOR ~\\ CITY MANAGER . IIlfJ r ASSISTANT CITY AGER C, r 4/5THS VOTE: YES D NO ~ BACKGROUND Volunteers of America (VOA), a nation-wide nonprofit organization, is the owner of the affordable apartment complex located at 171 Palomar Street (Attachment 1). The Palomar Apartments consist of 168 units (l, 2 and 3 bedrooms) mostly restricted for very low income households below fifty percent (50%) of the area median income. VOA is looking to refmance the project to conduct minor rehabilitation of the project and keep rents restricted. They have requested that the California Statewide Communities Development Authority (CSCDA) issue multifamily housing revenue bonds in an amount not to exceed $12,000,000. The CSCDA is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City of Chula Vista. CSCDA, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities for affordable housing. However, under the terms of the Agreement, CSCDA may not approve a financing unless the governing body of the Program Participant in whose jurisdiction the project is located (or to be located) approves the project and it's financing. 15-1 AUGUST 7, 2007, Item~ Page 2 of 4 In order to initiate this fInancing request, the City of Chula Vista must: (I) conduct a public hearing (Tax and Equity Fiscal Responsibility Act or TEFRA hearing) on the proposed fInancing and; (2) approve CSCDA's issuance of indebtedness. Therefore, although CSCDA will be the issuer of the tax-exempt obligation for the Volunteers of America the fInancing cannot proceed without the approval of the City of Chula Vista. These flnancings are structured so that neither CSCDA nor the relevant jurisdiction has any fInancial liability. Furthermore, Section 147(f) of the Internal Revenue Code of 1986 requires that the proposed fInancing be approved by a governmental unit having jurisdiction over the area in which the facility to be fmanced is located. A fInancing will be treated as having been approved by a governmental unit if "the applicable elected representative" of such governmental unit approves such issue after a public hearing following reasonable public notice. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed actIvIty for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a signifIcant effect on the environment; therefore, pursuant to Section IS061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION That the City Council conduct the required public hearing regarding CSCDA's intent to issue tax exempt bond obligations for the refInance and rehabilitation of Palomar Apartments and that the City Council adopt a resolution approving the issuance, sale and delivery of multifamily revenue bonds by CSCDA to help fInance the project. BOARDS/COMMISSION RECOMMENDATION Not Applicable DISCUSSION The ProPosed Proiect The Volunteers of America currently owns and operates the Palomar Apartment project located at 171 Palomar St. The project is an existing 168 unit affordable complex originally fInanced through the Department of Housing and Urban Development (HUD). The project is thirty-fIve years old and in need of some minor rehabilitation to ensure continued long term use and viability. The owner can refmance the property using bond fInancing and tax credits to pull enough money out to COVer the rehabilitation costs. Income and Rent Restrictions For the bond funding, Section 142 (d) of the Internal Revenue Services Code, requires a minimum of twenty percent of the rental units in the Project to be available for 15-2 AUGUST 7, 2007, Item~ Page 3 of3 occupancy by persons or families whose income does not exceed 50 percent of the median income for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the area median income (AMI). In each case, the units are to be made available at affordable rents established by the applicable State law. It is proposed that all 168 units will be affordable to and restricted for occupancy by low income households. A total of 138 units will be affordable for very low income households at 50 percent of AMI, which is currently $35,100 a year for a family of four. The remaining 29 units are eligible for occupancy by households up to 80 percent of AMI, by terms of the current HUD Use Agreement. While the targeting has not been finalized for these 29 units, the sponsor anticipates that the units would be restricted to low income households at 60 percent of AMI or less, which is currently $42,120 year for a family of four. The restricted rents will be based upon HUD income limits established for the current fiscal year. Unit No. of Target Income Current Proposed Description Units Group Rent Rent I Bd/I Ba 13 50% AMI $462-$517 $633 I Bd/I Ba 3 60% AMI $517 $813 2 Bd/I Ba 85 50% AMI $527-$590 $758 2 Bd/I Ba 19 60% AMI $590 $911 3 Bd/2 Ba 40 50% AMI $564-$631 $874 3 Bd/2 Ba 7 60% AMI $631 $1,007 Managers' units I N/A N/A N/A It is proposed that the income and rent restrictions for Palomar Apartments will be maintained for a period not less than fifty-five years, extending the afford ability restrictions past the 2013 expiration of the current Section 236 mortgage. The income and rent restrictions outlined above are to be incorporated into the Regulatory Agreements for the bonds, which will be recorded against the property . To ensure no displacement of residents would occur, the residents will be eligible for enhanced Section 8 vouchers upon payoff of the existing FHA mortgage. Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full 55-year compliance period. Proposed Financing ofProiect The owner will be using Tax Exempt Multi-Family Revenue Bonds and Low Income Housing Tax Credit financing to support the majority of the estimated $22 million cost of refinancing and rehabilitating the project. VOA has requested that CSCDA consider the issuance of up to $12 million in private activity bonds. VOA will also apply for 15-3 AUGUST 7, 2007, Item~ Page 4 of 4 approximately $5.7 million in Low Income Housing Tax Credits. The Bonds and Tax Credits would cover 76 percent of the estimated $22 million cost. Developer Equity makes up the difference. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT The proceeds of the bonds will provide acquisition and construction funds for the developer at a lower cost than funds borrowed in a conventional bank loan. The Developer has requested that the CSCDA issue multifamily housing revenue bonds in an aggregate principal amount not to exceed $12,000,000 to provide refmance and rehabilitation financing for the 168 unit residential development. The bonds would be tax exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the project to be fmanced is located. Neither the City nor the Agency would be under any obligation to repay the bond indebtedness or to incur any costs related to the issuance of the bonds. ATTACHMENTS Attachment 1- Project Location Map Prepared by: Amanda Mills, Housing Manager, Community Development Department 15-4 \~\ \ --- '\ 'i. \ .." RESOLUTION NO. RESOLUTION OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PURPOSE OF REFINANCE AND REHABILITATION OF EXISTING AFFORDABLE UNITS AT PALOMAR APARTMENTS WHEREAS, the California Statewide Cornmunities Development Authority (the "Authority") is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June I, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Chula Vista (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Volunteers of America or related entities, has requested that the Authority adopt a plan of fmancing providing for the issuance of multifamily housing revenue bonds in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $12,000,000 in outstanding aggregate principal amount (the "Bonds"), to refinance the acquisition and rehabilitation of a 168-unit multifamily rental housing project, located at 171 Palomar Street, Chula Vista, California, and generally known as Palomar Apartments (the "Project"); and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the members of the City Council (the "Council") are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and WHEREAS, such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and 15-6 WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(1) of the Code and Section 9 of the Agreement; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. That it finds and declares that the above recitals are true and correct. 2. That it approves the issuance, sale, and delivery of multifamily Housing Revenue Bonds by the California Statewide Communities Development Authority for the purpose of refmance and rehabilitation of existing affordable units at Palomar Apartments. 3. That it intends that this Resolution constitute approval of the issuance of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with Section 147(1) of the Code and Section 9 of the Agreement. 4. That it authorizes the City Manager to execute all agreements and documents necessary for the issuance, sale, and delivery of the Bonds for the financing of the Palomar Apartments. 5. That it directs the City Clerk to forward a certified copy of this Resolution and a copy of the affidavit of publication of the hearing notice to: Justin Cooper, Esq. Orrick, Herrington & Sutcliffe LLP 405 Howard Street San Francisco, California 94105 Presented by Approved as to form by ,~tL~ Ann Hix Ann Moore City Attorney Acting Director of Community Development J:\ArtomeyIRESO\COMM DEV\PALOMAR TEFRA 8-7-07.doc 15-7 CITY COUNCIL AGENDA STATEMENT ~\'f:.. CITY OF J~CHULA V1SfA ITEM TITLE: August 7, 2007, Item~ PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS. SUBMITTED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $960,000 FROM HOME INVESTMENT PARTNERSHIP FUNDS FOR FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE A LOAN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CIC LANDINGS, L.P. AND ALL OTHER AGREEMENTS AND DOCUMENTS NECESSARY FOR THE FINANCING OF THE PROPOSED LANDINGS AFFORDABLE APARTMENTS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AFFORDABLE HOUSING REGULATORY AGREEMENT FOR THE 115 AFFORDABLE FOR-SALE UNITS AND A NEW AFFORDABLE HOUSING AGREEMENT FOR . THE 92 AFFORDABLE RENTAL UNITS IN NEIGHBORHOOD R-19 IN OT A Y RANCH VILLAGE ELEVEN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VIST A APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PROPOSED DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 ACTING DIRECTO- O~ ~~UNITY DEVELOPMENT ~ CITY MANAGER I~ V ...- ASSISTANT CITY AGER S) REVIEWED BY: 4/5THS VOTE: YES 0 NO D 16-1 August 7, 2007, Item~ Page 2 of6 BACKGROUND On September 5, 2006, the City of Chula Vista and Brookfield Shea Otay, LLC, a California Lirnited Liability Corporation, entered into an Affordable Housing Regulatory Agreement to provide affordable for-sale housing in Neighborhood R-19 ofOtay Ranch Village Eleven. This Agreement was entered into to satisfY the master developer's affordable housing obligations to provide 207 total affordable units (92 low-income and 115 moderate-income) under the City's Balanced Communities Policy of the Housing Element. After the execution and subsequent recordation of this Agreement, the master developer requested that the City of Chula Vista consider revising the affordable housing development and the related Agreement to allow the affordable units for low-income households to be rental rather than for-sale housing, while continuing to provide homeownership opportunities for moderate-income households. The Landings apartment development (Project) will provide 92 affordable rental units for lower income households, located on the corner of Discovery Falls Road and Crossroads Street in Otay Ranch Village II in Chula Vista (see Attachment I). On March 20, 2007 the City Council directed staff to bring back to Council for its consideration an amendment to the Affordable Housing Regulatory Agreement for Neighborhood R-19 in Otay Ranch Village Eleven replacing the obligation of affordable for- sale units for low-income households with affordable rental units, concurrently with consideration of all other agreements and documents necessary for the fmancing of the proposed rental housing development. Such agreements are being brought for consideration at this time (Attachments 2-4). Chelsea Investment Corporation (Developer) has been selected by the master developer to pursue development of the affordable rental housing on the R-19 site. The Developer is currently in the process of securing fmancing for the project and requested consideration of financial assistance. On March 20, 2007, the City Council adopted a resolution conditionally approving financial assistance of $920,000 from the HOME Investment Partnership Program to Chelsea Investment Corporation for the development of the proposed project. As a part of the financing package, the City of Chula Vista received a request from the Developer to consider the issuance of tax exempt obligations to develop the project. On July 17, 2007, the Housing Authority of the City of Chula Vista approved a Housing Authority Resolution which expressed the Authority's intent to issue multi-family housing revenue bonds in an amount not to exceed $17.5 million to finance the proposed project. At this time, the City Council is asked to hold a public hearing on the question of whether the Housing Authority should issue tax exempt bonds for the financing of the project and to approve the issuance, sale, and delivery of multi-family housing revenue bonds by the Housing Authority at the time a bond allocation is received. If successful in obtaining a bond commitment from the California Debt Limit Allocation Committee (CD LAC), the Developer plans to come back to the Authority to request fmal approval for the issuance of the bonds. 16-2 August 7, 2007, Item~ Page 3 of6 ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in previously adopted Final Second Tier Environmental Impact Report, EIR 01-02. Thus, no further CEQA review is necessary. Additionally, the Environmental Review Coordinator has reviewed the proposed project for compliance with the National Environmental Protection Act due to the use of Federal funds, and has determined that the proposed project will not result in a significant impact on the quality of the human environment. RECOMMENDATION It is recommended that the City Council take the following actions: 1. That the City Council conduct the required public hearing regarding the Authority's intent to issue the tax exempt obligations for the proposed development of existing affordable units at The Landings Apartments. 2. That the City Council adopt a resolution [a] Establishing a new non-CIP project - "Landings Project" and amending the FY 2008 Home Program Budget to appropriate $960,000 in grant funds from Housing and Urban Development to the "Landings Project" for a loan related to the development of the Landings project and expenses related to the processing of the loan [b) authorizing the City Manager to execute a loan agreement by and between the City of Chula Vista and crc Landings, L.P. and all other agreements and documents necessary for the fmancing of the proposed rental housing development [c] authorizing the City Manager to execute an amendment to the existing Affordable Housing Agreement and a new Affordable Housing Agreement for neighborhood R-19 in Otay Ranch Village Eleven, separating out the obligation of 115 affordable for-sale units and 92 affordable rental units. 3. That the City Council adopt a resolution approving the issuance, sale and delivery of multifamily revenue bonds of the Housing Authority of the City of Chula Vista for the proposed development of The Landings affordable apartments, and authorizing the City Manager to execute all necessary documents for processing. BOARDS/COMMISSION RECOMMENDATION On February 28, 2007, the Housing Advisory Commission voted to recommend the development of The Landings at Winding Walk as an affordable rental community and the conditional approval of HOME funds to assist in its fmancing. DISCUSSION The AuuIicant The Chelsea Investment Corporation (CIC) has developed several projects in Chula Vista, primarily in eastern Chula Vista, to satisfy developer inclusionary housing requirements 16-3 August 7, 2007, Item~ Page 4 of6 (Teresina Apartments, Rancho Buena Vista Apartments and Villa Serena). CIC has developed and financed over 5,100 housing units. The company has a strong and experienced team of professionals. CIC has successfully managed low income housing units for over 20 years. The Property The Landings development will be built within the Winding Walk subdivision of eastern Chula Vista. The low-income units will satisfY the requirements of the City's Program for the Provision of Affordable Housing within the Village II community. The development envisions 92 townhome style units with all units affordable to low income households. The proposed development will consist of 92 3-bedroom units, approximately 1,200 SF each. Each unit will include an enclosed 2-car garage, balcony, and full sized appliances. Project amenities include a pool, spa, clubhouse, and a tot lot. The Proposal All 92 units will be rented on a rent restricted basis to households whose income is at or below 30-60 percent of the Area Median Income as determined by HUD. This project will provide a balance of housing opportunities and fulfill a need in Chula Vista for large family rental housing, particularly in the neighborhoods east of Interstate 805, as outlined in the City of Chula Vista Housing Element. Income And Rent Restrictions For the bond funding, Section 142 (d) of the Internal Revenue Services Code requires either a minimum of twenty percent of the rental units in the Project to be available for occupancy by persons or families whose income does not exceed 50 percent of the area median income (AMI) for the San Diego Primary Metropolitan Statistical Area, or alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the AMI. In each case, the units are to be made available at affordable rents established by the applicable State law. Per the Affordable Housing Agreement for the inclusionary obligation, all 92 units must be affordable for low income households. Because of the financing Chelsea is pursuing, the entire project will provide rents even lower than what the City requires. Unit No. of Target Inclusionary Proposed Description Units Income Housing Rents Group Obligation Rent 3 Bd/2 Ba 32 30% AMI $1,035 $479 3 Bd/2 Ba 12 50% AMI $1,035 $838 3 Bd/2 Ba 22 55% AMI $1,035 $928 3 Bd/2 Ba 25 60% AMI $1,035 1,018 MGR 1 N/A N/A N/A Total 92 Restricted 16-4 August 7, 2007, Item~ Page 5 of6 The Chelsea Investment Corporation proposes to maintain the income and rent restrictions for The Landings for a period not less than fifty-five years, exceeding the 30-year term of the bonds. The income and rent restrictions outlined above are to be incorporated into the Regulatory Agreement for the bonds, which will be recorded against the property. Compliance with the income and rent restrictions will be subject annually to a regulatory audit and annual tax credit certification. Compliance with strict property management policies and procedures will ensure that income and rent restrictions will be maintained for the full 55-year compliance period, and will bind all subsequent owners of The Landings, so that the commitment remains in force regardless of ownership. Proposed Financinl! OfProiect Financing and development of The Landings is proposed as a joint private-public partnership. CIC will be using Tax Exempt Multi-Family Revenue Bonds, Low Income Housing Tax Credit financing, and the State Multifamily Housing Program (MHP) to support the majority of the estimated $33.8 million ($367,300 per unit) cost of constructing the project. Chelsea Investment Corporation has requested that the Housing Authority of the City of Chula Vista consider the issuance of up to $17.5 million in private placement bonds, which is the projected maximum construction loan. The permanent bond loan is estimated at approximately $5 million. The initial bond issuance of $17.5 million is necessary to comply with a requirement to bond for at least fifty percent of the project costs (fifty per cent test), which is critical to receipt of the tax credit equity. Chelsea Investment Corporation will apply for approximately $9.6 million in Low Income Housing Tax Credits. The permanent bonds and Tax Credits would cover over 41 percent of the estimated cost. The balance is expected to be provided by land donation, a small City subsidy and State financing. The required documents will be presented to the City/Housing Authority for approval at such time as final approval of the issuance of the bonds and the related bond documents is requested. The proposed total project cost is estimated at $33,790,249 ($367,285 per unit). Below is a summary of development costs and associated sources: COST AMOUNT SOURCE AMOUNT Land Purchase $10,590,000 Construction $14,269,634 Contingencv $625,861 Tax Credit Equity $9,624,000 Permits & Fees $2,684,928 State MHP Loan $7,216,260 Interest/Fees, Financing Costs $1,668,887 Bond $4,948,000 Design}Engineering $755,000 City Loan $920,000 Developer Fees $2,500,000 Land Donation $10,580,000 Reserves, Legal, Other $695,939 Deferred Developer Fee $501,989 TOTAL ESTIMATED COST $33,790,249 $33,790,249 TOTAL SOURCES 16-5 August 7, 2007, Item~ Page 6 of6 The City Council conditionally approved $920,000 in fmandal assistance from HOME Investment Partnership funds, to assist 11 units at the extremely low income range. F onnal appropriations are requested at this time. DECISION MAKER CONFLICT Staffhas reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT The total HOME appropriation of $960,000 is available from the City's allocation of HOME Investment Partnership grant funds. The loan amount of $920,000 will be used towards a loan for CIC, Landings L.P. for costs related to the development of the Landings. The HOME grant funds will also provide an additional $40,000 for project management costs; which will offset staff time and overhead costs related to loan underwriting, legal services, and environmental review. Bond financing is a self-supporting program with the owner responsible for the payment of all costs of issuance and other costs and repayment of the bonds. ,All costs related to the issuance of the bonds will be paid for from bond proceeds or tax credit equity. The bonds will be secured by the project and will not constitute a liability to or obligation of the City or Housing Authority. The City of Chula Vista Housing Authority will receive compensation for its services in preparing the bond issuance by charging an origination fee of 1/8 of 1 % of the bond loan, approximately $21,875. Additionally, staff costs associated with monitoring compliance of the regulatory restrictions and administration of the outstanding bonds will be reimbursed from an annual administrative fee of approximately $7,505 paid to the Housing Authority by the owner. ATTACHMENTS 1. Locator Map 2. Loan Agreement 3. Affordable Housing Agreement (Low Income) 4. Affordable Housing Agreement Amendment (Moderate Income) 5. Disclosure Statement Prepared by: Amanda Mills, Housing Manager, Community Development Department 16-6 ....ll- ...< z::; ~l:l: =0 u'" <~ !::o <... .''''....J'', '>- '. 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Attachment 2 THE LANDINGS LOAN AGREEMENT by and between THE CITY OF CHULA VISTA a public body, corporate and politic and CIC Landings, L.P., a California Limited Partnership 16-8 LOAN AGREEMENT THIS LOAN AGREEMENT AND RELATED RESTRICTED COVENANTS (the "Agreement") is entered into as of August _,2007, between the THE CITY OF CHULA VISTA, a public body, corporate and politic ("City"), and CIC Landings, L.P., a California limited partnership ("Borrower"), and/or its successors or assignees. ARTICLE 1- Recitals 1.1 Authority: City is a municipal corporation, organized under the laws of the State of California, City is authorized to enter into binding agreements for the purpose of protecting public health, safety, and welfare. 1.2 Available Funds: City has been allocated funds from the United States Department of Housing and Urban Development ("HUD") pursuant to the federal government's HOME Investment Partnership Act Program (42 U.S.c. 1274, et seq) which can be used, subject to final HUD approval, for the purposes of funding certain City obligations under this Agreement in accordance with HOME Program regulations (24 C.F.R. 92 et seq) 1.3 The Property: Borrower is or will become the legal owner of the fee title to the real property located on the corner of Discovery Falls Road and Crossroads Street within Otay Ranch Village 11 in the City of Chula Vista, as described in the attached Exhibit A, which is incorporated herein (the "Property"). 1.4 Proiect: Borrower proposes to construct 92 affordable housing units. The majority of the residential units will be restricted as affordable units to low income households through an Affordable Housing Agreement for Village Eleven's Inclusionary Housing Requirement. Units will be further restricted though other funding sources under the terms of a separate Affordable Housing Agreement. The financial contribution from the City, in the form of HOME Program Funds, will restrict 11 units to extremely low income households at or below 30 percent of AMI (the "Project"). The Project will be subject to certain affordable housing obligations pursuant to a Declaration of Covenants, Conditions and Restrictions by and among the Borrower and the City (the "Declaration"). 1.5 Citv Financial Assistance to Borrower: Through the development and operation of the Project, City and Borrower desire to provide extremely low income households with affordable housing opportunities within the City in accordance with the Community Redevelopment Law, the City's redevelopment plans, the City's Consolidated Plan, and the Housing Element of the City General Plan. In order to accomplish this goal, the City desires to make a loan to Borrower from its HOME funds to Borrower for a portion of the costs of the construction of the Project, subject to certain conditions designed to assure the implementation of the Project in accordance with the redevelopment plans, the General Plan, state and federal law, HOME Program regulations and as otherwise provided herein. 1.6 Interests of the City and the Public: The Borrower's acquisition, construction and operation of the Project pursuant to this Agreement, and the fulfillment generally of this Agreement, are in the vital and best interests of the City and the welfare of the residents of the City of Chula 2 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-9 Vista, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. 1.7 Housing Obiectives and Goals: The Project accommodates several of the City's Comprehensive Housing Plan Objectives, which are expressly noted in the Housing Element as priorities for the City. The objectives this Project serves are: (I) Encourage the provision of a wide range of housing choices, particularly within each geographic area of the City (2) The provision of adequate rental housing opportuml1es and assistance to households with low and very low incomes, including those with special needs such as the elderly, handicapped, single-headed households, large families and those "at-risk" ofhomelessness. WHEREFORE, based upon the foregoing recitals and in consideration of their mutual and prospective promises and subject to the terms and conditions hereinafter set forth, the parties do hereby agree as follows: ARTICLE 2 - Definitions The following terms as used in this Agreement shall have the meanings given unless expressly provided to the contrary: 2.1 "Affordable Housing Agreement" means that certain agreement, between the Borrower and the City, which sets forth Borrower's obligations to maintain the Project as an affordable multifamily housing project for low income households. Said Affordable Housing Agreement is not attached to this Agreement.. 2.2 "Borrower" means CIC Landings, L.P., a California limited partnership. The term "Borrower" includes any legally permissible assignee or successor to the rights, powers, and responsibilities of Borrower hereunder, following such assignment and succession, in accordance with Section 11.1 0 of this Agreement. 2.3 "Borrower's Limited Partner" means the limited partner referenced in the Borrower's Partnership Agreement, as approved by the City, in its reasonable discretion, and its successors and assigns. 2.4 "Certificate of Completion" shall have the meaning ascribed in Section 9.8 of this Agreement. The form of the Certificate of Completion shall be as approved by the City Attorney, in his/her reasonable discretion. 2.5 "City" shall mean the City of Chula Vista, a municipal corporation, organized under the laws of the State of California and having its offices at 276 Fourth Avenue, Chula Vista, California 91910. 2.6 "City Loan" means the loan for an amount of Nine Hundred Twenty Thousand Dollars ($920,000) by the City to Borrower, which loan is the subject of this agreement. 3 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-10 2.7 "City Note" shall mean the promissory note, in a form and format as approved by the City Attorney, in his/her reasonable discretion. 2.8 "City Trust Deed" shall mean that certain deed of trust which secures the Borrower's obligations pursuant to the City Note and which shall be recorded in the order of priority set forth in this Agreement), in a form and format as approved by the City Attorney, in his/her reasonable discretion. 2.9 "Declaration" shall mean the Declaration of Covenants, Conditions and Restrictions between the Borrower and the City. 2.10 "Developer" means Chelsea Investment Corporation, a California corporation, and its successors and assigns, as approved by the City, in his/her reasonable discretion. 2.11 "Development Fee" and "Deferred Development Fee" shall have the meaning ascribed in Section 8.1. 2.12 "Bonds" means the Multifamily Housing Revenue Bonds issued by the Housing Authority of the City of Chula Vista in the aggregate principal amount of $6,004,000. 2.13 "Effective Date" means the date first appearing in this Agreement above. 2.14 "Gross Revenue" shall have the meaning ascribed in Section 4.5. 2.15 "Housing Manager" means the Housing Manager of the Community Development Department of the City Of Chula Vista. 2.16 "Partnership Agreement" means the Limited Partnership, for the Borrower, as such may be amended or supplemented from time to time, and as approved by the City, in its reasonable discretion. 2.17 "Project" shall have the meaning ascribed in Section 1.4 of this Agreement. 2.18 "Project Budget" means that certain budget referred to in Section 4.11 of this Agreement and attached hereto as Exhibit C, which is incorporated herein by this reference, which budget may not be materially changed without the prior approval of the Director of Community Development , which approval shall not be unreasonably withheld (a material change is a change that causes the total Project cost to increase or decrease by three percent (3%) or more from what is shown in Exhibit C. 2.19 "Project Pro Forma" means that certain Project Pro Forma referred to in Section 4.11 of this Agreement and attached hereto as Exhibit D, which is incorporated herein by this reference, which pro forma Borrower represents to be a good faith projection of the information set forth therein. 2.20 "Property" means that certain real property legally described in Exhibit A which is attached hereto and incorporated herein. 4 Landings Loan Agreement and Restrictive Covenants. Clean. 7.30.07 16-11 2.21 "Property Manager" means the property management company managing the Project, whether or not the Project is managed by Borrower. The term Property Manager shall not mean the on-site property manager. 2.22 "Reasonable Operating Expenses" shall have the meaning ascribed in Section 4.5 (b) (ii). 2.23 "Regulatory Agreement" or "Bond Regulatory Agreement", the terms being synonymous, means the Regulatory Agreement by and among the Borrower, the Bond Issuer. 2.24 "Residual Receipts" shall have the meaning as ascribed in Section 4.5 (b). 2.25 "Restricted Units" means the residential units in the Project whose rent levels and occupancy are to be restricted as set forth in this Agreement. 2.26 "Schedule of Performance" means that certain Schedule of Performance attached hereto as Exhibit F and incorporated herein, as the same may be modified or extended pursuant to Sections 9.4 and 13.3 hereof. 2.27 "TCAC Regulatory Agreement" means that regulatory agreement entered into by and between the Borrower and the TCAC, as that term is hereinafter defined, concerning the Project. 2.27 "Title Insurer" means the title insurance company chosen by the Borrower for the Project, as reasonably approved by the City. ARTICLE 3 - Financing of the Project 3.1 Summary of Financing: Borrower's current sources and uses of funds summary for the Project is attached hereto as Exhibit B, which is incorporated herein. Borrower contemplates a total project budget of approximately $37,298,627. Borrower will obtain construction and permanent loan financing funded by the Chula Vista Housing Authority ("Bond Issuer/Lender"), in the aggregate principal amount of $6,004,000, which are planned to be issued by the Bond Issuer/Lender in the approximate aggregate amount of $6,004,000 (the "Bond Loan"). City shall loan Borrower the amount of $920,000, secured by the City Trust Deed, which shall be subordinate to the Bond Loan funded by the Bonds. Borrower represents that it will receive a Tax Exempt Reservation Letter reserving $11,863,000 of "4%" tax credits for the Project from the California Tax Credit Allocation Committee ("TCAC") which will support an equity investment in Borrower by Borrower's Limited Partner in the amount of approximately $11,863,000, pursuant to the terms and conditions of the Partnership Agreement. Borrower shall also obtain a loan from the State of California Multi-Family Housing Program (MHP) of approximately $6,931,052.00. In addition, the Developer will defer a portion of its Developer Fee in the amount of $620,575 to finance the Project. City acknowledges that the foregoing amounts (other than the amount of the City Loan) are approximations and may change, provided, however, the maximum amount of debt senior to the City Loan shall not increase by more than 10% in aggregate. In no event shall the City Loan fund if the amount of debt senior to the City Trust Deed exceeds the limit referenced above, without the further written consent of the City. 5 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-12 ARTICLE 4- City Loan 4.1 Amount and Disbursement: Subject to the terms and conditions set forth herein, the City hereby commits to loan to Borrower the total sum of $920,000 (the "City Loan"), to be applied solely for payment of a portion of the cost of the construction ofthe Project. 4.2 Interest: The outstanding principal amount of the City Loan shall accrue simple interest at the rate of three (3%) percent per annum. 4.3 Borrower's Obligations.: The following conditions must be fully satisfied as reasonably determined by the City in order to obligate the City to make each disbursement of the City Loan: a. Borrower shall have submitted a complete application for a preliminary allocation of "4%" low-income housing tax credits from the California Tax Credit Allocation Committee in the amount set forth in the Sources and Uses attached hereto as Exhibit B, or such greater or lesser amount as may be mutually agreed to by the parties. b. Borrower shall have acquired fee title to the Property concurrently with the first disbursement ofthe City Loan. c. Borrower shall have received a firm commitment for an equity contribution from Borrower's Limited Partner in Borrower of not less than $11,863,000, which number is subject to adjustment pursuant to the Partnership Agreement, or such lesser amount as may be mutually agreed to by the parties. The City shall not unreasonably withhold or delay its consent to Borrower's request to approve such a lower amount. d. Borrower shall have obtained a firm commitment for the Bond Loan in an amount equal to the net proceeds of the Bonds or such greater or lesser amount as may be mutually agreed to by the parties, and the MHP Loan shall have closed or be ready to close concurrently with the City Loan. e. Borrower shall have duly executed (and acknowledged, if applicable) the City Note, the City Trust Deed, the Declaration and the Affordable Housing Agreement, and shall have submitted the same into the escrow established for the Borrower's acquisition of the Property, and the City Trust Deed, the Declaration and Affordable Housing Agreement shall be ready to be recorded concurrently with the recording of the grant deed conveying title to the Property to the Borrower as an encumbrance to the Property, subordinate only to the liens securing the Bonds, the MHP Loan, the Bond Regulatory Agreement and other non monetary encumbrances approved by the City. f. Borrower shall have submitted to the City, and City shall have reviewed and approved, in its reasonable discretion, any and all loan documents, regulatory agreements or grant contracts to be executed by or otherwise to be binding upon City or Borrower in connection with its acquisition of the Property, its construction and operation of the Project and/or its financing thereof, including without limitation the Bond Loan Documents, the MHP Loan Documents, the regulatory agreement to be executed and recorded in favor of the TCAC (the "TCAC Regulatory Agreement"), 6 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-13 and the Partnership Agreement of the Borrower and documents executed pursuant thereto, such as guaranties and funding agreements. g. Borrower shall have provided the City with satisfactory evidence that Borrower's general and limited partners have approved this Agreement and the related City Loan documents and authorizing Borrower's signatories to execute this Agreement and the related City Loan documents on its behalf. h. The Title Insurer or another title insurance company reasonably acceptable to the City shall have unconditionally committed to issue the Lender's Policy to the City in accordance with Section 4.9 hereof. I. Borrower shall have satisfied all other obligations under this Agreement required to be performed prior to the closing on the City Loan, and shall not be in default in any of its obligations under the terms of this Agreement. All representations and warranties of Borrower contained herein shall be true and correct in all material respects on and as of the date of the disbursement of the City Loan as though made at that time. J. At least 60 days shall have passed since the City's final approval of this Agreement. Alternatively, the Borrower shall have provided to the City (i) an opinion of legal counsel, in a form and from legal counsel which is reasonably satisfactory to the City Attorney, that the Project is not a "low rent housing project" subject to the requirements of Article XXXIV of the California Constitution, or (b) an agreement in a form and from a party which is reasonably satisfactory to the City, in which the party agrees to indemnify, defend and hold harmless the City from any losses or liability arising from a legal claim that the City loan violates the provisions of Article XXXIV of the California Constitution. 4.4 Source of City Loan: The source of the City Loan is to be obtained by City from HUD pursuant to the federal government's HOME Investment Partnership Act Program (42U.S.C. 12741 et seq) hereinafter referred to as "the HOME Program". Pursuant to the HOME Program requirements, out of the total of ninety-two (92) units in the Project, eleven (II) three- bedroom units are being assisted with HOME funds (the "HOME assisted units") for extremely low income households and must meet all of the HOME requirements for the term of the affordability restrictions on the units. The specific units to be designated HOME- assisted units may change from time to time in Borrower's sole discretion, known as "floating units", provided that the aggregate number and category of said units remains the same. 4.5 Repayment: Payments under the City Loan shall be made as follows: a. Commencing on the Initial Payment Date (defined below), payment of principal and interest on the City Note shall be made, on an annual basis, in an amount equal to fifty percent (50%) of the "Residual Receipts" (defined below) derived from the Property and/or the operation of the Project. Such amounts shall be paid on a priority basis to all other debt service on the Property, except for the Bond Loan funded with the proceeds of the Bonds and the Deferred Development Fee (as defined below) if any. Residual 7 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-14 Receipts shall be calculated by Borrower each and every year commencing with the first anniversary of the issuance of the Certificate of Completion by the City. The fifty percent (50%) Residual Receipts payments, if any, shall be made on or before thirty (30) days after the later of (i) the first year anniversary of the issuance of the Certificate of Completion by the City or (ii) the first year anniversary of the date on which the Deferred Development Fee, if any, has been paid in full (the "Initial Payment Date"), and on or before 30 days after each subsequent yearly anniversary of the Initial Payment Date. b. "Residual Receipts" is specifically defined as the "Gross Revenue" (as defined below) from the Project minus the "Reasonable Operating Expenses" (as defined below) for the same period. (i) "Gross Revenue" shall mean all revenue, income, receipts, and other consideration actually received from operation and leasing of the Project. Gross Revenue shall include, but not be limited to: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, all cancellation fees; proceeds from vending and laundry room machines; the proceeds of business interruption or similar insurance to the extent not applied to the Bond Loan; the proceeds of casualty insurance to the extent not utilized to repair or rebuild the Project or applied to the Bond Loan; and condemnation awards for a taking of part or all of the Project for a temporary period to the extent not applied to the Bond Loan or used to repair or restore the Project. Gross Revenue shall not include tenants' security deposits, loan proceeds, capital contributions or similar advances or payments from reserve funds. (ii) "Reasonable Operating Expenses" shall include any and all reasonable and actually incurred costs associated with the ownership, operation, use or maintenance of the Property, calculated in accordance with generally accepted accounting principles. Such expenses may include, without limitation, property and other taxes and assessments imposed on the Project; premiums for property damage, liability and business interruption insurance; utilities not directly paid for by the tenants including, without limitation, water, sewer, trash collection, gas and electricity, maintenance and repairs including, without limitation, pest control, landscaping and grounds maintenance, painting and decorating, cleaning, general repairs, and supplies; tenant relocation costs and expenses; license fees or certificate of occupancy fees required for operation of the Project; general administrative expenses directly attributable to the Property including, without limitation, advertising and marketing, security services and systems, and professional fees for legal, audit and accounting; property management fees and reimbursements including on-site manager and assistance manager expenses; any fees payable to Borrower's Limited Partner pursuant to the Partnership Agreement, including but not limited to the Asset Management Fee, as such terms are defined in the Partnership Agreement, debt service on any loan made to the Borrower by any partner of the Borrower to cover operating expenses; a reasonable property management fee, cash deposited into a reserve for capital replacements of the Project improvements and an operating reserve (and such 8 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-15 other reserve accounts required with respect to the Bond Loan) in such amounts as are required by the Bond Issuer/Lender and as may be reasonably required by Project equity investors; tenant services costs; debt service payments (excluding debt service due to City from Residual Receipts of the Project) on financing for the Project; reasonable supplemental management fees; and payment of the Deferred Development Fee. In no event shall expenditures, including attorneys' fees or litigation costs, normally required to be paid out of the Replacement Reserve, be treated as Reasonable Operating Expenses unless specifically approved in writing by the City. For purposes of the foregoing definition of "Reasonable Operating Expenses," any property management fee or partnership management fee which is paid to Borrower or an affiliate of Borrower shall at no time exceed an amount as is customary and standard for affordable housing projects similar in size, scope and character to the Project. Notwithstanding the foregoing, for purposes of this calculation, Reasonable Operating Expenses shall not include the following: principal and interest payments on any debt subordinate to the City Note (except debt service on loans made to the Borrower by a partner to cover operating expenses, as provided above), depreciation, amortization, depletion or other non-cash expenses, incentive partnership asset management fees payable to the Borrower or its affiliate (other than the supplemental management fee described above), or any amount expended from a reserve account. In the event that any of the above costs is incurred partially with respect to the Project and incurred partially with respect to the commercial retail development located on the Property, the parties shall mutually agree upon an allocable portion of such costs which shall be deemed Reasonable Operating Expenses of the Project for the purposes ofthis Agreement. c. The fifty percent (50%) of Residual Receipts remaining after the annual Residual Receipts payments on the City Note may be retained and used by Borrower in Borrower's sole discretion. d. Except as otherwise expressly provided hereunder, Borrower's obligation to repay the City Loan shall be limited to Borrower's annual payment, until the City Loan is repaid in full, of fifty percent (50%) of the Residual Receipts as described above, to be applied to the payment of the City Loan for a period from the completion of the Project until the date which is fifty-five (55) years following the date of the City's issuance of the final Certificate of Completion for the Project (but in no event later than sixty (60) years from the date of execution of the City Note) (the "Conditional Maturity Date"). Upon the Conditional Maturity Date, City shall have the option, at any time, in its sole discretion, but after good faith discussions with Borrower as to available options, upon ninety (90) days' written notice to Borrower, to (a) declare the remaining balance of all amounts owed under the City Note immediately due and payable, or (b) to require installment payments under the City Note based upon (i) a restated principal balance comprised, in the aggregate, of any and all outstanding principal and interest under the City Note existing as of the date of its election, (ii) a prospective fixed interest rate per annum equal to the prime rate then in effect for Bank of America, San Diego office, or such other rate mutually agreed to by the City and Borrower, and (iii) monthly installments of principal and interest paid over the course of an amortization schedule to be determined by the City in its sole discretion, 9 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-16 not to be less than ten (10) years. In the event that City elects repayment approach (b), Borrower agrees to execute an amendment to the Note in favor of City reflecting the amended repayment terms described above. e. Notwithstanding the foregoing, in the event that Borrower, or any successors thereto, is in default under this Agreement pursuant to Section 12.1 hereof, the City shall have the right in its sole discretion, to declare immediately due and payable all outstanding principal, interest and other sums due under the City Note, or to pursue any and all other remedies provided herein, under the City Note, City Trust Deed, or the Affordable Housing Agreement, or as otherwise provided at law or in equity. 4.6 Prepavment: Borrower may prepay the principal and any interest due under the City Note prior to or in advance of the time for payment thereof as provided in the City Note, without penalty; provided, however, that Borrower acknowledges that certain provisions hereof and the provisions of the Affordable Housing Agreement and the Regulatory Agreement will be applicable to the Project in accordance with their respective terms even though Borrower may have prepaid the City Note. 4.7 Assumotion: In the event the Project is sold or transferred as approved by the City or otherwise permitted pursuant to Section 11.1 0 hereof, the City Loan shall be fully assumable by the approved or permitted transferee. 4.8 Use of Loan Proceeds: City Loan proceeds shall be disbursed by City and shall be used by Borrower only to pay for a portion of the cost of the construction of the Project. 4.9 Lien Prioritv. Title Insurance: As a condition to the obligations of City to fund the City Loan, there shall be no liens or encumbrances upon the Property having priority over the City Trust Deed, other than: (a) the deed of trust securing the Bond Loan (b) the Affordable Housing Agreement; (c) the Bond Regulatory Agreement; (d) the MHP Trust Deed; (e) the TCAC Regulatory Agreement and (f) those existing non-monetary encumbrances which are disclosed in title reports delivered to City and which have not been objected to by the City in writing. Such priority shall be evidenced by an ALTA lender's insurance policy, including title endorsements reasonably requested by the City with liability equal to the amount of the City Loan, or such other amount as may be mutually agreed to by the parties (the "Lender's Policy") to be issued to City by Borrower to Title Insurer at the close of escrow for the Borrower's acquisition of the Property. Borrower shall be responsible for the cost of the Lender's Policy, which may be paid for from the proceeds of the City Loan. 4.1 0 Subordination: Refinancing: City agrees to take such actions as may be necessary to subordinate the City Trust Deed to the Bond Loan or any future refinancing(s) thereof; provided, however, that any such subordination to the Bond Loan shall be evidenced by a recorded subordination agreement containing such notice, cure, loan purchase or assumption and Project purchase rights as may be reasonably required by the City in a form to be approved by the City Attorney, which approval shall not be unreasonably withheld or delayed. In no event, shall the City be required to subordinate to debt in excess of that referenced within this Agreement as being senior to the City Deed of Trust. 4.11 Borrower's Evidence of Financial Caoabilitv: The anticipated sources and uses of funds for acquisition of the Property and construction of the Project are set forth in the Project Budget 10 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-17 (Exhibit C). The financial projections for the Project are set forth in the Project Pro Forma (Exhibit D). The City acknowledges that the numbers in the foregoing exhibits may change, subject to reasonable City approval of such changes, which approval shall not be unreasonably withheld. Upon request but in no event later than the disbursement of the City Loan proceeds, Borrower shall submit to the City's Housing Manager evidence reasonably satisfactory to the City's Housing Manager that Borrower has the financial capability necessary for the acquisition of the Property and the construction of the Project thereon in accordance with this Agreement, the Project Budget, and the Project Pro Forma. Such evidence of financial capability shall include the following: a. Copy of the Partnership Agreement, as amended from time to time, with the approval of the City, which approval shall not be unreasonably withheld, and other documents evidencing commitments for equity financing. b. Copy of the guaranteed maximum cost construction contract between Borrower and its general contractor for all of the improvements required to be constructed by Borrower hereunder, which shall be deemed to be certified by Borrower to be a true and correct copy thereof. c. Copy of the regulatory agreement to be required by TCAC, and other verifiable documentation that Borrower will receive an allocation of "4%" low income housing tax credits with respect to the Project. d. Copies of all senior financing documentation, including the Bond documents, the TCAC Regulatory Agreement, the MHP Loan Documents, and all other documents required to finance and acquire the Property and Project. 4.12 Reports and Accountimr of Residual Receipts. a. In connection with the annual repayment of the City Loan, commencing upon the Initial Payment Date, the Borrower shall furnish the City with an audited statement duly certified by an independent firm of certified public accountants approved by the City, setting forth in reasonable detail the computation and amount of Residual Receipts during the preceding calendar year. b. The Borrower shall keep and maintain, in accordance with Section 13.4 hereof, full, complete and appropriate books, records and accounts necessary or prudent to evidence and substantiate in full detail Borrower's calculation of Residual Receipts. All such books, records, and accounts shall be open to and available for inspection by the City, and its auditors or other authorized representatives in accordance with Section 13.4 hereof. c. Such other and further records and documentation as may be required by the City in its reasonable discretion to verify the amount of the Residual Receipts. 11 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-18 ARTICLE 5 - Note and Deed of Trust 5.1 Security for Loan: Borrower's obligations to repay the City Loan shall be evidenced by the City Note, and shall be subject to the terms and conditions contained therein. The City Note shall provide for simple interest at the rate ofthree percent (3%) per annum. Among other things, the City Note shall further provide that such Note is non-recourse to the Borrower and the partners of Borrower and that payments of principal and interest shall be made only from fifty percent (50%) of the Residual Receipts (as defined in Article 4 hereof). The City Note shall be secured by the City Trust Deed encumbering the Property, which shall be junior and subordinate to the liens securing the Bond Loan and the State Multi-Family Housing Program Loan, the TCAC Regulatory Agreement, the Bond Regulatory Agreement and the Affordable Housing Agreement. The City Trust Deed shall further provide that the occurrence of any default pursuant to Section 12.1 of this Agreement shall constitute a "default" or "event of default" under such Trust Deed. Prior to the close of escrow for the Borrower's acquisition of the Property, Borrower shall execute and deliver to City the City Note and the City Trust Deed. The City Trust Deed shall be recorded with the Office of the San Diego County Recorder in accordance with City's instructions to escrow. Borrower shall be responsible for any and all of City's escrow, title and recording costs arising in connection with the City Loan, such costs to be paid by Borrower through escrow. 5.2 Nonrecourse Oblil!ation: Following the timely completion of the construction of the Project, measured by the timely filing of a Certificate of Completion, nothing herein contained shall be deemed to cause Borrower (or any of its partners, or any of their respective directors, officers, employees, partners, principals or members) personally to be liable to payor perform any of its obligations evidenced hereby, and the City shall not seek any personal or deficiency judgment on such obligations, and the sole remedy of the City with respect to the repayment of the City Loan shall be against the Property; provided, however, that the foregoing shall not in any way affect any rights the City may have (as a secured party or otherwise) hereunder or under the City Note, City Trust Deed, or any other rights the City may have to: (a) recover directly from the Borrower any funds, damages or costs (including, without limitation, reasonable attorneys' fees and costs) incurred by the City as a result of fraud, intentional misrepresentation or intentional waste by Borrower; or (b) recover directly from the Borrower any condemnation or insurance proceeds, or other similar funds or payments attributable to the Property which under the terms of the City Trust Deed should have been paid to the City, and any costs and expenses incurred by the City in connection therewith (including, without limitation, reasonable attorneys' fees and costs). 12 Landings Loan Agreement and Restrictive Covenants.C1ean.7.30.07 16-19 ARTICLE 6 -Disbursement of City Loan 6.1 Disbursement: Upon the removal and approval of all contingencies by the City, as required under the terms of Section 4.3 of this Agreement and upon the acquisition of the Property, the City shall fund and disburse ninety percent (90%) of the principal amount of the City Loan. The balance of the City Loan shall be funded upon lease up of 90% of the Project, including but not limited to eleven (II) HOME units. ARTICLE 7 - HOME Requirements 7.1 Requirements: Because the source of the City Loan is funds to be obtained by City from HUD pursuant to the federal government's HOME Program, Borrower is required to construct and operate the entire Project in compliance with all requirements of the HOME Program and the HOME Regulations (24 C.F.R. 92 et seq.) as said regulations may be amended or suspended from time to time, whether or not such requirements are set forth in this Agreement. Not by way of limitation the foregoing, in compliance with 24 C.F.R 92.504(c), from the Effective Date of this Agreement through the end of the term that the HOME-assisted units are required to remain affordable pursuant to the HOME Regulations, Borrower and Developer, as the general partner of the Borrower, shall comply with all of the following requirements: a. Use of the HOME Funds: HOME funds shall be used only for eligible costs (see, e.g., 24 C.F.R. 92.20, 92.214) in accordance with the Project Budget and Project Pro Forma; all pre-construction and construction activities shall be completed within times referenced in the Schedule of Performance attached hereto, as said times may be extended in accordance with HUD Regulations. b. Affordabilitv: The HOME-assisted units shall meet the affordability requirements of the HOME Regulations (24 C.F.R. 92.252), the TCAC Regulatory Agreement (as defined below) or this Agreement or the Bond Regulatory Agreement, whichever is more restrictive. c. Proiect Requirements: Borrower shall comply with all project requirements set forth in CFR 92. (the HOME Regulations), as applicable in accordance with the type of project assisted, or with the provision of this Agreement, whichever requirements are most restrictive. d. Housing Oualitv Standard: Borrower shall maintain HOME-assisted units in compliance with applicable Housing Quality Standards and local housing code requirements or the provisions of this Agreement, whichever requirements are more restrictive. e. Affirmative Marketing: Borrower shall perform those affirmative marketing responsibilities set forth in 24 C.F.R. 92.351 or in the marketing plan described in this Agreement, whichever are more restrictive. f. Records and Reports: In addition to the other prOVlSlons of this Agreement, including without limitation Section 4.12 (b) hereof, Borrower shall provide to City 13 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-20 all records and reports relating to the Project that my be reasonably requested by City in order to enable it to perform its record keeping and reporting obligations pursuant to Section 92.508 and 92.509 of the HOME Regulations. g. Enforcement A~eement: In addition to the other provisions set forth herein, City shall have the authority to enforce Borrower's obligation to comply with the HOME Investment Partnership Act Program and the HOME regulations as set forth in this Agreement. h. Duration of Covenants Regardinl? HOME-Assisted Units: In accordance with the applicable requirements of 24 Part 92, concerning the term of affordability, the HOME Regulations shall remain in full force and effect for a term of twenty (20) years measured from the effective date of the Declaration, which shall commence upon the timely completion of the Project and timely lease up of the Project as required under the provisions of the TCAC Regulatory Agreement. As used herein, the term of this Agreement shall be the twenty-year term of the affordability restrictions. 1. HousinlJ; Ouality Standards. Borrower represents and warrants that, to the extent the Project assists eligible tenants, that said housing shall be maintained, at all times during the term of the Agreement, in complete compliance with all housing quality standards contained within 24 CFR 92.251. Further, in any housing that is newly constructed or substantially rehabilitated as a result of this Project, Borrower warrants that all construction meet or exceed the applicable local codes and construction standards, including zoning and building codes of the City ofChula Vista as well as the provisions of the Model Energy Code published by the County of American Building Officials. Borrower hereby consents to periodic inspection by City's designated inspectors and/or designees during regular business hours, including the Code Enforcement Agents of the City of Chula Vista, to assure compliance with said zoning, building codes, regulations, and housing quality standards. Borrower agrees to comply with the provisions of 24 CFR 92.251, whether or not contained in this Section. j. Limitation of Use of Funds for Religious Purooses. Borrower represents and warrants that it will fully comply with any and all requirements and limitations contained in 24 CFR 92.257, as amended, from time to time. Borrower further represents, warrants and agrees that Project funds will not be used for any purpose proscribed in 24 CFR 92.257, as amended. k. Approval of City Disclosure Statement. This Agreement is subject to approval by the Housing Manager of an executed disclosure statement of Borrower showing the absence of any prohibited conflicts of interest as required by federal law . City's Housing Manager may, in his/her sole discretion, disapprove of said disclosure statement on or before recordation of the Deed of Trust. In the event of such disapproval, this Agreement shall be terminated and of no further force and effect. I. Administrative Requirements. Borrower shall strictly comply with the administrative requirements contained within 24 CFR Section 92.505, including, but not limited to, the requirements of OMB Circular No. A-87 and the requirements of 24 CFR Part 85, Section 85.6, 85.12, 85.20, 85.22, 85.26, 85.32, 85.33, 85.34, 85.36, 85.44, 14 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 1 6-21 85.51, and 85.52. Further, Borrower covenants (if it is a nonprofit organization) to comply with the OMB Circular No. A-122 and the applicable provisions of OMB Circular No. A-IIO. Copies of said OMB Circulars are on file in the offices of City and are available for inspection and copying by Borrower. Borrower further agrees that should the administrative requirements contained in Section 92.505 be amended and/or changed from time to time by HUD, that Borrower will comply with the terms and conditions of such changed and/or amended administrative requirements. m. Records and Reports. Borrower shall supply City, annually, on July 1st of each year during the term of this Agreement, with such records and reports as are required and are requested by City to aid it in complying with the reports and record keeping provisions, terms and conditions of24 CFR 92.508 and 92.509, as amended from time to time, and any and all other requirements of this Agreement. The records and reports include, but are not limited to the following: (I) Amount of funds expended pursuant to this Agreement; (2) Eligible Tenant information, including yearly income verifications; (3) Housing payments charged to resident tenants, to the extent applicable; (4) On-site inspection results; (5) Affirmative marketing records; (6) Insurance policies and notices; (7) Equal Employment Opportunity and Fair Housing records; (8) Labor costs and records; (9) An audited income and expense statement and balance sheets for Borrower; (10) An audited income and expense statement and balance sheets for the Project; (II) A Management Plan for the calendar year in which the report is prepared showing anticipated rental income, other income, expenses, anticipated repairs and replacements to the Project, timing of such repairs and replacements, insurance maintained on behalf of the Project, and such other matters as City shall require, in its sole discretion; (12) Federal and State income tax returns for the calendar year, ending on the preceding December 31st; (13) Annual analysis of reserves for repair and replacement; (14) Annual certification and representation regarding status of all loans, encumbrances and taxes; (15) Annual statement regarding condition of the Property and disclosing any known defects; (16) An OMB A-B3 financial audit; (17) A report or reports, certifYing compliance with the terms and provisions of the Section 3 requirements, as set forth in this Agreement and certifYing compliance with the provisions of federal law as it relates to Section 3, whether or not specifically set forth herein; and (18) Such other and further information and records as City and/or HUD shall request in writing from Borrower. [NOTE: As to items (12), (13), and (14), drafts may be initially submitted if the fmal documents are not available at the stated deadline(s). However, final documents must be submitted when available.] Time is of the essence in supplying each and every report required to be supplied to City. The parties agree that a fee of $25 .00 per day shall be paid by Borrower to City for each day that each report is delinquent. The parties agree that multiple fees may be charged at anyone time, depending upon the 15 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-22 number ofreport(s) and/or information that is delinquent. The parties agree that a fee of $25.00 per day, per report and/or information is a reasonable estimation of the damages that will accrue to City as a result of the failure of Borrower to timely submit the required information and/or reports and that said fees shall be treated as liquidated damages by the parties, in anticipation of the damages that will be incurred by City as a result of a breach by Borrower. The parties further agree that it would be difficult, if not impossible, to determine the exact actual amount of damages suffered by City in the event of a breach by Borrower in the reporting requirements of this Agreement. Notwithstanding the foregoing or anything to the contrary contained herein, City shall give Borrower prior written notice of any report and/or information that Borrower has failed to provide City pursuant to this Section and Borrower shall have thirty (30) days to provide such report and/or information to City prior to the assessment of any liquidated damages. n. Monitoring of Proiect Activities. Borrower agrees to allow City, upon such prior written notice and during regular business hours, such reasonable access to review and inspect Borrower's activities under this Agreement as City shall require to perform its monitoring duties under the provisions of 24 CFR Part 92, as amended, from time to time. City shall monitor Borrower's activities without liability for said inspection and review. o. Federal and State Reauirements. Borrower represents, warrants and agrees that it will fully comply, during the term of this Agreement, with any and all HOME requirements including, but not limited to the requirements of24 CFR Part 92, 24 CFR Section 92.351 (Affirmative Marketing), 92.352 (Environmental Review), 92.353 (Displacement, Relocation and Acquisition Residential, Antidisplacement and Relocation Plan), 92.354 (Labor), 92.356 (Conflict of Interest), and 92.358 (Flood Insurance). Borrower further warrants, represents and agrees that should said Program requirements be changed by HUD, from time to time, that Borrower will comply with said changed and amended regulations. Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project to the extent required by Federal and California law. p. Affirmative Marketing. Borrower shall, at all times during the term of this Agreement, comply with all of the provisions of Section 24 CFR 92.351 and the affmnative marketing procedures adopted by City, including, but not limited to, all requirements and procedures referenced in said Section 24 CFR 92.351 (b), amended from time to time. Borrower shall maintain records to verify compliance with the applicable affirmative marketing procedures and compliance. Such records are subject to inspection by City during regular business hours upon written notice from the City to Borrower. q. Equal Opportunity and Fair Housing Programs. During the term of this Agreement, Borrower agrees as follows: (1) Borrower will not discriminate against any employee, person, or applicant for employment and/or housing because ofrace, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Borrower will take affirmative action to ensure that applicants are employed and/or are housed, and that employees or applicants are treated during employment and/or housing, without regard to their race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Such action shall include, but is not limited to the following: employment, upgrading, demotion, or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by City setting forth the provisions of this nondiscrimination clause. 16 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-23 (2) Borrower will, in all solicitations or advertisements for employees and housing placed by on or behalf of Borrower, state that all qualified applicants will receive consideration for employment without regard to race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. (3) Borrower will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will be binding upon each subcontractor, provided that the foregoing provision shall not apply to contracts or subcontracts for standard commercial supplies of raw materials. (4) Borrower hereby agrees to comply with the Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations. City will provide technical assistance and copies of the referenced programs upon request. 24 CFR Section 92.350. (5) All activities carried out by Borrower and/or agents of Borrower shall be in accordance with the requirements of the Federal Fair Housing Act. The Fair Housing Amendments Act of 1988 became effective on March 12, 1989. The Fair Housing Amendments Act of 1988 and Title VIII of the Civil Rights Act of 1968, taken together, constitute The Fair Housing Act. The Act provides protection against the following discriminatory housing practices if they are based on race, sex, religion, color, handicap, familial status, or national origin: denying or refusing to rent housing, denying or refusing to sell housing, treating differently applicants for housing, treating residents differently in connection with terms and conditions, advertising a discriminatory housing preference or limitation, providing false information about the availability of housing, harassing, coercing or intimidating people from enjoying or exercising their rights under the Act, blockbusting for profit, persuading owner to sell or rent housing by telling them that people of a particular race, religion, etc. are moving into the neighborhood, imposing different terms for loans for purchasing, constructing, improving, repairing, or maintaining a home, or loans secured by housing; denying use or participation in real estate services, e.g., brokers' organizations, multiple listing services, etc. The Fair Housing Act gives HUn the authority to hold administrative hearings unless one of the parties elects to have the case heard in U.S. District Court and to issue subpoenas. Both civil and criminal penalties are provided. The Act also provides protection for people with disabilities, and proscribes those conditions under which senior citizen housing is exempt from the prohibitions based on familial status. All activities carried out by the Borrower and/or agents of Borrower shall be in accordance with the following provisions of California Law: Fair Employment and Housing Act, Unruh Civil Rights Act of 1959, Ralph Civil Rights Act of 1976, and Civil Code Section 54.1. r. Labor Reauirements. Borrower represents and warrants that during the term of this Agreement it will comply with each and every provision and requirement contained within CFR 92.3 54, as amended from time to time, to the extent applicable, and will pay not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-5), to all laborers and mechanics employed in the development of any part of the Project in accordance with the terms and provisions of CFR 92.3 54 and will comply with the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332). Prevailing wages need not be paid to "Volunteers" or for "Sweat Equity" as defined in 24 CFR 92.354(b) and (c). Furthermore, Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project to the extent required by Federal and California law. 17 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-24 s. Lead Based Paint. Borrower represents and warrants that during the term of the Agreement that it will comply with each and every provision and requirement contained within CFR 92.355, as amended from time to time, to the extent applicable. t. Certification Concerning Debarment and Susoension. Borrower represents, warrants and hereby certifies, pursuant to 24 CFR 92.357, that it will not use a contractor that has been debarred and or suspended, nor that is proposed for debarment, declared ineligible or voluntarily excluded from participation in the Project, which is the subject matter of this Agreement. Borrower agrees to execute such further certification(s) required by City and/or HUD including, if necessary, that certification included as Appendix B ofCFR Part 24, to verify the certification made in this Section 2.l(p). u. Flood Insurance. Borrower represents, warrants, and certifies, pursuant to 24 CFR 92.358, that no Real Property which is the subject of this Agreement, is located within a Flood Plain or Flood Hazard Zone or Area, as indicated on a FEMA Map; or that the Real Property is located within a community participating in the National Flood Insurance Program and Borrower agrees to purchase and maintain flood insurance for the duration ofthe term of this Agreement concerning such Real Property. v. Fire Protection and Safety Guards. Borrower represents and warrants that it will comply with all requirements and regulations of the Fire Administration Act of 1992 and the Federal Fire and Prevention Control Act. Borrower will use and install all fire and safety related equipment pursuant to the National Fire Protection Association standards. w. Accessibility Standards. Borrower represents and warrants that it will comply with all federal, state and local requirements and regulations concerning access to the units by the disabled and handicapped persons, including, but not limited to, those requirements of the HOME Program. x. Section 3 Reauirements. Borrower shall comply with the following requirements during the term of the City Loan: (i) The work to be performed under this Agreement is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. ~1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients ofHUD assistance for housing. (ii) The parties to this Agreement agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this Agreement, the parties to this Agreement certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. (iii) Borrower agrees to send to each labor organization or representative of workers with which Borrower has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of Borrower's commitments under this section 3 clause, and will post copies ofthe notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, and qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. 18 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-25 (iv) Borrower agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. Borrower will not subcontract with any subcontractor where Borrower has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. (v) Borrower will certify that any vacant employment positions, including training positions, that are filled (1) after Borrower is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent Borrower's obligations under 24 CFR part 135. (vi) Noncompliance with HOD's regulations in 24 CFR part 135 may result in sanctions, termination of this Agreement for default, and debarment or suspension from future HOD assisted contracts. y. Drug Free Workplace. Borrower shall comply with all applicable State and Federal rules, laws and regulations to ensure a drug free workplace at all times during the term of this Agreement. Further, Borrower shall incorporate such federal provisions as are required in each contract or subcontract that it enters into in connection with the Project. z. Lobbving Prohibition. Borrower hereby certifies to City, under penalty ofpeljury, under the terms of applicable federal law, that at all applicable times before, during and after the term of the Agreement, that: (i) No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; (ii) If any funds other than Federal appropriated funds have been paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee ofa Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; (iii) Borrower will require that the above stated language be included in the award documents for all subawards at all tiers, including subcontracts, subgrants, loans, contracts, and cooperative agreements concerning the subject matter of this Agreement; and (iv) Further, Borrower and all subrecipients, at all times, shall certify compliance with the provisions of31 D.S.C. 91352 and any and all terms and conditions of the Byrd Anti-Lobbying Amendment, as amended from time to time. 19 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-26 ARTICLE 8 - Development Fee 8.1 Develooment Fee: The Developer is entitled to a development fees which may include general overhead and profit, the amount of such development fee shall not exceed the amount set forth therefor in the Sources and Uses, Project Budget and Pro Forma attached hereto, and shall in no event be greater than the maximum amount permitted pursuant to the Low Income Housing Tax Credit statutes and regulations (the "Development Fee"). It is anticipated that a portion of the Development Fee shall be paid by Borrower from additional capital contributions to be made by Borrower's Limited Partner pursuant to the terms of the Partnership Agreement, with the balance of the Development Fee (the "Deferred Development Fee") to be paid from the Gross Revenue of the Project and equity contributions to Borrower made after the closing. The Borrower's obligation to pay the Deferred Development Fee shall be evidenced by a promissory note (the "Deferred Development Fee Note") which shall be unsecured. In the event there are any cost savings realized in the construction of the Project, all available funds attributable to such cost savings shall also be applied to the Deferred Development Fee. Regular payments on the Deferred Development Fee Note shall be made on an annual basis out of the Gross Revenues of the Project. Such amounts shall be paid to Developer on a priority basis to all other debt service on the Property except for the MHP Loan and the Bond Loan. Developer shall specifically be entitled to payment of the Deferred Development Fee before payment of the amounts due to City pursuant to the City Note. The Deferred Development Fee shall not be secured by any liens upon the property. 20 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-27 ARTICLE 9 -Development of the Project 9.1 Work to be Performed: Borrower agrees to develop the Property so that it consists of a multi- family residential project consisting of 92 units, and to operate the Project for occupancy by extremely low, very low, and low income households, subject to the terms of this Agreement, the Scope of Work attached hereto as Exhibit _ and incorporated herein, the Bond Loan Documents, the MHP Loan Documents, the Affordable Housing Agreement, and the TCAC Regulatory Agreement. The Project shall consist of three-bedroom units, open space, a recreation area, storage areas, laundry rooms, garages and other common area facilities in accordance with the plans approved by the City in connection with issuance of the building permit(s), and with the terms of and conditions of all land use permits and approvals required by the City to the extent such permits and approvals are required by applicable law. The Project's units and occupancy shall be restricted in accordance with the terms of this Agreement. If Borrower desires to make any change in any construction or building plans after the same have been approved, Borrower shall submit the proposed change to the appropriate body for approval, if and to the extent required by applicable law. Borrower shall be responsible for all construction and installation and for obtaining all the necessary permits. 9.2 Comoliance with Permits and Laws: Borrower and its contractors shall carry out the development of the Project and operation of the Project in conformity with all applicable laws, regulations, and rules of the governmental agencies having jurisdiction, including without limitation all legally applicable conditions and requirements of California Community Redevelopment Law (Health and Safety Code, Division 24); all legally applicable prevailing wage requirements, if any, the applicability of which is for Borrower to determine, pursuant to federal and state law, including California Labor Code Sl770 et seq.; all legally applicable conditions and requirements imposed by the Low Income Housing Tax Credit Program; all legally applicable labor standards; the legally applicable provisions of the City zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the City Municipal Code, and all legally applicable disabled and handicapped access requirements, which may include, without limitation, the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq., the Unruh Civil Rights Act, Civil Code Section 51, et seq., and the California Building Standards Code, Health and Safety Code Section 18900, et seq., and City policies adopted pursuant to said federal standard regulations and requirements. The work shall proceed only after procurement of each permit, license, or other authorization that may be required under applicable law by any governmental City having jurisdiction, and the Borrower shall be responsible to the City for procurement and maintenance thereof, as may be required of the Borrower and all entities engaged in work on the Project. 21 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-28 9.3 Costs of Develooment: Subject to the terms and conditions of this Agreement, Borrower shall be responsible for all costs of developing the Project, including but not limited to predevelopment costs incurred for items such as planning, design, engineering, and environmental remediation; all development and building fees; the cost incurred to demolish and clear any and all existing improvements, furnishings, fixtures, and equipment from the Property; costs for insurance and bonds (as required); costs for financing; preparation of the Property for construction; and all on-site construction costs. This Agreement does not require Borrower to construct any off-site improvements. Borrower shall be responsible for verifying the adequacy and availability of all utilities. If at any time during the course of the development of the Project, Borrower exhausts fifty percent (50%) or more of the contingency amounts set forth in the Project Budget, City shall have the right, but not the obligation, to approve any additional cost overruns (unless such approval has been obtained from the Bond Issuer/Lender), which approval shall not be umeasonably withheld. 9.4 Schedule of Performance: Progress Reoorts: Subject to Section 13.3, Borrower shall begin and complete all construction within the times specified in the Schedule of Performance, subject to any extension granted by City, which extension shall not unreasonably be withheld upon the written request of the Borrower. Once construction has commenced, it shall be continuously and diligently pursued to completion, and shall not be abandoned for more than fifteen (15) consecutive business days, except when due to causes beyond the control and without the fault of Borrower, as set forth in Section 13.3 of this Agreement. During the course of the construction, and prior to the completion of the Project, Borrower shall keep City informed of the progress of the construction on the Property and, if requested, shall provide City with monthly written progress reports and meet with City staff as appropriate. If requested, Borrower shall furnish a construction schedule to City indicating completion dates for each portion of work showing progress toward completion of the Project. After completion of construction of the Project and within the time set forth in the Schedule of Performance (as it may be revised as provided above), Borrower shall provide the City's Housing Manager a true and correct copy of the final cost certification submitted to TCAC concerning the construction of the Project on the Property. Borrower shall provide additional cost information as may be reasonably requested by the City's Housing Manager to permit the City's Housing Manager to make such determinations as is reasonably required for City to verify Borrower's conformance to this Agreement and the Scope of Work, as it may be revised by mutual agreement of the parties from time to time during the course of the construction. 9.5 Right of Access: For the purpose of assuring compliance with this Agreement, representatives of City, upon reasonable prior notice, shall have the reasonable right of access to the Property, without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including but not limited to the inspection of the work being performed by Borrower in developing the Project. Such representatives of City shall be those who are so identified in writing by the Housing Manager. City shall indemnify, defend, and hold harmless Borrower and Borrower's officers, employees, and agents from any damage caused or liability arising out of the sole negligence or willful misconduct of City or their officers, officials, employees, volunteers, agents, or representatives in their exercise of this right of access; provided that it is understood that City does not by this Section 9.6 assume 22 Landings Loan Agreement and Restrictive Covenants. Clean. 7 .30.07 16-29 any responsibility or liability for a negligent inspection or failure to inspect. Any inspection by City pursuant to this section shall be conducted so as not to interfere or impede the construction or operations of the Project. 9.6 Mechanics Liens. Stop Notices. and Notices of Como let ion: a. Subject to Borrower's right to contest set forth in Section 11.4 of this Agreement, if any claim or lien is filed against the Project or a stop notice affecting the City Loan is served on the City or any other lender or other third party in connection with the Project, then the Borrower shall, within forty-five (45) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the City a surety bond in sufficient form and amount, or provide the City with other assurance satisfactory to the City that the claim oflien or stop notice will be paid or discharged. b. If Borrower fails to discharge any lien, encumbrance, charge, or claim in the manner required in Section 9.7 (a), subject to notice and an opportunity to cure as provided in Section 12.1 hereof, then in addition to any other right or remedy, the City may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at the Borrower's expense. Alternately, the City may require the Borrower to immediately deposit with the City or title company the amount necessary to satisfy such lien or claim and any costs pending resolution thereof. The City shall use such deposit to satisfy any claim or lien that is adversely determined against the Borrower. c. The Borrower shall file a valid notice of cessation or notice of completion upon cessation of construction on the Project for a continuous period of thirty (30) days or more, and take all other reasonable steps to forestall the assertion of claims of lien against the Project. The Borrower authorizes the City, but without any obligation, to record any notices of completion or cessation of labor, or any other appropriate notice that the City deems necessary or desirable to protect its interest in the Project. 9.7 Certificate of Completion: Upon Borrower's satisfactory completion of construction of the Project, City shall furnish Borrower with a Certificate of Completion upon written request therefor by Borrower. Such Certificate of Completion shall be in a form so as to permit recordation in the Office of the Recorder of the County of San Diego in a form and format as approved by the office of the City Attorney, in its reasonable discretion. The Certificate of Completion shall be, and shall so state, a conclusive determination of satisfactory completion of the construction of the Project and of full compliance with the terms of this Agreement relating to such construction. After the date of the issuance of the Certificate of Completion, and notwithstanding any other provisions of this Agreement to the contrary, any party then owning or thereafter purchasing, leasing, or otherwise acquiring any interest in the Property shall not (because of such ownership, purchase, lease, or acquisition) incur any obligation or liability under this Agreement for the construction of the Project. City shall not unreasonably withhold the Certificate of Completion. If City refuses or fails to furnish the Certificate of Completion after written request from Borrower, the City shall, within fifteen (15) days after such written request, provide Borrower with a written statement of the reasons the City refused or failed to furnish such Certificate of Completion. The statement shall also contain the City's opinion of the action Borrower must take to obtain 23 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-30 such Certificate of Completion. If the reason for such refusal is confined to the immediate availability of specific items or materials for landscaping, City shall issue the Certificate of Completion upon the posting of cash deposit or an irrevocable letter of credit in favor of City in an amount representing the fair value of the work not yet completed and in a form reasonably acceptable to City's attorneys. A Certificate of Completion is not a notice of completion as referred to in California Civil Code Section 3093. 9.8 Estoppels: At the request of Borrower or any holder of a mortgage or deed of trust, City shall, from time to time and upon the request of Borrower or such holder, timely execute and deliver to Borrower or such holder a written statement of City that no default or breach exists (or would exist with the passage of time, or giving of notice, or both) by Borrower under this Agreement, the City Note, the City Trust Deed, and/or the Affordable Housing Agreement, if such be the case, and certifying as to whether or not Borrower has at the date of such certification complied with any obligation of Borrower hereunder or under such of those documents as to which such holder may inquire. The form of any estoppel letter shall be prepared by the holder or Borrower. 24 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-31 ARTICLE 10 - Uses Of The Property 10.1 Summary: Borrower covenants and agrees for itself and its successors and assigns to its interest in the Property that Borrower and such successors and assigns shall devote the Property to uses consistent with California Community Redevelopment Law, the Bond Loan Documents, the MHP Loan Documents, the Regulatory Agreement, The TCAC Regulatory Agreement, the Affordable Housing Agreement, the City Trust Deed, and this Agreement, whichever is most restrictive, for a period ending fifty-five (55) years from the date of the City's issuance of the final Certificate of Completion for the Project, provided, however, the HOME affordability restrictions shall only be effective for a term of twenty years after their effective date as referenced in the Declaration.. City shall be a third-party beneficiary under the Regulatory Agreement, the Bond Regulatory Agreement, the TCAC Regulatory Agreement, the MHP Regulatory Agreement. In addition, the Redevelopment Agency of the City of Chula Vista shall have the authority to enforce any and all of such agreements, in addition, to the right of the City to enforce said agreements, and shall have full authority to enforce any breach or default by Borrower under such agreement in the same manner as though it were a breach or default hereunder. Without City's prior written consent, which consent shall not be unreasonably withheld, Borrower shall not consent to any amendment of or modification to the TCAC Regulatory Agreement or Bond Regulatory Agreement which (i) shortens the term of the affordability restrictions on the units in the Project to a term of less than fifty-five (55) years after the date of the City's issuance of the final Certificate of Completion for the Project or (ii) modifies the number of units required to be rented at affordable housing costs to persons of specified incomes; provided, however, that any such amendment shall not modify the Borrower's obligations under this Agreement or the Affordable Housing Agreement. 10.2 Affordable Housing: Borrower covenants and agrees for itself and its successors and assigns to its interest in the Property that commencing upon the completion of the Project and continuing thereafter for a period of fifty-five (55) years from the date of the City's issuance of the final Certificate of Completion for the Project, Borrower and such successors and assigns shall devote ninety-two (92) residential units on the Property (hereinafter the "Restricted Units") to its continuous use as affordable rental housing for very low, lower and low income households in accordance with the terms of this Agreement, and one unit may be occupied by the on-site property manager, subject to the occupancy restrictions contained in this Section 10.2. 11 HOME Restricted Units shall be made available to extremely low income households at or below 30 percent of the Area Median Income ("AMI"), at affordable rents for the twenty (20)year term, as referenced within the Declaration, which shall be in a form and format as approved by the City Attorney, in his/her reasonable discretion. In determining income eligibility for a particular Restricted Unit, including a Home Program restricted unit, Borrower shall be entitled to rely upon the documentation provided by the prospective tenant as required pursuant to the TCAC Regulatory Agreement, Affordable Housing Agreement, the Declaration and Bond Regulatory Agreement. Borrower shall not be required to perform further investigations into the household income other than those which are required pursuant to such agreements. Throughout this Agreement, wherever it is stated that Borrower must comply with the affordability requirements and/or verify such compliance, Borrower shall be entitled to rely upon the tenant documentation discussed in this paragraph. 25 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-32 In addition to the foregoing, to the fullest extent allowed by law the lease agreement for each Restricted Unit in the Project shall restrict occupancy of each Restricted Unit to a total of occupants that does not exceed the maximum allowed by HUD for three bedroom units. Any violation of such restrictions shall constitute a default by the tenant, unless such occupancy restriction is found invalid by a court of competent jurisdiction in a final non-appealable judgment in a lawsuit in which the Project's occupancy restriction is at-issue, or in an applicable and binding published appellate opinion, or by statute, regulation or other binding court order. 10.3 Reports: Borrower, at its expense, shall submit, or cause the Property Manager to submit, to the appropriate entities any and all reports required to be submitted pursuant to Federal Regulations. 10.4 Subordination of Affordabilitv Covenants: In the event that the City finds that an economically feasible method of financing for the construction and operation of the Project, without the subordination of the affordable housing covenants as may be set forth in this Agreement, is not reasonably available, the City shall make the affordable housing covenants set forth in this Agreement junior and subordinate to the deeds of trust and other documents required in connection with the construction and permanent financing for the Project approved pursuant to this Agreement. Any other subordination agreement entered into by the City shall contain written commitments which the City finds are reasonably designed to protect City's investment in the event of default, such as any of the following: (a) a right of City to cure a default on the loan prior to foreclosure, (b) a right of City to negotiate with the lender after notice of default from the lender and prior to foreclosure, (c) an agreement that if prior to foreclosure of the loan, City takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to City, and (d) a right of City to reacquire the Property from the Borrower at any time after a material default on the loan. 10.5 Condition of the Property: a. Borrower hereby represents that to the best of its knowledge, except as otherwise disclosed to the City in writing, it is not aware of and has not received any notice or communication from any government agency having jurisdiction over the Property notifying Borrower of the presence of surface or subsurface zone Hazardous Materials in, on, or under the Property, or any portion thereof. "Best knowledge," as used herein, shall mean the actual knowledge of the Borrower and its officers, directors and employees, as based upon the documents and materials in the possession of Borrower, and its officers, directors and employees, including the site investigation report or study referred to in Section 1 0.5(b) herein. b. In addition to the foregoing, the Borrower has, at its sole cost and expense, engaged its own environmental consultant to conduct a Phase 1 investigation of the Property and produce a report thereof, a copy of which has been provided to the City by Borrower. Such report concludes that no Hazardous Materials have been detected on the Property. c. Borrower shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which may be located in, on or under the 26 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-33 Property. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Borrower shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials. d. Borrower shall indemnify, defend and hold City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, reasonable attorneys' fees), resulting from, arising out of, or based upon (i) the release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, no matter when such claim, action, suit or proceeding is first asserted or begun and no matter how the Hazardous Materials came to be released, used, generated, discharged, stored or disposed of on, under, in or about, to or from the Property, or by whom or how they are discovered (except for such damages which arise after the transfer of the Property pursuant to foreclosure or deed in lieu of foreclosure), or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property. This indemnity shall include, without limitation, an):' damage, liability, fine, penalty, parallel indemnity after closing, cost or expense arising from or out of any claim, action, suit or proceeding, including injunctive, mandamus, equity or action at law, for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. e. For purposes of this Agreement, "Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, San Diego County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25130 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Code of Regulations, Division 4, Chapter 20, (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. 91317), (xi) 27 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-34 defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 D.S.C. ~6901, et seq. (42 V.S.C. ~6903) or (xii) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 D.S.C. ~9601, et seq. The term hazardous materials shall not include any material in such quantities as are commonly used in the development, construction, operation and/or occupancy of a multifamily housing project. 10.6 Marketing Plan: In furtherance of the requirements of Section 7.1 p. of this Agreement, Borrower shall submit for the approval of the City, which approval shall not unreasonably be withheld, a plan for marketing the rental of the apartment units in compliance with federal and state fair housing law. Such marketing plan shall include a plan for publicizing the availability of the apartment units within the City, such as notices in any City sponsored newsletter, newspaper advertising in local newspapers and notices in City offices. The marketing plan shall require Borrower to obtain from the City the names of low-income households who have been displaced by the City's redevelopment projects, and to notify persons on such list of the availability of units in the Project prior to undertaking other forms of marketing. Subject to the restrictions of the State MHP Loan, the marketing plan shall provide that the persons on such list of displaced persons be given not fewer than ten (10) days after receipt of such notice to respond by completing application forms for rental of apartment units, as applicable. 10.7 Maintenance of Property: Borrower agrees for itself and its successors in interest to all or any portion ofthe Property, to maintain the improvements on the Property in conformity with applicable provisions of the City Municipal Code, and shall keep the Property free from any accumulation of debris or waste materials. During such period, the Borrower shall also maintain the landscaping planted on the Property in a healthy condition. If at any time Borrower fails to maintain the Property and such condition is not corrected within ten days after written notice from City with respect to graffiti, debris, waste material, and general maintenance, or thirty days after written notice from City with respect to landscaping and building improvements, then City, in addition to whatever remedy it may have at law or at equity, but subject to the rights of the Bond Issuer/Lender, shall have the right to enter upon the applicable portion of the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Property, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, including a fifteen percent (15%) administrative charge, which amount shall be treated as an additional loan hereunder payable pursuant to the terms of the Partnership Agreement. 28 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-35 10.8 Property Management: The parties acknowledge that the City is interested in the long term management and operation of the Property and in the qualifications of any person or entity retained by the Borrower for that purpose (the "Property Manager"). Therefore, during the period of the effectiveness of the affordability covenants set forth herein, the City may from time to time review and evaluate the identity and performance of the Property Manager as it reasonably deems appropriate. Prior to the completion of construction of the Project, Borrower shall submit to the City a copy of an executed property management agreement for the Project with an experienced property manager which is reasonably acceptable to the parties. If the City determines that the performance of the Property Manager is materially deficient based upon the standards and requirements set forth in this Section 10.8 and the approved Management Plan (as defined below), the City shall provide notice to the Borrower of such deficiencies and the Borrower shall use its best efforts to correct such deficiencies within a reasonable period of time, subject to the requirements of the Bond IssuerILender and the Department of Housing and Community Development and the terms and conditions of the Partnership Agreement. Upon the failure of the Property Manager to cure such deficiencies within the time set forth herein, the City shall have the right to require the Borrower to immediately remove and replace the Property Manager with another property manager or property management company who is reasonably acceptable to the City who is not related to or affiliated with the Borrower, subject to the requirements of the Bond IssuerILender and the Department of Housing and Community Development and the terms and conditions of the Partnership Agreement. In addition, the Borrower shall submit for the reasonable approval of the City a detailed "Management Plan" which sets forth in reasonable detail the duties of the Property Manager, the tenant selection process, a security system and crime prevention program, the procedures for the collection of rent, the procedures for monitoring of occupancy levels, the procedures for eviction of tenants, the rules and regulations of the Property and manner of enforcement, a standard lease form, and other matters relevant to the management of the Property. The management plan shall require the Property Manager to adhere to a fair lease and grievance procedure and provide a plan for tenant participation in management decisions. The management of the Property shall be in compliance with the Management Plan which is approved by the City, subject, however, to any requirements of the Bond Issuer/Lender pursuant to the Bond Loan Documents. The Management Plan may be revised from time to time upon the approval of the City and the Borrower. 10.9 Affordable Housing Al?feement: Certain requirements with respect to the affordable housing obligations and other operational and maintenance obligations of the Project are set forth in the Affordable Housing Agreement, as amended and as approved by the office of the City Attorney, in its reasonable discretion. The execution and recordation of the Affordable Housing Agreement is a condition precedent to the disbursement of the City Loan, as set forth in Section 4.3 hereof. ARTICLE 11- Continuing Obligations of Borrower 11.1 Applicabilitv: For the entire term of the requirements set forth in Section 11.1 hereof, the Borrower shall comply with the provisions of this Article 11. 29 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-36 11.2 Insurance: Within ten (10) days after the Borrower's acquisition of the Property, Borrower shall furnish to the City duplicate originals or appropriate certificates of insurance coverage evidencing that Borrower has obtained, or cause to be obtained, insurance coverage with respect to the Property and Project in type, amount and from insurers with Best's ratings as are reasonably acceptable to City (or have been approved by the Bond Issuer/Lender), naming the City and its officers, agents, employees, representatives and their respective successors, as named or additional insureds by appropriate endorsements. Such policy shall include, without limitation "all risk" property casualty insurance and comprehensive general liability insurance. Without limiting the generality of the foregoing, such policy shall also include coverage to insure Borrower's indemnity obligations provided herein. Borrower covenants and agrees for itself and its successors and assigns that Borrower and such successors and assigns shall keep such liability policy in full force and effect for the term of the City Loan, and Regulatory Agreement. In addition to any other remedy which City may have hereunder for Borrower's failure to procure, maintain, and/or pay for the insurance required herein, City may (but without any obligation to do so, and subject to the rights of the Bond Issuer/Lender under the Bond Loan Documents) at any time or from time to time, after thirty (30) days written notice to Borrower, procure such insurance and pay the premiums therefor, in which event Borrower shall immediately repay the City all sums so paid by the City, together with interest thereon at the rate of ten percent (10%) per annum or the maximum legal rate, whichever is less. 11.3 Proceeds of Insurance: Should the Project be totally or partially destroyed or rendered wholly or partly uninhabitable by fire or other casualty required to be insured against by Borrower, Borrower shall promptly proceed to obtain insurance proceeds and take all steps necessary to promptly and diligently commence the repair or replacement of the Project to substantially the same condition as the Project is required to be maintained in pursuant to this Agreement if (i) the Borrower agrees in writing within ninety (90) days after payment of the proceeds that such repair or rebuilding is economically feasible, and (ii) the Bond Issuer/Lender and the Department of Housing and Community Development permit such repair or rebuilding, provided that the extent of Borrower's obligation to restore the Project shall be limited to the amount of the insurance proceeds actually received by the Borrower. If the Borrower is unable or is not permitted to repair, replace, or restore the Project, Borrower must give notice to City (in which event Borrower will be entitled to all insurance proceeds, subject to any outstanding lien obligations, but Borrower shall be required to remove all debris from the Property) and Borrower may construct such other improvements on the Property as are consistent with applicable land use regulations and approved by the City and the other governmental agencies with jurisdiction. 11.4 Taxes. Assessments. Encumbrances. and Liens: Borrower shall pay prior to delinquency all real estate taxes and assessments properly assessed and levied on the Property. Until the payment in full of all amounts owing under the City Note, Borrower shall not place or allow to be placed thereon any mortgage, trust deed, encumbrance, or lien (except mechanic's liens prior to suit to foreclose the same being filed) not authorized by this Agreement, without the City's consent, which consent shall not unreasonably be withheld. Borrower shall remove or have removed any levy or attachment made on the Property, or assure the satisfaction thereof, within a reasonable time, but in any event prior to a sale thereunder. 30 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-37 Nothing herein contained shall be deemed to prohibit Borrower from contesting the validity or amounts of any tax, assessment, encumbrance, or lien, nor to limit the remedies available to Borrower in respect thereto. 11.5 Hold Harmless: Borrower agrees to indemnify, protect, defend and hold harmless City, and City's officers, agents, employees, representatives and successors, from and against any and all claims, damages, actions, costs, demands, expenses or liability, including without limitation, reasonable attorneys' fees and court costs, which may arise from the direct or indirect actions or inactions of the Borrower or those of its contractors, sub-contractors, agents, employees or other persons acting on Borrower's behalf which relate to the Property or Project; excluding, however, from Borrower's indemnity any such liability, losses, damages (including foreseeable or unforeseeable consequential damages), penalties, fines, expenses (including out-of-pocket litigation costs and reasonable attorneys' fees) directly or indirectly arising out of the actions of City or its employees, contractors, subcontractors or agents. This hold harmless agreement applies, without limitation, to all damages and claims for damages suffered or alleged to have been suffered by reasons of the operations referred to in this paragraph, regardless of whether or not the City prepared, supplied or approved plans or specifications, or both, for the Property or Project. This indemnity by Borrower, and all other indemnities set forth herein shall survive any foreclosure of the Property by the City pUrsuant to the terms of the City Trust Deed. 11.6 Further Indemnification of Citv: It is understood and agreed that the parties hereto have entered this Agreement as a method of providing necessary assistance to Borrower in connection with the construction of low and moderate income housing and development of the Property pursuant to all applicable laws and that by contributing public funds to assist in the accomplishment of such development, or by otherwise contributing or assisting with the accomplishment of such development, the City assumes no responsibility for insuring that the same is adequately undertaken (including, without limitation, the existence and/or remediation of any hazardous or toxic substances on the Property) and as a material consideration to City for entering into this Agreement (and not by way of limiting the generality of Section 11.5 above) Borrower agrees to indemnify, protect, defend and hold harmless City and its representatives, officers, employees and their respective successors from and against any and all claims, damages, actions, demands, liabilities, obligations, expenses, losses or costs, including without limitation, reasonable attorneys' fees and court costs, which may arise or in any manner connected with the development of the Project pursuant to this Agreement; excluding, however, from Borrower's indemnity any such liability, losses, damages (including foreseeable or unforeseeable consequential damages), penalties, fines, expenses (including out-of-pocket litigation costs and reasonable attorneys' fees) directly or indirectly arising out of the actions of City or its employees, contractors, subcontractors or agents. 11. 7 Obligation to Refrain from Discrimination: There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the enjoyment of the Property, nor shall Borrower itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees of the Property or any portion thereof. Borrower shall further comply with all the requirements of the Americans with Disabilities Act. City acknowledges that, pursuant to the restrictions of 31 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-38 the Farmworker Grant, Borrower is required to use status as an agricultural worker as a basis oftenant selection. 11.8 Form of Nondiscrimination and Nonsegregation Clauses: Borrower shall refrain from restricting the rental, sale, or lease of any portion of the Property, or contracts relating to the Property, on the basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person and shall comply with all the applicable requirements of the Americans with Disabilities Act of 1990. All such deeds, leases or contracts, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself, or any persons claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees in the land herein conveyed and further covenants that all such individuals and entities shall comply with all applicable requirements of the Americans with Disabilities Act of 1990, as the same may be iunended from time to time (42 V.S.C. 912101, et seq.). The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: 'That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased, nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein lease and the lease shall be carried out in compliance with all applicable requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, et seq.).'" c. In contracts: "There shall be no discrimination against or segregation of any persons or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the transferee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees ofland and all such activities shall be conducted in compliance with all applicable requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, et seq.)." 32 Landings Loan Agreement and Restrictive Covenants. Clean. 7 .30.07 16-39 11.9 Effect of Covenants: a. Unless sooner terminated by City as provided for herein, all covenants contained in this Article II shall run with the land and shall be extinguished and of no further force and effect upon the fifty-fifth anniversary of the issuance of the Certificate of Completion for the Project by the City, with the exception of the non-discrimination and non-segregation covenants which shall run in perpetuity. The covenants established herein shall, without regard to technical classification and designation, be binding on the part of Borrower and any successors and assigns to the Property or any part thereof, and the tenants, lessees, sublessees and occupants of the Property, for the benefit of and in favor of the Property and the City, and its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit of such covenants running with the land have been provided, without regard to whether City has been, remained, or is the owner of any particular land or interest therein. City shall have the right to unilaterally terminate the covenants at any time (subject to the TCAC Regulatory Agreement) or, if such covenants are breached (subject to any cure rights provided herein) to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and the covenants may be entitled, including specific performance (it being recognized that the breach of such covenants cannot be adequately compensated by monetary damages), and any and all remedies provided in the City Trust Deed and City Note, including, without limitation, foreclosure proceedings against the Property. b. Without limiting the generality of the foregoing, in the event that there is a breach of the terms of this Agreement or any covenants provided herein, the City shall have the right, but not the obligation, to take any and all actions the City deem necessary to cure such breach, including, without limitation, taking possession of the Property for management and/or repair purposes, and to obtain reimbursement from Borrower for any reasonable costs incurred by the City in the exercise of such remedy. Furthermore, Borrower hereby covenants by and for itself, its successors and assigns and every person acquiring an interest in the Property, or any part thereof, that City and other public agencies at their sole risk and expense, and subject to the rights of tenants in possession, shall have the right to enter the Property or any part thereof at all reasonable times and with as little interference as possible for the purposes of construction, reconstruction, maintenance, repair or service of any public improvements or public facilities located on the Property and to ensure compliance with the restrictions and covenants contained herein. Any such entry shall be made only after reasonable notice to Borrower and, any damage or injury to the Property resulting from such entry shall be promptly repaired at the sole expense of the public City responsible for the entry except to the extent any such damage or injury arises as a result of the negligence or willful misconduct of the Borrower or its officers, employees, agents, invitees or contractors. c. No violation or breach of the covenants, conditions, restrictIOns, provIsions or limitations contained in this Agreement shall defeat or render invalid or in any way 33 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-40 impair the lien or charge of any mortgage, deed of trust or other financing or security instrument; provided, however, that any successor of Borrower to the Property shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. Failure to comply with the covenants, conditions, restrictions, provisions or the limitation contained in this Agreement within the time period required by Section 12.1 shall constitute a material default hereunder permitting the City to exercise any of its rights or obligations provided hereunder, including, without limitation, those provided under the City Note, City Trust Deed of Trust, or otherwise provided at law or in equity. 11.10 Prohibition A!!ainst Assi!!nment and Transfer: The qualifications and identity of Borrower are of particular concern to City. It is because of those qualifications and identity that City has entered into this Agreement with Borrower. Accordingly, for the term of the City Loan and Affordable Housing Agreement, Borrower, without City's prior written approval, shall not, whether voluntarily, involuntarily, or by operation of law, and except as permitted in this Section 11.10, (I) undergo any significant change in ownership (including the sale or conveyance of any of the general partnership interests in the Borrower, except as otherwise permitted under the terms of the Partnership Agreement regarding the removal of the General Partner, provided that any replacement General Partner shall be subject to the reasonable approval of the City, or (2) assign all or any part of this Agreement or any rights hereunder, or (3) sell, lease, assign, further encumber or refinance, or otherwise convey all or any part of the Property or Project, whether voluntarily, involuntarily, or by operation of law. Notwithstanding the foregoing, the following shall not be considered a significant change in ownership or an assignment or transfer and shall not require City approval for purposes of this Section 11.1 0: (i) Transfers to any entity or entities wholly owned and controlled by Borrower or all of its partners. (ii) The conveyance or dedication of portions of the Property to the City or other appropriate governmental City for the formation of an assessment district, or the granting of easements or permits to facilitate the development of the Property. (iii) A sale or transfer of some or all of the limited partnership interests in the Borrower. (iv) The leasing of all or any apartment units to tenants in the ordinary course of business. (v) The leasing of furniture, fixtures or equipment in the ordinary course of business, including, without limitation, laundry equipment and facilities, cable television equipment and facilities, and vending machine equipment and facilities. (vi) Transfers of property management responsibilities in accordance with Section 11.8 hereof, provided, however, that Borrower shall provide City thirty (30) days prior written notice of any such management change, and that this exception shall be limited to transfers to property managers with significant experience in managing projects similar to the Project. 34 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-41 (vii) The conveyance of the Property to the nonprofit general partner ofthe Borrower upon such general partner's exercise of its right of first refusal to acquire the Property at the end of the tax credit compliance period. Any such assignee shall be subject to all terms and conditions of this Agreement, including, without limitation, all affordability restrictions concerning the occupancy of the Property. Borrower shall deliver written notice to City requesting approval of any assignment or transfer requiring City approval hereunder. Such notice shall be given prior to Borrower entering into a formal written agreement with the proposed assignee. In considering whether it will grant approval to any assignment by Borrower of its interest in the Property or any portion thereof, which assignment requires City approval, City shall consider factors such as (i) the financial strength and capability of the proposed assignee to perform Borrower's obligations hereunder and (ii) the proposed assignee's experience and expertise in the planning, financing, construction, development, and operation of similar projects. No assignment, including assignments which do not require City approval hereunder, but excluding assignments for financing purposes, shall be effective unless and until the proposed assignee executes and delivers to City an agreement, in form satisfactory to the City's attorneys, assuming the obligations of the assignor which have been assigned. Thereafter, the assignor shall be relieved of all responsibility to City for performance of the obligations assumed by the assignee. No lender approved by City pursuant to Section 4 shall be required to execute an assumption agreement and such lender's rights and obligations hereunder shall be as set forth in Section 4. 11.1 I Secured Financinl!: Right of Holders. a. Permitted Encumbrances. Mortgages, deeds of trust, conveyances, and leases-back or any other form of conveyance required for any financing permitted and/or approved by the City pursuant to Section 4 hereof are permitted before City's issuance of the Certificate of Completion. b. Holder Not Oblil!ated to Construct Imorovements. The holder of any mortgage or deed of trust or other security interest authorized by this Agreement shall in no way be obligated by the provisions of this Agreement to construct or complete the improvements or to guarantee such construction or completion; provided, however, that nothing in this Agreement shall be deemed or construed to permit or authorize any such holder (with the exception of the holder of any deed of trust securing the loan made from the proceeds of the Bonds) to devote the Property or any part thereof to any uses, or to construct any improvements thereon, other than those uses or improvements provided for or authorized by this Agreement. 35 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-42 c. Notice of Default to Mortgage. Deed of Trust or Other Secured Instrument Holders: Right to Cure. Whenever City shall deliver any notice or demand to Borrower with respect to any breach or default by Borrower hereof, the City shall at the same time deliver a copy of such notice or demand to Borrower's Limited Partner and each approved holder of record of any mortgage, deed of trust, or other security instrument which has previously requested such notice in writing. Each such holder shall (insofar as the rights of City are concerned) have the right, at its option within ninety (90) days after the receipt for the notice, to commence and thereafter to diligently proceed to cure or remedy such default and add the cost thereof to the security interest debt and the lien on its security interest. d. Right of City to Cure Mortgage. Deed of Trust. or Other Security Instrument Default. In the event of a default or breach by Borrower of a mortgage, deed of trust, or other security instrument or lease-back or conveyance for financing prior to the issuance by City of the Certificate of Completion for the Project, City may cure the default prior to completion of any foreclosure. In such event, the City shall be entitled to reimbursement from Borrower of all costs and expenses it has reasonably incurred in curing the default, which right of reimbursement shall be secured by a lien upon the Property to the extent of such costs and disbursements. Any such lien shall be subject to: (i) Any mortgage, deed of trust, or other security instrument or sale and lease-back or other conveyance for financing permitted by this Agreement; or (ii) Any rights or interests provided in this Agreement for the protection of the holders of such mortgages, deed of trust, or other security instruments, the lessor under a sale and lease-back, or the grantee under such other conveyance for financing; provided that nothing herein shall be deemed to impose upon City any affirmative obligations (by the payment of money, construction, or otherwise) with respect to the Property in the event of its enforcement of its lien. 11.12 Right of Citv to Satisfy Liens: Prior to the issuance by City of the Certificate of Completion for the Project, and after Borrower has had a reasonable time to challenge, cure, or satisfy any liens or encumbrances on the Property, City, after sixty (60) days prior written notice to Borrower, shall have the right, but not the obligation, to satisty any liens or encumbrances on the Property; provided, however, that nothing in this Agreement shall require Borrower to payor make provision for the payment of any tax, assessment, lien, or charge so long as Borrower in good faith shall contest the validity or amount thereof, and so long as such delay in payment shall not subject the Property to forfeiture or sale. 36 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-43 ARTICLE 12 - Defaults, Remedies, And Termination 12.1 Defaults - General: Subject to all of the extensions of time available in Section 13.3, failure or delay by any party to perform any term or provision of this Agreement constitutes a default under this Agreement; however, the party shall not be deemed to be in default if (i) such party cures, corrects, or remedies such default within thirty (30) days after receipt of a notice specifying such failure or delay, or (ii) for such defaults that cannot reasonably be cured, corrected, or remedied within thirty (30) days, if such party commences to cure, correct, or remedy such failure or delay within thirty (30) days after receipt of a notice specifying such failure or delay, and diligently prosecutes such cure, correction or remedy to completion. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Copies of any notice of default given to Borrower shall also be delivered to the Bond Issuer/Lender, the Limited Partner of Borrower, and any other permitted lender requesting such notice. Except as provided in Section 12.3 herein or as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Except as otherwise expressly provided in this Agreement, any failure or delay in giving such notice or in asserting any of its rights and remedies as to any default shall not constitute a waiver of any default, nor shall it change the time of default, nor shall it deprive either party of its rights to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 12.2 Termination. 12.2.1 Termination bv City: Notwithstanding any other provision of this Agreement to the contrary, in the event that the City is not in default under this Agreement, City shall have the right to terminate this Agreement prior to disbursement of the City Loan upon written notice to the Borrower if: (i) Borrower commits a material default hereunder and fails to cure said default within the time specified in Section 12.1 hereof; or (ii) Borrower fails to obtain the necessary approvals from the Tax Credit Allocation Committee for an allocation of "4%" Low Income Housing Tax Credits under terms that will restrict the residential units in the Project to the requirements set forth herein; (iii) Borrower fails to timely remove any and all other requirements of Section 4.3 of this Agreement; or (iv) Escrow has not closed on the conveyance of the Property to Borrower on or before , as such date may be extended by agreement of all the parties hereto in their sole and absolute discretion; or (v) Subject to extensions of time made pursuant to Section 13.3 hereof, City shall have the right to terminate this Agreement with prior written notice Borrower, if Borrower shall have failed to commence construction of the Project pursuant to a valid building permit or permits and is not diligently proceeding with such construction on or before the time required in the Schedule of Performance and does not timely cure such default. In addition, in the event of Borrower's uncured material default under this Agreement at the time City exercises its right under this Section 12.2 to terminate the Agreement, nothing in this Section 12.2 is intended or shall be interpreted as a limitation of any other legal or equitable rights to which City may be entitled. 37 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-44 In addition to the right of the City to terminate this Agreement prior to disbursement of funds by the City, the City shall have the right to pursue any and all rights, at law or in equity, against the Borrower for breach of the Agreement, including without limitation, the recoupment of monies disbursed by the City together with any and all other damages incurred by the City as a result of the uncured breach by the Borrower, including attorney's fees, expert witnesses fees, consultant fees and other fees, costs, expenses and damages. 12.2.2 Termination bv Borrower: Notwithstanding any other provision of this Agreement to the contrary, provided that Borrower is not in default under this Agreement, Borrower shall have the right to terminate this Agreement prior to disbursement of the City Loan, upon written notice to City, if: (i) City commits a material default hereunder and fails to cure said default within the time specified in Section 12.1; or (ii) Escrow has not closed on the conveyance of the Property to Borrower on or before , as such date may be extended by agreement of all the parties hereto, in their sole and absolute discretion; or (iii) City fails to approve, after best efforts by Borrower to obtain such approval, such permits as are required to commence and complete construction of the Project on the Property. In addition, in the event of City's uncured material default under this Agreement at the time Borrower exercises its right under this Section 12.2 to terminate the Agreement, nothing in this Section 12.2 is intended or shall be interpreted as a limitation of any other legal or equitable rights to which Borrower may be entitled. 12.3 Legal Actions. 12.3.1 Institution of Legal Actions: In addition to any other rights or remedies, any party may institute legal action to cure, correct, or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purposes of this Agreement. Such legal actions must be instituted and maintained in the Superior Court of the County of San Diego, State of California, or in any other appropriate court in that county. 12.3.2 Applicable Law: The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 12.3.3 Acceptance of Service of Process: In the event that any legal action is commenced by Borrower against City, service of process on City shall be made by personal service upon the City's Housing Manager or City Clerk, or in such other manner as may be provided by law. In the event that any legal action is commenced by City against Borrower, service of process on Borrower shall be made in such manner as may be provided by law, and shall be valid whether made within or without the State of California. 12.3.4 Action for Specific Performance: If either the Borrower or City defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default does not commence to be cured by the defaulting party within thirty (30) days after service of the notice of default, 38 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-45 the non-defaulting party at its option may thereafter commence an action for specific performance of the terms of this Agreement pertaining to such default, subject to the provisions of Sections 12.1 and 13.3 hereof. 12.3.5 Rjghts and Remedies are Cumulative: Except as otherwise expressly stated in this Agreement, the rights and remedies ofthe parties are cumulative, and the exercise by either party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. ARTICLE 13 - General Provisions 13.1 Notices. Demands. and Communications Between the Parties: Formal notices, demands, and communications between City, and Borrower shall be given either by (i) personal service, (ii) delivery by reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery, or (iii) mailing in the United States mail, certified mail, postage prepaid, return receipt requested, to the address of the party as set forth below, or at any other address as that party may later designate by notice: To City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: Community Development Director With a copy to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Attorney To Borrower: CIC Landings, L.P. c/o Chelsea Investment Corporation 5993 Avenida Encinas, Suite 101 Carlsbad, CA 92008 Attention: Wally Dieckmann With a copy to: 39 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-46 Notices personally delivered or delivered by document delivery service shall be deemed effective upon receipt. Notices mailed shall be deemed effective on the second business day following deposit in the United States mail. Such written notices, demands, and communications shall be sent in the same manner to such other addresses as either party may from time to time designate by mail. 13.2 Nonliabilitv of Citv Officials and Emplovees: Conflicts of Interest: No member, official, employee, or contractor of City shall be personally liable to Borrower in the event of any default or breach by City or for any amount which may become due to Borrower or on any obligations under the terms of this Agreement. No member, official, employee, or agent of City shall have any direct or indirect interest in this Agreement nor participate in any decision relating to this Agreement which is prohibited bylaw. 13.3 Enforced Delav: Extension of Times of Performance: In addition to specific provIsIons of this Agreement, and except as expressly set forth in Section 12.2 and this Section 13:3, performance by either party hereunder shall not be deemed to be in default and such party shall be entitled to an extension of time to perform its obligations hereunder where delays in performance are due to causes beyond the control and without the fault of such party, including as applicable: war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; supernatural causes; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor, subcontractor or supplies; acts of the other party; acts or the failure to act of City or any other public or governmental City or entity (except that any act or failure to act of or by City shall not excuse timely performance by City). In addition, nothing in this Section 13.3 is intended or shall be interpreted to entitle Borrower to an extension of time to close the escrow for acquisition of the Property or to delay commencement of construction of the Project. An extension of time for any cause permitted under this Section 13.3 shall be limited to the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of knowledge of the commencement of the cause, or if no written notice is sent within thirty (30) days, from the date written notice is sent by the other party. Times of performance under this Agreement may be extended by mutual written agreement of City and Borrower. 13.4 Inspection of Books and Records: The Borrower shall keep and maintain at the Project, or elsewhere within the County of San Diego, full, complete and appropriate books, records and accounts relating to the Project, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail Borrower's calculation of Residual Receipts and compliance with the affordable housing requirements herein. Books, records and accounts relating to Borrower's compliance with the terms, provisions, covenants, and conditions of this Agreement shall be kept and maintained in accordance with generally accepted accounting principles consistently applied, and shall be consistent with requirements of this Agreement. All such books, records, and accounts shall be open to and 40 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-47 available for inspection by tbe City, and its auditors or otber authorized representatives at reasonable intervals during normal business hours upon reasonable prior notice to Borrower. Copies of all tax returns and otber reports tbat Borrower may be required to furnish any governmental City shall at all reasonable times, upon reasonable prior notice to Borrower, be open for inspection by tbe City at tbe place that tbe books, records, accounts of tbe Borrower are kept. The Borrower shall preserve records on which any statement of Residual Receipts is based for a period of not less tban five (5) years after such statement is rendered. City shall have the right at all reasonable times to inspect tbe books and records of Borrower pertaining. to the Property and the Project as pertinent to the purposes of this Agreement. Borrower shall provide its books and records to City witbout reasonable delay upon no less than five (5) days prior written request by City. City shall not request inspection for Borrower's books and records more than once in any twelve (12) montb period, unless City is required to obtain information in order to comply with reporting or otber requirements of law herein. Borrower shall have the right at all reasonable times to inspect tbe books and records of City pertaining to the Property and tbe Project as pertinent to the purposes oftbis Agreement. 13.5 Interoretation: The terms of this Agreement shall be construed in accordance with tbe meaning of tbe language used and shall not be construed for or against any party by reason of tbe autborship of this Agreement or any other rule of construction which might otberwise apply. The section headings are for purposes of convenience only, and shall not be construed to limit or extend the meaning of tbis Agreement. 13.6 Entire Alp"eement. Waivers and Amendments: This Agreement, togetber with the Promissory Note, Deed of Trust, Affordable Housing Agreement and otber documents executed pursuant to this Agreement, integrates all of tbe terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or any part of tbe subject matter hereof. All waivers of the provisions of this Agreement must be in writing and signed by tbe appropriate autborities of tbe party to be charged, and all amendments and modifications hereto must be in writing and signed by the appropriate authorities of City and Borrower. 13.7 ConsentlReasonableness: Except when this Agreement specifically authorizes a party to witbhold its approval or consent in its sole and absolute discretion, when either City or Borrower shall require the consent or approval of another party in fulfilling any agreement, covenant, provision, or condition contained in tbis Agreement, such consent or approval shall not be unreasonably withheld, conditioned, or delayed by the party from whom such consent or approval is sought. 13.8 Severability: If any term, provision, covenant, or condition of tbis Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of tbis Agreement shall not be affected tbereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of tbis Agreement. In the event that all or any portion of tbis Agreement is found to be unenforceable, this Agreement or tbat portion which is found to be unenforceable shall be deemed to be a statement of intention by tbe parties; and the parties further agree tbat in such event, and to the maximum extent permitted by law, they shall take all steps reasonably necessary to 4] Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-48 comply with such procedures or requirements as may be reasonably necessary in order to make valid this Agreement or that portion which is found to be unenforceable. 13.9 Third Party Beneficiaries: Notwithstanding any other provision of this Agreement to the contrary nothing herein is intended to create any third party beneficiaries to this Agreement, and no person or entity other than City and Borrower, and the permitted successors and assigns of each of them, shall be authorized to enforce the provisions of this Agreement. 13.10 Reoresentations and Warranties: Borrower represents and warrants that: (i) Borrower is a limited partnership organized and existing under the laws of the State of California, in good standing, and authorized to do business and doing business in the County of San Diego; (ii) Borrower has all requisite power and authority to carry out its business as now and whenever conducted and to enter into and perform its obligations under this Agreement; (iii) by proper action of Borrower, Borrower's signatories have been duly authorized to execute and deliver this Agreement; (iv) the execution of this Agreement by Borrower does not violate any provision of any other agreement to which Borrower is a party; (v) except as may be specifically set forth in this Agreement, and except for the approval of Borrower's investor limited partner, no approvals or consents not heretofore obtained by Borrower are necessary in connection with the execution of this Agreement by Borrower or with the performance by Borrower of its obligations hereunder, and (vi) no attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, receivership or other proceedings are pending or threatened against the Borrower, or any partners of Borrower, nor are any of such proceedings contemplated by Borrower or any partners of Borrower. 13.11 Execution: This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 13.12 Relationshio of Parties: It is understood that the contractual relationship between the City and Borrower is such that Borrower is an independent entity and not an agent or partner of City. Nothing in this Agreement shall constitute Borrower as the agent or partner or representative of City for any purpose whatsoever. 13.13 Attornev's Fees: If either party to this Agreement is required to initiate or defend litigation in any way connected with this Agreement, the prevailing party in such litigation, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to its actual and reasonable attorney's fees. If either party to this Agreement is required to initiate or defend litigation with a third party because of the violation of any term or provision of this Agreement by the other party, then the party so litigating shall be entitled to its actual and reasonable attorney's fees from the other party to this Agreement. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, retaining expert witnesses, taking depositions and discovery, and all other necessary costs incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. The parties hereto acknowledge and agree that each such party shall bear its own legal costs incurred in connection with the negotiation, approval, and execution of this Agreement. 42 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-49 Article 14- Option and First Right of Refusal 14.1 City Ootion to Acquire the Prooertv Uoon Uncured Default. (a) Granting of the Ootion to Acquire Prooertv Upon Uncured Default bv Borrower. Borrower grants to City an Option ("Option") to purchase the Property, including without limitation the Project, on the terms and conditions set forth in an Option and First Right of Refusal as approved by the office of the City Attorney, in its reasonable discretion, to be exercised upon the uncured default of the Borrower under the terms of this Agreement, the MHP Loan Documents, the Bond Documents, the TCAC Regulatory Agreement, the Affordable Housing Agreement and any and all other loan documents and/or regulatory agreements affecting the Property and/or Project. (b) Consideration for the Ootion. The execution of this Agreement and the making of the City Loan by the City to the Borrower shall be the consideration for entering into the Option. Borrower hereby acknowledges that the City would not enter into this Agreement or make the City Loan without the Borrower granting the Option. (c) Memorandum ofOotion and First Right of Refusal. Borrower shall execute, acknowledge, deliver and cause to be recorded upon the close of the Escrow for the City Loan, the Memorandum of Option and First Right of Refusal, in a form and format as reasonably approved by the office of the City Attorney. (d) The Ootion Price. The Option price shall be the amount of the senior debt to the City Loan as approved by the City in this Agreement. (e) Rights of Tax Credit Limited Partner. The tax credit limited partner of the Borrower shall have an option to acquire the Property, upon default, which is senior to that granted to the City herein. The City's option shall be junior and subordinate to that of the tax credit limited partner, as approved by the City. (t) Term of the Ootion. The option in favor of the City shall commence upon the acquisition of the Property by the Borrower and shall terminate fifty-five years thereafter. (e) Exercise of the Option. The City may exercise the option within thirty (30) days after the expiration of notice of an uncured event of default under the applicable agreements, in accordance with the provisions of Section 12.1 of this Agreement. (t) Escrow to Effectuate Option. An escrow shall be opened between the Borrower and the City upon the timely exercise of the option and shall close within ninety (90) days thereafter. 14.2 City First Right of Refusal to Acouire Property. (a) Granting of Erst Right of Refusa! to Acouire Prooertv. In addition to the Option referenced within Section 14.1 of this Agreement, the Borrower hereby grants the City a First Right of Refusal to purchase the property on the terms set forth in an Option and First Right of Refusal as approved by the office of the City Attorney, in its reasonable discretion. (b) Consideration for First Right of Refusal. The execution of this Agreement and the making of the City Loan by the City is the consideration for entering into this First Right of Refusal. (d) Term of First Right of Refusal. The City's first right of refusal shall commence upon the 43 Landings Loan Agreement and Restrictive Covenants.C1ean.7.30.07 16-50 acquisition of the Property by the Borrower and shall expire fifty-five years thereafter. [SIGNATURE PAGE TO FOLLOW] 44 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 1 6-51 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date specified herein. "CITY" CITY OF CHULA VISTA, a public body, corporate and politic By: David R. Garcia, City Manager ATTEST: City Clerk APPROVED AS TO FORM: Ann Moore, City Attorney "BORROWER" ere Landings, L.P., a California limited partnership By: Ajax-Landings, LLC, a California limited liability company, Its Administrative General Partner By: Chelsea Investment Corporation, a California corporation, its Manager By: James J. Schmid, President S-l Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-52 EXHIBIT A LEGAL DESCRIPTION (To be supplied at closing) A-I Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-53 Exhibit "B" SOURCES AND USES COST AMOUNT SOURCE AMOUNT Land Purchase $10,590,000 Construction $14,269,634 Contingencv $625,861 Tax Credit Eauity $9,624,000 Permits & Fees $2,684,928 State MHP Loan $7,216,260 InterestlFees, Financing Costs $1,668,887 Bond $4,948,000 DesilffiJEn"ineerin" $755,000 citY Loan $920,000 Develoner Fees $2,500,000 Land Donation $10,580,000 Reserves, Le"al, Other $695,939 Deferred Developer Fee $501,989 TOTAL ESTIMATED COST $33,790,249 ARTICLE 14TOTAL $33,790,249 SOURCES B-1 Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-54 EXHIBIT C PROJECT BUDGET C-l Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-55 EXHIBIT D PROJECT PRO FORMA D-l Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-56 EXlllBIT E SCOPE OF WORK Borrower agrees to develop the Property so that it consists of a multi-family residential project consisting of 92 units, and to operate the Project for occupancy by very low and low income households. The Project shall consist of 92 three-bedroom units open space, a recreation area, storage areas, laundry rooms, garages, and other common area facilities in accordance with the plans approved by the City. The residential units will consist of II units affordable to very low income households at or below 30 percent of AMI according to HOME Program rules and regulations. Pursuant to the HOME Program requirements, eleven( II) three-bedroom units are being assisted with HOME funds (the "HOME assisted units") and must meet all of the HOME requirements for the term of the affordability restrictions on the units. The specific units to be designated HOME-assisted units may change from time to time in Borrower's sole discretion, provide that the aggregate number and category of said units remains the same. E-I Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-57 Exhihit F SCHEDULE OF PERFORMANCE July 27, 2007 Au ust 17, 2007 5e tember 26, 2007 October, 2007 November, 2007 December, 2007 Au ust, 2007 December, 2007 F-l Landings Loan Agreement and Restrictive Covenants.Clean.7.30.07 16-58 Attachment 3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City of Chula Vista City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Clerk No fee for recording pursuant to GOVERNMENT CODE Section 27383 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (the "Agreement") is entered into as of , 2007, between the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic ("Agency"), the CITY OF CHULA VISTA, a municipal corporation ("City"), and BROOKFIELD SHEA OT A Y LLC, a California limited liability company ("Developer"), and/or its successors or assignees. ARTICLE 1 - Recitals l.l Authoritv. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (HEALTH AND SAFETY CODE Section 33000, et seq.). City is a municipal corporation, organized and existing under the laws of the State of California. Agency and City are authorized to enter into binding agreements for the purpose of protecting public health, safety, and welfare. 1.2 Developer: Prooertv. Developer is the legal owner of the fee title to the real property located in the City ofChula Vista, which is described in the attached Exhibit A, which is hereby incorporated herein (the "Real Property"). The Real Property is currently unimproved. This agreement is intended to apply to the rental project on this property, of which a Final Map is forthcoming. 1.3 Proiect. Developer proposes to construct a multifamily housing project with 92 rental units in Otay Ranch Village II (the "Project"). Each dwelling unit in the Project is referred to as a "Unit" in this Agreement. The Project will consist of ninety-two (92) Units affordable to Low Income households at or below sixty percent (60%) of the Area Median Income. 1.4 Master Affordable Housin!! Aweement - Implementation of Citv Council Resolution 2003-492. This Agreement is intended to satisfY, in part, the requirements of City Council Resolution 2003- 492 and the Affordable Housing Agreement previously entered into between Developer and the City and DOC S00989729vI \ 24036.0030 HSRGB Doc 327324_<1 6/14/07 I 16-59 recorded February 24, 2003, as Document No. 2003-0200562, which requires that, as a condition to issuance of certain building permits to the land covered by the Otay Ranch Village 11 Sectional Planning Area (SPA) Plan, an "Affordable Housing Regulatory Agreement" be entered into between the City and Developer whereby Developer agrees to provide a specified percentage of the Units as low income housing and moderate income housing ("Master Affordable Housing Agreement"). The parties intend that this Agreement constitute an agreement referred to in City Council Resolution 2003-492 and also constitute an "Affordable Housing Regulatory Agreement" as described in the Master Affordable Housing Agreement and that this Agreement satisfy Master Developers low income affordable housing obligations thereunder. 1.5 Existing Regulatorv Agreement. The parties have previously entered into that certain Affordable Housing Regulatory Agreement, recorded December 1, 2006, as Document No. 2006-0855757, that satisfies Master Developer's moderate and low income affordable housing obligations under the Master Affordable Housing Agreement (as "for- sale" units) with respect to approximately 489 acres of land described as the "Project" in the Master Affordable Housing Agreement (together with any existing or future amendments thereto, "Existing Regulatory Agreement"). The parties have or will execute an amendment to the Existing Regulatory Agreement that allows Developer to fulfill the low income requirements set forth in the Master Affordable Housing Agreement through implementation of this Agreement. In the event this Agreement is terminated pursuant to Section 5.2.2 below, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 1.6 Future Owner: Financing Contingencv. It is anticipated that the Project will be constructed, owned and operated by a developer with expertise in low-income rental housing ("Apartment Developer"). Implementation of this Agreement is contingent upon Apartment Developer's ability to secure various state and local subsidies and tax credits for the Project, as described on Exhibit B attached hereto (collectively, "Low Income Financing"). As more particularly described in Section 5.2.2 below, this Agreement shall automatically terminate in the event Apartment Developer is unable or unwilling to secure the Low Income Financing. In such event, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 1.7 Standards. The permitted uses of the Real Property, the density of use thereof, the maximum height and size of buildings thereon, and provisions for reservations or dedication of land for public purposes and all other standards of development of the Real Property will be consistent and remain in compliance with the approved Design Review Committee application (DRC 05-44). 1.8 Binding on Successive Owners. Pursuant to Califomia GOVERNMENT CODE Section 27281.5, the parties intend that this Agreement constitute an encumbrance against the Real Property (other than the Unrestricted Units) which, during the Term of this Agreement, is binding on the owners and successive owners of the Real Property (other than the Unrestricted Units) for the benefit of the City. DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 2 16-60 NOW THEREFORE, AGENCY, CITY, AND DEVELOPER HEREBY AGREE AS FOLLOWS: ARTICLE 2 - Low Income Housinl! 2.1 Definitions. For the purposes ofthis article, the following defmitions apply: 2.1.1 "Area Median Income" means the latest median income from time to time determined by the United States Department of Housing and Urban Development (pursuant to Section 8 of the United States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area and as established by regulation of the State of California pursuant to HEALTH AND SAFETY CODE Section 50093. 2.1.2 "City Deed of Trust" means that certain deed of trust to be recorded against the portion or the Real Property comprising the Project that secures the City Note and the HOME Funds Agreement. 2.1.3 "City Note" means that certain promissory note and loan agreement to be executed by in connection with the City's allocation of the HOME Funds. 2.1.4 "HOME Funds Agreement" means that certain regulatory agreement entered into by the parties in connection with the City's allocation of the HOME Funds. 2.1.5 "HOME Funds" means the nine hundred twenty thousand dollars ($920,000) in HOME Funds allocated by the City to the Project. 2.1.6 "Low Income Tenants" means individuals or families with an income which does not exceed sixty (60) percent of the Area Median Income, as adjusted for household size. 2.1.7 "Low Income Apartment" means any of the ninety-two (92) apartment units on the Real Property which shall be continuously occupied only by and affordable to a Low Income Tenant. 2.1.8 "Manager's Unit" means that unit on the Real Property occupied by a resident property manager which may be exempt from occupancy restrictions. 2.1.9 "Affordable Apartment" means anyone of the apartments defined in Section 2.1.7 through 2.1.8; "Affordable Apartments" means all of such apartments collectively. 2.1.10 "Rent" means the total of monthly payments for all of the following: (a) use and occupancy of the apartment unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by the lessor which are required of all tenants, other than security deposits, and (c) a reasonable allowance for utilities not included in the above costs, excluding telephone service, which takes into consideration an adequate level of service. 2.1.11 "Housing Manager" means the Housing Manager of the Agency and City. 2.2 Oualification of Tenants. As to the Affordable Apartments, the following will apply: 2.2.1 Low Income Apartments. Developer shall restrict the occupancy and rental rate of the ninety two (92) Low Income Apartments (other than the Manager's Unit) to Low Income Tenants. Each DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_46114/07 3 16-61 three-bedroom Low Income Apartment will be leased to a household of up to six persons, meeting the maximum income levels. 2.3 Monthlv Rent. As to the Affordable Apartments, the following will apply: 2.3.1 Calculation of Maximum Low Income Rent. The monthly rent charged for all the Low Income Apartments shall not exceed one-twelfth of the amount obtained by multiplying 30 percent times 60 percent of the Area Median Income, as adjusted for household size appropriate to the unit as specified in Section 2.3.2. The Maximum Low Income Affordable Rent of a Low Income Apartment shall include use and occupancy of a housing unit and associated land and facilities, less a reasonable utility allowance. 2.3.2 Unit Sizes and Appropriate Household Sizes. Calculation of the Low Income Affordable Rent shall be based upon an assumed household size of four (4) persons for each three- (3-) bedroom unit, notwithstanding the actual size of the household that rents the Affordable Apartment. If Tax Credit requirements differ, the Tax Credit standards shall apply. 2.4 Proof of Oualification. Developer will obtain from each person(s) to whom Developer rents an Affordable Apartment a "Supplemental Rental Application" ("Application") in the form of Exhibit B attached hereto and incorporated herein (or such other form as Agency and City may from time to time adopt and of which Agency and City notifY Developer in writing). Developer will be entitled to rely on the Application and the supporting documents thereto in determining the eligibility of such person(s) to rent such Affordable Apartment. Developer will retain the Application and supporting documents for a period of at least three years after the applicant thereof ceases to occupy such Affordable Apartment. Copies of the most recent Applications for Low Income Tenants commencing or continuing occupancy of an Affordable Apartment shall be attached to the semi-annual report to be filed with the Agency and City in compliance with Section 2.5 of this Agreement. An Affordable Apartment occupied by a qualified tenant who at the commencement of the occupancy qualifies as a low income household shall be treated as occupied by a Low Income Tenant until a recertification of such tenant's income in accordance with Section 2.4.1 below demonstrates that such tenant no longer qualifies as a Low Income Tenant in accordance with the standards set forth in this Article 2. 2.4.1 Recertification of Income. Immediately prior to the first anniversary date of the occupancy of an Affordable Apartment by a qualified tenant, and on each anniversary date thereafter, the Developer shall recertifY the income of the occupants of each Affordable Apartment by obtaining a completed Supplemental Rental Application based upon the current income of each occupant of the Affordable Apartment. In the event the recertification demonstrates that such household's income exceeds the income at which such household originally qualified, but such household remains qualified as a Moderate Income Tenant, such tenant shall not be required to vacate the unit, but may be charged the lessor of 30% of their income or the 80% rent level for the unit size. 2.5 Waiver. Developer may apply in writing to the Housing Manager for a waiver, as to a specifically designated Affordable Apartment. Each such application will be accompanied by written data or other DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 4 16-62 evidence relied upon by Developer to show that, for the near future, there will be no reasonable demand for such Affordable Apartments(s). Within 30 days after receipt of any such application, the Housing Manager will, in writing, either grant or disapprove the requested waiver. Such a waiver shall not be permanent in nature. If and when data or other evidence suggest that the environment has changed since the application and granting of the waiver, and a demand for such apartments then exists, the Developer shall rent the next available unit to an income qualified household. 2.6 Records. Audits. Developer will submit to Agency and City semi-annual certified rent rolls, disclosing with respect to each Affordable Apartment (i) the monthly rent rate, (ii) the number of occupants for which the Affordable Apartment is rented, and (iii) the income of such occupant(s). Such submission shall be in the form of Exhibit C attached hereto and incorporated herein (or such other form as Agency and City may from time to time adopt and of which Agency and City notify Developer in writing). If Agency or City reasonably believes that violations of the rent, occupancy and/or income requirements of this Agreement have occurred and that an audit is necessary to verify a submitted rent roll, it will so notify Developer in writing thereof. Within ten days after delivery of said notice, Developer will deliver to Agency and City the names of three certified public accountants doing business in the metropolitan San Diego area. Agency and City will promptly deliver to Developer the Agency's and City's approval of one or more of said names. The audit will be completed by an approved certified public accountant, at Developer's cost, within 60 days after the delivery to Developer of Agency's and City's said approval. The certified public accountant will promptly deliver a copy of the written audit to Agency and City. 2.7 Term. This Agreement shall commence on the date this Agreement is signed by the Developer and City. Unless terminated earlier pursuant to Section 5, the Term of this Agreement shall be for a period of fifty- five (55) years after the Project receives a Certificate of Occupancy for the Affordable Apartments. Upon verification from the City that all obligations have been satisfied, or upon the early termination of this Agreement pursuant to Section, the City shall record a termination of this Agreement in the Office of the County Recorder of San Diego County, California. 2.8 Reports. Developer, at its expense, shall submit, or cause the Property Manager to submit, to the appropriate entities any and all reports required to be submitted pursuant to California Community Redevelopment Law. 2.9 Subordination of Affordabilitv Covenants. In the event that the Agency and City fmd that an economically feasible method of financing for the construction and operation of the Project, without the subordination of the affordable housing covenants as may be set forth in this Agreement, is not reasonably available, the Agency and City shall make the affordable housing covenants set forth in this Agreement junior and subordinate to the deeds of trust and other documents required in connection with the construction and permanent financing for the Project approved pursuant to the HOME Funds Agreement. Any subordination agreement entered into by the Agency and City shall contain written commitments which the Agency and City fmd are reasonably designed to protect Agency's and City's investment in the event of default, such as any of the following: (a) a right of Agency and City to cure a default on the loan prior to foreclosure, (b) a right of Agency and City to negotiate with the lender after notice of default from the lender and prior to foreclosure, (c) an agreement that, if (prior to foreclosure of the loan) Agency or City takes title to the property and cures the DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 5 16-63 default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to Agency or City, and (d) a right of Agency and City to acquire the Real Property from the Developer at any time after a material default on the loan. This section may be revised pending receipt of fmal form of senior loan documents. ARTICLE 3 - Uses of the Real PrODertv 3.1 Condition of the Real Prol'ertv. a. Developer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which may be located in, on or under the Real Property. Such precautions shall include compliance with all Govemmental Requirements with respect to Hazardous Materials. In addition, Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials. b. Developer shall indemnifY, defend and hold Agency and City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fme, penalty, punitive damage, or expense (including, without limitation, reasonable attorneys' fees), resulting from, arising out of, or based upon (i) the release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Real Property, no matter when such claim, action, suit or proceeding is first asserted or begun and no matter how the Hazardous Materials came to be released, used, generated, discharged, stored or disposed of on, under, in or about, to or from the Real Property, or by whom or how they are discovered, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Real Property. This indemnity shall include, without limitation, any damage, liability, fme, penalty, parallel indemnity after closing, cost or expense arising from or out of any claim, action, suit or proceeding, including injunctive, mandamus, equity or action at law, for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. c. For purposes of this Agreement, "Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, San Diego County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25130 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum; (vi) friable asbestos; (vii) polychlorinated byphenyls; (viii) methyl tertiary butyl ether; (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article II of Title 22 of the California Code of Regulations, Division 4, Chapter 20; (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.c. 91317); (xi) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 DOC SOC\989729vl \ 24036,0030 HSRGB Doc 327324_4 6/14/07 6 16-64 U.S.C. ~690l, et seq. (42 U.S.c. ~6903); or (xii) defmed as "hazardous substances" pursuant to Section 101 oftbe Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. ~960l, et seq. d. For purposes of tbis Agreement, "Governmental Requirements" means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of tbe United States, tbe State, tbe County of San Diego, tbe City, or any otber political subdivision in wmch tbe Property is located, and of any otber political subdivision, agency or instrumentality exercising jurisdiction over tbe Agency, tbe City, the Borrower or tbe Property. 3.2 Marketinl! and Selection of Tenants. The three (3) bedroom Low Income Apartments shall be marketed by Developer, or its successor or assignee, to persons who qualifY as Low Income Tenants witb households of three (3) persons or more. Tbe following are tbe household sizes appropriate to an Affordable Apartment: Maximum Affordable Marketinl! Tarl!et Marketinl! Tarl!et Three (3) Bedroom Rent Based on Assumed Household Size Four Persons Minimum Household Size Three Persons Maximum Household Size Six Persons Unit Size Developer shall submit for the approval of tbe Agency and City, which approval shall not unreasonably be witbheld, a plan for marketing the rental of the Low Income Apartments. Developer's marketing of units shall be in compliance witb federal and state fair housing law. Such marketing plan shall include a plan for publicizing tbe availability of the Low Income Apartments witbin the City, such as notices in any City-sponsored newsletter, newspaper advertising in local newspapers and notices in City offices. The marketing plan shall require Developer to obtain from tbe Agency the names of low- and moderate-income households who have been displaced by the Agency's redevelopment projects, and to notifY persons on such list of the availability of units in tbe Project prior to undertaking otber forms of marketing. The marketing plan shall provide tbat tbe persons on such list of displaced persons be given not fewer tban fifteen (15) days after receipt of such notice to respond by completing application forms for rental of Low Income Apartments, as applicable. All tenants of each Affordable Apartment shall meet tbe income requirements set forth herein and shall be in conformance witb the standards set forth in the approved Management Plan. Selection of residents shall be made randomly witbin the following levels of priority, ratber tban on a fIrst-come, first- serve basis: a. First Prioritv. Households which are displaced from tbeir primary residence as a result of an action of City or Agency, a condominium conversion involving the household's residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which the household's residence was located, and tbe household resided in such housing as the household's primary place of residence for at least two years prior to such action or event. b. Second Prioritv. Households which meet one of tbe following criteria: (i) households which are displaced from tbeir primary residence as a result of an action of City or Agency, a condominium conversion involving the household's residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which tbe DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_46/14/07 7 16-65 household's residence was located, and the household resided in such housing as the household's primary place of residence for at least one year but less than two years prior to such action or event; (ii) households with at least one member who has resided within the City, as that person's primary place of residence, for at least two years prior to the date of application for such housing; or (iii) households with at least one member who has worked within the City, as that person's principal place of full-time employment, for at least two years prior to the date of application for such housing. c. Third Priority. Other Low Income Households who do not meet the criteria for first priority or second priority above. 3.3 Maintenance of Real Property. Developer agrees for itself and its successors in interest to all or any portion of the Real Property, to maintain the improvements on the Real Property in conformity with applicable provisions of the City Municipal Code, and shall keep the Real Property free from any accumulation of debris or waste materials. During such period, the Developer shall also maintain the landscaping planted on the Real Property in a healthy condition. Developer shall participate in the City's Crime-Free Multi-Housing Program (or similar program which is adopted by the City) which has been adopted to facilitate strong property management, screening of applicants, and maintenance of multifamily rental properties. If at any time Developer fails to maintain the Real Property and such condition is not corrected within five days after written notice from Agency or City with respect to graffiti, debris, waste material, and general maintenance, or thirty days after written notice from Agency or City with respect to landscaping and building improvements, then Agency and City, in addition to whatever remedy it may have at law or at equity, but subject to the rights of the Permanent Lender, shall have the right to enter upon the applicable portion of the Real Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Real Property, and to attach a lien upon the Real Property, or to assess the Real Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by Agency and City andlor costs of such cure, including a fifteen percent (15%) administrative charge, which amount shall be promptly paid by Developer to Agency and City upon demand. 3.4 Property Management. The parties acknowledge that the Agency and City are interested in the long-term management and operation of the Real Property and in the qualifications of any person or entity retained by the Developer for that purpose (the "Property Manager"). Therefore, during the period of the effectiveness of the affordability covenants set forth herein, the Agency and City may from time to time review and evaluate the identity and performance of the Property Manager as it deems appropriate. If the Agency or the City determines that the performance of the Property Manager is materially deficient based upon the standards and requirements set forth in this Section 4.4 and the approved Management Plan (as defined below), the Agency and City shall provide notice to the Developer of such deficiencies, and the Developer shall use its best efforts to correct such deficiencies within a reasonable period of time. Upon the failure of the Property Manager to cure such deficiencies within the time set forth herein, the Agency and City shall have the right to require the Developer to immediately remove and replace the Property Manager with another property manager or property management company who is reasonably acceptable to the Agency and City, who (if required in the reasonable discretion of the Agency and City) is not related to or affiliated with the Developer, and who has not less than five (5) years experience in property management, including experience managing multifamily residential developments of the size, quality and scope of the Real Property. DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 8 16-66 In addition, the Developer shall submit for the reasonable approval of the Agency and City a detailed "Management Plan" which sets forth in reasonable detail the duties of the Property Manager, the tenant selection process, a security system and crime prevention program in compliance with the City's Crime-Free Multi-Housing Program (or similar program which is adopted by the City), the procedures for the collection of rent, the procedures for monitoring of occupancy levels, the procedures for eviction of tenants, the rules and regulations of the Real Property and manner of enforcement, a standard lease form, and other matters relevant to the management of the Real Property. The management plan shall require the Property Manager to adhere to a fair lease and grievance procedure and provide a plan for tenant participation in management decisions. The management of the Real Property shall be in compliance with the Management Plan which is approved by the Agency and City, subject, however, to any requirements of the Permanent Lender pursuant to the Permanent Loan Documents. The Management Plan may be revised from time to time upon the reasonable approval of the Agency, the City and the Developer. 3.5 Insurance. Within ten (10) days after the Apartment Developer's acquisition of the Real Property, Developer shall furnish to the Agency and City duplicate originals or appropriate certificates of insurance coverage evidencing that Developer has obtained, or cause to be obtained, insurance coverage with respect to the Real Property and Project in type, amount and from insurers with Best's ratings as are reasonably acceptable to Agency and City (or have been approved by the Permanent Lender), naming the Agency and City and its officers, agents, employees, representatives and their respective successors, as named or additional insureds by appropriate endorsements. Such policy shall include, without limitation, "all risk" property casualty insurance and comprehensive general liability insurance. Without limiting the generality of the foregoing, such policy shall also include coverage to insure Developer's indemnity obligations provided herein, unless Developer can demonstrate to the Agency's and City's reasonable satisfaction that such coverage is not available or is not available at a commercially reasonable cost consistent with the Project Budget. Developer covenants and agrees for itself and its successors and assigns that Developer and such successors and assigns shall keep such liability policy in full force and effect until the date that is fifty-five (55) years from the date of the City's issuance of the [mal certificate of completion for the Proj ect. In addition to any other remedy which Agency and City may have hereunder for Developer's failure to procure, maintain, and/or pay for the insurance required herein, Agency and City may (but without any obligation to do so, and subject to the rights of the Permanent Lender under the Permanent Loan Documents) at any time or from time to time, after thirty (30) days written notice to Developer, procure such insurance and pay the premiums therefor, in which event Developer shall immediately repay Agency and City all sums so paid by Agency and City together with interest thereon at the rate of ten percent (10%) per annum or the maximum legal rate, whichever is less. 3.6 Proceeds of Insurance. Should the Project be totally or partially destroyed or rendered wholly or partly uninhabitable by fire or other casualty required to be insured against by Developer, Developer shall promptly proceed to obtain insurance proceeds and take all steps necessary to promptly and diligently commence the repair or replacement of the Project to substantially the same condition as the Project is required to be maintained in pursuant to this Agreement if (i) the Developer agrees in writing within ninety (90) days after payment of the proceeds that such repair or rebuilding is economically feasible and (ii) the Permanent Lender permits such repair or rebuilding, provided that the extent of Developer's obligation to restore the Project shall be limited to the amount of the insurance proceeds actually received by the Developer. If the Developer is unable or is not permitted to repair, replace, or restore the Project, Developer must give DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_4 6114/07 9 16-67 notice to Agency and City (in which event Developer will be entitled to all insurance proceeds, subject to any outstanding lien obligations, but Developer shaH be required to remove all debris from the Real Property) and Developer may construct such other improvements on the Real Property as are consistent with applicable land use regulations and approved by the Agency and City and the other governmental agency or agencies with jurisdiction. 3.7 Taxes. Assessments. Encumbrances. and Liens. Developer shall pay prior to delinquency all real estate taxes and assessments properly assessed and levied on the Real Property. Nothing herein contained shall be deemed to prohibit Developer from contesting the validity or amounts of any tax, assessment, encumbrance, or lien, or to limit the remedies available to Developer in respect thereto. 3.8 Hold Harmless. Developer agrees to indemnifY, protect, defend and hold harmless Agency and City, and their officers, agents, employees, representatives and successors, from and against any and all claims, damages, actions, costs, demands, expenses or liability, including, without limitation, reasonable attorneys' fees and court costs, which may arise from the direct or indirect actions or inactions of the Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developers' behalf which relate to the Real Property or Project. This hold harmless agreement applies, without limitation, to all damages and claims for damages suffered or alleged to have been suffered by reasons of the operations referred to in this Section, regardless of whether or not the Agency or City prepared, supplied or approved plans or specifications, or both, for the Property or Project. This indemnity by Developer and all other indemnities set forth herein shall survive any foreclosure of the Real Property by the City pursuant to the terms of the City Deed of Trust. 3.9 Further Indemnification of Agencv and City. It is understood and agreed that the parties hereto have entered the HOME Funds Agreement as a method of providing necessary assistance to Developer in connection with the construction of low income housing and related improvements on the Real Property pursuant to all applicable laws and that, by contributing public funds to assist in the accomplishment of such construction or by otherwise contributing or assisting with the accomplishment of such construction, the Agency and City assume no responsibility for insuring that the same is adequately undertaken (including, without limitation, the existence and/or remediation of any hazardous or toxic substances on the Real Property); and, as a material consideration to Agency and City for entering into the Loan Agreement (and not by way of limiting the generality of Section 3.8 above), Developer agrees to indemnifY, protect, defend and hold harmless Agency and City and all their representatives, officers, employees and their respective successors from and against any and all claims, damages, actions, demands, liabilities, obligations, expenses, losses or costs, including, without limitation, reasonable attorneys' fees and court costs, which may arise or in any manner are connected with the construction of the Project pursuant to the HOME Funds Agreement, excluding, however, from Developer's indemnity any such liability, losses, damages (including foreseeable or unforeseeable consequential damages), penalties, fines, expenses (including out- of-pocket litigation costs and reasonable attorneys' fees) arising out of the sole negligence of Agency, City or their employees, contractors, subcontractors or agents. 3.10 Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the enjoyment of DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_4 6114/07 10 16-68 the Real Property, nor shall Developer itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Real Property or any portion thereof. Developer shall further comply with all applicable requirements of the Americans with Disabilities Act ("ADA"). 3.11 Form of Nondiscrimination and Nonsel!fel!ation Clauses. Developer shall refrain from restricting the rental, sale, or lease of any portion of the Real Property, or contracts relating to the Real Property, on the basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person and shall comply with all applicable requirements for the ADA. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, subl~ase, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself, or any persons claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees in the land herein conveyed and further covenants that all such individuals and entities shall comply with all requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, et seq.). The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: 'That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased, nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein lease and the lease shall be carried out in compliance with all requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.c. 912101, etseq.).'" c. In contracts: "There shall be no discrimination against or segregation of any persons or group of persons on account ofrace, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the transferee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of land and all such activities shall be conducted in compliance with all the requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, et seq.)." ARTICLE 4 - Breach 4.1 Breach bv Al!encv or City. DOC soa989729vl \ 24036.0030 HSRGB Doc 327324_46/14/07 II 16-69 If Agency or City breaches any of its covenants contained in this Agreement, Developer will have available to it all legal and equitable remedies afforded by the laws of the State of California. This section shall not be construed as a waiver of any the City's immunities. 4.2 Breach bv Developer of Rent Limit Reauirements. If, with respect to any Affordable Apartment, Developer breaches this Agreement by charging higher rent than that herein permitted, Developer will, immediately upon Agency's or City's demand, (i) reduce the rent to that permitted herein and (ii) refund to any tenants who theretofore paid such higher rent the amount of the excess, together with interest hereon at the rate of ten (10) percent per annum, computed from the date(s) of payment of the excess by said tenants to the date of said refund. The provisions of this Section constitute a third-party beneficiary contract in favor of such tenants. Further, Agency and City are hereby granted the power (but not the duty) to act as attorney-in-fact of such tenants in enforcing this Section. 4.3 Breach by Developer of Leasing Requirements. If, with respect to any Affordable Apartment, Developer breaches this Agreement by leasing to tenants who are not qualified pursuant to Section 2.2, Developer will, immediately upon Agency's or City's written demand and at Developer's sole cost, take all lawful steps to terminate such leasing. 4.4 Breach bv Develooer of Other Reauirements. If the Developer breaches any of its covenants contained in this Agreement, the City and the Agency will have available to it all legal and equitable remedies afforded by the laws of the State of California in addition to any remedies provided herein. 4.5 Remedies Not Exclusive. The remedies set forth in Sections 4.2 and 4.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to Agency and City. ARTICLE 5 - General Provisions 5.1 Assignment. The rights and obligations of Developer under this Agreement may be transferred or assigned, provided such transfer or assignment is made as a part of the conveyance of the fee of all or a portion of the Real Property. Any such transfer or assignment will be subject to the provisions of this Agreement. During the term of this Agreement, any such assignee or transferee will observe and perform all of the duties and obligations of Developer contained in this Agreement as such duties and obligations pertain to the portion of said real property so conveyed. 5.2 Amendment or Termination of Agreement. 5.2.1 By Mutual Consent. This Agreement may be amended from time to time or terminated by the mutual consent of the parties hereto, but only in the same manner as its adoption. The term "this Agreement" includes any such amendment properly approved and executed. 5.2.2 Earlv Termination Uoon Failure of Financing Contingencv. This Agreement shall automatically terminate in the event Apartment Developer is unable to secure the Low Income Financing DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 12 16-70 on or before Julv I, 2008, or if Developer provides written notice to the City (at any time prior to such date) that Apartment Developer is no longer seeking or is unable to secure the Low Income Financing. In such event, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 5.3 Enforcement. Unless amended or terminated as provided in Section 5.2, this Agreement is enforceable by any party to it despite a change in the applicable general or specific plans, zoning, subdivision or building regulations adopted by City which alter or amend the rules, regulations or policies governing permitted uses of the land, density and design. 5.4 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the parties' successors or assignees in interest. 5.5 Relationshio of Parties. It is understood that the contractual relationship between Agency, City and Developer is such that Developer is an independent contractor and not an agent of Agency or City. 5.6 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands or requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. Agencv/Citv: Redevelopment Agency of the City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: Community Development Director With a Coov to: City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Attorney Develooer: Shea Homes 9990 Mesa Rim Road San Diego, California 92121 Attn: Jim Kilgore DOC soa989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 13 16-71 With a CODV to: Brookfield Shea Otay LLC 12865 Pointe Del Mar, Suite 200 Del Mar, California 92014 Attention: Ron Grunow A party may change its address by giving notice in writing to the other party. Thereafter, notices, demands and requests shall be addressed and transmitted to the new address. ARTICLE 6 - Conflicts of Law 6.1 Conflict of City and State or Federal Laws. In the event that state or federal laws or regulations enacted after this Agreement has been entered into prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, the parties will: 6.1.1 Notice and CODies: Provide the other party with written notice of such state or federal restriction; provide a copy of such regulation or policy and statement of conflict with the provisions of this Agreement. 6.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good faith in a reasonable attempt to modifY this Agreement to comply with such federal or state law or regulation. 6.2 Agencv Board and City Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled for consideration by the governing board of the Agency and the City Council. The Agency and City Council, at such meeting, will determine the exact modification or suspension which shall be necessitated by such federal or state law or regulation. Developer, at the meeting, will have the right to offer oral and written testimony. Any modification or suspension will be taken by the affirmative vote of not less than a majority of the authorized voting members of the governing board of the Agency and City Council. 6.3 Cooperation in Securing Permits. The Agency and City shall cooperate with the Developer in the securing of any permits which may be required as a result of such modifications or suspensions. ARTICLE 7 - Miscellaneous Provisions 7.1 Rules of Construction. The singular includes the plural and the neuter gender includes the masculine and the feminine. 7.2 Severability. The parties hereto agree that the provisions are severable. If any provision of this Agreement is held invalid, the remainder of this Agreement will be effective and will remain in full force and effect, unless amended or modified by mutual consent of the parties. DOC SOC\989729vl \ 24036.0030 H$RGB Doc 327324_4 6/14/07 14 16-72 7.3 Entire Agreement Waivers and Amendments. Except for the Regulatory Agreement, this Agreement, together with any other written document referred to or contemplated herein, embody the entire agreement and understanding between the parties relating to the Low Income Apartments. Neither this Agreement nor any provision hereof may be amended, modified, waived, or discharged, except by an instrument in writing executed by the party against which enforcement or such amendment, waiver, or discharge is sought. 7.4 Caoacities of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 7.5 Governing LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the Federal or State courts located in San Diego County, State of California and, if applicable, the City of Chula Vista or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [NEXT PAGE IS SIGNATURE PAGE] DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 15 16-73 IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of the day and year first written above. "AGENCY" REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic By: Its: Chair ATTEST: Agency Secretary "CITY" CITY OF CHULA VISTA, a municipal corporation of the State of California By: Its: Mayor ATTEST: Susan Bigelow, City Clerk APPROVED AS TO FORM: City and Agency Attorney DOC S0C\989729vl \ 24036.0030 S-I 16-74 "DEVELOPER" BROOKFIELD SHEA OTAY LLC, a California limited liability company BY: BROOKFIELD OTAY LLC, a Delaware limited liability company, a Member By: Name: Its: Date: By: Name: Its: Date: BY: SHEA OTAY II LLC, a California limited liability company, a Member BY: SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership, its sole Member By: Name: Its Authorized Agent: Date: By: Name: Its Authorized Agent: Date: DOC SQC\989729vl \ 24036.0030 S-2 16-75 STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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 hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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 hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) DOC SQC\989729vl \ 24036.0030 16-76 STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) DOC soa989729vl \ 24036.0030 16-77 EXHIBIT "A" Legal Description of Project All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: Lot I of CHULA VISTA TRACT NO. 01-11 OTAY RANCH VILLAGE II NEIGHBORHOODS MU-I AND R-19, in the City ofChula Vista, County of San Diego, State of California, according to Map thereof No. , filed with the County Recorder of San Diego County. DOC SOC\989729vl \ 24036.0030 16-78 DOC SOC\989729vl \ 24036.0030 EXHIBIT "B" Low Income Financing Requirements [To be attached] 16-79 Attachment 4 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Chula Vista 276 Fourth Avenue Chula Vista CA 91910 Attn: City Clerk No fee for recording pursuant to Government Code Section 27383 (Space above for Recorder's Use) FIRST AMENDMENT TO AFFORDABLE HOUSING REGULATORY AGREEMENT THIS FIRST AMENDMENT TO AFFORDABLE HOUSING REGULATORY AGREEMENT (this "Amendment") is entered into as of ,2007, between the CITY OF CHULA VISTA, a municipal corporation ("City"), and BROOKFIELD SHEA OTAY LLC, a California limited liability ("Developer"), and/or its successors or assignees. Unless otherwise defined herein, capitalized terms shall have the same meaning as ascribed in the Regulatory Agreement. Recitals A. Developer is the legal owner of the fee title to the real property which is described in the attached Exhibit "A," which is hereby incorporated herein (the "Real Property"). B. Developer and City have entered into that certain Affordable Housing Regulatory Agreement, recorded December I, 2006, as Document No. 2006-0855757 ("Regulatory Agreement"). The Regulatory Agreement is intended to satisfy the requirements of City Council Resolution 2003-492 and that certain Affordable Housing Agreement previously entered into by the City and Developer and recorded February 24, 2003, as Document No. 2003-0200562 ("Master Affordable Housing Agreement"). Although the Master Affordable Housing Agreement allows the affordable housing obligations to be met through a combination of housing types that may include rental housing, "for-sale" housing or other forms of housing, the Regulatory Agreement currently requires Developer to provide ninety-two (92) units affordable to Low Income Buyers and one hundred fifteen (115) units affordable to Moderate Income Buyers on a "for-sale" basis. C. Subsequent to the recordation of the Regulatory Agreement, Developer proposed an alternative to the original project that would allow the 92 units for low-income households ("Low Income Units") to be rental housing rather than for-sale housing. A developer with expertise in low- income rental housing ("Apartment Developer") has been selected by Developer to develop and construct the Low Income Units as a low-income apartment project ("Apartment Project"). It is anticipated that Apartment Developer or one of its affiliates would ultimately own and operate the -1- 61800-180 327345_2 16-80 Apartment Project. The City tentatively approved the Apartment Project alternative on March 20, 2007, subject to Apartment Developer being able to secure various state and local subsidies and tax credits for the Apartment Project, including a subsidy from the State of California Multi-family Housing Program (collectively, "Low Income Financing"). D. Developer and the City intend to enter into a separate "Affordable Housing Agreement" ("For-Rent Agreement") that allows Developer to meet the low-income housing requirements through the development of the Apartment Project. Upon execution of the For-Rent Agreement and thereafter until it is terminated early pursuant to Section 5.2.2 of the For-Rent Agreement ("Early Termination"), the provisions of the For-Rent Agreement shall control and supersede all of the provisions in the Regulatory Agreement relating to the Low Income Units. E. An amendment to the Regulatory Agreement is needed to allow Developer to meet the low-income housing requirements through implementation of the For-Rent Agreement or, in the event the For-Rent Agreement is terminated, through implementation of the Regulatory Agreement. F. Developer and the City also acknowledge that current market conditions may result in a lengthy marketing period for the sale of the Affordable Units. Rather than allowing such Affordable Units to remain vacant, the City agrees that Developer may rent the Affordable Units to qualified Low or Moderate Income households on an interim basis, subject to the provisions set forth in Section 2 below. G. Developer and the City desire to amend the Regulatory Agreement to address these and other items. NOW THEREFORE, THE CITY AND DEVELOPER HEREBY AGREE TO AMEND THE REGULATORY AGREEMENT AS FOLLOWS: I. Low-Income Requirements - Alternative Comoliance. The Regulatory Agreement is amended to allow for alternative compliance mechanisms to meet the low-income requirement set forth in the Master Affordable Housing Agreement as follows: (a) Prior to Execution ofF or-Rent Agreement. Prior the execution of the For-Rent Agreement, the Regulatory Agreement shall be the exclusive mechanism for implementing the low- income requirements set forth in the Master Affordable Housing Agreement. (b) After Execution of For-Rent Agreement. Upon execution of the For-Rent Agreement, and thereafter while the For-Rent Agreement remains in effect, the provisions of the For- Rent Agreement shall control and supersede all of the provisions of the Regulatory Agreement relating to the Low Income Units. While the For-Rent Agreement is in effect, the provisions of the Regulatory Agreement relating to the Low Income Units shall have no force and effect. If and when the funds associated with the Low Income Financing are secured, as verified by the City, the provisions of the Regulatory Agreement relating to the Low Income Units shall permanently terminate, have no further force and effect and shall be replaced by the F or-Rent Agreement. (c) Earlv Termination of For-Rent Agreement. In the event of Early Termination of the For-Rent Agreement (pursuant to Section 5.2.2 of the For-Rent Agreement) as a result of . -2- 61800-180 327345_2 1 6-81 Apartnient Developer's failure to meet the Low Income Financing contingency, the provisions of the Regulatory Agreement relating to the Low Income Units shall become operative and be utilized to fulfill the low-income requirements set forth in the Master Affordable Housing Agreement. 2. Interim For-Rent Option. The Regujatory Agreement is amended to allow the Affordable Units to be rented on an interim basis as follows: (a) Marketing Period. In the event Developer has been unable to sell an Affordable Unit within one hundred twenty (120) days after such Affordable Unit is first marketed to Affordable Buyers, Developer may request approval from the City to rent such Affordable Unit to a qualified Low or Moderate Income household, as the case may be. The Developer should submit documentary evidence to the Housing Manager of the City's Community Development Department, which in the opinion of the Housing Manager, demonstrated a good faith effort by the Developer to market and sell the Affordable Unit, but resulted unsuccessfully based on the existing market conditions and other relevant factors.. (b) Oualification. The Affordable Units shall be rented only to qualified households whose annual income, adjusted for household size, is at or below 60% of Area Median Income (for Low Income Units) or 110% of Area Median Income (for Moderate Income Units) as reasonably verified by the City. Such Affordable Units shall also be subject to any additional qualification, monitoring and reporting requirements imposed by the City. (c) Limited Lease Term. The lease term of any Affordable Unit rented to a qualified household pursuant to this Section shall not exceed one (1) year, but may be extended for periods not exceeding one (1) year each, provided that, prior to the expiration of the then current lease term, the Developer submits to the Housing Manager of the City's Community Development Department documentary evidence, which in the opinion of the Housing Manager, demonstrates a good faith effort by the Developer to continue to market and sell the Affordable Unit or that such effort would be unsuccessful based on the existing market conditions and other relevant factors. (d) Rent-to-Own Arrangements. Developer may enter into a rent-to-own transaction with qualified Low or Moderate Income households with the City's prior written consent and approval of the documentation that will be utilized for such transaction( s). 3. Application of Oualification Criteria. Section 3.16 of the Regulatory Agreement is deleted in its entirety and replaced with the following: "3.16 Application of Oualification Criteria. The Housing Manager of the City's Community Development Department may allow one or more qualification criteria set forth in Section 3.15 to not apply to a particular sale of an Affordable Unit if for a period of 120 days Developer has not been able to sell the Affordable Unit to an Affordable Buyer who could meet all of the qualification criteria set forth in Section 3.15." 4. Scope of Amendment. As amended by this Amendment, the Regulatory Agreement remains in full force and effect. -3- 61800-180 327345_2 16-82 IN WITNESS WHEREOF the parties hereto have caused this Amendment to be executed as ofthe day and year fIrst written above. "CITY": CITY OF CHULA VISTA, a municipal corporation of the State of California By: Cheryl Cox, Mayor ATTEST: Susan Bigelow, City Clerk APPROVED AS TO FORM: Ann Moore, City Attorney -4- 61800-180 327345_2 16-83 "DEVELOPER": BROOKFIELD SHEA OTAY LLC, a California limited liability company BY: BROOKFIELD OTAY LLC, a Delaware limited liability company, a Member By: Name: Its: Date: By: Name: Its: Date: BY: SHEA OTA Y 1I LLC, a California limited liability company, a Member BY: SHEA HOMES LIMITED PAR1NERSHIP, a California limited partnership, its sole Member By: Name: Its: Date: By: Name: Its: Date: -5- 61800~180 327345_2 16-84 EXHIBIT A LEGAL PROPERTY DESCRIPTION All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: Lot I of CHULA VISTA TRACT NO. 01-11 OTAY RANCH VILLAGE 11 NEIGHBORHOODS MU-I AND R-19, in the City ofChula Vista, County of San Diego, State of California, according to Map thereof No. . filed with the County Recorder of San Diego County. -6- 61800.}80327345_2 16-85 City of Chula Vista Request for Information Affordable Housing Review ATTACHMENTS DISCLOSURE STATEMENT (Please Print) The following information must be disclosed: 1. Aoollcant . List the names and addresses of all persons having a financial interest In the application. Ii_:~~~~~:~~:~}~?f.~:te:~! ,7t~:~~~;~J~~~i~~ .~, ~~~~~.t~__ ~~~~~... ,..",-<_~~"~",_>=,,,-,>.: r ~_ _e;,~.,-,~ .:;.:~l""=~;::.;.~~< ,"-.' , .~..~;r.. ,--'.~ James J. Schmid 5993 Avenida Encinas. Suile 101 Carlsbad CA 92008 2. Qml!!:. List the names and addresses of all persons having any ownershlp interest In the property involved. 5993 Avenida Encinas. Suite 101 Carlsbad. CA 92008 Prometheus-Landings, LLC. a to-be-formed limited 5993 Avenida Encinas, Suite 101 Ilsbill com Carlsbad. CA 92008 3. If any person Identified pursuant to (1) or (2) above Is a corporation or partnership, list the names and addresses of all individuals owning more than 10% of \he shares in the shares of the corporation or owning any partnership interest in the partnership, ~~t;i~r~5F,~ ,-c~:'~~~~~)ti:l.o ~ ~~.,. ?-~~ ~~~ ~ ";t;_~~{~~~~Dt~~~=.~~~~~~9Jg~J,~{,-:~~~:~~ ~~W~~,,:,~_,,',"$:'~ *"."-~i:t'~,,""71~ . ~,_ _-.''4.'>.'' ~ ~,,~ e'l;;'T-~~"''''~~~4--,"",~w.-Sk~~'''~.{::~~0<''I~~';~ 4. If any person Identified pursuant to (1) or (2) above is a non-profit organization or a trust, list the names and addresses of any person serving as officer or director of the non-profit organization or as a trustee or benefICiary of the trust. Community Development Housing Divlslon 276 FOURTH AVE . CHULA VISTA' CALIFORflr!dt10 . (619) 585-5722 . FAX (619) 585 -5698 blSCLOSURE STATEMENT PAGE 2 5. Have you had more than $250 worth of business transacted with any member of City staff. Boards. Commissions. Committees and/or City Council wlthin the past twelve months? YesO No IXI If yes. please indicate person(s): Person identified as: "Any individual, firm. co-partnership. joint venture, association, social club, fraternal organization, corporation, estate trust. receiver, syndicate. this and any other county, city municipality, district or other political subdivision. or any other group or combination acting as a unit." NOTE: Attach additional pages as necessary. 2 -/~-07 Date -::;;;;,,~S -:T ~,l#f1'E/ Print or Type Name '2-1'/-07 Date Community Development Housing Division 276 FOURTH AVE' CHULA VISTA' CAUFORNIA 91910' (619) 585-5722 . FAX (619) 585 -5698 16-87 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $960,000 FROM HOME INVESTMENT PARTNERSHIP FUNDS FOR FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE A LOAN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND CIC LANDINGS, L.P. AND ALL OTHER AGREEMENTS AND DOCUMENTS NECESSARY FOR THE FINANCING OF THE PROPOSED LANDINGS AFFORDABLE APARTMENTS, AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE EXISTING AFFORDABLE HOUSING REGULATORY AGREEMENT FOR THE 115 AFFORDABLE FOR-SALE UNITS AND A NEW AFFORDABLE HOUSING AGREEMENT FOR THE 92 AFFORDABLE RENTAL UNITS IN NEIGHBORHOOD R-19 IN OT A Y RANCH VILLAGE ELEVEN. WHEREAS, Brookfield Shea Otay, LLC proposed to build 207 affordable for-sale units (92 low-income and 115 moderate-income) in Neighborhood R-19 ofOtay Ranch Village Eleven to satisfy its affordable housing obligations; and WHEREAS, the City and Brookfield Shea entered into an Affordable Housing Regulatory Agreement (the "Regulatory Agreement") to assure the continued affordability of the units; and WHEREAS, Brookfield Shea desires to revise the development so that the 92 low-income units will be rental units rather than for-sale units; and WHEREAS, the Landings Affordable Apartments will provide 92 affordable rental units: and WHEREAS, the City and Brookfield Shea wish to amend the Affordable Housing Regulatory Agreement to apply only to the 115 moderate-income for-sale units; and WHEREAS, the City and Brookfield Shea wish to enter into an additional Affordable Housing Agreement to apply to the 92 low-income rental units; and WHEREAS, on March 20,2007, pursuant to Resolution No. 2007-064, the City Council conditionally approved financial assistance, subject to future appropriation, in an amount not to exceed $920,000 from the City's HOME Investment Partnership Program (HOME) funds for the development ofthe Landings Affordable Apartments subject to the City's approval ofan affordable housing regulatory agreement and a loan agreement and certain minimum conditions. 16-88 Resolution No. 2007- Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista as follows: I. That it appropriates $960,000 from HOME Investment Partnership funds for financial assistance for the development of the Landings Affordable Apartments. 2. That it authorizes the City Manager to execute a loan agreement between the City of Chula Vista and CIC Landings, L.P. and all other agreements and documents necessary for the financing of the Landings Affordable Apartments. 3. That it authorizes the City Manager to execute an amendment to the existing Affordable Housing Regulatory Agreement for the liS affordable for-sale units and a new Affordable Housing Agreement for the 92 affordable rental units in neighborhood R-19 in Otay Ranch Village Eleven. Presented by Approved as to form by Ann Hix Acting Director of Community Development ,!~ j (/A~ Ann Moore City Attorney J:\Altomey\RESQICOMM DEV\FINANClAL (LANDINGS) 8-7,07,doc 16-89 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE PROPOSED DEVELOPMENT OF THE LANDINGS AFFORDABLE APARTMENTS PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 WHEREAS, on July 17, 2007, pursuant to Housing Authority Resolution No. 2007-034, the Housing Authority of the City of Chula Vista (the "Authority") declared its intention to issue multifamily housing revenue bonds not to exceed $17,500,000 aggregate principal amount (the "Bonds") to finance the development of a 92-unit multifamily rental housing project (the "Project") located at the comer of Discovery Falls Road and Crossroads Street in Otay Ranch Village 11 in the City of Chula Vista to be owned by CIC Landings, L.P.; and WHEREAS, pursuant to Section 147(1) of the Internal Revenue Code of 1986, as amended (the "Code"), the elected representative of the governmental unit having jurisdiction over the area in which the Project is located is required to approve the Bonds after a public hearing following reasonable public notice; and WHEREAS, the Project is located within the City ofChula Vista (the "City"); and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body and representative of the City; and WHEREAS, on July 20,2007, the City caused a notice to appear in the Star News, which is a newspaper of general circulation in the City, to the effect that a public hearing would be held by the City Council on August 7, 2007, regarding the issuance of the Bonds by the Authority; and WHEREAS, on August 7, 2007, the City Council held the public hearing, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista, as follows: 1. That it finds and declares that the above recitals are true and correct. 2. That it approves the issuance of the Bonds by the Authority, in an aggregate principal amount not to exceed $17,500,000 and with a final maturity not later than 45 years from the date of issuance, to finance the proposed development of the Landings Affordable Apartments. 16-90 COllncil Resolution No. 2007- Page 2 3. That it intends that this Resolution constitute the approval of the issuance of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with Section 147(f) of the Code. Presented by Approved as to form by Ann Hix Acting Director of Community Development ~~~ !l/:~ Ann Moore City Attorney JIAllom,ylRESOICOMM DEVITEFRA (LANDINGS) 8-7-07.DOC 16-91 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~tLC~6 Ann Moore City Attorney Dated: '7 ! ? 0 I 0 '1 First Amendment to Affordable Housing Regulatory Agreement Between City of Chula Vista And Brookfield Shea Otay LLC 16-92 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Chula Vista 276 Fourth Avenue Chula Vista CA 91910 Attn: City Clerk No fee for recording pursuant to Government Code Section 27383 (Space above for Recorder's Use) FIRST AMENDMENT TO AFFORDABLE HOUSING REGULATORY AGREEMENT THIS FIRST AMENDtvfENT TO AFFORDABLE HOUSING REGULATORY AGREEMENT (this "Amendment") is entered into as of ,2007, between the CITY OF CHULA VISTA, a municipal corporation ("City"), and BROOKFIELD SHEA OTAY LLC, a California limited liability ("Developer"), and/or its successors or assignees. Unless otherwise defined herein, capitalized terms shall have the same meaning as ascribed in the Regulatory Agreement. Recitals A. Developer is the legal owner of the fee title to the real property which is described in the attached Exhibit "A," which is hereby incorporated herein (the "Real Property"). B. Developer and City have entered into that certain Affordable Housing Regulatory Agreement, recorded December I, 2006, as Document No. 2006-0855757 ("Regulatory Agreement"). The Regulatory Agreement is intended to satisfy the requirements of City Council Resolution 2003-492 and that certain Affordable Housing Agreement previously entered into by the City and Developer and recorded February 24, 2003, as Document No. 2003-0200562 ("Master Affordable Housing Agreement"). Although the Master Affordable Housing Agreement allows the affordable housing obligations to be met through a combination of housing types that may include rental housing, "for-sale" housing or other forms of housing, the Regulatory Agreement currently requires Developer to provide ninety-two (92) units affordable to Low Income Buyers and one hundred fifteen (115) units affordable to Moderate Income Buyers on a "for-sale" basis. C. Subsequent to the recordation of the Regulatory Agreement, Developer proposed an alternative to the original project that would allow the 92 units for low-income households ("Low Income Units") to be rental housing rather than for-sale housing. A developer with expertise in low- income rental housing ("Apartment Developer") has been selected by Developer to develop and construct the Low Income Units as a low-income apartment project ("Apartment Project"). It is anticipated that Apartment Developer or one of its affiliates would ultimately own and operate the -1- 61800-180 327345_2 16-93 Apartment Project. The City tentatively approved the Apartment Project alternative on March 20, 2007, subject to Apartment Developer being able to secure various state and local subsidies and tax credits for the Apartment Project, including a subsidy from the State of California Multi-family Housing Program (collectively, "Low Income Financing"). D. Developer and the City intend to enter into a separate "Affordable Housing Agreement" ("For-Rent Agreement") that allows Developer to meet the low-income housing requirements through the development of the Apartment Project. Upon execution of the For-Rent Agreement and thereafter until it is terminated early pursuant to Section 5.2.2 of the For-Rent Agreement ("Early Termination"), the provisions of the For-Rent Agreement shall control and supersede all of the provisions in the Regulatory Agreement relating to the Low Income Units. E. An amendment to the Regulatory Agreement is needed to allow Developer to meet the low-income housing requirements through implementation of the For-Rent Agreement or, in the event the F or-Rent Agreement is terminated, through implementation of the Regulatory Agreement. F. Developer and the City also acknowledge that current market conditions may result in a lengthy marketing period for the sale of the Affordable Units. Rather than allowing such Affordable Units to remain vacant, the City agrees that Developer may rent the Affordable Units to qualified Low or Moderate Income households on an interim basis, subject to the provisions set forth in Section 2 below. G. Developer and the City desire to amend the Regulatory Agreement to address these and other items. NOW THEREFORE, THE CITY AND DEVELOPER HEREBY AGREE TO AMEND THE REGULATORY AGREEMENT AS FOLLOWS: 1. Low-Income Requirements - Alternative Compliance. The Regulatory Agreement is amended to allow for alternative compliance mechanisms to meet the low-income requirement set forth in the Master Affordable Housing Agreement as follows: (a) Prior to Execution of For-Rent Agreement. Prior the execution of the For-Rent Agreement, the Regulatory Agreement shall be the exclusive mechanism for implementing the low- income requirements set forth in the Master Affordable Housing Agreement. (b) After Execution of For-Rent Agreement. Upon execution of the For-Rent Agreement, and thereafter while the F or-Rent Agreement remains in effect, the provisions of the For- Rent Agreement shall control and supersede all of the provisions of the Regulatory Agreement relating to the Low Income Units. While the For-Rent Agreement is in effect, the provisions of the Regulatory Agreement relating to the Low Income Units shall have no force and effect. If and when the funds associated with the Low Income Financing are secured, as verified by the City, the provisions of the Regulatory Agreement relating to the Low Income Units shall permanently terminate, have no further force and effect and shall be replaced by the For-Rent Agreement. (c) Earlv Termination ofFor-Rent Agreement. In the event of Early Termination of the For-Rent Agreement (pursuant to Section 5.2.2 of the For-Rent Agreement) as a result of -2. 61800.]80 327345_2 16-94 Apartment Developer's failure to meet the Low Income Financing contingency, the provisions of the Regulatory Agreement relating to the Low Income Units shall become operative and be utilized to fulfill the low-income requirements set forth in the Master Affordable Housing Agreement. 2. Interim For-Rent Option. The Regulatory Agreement is amended to allow the Affordable Units to be rented on an interim basis as follows: (a) Marketing Period. In the event Developer has been unable to sell an Affordable Unit within one hundred twenty (120) days after such Affordable Unit is first marketed to Affordable Buyers, Developer may request approval from the City to rent such Affordable Unit to a qualified Low or Moderate Income household, as the case may be. The Developer should submit documentary evidence to the Housing Manager of the City's Community Development Department, which in the opinion of the Housing Manager, demonstrated a good faith effort by the Developer to market and sell the Affordable Unit, but resulted unsuccessfully based on the existing market conditions and other relevant factors.. (b) Oualification. The Affordable Units shall be rented only to qualified households whose annual income, adjusted for household size, is at or below 60% of Area Median Income (for Low Income Units) or 110% of Area Median Income (for Moderate Income Units) as reasonably verified by the City. Such Affordable Units shall also be subject to any additional qualification, monitoring and reporting requirements imposed by the City. (c) Limited Lease Term. The lease term of any Affordable Unit rented to a qualified household pursuant to this Section shall not exceed one (1) year, but may be extended for periods not exceeding one (1) year each, provided that, prior to the expiration of the then current lease term, the Developer submits to the Housing Manager of the City's Community Development Department documentary evidence, which in the opinion of the Housing Manager, demonstrates a good faith effort by the Developer to continue to market and sell the Affordable Unit or that such effort would be unsuccessful based on the existing market conditions and other relevant factors. (d) Rent-to-Own Arrangements. Developer may enter into a rent-to-own transaction with qualified Low or Moderate Income households with the City's prior written consent and approval of the documentation that will be utilized for such transaction(s). 3. Application ofOualification Criteria. Section 3.16 ofthe Regulatory Agreement is deleted in its entirety and replaced with the following: "3.16 Application of Oualification Criteria. The Housing Manager of the City's Community Development Department may allow one or more qualification criteria set forth in Section 3.15 to not apply to a particular sale of an Affordable Unit if for a period of 120 days Developer has not been able to sell the Affordable Unit to an Affordable Buyer who could meet all of the qualification criteria set forth in Section 3.15." 4. Scope of Amendment. As amended by this Amendment, the Regulatory Agreement remains in full force and effect. -3- 61BOO-180 327345_2 16-95 IN WITNESS WHEREOF the parties hereto have caused this Amendment to be executed as of the day and year first written above. "CITY": CITY OF CHULA VISTA, a municipal corporation of the State of California By: Cheryl Cox, Mayor ATTEST: Susan Bigelow, City Clerk APPROVED AS TO FORM: Ann Moore, City Attorney -4- 16-96 61800-180327345_2 "DEVELOPER": BROOKFIELD SHEA OTAY LLC, a California limited liability company BY: BROOKFIELD OTA Y LLC, a Delaware limited liability company, a Member By: Name: Its: Date: By: Name: Its: Date: BY: SHEA OTA Y 11 LLC, a California limited liability company, a Member BY: SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership, its sole Member By: Name: Its: Date: By: Name: Its: Date: -5- 61800-180327345_2 16-97 EXHIBIT A LEGAL PROPERTY DESCRIPTION All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: Lot I of CHULA VISTA TRACT NO. 01-11 OTA Y RANCH VILLAGE II NEIGHBORHOODS MU-I AND R-19, in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. , filed with the County Recorder of San Diego County. -6- 61800.180 327345_2 16-98 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~ it __J:~ Ann Moore City Attorney Dated: l/"J>O! 0-1 Affordable Housing Agreement Between City of Chula Vista and Brookfield Shea Otay LLC 16-99 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency of the City ofChula Vista City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Altn: City Clerk No fee for recording pursuant to GOVERNMENT CODE Section 27383 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (the "Agreement") is entered into as of_ , 2007, between the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic ("Agency"), the CITY OF CHULA VISTA, a municipal corporation ("City"), and BROOKFIELD SHEA OTAY LLC, a California limited liability company ("Developer"), and/or its successors or assignees. ARTICLE 1 - Recitals 1.1 Authority. Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (HEALTH AND SAFETY CODE Section 33000, et seq.). City is a municipal corporation, organized and existing under the laws of the State of California. Agency and City are authorized to enter into binding agreements for the purpose of protecting public health, safety, and welfare. 1.2 Develooer: Pr01?ertv. Developer is the legal owner of the fee title to the real property located in the City ofChula Vista, which is described in the attached Exhibit A, which is hereby incorporated herein (the "Real Property"). The Real Property is currently unimproved. This agreement is intended to apply to the rental project on this property, of which a Final Map is forthcoming. 1.3 Project. Developer proposes to construct a multifamily housing project with 92 rental units in Otay Ranch Village II (the "Project"). Each dwelling unit in the Project is referred to as a "Unit" in this Agreement. The Project will consist of ninety-two (92) Units affordable to Low Income households at or below sixty percent (60%) of the Area Median Income. 1.4 Master Affordable Housing Agreement - Imolementation of City Council Resolution 2003-492. This Agreement is intended to satisfy, in part, the requirements of City Council Resolution 2003- 492 and the Affordable Housing Agreement previously entered into between Developer and the City and DOC SOO989729vl \ 24036.0030 HSRGB Doc 327324_46/14/07 I 16-100 recorded February 24, 2003, as Document No. 2003-0200562, which requires that, as a condition to issuance of certain building permits to the land covered by the Otay Ranch Village II Sectional Planning Area (SPA) Plan, an "Affordable Housing Regulatory Agreement" be entered into between the City and Developer whereby Developer agrees to provide a specified percentage of the Units as low income housing and moderate income housing ("Master Affordable Housing Agreement"). The parties intend that this Agreement constitute an agreement referred to in City Council Resolution 2003-492 and also constitute an "Affordable Housing Regulatory Agreement" as described in the Master Affordable Housing Agreement and that this Agreement satisfy Master Developer's low income affordable housing obligations thereunder. 1.5 Existing Regulatorv Agreement. The parties have previously entered into that certain Affordable Housing Regulatory Agreement, recorded December 1,2006, as Document No. 2006-0855757, that satisfies Master Developer's moderate and low income affordable housing obligations under the Master Affordable Housing Agreement (as "for- sale" units) with respect to approximately 489 acres of land described as the "Project" in the Master Affordable Housing Agreement (together with any existing or future amendments thereto, "Existing Regulatory Agreement"). The parties have or will execute an amendment to the Existing Regulatory Agreement that allows Developer to fulfill the low income requirements set forth in the Master Affordable Housing Agreement through implementation of this Agreement. In the event this Agreement is terminated pursuant to Section 5.2.2 below, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 1.6 Future Owner; Financing Contingencv. It is anticipated that the Project will be constructed, owned and operated by a developer with expertise in low-income rental housing ("Apartment Developer"). Implementation of this Agreement is contingent upon Apartment Developer's ability to secure various state and local subsidies and tax credits for the Project, as described on Exbibit B attached hereto (collectively, "Low Income Financing"). As more particularly described in Section 5.2.2 below, this Agreement shall automatically terminate in the event Apartment Developer is unable or unwilling to secure the Low Income Financing. In such event, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 1. 7 Standards. The permitted uses of the Real Property, the density of use thereof, the maximum height and size of buildings thereon, and provisions for reservations or dedication of land for public purposes and all other standards of development of the Real Property will be consistent and remain in compliance with the approved Design Review Committee application (DRC 05-44). 1.8 Binding on Successive Owners. Pursuant to California GOVERNMENT CODE Section 27281.5, the parties intend that this Agreement constitute an encumbrance against the Real Property (other than the Unrestricted Units) which, during the Term of this Agreement, is binding on the owners and successive owners of the Real Property (other than the Unrestricted Units) for the benefit of the City. DOC sa0989729vl \ 24036.0030 HSRGB Doc 327324_4 6114/07 2 16-101 NOW THEREFORE, AGENCY, CITY, AND DEVELOPER HEREBY AGREE AS FOLLOWS: ARTICLE 2 - Low Income Housin!!: 2.1 Definitions. For the purposes of this article, the following definitions apply: 2.1.1 "Area Median Income" means the latest median income from time to time determined by the United States Department of Housing and Urban Development (pursuant to Section 8 of the United States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area and as established by regulation of the State of California pursuant to HEALTH AND SAFETY CODE Section 50093. 2.1.2 "City Deed of Trust" means that certain deed of trust to be recorded against the portion or the Real Property comprising the Project that secures the City Note and the HOME Funds Agreement. 2.1.3 "City Note" means that certain promissory note and loan agreement to be executed by in connection with the City's allocation of the HOME Funds. 2.1.4 "HOME Funds Agreement" means that certain regulatory agreement entered into by the parties in connection with the City's allocation of the HOME Funds. 2.1.5 "HOME Funds" means the nine hundred twenty thousand dollars ($920,000) in HOME Funds allocated by the City to the Project. 2.1.6 "Low Income Tenants" means individuals or families with an income which does not exceed sixty (60) percent of the Area Median Income, as adjusted for household size. 2.1. 7 "Low Income Apartment" means any ofthe ninety-two (92) apartment units on the Real Property which shall be continuously occupied only by and affordable to a Low Income Tenant. 2.1.8 "Manager's Unit" means that unit on the Real Property occupied by a resident property manager which may be exempt from occupancy restrictions. 2.1.9 "Affordable Apartment" means anyone of the apartments defined in Section 2.1.7 through 2.1.8; "Affordable Apartments" means all of such apartments collectively. 2.1.1 0 "Rent" means the total of monthly payments for all of the following: (a) use and occupancy of the apartment unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by the lessor which are required of all tenants, other than security deposits, and (c) a reasonable allowance for utilities not included in the above costs, excluding telephone service, which takes into consideration an adequate level of service. 2.1.11 "Housing Manager" means the Housing Manager of the Agency and City. 2.2 Oualification of Tenants. As to the Affordable Apartments, the following will apply: 2.2.1 Low Income Aoartments. Developer shall restrict the occupancy and rental rate of the ninety two (92) Low Income Apartments (other than the Manager's Unit) to Low Income Tenants. Each DOC S00989729vl \ 24036.0030 HSRGB Doc 327324_46114107 3 16-102 three-bedroom Low Income Apartment will be leased to a household of up to six persons, meeting the maximum income levels. 2.3 Monthlv Rent. As to the Affordable Apartments, the following will apply: 2.3.1 Calculation of Maximum Low Income Rent. The monthly rent charged for all the Low Income Apartments shall not exceed one-twelfth of the amount obtained by multiplying 30 percent times 60 percent of the Area Median Income, as adjusted for household size appropriate to the unit as specified in Section 2.3.2. The Maximum Low Income Affordable Rent of a Low Income Apartment shall include use and occupancy of a housing unit and associated land and facilities, less a reasonable utility allowance. 2.3.2 Unit Sizes and AOOfooriate Household Sizes. Calculation of the Low Income Affordable Rent shall be based upon an assumed household size of four (4) persons for each three- (3 -) bedroom unit, notwithstanding the actual size of the household that rents the Affordable Apartment. If Tax Credit requirements differ, the Tax Credit standards shall apply. 2.4 Proof of Qualification. Developer will obtain from each person(s) to whom Developer rents an Affordable Apartment a "Supplemental Rental Application" ("Application") in the form of Exhibit B attached hereto and incorporated herein (or such other form as Agency and City may from time to time adopt and of which Agency and City notify Developer in writing). Developer will be entitled to rely on the Application and the supporting documents thereto in determining the eligibility of such person(s) to rent such Affordable Apartment. Developer will retain the Application and supporting documents for a period of at least three years after the applicant thereof ceases to occupy such Affordable Apartment. Copies of the most recent Applications for Low Income Tenants commencing or continuing occupancy of an Affordable Apartment shall be attached to the semi-annual report to be filed with the Agency and City in compliance with Section 2.5 of this Agreement. An Affordable Apartment occupied by a qualified tenant who at the commencement of the occupancy qualifies as a low income household shall be treated as occupied by a Low Income Tenant until a recertification of such tenant's income in accordance with Section 2.4.1 below demonstrates that such tenant no longer qualifies as a Low Income Tenant in accordance with the standards set forth in this Article 2. 2.4.1 Recertification of Income. Immediately prior to the first anniversary date of the occupancy of an Affordable Apartment by a qualified tenant, and on each anniversary date thereafter, the Developer shall recertify the income of the occupants of each Affordable Apartment by obtaining a completed Supplemental Rental Application based upon the current income of each occupant of the Affordable Apartment. In the event the recertification demonstrates that such household's income exceeds the income at which such household originally qualified, but such household remains qualified as a Moderate Income Tenant, such tenant shall not be required to vacate the unit, but may be charged the lessor of 3 0% of their income or the 80% rent level for the unit size. 2.5 Waiver. Developer may apply in writing to the Housing Manager for a waiver, as to a specifically designated Affordable Apartment. Each such application will be accompanied by written data or other DOC S00989729vl \ 24036.0030 HSRGB Doc 327324_4 61l4/07 4 16-103 evidence relied upon by Developer to show that, for the near future, there will be no reasonable demand for such Affordable Apartments(s). Within 30 days after receipt of any such application, the Housing Manager will, in writing, either grant or disapprove the requested waiver. Such a waiver shall not be permanent in nature. If and when data or other evidence suggest that the environment has changed since the application and granting of the waiver, and a demand for such apartments then exists, the Developer shall rent the next available unit to an income qualified household. 2.6 Records. Audits. Developer will submit to Agency and City semi-annual certified rent rolls, disclosing with respect to each Affordable Apartment (i) the monthly rent rate, (ii) the number of occupants for which the Affordable Apartment is rented, and (iii) the income of such occupant(s). Such submission shall be in the form of Exhibit C attached hereto and incorporated herein (or such other form as Agency and City may from time to time adopt and of which Agency and City notify Developer in writing). If Agency or City reasonably believes that violations of the rent, occupancy and/or income requirements of this Agreement have occurred and that an audit is necessary to verify a submitted rent roll, it will so notify Developer in writing thereof. Within ten days after delivery of said notice, Developer will deliver to Agency and City the names of three certified public accountants doing business in the metropolitan San Diego area. Agency and City will promptly deliver to Developer the Agency's and City's approval of one or more of said names. The audit will be completed by an approved certified public accountant, at Developer's cost, within 60 days after the delivery to Developer of Agency's and City's said approval. The certified public accountant will promptly deliver a copy of the written audit to Agency and City. 2.7 Term. This Agreement shall commence on the date this Agreement is signed by the Developer and City. Unless terminated earlier pursuant to Section 5, the Term of this Agreement shall be for a period of fifty- five (55) years after the Project receives a Certificate of Occupancy for the Affordable Apartments. Upon verification from the City that all obligations have been satisfied, or upon the early termination of this Agreement pursuant to Section, the City shall record a termination of this Agreement in the Office of the County Recorder of San Diego County, California. 2.8 Reports. Developer, at its expense, shall submit, or cause the Property Manager to submit, to the appropriate entities any and all reports required to be submitted pursuant to California Community Redevelopment Law. 2.9 Subordination of Affordabilitv Covenants. In the event that the Agency and City find that an economically feasible method of financing for the construction and operation of the Project, without the subordination of the affordable housing covenants as may be set forth in this Agreement, is not reasonably available, the Agency and City shall make the affordable housing covenants set forth in this Agreement junior and subordinate to the deeds of trust and other documents required in connection with the construction and permanent financing for the Project approved pursuant to the HOME Funds Agreement. Any subordination agreement entered into by the Agency and City shall contain written commitments which the Agency and City find are reasonably designed to protect Agency's and City's investment in the event of default, such as any of the following: (a) a right of Agency and City to cure a default on the loan prior to foreclosure, (b) a right of Agency and City to negotiate with the lender after notice of default from the lender and prior to foreclosure, (c) an agreement that, if (prior to foreclosure of the loan) Agency or City takes title to the property and cures the DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_46/14/07 5 16-104 default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to Agency or City, and (d) a right of Agency and City to acquire the Real Property from the Developer at any time after a material default on the loan. This section may be revised pending receipt of final form of senior loan documents. ARTICLE 3 - Uses of the Real ProDertv 3.1 Condition of the Real ProperlY. a. Developer shall take all necessary precautions to prevent the release into the environment of any Hazardous Materials which may be located in, on or under the Real Property. Such precautions shall include compliance with all Governmental Requirements with respect to Hazardous Materials. In addition, Developer shall install and utilize such equipment and implement and adhere to such procedures as are consistent with commercially reasonable standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials. b. Developer shall indemnify, defend and hold Agency and City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, reasonable attorneys' fees), resulting from, arising out of, or based upon (i) the release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Real Property, no matter when such claim, action, suit or proceeding is first asserted or begun and no matter how the Hazardous Materials came to be released, used, generated, discharged, stored or disposed of on, under, in or about, to or from the Real Property, or by whom or how they are discovered, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Real Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, parallel indemnity after closing, cost or expense arising from or out of any claim, action, suit or proceeding, including injunctive, mandamus, equity or action at law, for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. c. For purposes of this Agreement, "Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, San Diego County, the State of California, regional governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25130 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum; (vi) friable asbestos; (vii) polychlorinated byphenyls; (viii) methyl tertiary butyl ether; (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article II of Title 22 of the California Code of Regulations, Division 4, Chapter 20; (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. 91317); (xi) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 DOC S0C\989729vl \ 24036.0030 HSRGB Doc 327324_4 6114/07 6 16-105 U.S.C. S6901, el seq. (42 U.S.C. S6903); or (xii) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. S9601, elseq. d. For purposes of this Agreement, "Governmental Requirements" means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State, the County of San Diego, the City, or any other political subdivision in which the Property is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over the Agency, the City, the Borrower or the Property. 3.2 Marketing and Selection of Tenants. The three (3) bedroom Low Income Apartments shall be marketed by Developer, or its successor or assignee, to persons who qualify as Low Income Tenants with households of three (3) persons or more. The following are the household sizes appropriate to an Affordable Apartment: Maximum Affordable Marketinl! Tarl!et Marketinl! Tarl!et Three (3) Bedroom Rent Based on Assumed Household Size Four Persons Minimum Household Size Three Persons Maximum Household Size Six Persons Unit Size Developer shall submit for the approval of the Agency and City, which approval shall not unreasonably be withheld, a plan for marketing the rental of the Low Income Apartments. Developer's marketing of units shall be in compliance with federal and state fair housing law. Such marketing plan shall include a plan for publicizing the availability of the Low Income Apartments within the City, such as notices in any City-sponsored newsletter, newspaper advertising in local newspapers and notices in City offices. The marketing plan shall require Developer to obtain from the Agency the names of low- and moderate-income households who have been displaced by the Agency's redevelopment projects, and to notify persons on such list of the availability of units in the Project prior to undertaking other forms of marketing. The marketing plan shall provide that the persons on such list of displaced persons be given not fewer than fifteen (15) days after receipt of such notice to respond by completing application forms for rental of Low Income Apartments, as applicable. All tenants of each Affordable Apartment shall meet the income requirements set forth herein and shall be in conformance with the standards set forth in the approved Management Plan. Selection of residents shall be made randomly within the following levels of priority, rather than on a first-come, first- serve basis: a. First Priority. Households which are displaced from their primary residence as a result of an action of City or Agency, a condominium conversion involving the household's residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which the household's residence was located, and the household resided in such housing as the household's primary place of residence for at least two years prior to such action or event. b. Second Priority. Households which meet one of the following criteria: (i) households which are displaced from their primary residence as a result of an action of City or Agency, a condominium conversion involving the household's residence, expiration of affordable housing covenants applicable to such residence, or closure of a mobile home or trailer park community in which the DOC S00989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 7 16-106 household's residence was located, and the household resided in such housing as the household's primary place of residence for at least one year but less than two years prior to such action or event; (ii) households with at least one member who has resided within the City, as that person's primary place of residence, for at least two years prior to the date of application for such housing; or (iii) households with at least one member who has worked within the City, as that person's principal place of full-time employment, for at least two years prior to the date of application for such housing. c. Third Priority. Other Low Income Households who do not meet the criteria for first priority or second priority above. 3.3 Maintenance of Real Prooertv. Developer agrees for itself and its successors in interest to all or any portion of the Real Property, to maintain the improvements on the Real Property in conformity with applicable provisions of the City Municipal Code, and shall keep the Real Property free from any accumulation of debris or waste materials. During such period, the Developer shall also maintain the landscaping planted on the Real Property in a healthy condition. Developer shall participate in the City's Crime-Free Multi-Housing Program (or similar program which is adopted by the City) which has been adopted to facilitate strong property management, screening of applicants, and maintenance of multifamily rental properties. If at any time Developer fails to maintain the Real Property and such condition is not corrected within five days after written notice from Agency or City with respect to graffiti, debris, waste material, and general maintenance, or thirty days after written notice from Agency or City with respect to landscaping and building improvements, then Agency and City, in addition to whatever remedy it may have at law or at equity, but subject to the rights of the Permanent Lender, shall have the right to enter upon the applicable portion of the Real Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Real Property, and to attach a lien upon the Real Property, or to assess the Real Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by Agency and City and/or costs of such cure, including a fifteen percent (15%) administrative charge, which amount shall be promptly paid by Developer to Agency and City upon demand. 3.4 Prooerty Management. The parties acknowledge that the Agency and City are interested in the long-term management and operation of the Real Property and in the qualifications of any person or entity retained by the Developer for that purpose (the "Property Manager"). Therefore, during the period of the effectiveness of the affordability covenants set forth herein, the Agency and City may from time to time review and evaluate the identity and performance of the Property Manager as it deems appropriate. If the Agency or the City determines that the performance of the Property Manager is materially deficient based upon the standards and requirements set forth in this Section 4.4 and the approved Management Plan (as defined below), the Agency and City shall provide notice to the Developer of such deficiencies, and the Developer shall use its best efforts to correct such deficiencies within a reasonable period of time. Upon the failure of the Property Manager to cure such deficiencies within the time set forth herein, the Agency and City shall have the right to require the Developer to immediately remove and replace the Property Manager with another property manager or property management company who is reasonably acceptable to the Agency and City, who (if required in the reasonable discretion of the Agency and City) is not related to or affiliated with the Developer, and who has not less than five (5) years experience in property management, including experience managing multifamily residential developments of the size, quality and scope of the Real Property. DOC soa989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14J07 8 16-107 In addition, the Developer shall submit for the reasonable approval of the Agency and City a detailed "Management Plan" which sets forth in reasonable detail the duties of the Property Manager, the tenant selection process, a security system and crime prevention program in compliance with the City's Crime-Free Multi-Housing Program (or similar program which is adopted by the City), the procedures for the collection of rent, the procedures for monitoring of occupancy levels, the procedures for eviction of tenants, the rules and regulations of the Real Property and manner of enforcement, a standard lease form, and other matters relevant to the management of the Real Property. The management plan shall require the Property Manager to adhere to a fair lease and grievance procedure and provide a plan for tenant participation in management decisions. The management of the Real Property shall be in compliance with the Management Plan which is approved by the Agency and City, subject, however, to any requirements of the Permanent Lender pursuant to the Permanent Loan Documents. The Management Plan may be revised from time to time upon the reasonable approval of the Agency, the City and the Developer. 3.5 Insurance. Within ten (10) days after the Apartment Developer's acquisition of the Real Property, Developer shall furnish to the Agency and City duplicate originals or appropriate certificates of insurance coverage evidencing that Developer has obtained, or cause to be obtained, insurance coverage with respect to the Real Property and Project in type, amount and from insurers with Best's ratings as are reasonably acceptable to Agency and City (or have been approved by the Permanent Lender), naming the Agency and City and its officers, agents, employees, representatives and their respective successors, as named or additional insureds by appropriate endorsements. Such policy shall include, without limitation, "all risk" property casualty insurance and comprehensive general liability insurance. Without limiting the generality of the foregoing, such policy shall also include coverage to insure Developer's indemnity obligations provided herein, unless Developer can demonstrate to the Agency's and City's reasonable satisfaction that such coverage is not available or is not available at a commercially reasonable cost consistent with the Project Budget. Developer covenants and agrees for itself and its successors and assigns that Developer and such successors and assigns shall keep such liability policy in full force and effect until the date that is fifty-five (55) years from the date of the City's issuance of the final certificate of completion for the Project. In addition to any other remedy which Agency and City may have hereunder for Developer's failure to procure, maintain, and/or pay for the insurance required herein, Agency and City may (but without any obligation to do so, and subject to the rights of the Permanent Lender under the Permanent Loan Documents) at any time or from time to time, after thirty (30) days written notice to Developer, procure such insurance and pay the premiums therefor, in which event Developer shall immediately repay Agency and City all sums so paid by Agency and City together with interest thereon at the rate of ten percent (10%) per annum or the maximum legal rate, whichever is less. 3.6 Proceeds ofInsurance. Should the Project be totally or partially destroyed or rendered wholly or partly uninhabitable by fire or other casualty required to be insured against by Developer, Developer shall promptly proceed to obtain insurance proceeds and take all steps necessary to promptly and diligently commence the repair or replacement of the Project to substantially the same condition as the Project is required to be maintained in pursuant to this Agreement if (i) the Developer agrees in writing within ninety (90) days after payment of the proceeds that such repair or rebuilding is economically feasible and (ii) the Permanent Lender permits such repair or rebuilding, provided that the extent of Developer's obligation to restore the Project shall be limited to the amount of the insurance proceeds actually received by the Developer. If the Developer is unable or is not permitted to repair, replace, or restore the Project, Developer must give DOC soa989729vl \ 24036.0030 HSRGB Doc 327324_46/14/07 9 16-108 notice to Agency and City (in which event Developer will be entitled to all insurance proceeds, subject to any outstanding lien obligations, but Developer shall be required to remove all debris from the Real Property) and Developer may construct such other improvements on the Real Property as are consistent with applicable land use regulations and approved by the Agency and City and the other governmental agency or agencies with jurisdiction. 3.7 Taxes. Assessments. Encumbrances. and Liens. Developer shall pay prior to delinquency all real estate taxes and assessments properly assessed and levied on the Real Property. Nothing herein contained shall be deemed to prohibit Developer from contesting the validity or amounts of any tax, assessment, encumbrance, or lien, or to limit the remedies available to Developer in respect thereto. 3.8 Hold Harmless. Developer agrees to indemnify, protect, defend and hold harmless Agency and City, and their officers, agents, employees, representatives and successors, from and against any and all claims, damages, actions, costs, demands, expenses or liability, including, without limitation, reasonable attorneys' fees and court costs, which may arise from the direct or indirect actions or inactions of the Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developers' behalf which relate to the Real Property or Project. This hold harmless agreement applies, without limitation, to all damages and claims for damages suffered or alleged to have been suffered by reasons of the operations referred to in this Section, regardless of whether or not the Agency or City prepared, supplied or approved plans or specifications, or both, for the Property or Project. This indemnity by Developer and all other indemnities set forth herein shall survive any foreclosure of the Real Property by the City pursuant to the terms of the City Deed of Trust. 3.9 Further Indemnification of Agencv and City. It is understood and agreed that the parties hereto have entered the HOME Funds Agreement as a method of providing necessary assistance to Developer in connection with the construction of low income housing and related improvements on the Real Property pursuant to all applicable laws and that, by contributing public funds to assist in the accomplishment of such construction or by otherwise contributing or assisting with the accomplishment of such construction, the Agency and City assume no responsibility for insuring that the same is adequately undertaken (including, without limitation, the existence and/or remediation of any hazardous or toxic substances on the Real Property); and, as a material consideration to Agency and City for entering into the Loan Agreement (and not by way of limiting the generality of Section 3.8 above), Developer agrees to indemnify, protect, defend and hold harmless Agency and City and all their representatives, officers, employees and their respective successors from and against any and all claims, damages, actions, demands, liabilities, obligations, expenses, losses or costs, including, without limitation, reasonable attorneys' fees and court costs, which may arise or in any manner are connected with the construction of the Project pursuant to the HOME Funds Agreement, excluding, however, from Developer's indemnity any such liability, losses, damages (including foreseeable or unforeseeable consequential damages), penalties, fines, expenses (including out- of-pocket litigation costs and reasonable attorneys' fees) arising out of the sole negligence of Agency, City or their employees, contractors, subcontractors or agents. 3.10 Obligation to Refrain from Discrimination. There shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the enjoyment of DOC SOC\989729vt \ 24036.0030 HSRGB Doc 327324_46/14/07 10 16-109 the Real Property, nor shall Developer itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees of the Real Property or any portion thereof. Developer shall further comply with all applicable requirements of the Americans with Disabilities Act ("ADA"). 3. I I Form of Nondiscrimination and Nonsegregation Clauses. Developer shall refrain from restricting the rental, sale, or lease of any portion of the Real Property, or contracts relating to the Real Property, on the basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person and shall comply with all applicable requirements for the ADA. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself, or any persons claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees in the land herein conveyed and further covenants that all such individuals and entities shall comply with all requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, et seq.). The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions: 'That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased, nor shall the lessee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sub lessees, subtenants, or vendees in the land herein lease and the lease shall be carried out in compliance with all requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, etseq.).'" c. In contracts: "There shall be no discrimination against or segregation of any persons or group of persons on account ofrace, color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the transferee himself, or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sub lessees, or vendees of land and all such activities shall be conducted in compliance with all the requirements of the Americans with Disabilities Act of 1990, as the same may be amended from time to time (42 V.S.C. 912101, etseq.)." ARTICLE 4 - Breach 4. I Breach bv Agencv or Citv. DOC S0C\989729vl \ 24036,0030 HSRGB Doc 327324_4 6114/07 II 16-110 If Agency or City breaches any of its covenants contained in this Agreement, Developer will have available to it all legal and equitable remedies afforded by the laws of the State of California. This section shall not be construed as a waiver of any the City's immunities. 4.2 Breach bv Develooer of Rent Limit Requirements. If, with respect to any Affordable Apartment, Developer breaches this Agreement by charging higher rent than that herein permitted, Developer will, immediately upon Agency's or City's demand, (i) reduce the rent to that permitted herein and (ii) refund to any tenants who theretofore paid such higher rent the amount of the excess, together with interest hereon at the rate of ten (10) percent per annum, computed from the date(s) of payment of the excess by said tenants to the date of said refund. The provisions of this Section constitute a third-party beneficiary contract in favor of such tenants. Further, Agency and City are hereby granted the power (but not the duty) to act as attorney-in-fact of such tenants in enforcing this Section. 4.3 Breach bv Develooer of Leasing Requirements. If, with respect to any Affordable Apartment, Developer breaches this Agreement by leasing to tenants who are not qualified pursuant to Section 2.2, Developer will, immediately upon Agency's or City's written demand and at Developer's sole cost, take all lawful steps to terminate such leasing. 4.4 Breach bv Develooer of Other Requirements. If the Developer breaches any of its covenants contained in this Agreement, the City and the Agency will have available to it all legal and equitable remedies afforded by the laws of the State of California in addition to any remedies provided herein. 4.5 Remedies Not Exclusive. The remedies set forth in Sections 4.2 and 4.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to Agency and City. ARTICLE 5 - General Provisions 5.1 Assignment. The rights and obligations of Developer under this Agreement may be transferred or assigned, provided such transfer or assignment is made as a part of the conveyance of the fee of all or a portion of the Real Property. Any such transfer or assignment will be subject to the provisions of this Agreement. During the term of this Agreement, any such assignee or transferee will observe and perform all of the duties and obligations of Developer contained in this Agreement as such duties and obligations pertain to the portion of said real property so conveyed. 5.2 Amendment or Termination of Agreement. 5.2.1 Bv Mutual Consent. This Agreement may be amended from time to time or terminated by the mutual consent of the parties hereto, but only in the same manner as its adoption. The term "this Agreement" includes any such amendment properly approved and executed. 5.2.2 Earlv Termination Uoon Failure of Financing Contingencv. This Agreement shall automatically terminate in the event Apartment Developer is unable to secure the Low Income Financing DOC S00989729vl \ 24036.0030 HSRGB Doc 327324_4 61I4/07 12 16-111 on or before fu!D, 2008, or if Developer provides written notice to the City (at any time prior to such date) that Apartment Developer is no longer seeking or is unable to secure the Low Income Financing. In such event, Developer shall fulfill the low income requirements set forth in the Master Affordable Housing Agreement in accordance with the Existing Regulatory Agreement. 5.3 Enforcement. Unless amended or terminated as provided in Section 5.2, this Agreement is enforceable by any party to it despite a change in the applicable general or specific plans, zoning, subdivision or building regulations adopted by City which alter or amend the rules, regulations or policies governing permitted uses of the land, density and design. 5.4 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the parties' successors or assignees in interest. 5.5 RelationshiD of Parties. It is understood that the contractual relationship between Agency, City and Developer is such that Developer is an independent contractor and not an agent of Agency or City. 5.6 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands or requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. Agencv/Citv: Redevelopment Agency of the City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: Community Development Director With a COllV to: City ofChula Vista 276 Fourth Avenue Chula Vista, California 91910 Attn: City Attorney DeveloDer: Shea Homes 9990 Mesa Rim Road San Diego, California 92121 Attn: Jim Kilgore DOC S00989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 13 16-112 With a copv to: Brookfield Shea Otay LLC 12865 Pointe Del Mar, Suite 200 Del Mar, California 92014 Attention: Ron Grunow A party may change its address by glvmg notice in writing to the other party. Thereafter, notices, demands and requests shall be addressed and transmitted to the new address. ARTICLE 6 - Conflicts of Law 6.1 Conflict ofCitv and State or Federal Laws. In the event that state or federal laws or regulations enacted after this Agreement has been entered into prevent or preclude compliance with one or more provisions of this Agreement or require changes in plans, maps or permits approved by the City, the parties will: 6.1.1 Notice and Copies: Provide the other party with written notice of such state or federal restriction; provide a copy of such regulation or policy and statement of conflict with the provisions of this Agreement. 6.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. 6.2 Agencv Board and City Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled for consideration by the governing board of the Agency and the City Council. The Agency and City Council, at such meeting, will determine the exact modification or suspension which shall be necessitated by such federal or state law or regulation. Developer, at the meeting, will have the right to offer oral and written testimony. Any modification or suspension will be taken by the affirmative vote of not less than a majority of the authorized voting members of the governing board of the Agency and City Council. 6.3 Cooperation in Securing Permits. The Agency and City shall cooperate with the Developer in the securing of any permits which may be required as a result of such modifications or suspensions. ARTICLE 7 - Miscellaneous Provisions 7.1 Rules of Construction. The singular includes the plural and the neuter gender includes the masculine and the feminine. 7.2 Severability. The parties hereto agree that the provisions are severable. If any provision of this Agreement is held invalid, the remainder of this Agreement will be effective and will remain in full force and effect, unless amended or modified by mutual consent of the parties. DOC soa989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 14 16-113 7.3 Entire Agreement. Waivers and Amendments. Except for the Regulatory Agreement, this Agreement, together with any other written document referred to or contemplated herein, embody the entire agreement and understanding between the parties relating to the Low Income Apartments. Neither this Agreement nor any provision hereof may be amended, modified, waived, or discharged, except by an instrument in writing executed by the party against which enforcement or such amendment, waiver, or discharge is sought. 7.4 Caoacities of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 7.5 Governing LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the Federal or State courts located in San Diego County, State of California and, if applicable, the City ofChula Vista or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [NEXT PAGE IS SIGNATURE PAGE] DOC SOC\989729vl \ 24036.0030 HSRGB Doc 327324_4 6/14/07 15 16-114 IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of the day and year first written ahove. "AGENCY" REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic By: Its: Chair ATTEST: Agency Secretary nCITY" CITY OF CHULA VISTA, a municipal corporation of the State of California By: Its: Mayor ATTEST: Susan Bigelow, City Clerk APPROVED AS TO FORM: City and Agency Attorney DOC SOC\989729vl \ 24036.0030 S-I 16-115 "DEVELOPER" BROOKFIELD SHEA OTAY LLC, a California limited liability company BY: BROOKFIELD OTAY LLC, a Delaware limited liability company, a Member By: Name: Its: Date: By: Name: Its: Date: BY: SHEA OTAY 11 LLC, a California limited liability company, a Member BY: SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership, its sole Member By: Name: Its Authorized Agent: Date: By: Name: Its Authorized Agent: Date: DOC S0C\989729vl \ 24036.0030 S-2 16-116 STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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 hislher/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared , personally known to me (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, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) DOC S0C\989729vl \ 24036.0030 16-117 STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared . personally known to me (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 hislherltheir authorized capacity(ies), and that by hislher/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) )ss. COUNTY OF ) On , before me, (here insert name and title of the officer) personally appeared . personally known to me (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 hislher/their authorized capacity(ies), and that by hislher/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) DOC S00989729vl \ 24036.0030 16-118 EXlllBIT "A" Legal Description of Project All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: Lot I of CHULA VISTA TRACT NO. 01-11 OTAY RANCH VILLAGE II NEIGHBORHOODS MU-I AND R-19, in the City ofChula Vista, County of San Diego, State of California, according to Map thereof No. , filed with the County Recorder of San Diego County. DOC SOC\989729vl \ 24036.0030 16-119 DOC SOC\989729vl \ 24036.0030 EXHIBIT "B" Low Income Financing Requirements [To be attached] 16-120 CITY COUNCIL AGENDA STATEMENT 8/7/07,Itern 17" SUBMITTED BY: RESOLUTION DIRECTING THE STAFF TO UNDERTAKE A PAVEMENT REHABILITATION PROJECT ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET AND TRANSFER $27,560 FROM THE TRANSPORTATION SALES TAX APPROPRIATION OF CAPITAL IMPROVEMENT PROJECT STL335, PAVEMENT REHABILITATION FY 2007-08 TO CAPITAL IMPROVEMENT PROJECT STL329, PAVEMENT REHABILITATION ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET. -.-- ASSISTANT CITY MANAGER/CITY ENGINEER S / DIRECTOR OF GENERAL SERVICES ;4.J+ ;j/ DIRECTOR OF PUBL~C :\O)S OPERATIONS CITY MANAGER ~~ 4/5THS VOTE: YES ~ NO o ITEM TITLE: REVIEWED BY: BACKGROUND The City of Chula Vista has developed a comprehensive pavement management system that will guide the City on its decisions in the future as to when and what pavement management treatment streets will receive. This system analyzes the entire City's pavement inventory and, based upon the physical condition of the streets, the pavement condition index and the funding available, lists will be developed that will form the basis for the contracting of future pavement rehabilitation projects. In 2005, the City received inquiries from residents of Alpine-Minot Street between E and F Streets. The residents indicated that they believed that their street should be resurfaced and that improvements to the sidewalks should be made. City staff undertook site meetings and inspections as well as met with residents over the past two years. In addition, the City made significant repairs to sidewalk panels on the street and resurfaced the street through a combination of Asphalt Rubber Aggregate Membrane (ARAM) and a sand seal. Residents have re-contacted the City indicating that additional pavement treatments are needed. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed project for compliance with the Californi~ Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class I Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the proposed project consists of minor alterations to an existing public facility involving no expansion of the facility's current use. Thus, no further environmental review is necessary. 17-1 8/7/07,Itern~ Page 2 of 3 RECOMMENDATION Council not approve the resolution and that future pavement treatments on the street be undertaken within the context of the City's comprehensive pavement management program. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City has received inquiries with respect to the pavement surface of Alpine-Minot Street between E and F Streets. The City inspected the street as a result of these inquiries and has undertaken two surface treatments on the street in the past year. The first treatment involved use of the ARAM product on the portions of the street between E Street and the circle and between F Street and the circle. The circle portion of the street received a sand seal application. Both of these treatments served their purposes of providing a seal treatment to the street surface. In both efforts, areas of greater degradation were "dug-out" as is typical of sealing projects. From an engineering perspective, the treatments utilized on this street have been effective and served the purposes for which they were intended. While the discussions and actions discussed above were occurring, the City has been engaged in developing a comprehensive pavement management system. The goal of such a system is to put in place an objective, street condition driven methodology of developing a condition assessment of all City streets. Then, based on those conditions and available funding, staff would develop the most cost efficient pavement management strategy to preserve and improve the City's streets. The development of this system was completed earlier this year and was presented to the City Council in a Workshop meeting on April 5,2007. At this workshop meeting the City Council approved the methodology recommended by staff to deliver future pavement rehabilitation programs as part of this comprehensive system. Such a system, while analyzing each and every street segment in the City, can only be effectively managed if streets and street segments are allowed to fall where they do based on the rating criteria contained within the system. That criteria takes into account citizen inquiries, traffic volumes, truck traffic loads and, most importantly, visual inspection of the street. After all of these criteria are considered, a Pavement Condition Index (PCl) is assigned. This is a value between 0 and 100 with 100 being the highest. The goal of the system as staff presented it and, as Council approved, was to fmd ways to get the City's overall PCI average as high as possible within current funding levels and to investigate additional funding sources that would enable the City to maintain or even increase its average PCI over the long term. Since the City is attempting to implement this system comprehensively, in order to receive the highest overall PCI possible given funding levels, a variety of treatments would be applied to streets with varying conditions. The treatments discussed above on Alpine-Minot were treatments that would be consistent for a street in the condition Alpine-Minot was in (i.e. minor cracking, utility trenching and minor oxidation). Therefore, it is staff s recommendation that this portion of Alpine-Minot continue to be evaluated as part of the City's comprehensive pavement management system. The estimated costs to undertake a Type II slurry on the street is $27,560. There are no dig-outs required as those were completed with the previously completed ARAM and sand seal treatments. The cost estimate is included as Attachment I. Photographs of the current condition of the street from a number of locations are included as a packet labeled Attachment 2. 17-2 8/7/07, ItemJL Page 3 of 3 There have been a number of memorandums and Council Information Items provided with respect to this issue over the past two years. The most recent Council Information Item, dated January 19, 2007, attempted to summarize the history of the matter. That document and its attachments are attached for further information on this matter and labeled as Attachment 3. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section l8704.2(a)(1) is not applicable to this decision. FISCAL IMPACT Neither the approval or the rejection of this resolution will have any impact on the General Fund. The cost of the project would be borne by the Transportation Sales Tax fund which funds the majority of the City's pavement rehabilitation activities. A transfer of $27,560 from existing Capital Improvement Project STL335, Pavement Rehabilitation FY 2007-08 to Capital Improvement Project STL329, Pavement Rehabilitation on Alpine-Minot Street between E Street and F Street, will be necessary. This transfer will reduce by $27,560 the amount the City has for its overall Pavement Rehabilitation Program. ATTACHMENTS I. Project Cost Estimate 2. Photos of Project Area 3. January 19,2007 Council Information Item and Attaclunents Prepared by: Jack Griffin, Director of General Services, General Services Department Citywide Home:\General Services\GS Adrninistration\Council Agenda\Alpine Minot Funding Agenda Statement 7.24.07.doc 17-3 A+!-achIYlUl! I CITY OF CHULA VISTA PUBLIC WORKS DEPARTMENT \ ENGINEERING DIVISION COST ESTIMATE PROJECT NUMBER: PROJECT TITLE: ALPINE-MINOT (CIRCLE) DATE: PREPARED BY: CHECKED BY: STL -340 JULY 24, 2007 MONEDA No. DESCRIPTION QUANTITY UNIT UNIT i AMOUNT PRICE ~. 1 TYPE II SLURRY 85000 SF $0.22 $18,700.00 2 3 SOIL TESTING I LUMP $1,000.00 $1,000.00 . TRAFFIC CONTROL I LUMP $1,000.00 $1,000.00 5 STRIPING I LUMP $500.00 $500.00 6 7 8 9 10 11 12 13 ,. 15 16 17 18 19 20 . 21 22 23 2. % SUBTOT AL: $ 21,200. % $ 21,200.00 . $ 2,120.00 SUBTOTAL: rr-~:}3:E<L9]] $ 21,200.00' $ 2,120.00 iF"'_%""''''m,"""""",~'4= SUBTOTAL: U__~440~lLqJ $ 21,200.00 $ 2,120.00 I TOTAL: $ 27,560.00 I CONTINGENCIES STAFF COSTS (CONSTRUCTION INSPECTION) STAFF COSTS (DESIGN) 10.0 NOTES: 08/0112007 17-4 Alpine-Minot CIRCLE SLURRY ~ ...... I (11 Attachment 2 Alpine-Minot Street Photographs July 25, 2007 Alpine Looking North Alpine Close-Up at 268 Alpine-Minot Street Photographs July 25, 2007 ~ -.J I Cl Alpine Looking Southwest Alpine-Minot North to E Street ~ ...... I ...... Alpine- Minot Street Photographs July 25, 2007 Minot Looking South Alpine- Minot South to F Street ATTACHMENT :.3 COUNCIL INFORMATION ITEM January 19,2007 TO: The Honorable Mayor and City coun~ Jim Thomson, Interim City Manager .;1,.... . . d Dana M. Smith, Assistant City Manage~ Jack GriffIn, Director of General Service$ VIA: FROM: SUBJECT: Council Referral #295 - Alpine Minot Street Work Please find attached a memorandum from staff providing a detailed history of the above referenced matter along with a number of supporting documents. Staffs recommendation is to not conduct any further pavement treatments on Alpine Minot and follow the recommendations forthcoming from the new pavement management system. This issue has consumed an inordinate amount of staff time and resources and is illustrative of the larger problem of pavement management and resource limitations. The City's pavement (mostly streets) is its single largest capita! asset of all the City's infrastructure facilities. As Councilrnembers are aware, staff and council offices receive many requests for road repair work and other public works services - which are routinely forwarded to the appropriate department. Staff has struggled over the past years to maintain our streets and roads even as need exceeds resources. Chula Vista's public works staff is appropriately trying to rehabilitate and preserve the most highly traveled roads first. Staff also makes good faith attempts to respond to individual citizen requests, especially when health and safety issues are identified. However, individual requests often test staff who try to make decisions based on need and the fair distribution of scarce resources. This issue is especially true of pavement rehabilitation - because everyone drives on the roads and views service needs from their own particular perspective. In this instance, the general condition of the Alpine Minot road is considered to be good and it received improved conditioning and cosmetic benefit from the sand seal coat applied in December. The sequence of events relating to Alpine Minot has been confusing and frustrating for the citizens, our Councilrnembers, and staff. We appreciate how citizens must feel trying to navigate the government bureacracy to "simply" have a road repaved. As you will see in the attached description of work performed, however, road construction work is substantially more complex than most people realize. The frustration and effort associated with the request by residents of Alpine Minot for treatment of their street provides a good example as to why the City needs to complete and implement its comprehensive pavement management system that will provide to the public, the Council, and 17-8 Council Referral #295 - Alpine Minot Street Work. Page 2 staff clear criteria to allow a ranking for road rehabilitation proj ects. For many years, the lack of a data driven management system has hindered the City's programming of its limited funds for street repair and rehabilitation. The effort to bring that new system to Council is nearing completion. Every street in the City has been inspected, analyzed and rated. Staff is very close to being able to present the system to Council. With the completion of the data gathering and rating process, staff is also developing a number of funding options for Council to consider. The importance of this system cannot be overstated. Properly implemented, it will provide an objective and engineering focused methodology to plan, in a multi-year fashion, the City's pavement management activities. ? 1 T-9 MEMORANDUM January 19, 2007 TO: Jim Thomson, Interim City Manager J Dana Smith, Assistant City Manager~ Jack Griffin, Director of General ServicesjIt VIA: FROM: SUBJECT: Council Referral #295 - Alpine Minot Street Work Please find below a summary of the events related to this project. For ease of understanding, we have broken it into pre-contract and post-contract phases: PRE-CONTRACT PHASE · January 12,2006 - Staff provided a Council Information Item (copy attached) which indicates that the entrance portions of the street will be included in the next Asphalt Rubber Aggregate Membrane (ARAM) project. With respect to the circle part of the street, staff stated that it was in good condition and that the street would be analyzed in conjunction with the rest of the City's streets in the new pavement management system. · February 14, 2006 - General Services staff notifies the City Manager's office (memo attached) that it was "staffs intent to bring forward the next group of pavement rehabilitation projects, including a seal coat contract, in approximately six to eight months". This timeframe coincided with the estimates at that time as to when the City's pavement management system would be completed. The City Manager forwarded the memo to "Steve/John", presumably Mayor Padilla and Councilmember McCann with a handwritten note that said, "Alpine will be seal coated within 6 - 8 months". · Spring of 2006 (date uncertain), a meeting was held and attended by Councilmember McCann, Councilmember Chavez, Zaneta Encarnacion, Dave Rowlands, Dave Byers, myself, Mary Bixby (resident) and Gary Stenson (resident). Mrs. Bixby was quite clear at the meeting that she did not wish to address nor hear from staff and was only interested in what the Councilmembers had to say. Despite this, staff was able to indicate with accuracy the timeframe of the ARAM work and the sidewalk work that was planned. We were clear that we were not as certain on any other work as we were working toward completing the pavement management system and we hoped to have that completed in the late summer/early fall. Mrs. Bixby repeatedly said that the work (she meant the actual slurry seal) would be done by summer and I personally attempted to clarify that 17-10 Council Referral #295 - Alpine Minot Street Work Page 2 we were hoping to generate the next list of projects in the late summer/early fall timeframe. · Subsequent to this meeting, there was a meeting on a Saturday on the street with a number of residents. Public Works Operations Director Dave Byers attended this meeting. · In May of2006, the entrance portions of the street were resurfaced with the ARAM product. · During the course of the summer we continued to work on the pavement management system. · On August 3,2006 General Services was directed by the City Manager's office to move forward on an individual contract for a slurry seal project on Alpine-Minot. · Staff infol1jlled the City Manager's office that it was likely that we will pay a significantly higher amount to do this single street as opposed to including it in a much larger list of streets. · On August 15, 2006, General Services informed the City Manager's Office (memo attached) that prices had been solicited from qualified contractors and the low bid was in the amount of $83,050. Staff estimated the cost of the project at $46,700. Staff found that the price for dig-outs made up 96% of the difference and this was directly attributable to the fact that we were doing only one street. Due to the price exceeding $50,000, under the City Charter, the project would need to be formally bid and staff sought guidance as to whether to undertake that bidding process. . On August 30, 2006, staff provided a detailed list of options to the City Manager's Office (memo attached) for resurfacing the street. We were tasked with developing an option that could be done quickly and at a lower cost than the bids received on August 14,2006. Each option was analyzed. Staff provided a recommendation, based purely from an engineering perspective, that no work be carried out on the street at this time. If it was determined that work should progress, a sand seal coat should be undertaken. It was expected that this sort of work could be completed under $25,000 and could be completed in the fall. . September 7,2006 - Staff was directed to proceed with the sand seal project. POST-CONTRACT PHASE · September 15,2006 - Staff advertised the contract to perform the sand seal of the Alpine - Minot Circle (This contract did not include the portions from E Street to the circle and from F Street to the circle as these segments were resurfaced as part of the citywide ARAM rubberized treatment program in the spring of2006). . September 22, 2006 - Bids were opened, Ramona Grading and Paving was the apparent low bidder . Late September, 2006 - Over the course of several days, Public Works Operations crews performed digout and patching operations in advance of the contractor's work. . October 10, 2006 - The pre-construction meeting was held. · October 31, 2006 - City executed the contract for the sand seal. 17-11 Council Referral #295 - Alpine Minot Street Work Page 3 · November 6, 2006 - Contractor performs work that is unfortunately not in compliance with the specifications called out in the bid documents. · November 8, 2006 - Contractor does clean-up and sweeps project area. City informs contractor that the work was not in compliance with the project requirements. · November 9, 2006 - The oil supplier confirmed that a faster setting "SS-ih" asphalt emulsion was used instead of a heavier and slower-setting asphalt emulsion that is typically used in sand seal projects. The faster setting emulsion "broke" too soon and the sand that was placed on it did not "stick" as the City desired. City faxed and mailed a letter of rejection to the contractor. · December II, 2006 - New material submittals are made by the contractor and approved by the City. Contractor directed to attempt the work on December IS, 2006 which looked like a good weather window. · December 12, 2006 - Contractor notifies the City that a required piece of equipment will not be available by December 15th. · December 13, 2006 - City discusses the matter with contractor and targets December 20, 2006 for the work. · December IS, 2006 - Contractor informs the City that its subcontractor is withdrawing from the project citing past bad experiences on similar work. · December 21, 2006 - The City sends a letter to the contractor stating that the work would be rescheduled for a later date when weather conditions are more favorable and instructs the contractor to restore all pavement markings. · January 2, 2007 - City requests confirmation of the contractors receipt of the December 21, 2006 letter. This brings us to the present as it relates to the contract. Staff from the General Services Department and Public Works Operations Department have discussed the situation and our engineering recommendations with respect to moving forward from this point are below. Although the contractor did not meet the precise requirements of the contract specifications, the work completed will perform as intended. Furthermore, the City will withold payment for the full value of the contract due to this non-compliance. Having the contractor go back and redo the work now would actually have negative impacts on the street by placing another oil-based seal on the new oil-based seal. Furthermore, having the contractor wait several months (until spring or early summer) and performing another seal will provide no engineering benefits to the street and will not materially alter the appearance of the street surface. For these reasons, staff recommends terminating the contract at this point in time. During the course of these events, the effort to complete the physical evaluation and rating of every street in the City was completed. With respect to the circle portion of Alpine-Minot between E Street and F Street, the street rating was 80. The overall average rating of streets in the City is 79 and the overall average for northwest Chula Vista is 76. Given the rating of this particular street, it is unlikely that, based on funding levels for pavement rehabilitation in recent years, that this street would have been a candidate for any resurfacing or rehabilitative work for several years. The ratings are based on a 100 point scale and streets are considered to be in good condition with ratings of over 70. It should not be construed that only streets with rankings 17-12 Council Referral #295 - Alpine Minot Street Work Page 4 below 70 should receive attention. In point offact, streets in the 70s are candidates for pavement rehabilitation strategies to avoid having them fall into lower categories that are far more expensive to rehabilitate. Lastly, our recommendation with respect to future pavement treatments would be to update the pavement management system with the work that was undertaken and analyze any future pavement recommendations within the context of the citywide pavement management system. cc: Dana Smith, Assistant City Manager Dave Byers, Director of Public Works Operations Scott Tulloch, Director of Engineering Matt Little, Deputy Director of General Services 17-13 COUNCIL INFORMATIONAL ITEM January 12, 2006 TO: The Honorable Mayor and City Council VIA: Dave Ro;""'lands, City Manager f ~ V f FROM: Alex Al-Agha, Director of Engineering Jack Griffin, Director of General Services SUBJECT: Alpine - Minot Street At the Nov=ber 1, 2005 City Council meeting, Mayor Padilla requested a report within sixty days . with respect to utility undergrounding and street conditions on Alpine - Minot Street, including possible options for moving forward on improvement projects for the street. Further, the Mayor indicated that in prioritizing projects, staff should take into consideration those efforts made by neighbors to take the initiative on their projects. Parts ofthis referral were responded to in separate components, as described below, resulting in some confusion regarding whether this referral had already been completed. This report is intended to provide a more direct response to the Council referral. Utility Undererounding On Nov=ber 22, 2005 the Engineering Department brought forward a report to Council regarding the history, progress on proj ects given the last priority list and potential next steps for the City's Utility Undergrounding Program. That report indicated the following: The most significant upcoming undergrounding project involves the Bayfront and is anticipated to begin this year. Other priority undergrounding projects as currently scheduled are summarized below. Fourth Avenue from L Street to Oran e Avenue L Street from Monserate Avenue to Nacion Avenue includes Nolan Way L Street from Broadwa to Third Avenue J Street from Broadwa to Hillto Drive J Street from Hillto Drive to Lori Lane Total Estimated Cost (2005 Dollars) 2013 2014 2015 $2,009,000 $2,038,259 $1,553,320 $10,221,579 17-14 This list was created according to Council approved criteria which includes such things as traffic volume, visibility (entrance to the City), aesthetic benefits, relationship to other undergrounding efforts, other associated construction scheduled, and property owner funding. It is also impacted by the requirements related to Rule 20A of the Public Utilities ~ommission, as well as being dependent on allocation of funding by SDG&E and the design and construction schedules of SDG&E. The November 22nd report indicated that it does not appear that Alpine-Minot Streets would have a high enough ranking based on the City's existing criteria and the Rule 20A regulations to qualify for utility undergrounding. However, the report also. reco=ended that, given this neighborhood request, continuing competing priorities and the fact that the proj ect priority list has not been updated since 1998, staff return to Council in 2006 so that Council could have an opportunity to: 1. Consider the current big picture regarding rem .i"i" g overhead utilities; 2. Discuss funding options; 3. Revisit rating criteria in consideration of current council priorities; and 4. Create an updated citywide priority list for utility undergrounding proj ects. It is anticipated that this topic will be scheduled for a Council Workshop at the end of March 2006. Street Condition With respect to existing street conditions, the following actions have occurred. On November 22, 2005, the City Council awarded a contract for a seal coat treatment to be utilized on various City streets. This seal coat, Asphalt Rubber Aggregate Membrane (ARAM), will be undertaken on the entrance portions of Alpine - Minot Street from F Street to the circle and from E Street to the circle. Public Works staff has already performed the necessary dig-out and patching efforts on the entrance portions. A pre-construction meeting will occur next week with work co=encing on the project within two weeks of the meeting. The schedule and plan for the order iD. which the various streets will receive the treatment will be provided at the pre-construction meeting or shortly thereafter. There are a total of 21 streets or street segments that will be part of the ARAM proj ect. Based on site assessments of the condition of the pavement on the circle portion of the street, staff did not reco=end including that portion as the pavement is in fairly good condition. Alpine- Minot, like all City streets will be reviewed as part of the inventory and ranking phases of the new pavement manag=ent program, the contract for which Council approved on January 10, 2006. Once the required baseline data is collected and processed through the management syst=, the final analyses and reco=endations for future pav=ent rehabilitation proj ects will be presented to Counci1.Those projects, as they have in the past, will likely range from slurry seal work, additional ARAM, assuming the City is happy with the result of the impending project, and full pav=ent overlay work. Visual inspection indicates that Alpine - Minot is in fairly good condition, we would not expect it to require full pavement overlay work in the near to medium future. Attached to this report are cost estimates for both a slurry seal treatment as well as an ARAM treatment. Those estimates are based on current unit prices. 1/2:1 b In addition to the ARAM treatment on the entrances, staff will be recOlrmlending including some portions of the sidewalk in need of repair on Alpine ~ Minot in the upcoming annual sidewalk rehabilitation proj ecL We hope this memorandum is helpful. Please do not hesitate to contact us if further information is required. cc: Dave Byers, Director of Public Works Operations Alex Al-Agha, Director of Engineering Jack Griffin, Director of General Services Leah Browder, Assistant Director of Engineering Matt Little, Deputy Director of General Services 17s-16 CITY OF CHULA VISTA PUBLIC WORKS OEPARTMENT , ENGINEERING DIVISION COST ESTIMAT~ PROJECT NUMBER: PROJECT TITLE: ALPINE-MINOT (CIRCLE) DA TE: PREPARED BY: CHECKED BY: STL-310 SEPTEMBER 15, 2005 MONEDA INo.l ! I I DeSCRIPTION I QUANTITY UNIT I UNIT AMOUNT , i , PRice I , ~ , TYPE II SLURRY 85000 SF $0.25 $21,25000 i , ! 2 ASPHAL T CONCRETE R5R (DIG-OUTS) 500 TONS $75.00 $37,500.00 i , I 3 SOIL TESTING I LUMP $5,000.00 $2,000.00 ! , . I i 4 I 5 I 6 I 7 , 8 . i I 9 ! 10 i i 11 ! 12 ! 13 . ! 14 I 15 ! 16 " ! 17 I 18 I I 19 I 20 I 21 i 22 I 23 I r 24 % SUB TOTAL: $ 60,750.00 CONTINGENCIES 10.01 $ 60.75000 I $ SUBTOTAL: 1$ $ 60,750.00 : $ SUBTOTAL: 1$ $ 60,750.00 i $ TOTAL: $ 6,075.00 66,825.00 I 6,075.00 72,900.00 I 6,07500 78,975.00 I STAFF COSTS (CONSTRUCTION INSPECTION) % 100! % STAFF COSTS (DESIGN) 10.01 NOTES: 09/20/2005 AIPine-Mint;tiR~L1 SLURRY CITY OF CHULA VISTA PUBLIC WORKS DEPARTMENT \ ENGINEERING DIVISION COST ESTIMATE' PRO..!ECT NUMBER: PROJECT TITLE: ALPINE-MINOT (CIRCLE) DATE: PREPARED BY: CHECKED BY: STL-310 SEPTEMBER 15, 2005 MONEOA I No. i DeSCRIPTION QUANTITY I UNIT UNIT I AMOUNT I I ! PRice I 11ARAM AGGREGATE MEMBRANE INTERLAYER 85000 SF $0.55 $46,750 00 21ASPHAL T CONCRETE R8.R (DIG-OUTS) 500 TONS $ 75. 00 $37,500.00 . 3 SOIL TESTING I LUMP $5,000.00 $5,000.00 4 5 5 7 5 . . 10 11 ! 12 . . 13 '4 15 15 17 18 - 1. I 20 21 22 1 . I 23 24 I % SUBTOTAL: $ 89250.00 % I i $ 89.250.00 I $ ISUBTOTAl: 1$ I $ 89,25000 I $ SUBTOTAL: I $ i $ 89.25000 ! $ I TOTAL: $ 8,925.00 98,175.00 I 8.925.00 107,.100.00 I 8.525.00 116,025.00 I CONTINGENCIES 10.0: % 10.0' STAFF COSTS (CONSTRUCTION INspeCTION) STAFF COSTS (Des I GN) 10.0' NOTES: 09/20/2005 AIPil1e.Minlt1iRa~ARAM III' ellY OF (HULA VISTA General Services Department Memorandum DATE: February 14, 2006 TO: Dave Rowlands, City Manager FROM: Jack Griffin, Director (j~_ SUBJECT: Schedule For Next Seal Coat Contract Per your request, please be advised that it is staff's intent to bring forward the next group of pavement rehabilitation projects, including a seal coat contract, in approximately six to eight months', It is our understanding that it will be early fall of this year when the new pavement management system will be completed and operational and at that point street priority lists will be created, Please let me know if you require any additional information Cc: Matt Little, Deputy Director of General Services Leah Browder, Interim Director of Engineering "2-//~(()t: 5' {-< ~~ ( J6t;~ ff~,t'-t f..,,), II P< ~~:;.;"..-- C <I7'--(-?c{ tv - f u.... d '" ,-(Z...~, '-/4'-12 ~ ~ 17-19 J:\G~l'erJ: .S(:rviC'~.<:\FI11-rn5\8&PC_(1(13 (Mern')n:~ldilm)_df;C ~\I{t.- -If General Services Department Memorandum em OF CHUlA VISTA DATE: August 4, 2006 TO: Dana Smith, Assistant City Manager FROM: Jack Griffin, Director of General Services ~ ~ . SUBJECT: Alpine - Minot ResurfacinglStaffDelivery of Projects In accordance with your email dated August 3, 2006, the General Services Department has established a new capital improvement project, Alpine - Minot Resurfacing Between E and F Streets (STL-329). The following is our anticipated schedule for the project: August 9, 2006 - Advertise Project August 24, 2006 - Receive Bids September 19, 2006 - Recommend Award of Contract by Council (this is the first available Council date) October 2006 - Construction Start - Actual Date is dependent on the posting of necessary bonds and insurance by the contractor. Construction duration should be no more than a few days at the most. I would also note that we are concerned that if we simply bid the job with the REAS slurry seal, which has been our standard slurry seal treatment, that we may not get any bids as there are only a few contractors who do that work and the quantity of material may not be worth it for them. Weare therefore going to bid a less specialized slurry as the base bid with an additive alternative for the preferred REAS slurry seal. Please let me know if you require any additional information. Cc: Dave Byers, Director of Public Works Operations Leah Browder, Acting Director of Engineering Matt Little, Deputy Director of General Services JeffMoneda, Sr. Civil Engineer 17-20 C:\DQcuments llllrl Settil'gs\J<lckGr\Desk~{1p\alpine rninot test menm.doc ~!f? ---r- General Services Department Memorandum 01Y Of CHULA VISIA DATE: August 15, 2006 TO: Dana Smith, Assistant City Manager FROM: Jack Griffin, Director of General Services SUBJECT: Alpine - Minot Resurfacing - Update Following up on my memo of August 4,2006, please be advised of the following developments. General Services solicited bids from four contractors for this project on August 9,2006. We required informal bid proposals be submitted by August 14, 2006. The bids included the following line items: Type I REAS Slurry R&R of AC Pavement (Dig-Outs) Traffic Control Stop Legend (thermoplastic) Limit Line (thermoplastic) Dip Legend (thermoplastic) Type II REAS Slurry Additive Alternate. As my memo of August 4th indicated, oUr typical slurry treatment is the Type II REAS slurry. We 'were concerned given the small quantity of this job that we may not get bids for only the Type II as it is more specialized. We received one bid package back from the four solicited contractors. The amount of the bid with the preferred Type II REAS slurry was $83,050. Use of the Type I REAS Slurry would lower the costs by approximately $8,000. Our estimated cost of the job was $46,700. All of our estimated costs were close to the bidded items with the exception of the Dig-Outs. The difference in our estimate and the actual bids on that item was $35,100, which makes up over 96% of the difference. Our estimate was based on costs we had received for similar work in the past and we believe the low quantity of material in combination with the quickly rising price of asphalt is the reason for this discrepancy. We did not receive bids from the other three contractors. 17-21 C\Documents and Settings\JackGr\Desktop\alpine minot update 3 I5.doc Since the costs exceed the $50,000 limit on informal vs. formal bids, in order to move forward we would need to prepare a formalized bid package. This cost of $83,050 does not include staff time, which now will escalate due to the need to proceed with a formal bid package. Please advise as to whether you want us to move forward with a formal bid process. It is unclear whether we will be able to make the September 19, 2006 City Council meeting for a contract award at this point but will do our best to do so. Cc: . Dave Byers, Director of Public Works Operations Leah Browder, Acting Director of Engineering Matt Little, Deputy Director of General Services JeffMoneda, Sr. Civil Engineer 17-22 C:\Documems and SettingsIJackGr\Desktop\aJpine minf)t update 3 15.cQC CITY OF CHULA VlsrA MEMORANDUM August 15,2006 File: STL-329 TO: Jack Griffin, Director of General Services FROM: JeffMoneda, Senior Civil Engineer, Project Design ~ . SUBJECT: INFORMAL BID UPDATE, ALPINE-MINOT CIRCLE PAVEMENT REHABILITATION (STL-329) On August 9, 2006, the City of Chula Vista solicited bids from four contractors for the Alpine- Minot Circle Pavement Rehabilitation project (STL-329). Work for this project includes the following: Asphalt Concrete removal and replacement, placement of Type II REAS Slurry Seal, and the placement of thermoplastic pavement markings. We received only one bid package on the due date of August 14, 2006. The following are the bid results as compared to the Engineer's Estimated Costs for the project. Item Quantitv Unit Price Bid Amount En"ineer's Estimated Cost Tvne II REAS Slurrv 80,000 sf $0.35 $28,000.00 $24,000.00 R & R of AC Pavement 130 tons $400.00 $52,000.00 $16,900.00 Traffic Control I Lume Sum $1,000.00 $1,000.00 $5,000.00 Stop Legend 2 each $750.00 $1,500.00 $300.00 (Thermo elastic) Limit Line 40 If $10.00 $400.00 $400.00 (Thermoe!ast!c) Dip Legend . (Thermonla.tic) 2 each $75.00 $150.00 $100.00 Totals . . $83,050.00 $46,700.00 Per the requirements of the City Charter, projects greater than $50,000 in contract cost must be advertised through the formal bidding process. City staff is currently working on the formal contract and will readvertise the project by August 18, 2006. M:\General Services\Design\STI329\Informal Contract Memo Aug 2006.jcm.doc 17-23 ~\lf?. --- - General Services Department Memorandum CITY OF CHUIA VISlA DATE: August 30, 2006 TO: Dana Smith, Assistant City Manager FROM: Jack Griffin, Director of General Services Dave By~s, Director of Public Works Operations Leah Browder! Acting Director of Engineering SUBJECT: Alpine - Minot Resurfacing - Scenarios In accordance with your direction of August 30, 2006, please find below three basic scenarios for moving forward on resurfacing Alpine-Minot Street between E and F Street. Prior to getting into the scenarios, it should be noted that based on visual inspection and comparison to other streets in the neighborhood and throughout the City, the street does not appear in need of a resurfacing treatment at this time. Circumstances which mitigate that strictly objective engineering view include the significant number of sewer laterals that have been cut in the street in recent months/years, significant neighborhood pressure to resurface the street and the City's verbal commitment to resurface the street. Scenario I: Undertake the resurfacing of the street as a stand-alone project. In both of the following two options, the ability of the City doing the work is temperature dependent; therefore the sooner we move forward, the less chance of having weather related delays. lA. Utilize the City's typical REAS Type I or Type II Slurry material Pros: 1. Is consistent with slurry seal treatment City is utilizing on streets that require treatment but do not rise to the level of needing an ARAM or pavement overlay treatment. Cons: 1. Cost of work is estimated at approximately $80,000. This amount requires formal bidding based on City regulations. The timefrarne for such a process would be: a. Advertise for bids on September 5, 2006 b. Allow minimum of two weeks for bids to be submitted c. Open bids on September 19, 2006 d. Assuming proper bids are received, bring a contract forward to Council on September 26, 2006 17-24 e. Ass=ing proper bonding and insurance is put in place by successful bidder, issue a notice to proceed during the first week of October with completion specified within two weeks. (All of these abbreviated timeframes will need to be included in the bid documents which could result in higher bids or fewer bidders based on their existing work). 2. The cost of the work for this street will be higher than ifit were included in a larger project as we typically do. The informal bids that we solicited showed significantly higher costs for dig-outs than we typically see. This is most likely due to the small quantity of actual dig-outs that need to be done on this lone street. The mobilization costs for bringing equipment and material to this street are not spread over a larger group of streets. IE. Undertake a less structurally significant seal coat treatment (Sand Seal Coat) Pros: 1. Given the relatively good condition of the street, a less structurally significant seal coat treatment would tend to rejuvenate the pavement surface and provide a uniform color appearance. 2. The cost for such a treatment would be significantly less and this type of treatment will be added to the menu of pavement management options with implementation of the new system, particularly on newer streets. 3. Ass=ing that City crews could perform the dig-out work, the cost to an outside contractor would likely be less than $25,000, thus eliminating the need to go through the time consuming elements of a formal bid process. If the price is less than $25,000, the City Manager is authorized to award such work. It would be expected that the work could be completed by September/October. Cons: 1. This type of treatment adds no structural integrity to the street and will not significantly affect the long t= treatment needs of the street. 2. While improving the appearance of the street, it will not make significant improvements in the actual driving surface. 3. These types of treatments are typically utilized on newer streets (approximately 5 years old) as a way to preserve and extend the life of a recently constructed/paved street. Its use and effectiveness on an older street that has not been repaved for quite a few years is questionable. 4. The use of this strategy will likely be noticed by residents both initially and over time as the seal coat wears down more quickly than with a typical REAS slurry treatment. We would expect this type of treatment to be useful for a two-year period. 17-25 5. City crews will be redirected from ongoing work requests. This would add to the list of backlog that the Public Works Operations Department has with respect to street repairs and improvements. Scenario 2: Include the street in a larger list ofREAS slurry seal streets. Like Scenario 1, this scenario is also temperature dependent. Pros: 1. Including the street on a larger list (say $1,000,000 worth of work) will result in a lower cost for the street due to its inclusion in a much larger proj ect. Cons: 1. The development ofa larger project will require additional time. We would estimate a project schedule as follows: a. Creation of a list of streets to undertake by September 8th. b. Field verify all of the dig-out quantities which will likely take four weeks from list creation (complete in early October) c. Advertise for bids in the first three weeks of October. d. Assuming proper bids are received, bring a contract to Council in early to mid November. e. Assuming proper bonding and insurance are put in place, issue a notice to proceed in mid to late November. In order to insure that Alpine-Minot is completed as early as possible, we would stipulate in the bid and contract documents that it be completed first in an attempt to avoid any weather issues. (Including this in the bid documents could result in higher bids due to altering the most efficient order of work planned by the contractor). 2. Given the timeframe for bidding this work, we could run into weather related issues (both rain and temperature). 3. This list would be generated not very far in advance of the finalization and presentation of the City's new pavement management system. It is quite possible that streets on this list would not be included on a list based on the final results of the pavement management system. Scenario 3: Wait until the pavement management system is complete and approved by the City Council Pros: 1. By waiting until the system is approved and operational, the City, for the first time, will have a comprehensive, purely engineering/technical foundation on which to move forward with pavement rehabilitation strategies and reco=endations. 17-26 Cons: 1. Given the sweeping nature of this project and the need to develop funding strategies as well as just identifying lists of streets to be done, it is not likely that the system could be presented to C01,lnci1 until late September at best and more likely late October. The technical information will likely be available by late September, however, the significant fiscal issues will likely require additional time to be addressed. 2. It seems quite likely that Alpine-Minot would not be particularly high up on the priority list for any pavement rehabilitation strategies in the near future, certainly not this year. Reco=endation: From a purely objective/engineering viewpoint, we would reco=end that the City not embark on any pavement rehabilitation efforts until after the pavement management system has been completed and approved. However, we do recognize that certain commitments have been made and that for non-engineering reasons it may make sense to proceed forward on Alpine-Minot. In light of that we would reco=end Scenario lB as the way to go in this case despite the diversion from typical City practices. We think in this limited case, despite the age of the street, the seal coat treatment will provide some limited benefits to the pavement surface and will improve the aesthetics of the street surface. Lastly, you requested that we provided information on street rehabiliation work that has been undertaken in recent years as well as the value of work expected in the current CIP budget. On May 23,2006, I wrote a memo to Zaneta Encarnacion, Constituent Services Manager and described the level of effort since 2002. I've attached a copy of that memorandum, but its worth pointing out that out of the $12.2 million of rehabilitation related street improvements since 2002, that $10.1 million has occurred in western Chula Vista Within the current CIP program, we have $4.6 million of funds already appropriated for pavement rehabilitation and will also be seeking appropriation of additional AB2829 funds for both pavement and drainage improvements within existing streets later this year, Cc: Matt Little, Deputy Director of General Services Rick Hopkins, Assistant Director of Public Works Operations 17-27 MAYOR AND COUNCIL OFFICE STAFF INFORMATIONAL ITEM , May 23, 2006 TO: Zaneta Encarnacion, Constituent Services Manager VIA: FROM: Jack Griffin, Director of General Services SUBJECT: Constituent Case No. 00942M: Streets In response to your email dated May 22, 2006 regarding the above referenced Constituent Case, please find answers to the questions that you asked: 1) Question - Amount of money spent on street improvements since 2002? Answer - The City has spent a $12,200,809.85 on street improvements since 2002. This amount only pertains to work that the City has contracted out and does not include the amount of money the City has spent on the maintenance of streets and does not include sidewalk rehabilitation projects nor does it include any funds spent by private interests such as developers and builders. 2) Question - How many miles re-pavement since 2002? Answer - We do not look at miles as a significant measurement. We monitor the amount of work by square feet and the amount was 15,004,825 square feet. 3) Question - Breakdown of street repairs between east and west? Answer - The amount of square footage is broken down as follows: East (east ofI-805) - 9,382,362.50 square feet West (west ofI-805) - 5,622,462.50 square feet The cost breakdown is as follows: East (east ofI-805) - $2,147,794.30 West (west ofI-805) - $10,053,015.55 As I indicated in my email dated May 22, 2006, the quantity of pavement surface is an apples to oranges comparison with the cost. The western portion of the City has received 82% of the City's pavement investment from a cost perspective. Again, this only includes work the City has contracted for and does not include day-to-day maintenance activities 17-28 4) Question - Are there any projects planned around Hilltop Drive, L Street, Naples or Telegraph Canyon Road? ' Answer - All of these are fairly long streets, so it would be helpful to know if there were specific segments in mind. There is a project planned for L Street between Monserate and Nacion as part of a utility under-grounding project. With respect to future pavement rehabilitation projects, we hope to have our comprehensive pavement manag=ent system completed this summer. Once complete, it will be utilized by staff to prioritize our pavement needs and enable staff to make funding reco=endations to City Council based on objective data. I hope that this memorandum provides the information you requested. Cc: Dave Rowlands, City Manager Tom Oriola, Chief of Staff Dana Smith, Assistant City Manager Leah Browder, Acting Director of Engineering Dave Byers, Director of Public Works Operations Matt Little, Deputy Director of General ServiceslInterim City Engineer JeffMoneda, Sr. Civil Engineer 1 7z-2 9 Pavement Rehabilitation FY 2002/2003 through FY 2005/06 Eastern Chula Vista Fiscal Year Project Number Type of Pavement Area of Pavement Treatment Rehabilitated (sq. ft.) ..... 2002103 STL 284 Flex Seal 2,500,000.00 2002103 STL 277 Chi Seal 1,522,362.00 2003/04 STL 300 Flex Seal 360,000.00 2005/06 STL 310 Flex Seal 5,000,000.00 Cost .'~.. $285,770 $374,408 $114,566 $1,373,050 Totals 9,382,362.00 $2,147,794 Western Chula Vista . .. 1,522,362.00 1,261,100.00 77,000.00 2003/04 STL 293 Overla 1,600,000.00 $2,053,404 2003/04 STL 293 Overlay 90,000.00 $134,900 2004/05 STL 287 Reconstruction 24,000.00 $464,910 2004/05 STL 313 Overla 538,000.00 $1,196,225 2005/06 STL 301 Reconstruction 45,000.00 $666,910 2005/06 STL 302 Reconstruction 45,000.00 $574,434 2005/06 STL 310 ARAM 420,000.00 $519,452 Totals 5,622,462.00 $10,053,015 Percentage Splits Location Pecent ofT otal Percent of Total 17-30 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING THE STAFF TO UNDERTAKE A PAVEMENT REHABILITATION PROJECT ON ALPINE- MINOT STREET BETWEEN E STREET AND F STREET AND TRANSFER $27,560 FROM THE TRANSPORTATION SALES TAX APPROPRIATION OF CAPITAL IMPROVEMENT PROJECT STL335, PAVEMENT REHABILITATION FY 2007- 08 TO CAPITAL IMPROVEMENT PROJECT STL329, PAVEMENT REHABILITATION ON ALPINE-MINOT STREET BETWEEN E STREET AND F STREET WHEREAS, the City of Chula Vista has developed a comprehensive pavement management system that will guide the City on its decisions in the future as to when and what pavement management treatment streets will receive; and WHEREAS, this system analyzes the entire City's pavement inventory and, based upon the physical condition of the streets, the pavement condition index and the funding available, lists will be developed that will form the basis for the contracting of future pavement rehabilitation projects; and WHEREAS, the residents on Alpine Minot indicated they believed their street should be resurfaced and that improvements to the sidewalks should be made; and WHEREAS, City staff undertook site meetings, site inspections and met with residents over the past two years whereby the City made significant repairs to sidewalk panels on the street and resurfaced the street through a combination of Asphalt Rubber Aggregate Membrane (ARAM) and a sand seal; and WHEREAS, residents have re-contacted the City indicating that additional pavement treatments are needed; and WHEREAS, Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class I Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines because the proposed project consists of minor alterations to an existing public facility involving no expansion of the facility's current use. Thus, no further environmental review is necessary; and WHEREAS, the treatments discussed above on Alpine-Minot were treatments that would be consistent for a street in the condition Alpine-Minot was in (i.e. minor cracking, utility trenching and minor oxidation); and 17-31 WHEREAS, staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action; and WHEREAS, the cost of the project would be borne by the Transportation Sales Tax fund which funds the majority of the City's pavement rehabilitation activities; and WHEREAS, a transfer of $27,560 from existing Capital Improvement Project STL335, Pavement Rehabilitation FY 2007-08 to Capital Improvement Project STL329, Pavement Rehabilitation on Alpine-Minot Street between E Street and F Street, will be necessary. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby direct staff to undertake a Pavement Rehabilitation Project on Alpine-Minot Street between E Street and F Street and transfer $27,560 from the Transportation Sales Tax appropriation of Capital Improvement Project STL335, Pavement Rehabilitation FY 2007-08 to Capital Improvement Project STL329, Pavement Rehabilitation on Alpine-Minot Street between E Street and F Street. Presented by Approved as to form by Jack Griffin Director of General Services ~~C1'l\}\ \' \\:\.'(~~}\ Ann Moore City Attorney J:\General Services\GS Administration\Council Agenda\Alpine Minot\Alpine Minot Reso for 080707.doc 17-32 CITY COUNCIL AGENDA STATEMENT s}!'f:.. CITY OF .~~:k (HULA VISTA Meeting Date: 8/7/07 Item No.: ~ ITEM TITLE: RECOMMENDATIONS OF THE SUBCOMMITTEE ON CIVIC ENGAGEMENT IN CHULA VISTA SUBMITTED BY: SCOTT TULLOCH, ~S~~ANT CITY MANAGER ':./ CITY MANAGER l\1t1. r \4/STHS VOTE: YES D NO 0 REVIEWED BY: BACKGROUND On May II, 2007, the City Council considered a report titled "An Assessment of Civic Engagement in Chula Vista, Findings and Recommendations, March 2007, " by Terry Amsler, California League of Cities Institute for Local Government. At that meeting, the Council appointed a Subcommittee (Mayor Cox and Council Member Ramirez) to review, synthesize and prioritize the many recommendations made in the report. The Subcommittee met with Assistant City Manager Scott Tulloch and Nancy Lytle, Planning and Building, on July 13 and July 20, 2007. They developed a set of goals and six recommendations that can now be developed into an action plan by Staff, Council and the community. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION The Subcommittee recommends to the City Council the adoption of six goals and six recommendations. The following goals for Chula Vista Civic Engagement are: · Effectively Communicate with the Public · Understand Public Preferences and Desires 18-1 August 7, 2007, Item No.:~ Page 2 of2 . Collaborate with the Public in Decision Making . Improve effectiveness and satisfaction of Boards and Commissions . Ensure civic engagement is comprehensive with respect to all sectors of the community . Enhance the relationship between government and the people we serve by increasing the quality of interactions. The six synthesized recommendations are outlined in Attachment A, derived from the Amsler report for improving civic engagement in Chula Vista. DISCUSSION The process used by the Subcommittee was to reorganize the Amsler Report into a concise synopsis of recommendations. They reviewed and discussed their goals and objectives for improving civic engagement. Each member prioritized the recommendations individually and, after discussing their individual priorities in a meeting with staff, synthesized them into six recommendations that met the identified goals. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. FISCAL IMPACT There will be no impact to the General Fund as a result of this action. The recommendations are part of the current budget assumptions for FY07-08. ATTACHMENTS Subcommittee Summary Recommendations titled "An Assessment of Civic Engagement in Chula Vista, Findings and Recommendations" modified and recommended unanimously 7/20/07 Prepared by: Nancy Lytle. Process Manager, Department of Planning and Building 18-2 AN ASSESSMENT OF CIVIC ENGAGEMENT IN CHULA VISTA FINDINGS AND RECOMMENDATIONS Based on the Recommendations Submitted by the Collaborative Governance Initiative, the Institute for Local Government, April 12, 2007 and as refined and synthesized by the Subcommittee for Civic Engagement July 13, 2007 and recommended for Council consideration on July 20, 2007. VI. CITY COMMISSIONS: FINDINGS AND RECOMMENDATIONS Orientation, Training and Leadership Development 4. Commissioner Orientations should be conducted annually and include: . Review of each commission and board purpose, responsibility and charge . basic governance training and relationship to City Council, staff, other boards and commissions and citizens . meeting conduct, protocols and group dynamics . ethics and other applicable laws, such as the Brown Act and conflict of interest laws . staff overview of revious ear's work content and rocess, 10. Bring commission chairs together annually for a joint session with the City Council for: . information-sharing common learning, . relationship building and setting expectations; . Identify emerging commission needs, obtain information about changes in relevant city protocols or policy, share experiences about effective commission practices, and . receive useful training beyond orientation in meeting facilitation, relevant legal issues, or optional methods of securing public input . assessment of revious accomplishments and rovide direction for the comin ear IX. CITY AND COMMUNITY: RECOMMENDATIONS Planning for Excellence in Public Involvement Synthesis Recommendation 15 through 21. The City Council will lead Civic Engagement efforts that lead to successful policy and program implementation. The inclusive process will convene all sectors: elected and appointed officials, city staff, civic and neighborhood associations, community members, business, non-profit, faith-based and other groups to discuss and hear feedback and to define vision, goals and objectives for building on current successful efforts for a better community. The City will seek to develop the processes, their agendas and informational materials in collaboration or with the informed contributions of participating sectors. The community building efforts initiated in the Southwest will em 10 these techni ues, will be consensus based and will initiate actionable oals and ob'ectives. AN ASSESSMENT OF CIVIC ENGAGEMENT IN -1- CHULA VISTA; FINDINGS AND RECOMMENDATIONS, 2007 Rev. 7/20/07 (Subcommittee, Civic Engagement) 18-3 The outcome will be supported by partnerships that will leverage resources to accomplish community priorities as defined through the grass roots effort. Civic engagement efforts in the Southwest will precede Southwest Specific Plan(s). Capacity BuildinglLeadership Development 26. Offer broadly focused "citizen academies" consisting of several weeks of evening or weekend classes to acquaint residents with the purposes, offices and work of city government. Different city departments will take responsibility for a particular evening or part of a class. City Commissions/Boards may also present information. Benefits accrue to the participants who better understand their city government and the city gains from more knowledgeable and civically engaged residents. Academy graduates will add to the pool of applicants for commission and other civic en a ement 0 ortunities. Civic Engagement Process Development and Innovation 28. The Chula Vista Redevelopment Corporation (CVRC) and the Redevelopment Advisory Committee (RAC) should be evaluated jointly in relation to each other and the entire development review process. How they each contribute to building community trust toward redevelopment efforts is important. The RAC and CVRC composition, skills deveiopment, cross training and communication between the bodies, the City Council, the staff and the community should all be explored in the spirit of collaboration. The idea of having project developers/advocates available informally, information sharing and dialogue, and more participatory approaches should be expiored. The opportunity for assessment and the generation of an evolving compendium of civic engagement "best practices" for larger scale planning efforts will aid Chula Vista's ability to embed good civic engagement in City and Redevelo ment A enc lannin and redevelo ment efforts. x. INCLUSION AND ACCESS: FINDINGS AND RECOMMENDATIONS Synthesis of 32 through 46. To attract a broader spectrum of participants to civic engagement, a variety of additional means for them to communicate their opinions should be tailored to the diverse characteristics and needs of Chula Vista residents. New methods of culturally competent public involvement can be employed. Expanding translation and interpretation, moving the location of meetings and relying more on intermediate organizations can heip provide two-way conduits for the City and staff should continue to solicit and support such organizations. As one example, the Chula Vista Youth Advisory Commission can playa more meaningful role, with young people solicited and included in public engagement. Youth Commissioners can also help to engage other youth in such processes and hold forums to encourage youth participation. AN ASSESSMENT OF CIVIC ENGAGEMENT IN -2- CHULA VrST A: FINDINGS AND RECOMMENDA nONS, 2007 Rev. 7/20/07 (Subcommittee, Civic Engagement) 18-4 ~V?- .-. A ~ooc:~~ Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax JUL 2 0 2007 eM-- CIlY OF CHUlA VISTA MEMO July 20, 2007 TO: _i><'__=m~~"' 'tl1[)' ~''';'~'''''' .., ~'a:.~:II,~~~:" :.' .. ':{ ", e .. "; ,',~' WI.. 11\ .. .:._,_..~~,,~., ~,,~- - .,,-.. "'--,-,. ..,.,-.."'.....; ""f- '~'~"', ..~,....~ ..,,"'" .'1'\-.."," ,-' FROM: Jennifer Quijano, Constituent Services Manager RE: Nature Center Board of Trustees Mayor Cox would like to recommend Sharon Harmon for appointment to the Nature Center Board of Trustees. Sharon will replace James McVeigh who termed out June 30,2007. Please place this on the August 7, 2007 Council agenda for ratification. Thank you. cc: Mayor Cox 7r~t:>7 /1$/ . c;UJ/r'tfIl.).ly ..:;2rUC.- /?J. #r~;:;q 1;;; 6Icl(~. ~1-Z;?' -0" d? ~ L/' '20 A - I ~{f? -fl- '; ~ -:: ~ -= Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax JUL -zOB ellY OF CHUlA VISTA 10 ----- July 18, 2007 TO: ~OIl"~~~;~nnett,:;Depuiy:citY dlerk FROM: Jennifer Quijano, Constituent Services Manager RE: Board of Appeals & Advisors Mayor Cox would like to recommend Jose Lopez for appointment to the Board of Appeals & Advisors. Jose Lopez will replace Jose Romo who termed out June 30, 2007. Please place this on the August 7,2007 Council agenda for ratification. Thank you. CC: Mayor Cox 7--.?~- ~ "7 /l1r. ~~3 ~S ",of c~ur~...f'7 '.r~ en ""'/II' e..V- ~/c.fi t. ~U~ . he /'J(?tI/t:DV..r/y .sf!!?~e/ ~ /Ae .:S"'~7' ~",M.r.SJr'w ~ ~ /oV~/'J/ 1f#U p&J14K",,: '3 -:l3 - "t.... - b - ~o-q "'( -4JI\ 1- L'S -<::, l 7-13-"," - (,-~.:>- ""~ 7- J:;;> _ c:>.3 - CD. 30 - 007 2DB-1 JUl 2 3 2007 ~ Councilmember Steve Castaneda City Of Chula Vista 276 Fourth Avenue Chuta Vista, Ca 91910 ellY OF 619.691.5044-619.476.5379 Fax CHUlA VISTA MEMO DATE: Thursday, July 19, 2007 TO: Deputy City Clerk, Lorraine Bennett cc: Mayor and City Council Councilmember Steve cast~ Mobilehome Rent Review Commission, Seat #4 FROM: RE: I recommend appointing Sam Longanecker to replace Rosa Robles to Mobilehome Rent Review Commission Seat #4. Will you please place the appointment on the next City Council Agenda, August 7, 2007. Thank you. ~ .,).3' 07 ~ /'7f:>/ cu,renf(z /Jr. /q;J;,./Jr/.'<!!!~'j,tq l6("r0.~\..1'13-6' d!Y7 ~ C-.HU" $~ }-I - r