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HomeMy WebLinkAboutAgenda Packet 1992/05/26 Tuesday, May 26, 1992 6:00 p.m. "I dllclero under l'llnalty 0; l'erju!'l' thet I eiff emf/loye:! by the Gity of (.hula Vista In the Office of the City Clerk and that. I posted th'IS Agen'h/Notice on the Bulletm Bo.ard at - d t C t uall Council Chambers the Public l)jlrvices Building an a I Y. '. U P bl' S . B ild' DATED,5,f?.2.-/7.;l SIGNED' u IC elVlces u mg Rel(Ular MeetlnSl: tf the Cirv of Cli a Vista Cirv Council CALL TO ORDER 1. ROll. CAlL: Councilmembers Grasser Horton -' Malcolm -' Moore -' Rindone -' and Mayor Nader _ 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SIl.ENf PRAYER May 5, 1992 (Joint Meeting of the City Counci1/Redevelopment Agency), May 5, 1992 (City Council), and May 12, 1992 (City Council) 3. APPROVAL OF MINUTES: 4. SPECIAL ORDERS OF THE DAY: a. Presentation on regional airport options. CONSENT CALENDAR (Items through 5 through 12) The stoff recommendations regarding the following iIons 1isted II11Iier the CoIIsenl Calendor will be enacted by the Cowu:i/ by one motion wiIhout discussion unless a Coundlmember, a member of the public or City stoff requests that the item be pulled for discussio1I. lfyou wish to speok on one of these items, pleiJse fill out a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form to speok in favor of the stoff recommendation; ~ the pink form to speok in opposition to the stoff recommendtltion) Items pulled from the CoIIsenJ Calendor will be discussed after Aaioft Items and Board and Commission Recommendations Items pulled by the public will be the first iIons of business. 5. WRITTEN COMMUNICATIONS: a, Letter requesting approval of a one-time July 4th celebration with fireworks in EastLake . Katy Wright, Project Manager, EastLake Development Company, 900 Lane Ave., Suite 100, Chula Vista, CA 91914. b. Letter requesting endorsement and attendance at annual Race Unity Picnic on Saturday, 6/13/92 . Tom Galloway, Baha'i Race Unity Committee, P. O. Box 287, Chula Vista, CA 91912. 6. ORDINANCE 2514 AMENDING THE ZONING MAP OF EASTI.AKE II PLANNED COMMUNITY DISfRlCT FOR PARCELS R-24 AND R-25 CONSISTING OF APPROXIMATELY 5.0 ACRES AND 7.4 ACRES LOCATED WITHIN THE EASTI.AKE GREENS SECTIONAL PLANNING AREA PLAN (PCM-92-Q3) (second readinSl: and adoption) . The request will amend the EastLake Greens SPA Plan and transfer sixty-nine dwelling units within the project. No increase in dwelling units is proposed. Staff recommends Council place the ordinance on second reading and adoption. (Director of Planning) Agenda -2- May 26,1992 7. ORDINANCE 2516 ADOPTING -mE UNIFORM FIRE CODE, 1991 EDITION AND -mE APPENDIX AND SfANDARDS 1HERETO (firstreat!;n"l - The 1991 Edition of the Uniform Fire Code shows improvement over the 1988 Edition. Language and clarification have been stressed. Three major amendments have been added. They deal with overspill containment on flammable liquid tanks, permitting certain above ground flammable liquid tanks and regulating storage of empty wooden or plastic pallets. Other proposed amendments are those that have been approved by Council over the past seven years. Staff recommends Council place the ordinance on first reading. (Fire Chief) 8. RESOLUl10N 16633 APPROVING CONFIDENTIAlJ1Y AGREEMENT wrrn LAIDLAW WASTE SYSTEMS - During last year's consideration of rate increases for Laidlaw, Council requested certain information about their operations and finances that Laidlaw may consider proprietaty and, therefore, Council directed staff 1I.1f;S(!1!1I1..,,"" to come back with a proposed Confidentiality Agreement at the appropriate To .:TVNti.:t I""z.. time. Laidlaw has recently submitted a request for a rate increase and the agreement is submitted for consideration. Staff recommends approval of the resolution. (City Attorney and Director of Finance) 9. RESOLUl10N 16634 AUTHORIZING -mE PURCHASE OF lWO POUCE PATROL SEDANS VIA A COOPERATIVE BID - Two Police patrol sedans were damaged beyond repair and need to be replaced. The vehicles may be purchased via a cooperative bid from Mill Ford, Anaheim, California on the County of San Bernardino Bid No. W-42. Staff recommends approval of the resolution. (Director of Finance) 10. RESOUJnON 16635 APPROVING AMERICAN GOlFS SUBLEASE OF -mE GOLP COURSE RESfAURANT AND BAR TO PRESTIGE HOSPITAU1Y SERVICES - American Golf Corporation (AGC) has requested permission to sublease the Golf Course Restaurant and Bar operation to Chris Campion, President, Prestige Hospitality Services Company (PHS), in accordance with the Agreement between AGC and the City of Chula Vista for the operation of the Golf Course Restaurant and Bar facility. Staff recommends approval of the resolution. (Director of Parks and Recreation) 11. RESOLUl10N 16636 AMENDING -mE FISCAL YEAR 1991-92 BUDGET TO ADD lWO TEMPORARY, PART-TIME UNCLASSIFIED INTERN POSITIONS IN -mE PUBUCWORKS DEPARTMENT AND APPROPRIATING FUNDS TIiEREFOR The 1991-92 budget includes a Capital Improvement Project (CIP) to perform a Growth Management Program Traffic Study. Transportation Development Impact Fees funds were appropriated for this purpose. It was staffs initial intent to have a transportation consultant perform the Growth Management Program Traffic Study. Staff has reassessed the need to engage a traffic consultant and has determined that it would be possible to perform the study "in-house" if we could hire temporaty personnel. Performing the study "in-house" is estimated to result in a savings of more than $30,000. Specifically, staff is requesting Council's approval to utilize funds appropriated in the CIP Growth Management Traffic Monitoring Study project to hire two additional part-time intern positions to collect field data for the Growth Management Traffic Monitoring Study. Staff recommends approval of the resolution. (Director of Public Works) 4/5th's vote required. Agenda .3. May 26, 1992 12.A. RESOLUTION 16637 APPROVING PARCEL MAP AGREEMENT AND AU1HORIZING MAYOR TO EXECUTE SAID AGREEMENT FOREASTI.AKE VlU.AGE CENTER. - EastLake Development Company (EastLake) has applied for and been granted conditional approval of Tentative Parcel Map 92-2. In satisfaction of Conditions of Approval, EastLake has executed an agreement which is now before Council for approval. Staff recommends approval the resolutions. (Director of Public Works) B. RESOLUTION 16638 AU1HORIZING TIlE CITY ENGINEER AND PlJ\NNING DIRECTOR TO EXECUTE PARCEL MAP AGREEMENTS ON BEHALF OF TIlE CITY COUNCIL * * END OF CONSENT CALENDAR * * PUBUC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items Iu:we been advertisel1 and/or posted as publii: hearings as requireIll1y 1iIw. If you wish to speoIc to fIllY item, pkIlse Jill out the "R.equm to Speok Form" avaiJDble in the lobby and submit it to the City C1erIc prior to the meeting. (Complete the green form to speoIc in favor of the staffrecommmdation; complete the pink form to speoIc in opposition to the staff recommendation.) Commmts are limited to five minutes pt!T individuaL 13. PUBUC HEARING ASSESSMENT DISTRlCf NO. 90-2 (OTAY VAU.EY ROAD) . On 4/21/92, Council adopted the Resolution of Intention to construct and finance certain public improvements to Otay Valley Road, east of I-80S, pursuant to the Municipal Improvement Act of 1913 and set the public hearing on the formation of Assessment District No. 90-2 (Otay Valley Road) for 5/26/92. The associated resolutions make changes and modifications to the Engineer's Report, overrule protests, confirm the assessments, make CEQA findings, adopt a Mitigation Monitoring Plan, and approve utility and underwriter agreements. Staff recommends approval of the resolutions. (Director of Community Development and Director of Public Works) A RESOLUTION 16639 APPROVING AGREEMENTS FOR EXECUTION IN ASSESSMENT DISTRICf NO. 90-2 (OTAY VAU.EY ROAD) AND AUnIORIZING TIlE MAYOR TO SIGN SAID AGREEMENTS B. RESOLUTION 16640 APPROVING TRANSFER OF FUNDS TO ASSESSMENT DlSTRICf NO. 90-2 (OTAY VAU.EY ROAD) C. RESOLUTION 16641 ORDERING CERTAIN CHANGES AND MODIFICATIONS TO TIlE ENGINEER'S REPORT IN ASSESSMENTDlSTRICf NO. 90-2 (OTAYVAU.EY ROAD) D. RESOLUTION 16642 OVERRUUNG AND DENYING PROTESTS AND MAKING CERTAIN FINDINGS IN ASSESSMENT DlSTRICf NO. 90-2 (OTAY VAU.EY ROAD) E. RESOLUTION 16643 CONPIRMING TIlE ASSESSMENT, ORDERING TIlE IMPROVEMENTS MADE, TOGETHER WI1H APPURTENANCES, APPROVING TIlE ENGINEER'S "REPORT", MAKING CEQA FINDINGS, AND ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS AND A MITIGATION MONITORING PLAN REGARDING ASSESSMENT DlSTRICf NO. 90-2 (OTAYVAU.EYROAD) Agenda -4- May 26,1992 14. PUBUC HEARING TO CONSIDER ADOPTING A RESOUITION OF NECESSI1Y FOR ACQUIRING AND AUlHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERlYWl1HIN THE OTAY VAlJ.EY ROAD STREET WIDENING PROJECT. A public hearing is necessary for the Council to deliberate upon the request to adopt the Resolution of Necessity to acquire the remaining property rights through eminent domain for the public right.of.way which is necessary for the construction of Otay Valley Road improvements. The City's acquisition consultant was successful in reaching agreement with all but four property owners covering five parcels which are the subject of the resolution. Staff recommends approval of the resolution. (Director of Community Development) 4/5th's vote required. RESOLUTION 16644 FINDING AND DETERMINING PUBUC INIEREST AND NECESSITY FOR ACQUIRING AND AUlHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERlY WInIIN THE OTAY VAlJ.EY ROAD STREET WIDENING PROJECT ALONG OTAYVAlJ.EY ROAD BElWEEN INTERSTATE 805 AND THE EASTERN BOUNDARIES OF THE CI1Y OF CHUIA VISTA ORAL COMMUNICATIONS This is an opportuni1.y for 1M general pubtil: to address 1M city Council 011 any subject mailer wiJhin 1M Council's jurisdiI:tion tIult is not an item 011 this agenda. (State law, however, generally prohibits 1M City Council from taking action 011 any issues not included 011 1M posted agenda.) If you wish to address 1M Council 011 such a subject, pIeDae complete 1M yellow "Request to Speak UruJer Oral Conununiauion.s Form" available in 1M lobby and submit it to 1M City CIok prior to 1M muIing. 'Those who wish to speok, pIeDae give your nome and address for record purposes and foUow up action. Your time is limited to three minutes per speaker. ACTION ITEMS The iIems lisfBl in this section of 1M agenda are expected to etiI:it substantial discussions and deliberations by 1M Cowu:iJ, staff, or members of 1M general publU:. The iIems will be considered individuaIIy by 1M Council and staff reconrnaendatio may in certJJin cases be presented in 1M a1temative.. 'Those who wish to speok, pIeDae fill out a "Request to Speak" form available in 1M lobby and submit it to 1M City Clerlc prior to 1M mating. Pubtil: comments are limited to five minutes. None submitted. BOARD AND COMMISSION RECOMMENDATIONS This is 1M time 1M City Council will con.sideT iIems which have been forwarded to them for ClJII.fidI1TaIi by one ofIM City's Boards, Commissions and/or Committees. None submitted. ITEMS PUUJID FROM THE CONSENT CALENDAR This is 1M time 1M City Council will discuss iIems which have been TenIlJWi1 from 1M Consent Calendar. Agmda iIems pulletl at 1M request of 1M pubtil: will be considered prior to those pulletl by Coum:ilmanben. PubtiI: comments are limited to five minutes per individuaL Agenda -5- May 26, 1992 O'lHER BUSINESS 15. CI1Y MANAGEROS REPORTCs) a. Scheduling of meetings. 16. MAYOROS REPORT(s) a. Downtown Business Ucense Tax Rebate Program. 17. COUNCIL COMMENTS Councilman Rindone a. Chula Vista City Council position on Assembly Bill 3734. b. Appointment of Susan Herney to Otay Ranch InteIjurisdictional Task Force. ADJOURNMENT The City Council will meet in a closed session immediately following the Council meeting to discuss: Instructions to negotiators regarding personnel pursuant to Government Code Section 54957.6 The meeting will adjourn to (a closed session and thence to) the Regular City Council Meeting on June 2, 1992 at 4:00 p.m. in the City Council Chambers. A Special Meeting of the Redevelopment Agency will be held immediately following the City Council meeting. May 19, 1992 The Honorable Tim Nader, Mayor Members of the City Council CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 Dear Mayor Nader and Council Members: As a show of appreciation for our new residents we are planning a one-time July 4th celebration in EastLake. Our plans call for an invitation to all EastLake residents to enjoy an "Appreciation Day" featuring a band and fireworks display either near the lake or in EastLake Greens. You might recall that several years ago we had a fireworks display on the 4th of July and had hoped to make it an annual event. That effort was discontinued for a variety of reasons. Some city Council members had also expressed concern that an annual EastLake event on the 4th would disrupt the City's bayfront display. Since we are not planning an annual program, we hope to allay any objections you might have with the program. However, if you do have a problem with this concept, we would be pleased to discuss it with you. Because we need to commit to the fireworks company, we would appreciate hearing any concerns this week, if possible. Thank you for your consideration. Sincerely, L'c: EASTLAKE DEVELOPMENT COMPANY ~tCt\~L\) ~ lJJ~ Mfi.Yl9 1992. ~ 0 MAYOR'S Of.,HCE Katy righ - c;lola _'" l Project Manager KWjcll !\J cc: John Goss WRITTEN COM ~'1~(1 !;;5 d~y ~~ 0J' ~.tP~. - ~vu~ .5~-/ RECEiVED '92 MAY 19 P2 :27 CIT'i' CITY .. ... ... ..... fASTLAKE DEVELOPMENT COMPANY NICATIONS ~ 900 Lane Avenue d ~~'Q'7 SUite 100 7..;1. /... Chula ,,"sta, CA 9191~ (619) 421-0127 FAX (619) 421-1830 May 20, 1992 RECEIVED 21 /\Q:LIB 'l:fl!WI'! " ; enY OF ~c c.c CITY cu.!;~ The Honorable Mayor & city Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Subject: Race unity Picnic Dear Mayor Nader & Members of the Council: It is respectfully requested that the City Council consider at its Tuesday, May 26, 1992 meeting the endorsement of and attendance at the annual Race Unity Picnic held at Eucalyptus Park in Chula Vista. We hope you will give this proposal urgent placement on your agenda since the picnic will take place on Saturday, June 13, 1992. The event has been expanded county wide for this year. I1ayor Nader has been invited to deliver a welcoming speech and has consented to have a proclamation issued for the event. Attendance is free of charge. No financial contribution is requested from the city or other endorsers of the picnic. Nor will any be accepted. All manpower and funds will be provided by members of the Baha'i Community of Chula Vista. Your endorsement is for the purpose of the picnic in the second paragraph of the attached letter which has been sent to 293 organizations in San Diego County. Your endorsement will not be represented to others as an endorsement of the Baha'i Faith or the public statement called "The vision of Race Unity--America's Most Challenging Issue". The Chula Vista City Attorney, Bruce M. Boogaard, has granted permission to attach his letter of advice to the Chula Vista Human Relations Commission stating: "that the City may endorse the concept of Race unity and the purpose behind the picnic without running afoul of the separation of church and state rule." " WRlnEN COMMUNICA "tIQNSny submitted, e:~l1 (LI) r1pIMT~~ ~ t1 ~ Baha'i Race unity Committee /.7 Z ~ rL _j Tom Galloway, Chairman () ;, U~.; "'\ ~ ...:; 17 ~ SPIRITUAL ASSEMBLY OF THE BAHA'IS OF CHULA VISTA P.O. Box 287 Chula Vista, CA 91912 RACE UNITY PICNIC The Baha'is of Chula Vista request your endorsement of and attendance at the Annual Race Unity Picnic. The purpose of this picnic is to demonstrate the oneness of mankind by living out the unity of the races in a public way. Action, not words, is the keynote -- not hollow phrases, but deeds of brotherly love and fellowship. The picnic will be held on Saturday, June 13, 1992, from 11:00 a.m. to 4:00 p.m., at Eucalyptus Park (formerly Gen. Roca Park) on the corner of 4th Avenue and C Street in Chula Vista, near the border with National City. Four gazebos are reserved and attendance is free of charge. Please bring your own food and other picnic needs. A children's playground is right next to the gazebos. There may also be a remote radio broadcast at the picnic. To answer some of your questions about the Baha'i Faith and how it stands in the issue of racism, we have enclosed a recent public statement called "The Vision of Race Unity - America's Most Challenging Issue." Although we hope the statement will be received with interest, we are not asking you to endorse it, or to make any financial contribution. Your participation and endorsement are for the picnic and its pUl:pose as noted above. The name of your group will be listed with others, many of which participate with us in Martin Luther King, Jr. birthday observances, Earth Day, the Peace Essay Contest, and the Peace Resource Center of San Diego. Please R.S.V.P. by mail or by phone at (619) 421-1439 Monday through Friday (between 3:00 p.m. and 5:00 p.m. only, please). This year will mark the 35th observance of Race Unity Day, celebrated by many organizations nationwide. The positive example we together set for our community can go a long way toward restoring respect for human dignity. To ignore the problem of racism is to expose the country to real danger. No true change will come about without close association, fellowship and friendship among diverse peoples - unity in diversity. We are looking forward to seeing you there. :k--ffi~/ Chairman Race Unity Committee LJJ...o-'7'157 5b~~ '. " , "(""'. '" . .. '""'\ May 15, 1992 To: Patty Wesp, Secy. to Mayor and Council Bruce M., Booqaard, City Attorney ~ From: In response to your request for advice regarding the request of the Baha'is of Chula Vista for a sponsorship of the annual Race Unity Picnic, please be advised as follows: 1. city must remain "religious neutral" with regard to any activity it sponsors or endorses. That is to say that the City can neither advance one religion over the other or show a preference for one religion over the other or discriminate against one religion over another or encourage people to be religious as opposed to not being religious. In line with that instruction, the City should not sponsor an activity which does any of the foregoing. For the same reason that the City cannot conduct and does not conduct a prayer at the beginning of its Council meetings, it cannot sponsor or endorse religious activities. I have advised Mr. Galloway of the Spiritual Assembly of the Baha'is of Chula Vista that if they want the City's sponsorship of the Race Unity Picnic, the activity should not contain religious references such as prayers, religious symbols or religious songs. There is a significant difference between sponsorship and endorsement. Sponsorship sugges~s that there is a financial backing of the activity, an~ in th~case I am told that there is no such financial backing by the city. To some extent then the use of the word "City sponsorship" would be misleading and inappropriate to use. I advised Mr. Galloway that the City may endorse the concept of Race Unity and the purpose behind the picnic without running afoul of the separation of church and state rule. He asked me to provide you with my advice in this regard and to tell him that he should still like it scheduled betore the Human Relations Commissions. Please accommodate his request in this request. BMB:lgk C:\k\bIba'is 5b"';S ORDINANCE NO. :t~)Y ~ ':>~CQ 'll;D Jr~D . '1IVG ~D.q DoP17Qv AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE ZONING MAP OF EAST LAKE I I PLANNED COMMUNITY DISTRICT FOR PARCELS R-24 AND R-25 CONSISTING OF APPROXIMATELY 5.0 ACRES AND 7.4 ACRES LOCATED WITHIN THE EAST LAKE GREENS SECTIONAL PLANNING AREA PLAN (PCM-92-03) WHEREAS, a duly verified application for an amendment to the EastLake II Pl anned Communi ty Di stri ct Zone was fil ed wi th the Pl anni ng Department of the City of Chula Vista by the EastLake Development Company on August 8, 1991, and, . WHEREAS, said application requested an amendment to the Planned Community.District Zone Regulations and Land Use District Map to zone Parcels R-24 and R-25 to Residential Condominium 10 and to add the Residential Condominium 10 land use district to the EastLake II Planned Community District Regulations, and WHEREAS, the City Council has previously adopted PCM-87-7, General Development Plan for EastLake II, setting forth the precise land uses and plan diagram for the project, and WHEREAS, the Environmental Review Coordinator has examined the proposed amendment and on March 25, 1992, the Planning Commission certified Negative Declaration (IS-92-04) finding that said amendment will have no significant impact on the environment in compliance with Section 15070 of the State California Environmental Quality Act Guidelines, and WHEREAS, the Planning Commission held a duly advertised public hearing on said amendment on March 25, 1992, and at the conclusion of said hearing recommended approval of the proposed amendment by unanimous vote, and WHEREAS, the City Council set the time and place for a public hearing, together with the purpose, was given by the publication in a newspaper of general circulation in the City and its meeting to property owners within 500 feet of the exterior boundaries of the properties (R-24 and R-25) at least ten (10) days prior to the hearing, and WHEREAS, the hearing was held at the time and place as advertised, namely 4:00 p.m. on May 5, 1992, in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed, and WHEREAS, the Council finds that in accordance with the attached Negative Declaration, IS-92-04 and the findings therein, the proposed zoning amendment will not have a significant effect on the environment, and the City Council hereby certifies that the Negative Declaration was prepared in accordance with the California Environmental Quality Act of 1970, as amended, and ,-I \. Item Ji!f'" 6 Meeting Date S~ f~~>- . ITEM TITLE: Public Hearing: PCM-92-03, Request to Amend the EastLake II General Development Plan, EastLake Greens SPA Plan and EastLake I (Expansion) Planned District Regulations; EastLake Development Company a) Resolution Iv""'~ Amending the EastLake II General Development Plan b) Resolution 1l#j,~1 Amending the EastLake Greens SPA Plan c) Or inance ~~/1.f Amending the EastL~~ j1'OO~~~~siOn) p, anned District Regulations R~O\NG SUBMITTED BY tJilr .of Pl ann i ng $'i.CONO 'i:>~" WI~ REVIEWED BY: C ty Managet9 (4/5ths Vote: Yes-"o_x_J This item includes amendments to the EastLake II General Development Plan, East Lake Greens Sectional Planning Area Plan, and the EastLake I (Expansion) Planned District Regulations to allow the transfer of 69 previously approved dwelling units with the EastLake Greens project. The proposed transfer would decrease the density on six parcels and increase the density on two parcels. The total number of dwelling units within EastLake Greens would remain the same (2,774 du's) as previously approved by the City Council in 1989. RECOMMENDATION: That Council: 1. Adopt the attached resolution amending the EastLake II General Development Plan; and 2. Adopt the attached resolution amending the EastLake Greens Sectional Planning Area Plan; and 3. Adopt the attached ordinance amending the EastLake I (Expansion) Planned Community District Regulations. BOARDS/COMMISSIONS RECOMMENDATION: On March 25, 1992, the Planning Commission recommended approval of the amendments to the EastLake II General Development Plan, the EastLake Greens Sectional Planning Area Plan, and the EastLake I (Expansion) Planned Community District Regulations (6-0). The Commission deleted any reference to Parcels R-27 and R-28 from the Negative Declaration IS-92-04. On May 11, 1992, the Resource Conservation Commission failed to adopt Negative Declaration IS-92-04 by a vote of 3 in favor, 1 opposed, and 2 absent. NOTE: A majority vote of the entire 7-board membership is required for a positive vote. The "no" vote by member Ghougassian was based on a lack of assurance that condominiums or townhouses would be built and not on CEQA concerns. COUNCIL AGENDA STATEMENT . :. ~ ;,,/ DISCUSSION: Page 2, Item ~ " "",,1. Meeting Date ~ 12 --?..I40~'" ~ This a request from the Eastlake Development Company to transfer 69 dwelling units within the Eastlake Greens project. The Eastlake Greens SPA Plan allows for the transfer of dwelling units from one residential category to another within the SPA Plan. In addition to, the SPA Plan, the clustering policy of the General Plan (Section 6.3) is also applicable to this request. The clustering policy in the General Plan limits clustered projects to a maximum of 10 du/ac on any parcel designated low Medium Residential. It is clear that the Eastlake Greens project is a "clustered" project within the low Medium land use category. because there is a mixture of open space (golf course) and higher densities scattered throughout the project. The proposed transfer of dwelling units would comply with this policy. The Eastlake Greens SPA Plan and the Eastlake II General Development Plan currently designates R-24 and R-25 as low Medium. This is proposed to be changed to Medium Residential. The Planned Community District Regulations would also change to Residential Condominium 10. Parcel R-24 is a 5-acre site located across the street from the community park at the intersection of Eastlake Parkway (4 lanes - 100' R/W) and Greensgate Drive (4 lanes - 100' RjW). The other abutting street is Greensview Drive which. is a 2-lane (68' RjW) loop street linking together the various residential neighborhoods with the Eastlake Greens project. ~ The parcel to the south of Parcel R-24 is Parcel R-14 which is planned for single-family detached development consisting of 84 homes on 11.4 acres (7.4 du/ac). Single-family homes are also being constructed on R-5 to the east. Parcel R-19 is located to the north and is planned for attached townhomes at 10.6 du/ac. All of the required public facilities and improvements (streets, utilities, etc.) have been installed to serve Parcel R-24. The community park and Phase I of the new Eastlake High School are also under construction. Parcel R-25 is located on Eastlake Parkway and Clubhouse Drive, directly to the east of the Eastlake High School Parcel. Parcel R-25 is 7.4 acres in size and is proposed to be changed from 4.5 du/ac to 10 du/ac. The corresponding amendments to the Eastlake II General Development Plan (Medium Residential) and PC District Regulations (Residential Condominium 10) are companion parts of the proposal. Parcel R-25 is bordered by a planned elementary school site (10.0 acres) to the south, the Eastlake High School to the west (49.2 acres), Parcel R-14 (single-family detached '7.4 du/ac) to the north and single-family attached (7.6 du/ac) to the east. Parcel R-25 is graded and fully improved with streets and utilities. .-.., ~J'\ 1:: ~ -.J. WHEREAS, from the facts presented to the City Council, the Council has determined that said amendment is consistent with the City of Chula Vita General Plan and that public necessity, convenience, general welfare and good zoning practice support adoption of the amendment to the EastLake II Planned Community District Regulations and Land Use District Map. The City Council of the City of Chula Vista does ordain as follows: SECTION I: That the zoning map or maps established by Section 19.18.010 of the Chula Vista Municipal Code be hereby amended by adding thereto the following amendment: That that certain property consisting of 12.4 acres located between EastLake Parkway and Greensview Drive as described on the EastLake II Land Use District Map (Parcels R-24 and R-25) Exhibit D in PCM-92-03 be, and the same is hereby zoned to the Residential Condominium 10 land use district together with the addition of the Residential Condominium 10 land use district to the EastLake II Planned Community District Regulations as set forth in Exhibit D in PCM-92-03. SECTION II: This ordinance shall take effect and be in full force on the 30th day from and after its passage and approval. Presented by a~to f rm :0 ruce M. Boogaard, ity Attorney Robert A. Leiter, Director of Planning WPC 0239p ~-2. -2- . . Page 3, Item~ ~ ~ 1. Meeting Date~~,,~/,~ Both Parcel s R-24 and R-25 have partial views of Holes 7 and 17 of the EastLake Greens golf course and are well located for medium density cluster development. Each parcel will be subject to site plan and design review by the Design Review Conmittee.The proposed medium density is compatible with the surrounding uses, both existing and proposed. The certified Environmental Impact Report for EastLake 11 General Development Plan and the EastLake Green SPA Plan (Case No. EIR-B6-4 and State Clearinghouse Number 86052803) evaluated the impacts of a much higher density for these parcels. R-24 was originally proposed for a density of 21.9 du/ac (110 du) and R-25 was originally proposed for a density of 22.0 du/ac (163 du's). During the City review of the EastLake Greens SPA Plan, the EastLake Development Company reduced the density to 4.5 du/ac for these two parcels. Therefore, the previously certified EIR cited above evaluated the impacts of densities greater than the current proposal. An addendum (Negative Declaration) to the previously certified ElR has been issued by the City's Environmental Review Coordinator for this proposed amendment stating that the proposed amendment wou1d not have a significant impact on the environment. The proposed transfer of 69 units (R-24 + 28 and R-25 + 41) from Parcels R-2 (-3), R-8 (-3), R-9 (-6), R-13 (-7), R-17 (-29) and R-19 (-21) would improve the EastLake Greens SPA Plan by providing a more balanced land use plan for these two parcels which are located within the transition zone between the EastLake Parkway Activity Corridor and the single-family neighborhoods around the golf course. Each of these parcels (R-24 and R-25) is well served (3 sides) with street access which will promote design flexibility and good site plan opportunities for a clustered project design. Each parcel will be reviewed by the Design Review Committee to ensure that on-site open space/recreational facilities are provided to qualify as clustered projects. The attached Exhibit A (prepared by EastLake Development Company) describes the number of transferred units, the affected parcels, and the reason for the 69 excess units. The attached Site Util ization Map (Exhibit A-I) shows the location of each of the affected parcels. The attached Negative Declaration was prepared on the original application filed by the EastLake Development {;ompany on August 8, 1991, which included two additional parcels (R-27 and R-28). Subsequently, the application was amended by EastLake Development Company to delete Parcels R-27 and R-28 and an addendum to the Negative Declaration was issued by the Environmental Review Coordinator declaring that Parcels R-27 and R-28 had been dropped from the proposal. The attached Negative Declaration is valid with the clarifying addendum explaining the sequence of events. Parcels R-27 and R-28 are presently undergoing further review by EastLake Development Company and staff regarding certain General Plan questions. When these questions are resolved, these parcels will be processed in accordance with normal procedures. FISCAL IMPACT: None . WPC 0244p -"'~~ ~-;S ~ THIS PAGE BlANK . , .-. ~ rl' ~.-:'1 :. , - Ie '~ao .~ Z>~ ~O/, AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING I'Jtq ;qjl, THE ZONING MAP OF EASTLAKE II PLANNED COMMUNITY "'Z) DISTRICT FOR PARCELS R-24 AND R-25 CONSISTING OF. ;qoo APPROXIMATEL Y 5.0 ACRES AND 7.4 ACRES LOCATED ~); WITHIN THE EAST LAKE GREENS SECTIONAL PLANNING IO~ AREA PLAN (PCH-92-03) ORDINANCE NO. ~t;14 WHEREAS, a duly verified application for an amendment to the EastLake II Planned Community District Zone was filed with the Planning Department of the City of Chula Vista by the EastLake Development Company on August 8, 1991, and, . WHEREAS, said application requested an amendment to the Planned Community'District Zone Regulations and Land Use District Hap to zone Parcels . R-24 and R-25 to Residential Condominium 10 and to add the Residential Condomini~m 10 land use district to the EastLake II Planned Community District Regulations, and. WHEREAS, the City Council has previously adopted PCH-87-7, General Development Plan for EastLake II, setting forth the precise land uses and plan diagram for the project, and ' WHEREAS, the Environmental Review Coordinator has examined the proposed amendment and on Harch 25, 1992, the Planning Commission certified Negative Declaration (IS-92-04) finding that said amendment will have no significant impact on the environment in compliance with Section 15070 of the State California Environmental Quality Act Guidelines; and WHEREAS, the Planning Commission held a duly advertised public hearing on said amendment on Harch 25, 1992, and at the conclusion of said hearing recommended approval of the proposed amendment by unanimous vote, and WHEREAS, the City Council set the time and place for a public hearing, together with the purpose, was given by the publication in a newspaper of general circulation in the City and its meeting to property owners within 500 feet of the exterior boundaries of the properties (R-24 and R-25) at least ten (10) days prior to the hearing, and WHEREAS, the hearing was held at the time and place as advertised, namely 4:00 p.m. on Hay 5, 1992, in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed, and WHEREAS, the Council finds that in accordance with the attached ~e9ative Declaration, IS-92-04 and the findings therein, the proposed zoning amendment will not have a significant effect on the environment, and the City Council hereby certifies that the Negative Declaration was prepared in accordance with the California Environmental Quality Act of 1970, as amended, and ~ " ...r WHEREAS, from the facts presented to the City Council, the Council has determined that said amendment is consistent with the City of Chula Vita General Plan and that public necessity, convenience, general welfare and good ~ zoning practice support adoption of the amendment to the EastLake II Planned Community District Regulations and Land Use District Map. The City Council of the City of Chula Vista does ordain as follows: SECTION I: That the zoning map or maps established by Section 19.18.010 of the. Chula Vista Municipal Code be hereby amended by adding thereto the following amendment: That that certain property consisting of 12.4 acres located between EastLake Parkway and Greensview Drive as described on the EastLake II Land Use District Map (Parcels R-24 and R-25) Exhibit D in PCM-92-03 be, and the same is hereby zoned to the Residential Condominium 10 land use district together with the addition of the Residential Condominium 10 land use district to the EastLake II Planned Community District Regulations as set forth in Exhibit D in PCM-92-03. SECTION II: This ordinance shall take effect and be in full force on the 30th day from and after its passage and approval. Presented by :0 Robert A. Leiter, Director of Planning -" WPC 0239p ~ -2- ~ \,'\t I"'; , COUNCIL AGENDA STATEMENT ITEM 7 ITEM TITLE: .757t. Ordinance - Adopting the Edition and the Appendix MEETING DATE OS/26/92 Uniform Fire Code, 1991 and Standards Thereto SUBMITTED BY: Fire Chief ~,JL- Manager..)b ~@1 REVIEWED BY: City At their meeting of May 11, 1992, the Board of Appeals and Advisors recommended adoption of the Uniform Fire Code, 1991 Edition and the Appendix and Standards, which would replace the 1988 Uniform Fire Code, adopted by Council action on 11/15/89. From the facts presented to the Board of Appeals and Advisors, the Board finds that public necessity, safety, convenience and general welfare require that the Uni form Fire Code, 1991 Edition, be adopted by the City Council as the ordinance regulating fire and life safety in the City. RECOMMENDATIONS: Uniform Fire Code in the City. That Council adopt the 1991 Edition of the as the ordinance regulating fire and life safety BOARD OF APPEALS AND ADVISORS RECOMMENDATION: adoption. Recommends DISCUSSION: The 1991 Edition of the Uniform Fire Code shows improvement over the 1988 Edition. Language and clarificatidn have been stressed. Three major amendments have been added. They deal with overspill containment on flammable liquid tanks, permitting certain above ground flammable liquid tanks and regulating storage of empty wooden or plastic pallets. These changes are reflected in Sections 15.36.120, 15.36.130 & 15.36.150. Additional editorial changes have been made for ease of reading by the general public. Other proposed amendments are those that have been approved by City Council over the past seven years. FISCAL IMPACT: None 7-1 /7-1. XNTERDEPARTMENTAL CORRESPONDENCE DATE: May 26, 1992 FROM: Honorable Mayor and City Council John D. GOSS, City Manage~ . t /1.. t f' Lyman Chr~s opher, D~rec or 0 F~nance TO: VXA: SUBJECT: XTEM 8 - CONFXDENTXALXTY AGREEMENT WXTH LAXDLAW WASTE SYSTEMS staff are requesting that the above item on tonight's agenda be pulled so that staff can do some further research and reschedule the item for next week, June 2. LC/eb 8-/ COUNCIL AGENDA STATEMENT ITEM TITlE: Item-L Meeting Date 5/26/92 Resolution 1'/':1'1 Authorizing the purchase of two Police Patrol Sedans via a cooperative bid Director of Finance ~ City Managerjb. ~@1 (4/5ths Vote: Yes___No-X-) SUBMITTED BY: REVIEWED BY: Two Police patrol sedans were damaged beyond repair and need to be replaced. Municipal Code Section 2.56.270 authorizes the City to participate in a cooperative bid with other governmental agencies. The City is able to participate in the County of San Bernardino Bid No. W-42 for this purchase. RECOMMENDATION: That Council authorize the purchase from Mill's Ford. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Two Police patrol sedans were wrecked on October 23, 1991 when involved in a chase. Both vehicles were damaged beyond repair and declared a total loss. One patrol car was involved in a collision with a private party and the insurance carrier for that vehicle reimbursed the City $16,617.50 for the vehicle. The other patrol car was not involved with a vehicle and the Equipment Maintenance Division has decided to cannibal ize the sedan and use the parts to repair the patrol sedans in service where possible. Mi 11 s Ford, Anaheim, Cal iforni a, has been awarded the San Bernardi no County contract for Sheriff patrol sedans at a base price of $11,930.15 each for the 1992 Ford Crown Victoria, which is the make preferred by the Chula Vista Pol ice Department. With the addition of power seats, power door locks and anti-lock brake systems required by Chula Vista Police Department, the unit cost is $12,959.15 each. The Police Department has reviewed the specifications and finds them acceptable for their operation. FISCAL IMPACT: Sufficient funds are provided for in the Emergency Equipment Replacement fund for the purchase of the two sedans. The total cost is $27,926.97 (including sales tax) with $16,617.50 of the funding being derived from the above mentioned insurance proceeds. WPC 0310U 9-1 RESOLUTION NO. J"~:JtJ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF TWO POLICE PATROL SEDANS VIA A COOPERATIVE BID WHEREAS, two Police patrol sedans were damaged beyond repair and need to be replaced; and WHEREAS, Chula vista Municipal Code section 2.56.270 authorizes the city to participate in a cooperative bid with other governmental agencies; and WHEREAS, Mills Ford, Anaheim, California has been awarded the San Bernardino county contract for Sheriff patrol sedans at a base price of $11,930.15 each for the 1992 Ford Crown victoria, which is the make preferred by he Chula vista Police Department; and WHEREAS, with the addition of power seats, power door locks and anti-lock brake system required by the Chula vista Police Department, the unit cost is $12,959.15 each; and WHEREAS, the Police Department has reviewed the specifications and finds them acceptable for their operation; and WHEREAS, sufficient funds are provided for in the Emergency Equipment Replacement Fund for the purchase of the two sedans. NOW, THEREFORE, BE IT RESOLVED that the City Council of the city of Chula vista does hereby authorize the purchase of two Police Patrol Sedans via the County of San Bernardino Bid No. W-42 for a total cost of $27,926.97. Lyman Christopher, Director of Finance .:!Jlto Bruce M. Attorney Presented by C:\rs\patrol sedans 9... 3 COUNCIL AGENDA STATEMENT ITEM TITI.E: Item I III Meeting Date sru;m Resolution Itt ~proving American Golf Corporation's Request to Sublease the Golf Course Restaurant and Bar to Prestige Hospitality Services SUBMITTED BY: Director of Parks and Recreatio~ REVIEWED BY: City Manager.,J(; ~,@1 (4/Stbs Vote: Yes_No X) American Golf Corporation (AGC) has requested permission to sublease the Golf Course Restaurant and Bar operation to Mr. Chris Campion, President, Prestige Hospitality Services Company (PHS); in accordance with paragraph #17, Assignment/Subleases, of the Agreement between AGC and the City of Chula Vista for the operation of the Golf Course Restaurant and Bar facility. RECOMMENDATION: That the City Council approve the request of AGe to sublease the restaurant and bar operation to Prestige Hospitality Services. BOARDS/COMMISSIONS RECOMMENDATION: At its April 16, 1992 meeting the Parks and Recreation Commission voted 4-1 to approve the proposed sublease. Commissioner Roland voted in opposition and Commissioners Carpenter and Willett were not in attendance. Draft minutes of this meeting are attached hereto. BACKGROUND: American Golf Corporation entered into an agreement with the City to operate and maintain the Chula Vista Municipal Golf Course on November I, 1984. On April 27, 1985, American Golf signed an interim agreement to operate the restaurant and bar facility when the previous operator defaulted on their lease agreement. The interim agreement was for ninety (90) days and at the conclusion of this period, the lease ran on a month-by-month basis. A long term agreement was negotiated and approved by the Council on July 10, 1986. The long term agreement provided for an initial ten (10) year term, followed by two additional ten (10) year options. In conjunction with the long term agreement, the Golf Course Lease Agreement was amended to coincide with the restaurant and bar facility's thirty (30) year agreement (Attachment A). DISCUSSION: The operation of the restaurant and bar facility by American Golf never developed to the level of a successful business venture. Despite several management changes and marketing promotions, the amount of walk-in patrons to support a full operation restaurant never materialized. The overhead costs required to operate the walk-in restaurant was a financial burden on American Golf. These losses were underwritten by the bar receipts and the catering and banquet services. In August 1991, a full service restaurant was curtailed. American Golf has continued to provide limited service in the Golfer's Lounge, bar service and the full service banquet business. Prestige Hospitality Services contacted American Golf and expressed interest in assuming the operation of the restaurant and bar facility, plus operate a catering service with specialty promotions to attract clientele. Prestige has operated the Officer's Club at the Coronado Air Station for the last five years. A detail pro forma plan was submitted to American Golf, outlining their proposed operation (Attachment B). lI.r $4,,~~e6 [lImergolf] 1 /d'! Item / VI Meeting Date 5f26fCJ2 Prestige's program includes an aggressive marketing plan to attract new patrons for banquet, conferences and special "a la carte" events, open to the general public. Special events planned include Friday Night Big Band Dinners, dances, and Sunday Champagne Jazz brunches. In addition, Prestige would continue the operation of the existing services for the golfer and the general public in the Golfer's Lounge, Fairway Room and Snack Bar. Kevin Roberts, American Golfs Senior Vice President of Operations reviewed the operating plan and recommended to the American Golf Corporate Board of Directors an acceptance of Prestige Hospitality Services' proposal. American Golf approved the proposal and negotiated a sublease agreement with Prestige Hospitality, Inc. (Attachment "C"). The highlights of the Sublease Agreement are: a. Section 7 - Term PHS will assume the remaining term of AGC's first ten (10) year period which ends on June 30, 1996. PHS will have the option to sublease for two additional ten (10) years. Language has been included in this section which protects the City from any relocation, indemnification cost in case the City invokes an early termination of the lease agreement with AGC to develop the property for other purposes. b. Section 8 - Rent PHS is obligated to the same rental terms of the original lease, with the minimum monthly rent adjusted periodically as called for in the original agreement. Payment will be made to AGC, who in turn is responsible for minimum payments percentage of monthly gross sales to the City. c. Section 12 - Maintenance and Reoairs PHS will be responsible to maintain premises and personal property used in good working order and repair. d. Section 17 - Staff PHS will consider the employment and placement of existing AGC twenty- seven (27) employees. e. Section 26 - Caoital Imorovements PHS has a proposed Capital Improvement list. Prior approval of projects must be obtained from AGC and the City (Attachment "D"). Community Development and the City Attorney's office have reviewed the sublease agreement and concur with the specific language necessary to protect the City from any liability, relocation costs or goodwill value benefits upon early termination. NOTE: As this item has already gone to print, additional language has been added to the sublease agreement and will be explained at the Council meeting (See attached memorandum from the City Attorney to American Golf, dated May 22, 1992). FISCAL IMPACT: None. American Golf will continue to be obligated to pay the minimum rental rate or a percentage of gross sales whichever is greater as per current contract. [amergolf] 2 //J..2. From the Office of the city Attorney city of Chula vista Memorandum From: May 22, 1992 Bruce M. Boogaard, City Attorney voice Phone: 691-5037 Telecopier: 691-5214 To: Donna Tanaka, Paralegal, American Golf 1633 26th street Santa Monica, CA 90404 Voice Phone: 310 315 4200, Ext 356 Date: cc: Jess Valenzuels chris Salomone Cheryl Dye Via: (X ) Telecopier, No. 310 829 5186 Confirm at: ( ) Voice Phone or ( ) Mail ( ) Inter Office Mail Re: Prestige Sublease Please consider the following comments and alternative language for section 7 of your sublease with Prestige. I consider the comments in the footnotes to be for your benefit, but the markings to the text would be for both American Golf's and the city's benefit and are accordingly more important to us: " 7. Term. The term of this Sublease ("Term") shall commence on the Effective Date. Unless otherwise extended or terminated earlier as provided below or pursuant to the Lease, the Sublease Term shall end June 30, 1996. (a) Pursuant to the terms of section 4(A) of the Lease, Lessee has the option to extend the term of the Lease for two periods of ten years each (the "option" or collective- ly, the "options"). The parties acknowledge and understandV that these "options" pass through unencumbered to the benefit 1. "Acknowledging and understanding-II is not a promise to act. amgolf3.wp May 22, 1992 Proposed Revisions in Sublease Page 1 /p..j of sublessee provided that Sublessee is not in breach or default of this Sublease or the underlying LeaseY and provided that Sublessor intends~ to exercise its option under the Lease.Y It is acknowledged that Lessee must give Lessor notice of its intention to exercise the option no later than 180 days prior to the expiration of the Lease term then in effect. Therefore, Sublessee must deliver its written notice to Sublessor no later than 210 days prior to the expiration of the Term of this Sublease then in effect of Sublessee's desire to extend the sublease Term for the option period, and in such event Sublessor agrees to exercise or not to exercise the Option without delay.~ Nothing contained in 2. As of what time? Ever? Time of exercise? 3. "Intends" is a state of mind which may be difficult to prove. It is ambiguous as to when the state of mind must occur. 4. This sentence may introduce an ambiguity because it appears to give the right of the sublessee to the option periods at the beginning of the sentence, but at the end of the sentence, makes it totally discretionary with the sublessor. Language which I think may eliminate some of the ambiguity would be as follows: "On the condition that Sublessor exercises either or both of the options, a decision which is within the sole and unfet- tered discretion of Sublessor and which he is not bound to the Sublessee to make in Sublessee I s favor by any express or implicit terms of this Agreement, and Sublessee is not in breach or default of the Sublease at the time of exercise, the term of this Sublease shall be extended by the same period of time that the Lease is extended." However, this is their call, and not a matter of substantial concern to the city. 5. By this sentence, I think the parties mean to say: On the condition that TheFefeFe,Sublessee ~ deliverg ~ written notice to Sublessor no later than 210 days prior to the expiration of the Term of this Sublease then in effect of Sublessee I s desire te el[tefla that the e~ublease Term " extended for the entire term of the next relevant option period, afla ifl sash eyefltSublessor agrees to consider ex- tendina the term of the Sublease by the extension of the term of the Lease. and to make a decision within 30 days. in its sole and unfettered discretion and as to which the Sublessor owes no duty to Sublessee exoresslY or imolicitlv. as to (continued. . .) amgolf3.wp May 22, 1992 proposed Revisions in Sublease page 2 /J1..y this section shall ~ construeg to require Sublessor to pass through the options unencumbered to Sublessee for anv reason whatsoever. and especiallv if Sublessee is in default or breach of any of its obligations under the Sublease or the Lease. Subject to arbitration,~ Sublessor shall be the sole judge of what constitutes a breach or a default. In the event that sublessee is in breach or default, Sublessor may still elect to exercise its option, and such exercise shall not waive sublessee's breach or default or any rights or remedies of Sublessor under the Sublease or the underlying Lease. In the event that Sublessor does not exercise its option with the City under the Lease: (1) Sublessor shall have no liability to Sublessee whatsoever; and (2) nothing in this section shall be construed to prohibit Sublessee from entering negotiations directly with the City for a new Lease for the Premises. (b) If Sublessor has not received from Sublessee written notice of Sublessee's desire to extend the Sublease Term in accordance with Section 7(a) above, then the Sublease Term shall be deemed terminated effective June 30, 1996. (c) The parties acknowledge and understand that Section 21 B of the Lease provides that city has the right to cause an early termination of the Lease in the event the Premises are required for construction of public streets or drainage facilities for the Sweetwater River Flood Plain. In the event of such early termination Sublessor agrees to give Sublessee the same six (6) months written notice city is required to give Sublessor under Section 21B of the Lease. (d) The parties acknowledge and understand that city is presently negotiating with third parties (including Sublessor) for redevelopment of the Premises or propertv in the vicinitv of the Premises, as a hotel/convention center/ golf complex ("Project") and if that proiect fails. that the citv will. in 5. (...continued) whether the Sublessor will or will not exercise er Ret te ellereise the Option l;ithelit aelay. If Lessee extends the term of the Lease. unless the parties aaree in writina to the contrarv. the term of this Sublease shall be extended for the term the Lease is extended bv the exercise of the option. and Sublessee aarees to abide bv the terms of this Sublease throuahout the extended term of the Lease. 6. If the decision to exercise the Option is solely discretionary with the Sublessor, why would the decision, if based on the breach or default status of the SUblessee, need to be subject to arbitra- tion? amgolf3.wp May 22, 1992 proposed Revisions in Sublease Page 3 I~.,f . all liklihood. neaotiate with third oarties (includina Sublessorl for some other develooment of the Premises or the orooertv in the vicinity of the Premises. On the condition th~t city reaches an aareement ("Citv Develooemnt Aareement"l for the redevelooment of the Premises or the orooertv in the immediate vicinity of the Premises. either for the Pro;ect or for some other develooment. this Sublease shall automaticallY terminate bv the orovisions of this Section orior to the exoiration of the normal Term. or any extension thereof. 180 days after Sublessee receives written notice from either the Sublessor or city. or its Redevelooment Aaencv. that such city Develooment Aareement for develooment has been reached. and that this section's automatic termination orovisions become ooerational. Euseeq~eR~ ~e early ~e~iRa~ieR He~ifiea~ieft, Sublessee hereby waives any objection, claim. cause of action. entitlement or oermit that Sublessee may have ~ aaainst the City or its Redevelopment Agency proceeding with and imple- menting the Project or other develooment. SoecificallY. Sublessee... and any successor to Sublessee I s interest under this Sublease... hereby waive~ any claim against city or its Redevelopment Agency for any relocation benefits under the California relocation laws or under similar local, state, or federal laws, and any claim for goodwill value of their business in any eminent domain proceeding or other proceed- ings, and any right which they may have to participate in the Project. The paL'tiee aeltRS\;lcaEJe aRS1:lHaerst.aRs t.ha~ Rst?,:ith at.aREliREJ ~Re Term af t.his ~aslcase as pra~iEieel in ~hi5 Eeet.ieR 7, iR t.he eveRt. cit.y BY it.51 RcElevelepmcRt ^geRSY preeeeEis \lith the Prejeet, theft thia Caeleaoe shall se ~ermiRat.ed effeet.ive JQ days prier te the eemmeRsemcRt. af eSRstraet.ieR vit.a respeet ~e ~Re Prejee~. In the event of any early termination of this Sublease pursuant to subparagraph (c) or subparagraph (d) of this Section 7, Sublessee shall have no rights or remedies as against city or sublessor including any right to recover damages, losses, costs, or other compensation as a result of such early termination. The riahts and orivileaes of this Aareement run to. and are for the benefit of. both the Subles- sor and the Lessor. city. and its Redevelooment Aaency. Thus the city and its Redevelopment Aaencv shall be considered as Third Party Beneficiaries of the orovisions of this Aaree- ment." Please call if you have any questions. If it is acceptable, we will place the changes before the Council on Tuesday Night. amgolf3.wp May 22, 1992 Proposed Revisions in Sublease Page 4 Ill'" / /()...BtJ i;' -;- , " " Attachment A 7/16(86 ., I. '1 LEASE AGREEMENT WITH AMERICAN GOLF CORPORATION, A CALIFORNIA CORPORATION, AND THE CITY OF CHULA VISTA FOR THE MAINTENANCE AND OPERATION OF THE RESTAURANT AND BAR PREMISES AT THE CHULA VISTA MUNICIPAL GOLF COURSE THIS AGREEMENT, made and entered into this 1st day of July , 1986, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "Lessor", and AMERICAN GOLF CORPORATION, a California corporation, her.einafter called "Lessee"; W.!.Tl!ESe~THl. WHEREAS, the City of Chula Vista entered into an interim lease agreement with American Golf Corporation on April 27, 1985 for the operation and maintenance of the restaurant facility located at the Chula Vista Municipal Golf Course, and WHEREAS, the City of Chula Vista sought and received proposals from qualified operators for a long term lease of the restaurant facility, and ( WHEREAS, the City of Chula Vista reviewed three proposals and determined that American Golf Corporation I s proposal was the most beneficial for the City, and WHEREAS, the City Council desires to maintain the operation of the restaurant and bar in an efficient and profitable manner for the benefit of the City's residents, and WHEREAS, this Agreement supercedes the Interim Agreement of April 27, 1985 and memorializes the entire Agreement between the parties relating to the operation of the restaurant and bar. NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED by and between the parties hereto as follows: 1. LEASE PREMISES. For and in consideration of the rent hereinafter specified and all of the covenants, conditions and agreements hereinafter set forth, Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor (hereinafter the premises described below and as set forth on Exhibit "A" attached hereto, including any appurtenances thereto, shall be referred to as the "Leased Premises"): A. Those certain premises which include a restaurant, bar, golfer's lounge and banquet facilities. -1- J 2-JD / ';:::>59.3' I JI- ? " B. The Leased Premises also include a parking lot, the undivided use of which is shared with the golf professionals' shop and the golf course, the grounds immediately adjacent to the building, and all furniture, fixtures, equipment, smallware and paperware located in and on the portion of the building demised herein. ( C. 2he Le~sed Premises shall include, upon approval of ~const"ruction 'plans by the Lessor, those portions of the golf ~course necessary for the modification of the parking as generally ishown in Exhibit B, attached hereto. Said Exhibit may from time to time be amended by the mutual consent of the parties. 2. USE AND HOURS. Lessee shall use the Leased Premises for the operation of a restaurant, bar and banquet facility: and for no other purpose. The parties specifically agree that none of the uses contained in Section 19.58.024 of the Chula Vista Municipal Code, as that section exists on the date this Lease is entered, a copy of which is attached hereto and incorporated herein as Exhibit "A", shall be permitted on the premises. Lessee shall keep the restaurant and bar open for business during ,"the customary hours of similar operation, but shall not remain open beyond the hours permitted by State law. Lessee shall not do, bring, or keep anything in or about the Leased Premises that will cause a cancellation of any insurance covering the Leased Premises, or violate any law or ordinance concerning the condition, use or occupancy of the Leased Premises. 3. FIXTURES AND IMPROVEMENTS. A. The Leased Premises include all of the fixtures necessary for the successful operation of a restaurant and bar facility. Said fixtures, as more particularly described in ',attached Exhibit C, are the property of Lessor and shall remain "the property of the Lessor upon termination of this lease and any < extensions. If any of the fixtures described in Exhibit C are in need of replacement or upgrading, Lessee shall, at Lessee's sole cost, replace the item{sl with new identical or SUbstantially similar fixtures. Lessee acknowledges that this obligation to replace fixtures includes upgrades of equipment that may be necessary over the term of this Lease and the extended terms. Said replacement or upgrades shall be the property of Lessor upon termination of this lease and any extensions. Lessee understands that the intent of this section is for Lessor to have all the fixtures necessary for the successful operation of a restaurant and bar facility upon vacation of the Leased Premises by Lessee without additional cost to Lessor. The fixtures described in this subsection may not be used as security or collateral for any debt or prospective debt of Lessee. / -2- ~~.J - ) / /d51..3 I()...~ . " " . .' B. Lessee's machines, equipment, trade fixtures and other installations of the type commonly installed in and removed by tenants from improvements, not specified in subsection A, which are installed by Lessee in or on the Leased Premises shall not be deemed to be part of the realty even though. they are at tached to the floor, walls or roof of the building (s) or to outside pavements, so long as they can be removed without structural damage to said improvements and provided that if such removal, at Lessee's option, of any such installation results in nonstructural damage to any partes) of the building(s), pavement or premises, Lessee shall repair such damage and restore said damaged parte s) of said building( s), pavement or premises to as good a condition as the same were in at the commencement of this Lease, reasonable wear and tear excepted. 4. TERM OF LEASE. ( A. The term of this lease shall be for a period of ten (10) years commencing July 1, 1986 . If Lessee complies with its lease obligations and responsibilities, Lessee will have the option to extend the term ,of this lease, at the conclusion of the initial ten year term, for two (2) additional ten (10) year terms. Said extensions will be at the rental rate specified by section 5. The total term of the lease and the two optional ,extensions shall not exceed thirty (30) years. '.l'he right to exercise these options is dependent upon Lessee not being in default on the date the option periods are to commence and Lessee must give Lessor written notice of its intention to exercise such options not less than one hundred eighty (180) days prior to the end of the lessee term then in effect. B. Notwithstanding any provision to the contrary, Lessee may, during the initial three. years, provide 180 day written notice to Lessor of its intent to terminate the' Lease. .Said termination is at the sole discretion of Lessee. Lessee's rights pursuant to this subsection shall be extinguished on ' June 30, 1989 5. RENTAL PAYMENTS. A. Lessee agrees to pay to Lessor as monthly rental for the Leased Premises, without setoff, an amount equal to the sum of the fOllowing: (l) A sum equal to six percent (6%) of the monthly gross sales until the point in time during the lease year when total gross sales derived from the operation of the Leased Premises totals five hundred thousand dollars ($500,000), and ( \ -3- III' 9 ,);2 ~3c2 /';;;;S'i.3 .',' I '0, .' . (2) A sum equal to seven percent (7%) of the gross sales in excess of five bundred thousand dollars ($500,000), but less than one million dollars ($1,000,000) derived from the annual operation of the Leased Premises, and (3) A sum equal to nine percent (9%) of the gross sales in excess of one million dollars ($1,000,000) derived from the annual operation of the Leased Premises. Lessee shall submit to Lessor a statement of gross sales each month indicating the gross sales made in the Leased Premises during the preceding calendar month and the total gross sales accumulated for the lease year to date. When the accumulated total gross sales for the lease year to date reaches $500,000, the seven percent (7%) of gross sales shall become effective and when the accumulated total gross sales for the lease year to date reaches $1,000,000, the nine percent (9%) of gross sales shall become effective for the purpose of computing the monthly rental payment. All sums due shall be delinquent on the fifteenth day of each month and subject thereafter to a penalty of two percent (2%) each month or fraction of each month, if unpaid. Penal ty amount is compensation for additional accounting and administrative costs which will be incurred by Lessor. ( B. commencing July 1, 1989 ,. the monthly rental payment shall be the greater of Subsection A or the established minimum monthly rent. (1) The minimum monthly rent beginning July 1, 1989 , shall be determined by increasing the sum of $4,000 by the percentage increase in the San Diego Area Consumer Price Index (CPI) for All Urban Consumers as compiled by the U.S. Department of Labor, Bureau of Labor Statistics for the latest twenty-four (24) month per iod for which statistics are available. In no event shall the amount of increase exceed an average of 6% per year. Sa id minimum monthly rent shall be in effect for all monthly rent payments throughout the subsequent three lease years. (2) Commencing July 1, 1992 and every three 'years thereafter, the minimum monthly rent shall be adjusted by increasing the previously established minimum monthly rent by the same proportion of increase in the CPI for the latest thirty-six (36) month period for which statistics are available. The parties agree that the proportional increase shall not exceed an average of 6% per year. The minimum monthly rent established by this procedure shall remain in effect for the subsequent three years. -4- ItJ~/P ~~rY3 /,;2 5'1'3 . . .. " c. "Gross Sales Defined". The term "gross sales" as used in this lease shall include the entire gross sales of every kind and nature from sales and services made in the Leased Premises whether for credit or cash, in every department operating in the Leased premises, whether by Lessee or by others, including all sales from vending dev ices and payments from pay telephone. "Gross sales" shall not include any rebates or refunds to customers or sales taxes accounted for and paid to a governmental agency. ( D. Statement of Gross Sales. Within fifteen (15) days after the end of each calendar month of the term hereof, commencing with the fifteenth day of the month following the commencement of this lease agreement as hereinafter provided, and ending with the fifteenth day of the month next succeeding in the last month of the term of this lease agreement, Lessee shall furnish to Lessor a statement in writing, certified by Lessee to be cor rect, Showing the total gross sales made in the Leased Premises dur ing the preceding calendar month. Lessee shall keep (a) full and accurate books of account and records in accordance with Generally Accepted Accounting principals consistently applied, including, without limitation, a sales journal, general ledger, and all bank account statements showing deposits of gross sales revenue, (b) all cash register receipts with regard to the gross sales, credits, refunds and other pertinent transactions made f rom or upon the Leased Premises and (c) detailed or iginal records of any exclusions or deductions from gross sales. Such books, receipts and records shall be kept for a period of two (2) years after the close of each calendar year and shall be available for inspection and audit by Lessor and its representatives at the Leased Premises at all times during regular business hours. In addi tion, upon request of Lessor, Lessee agrees to furnish to Lessor a copy of Lessee 's state and local sales and use tax returns. The receipt by Lessor of any statement or any payment of rental under this Lease, for any period, shall not bind it as to the correctness of this statement or the payment. The Lessor shall, within two (2) years after the receipt of any such statements, be entitled to an audit of such gross sales. Such audit shall be conducted by Lessor or by certified public accountant to be designated by Lessor during normal business hours at the principal place of business of Lessee. If it shall be determined as a result of such audit that there has been a deficiency in the payment of any such rental, then such def iciency shall become immediately due and payable with interest at the maximum lawful rate from the date when said payment should have been made. In addi tion, if any of Lessee I s statements shall be found tp have understated gross sales by more than two percent (2%) and if Lessor is entitled to any additional rental as a result of any said understatement, or if such audit ( -5- l/l~/ / ~0c2 -3 i / .:?5'13 ( ( " shows that Lessee has failed to maintain the books of account and records required by this section so . that Lessor is unable to verify the accuracy of Lessee's statement, then Lessee shall pay to Lessor all reasonable costs and expenses (including reasonable auditor and attorney fees) which may be incurred by Lessor in conducting such audit and cOllecting such underpayment, if any. 6. TAXES. During the term of this lease agreement, Lessee shall pay, prior to delinquency, all taxes assessed against all personal property of Lessee contained within the Leased Premises. Lessee shall be solely responsible for all real property taxes and general and special assessments levied against the Leased Premises. Lessee shall be responsible for any possessory interest taxes if applicable. Lessee agrees to pay all taxes not later than ten (10) days before the taxing authority delinquency date. 7. PARKING AND COMMON FACILITIES. A. Lessee agrees to furnish adequate parking facilities for the needs of the patrons of Lessee arising out of the operation of the Leased Premises dur ing the full term of this lease agreement or any extension thereof. Lessee shall be jointly responsible with the operator of the Municipal Golf Course for the repair and maintenance of the parking lot ,including lighting and light{ng standards in said parking lot and ,adjacent entryway and shall assume its share of the maintenance. Lessee agrees to maintain adequate security on the Leased Premises and Lessor has no responsibility with respect to the safety and secur i ty of users of the Leased Premises and that Lessee specifically indemnifies, holds harmless and will defend Lessors against any claims relating to the security issue. B. In addition to the obligations and responsibilities specified in Subsection A, Lessee shall be responsible for any modifications to the building located on the Leased Premises. 8. ALTERATIONS/MODIFICATIONS. lLessee shall not make, ~or suffer to be made, any alterations to the Leased Premises that affect the exter ior or inter ior of the Leased Premises of any 1 structural, mechanical or electrical component of the facil i ty 'and appurtenances without the prior written consent of City which "shall not be unreasonably wi thheld. Said alterations or modifications shall inClude, but not be limited to: landscaping, signs, parking, structural additions and antennas of any type. ,-6- III ,)-1. c2J-35" /SJ"; 9.3 " ,\ 9. LESSEE'S RESPONSIBILITY TO PROTECT LESSOR FROM MECHANIC'S LIENS. Lessee agrees: (l) to pay for all labor and services performed for, and for all materials used by and furnished to, Lessee or any contractor employed by Lessee with respect to the premises, whether or not such labor, service, or materials were related to trade fixtures or other 'works of improvement: (2) to indemnify and hold Lessor and the premises harmless and free from liabilities, liens, claims, encumbrances, and judgments created or suffered by' reason thereof. In the event that any claim of lien be filed against the premises, or any action affecting the title to such property be commenced, Lessee shall forthwith give the Lessor written notice thereof. Nothing herein shall prevent Lessee from contesting in good faith the validity of any lien, claim, encumbrance, or judgment, provided, in the case of mechanics' or material men's liens, Lessee obtains and records appropriate bonds as provided by law to remove the recorded liens created thereby. 10. MAINTENANCE OF PREMISES. ( A. Lessee agrees to assume full and complete responsibili ty to maintain the Leased Premises in first class :Condition. Responsibility to maintain in first class condition shall include, but not be limited to the fixtures and their replacements specified in attached Exhibit "C": the maintenance of all air conditioning units, including the necessary replacement thereof: and the maintenance of all drainage, waste and vent pipes inside of the building. Lessee shall promptly and diligently l"epair, restore, alter, add to, remove, and replace, as required, all fixtures, improvements and landscaping of Leased premises. Any repair, restoration, alteration, addition, removal, maintenance, replacement and other act of compliance under this section (hereafter collectively referred to as "Restoration") shall be completed by Lessee whether or not funds are available from insurance proceeds. The Restoration shall repair or restore to the condition existing immediately prior to the date of the damage or destruction. B. First Class Condition Defined. ,--condition and repair", means Restoration which is ~. keep the Leased Premises, including landscaping, \improvements,. in efficient and ~ttra.c:tive. condition,' 11. INSURANCE. During the term of this lease or any extension thereof, Lessee shall obtain liability, fire and worker's compensation insurance coverages from responsible and solvent corporations author ized to issue such pol icies in California with a financial rating of at least a B+ XIII status as rated in the most recent edition of Best's Insurance Reports. Not more frequently than every 3 years, if, in the opinion "First class necessary to fixtures and ( -7- :2~ ':5 b , ~ ,-..-..., 1_/ :.;rl"';;' /~-/;; '.. ,".. of Lessor, the amount of public liability, property damage, products liability or liquor liability coverages at that time appears inadequate, then Lessee shall increase the insurance coverage as required by Lessor. Provided however, if Lessee, for whatever reason, disagrees with Lessor's increased insurance coverage requirements, then the parties shall each appoint a representative to a three member panel which shall determine the adequacy of the coverage. The third member of the panel shall be chosen by the representatives appointed by the parties. In the event the two representatives are unable to agree on a third member within thirty (30) days, the Lessor may appoint the third member. The decision of the three member panel as to the adequacy of the insurance shall be binding on the parties. A. Liability Coverage. Liability coverage shall be provided that protects the parties to this lease against loss or liability by law for injury to or death of any person or damage to property arising from the use of the Leased Premises in the following amounts: ( At least TV/O HUNDRED FIFTY THOUSAND DOLLARS ($250,000) property damage; ONE MILLION DOLLARS ($1,000,000) for injury or death to anyone person in anyone accident; and a single limit liability policy of FIVE MILLION DOLLARS ($5,000,000) per occurrence. Such policy shall include "products" liability and liquor liability coverage. B. Fire and extended covel'age, in a form at least as broad as the standard insurance services office special extended coverage endorsement, covering all improvements or additions made by Lessee on the demised premises, such insurance to be in an amount equal to ninety percent (90%) of replacement value of all such improvements with the policy or policies containing a loss payable endorsement (s) in favor of the parties hereto as their respective interests may appear. "Full replacement value" shall be determined by Lessor at the time said improvements are ini tially insured and shall be redetermined annually thereafter throughout the term of this Lease. Said redeterminations of full replacement value shall be based upon the annual percentage increase, if any, in the Consumer Pr ice Index as specif ied in Section 5. In the event such index is not then in existence, the adjustment shall be made on the basis of such other comparable, generally accepted index as may then be available, the selection of which is mutually acceptable to Lessor and Lessee. It shall be Lessor's responsibility to obtain said redeterminations. Lessee shall be promptly notified of the results of said redetermination and Lessee shall immediately thereafter adjust the amount of the insurance coverage to correspond with each redetermination of full replacement value. Said policy or ( -8- , /#.Ir c1;2- 37 / ,;;;sQ3 . " policies shall be procured, filed with the Lessor and approved by the Lessor and shall provide therein that the same shall not be subject to cancellation except after delivery of written notice by reg istered mail to the Ci ty Attorney of the city of Chula Vista at least thirty (30) days prior to the effective date of any such cancellation. A certificate or certificate.s evidencing the issuance of such policy or policies, showing the inclusive dates of coverage, bearing an original' signature(s) of an authorized representative of the respective carrier or carriers and containing thereon the above thirty day notice provision, shall be filed with the Clerk of the City Council. C. Worker's Compensation. Lessee policy of Worker's Compensation Insurance employees and shall provide Social Security employees. shall maintain a to cover Lessee's coverage for such D. Insurance Certificates Filed with City Clerk. Lessee shall file the above named policies or certificates thereof with the City Clerk of the City of Chula vista. The Risk Manager may, at any time, require Lessee to replace any such policy or certificate with another policy or certificate. All policies shall list the City of Chula Vista as an additional insured and all policies shall provide for thirty (30) days notice in writing to the Lessor in advance of cancellation, lapse or .reduction in coverage. ( E. self-insured obligated to Lessee Self-Insurance. Lessee represents that it for vandalism and malicious mischief and shall pay all costs associated with necessary repairs. is be 12. Hold' Harmless. Lessee shall hold the Lessor harmless from all damagea arising out of any damage or liability of any kind for any injury to or death of persons, or for any damage to property occurring in, on or about the Leased premises except that Lessee shall not be liable for any damage, liability, injury or death occasioned by the active negligence or wilful act of Lessor or its designated agents, servants, or employees, unless covered by insurance Lessee is required to provide.. Lessee's Obligations under this section to indemnify and hold Lessor harmless shall be limited to the sum that exceeds the amount of insurance proceeds, if any, received by Lessor. 13. Mutual Waiver of Subrogation Rights. Lessor and Lessee hereby waive any rights each may have against the other on account of any loss or damage occasioned to Lessor or Lessee, as the case may be, to their respective property, the Leased Premises, its contents arising from or connected to any risk insured against under any insurance policies carried by the parties and in force at the time of any such loss or damage; and. ( -9- >>-;Jgr' /;;/5'1':' )ttJ.../f . ~ r the parties each, on behalf of their respective insurance companies 1nsuring the property of -either Lessor or Lessee against any such loss, waive any right of subrogation that either may have against the other, as the case may be. Each party shall cause each insurance policy obtained by it to provide that the insurance company waives all rights of recovery by way of subrogation against ei ther party in connection wi th any damage covered by any policy. 14. DAMAGE TO OR DESTRUCTION OF IMPROVEMENTS. ( A. If, dur ing the term of the Lease, Lessee 's improvements on the demised premises are partially or totally destroyed from a risk covered by the insurance described in Section 11 herein, Lessee shall restore the premises to substantially the same condition as they were in immediately before destruction; provided, however, that Lessee shall not be required to expend for such restoration an amount greater - than the insurance proceeds it recovers as a result of such partial or total destruction. Lessee shall be responsible for the rental payment during any period when business is interrupted. B. Lessee shall be obligated and responsible for the repair and reconstruction of the Leased Premises. Said obligation shall include, but not be limited to destruction of the premises due to flood, earthquake or other calamities. Lessee expressly assumes the risk of "Acts of God". Lessee waives the provisions of Civil Code S1932(2) and Civil Code 51933(4) with respect to any destruction of the Leased Premises. 15. UTILITIES. Lessee shall pay before delinquency all gas, heat, electricity, power, telephone services of utilities used in, or upon the Lessee during the terms of this lease charges for water, service and all other Leased Premises by agreement. 16. ENTRY AND INSPECTION. Lessee Lessor, its agents alid/or employees to enter Leased Premises at all reasonable times. shall permit the into and upon the 17. ASSIGNMENT/SUBLEASES. Lessee shall not assign or sublease this lease agreement or any interest therein, or any right or privilege appurtenant thereto, without obtaining the written consent of the Lessor. If Lessee obtains Lessor's consent, Lessee shall have the right to assign or sublet its interest in this Lease, but Lessee shall not be released from Habil i ty. 18. LIQUOR LICENSE. liquor license at all times. Lessee shall maintain a valid ( -10- ICJ.. If, -~2~;J ') I ;/S <93 '... ....':0' 19. ATTORNEY FEES. If at any time after the commencement of this Lease, either Lessor or Lessee institutes any action or proceeding against the other relating to the provisions of this Lease, or any default hereunder, the nonprevailing party in such action or proceeding shall reimburse the prevailing party for the reasonable expenses of attorney fees and all costs and disbursements incurred therein by the prevailing party including, without limitation, any such fees, costs or disbursements incurred on any appeal from such action or proceeding. SUbject to the provisions of local law, the prevailing party shall recover all such fees, costs or disbursements as costs taxable by the court or arbiter in the action or proceeding itself without the necessity for a cross-action by the prevailing party. ( 20. SURRENDER OF PREMISES; HOLDING OVER. Upon the date of termination of the term of this Lease, Lessee shall surrender to Lessor the Leased Premises and all of Lessee's improvements and alterations in good condition (except for ordinary wear and tear occurring after the last necessary maintenance made by Lessee). Lessee may remove fixtures owned by Lessee pursuant to Sec. 3. If Lessee fails to surrender the Leased Premises to Lessor on the termination date of this Lease, Lessee shall hold Lessor harmless from all damages resulting from Lessee's failure to surrender the Leased Premises, inClUding, without limitation, claims made by a succeeding tenant reSUlting from Lessee's failure to surrender the Leased Premises. If Lessee, with Lessor's consent, remains in possession of the Leased Premises after expiration or termination of the Lease term, such possession by Lessee shall be deemed to be a month-to-month tenancy terminable on 30 days notice given at any time by either party. All provisions of this Lease, except those relating to Lease term and options to extend shall apply. 21. TERMINATION A. Lessor shall have the right to terminate this Lease Agreement in its entirety and all rights ensuring therefrom upon thirty (30) days written notice if anyone or more of the following events shall occur: (1) Lessee shall fail to pay the rental payments required under this Lease within thirty (30) days after receipt of written notice from Lessor regarding the non-payment of such rental payments; f \ -11- /~ "l7 >>-L/v /;/~-f3 \. .' I (2) Lessee shall permit to continue for a period of fourteen (14) days after writ"ten notice from Lessor to correct, the existence of unsanitary conditions or practices, disrepair of buildings, struct~res, equipment or facilities, unsafe and hazardous practices, or untidy and unsightly condition in, on or about the demised premises; provided, however, that if Lessee shall forthwi th upon receipt of said notice proceed to correct the condition complained of, then Lessee shall have a reasonable time in which to correct should the nature of the work be such as to require more than five (5) days; (3) Lessee shall fail to keep, perform or observe each and every other promise, covenant, condi tion and agreement set forth in this Lease Agreement on its part to be kept, performed or observed within fifteen (15) days after receipt of written notice" of default thereunder from Lessor except where fulfillment of Lessee's obligation requires activity over a period of time and Lessee shall have commenced to perform whatever may have been required for fulfillment within seven (7) days after receipt of such notice and continues such performance without interruption except for causes beyond its control; ( (4) In the event Lessee files for bankruptcy; assigns to any creditor or has a lien placed on any right or property hereunder and such lien is not removed in 90 days; fails to provide the Statement of Gross Sales or if said statement understates gross sales by 6%, (5) Lessee shall voluntarily abandon, desert, vacate or discontinue its operation of the business herein authorized in this Lease Agreement; (6) Permanent loss of liquor license shall be cause for termination, Two or more suspensions and/or fines by the Alcoholic Beverage Control Commission within any 12 month period shall be deemed a "permanent loss of liquor license", B, Notwithstanding the above, Lessor has the right to terminate this Lease, upon the giving of six (6) months notice in wr i ting to Lessee, if the Chula vista ci ty Council adopts any ordinance finding that substantially all of the demised premises are required for purposes of constructing public streets or drainage facilities for the' Sweetwater River Flood Plain "consistent with any flood plan adopted for the Sweetwater River Flood Plan. ( -12- /IJ..../~ c1J-Jj/ 196573 C. Nothing in this Section 21 shall require Lessee to observe or conform to any governmental authority's requirements or to pay any tax, lien, claim, charge or demand so long as the validity or enforceability thereof shall be contested in good fai th to the extent appropr iate unless in Lessor's judgment the performance of Lessee's obligations are being materially and adversely affected. D. No acceptance by Lessor of. rentals, in whole or in part, for any period or periods after a defaul t of any of the terms, covenants and conditions to be performed, kept or observed by Lessee, other than a default in the payment rentals as set forth in Section 21 hereof, shall be deemed a waiver of any right on the part of Lessor to terminate this Lease Agreement on account of such default. E. No waiver by Lessor of any default on the part of Lessee in the performance of any of the terms, covenants, or conditions hereof to be performed, kept or observed by Lessee shall be or be construed to be a waiver by Lessor of any other or subsequent default in performance of any of such terms, covenants and conditions. ( F. No act by Lessor other than giving notice to Lessee shall terminate this Lease. Acts of maintenance, efforts to relet the premises, or the appointment of a receiver on Lessor's ini tiative to protect Lessor' s interest under this Lease shall not constitute a termination of Lessee's right to possession. On termination, Lessor has the right to recover from Lessee: 1. The wor th, at the time of the award, of the unpa id rent that had been earned at the time of termination of this Lease; 2. The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Lessee proves could have been reasonably avoided; and 3. Any other compensate Lessor for Lessee's default. The worth, at the time of the award, -as used in 1 and 2 of this paragraph, is to be computed by allowing interest at the maximum rate an individual is permitted by law to charge. -The worth, at the time of the award,- as referred to in 3 of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank. of San Francisco at the time of the award, plus 1%. amount, and court costs, necessary all detriment proximately caused to by ( -13- /t)" /1 ;2;2 / y~ /,;J-S-f'3 " ' " . , .. . G. In the event Lessee is prevented from occupying or using the demised premises, or is prevented from conducting or operating its business on said premises by final action, order or rUling of any governmental authority, federal, state or municipal, then Lessee may, at its option, cancel this Lease by wr itten notice to Lessor, and said Lease shall be and become cancelled and terminated thirty (30) days after. the receipt by Lessor of such notice. 22. LESSOR'S RIGHT OF RE-ENTRY. Lessor shall, as an additional remedy, upon the glvlng of written notice of termination as provided in Section 21 hereof, have the right to re-enter the demised premises and every party thereof on the effective date of termination without further notice of any kind, and may regain and resume possession either with or without the insti tution of summary or legal proceedings or otherwise. Such re-entry or regaining or resumption of possession, however, shall not in any manner affect, alter, or diminish any of the Obligations of Lessee under this Lease and Agreement, and shall in no event constitute an acceptance or surrender. ( 23. WAIVER OF REDEMPTION AND DAMAGES. Lessee hereby waives any and all rights of redemption granted by or under any present or future law, or statute, arising in the event Lessor obtains or retains possession of the demised premises in any lawful manner. Lessee further agrees that in the event the manner or method employed by Lessor in re-entering or regaining possession of the demised premises gives rise to a cause of action in Lessee in forceable entry and detainer under the laws of the State of California, then the total amount of damages to which Lessee shall be entitled to in any such action shall be the sum of $1.00 and Lessee agrees that the proviSions of this Section 24 may be filed in any such action as its stipUlation fixing the amount of damages to which it would be entitled therein. 24. LESSOR'S RIGHT TO RELET. Lessor, upon termination or cancellation pursuant to Section 21 hereof, or upon re-entry, regaining or resumption of possession pursuant to Section 22 hereof, may occupy the demised premises or may lease the same to others, and shall have the right to permi t any person, firm or corporation to enter upon the demised premises and use the same. Such leasing to or occupation by others may be only a part of the demised premises, or the whole thereof together with other space, and for a period of time the same as or different from the balance of the term hereunder remaining, and on terms and conditions the same as or different from those set forth in this Lease Agreement. Lessor shall also, upon termination. or cancellation pursuant to Section 21, or upon its re-entry, ( -14- liP ,. .2t:J J,;1-iJ 1.,?5Cf3 - . " .. . " . regaining or resumption of possession pursuant to Section 22, have the right to repair or to make such structural or other changes in the demised premises as are necessary in its judgment to maintain the suitability thereof for uses and purposes similar to those granted under this Lease Agreement. In the event either of any leasing to others, or any actual use and occupancy by Lessor, except as specified in subparagraph B of Section 21, there shall be charged to' the account of Lessee all expenses, costs and disbursements incurred or paid by Lessor in connection therewith. No such leasing to others shall be or be construed to be an acceptance of surrender. If Lessor elects to relet the premises as prOVided in this paragraph, rent that Lessor receives from reletting shall be applied to the payment of: First, any indebtedness from Lessee to Lessor other than rent due from Lessee; Second, all costs, including for maintenance, incurred by Lessor in reletting; ( Third, rent due and unpaid under this Lease. After deducting the payments referred to in this paragraph, any sum remaining from the rent Lessor receives from reletting shall be held by Lessor and applied in payment of future rent as rent becomes due under this Lease. In no event shall Lessee be entitled to any excess rent received by Lessor. If, on the date rent is due under this Lease, the rent received from the l'eletting is less than the rent due on that date, Lessee shall pay to Lessor, in addition to the remaining rent due, all costs, including for maintenance, Lessor incurred in reletting that remain after applying the rent received from the reletting as provided in this paragraph. 25. LESSOR'S RIGHTS NON-EXCLUSIVE. Lessor's rights to terminate to Lease, re-enter, regain possession of and relet the Leased Premises are not exclusive, but are cumulative in addition to any remedies now or later allowed by law. 26. NONDISCRIMINATION AND AFFIRMATIVE ACTION PROGRAM. Lessee, in its operations at Chula Vista, for itself, its personal representatives, successor in interest and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running wi th the land that: (1) no person on the grounds of race, color or. national origin shall be excluded from participation, denied the benefits of or be otherwise subjected to discrimination in the use of the facilities covered by this Lease; (2) that in the construction of any improvements on, over or under the premises authorized to be utilized herein and the furniShing of services thereon# no person on the groundS of race, color or national origin shall be excluded from participation in, ( -15- ItJ ,,) I ell ~ L-/t( ~ ~,' -/- .:> ='- - . . , ( denied the benefits of or otherwise be subjected' to discrimination, and (3) that Lessee shall use said pr,emises in compliance with all other requirement~ imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 2, Nondiscrimination in Federally-Assisted Programs of the department of Transportation-Effectuation of Title VI of the civil Rights Act of 1964, and as said Regulations may be amended. Lessee agrees that Lessor has the right to take such action against Lessee as the United Stated Government may direct to enforce this covenant. In addition, Lessee, during the term of this agrees not to discriminate in its employment practices any employee or applicant for employment because employee's or applicant's race, religion, national ancestry, sex, age or physical handicap. Lease, against of the origin, 27. RENTAL PAYMENT/NOTICE. A, All rental payments specified in Section 5 shall be paid to the City of Chula Vista, Department of Finance, 276 Fourth Avenue, Chula Vista, California 92010, or to such other address as the Ci ty may designate by wr i tten notice to Lessee. ( B. Any written notice required by this Lease or by operation of law shall be sent to the following location unless otherwise specified in writing: City of Chula vista Department of Finance 276 Fourth Avenue Chula Vista, California 92010 American Golf Corporation 641 North Sepulveda Blvd. Los Angeles, California 90049 28. ENTIRE AGREEMENT. This Lease contains the entire agreement between the parties hereto and said Lease shall not be modified in any respect except by formal, written amendment. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. ( LESSOR: THE CITY OF CHULA VISTA !"J;1/t G< Mayor of(Jth City 0 Chula Vista LESSEE: AMERICAN GOLF CO~N L'/ ~ David G. Price Chairman of Board and Chief Executive Officer 0314 a -16- ;J} ~tjf P593 //)....).2 PRESTIGE HOSPITALITY SERVICES INC BUSINESS PLAN . PROI.OGUR Attachment B PRESTIGE HOSPITALITY SERVICES, INC. IS NOT A START UP COMPANY IN THE TRUE SENSE OF THE WORD. OUR ULTIMATE GOAL IS TO TRANSPLANT AND REPLICATE INTACT OUR ALREADY HIGHLY SUCCESSFUL BUSINESS ORGANIZATION FROM THE PUBLIC SECTOR TO THE PRIVATE SECTOR. THE MANAGING DIRECTOR AND THE KEY STOCKBOLDER/MANAGERS HAVE BEEN OPERATING ONE OF THE MOST HIGHLY REGARDED, AND PROFITABLE, GOVERNMENT CATERING/CONFERENCE CENTERS LOCATED ON THE WEST COAST FOR THE LAST FIVE CONSECUTIVE YEARS. UNDER THE GUIDANCE OF MANAGING DIRECTOR MR. C. E. CAMPION THE NORTH ISLAND NAVAL AIR STATION OFFICERS' CLUB, WHICH HAD THE WORST OF REPUTATIONS AND HAD LOST IN EXCESS OF $480.0 K. IN FISCAL YEAR 1985, (WITH $100.0 K. IN DIRECT TAX DOLLAR SUPPORT), PRODUCED A $80.0 K. NET PROFIT IN FISCAL YEAR 1990, (WITH ONLY $48.0 K. IN DIRECT TAX DOLLAR SUPPORT), AND WILL MATCH THAT NET PROFIT FIGURE AGAIN IN 1991, (WITH $0.00 TAX DOLLAR SUPPORT). DURING MR. CAMPION'S TENURE AS MANAGING DIRECTOR SALES HAVE NEVER FAILED TO INCREASE BY LESS THAN 12% PER YEAR...EVERY YEAR IN A VIRTUALLY CLOSED MARKET PLACE, AND UNDER REGULATIONS WHICH PROHIBIT PRIVATE SECTOR ADVERTISING. THE PROFESSIONALISM OF THE BAND PICKED AND PERSONALLY TRAINED MANAGERS AND CULINARY PROFESSIONALS WHO DELIVER QUALITY GOODS AND CONSISTENT SERVICES AT AN EXCELLENT PRICE/vALUE RELATIONSHIP HAVE FORMED THE CORNERSTONE OF OUR SUCCESS. WE HAVE LONG FELT THAT IF WE COULD BE THIS SUCCESSFUL OPERATING UNDER THE INCREDIBLY UNBUSINESSLlKE, BUREAUCRATIC AND RESTRICTIVE POLICIES AND REGULATIONS OF THE FEDERAL GOVERNMENT WE COULD BE VERY SUCCESSFUL AT THE RIGHT LOCATION IN THE PRIVATE SECTOR. WITH THAT GOAL IN MIND WE CONTACTED SEVERAL BUSINESS BROKERS IN THE GREATER SAN DIEGO AREA TO IMPLEMENT A LOCATION SEARCH, THE RESULTS OF WHICH LEAD US TO OPENING DISCUSSIONS WITH THE AMERICAN GOLF CORPORATION, (A. G. C.) OF SANTA MONICA, CA. FOR THEIR BEAUTIFUL LEASED 16000 SQUARE FOOT FACILITY ADJACENT TO THE CHOLA VISTA MUNICIPAL GOLF COURSE, LOCATED AT 4475 BONITA RD. , BONITA, CA. WE HAVE SINCE HELD SEVERAL VERY POSITIVE PRELIMINARY DISCUSSIONS, THE LAST WITH MR. KEVIN J. ROBERTS, SENIOR VICE PRESIDENT GOLF OPERATIONS FOR AMERICAN GOLF CORPORATION. TO DATE WE HAVE GARNISHED A COPY OF THE EXISTING LEASE AND MUCH OF A.G.C. 'S ACTUAL OPERATING FIGURES. WE'VE CONCLUDED THAT THIS MODERN, FULLY EQUIPPED, STATE OF THE ART FACILITY IS TRULY A "DIAMOND IN THE ROUGH" BEGGING FOR AN EXPERIENCED, SUCCESSFUL MANAGEMENT TEAM. FROM THE INFORMATION GATHERED AND BASED ON OUR VAST OPERATIONS :lXPERIENCE WE HAVE PREPARED OUR PROFORMA BUDGETS, BUDGETING ASSUMPTIONS, BUSINESS PLAN AND A PROFORMA SUB-LEASE -1- u/I)~;J ...;a.-_ . 4 .,.~-"...~--... .-- --" .'::;;':-. ___ _~_________~::",--==::~:~___--=-:--=:~__~-:~"'~H'~"___;;".o-"",-':;;:~:.:~===-_ __________ / . :! ! en..J >! uU a~~ u.8 en : ->.!ffi j-~ -60 :.., / ~ .. ~ !. ~~ " \ \ .. \ \ -: \ \ :l \ \ \' r\ ~..JlH -!g >- u :3z~ :;:):;:) J:2 u 0 ,z c~ ..- oe: a:",...J ...w.. a::>a: i3~'" /~-;,J.r ~ " z ;c : j o Z :3..J l<.I ...U zO:: ~! ~ Os u.(l) 2_ - ~ ~o(lS) ~~S O~p.'( \.. o o '" Of- e(_ om a::i: e(>< f-W ZQ;. l<.I .0Ll. ~ 03 a: l<.I u f o[ ~l o '" .80'&6~ ... a:z ~~ . lUW ",,,, - ~ !Ow / f ( II . J/~ II ~.. II ];: ~ i!l .- ;e - .~ ~ o lD ~ ~ ID j!<t _N ~:3 IDa.. 0- u.'" 2~ Ov <to:: ::ll<.l . >,z . :!l<.I _ _u ~ ID PROPOSAL. AFTER REVIEWING THESE ATTACHED DOCUMENTS, IN ADDITION TO THE RESUMES OF OUR CORPORATE DIRECTORS, ErrERIOR PHOTOS OF THE FACILITY AND THE LETTERS OF RECOMMENDATION FROM EXISTING SAN DIEGO AREA COMPANIES WE ARE ALREADY DOING BUSINESS WITH, WE ARE HOPEFUL THAT YOU Too.WILL SEE THE INCREDIBLE POTENTIAL THAT THIS SITE WOULD HAVE IN THE HANDS OF A SEASONED, EXPERIENCED AND SUCCESSFUL HOSPITALITY MANAGEMENT TEAM. BE ASSURED THAT THE PROFORMA BUDGETS SUBMITTED HERE ARE "ZERO BASED" AND REPRESENT WHAT WE FEEL IS OUR "WORST CASE SCENARIO". WE THANK YOU FOR YOUR TIME AND CONSIDERATION. J -2- 1~1eJ> . IO~"6 "our \'leu! facni\...Y is 16,000 S.F. on !.he Golf Course on 3/4'S of an acre in !.he bedroom communi!.Y of Boni!.a.CII. \:2. miles sou!.heas!. of dOuln\...O\lln San Oieeo.. " , . /1l'.2~ / ,\ I ) DEMOGRAPHIC SITE & FACILITY OVERVIEW THE FACILITY IS LOCATED IN THE BEDROOM COMMUNITY OF BONITA APPROXIMATELY 12 MILES SOUTHEAST OF DOWNTOWN SAN DIEGO, CA., AND LESS THAN 10 MILES NORTH OF THE INTERNATIONAL BORDER WITH MEXICO. THE SITE IS LOCATED TWO MILES EAST OF INTERSTATE 805 ADJACENT TO THE CHOLA VISTA MUNICIPAL GOLF COURSE, IN A PRIMARILY KID TO UPPER MIDDLE CLASS RESIDENTIAL NEIGHBORHOOD, WHERE THE MEDIAN PRICED HOME SELLS FOR JUST OVER $200,000.00. THE FACILITY SITS ON 3/4'S OF AN ACRE IN THE NORTHEAST CORNER OF A FOUR ACRE PLOT, SURROUNDED BY THE GOLF COURSE TO THE NORTH AND EAST, AND BY PARKING FOR 300-400 CARS TO THE SOUTH AND WEST. THE BUILDING IS MODERN, (APPROXIMATELY 15 YEARS YOUNG), HAS A STOCCO EXTERIOR AND A FLAT ROOF. THERE IS A DRIVE THROUGH PORTICO AT THE FRONT ENTRANCE. UPON ENTERING THE BUILDING THERE IS A DINING/CATERING SPACE TO THE LEFT WITH SEATING CAPACITY FOR 180 PEOPLE. DIRECTLY OPPOSITE THE FRONT ENTRANCE IS A BAR/LOUNGE/CATERING SPACE WITH STANDING CAPACITY FOR UP TO 100 AND SEATING CAPACITY FOR UP TO 50 PEOPLE. TO THE RIGHT DOWN THE FRONT HALLWAY ARE THE MANAGER/ACCOUNTING OFFICE, THE MEN'S AND LADIES' REST ROOMS, THE CATERING SALES OFFICE AND THE ENTRANCES TO THE BALLROOM. THE BALLROOM IS THE LARGEST SINGLE SPACE CAPABLE OF SEATING UP TO 225 PEOPLE, IT IS ALSO CAPABLE OF BEING SUB-DIVIDED INTO THREE EQUI-SIZED SMALLER SPACES EACH HOLDING 75 PEOPLE AND EACH WITH IT'S OWN SEPARATE ENTRANCE. IN THE CENTER OF THE FACILITY IS LOCATED A 4000 SQUARE FOOT MODERN, WELL EQUIPPED COMMERCIAL KITCHEN WITH SIGNIFICANT FOOD AND BEVERAGE STORAGE AREAS. LOCATED BEHIND THE KITCHEN, WITH ITS OWN SEPARATE ENTRANCE IS THE "19th HOLE LOUNGE" WHICH SEATS 40 PEOPLE. THE WALK UP SNACK BAR OPERATION IS LOCATED IN THE NORTHEAST CORNER OF THE FACILITY. OVEHALL THE FACILITY IS 15-16000 SQUARE FEET, IS IN VERY GOOD CONDITION. IS WELL EQUIPPED AND IS, WITH MINOR EXCEPTIONS, READY FOH A TURNKEY OPERATION. THOUGH THE FINAL LEASE AGREEMENT REMAINS TO BE NEGOTIATED THE FORECASTED AND EXPECTED RENTAL COSTS, (PER THE EXISTING LEASE BETWEEN THE CITY OF CHULA VISTA AND AMERICAN GOLF CORPORATION), IS BETWEEN $.40 - $.50 PER SQUARE FOOT. THE CURRENT LEASE HAS FIVE YEARS REMAINING ON IT, WITH TWO TEN YEAR RENEWAL OP~' IONS. -3- /11"',,2 7 II ) PRODUCT & MARKET DESCRIPTION PRESTIGE HOSPITALITY SERVICES, INC., LIKE IT'S PUBLIC SECTOR PREDECESSOR, WOULD PROVIDE REASONABLY PRICED, QUALITY ORIENTED, FOOD, BEVERAGE, CATERING AND CONFERENCE SERVICES. OUR MARKET IS "MIDDLE CLASS AMERICA", RETIREES ON FIXED INCOME AND SMALL TO MEDIUM SIZED BUSINESSES. THIS MARKET BAS BECOME INCREASINGLY DISENCHANTED WITH THE PROSPECT OF HAVING TO PAY OUTRAGEOUS PRICES AT LOCAL AREA HOTELS WHICH HAVE TRADITIONALLY BEEN THE SOURCE FOR THESE GOODS AND SERVICES. WHAT WITH HOTELS IN THE SAN DIEGO METROPOLITAN AREA RUNNING OCCUPANCY PERCENTAGES IN THE "HIGH 60'S AND LOW 70 'S", THEY HAVE HAD TO INCREASE THE PRICE STRUCTURES IN THEIR FOOD AND BEVERAGE DEPARTMENT IN AN ATTEMPT TO OFFSET THE LOSSES BEING EXPERIENCED IN THEIR ROOMS DIVISION. THESE PRICE INCREASES HAVE LEAD TO MARKET ALIENATION OF THOSE ON FIXED INCOMES, THE MIDDLE CLASS AND SMALL TO MEDIUM SIZED BOSINESSES. UNLESS THIS MARKET HAS ACCESS TO THE LOCAL MILITARY CLUB SYSTEM, A FRATERNAL ORDER FACILITY SUCH AS THE MASON'S LODGE, OR THEIR CHURCH'S FELLOWSHIP HALL THERE ARE FEW, IF ANY, PLACES FOR THEM TO TURN. THE MODERN AND ATTRACTIVE 15000 SQUARE FOOT SITE LOCATED AT THE CHOLA VISTA MUNICIPAL GOLF COURSE WOULD OFFER A MOST VIABLE MARKET OPT ION. _ i -I' OUR PROPOSED OPERATING SCHEDULE, AS FOLLOWS, EXPLOITS THE STRENGTHS OF THIS MARKET SPECIFIC APPROACH: BREAKFAST, LUNCH & HAPPY HOUR DAILY IN THE GOLFER'S LOUNGE. A SEVEN DAY A WEEK SNACK BAR OPERATION "AT THE TURN" ON THE GOLF COORSE. FRIDAY NIGHT BIG BAND DINNER DANCING. SONDAY CHAMPAGNE JAZZ BRUNCH. BANQOETS, CATERED EVENTS AND CONFERENCES AT ALL OTHER TIMES. THE GOLF COURSE, WHICH AVERAGES 300 ROUNDS PER DAY, ATTRACTS OUR MARKET PROFILE EXACTLY. MUNICIPAL COURSE GOLFERS ARE THOSE WHO HAVE THE $5000.00 - $8000.00 TO SPEND ON THEIR DAUGHTER'S WEDDING OR ARE THE DECISION MAKERS IN THEIR COMPANIES WHO INFLUENCE WHERE THE COMPANY CHRISTMAS PARTY WILL BE HELD. THEY ARE ALSO THE YOUNG FAMILY COUPLES WHO ARE SEARCHING FOR A REASONABLY PRICED -4- 1~--.2-g" SUNDAY BRUNCH ALTERNATIVE. THE FIXED INCOME RETIREE GOLFERS ARE 2THE SAME CLIENTELE WHO PATRONIZE OUR SUCCESSFUL FRIDAY NIGHT BIG BAND DINNER DANCE AND SUNDAY JAZZ BRUNCH. WE ARE ALSO CONFIDENT THAT OUR SUCCESSFUL HISTORY AND REPUTATION WITH THE NAVY IN THE SAN DIEGO AREA WILL ALLOW US TO ATTRACT A SIGNIFICANT AMOUNT OF CATERED BUSINESS AWAY FROM THE 32nd STREET NAVAL STATION WHICH IS LESS THAN SIX MILES AWAY. -5- 1(')".2 , III ) PRICING STRATEGY OUR PRICING STRATEGY IS SIMPLE: TO OFFER THE SAME "FOUR STAR" QUALITY GOODS AND PROFESSIONAL SERVICES TO BE FOUND IN ANY OF SAN DIEGO'S "FOUR STAR" HOTEL PROPERTIES FOR 10-12% LESS. -6- /P'.JO TV ) MARKETING PLAN OUR EXPERIENCE OF THE LAST FIVE YEARS SHOWS THAT QUALITY GOODS AND SERVICES RENDERED BY WELL TRAINED, ATTRACTIVE AND FRIENDLY PERSONNEL AT A 10-12% COST SAVINGS TO THE GUEST RESULTS IN THE FINEST KIND OF ADVERTISING OF ALL...EXCELLENT WORD OF MOUTH. THIS PREMISE HAS FORMED THE CORNERSTONE OF OUR HISTORICAL 12% PER YEAR SALES INCREASES. WE RECOGNIZE THAT THIS "PASSIVE PHILOSOPHY" ALONE WILL NOT GUARANTEE OUR SUCCESS IN THE PRIVATE SECTOR. WE WILL ADHERE TO THE PRINCIPLES THAT ADVERTISING DOLLARS SPENT !fOST BE COST EFFECTIVE AND MARKETING EFFORTS EXPENDED !fOST BE TARGET SPECIFIC AND RESULTS ORIENTED. WITH THAT IN MIND AND WITH REASONABLE INITIAL ADVERTISING DOLLARS BUDGETED WE INTEND TO CHANGE THE NAME OF THE FACILITY FROM SOUTH BAY RESTAURANT TO THE SOUTH BAY CATERING &: CONFERENCE CENTER. NEWLY DESIGNED SIGNAGE WHICH WOULD ALSO INCLUDE OUR WEEKLY SCHEDULE AS OUTLINED ABOVE WOULD REPLACE THE EXISTING SIGNAGE IN THE BRICK KIOSK ADJACENT TO BONITA RD., WHERE SOME 25-30,000 CARS A DAY PASS BY. WE WILL PLACE TWO HIGH IMPACT QUARTER PAGE ADS AND ONE LINE AD IN THE SOUTH BAY YELLOW PAGES. THE QUARTER PAGE ADS WILL APPEAR UNDER THE "CATERERS" LISTING AND THE "CONFERENCE CENTERS" LISTING. THE LINE AD WILL BE UNDER THE "WEDDING SUPPLIES &: SERVICES" LISTING. REMAINING ADVERTISING DOLLARS WILL BE EXPENDED IN THE FORM OF DI~ECT MAILINGS TO THE MORE THAN 3000 PREQUALIFIED CUSTOMERS AND CLIENTS WHO HAVE SIGNED UP TO BE ON OUR MAILING LIST OVER THE LAST FIVE YEARS AND WILL BE USED FOR "EVENT SPECIFIC", (EASTER, MOTHER"S DA Y, NEW YEARS EVE, ETC.), PR INT ADS IN THE LOCAL SOUTH BA Y NEWSPAPERS OR "PENNY SAVERS". IN ORDER TO INTRODUCE OUR "NEW CATERING SERVICES" AND THE TWO NEW MEAL PERIODS, THE FRIDAY NIGHT BIG BAND DINNER DANCE AND OUR SUNDAY CHAMPAGNE JAZZ BRUNCH THE MARKETING DIRECTOR WILL IMMEDIATELY IMPLEMENT THE FOLLOWING PROGRAMS: 1.) VISIT WITH FLYERS THE ACTIVITIES DIRECTOR AT EACH RETIREMENT CENTER WITHIN A TEN MILE RADIUS. WE WILL OFFER ALL SENIOR CITIZENS A $1.00 DISCOUNT FOR BOTH THE BRUNCH AND THE FRIDAY NIGHT DINNER DANCE. 2.) IN ORDER TO ATTRACT FAMILIES TO THE SUNDAY BRUNCH WE WILL OPEN WITH A "TEN &: TEN" PRICE PROMOTION - $10.00 FOR ADULTS AND ALL KIDS 10 & UNDER EAT FREE. -7- It) -J I 3.) VISIT ALL CHURCHES AND PARISHES WITHIN A TEN MILE RADIOS AND ARRANGE WITH EACH PASTOR TO REBATE $0.50 TO THE CHARITY OF THEIR CHOICE FOR EACH OF THEIR SUNDAY BULLETINS, THAT ADVERTISES THE OFFER, WHICH IS TURNED INTO OUR CASHIER FOR SUNDAY BRUNCH, (LIMIT ONE PER ADULT). 4.) ARRANGE TO PAY AND TO RECEIVE REFERRAL FEES FROM KEY INDIVIDlJALS AND BUSINESSES, SUCH AS WEDDING CONSULTANTS, BRIDAL SHOPS, TUXEDO RENTAL SHOPS, JEWELERS, PHOTOGRAPHERS, DJ '5 , BAKERIES, BALLOON COMPANIES, ETC, 5.) SCHEDULE WITH ACTIVITY DIRECTORS AND/OR MANAGERS OF LOCAL AREA RETIREMENT/NURSING HOMES FOR MID-WEEK EARLY EVENING DINING/SOCIAL EVENTS. 6.) PRODUCE CROSS MARKETING TABLEIBAR TOP PROMO PIECES FOR THE FRIDAY DINNER DANCE AND THE SUNDAY BRUNCH TO BE PLACED IN THE GOLFER'S LOUNGE, SNACK BAR AND THE GOLF PRO SHOP SALES COUNTER. -8- IP,.JI V.l PRESTIGE HOSPITALITY SERVICES INC. CORPORATE PHILOSOPHY PRESTIGE HOSPITALITY SERVICES, INC. IS BEING FORMED TO PROFITABLY ExPLOIT A MARKET NICHE THAT EXISTS IN !lANY METROPOLITAN AREAS TODAY AND WILL CONTINUE TO EXIST ON INTO THE FORESEEABLE FUTURE. OUR COMPANY IS POUNDED ON THE PRINCIPLES OF "GUEST FIRST SERVICE" & "TOTAL QUALITY !lANAGEMENT". WE RECOGNIZE THAT WITHOUT SATISFIED CUSTOMERS FORMING OUR REPEAT BUSINESS BASE WE ARE DOOMED TO FAILURE AND THAT IS UNACCEPTABLE. P. H. S., INC. IS BEING FORMED AS AN EMPLOYEE OWNED AND OPERATED COMPANY TO: 1.> GIVE MANAGEMENT AND SUPERVISORY PERSONNEL THE OPPORTUNITY TO HAVE PARTICIPATORY INPUT IN THE !lANAGEMENT DECISIONS THAT AFFECT THE DAY TO DAY BUSINESS OPERATION, AND ... 2. > GIVE MANAGEMENT AND SUPERVISORY PERSONNEL AN EQUITY "STAKE" IN THE BUSINESS FORCING THEM TO "RUN IT LIKE THEY OWN IT". THE FOOD SERVICE INDUSTRY IS AN INCREDIBLY COMPLEX DAILY SALES AND MARKETING, DAILY MANUFACTURING, DAILY COST CONTROL AND DAILY PRODUCT DELIVERY BUSINESS. THEREFORE, WE BELIEVE THAT THE "K. L S. S." SYSTEM OF BUSINESS OPERATIONS IS BEST AND MOST EFFECTIVE. WE ARE TOTALLY DEDICATED TO DOING THE BASICS WELL, INCLUDING: 1.> COST EFFECTIVE AND MARKET SELECTIVE ADVERTISING & PROMOTIONS. 2.> COMPETITIVE PRICING WITH EXCELLENT PRICE/VALUE RELATIONSHIPS. 3.> STRICT COST CONTROLS, WHICH INCLUDE: a.) FLEXIBLE WEEKLY AND DAILY SCHEDULING. b.) SHIFT BY SHIFT RETAIL ACCOUNTABILITY BEVERAGE INVENTORIES. c.> FULL MONTHLY FOOD, BEVERAGE & CONSUMABLE INVENTORIES. d.> DAILY P & L STATEMENTS. e.> DAILY PURCHASE JOURNALS. f.> A COMPLETE "CLOSED LOOP" PURCHASE ORDER SYSTEM. .4.> PROGRESSIVE PERSONNEL POLICIES AND !lANAGEMENT. WE ARE FULLY COMMITTED TO PROVIDING A QUALITY WORK ENVIRONMENT WHICH IS POSITIVE, MUTUALLY SUPPORTIVE, DEDICATED TO EQUAL OPPORTUNITY AND FREE OF ANY DISCRIMINATIONS OR SEXUAL -9- I~" 3;1.. .~~......"'ec:,.......~ __~_. '"" HARASSMENTS. WE WILL FULLY RECOGNIZE THE CONTRIBUTIONS AND ACHIEVEMENTS OF BOTH THE INDIVIDUAL AND THE TEAK AS A WHOLE. P.H.S., INC. IS ALSO COMMITTED TO BEING A GOOD CORPORATE CITIZEN AND WILL LEAD BY EXAMPLE. WE WILL NEVER KNOWINGLY BE A CONTRIBUTOR TO ANY ENVIRONMENTAL DEGRADATIONS. WE WILL SHOW COMPASSION FOR THOSE IN OUR COMMUNITY WHO ARE LESS FORTUNATE AND WILL DONATE OUR LEFTOVERS AT THE END OF OUR BUSINESS WEEK TO THE ST. VINCENT DE PAUL/JOAN KROC CENTER FOR THE HOMELESS. WE WILL PARTICIPATE TO THE EXTENT POSSIBLE IN OTHER CHARITABLE CAUSES TO MAKE OUR COMMUNITY A BETTER PLACE FOR ALL. -10- /()~:JJ .................................................................... . Recao of all Deoartments: TOTAL INCOME Cost of Sales GROSS PROFIT * 100% 22% 78% 1,375,010 296.805 1,078,205 100% 22% 78% 1,539,231 332.422 1,206,809 100% ~ 78% 1,723,160 372.313 1,350,847 Less Direct Expenses: Food Dept~ <22%> <303,188> Beverage Dept. < 7%> < 98.690> <21%> <324,816> < 7%> <105.976> <21%> <357,338> < 7%1 <127.247> NET OPERATING INCOME 49% 676,327 50% 776,017 50% 066,262 <604,330> < 78,177> < 650> 183. 1 05 Pretax Net Income <541,374> < 62,342> < 650~ 71.961 <570,096> ( 69,812> < 650> Less General & Adm. Sales Incentives Non Re-occuring 5% 9'~ 135.459 / 11% Footnote: The above summary has been dev~loped from managements calculations determined monthly (using 13 periods of 4 weeks each) for each budget year on a Lotus 123 spreadsheet. For details to all expense categories, refer to each years supporting worksheet and a narative on how and why such amounts were determined based on this facility. II) '~'I . '" ., .z .'" .... .. .... <.>0 II .c_ ..... ". 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'orrow $ 100,000, .at -Payment Beglnnlng Number Balance 1. 100,000. 2. 97,783.47 3. 95,539.23 4. 93,266.93 5. 90,966.24 6. 88,636.78 7. 86,278.21 8. 83,890.16 9. 81,472.25 10. 79,024.12 11.. 76,545.39 1 2 _ __ __---"' ~5~ 117__ 13. 71,494.59 14. 68,921.74 15. 66,316.73 16. 63,679.15 17. 61,008.61 18. 58,304.68 19. 55,566.96 20. 52,795.01 21. 49,988.42 22. 47,146.74 23. 44,269.54 24. 41,356.38 25. 38,406.8 26. 35,420.35 27. 32,396.57 28. 29,335. 29. 26,235.15 30. 23,096.56 31. 19,918.73 32. 16,701.19 33. 13,443.42 34. 10,144.93 35. 6,805.21 36. 3,423.74 15. % for Principal Amount 2,216.53 2,244.24 2,272.29 2,300.7 2,329.45 2,358.57 2,388.05 2,417.91 2 ,448. 13 2,478.73 2,509.71 2,541.09 2,572.85 2,605.01 2,637.57 2,670.54 2,703.93 2,737.72 2,771.95 2,806.59 .2,841.68 2,877.2 2,913.16 2,949.58 2,9$6.45 3,023.78 3,061.57 3,099.85 3,138.59 3,177.83 3,217.55 3,257.77 3,298.49 3,339.72 3,381.47 3,423.74 3. years). payment Inl;.erest Amount 1,250. 1,222.29 1 , 1 94 . 24 1 ,.1 65 . 84 1,137.08 1 ,107.96 1,078.48 1,048.63 1,018.4 987.8 956.82 925.45 893.68 861.52 828.~6 795.99 . 762.61 728.81 694.59 659.94 624.85 589.33 553.37. 516.95 480.09 442.75 404.96 366.69 327.94 288.71 248.98 208.76 168.04 126.81 85.07 42.8 11)';$ /, is 3,466.53 Cumulative Interest 1,250. 2,472.29 3,666.53 ,,:. 4,832.37 5,969.45 7,077 .41 8,155.89 9,204.51 10,222.91 11,210.72 12,167.53 13,.092.98 13,986.66 14,848. 18 15,677 .14 16,473.13 17 ,235. 74 17 ,964.55 18,659.14 19,319.07 19,943.93 20,533.26 21,086.63 21,603.59 22,083.67 22,526.43 22,931.38 23,298.07 23,626.01 23,914.72 24,163.7 24,372.47 24,540.51 24,667(32 24,752.39 24,795.18 ____..fl., ..._ - :JI, -- i o- r. r. ; H i - - - - ~ - . .. .. . ;< ~ " ~ 5 .. 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PRICE INCREASE IN CATERING PRICES OVER THE CURRENT N.A.S.N.I. OFFICER"S CLUB PRICING. ALL OTHER GOODS AND SERVICES COMPETIVELY MARKET PRICED. B.) FOOD SALES = 567. OF TOTAL INCOME: 1.> SNACK BAR OPERATIONS = 7.11. OF TOTAL FOOD SALES: a.> $150.00/DAY x 364 DAYS. / 2.) "19th HOLE" = 14.97. OF TOTAL FOOD SALES: a.) BUFFET BREAI<FA~)T: 35 COVERS " $4.50 AVE. CHECK H 364 DAYS. b.) a 1 a CARTE LUNCH: 35 COVERS ,! $5.50 AVE. CHECK H 364 DAYS. ~;.) FRIDAY NIGHT "DIG BAND" DINNEFi DANCE = 12.27. OF TOTAL FOOD SALES: "l .) 150 COVERS :'; $13.00 AVE. CHECI< H 48 DAYS. (oPS. SUSPENDED FROM THANI<SGIVING THf,U NEW YEARS FOR CATERED EVENTS) . 4.) SUNDAY CH~ll'1PAGNE JAZZ BRUNCH = 14.11. OF TOTAL FOOD SALES, a.) 225 COVEliS :, $10.00 AVE. CHECK x 48 DAYS. (DOES NOT INCL. EASTER, MOTHER'S DAY, FATHER'S DAY &. THE SUNDAY BETWEEN X-MAS & NEW YEARS EVE). ::i.) "SPECIAL EVENTS" = 3.41. OF TOTAL FOOD SALES: ..1 EASTER SUNDAY - 500 COVERS H $10.00 AVE. CHECK. b.) l'1oTHEf,' S DAY - 500 COVERS H ~; 1 0.00 AVE. CHECI<., c.) FATHEf\'S DAY - 500 COVERS :.! !t>10.00 AVE. CHECf(. d.) THANKSG I V I NG DAY BUFFET - 5(11) COVERS ,: t.12. 50 AVE. CHECK. e.) NE\~ YEARS EVE GALA - 150 COVERS H $25.00 AVE. CHECK ~, 150 COVERS H $10.00 AVE. CHECK. 6.) CATERING SALES = 48.31. OF TOTAL FOOD SALES, a.) BALLF~OOt1 - 250 SEATS :{ 251. OCCUPANCY RATE" $10.00 AVE. CHECI< . / b.) DINING ROOM - 150 SEATS x 251. OCCUPANCY RATE K $10.00 AVE. CHECK. c.) FRONT DAR AREA - 50 SEATS", 101. OCCUPANCY RATE x $10.00 AVE. CHECK. ** CATERING SP,LES ARE SEASONALLY ADJUSTED IN THE MONTHS OF APRIL, MAY, JUNE, JULY, AUGUST &. SEPTEMBER FOR INCREASED WEDDING BUSINESS AND IN DECEMBER FOR CHRISTMAS PARTIES. /I)"I/(J / I, :EVERAGE SALES = 27% OF TOTAL. INCOME: I ) SNACK BAR OPERATIONS = 14.5% TOTAL BEV. SALES: $150.00/DAY x 364 DAYS. ) "19th HOLE" = 24.2% OF TOTAL BEV. SALES: $250.00/DAY x 364 DAYS. ) FRIDAY NIGHT "BIG BAND" DINNER DANCE = 5.7% OF TOTAL BEV. SALES: $450.00/DAY x 48 DAYS. ) SUNDAY CHAMPAGNE JAZZ BRUNCH = 1.2% OF TOTAL BEV. SALES: $100.00/DAYS x 48 DAYS. ) "SPECIAL EVENTS" = 1% OF TOTAL BEV.SALES: a.) EASTER SUNDAY - $400.00. b.) MOTHER'S DAY - $400.00. c.) FATHER'S DAY - $400.00. d.) THANKSGIVING DAY BUFFET - $600.00. e.) NEW YEARS EVE GALA - $2000.00. ) CATERING BEVERAGE SALES = 53.4% OF TOTAL BEV. SALES: HISTORICALLY 50% OF CATERING FOOD SALES. I .! . OTHER INCOME = 17.5% OF TOTAL INCOME: / ) SERVICE CHARGES RETAINED: A 15% SERVICE CHARGE WILL BE ADDED TO ALL CATERED FOOD SALES & CATERING HOSTED BEVERAGE SALES. WAITSTAFF AND BAR STAFF WORKING IN SUPPORT OF THESE FUNCTIONS WILL BE PAID A HIGHER HOURLY WAGE IN LEW OF THE TRADITIONAL SERVICE CHARGE DISTRIBUTION, (SEE DETAILS UNDER "SALARIES & WAGES"). ) ROOM RENTALS: ~.) ROOM RENTAL FEES WILL BE CHARGED FOR ALL MEETINGS AND CONFERENCES AT THE FOLLOWING RATES: $ .50/PERSON FOR FOUR HOURS DR LESS; $1.00/PERSON FOR MORE THAN FOUR UP TO EIGHT HOURS. b.) ROOM RENTAL FEE ARE TO BE CHARGED FOR ALL WEDDING RECEPTIONS IN LEW OF ANY 'NUSCIENCE FEES" AS FOLLOWS: BALLROOM @ $600.00/FOUR HOUR PERIOD; "DINING ROOM" @ $350.00/FOUR HOUR PERIOD; FRONT BAR AREA @ $150.00/FOUR HOUR PERIOD. . c.) THERE WILL BE NO ROOM RENTAL CHARGES FOR NORMAL "SOCIAL FUNCTIONS WHERE MEAL AND/OR FOOD SERVICES ARE PROVIDED. d.) THERE WILL BE A $10.00/HOUR/EMPLOYEE FEE CHARGED FOR ALL WEDDING RECEPTIONS AND SOCIAL FUNCTIONS THAT EXTEND BEYOND THE "STANDARD" FOUR HOUR RENTAL/USAGE TIMEFRAME. I / )~''I/ J 3.) OTHER MISC. INCOME: a.) CONSISTS OF CANDLE SALES, MARK UPS FOR DECORATIONS AND CENTERPIECES, VENDER REFERAL FEES, ETC. II.) EXPENSES: A.) COST OF GOODS: 1.) FOOD DEPARTMENT: IT IS ASSUMED THAT.THE FOOD DEPARTMENT WILL OPERATE ON A COMBINED 28% C.O.G., BROKEN DOWN AS FOLLOWS: a.) SNACK BAR @ 40% COST. b.) "19th HOLE" BREAKFAST & LUNCH @ 35% COST. c.) FRIDAY NIGHT "BIG BAND" DINNER DANCE @ 35% COST. d.) SUNDAY CHAMPAGNE JAZZ BRUNCH @ 22% COST. e.) CATERING FOOD SALES @ 26% COST. 2.) BEVERAGE DEPARTMENT: IT IS ASSUMED THAT THE BEVERAGE DEPARTMENT WILL OPERATE ON A COMBINED 221. COST BASIS, BROKEN DOWN AS FOLLOWJ: a.) SNACK BAR @ 451. COST. b.) "19th HOLE" @ 25% COST. c.) FRIDAY NIGHT "BIG BAND" DINNER DANCE @ 17% COST. d.) SUNDAY CHAMPAGNE JAZZ BRUNCH @ 22% COST. e.) CATERING BEVERAGE SALES @ 201. COST. B.) SALARIES & WAGES, TAXES & "BENNIES": 1.) FULL TIME SALARIED EMPLOYEES: a.) MANAGING DIRECTOR @ $40,000.OO/YEAR, G&A. b.) COMPTROLLER @ $25,000.OO/YEAR, G&A. c.) ASSISTANT COMPTROLLER @ $25,OOO.OO/YEAR, G&A. d.) MARKETING DIRECTOR @ $25,OOO.OO/YEAR, G&A. e.) CATERING SALES ASSOCIATE @ $18,OOO.OO/YEAR + 1% OF TOTAL CATERING SALES INCOME GENERATED, G&A., f.) EXECUTIVE CHEF @ 25,OOO.OO/YEAR, FOOD DEPT. g.) SOUS CHEF @ $15,OOO.OO/YEAR, FOOD DEPT. h.) DINING ROOM MANAGER @ $15,OOO.00/YEAR + 1% DINING ROOM SALES, FOOD DEPT. i.) BANQUET MANAGER @ $15,OOO.OO/YEAR + 2% CATERING FOOD SALES, FOOD DEPT. j.) BEVERAGE DEPT./SNACK BAR MANAGER @ $15,000.00 + 2% TOTAL BEVERAGE SALES, BEVERAGE DEPT. ' k.) CATERING ADMIN. ASSISTANT @ $15,000.OO/YEAR + .51. OF TOTAL CATERING SALES INCOME GENERATED, G&A. 1.) PURCHASING AGENT @ $15,OOO.00/YEAR, G&A. m.) RECEIVING/STOREROOM AGENT @ $15,000.00/YEAR, G&A. /&..I/:l. -- -- - - - - -=:,;",'~.:_.:-,. _. 2.) WAGE GRADE EMPLOYEES: a.) SNACK BAR ATTENDENTS - 2 @ $6.50/HR., VARIABLE SCHED., 50% FOOD DEPT. 50% BEV. DEPT. b.) BANQUET HOUSEMEN - 2 @ $B.OO/HR. FULL TIME, G&A. / c.) JANITOR - 1 @ $7.50/HR. FULL TIME., G&A. d.) COOKS - 3 @ $8.00/HR. VARIABLE SCHED., FOOD DEPT. e.) D.M.O.- 2 @ $6.50/HR. VARIABLE SCHED., FOOD DEPT. f.) WAITSTAFF DURING NON-CATERING FUNCTIONS - 20-25 @ MINIMUM WAGE + GRATUITIES, VARIABLE SCHED., FOOD DEPT. g.) BARSTAFF FOR NON-CATERING SERVICE - 5 @ $6.00/HR. + GRATUITIES, 1 FULL TIME & 4 VARIABLE SCHED., BEV. DEPT. h.) WAITSTAFF DURING CATERED FUNCTIONS - SAME 20-25 AS ABOVE @ $7.50/HR. FLAT RATE, FOOD DEPT. i.) BARSTAFF DURING CATERED FUNCTIONS - SAME 5 AS ABOVE @ $8.50/HR. FLAT RATE, BEV, DEPT. , 3.) F.I.C.A.: a.) @ 7.65% OF GROSS SALARIES & WAGES. 4.) STATE & FEDERAL UNEMPLOYMENT TAXES: a.) @ 3.4% GROSS SALARIES & WAGES -.STATE. b.) @ 0.8% GROSS SALARIES & WAGES - FED. 5.) VACATION PAY ACCURAL: a.) @ 7.7% GROSS WAGES OF QUALIFIED FULL TIME EMPLOYEE ONLY. 6.) MEDICAL/DENTAL/OPTICAL/LIFE INSURANCE: a.) @ 8.0% GROSS WAGES OF SALARIED & QUALIFIED FULL TIME EMPLOYEES ONLY. . ) ALL OTHER DIRECT DEPARTMENTAL EXPENSES: 1.) BASED ON HISTORICAL OPERATIONAL DATA. / ) GENERAL & ADMINISTRATIVE EXpeNSES; 1.) SALARIES & WAGES, TAXES & "BENNIES" AS OUTLINED ABOVE. 2.) WoRKERS COMPo & OCCUPATIONAL INSURANCES: a.) @ 7.75% OF GROSS WAGES OF ALL QUALIFIABLE EMPLOYEES PLUS $10,000.00/YEAR IN PROPERTY & INSURANCE PREMIUMS. 3.) PROPERTY TAXES; a.) ESTIMATED. 4.) LICENSES, FEES & BUSINESS TAXES: a.) LIQUOR LICENSE AMORTIZATION. b.) INCORPORATION & FRANCHISE TAX FEES. , /~ ,.y;$ ~ ~ ,. 5.> LEASE EXPENSE; a.> PER PRIMARY LEASE. 6.> UTILITIES EXPENSES: a.> PER HISTORICAL DATA. 7.> ALL OTHER G&A EXPENSES: a.> BASED ON HISTORICAL OPERATIONAL DATA & EXPERIENCE. E.> OTHER EXPENSES: I.> SALES INCENTIVES DISTRIBUTED: a.> AS OUTLINED UNDER "SALARIES & WAGES' ABOVE. YEAR 2: 1. INCOME: IT IS ASSUMED THAT INCOME, (FOOD, BEVERAGE. & OTHER>, WILL INCREASE BY NOT LESS THAN 12::1. IN YEAR 2. THIS INCREASE IS REFLECTIVE OF THE ACTUAL INCREASES EXPERIENCED IN EACH OF THE LAST FOUR YEARS AT THE NORTH ISLAND O'CLUB. IT IS FURTHER ASSUMED THAT PRICING WILL INCREASE BY 4::1. IN YEAR TWO TO KEEP PACE ~ITH THE 4::1. COST OF LIVING WAGE INCREASE BUDGETED TO BE GIVEN TO ALL SALARIED & FULL TIME EMPLOYEES. II. EXPENSES: A.> COST OF GOODS: 1. > FOOD: a.> WILL REMAIN RELATIVELY STABLE AT 28% WITH THE 4::1. PRICE INCREASE. 2.) BEVERAGE: ,; a. > WILL REMAIN RELATIVELY STABLE AT 22% WITH THE 4% PRICE INCREASE. B.> SALARIES & WAGES, TAXES & "BENNIES" : I.> AS MENTIONED ABOVE THE FIGURE REFLECT A 4::1. COST OF LIVING INCREASE FOR ALL SALARIED & FULL TIME WAGE GRADE EMP~OYEES. TAXES & "I3ENNIES" ALSO REFLECT THE 47. INCREASE. C.> ALL OTHER DIRECT DEPARTMENTAL EXPENSES: 1.> IT IS ASSUMED THAT THESE COSTS ARE RELATIVELY "FIXED" IN NATURE AND DO NOT VARY WITH VOLUME. D.> GENERAL & ADMINISTRATIVE EXPENSES: . 1. > SALARIES & WAGES, TAXES & "BENNIES" ADJUSTED AS OUTLINED ABOVE. 2.> WORKERS COMPo & OCCUPATIONAL INSURANCES: a.> INCREASES IN WORKERS COMPo REFLECT THE 4::1. COST OF LIVING ALLOWANCE. b. > IT IS ASSUMED THAT OCCUPATIONAL INSURANCES ARE RELAT.IVELY "FIXED" IN NATURE AND DO NOT VARY WITH VOLUME. IP,t/ l/ .) PROPERTY TAXES: a.) ASSUMED TO BE "FIXED" IN NATURE & DO NOT VARY WITH VOLUME. .) LICENSES, FEES & BUSINESS TAXES: a.) ASSUMED TO BE RELATIVELY "FIXED" IN NATURE & DO NOT VARY WITH VOLUME. .) LEASE EXPENSE: a.) PER PRIMARY LEASE. .) UTILITIES EXPENSE: a.) ASSUMED TO VARY WITH VOLUME AND REFLECTS THIS. .1 ALL OTHER G&A EXPENSES: a.l BASED ON HISTORICAL OPERATIONAL DATA & EXPERIENCE, BE RELATIVELY "FIXED". / MOST ASSUMED TO OTHER EXPENSES: .) SALES INCENTIVES DIRTRIBUTED: a.l ADJUSTED TO REFLECT INCREASED SALES VOLUMES. .u ~O_ME:_ ASSUMED THAT INCOME, (FOOD, BEVERAGE & OTHER), WILL INCREASE BY NOT -HAN 12'1. IN YEAR 3. THIS INCREASE IS REFLECTIVE OF THE ACTUAL INCREASES fENCED IN EACH OF THE LAST FOUR YEARS AT THE NORTH ISLAND O'CLUB. IT ,THER ASSUMED THAT PRICING WILL INCREASE BY 4% IN YEAR TWO TO KEEP PACE HE 4'1. COST OF LIVING WAGE INCREASE BUDGETED TO BE GIVEN TO ALL SALARIED _ TIME EMPLOYEES. (PENSES: COST OF GOODS: . I FOOD: a. I WILL REMAIN RELATIVELY STABLE AT 28% WITH THE 47- PRICE INCREASE. . ) BEVERAGE: a. ) WILL REMAIN RELATIVELY STABLE AT 227- WITH THE 47- PRICE INCREASE. SALARIES 8< WAGES, TAXES & "BENNIES" : .) AS MENTIONED ABOVE THE FIGURE REFLECT A 47- COST OF LIVING INCREASE FOR ALL SALARIED & FULL TIME WAGE GRADE EMPLOYEES. TAXES & "BENNIES" ALSO REFLECT THE 47- INCREASE. . / ALL OTHER DIRECT DEPARTMENTAL EXPENSES: .1 IT IS ASSUMED THAT THESE COSTS ARE RELATIVELY "FIXED" IN NATURE AND DO NOT VARY WITH VOLUME. 1{)~'I5" " il I I I . I J / oD.)o GENERAL & ADMINISTRATIVE EXPENSES: 1.) SALARIES & WAGES, TAXES & "BENNIES" ADJUSTED AS OUTLINED ABOVE. 2.) WORKERS COMPo & OCCUPATIONAL INSURANCES: a.) INCREASES IN WORKERS COMPo REFLECT THE 47. COST OF LIVING ALLOWANCE. b.) IT 15 ASSUMED THAT OCCUPATIONAL INSURANCES ARE RELATIVELY "FIXED" IN NATURE AND DO NOT VARY WITH VOLUME. 3.) PROPERTY TAXES: a.) ASSUMED TO BE "FIXED" IN NATURE & DO NOT VARY WITH VOLUME. 4.) LICENSES, FEES & BUSINESS TAXES: a.) ASSUMED TO BE RELATIVELY "FIXED" IN NATURE & DO NOT VARY WITH VOLUME. . 5.) LEASE EXPENSE: a.) PER PRIMARY LEASE. 6.) UTILITIES EXPENSE: a.) ASSUMED TO VARY WITH VOLUME AND REFLECTS THIS. 7.) ALL OTHER G&A EXPENSES: a.) BASED ON HISTORICAL OPERATIONAL DATA & EXPERIENCE, MOST ASSUMED TO BE RELATIVELY "FIXED". E.) OTHER EXPENSES: 1.) SALES INCENTIVES DIRTRIBUTED: a.) ADJUSTED TO REFLECT INCREASE SALES VOLUMES. / / /~"''I(, Take a 'looJ~ at. our let.t.ers of recoll'lmendation It) -t/7 - --:- -"-- -::---~":'.~~'--"" l , j ~ Ie '1 / . , PRESTIGE HOSPITALITY SERVICES. INC. Name Executive Committee: C.E.Campion Margaret Patt Oal Smith Emoloyee / Minority Mandy Spencer Morg Stevens Zena Sullivan Irene Bejarano Lawanna Mason Sandra Mason Julia Taylor Management Team Date of Birth Position Annual Salary 4-24-54 11-28-34 11=18-33 President & C.E.O S/Vice Pres.Marketing Sect'y/Treas.C.F.O. $ 40,000.00 25,000.00 25,000.00 Stockholders: 4-11-33 Accountant 6- 1-45 Catering Sales Mgr. 2- 4-45 Purchasing Mgr. 1-16-60 Storeroom Mgr. 7-15-40 Oineing Room Mgr. 6- 2-61 Banquet Mgr. 9- 1-57 Catering Adm. Asst. 25,000.00 18,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15.000.00 Total Salaries Bud~eted 208.000.00 Note: A 11 of the above have 'j nvested into the Company and have taken reduc~d salaries based on the opportunity offered. / / P~'I~ ?-7'_P_~~..r._ ..- ...... Professional Resume of C. E. Campion Work Address: Commissioned Officers' Mess, Box 30, Building "X" Naval Air Station North Island, San Diego, CA 92135 Commercial: (619) 545-6946 Autovon: 735-6946 Home Address: 1040 Isabella Ave., Coronado, CA 92118 Commercial: (619) 435-3643 Professional Historv 9/87-Present: Clubs Division Director Naval Air Station North Island, San Diego, CA Strategically and tactically responsible for the operation of three Navy clubs aboard the Air Station with a combined sales volume in excess of $2.5 M. annually. I am responsible for the development and implementation of new menu concepts at each location, asset management, divisional procurement, budget development and implementation, marketing plans and designing a divisional training program for the 150 employees. Overall sales in my division have increased by no less than 12% per year for the last four years in a row. I am currently operating the single most profitable Naval Officers' Club on the \'Jest Coast of the United States. 4/90-12/91: Moral, Welfare & Recreation Director, (Acting) Naval Air Station North Island, San Diego, CA Immediate Supervisor: Cdr. G.A. Powell, USN Strategically and tactically responsible for the $9. 2M. Morale, Welfare & Recreation Department with over twenty operating units. The units are comprised of recreational units, food service units and a Central Support Services Organization. The Department currently employes over 450 people responsible for providing recreational and social programming to the Active Duty and other authorized patrons. When I relieved my predecessor in April of this year the department had an acid test ratio of .6 to 1 and a minus funds available of <$486,000.00>. As of the end of December, 1990, the department's acid test ratio was 2.7 to 1 with positive $575,616.90 funds available. This represents a positive swing in cash flow of $1,061,000.00 in nine months. This was accomplished while working only half days as Acting Moral, Welfare & Recreation Director and half days in my continuing capacity as Clubs Division Director. 11/ "'lf1 11/86-9/87: Manager, Commissioned Officers' Club Naval Air Station North Island, San Diego, CA Immediate Supervisor: Mr. J.P. Mauro I Strategically and tactically responsible for the fiscal and operational running of the Officer's Club. Under my direction the facility has introduced five new menu concepts in four years and .has had 8 sustained sales growth of not less than 12% per year while accomplishing a positive net profi tabili ty swing of over $460.0K. I have personally overseen the procurement and installation of over $600.0 K. in capital improvements to the facility in the last four years. 3/86-11/86: Director of Food and Beverage Sheraton Round Barn Inn, Santa Rosa, CA Immediate Supervisor: Mr. Thomas Zeisel I was responsible for the day to day operations of the Food and Beverage department which consisted. of: a 280 seat gourmet restaurant, 8 200 seat cocktail lounge and in excess of 5000 sq. ft. of catering space. The sales volume for the operation was 52.5 M. with a net departmental profit of just over 20%. I was responsible for the designing, developing and implementation of all new menu concepts, the "Priority One" training program and developing all S.O.P. 's relating to the day to day operations. .1 was also responsible for developing and implementing the food and beverage marketing plan. I had seven mid-level managers reporting directly to me. . 2/85-10/85: Director of Food and Beverage Sheraton Tacoma Hotel, Tacoma, WA Immediate Supervisor: Mr. Robert Van Bergen I was totally responsible for the operation of two restaurants, two lounges and catering sales and banquet services for up to 2400 people. I designed, developed and implemented eight new menu concepts in eight months. I supervised, directed and coordinated the efforts of 145 employees in 6 departments generating 8 $4.0 M. sales volume and producing an 580,000.00 per month departmental profit swing in only eight months time. I . . /p,>O , ~ 12/83-12/84: Western Regional Food and Beverage Director Mariner Management Corporation, Houston, TX Immediate Supervisor: Mr. Larry Ahlquist Totally responsible for coordinating the operation of eighteen restaurants, fifteen lounges and night clubs and catering operations in ten hotels located in three states with total regional sales in excess of $22.0 M. a year. I designed, developed and implemented physical and conceptual renovations in five restaurants and three bars/night clubs. I supervised the opening of the food and beverage departments in two new hotels and during the acquisition of two others. I developed, implemented and monitored service, kitchen and catering department standards region wide. 5/82-12/83: Director of Catering Doubletree Hotel, Houston, TX Immediate Supervisor: Mr. William Stafford Responsible of the selling, ballroom and meeting space of sales with a 30% departmental sales and service personnel. marketing and servicing of the the hotel. Produced $2.0 M. in net profit, while supervising 35 1/80-5/82: Catering Sales Representative Westin Hotels, Tulsa, OK Immediate Supervisor: Mr. Donald Drayne Booked catering sales business in excess of $1.0 M. per year. 5/79-10/79: Executive Chef Lost Valley Ranch, Sedalia, CO Immediate Supervisor: Mr. Robert Foster, Jr. Responsible for the planning, procurement and production of 450 meals per day, seven days a week during the summer season. 4/78-10/78: General Manager Ithaca Yacht Club, Ithaca, NY Responsible for designing, developing and implementing season's program including budgeting, grounds and maintenance, menu design and development, personnel special event programming and teaching programs. the entire facilities functions, /I)"'~/ Educational Historv BS Degree 1979 School of Hotel Administration, Cornell University Classes and Awards Pilot Course: Management of Navy Clubs and Messes: Pilot Course: U.S. Navy Advanced Club Managers Course: Task Force Leader Navy Wide Clubs Operational and Financial Standards: Sustained Superior Performance Awards 1989 and 1990: Outstanding performance evaluations 1988, 1989, 1990. Member Chef de Cuisine Association. Personal Happily Married: Height: 6'5"; Weight: 200#: Health: excellent: Member Cornell Society of Hotelmen: Flag Member Coronado Yacht Club: Owner of the oldest privately owned Corinthian yacht in the Ancient Marnier' s Sailing Society of San Diego: I have more the 20,000 miles of blue water cruising and racing experience. Salary history and references available upon request. /IJ,5'eJ- ;" ~: ~, '., i ..~ I . I DAL O.SMITH 8914 Memike Place San Diego,CA 92119 (619) 697-1625 EMPLOYMENT: ------------------------------------------------------------ 8/78 - Present 3/76 - 8/78 6/72 - 3/76 11/69 - 6/72 6/62 - 11/69 6/56 - 6/62 EDUCATION: ACCOUNTING PRACTICE - Houston, New O~eans San Diego. dba, The Mardal Company / Self Employment related to Corporate Accounting,Planning and Problem sOlving. International Finance (see attached): Swiss Bank Corp. - membership 1979-1983 CONTROLLER, New Orleans Fasullo DruQs.Inc. CFO of Retail drug store chain of twelve stores in the New Orleans Area. Joseph Fasullo,president 35 Howard - Gretna,LA (504) 367-8877 SENIOR ACCOUNTANT - C.P.A Firm DuPlantier.Hraomann.HoQan ~ Maher Richards Building New Orleans,LA 70112 Large Local Firm 40+staff members. Supervisory position on Audits. Corporate tax and financial planning. A.J.DuPlantier C.P.A. (504) 283-0696 James Maher C.P.A. (504) 464-7967 FAR EAST PARTNER in Hong Kong International Arts & Imoort Co. Queens Road,Yictoria,Hong Kong.Family business with main offices in Alanta. CFO position with financial management assist to client manufacturing. SECT'Y/TREASURER and GENERAL MANAGER International Cold StoraQe.lnc. Arabi,LA . Employed by the same ownership during this time.period inwhich I began as Controller of the Parent Company, W.H.HodQes & Co. Inc. Also on the board of directors of HodQes Stockyards. Inc. . SENIOR ACCOUNTANT - C.P.A Firm Denis A.Barry & Co. New Orleans Clifton A.Morvant,C.P.A. 8008 Spruce St. New Orleans,LA 70118 (504) 861-7169 Tulane University,New Orleans - BBA with / major in Accounting - C.P.A. 10 years in Public Accounting, also attended Loyola University,New Orleans - Courses in Computer Science. /P --5:; ...~-_. -.,.. -~-,' _..~.~.:.. ~~~ - , ..... -. . In an associated group of professionals that were directly involved in arranging long term international funds for the private sector and government clients. Retaining membership in this inner circle was based upon the individual credibility and performance of oach participant who could originate or conclude bank to bank transactions using only prime world bank collateral guarantt;les. As difficult as this appears from outside the banking community, much can be accomplished by who you know and trust and by,pooling your efforts with others, which was the reason to form such a close knit group where capacity for outside principals were examined closely by members who were also agents for Interpol's central office in Paris and the BFV (Bundesamt Fur Vorfassungsschutz), West Germany's counter intelligence service. / The group included lendors agents, funds trustees, and brokers. Loan points were the accepted method of compensation, communication by Telex, and rates.quoted to tie into USOR, the London interbank offer rate, which is tho floating interest rate at which large banks lend to each other. B-class and money-center banks and foreign central banks were only used to provide the flow of Mideast petrodollars in which the receiving bank could pass down funds to the end user borrower in accordance with ICC rules of finance (International Chamber of Commerce). Transactions were usually above 50 million. This association was formed around a Swiss banking corporation in Basel. ''A few of the contacts were confidentially placed in the following nine of the largest commercial banks in Contral Europe. SWISS BANK CORPORATION UNION BANK OF SWITZERLAND CREDIT SUISSE DEUTSCHE BANK DRESDNER BANK COMMERZBANK CREDITANANSTALT - BANKVEREIN AMSTERDAM - ROTTERDAM BANK KREDlESANK OF LUXEMBOURGE " Other brokered transactions within the group included interest rate swaps which were agreements where two banks exchange interest payments on tho sam9 amount of money for the same period of time. No principal is evor involved only swaps'between noating and fixed rates on speculation of either bank depending upon rates moving oither up or down. Our Houston group also arranged for long term oil purchaso contracts between producers and refiners and payment delivery schedules were financed a9d letters of credit issued in compensation for a small price per barrel off loaded. , Lendor's agents and trustees in the group had fiducia.ry responsibility and approved all new members. A broker had to bo recommended and if American, a file is created on ' him at NSA and CIA. Dal O. Smith, Member 1979-1983 /IJ-f; o I '. . i I ~ . . RES U M E Margaret patt 8914 Memike Pl. San Diego, CA. 92119 (619) 697-1625 SUMMARY OF EXPERIENCE: Self employed business woman, with past ownership of various business in San Diego, with emphasis on Commercial Real Estate Sales and sales of Companies. Very flexable in transition from one enterprise to the next, which has resulted from many years of on hands experience in adminstration and supervision, also including the following: Personnel Training .., Office Management ... Business Coordination .,. Billing and Collection ... Public/ Relations Marketing WORK HISTORY: 12/83 to Present - In San Diego 4/78 to 12/83 In San Diego 3/73 to 4/78 In Ohio EDUCA nON: Business promotions ... Advertising Merchandising ... New Business Start up Self employed Real Estate Broker with speciality in Commercial Real Estate. Member of San Diego Board of Realtors Top Producer and Top Listing awards. Private Investor in income properties. Partner in the Mardal Company. California Insurance License. Owner and president of Margaret's House of Beauty Owner and President of Pure Water for Less, water systems. Independent contractor for Data Link design and sell phone systems, largest account - County of San Diego. Fashion representive for Fashion Wagon. Responsible for organizing, promoting and mangeing fashions shows. Origi~ated the "~ngaged girls program", coordinator for Weddings for Welcome Wagon Co. LakelandCollege, Ohio - BBA degree in Bus. Adm. /P'5> ./ l , I " , Attachment C ~l1BL_EAS.E This SUBLEASE is made and entered into this -11- day of /?I~ ,19<)2 by and between AMERICAN GOLF CORPORATION, a Cali ornia corporation (referred to variously hereafter as "Sublessor". llLessee", or IlAGe" as the nature of the agreement may require). and PIIS COMPANY, a legal business trust,' dba PRESTIGE HOSPITALITY SERVICES (referred to variously hereafter as "Sublessee" or "PHS" as the nature of the agreement may require). RECIIA.L.s' A. AGe is lessee of that certain restaurant and bar facility commonly kllowlI as South Bay Hestaurant and more particularly describpd ill Spclioll 1 helow ("Restaurant" or "Premises"), localE"d at thc' Chllla Vista Golf COllrse>. City of Chula Vista, California. pursuanL tn that c(;-)rLain Lease Agree'ment ("Lease") entered inlo July I, 1986 between The City of Chula Vista. a municipal corporation. ("Lessor" or "City"). as lessor, and Sublessol' as lessp.p. B. A copy of the Lease is attached to this Sublease as ExhiJ2iL_~. Exhibit A is made a part of the Sublease for all purposes and may be amended only by mutal consent of Lessor and Lessee. C. PIIS desires to sublease from AGC the Premises upon the terms, covenants and conditions hereinafter set forth. NOW, THEREFORE, with reference to the forgoing Recitals ami in consiJeratioll of the mutual promises and covenants contained herein, Sublessor and Sublessee hereby agree as follows: MJREEMENT .;J".J~€" l. Prel.l!Jl'e.,?. Effective~~, 1992 (the "Effective Date"), Sublessor subleases to Sublessee and Sublessee subleases from Sublessor the Premises consisting of (a) a restaurant. bar, golfers lounge and banquet facilities commonly known as South Bay Reasturant located at the Chula Vista Golf Course in the City of ChtJla ViHLa. Sail lJi('go COllnty. CnJ irot'nia, (Il) ^ Ilotl.pxclusivp t-ighl to use the walkways, landscaped areas, and grounds immediately adjacent to the Hestaurant, and (c) a nonexclusive right to use the parking lot adjacent to the Restaurant building, which parking lot is used by the Restaurant, the Chula Vista Golf Course and the genc>rn1 pub1 Ie for accpss to the ndjncpnt jogging/riding trnils. The parties acknowledge that the Premises do not include the lower level of th,' HE'stauI"ant building, which is used by AGC for storagE', 1 /I)',>/' maintpnance, and repair of golf carLs used in the operation of Lhe Chuln Vista Golf Course. Sublessor and Sublessee shall cooperaLe with ench oLher as to their joint or separate uses of the Premises. 2. Personal Property. (a) Owned Property. As part of this Sublease, Sublessor also subleases to Sublessee and Sublessee subleases from Sublessor all personal property now used in the operation of the Premises (the "Personal Property"). A listing of the Personal Property subject to the Sublease is attached to this Sublease as Exhibit "B". All of the Personal Property which is listed on Exhibit "B" is owned by City or Sublessor (the "Owned Personal Property") with the specific exceplion of those items of Personal Property which are listed'as leased and which are referred to in Section 2(b) of this Sublease and Exhibit "C" lo this Sublease (the "Leased Persollal ProperLy"). Sublessee's l'psponsibilit.y for repair and maintenance of all Personal Properly, bolh Owned and Leased, is described in Section 12 of this Sublease, as well as Sublessee's obI iga lions wi lh regard to the return of said Personal Property upon f~xpjrat.i()lI.or p:ll']ipr Lermination of this Sl1b]C'[\sp. (I)) Lp.ast'd_Jll..yp~'",~_Ly.. SlIl,ll"sSP(? also agl"C'l"S Lo. and as a condiLion of this SubleasE' shall, assume all Ip3scs of equipment ("Eqllipml:.:'llt. Lpasps"). except the ]c-:-ase for the copy machine, used in Lilt.' opera L i UII of lhe Ih~s Laurant . If. however, Subl essol' and Sublessee nt'" un'lbJe to arrange wilh lhe third-party lessors of the Leased Personal Property for the successful assignment and assumption of all acceptable Equipment Leases (without cost increases to Sublessee and gain the release of Sublessor thereunder) on or after the Effective Date, Sublessor acknowledges that Sublessee shall not be bound or obligated to assume or satisfy Sublessor's obligations in any form. In the event Sublessee does not assume a particular Equipment Lease pursuant to the immediately preceding sente'nce and Sublessee desires to continue to use the Leased Personal Property subject to such Equipment Lease, then Sublessee shall pay to Sublessor additional rent under this Sublease equal to the amount of rent and other monetary obligations of Sublessor under such Equipment Lease, and such additional rent shall be due and payable on or before the time when Sublessor is required to pay Lhe rent and other monetary obligations under such Equipmrnt. Lr;HH-". ^ 11Rling of nIl Equipmpnl J,eC\sps subjPct to assignlllent and assumplion is attached Lo this Sublease as Exhibit "D". (c) that certain License (the Liquor License. Sublessor presently holds title to On-Sale General Eating Place Alcoholic Beverage "Restaurant Liquor License"), No. 47-172390, and 2 /p,5? Duplicate License No. 47- 172390-001 issued by the California Departmcnt of Al cohol ic Beverage Control ("ABC"). Sublessor agrees to sell the Restaurant Liquor License to Sublessee for six thousand dollars ($6,000.00) ("Liquor License Purchase Price") and for the fair market dollar value of the existing liquor inventory as of the Effective Date, and Sublessee shall pay all transfer fees, escrow fees, and other charges for transfer of the Restaurant Liquor License to Sublessee including all fees for a temporary license. Sublessee shall be responsible for consummating the transfer of the Restaurant Liquor License to Sublessee including preparing all applications and other documents and opening escrow, and Sublessor agrees to cooperate with Sublessee in all resonable respects. Subl essor further agrees to execute a surrender form as part of the transfer p"ocess in order that Sublessee may also obtain a temporary 1 icense. Sublessee hereby agrees tha t upon the expiration or earlier termination of this Sublease, Sublessor shall have the right to huy back the Restaurant Liquor License from Sublessee for the Liquor License Purchase Price and for the fair market dollar value of the existing liquor inventory, (to a maximum dollar valup not to excecd $15,000.(0), as of the new Effcctive Date. If Sublessor elects to buy back the Restaurant Liquor LicpnsQ, Subl essor shall be responsible for consummating the transfc'r of the' R"staurant Liquor License to Sublessor including pr<:"p:tr'ing all applications and oLhE"t' doctllllC'nls and opening PHero\\', and Suldess,'p agrees to cooperate with Sublessor in all reasonable resl't'cLs. SublessC:'e further agrees t.o execute a surrender form as part of th,.' t,'ansfer process in order that Sublessor may also obtain a temporary license. If Suulessee is not able to obtain a temporary 1 iquor license prior to the Effective Date, Sublessor and Sublessee shall enlpJ' iIllo a management agreement., in form and substance acceptable by the parties, whereby Sublessee shall manage the sale of alcoholic beverages at the Restaurant on Sublessor's behalf and for Sublessor's account until such time as Sublessee's temporary license is issued. Sublessee agrees to indemnify and defend City and Sublessor from any charges stemming or resulting from the sale or consumption of alcoholic beverages on the Premises beginning on or after the Effective Date and Sublessor agrees to indemnify and defend Sublessee from any charges stemming or resulting from the sale or consumption of alcoholic beverages on the Premises prior to the Effective Date. 3. Se,.-v iy_elVendor C;ontracts. Sublessee al so agrees to the assumpLion of all Sublessor's obligations under the pre-existing sel'vic(l cOlllracLs ("Service Agreementsll) with various vendors provirlpd that each contract -assumption does not result in an immediate and unreasonable increase in fees paid for said services used in thl' operation of the Restaurant. Sublessee shall havE' thirty (3U) days from the Effective DatE' to examine all Sl'l'vice 3 /pr-5'r AgreemC'nts nnu if, in the exercise of its reasonable commercial judgpm0nt. Sublessee determines that it would be in the best itlLc'n'~-;L of Suhl(~8S('C' IloL Lo assuIIIP a particular Service Agrpl..;>IHPIlL. Sublessor agrees to attempt to work with Sublessee in seeking to cancpl the Sp,'viep Agreement in fluestion. If Sublessor and Sublpssee cannot satisfactorily arrange with each third-party vendor' for lhe accpplable assignmenL and assumpLion of each Service Agrepmpnt (and the ,'elease of the Sublessor thereunder) on or after the Effective Date, Sublessor acknowledges that Sublessee shall nQi be bound or obI i ga tcd to assume or sat i s fy Subl essor' s obI iga t ions in any form. A listing of all Service Agreements subject to assumption consideration is attached to this Sublease as Exhibit liE". 4. Other Contracts, Sublessee also agrees to assume and perform all Sublessor's obligations under all contracts and agrcempnts providing for the use by third-parties of any part of the Premises on or after the Effective Date, including banquets, meetings, weddings, parties, and other group functions (colh,ctively, the "Contracts"). Sublessee hereby agrees to indemnify, dpfcnd and hold hamless Sublessor from and against all claims. damages and 1 ialJi 1 i ties relating to and arising from the perfon""nce by Sublessee on or after the Effective Date of all Sublessor's obligations under the Contracts. A list of all known Contracts CIS of the Effective Date is attached to this Sublease as Exhibit "F". Priol' to the Effective Date, Sublessor shall provide Sublessee a comprehpnsive listing of all Contracts with prepayments "on account" and shall pay to Sublessee an amount equal to all deposits received by Sublessor for Contracts relating to the period on or after the Effective Date. , 5. Incorporation of Lease. Except as otherwise specifically provided in the Sublease, Sublessee agrees to perform, observe, abide by and be governed by all terms and obligations of Lessee under the Lease, and Sublessee agrees that the Lease shall remain in fu] I force and effect as applied to Sublessee. Sublessor shall be entitled to enforce all terms and provisions of the Lease against Sublessee as if Sublessor were. in fact, the Lessor. For pur}>os(~s of Sublessee's performance of all convenants, obligalions. and l.el'lus of UlP Lpase, Sublessor sha]] be considered the "Lpsso1''' under the !'<'asp and Sublessee shall be considered the "Lessee" under the Lease. G. Mo<!itjcations to only, the provisions of subject to the following Lease. For purposes of th i s Subl ease the Lease, as incorporated herein, are modifications or deletions: 4 IP~.57 (a) In .\11 JH'ovisiollS l'pquiring Lhl" approval or consenl of City, Sublessee shall first bL' required to obtain the approval or consent of Sublessor. Sublessor shall forward to Ci ty such reasonable requests as Sublessee may submi t for approval and/or consent from City. Subject to arbitration, Sublessor shall not unreasonably withhold its approval for submitted items. (h) The following Sections of the Lease shall not be incorporated herein by reference: Sections 4, 6, and 27. --- - 7. Term. The term of this Sublease ("Term") shall commence on the Effective Date. Unless otherwise extended or terminated earlier as provided below or pursuant to the Lease, the Sublease Term shall end June 30, 1996. (a) Pursuant to the terms of Section 4(A) of the Lease, Lessee has the option to extend the term of the Lease for two periods of tell years each (the "Option" or collectively, the "Options"). The parties acknowledge and understand that these "Opt ions" pass through unencumbered to the benef i t of Subl essee provided that Suhlpssee is not in breach or default of lhis Sublease or the underlying Lease and provided that Sublessor intends to exercise its Option under the Lease. It is acknowledged lhaL ],psSPC' musL givE' Lessor Jlolicp of iLs intention to E>xPt'cisp the Option no later than 180 days prior to the expiration of the Lease term then in pffect. Therefore, Sublessee must delivpr its written notice to Sublessor no later than 210 days prior to the expiration of the Term of this Sublease then in effect of Sublessee's desire to extend the Sublease Term for the Option period, and in such event Sublessor agrees to exercise or not to exercise the Option without delay. Nothing contained in this section shall construe to require Sublessor to pass through the Options unencumbered to Sublessee if Sublessee is in default or breach of any of its obligations under the Sublease or the Lease. Subject to arbitration, Sublessor shall be the sole judge of what constitutes a breach or a default. In the event that Sublessee is in breach or default, Sublessor may still elect to exercise its Option, and such exercise shall not waive Sublessee's breach or default or any rights or remedies of Sublessor under the Sublease or the underlying Lease. In the event that Sublessor does not exercise its Option with the City under the Lease: (1) Sublessor shall have no liability to Sublessee whatsoever; and (2) nothing in this spction shall he construed to prohibit Sublessee from entering negotiations directly with the City for a new Lease for the Premises. (b) If Sublessor has-not received from Sublessee written not ice of Sublessee's desire to extend the Sublease Term in accordance with Section 7(a) above, then the Sublease Term shall be deemed terminated effective June 30, 1996. 5 /tJ'J,O (,_,) Tht' parties acknowledge and understand that Section 218 of the Lease provides that City has the right to cause an early termination of the Lease in the event the Premises are required for construction of public streets or drainage facilities for the Sweetwater HiveI' Flood Plain. In the event of such early termination Sublessor agrees to give Sublessee the same six (6) months written notice City is required to give Sublessor under Section (d) The parties acknowledge and understand that City is presently negotiating with third parties (including Sublessor) for redevelopment of the Premises as a hotel/convention center/golf complex ("Project"). Subsequent to early termination notification, Sublessee hereby waives any objection that Sublessee may have to City or its Hedevelopment Agency proceeding with and implementing the Projecl. Sublpssee and any Sllccessor to Sublesspe's inlpt'psts under this Sublease hereby waive any claim against City or its Redevelopment Agency for any relocation benefits under the ea] j fornia relocaLion laws or t11Hlel' similar local, stale, or federal laws, and any claim for goodwill value of thE'ir business in any c::'lIdnenl domain proceeding or other proceedings. and any right which they may have to participate in the Project. The pal"ties acknuwledge and understand that notwithstanding the Term of this Sublease as provided in this Section 7, in the event City or its Redevelopment Agency proceeds with the Project, then this Sublease shall be terminated effective 30 days prior to the commencement of construction with respect to the Project. In the event of an early termina lion of thi s Sublease pursuant to subparagraph (c) or subparagraph (d) of this Section 7, Sublessee shall have no rights or remedies as against City or Sublessor, including any right to recover damages, losses, costs, or other compensation as a result of such early termination. 8. Hell!. Sublessee shall pay to Sublessor the same amount of renl as Sublessor is obligated to pay the City pursuant to Section 5 of lhe LE'ase. The parties acknowledge and understand that the minimum monlhly renl now in effect under the Lease is four thousand thre hundred eighty-four dollars ($4,384.00), and that the miminum monthly rent shall be adjusted on July 1, 1992 pursuant to the Lease. Sublessee shall deliver to Sublessor on or before the lOth day of each month a slatement 01' gross sales, certified by C.E. Campion in the form in Exhibit "I". Sublessee's statement of gross saIps shall he in compliance with Spc:Lion 5 of lhe Lease. The renl due and owing by Sublessee shall be paid to the Sublessor on or bpfore lhe lOth day of each month at the same time as Sublessee delivers to Sublessor the statement of gross sales. Payments made by Sublessee pursuant to this Section 8 or Section 9 below shall be made to Sublessor at the following address: American Golf Corporation, 1633 26th Street, Santa Monica, California 90404, Attention: Kathy Mallari. 6 Ill"" / 9. ^ddL~i9-'lal Hent. In addition to the rent set forth in Section 8 of this Sublease, Sublessee shall pay to Sublessor the following addiLional sums monthly: (a) $200.00 for real property taxes and assessmenLs and possessory interest taxes against the Premises. If there is an increase in lhe:> amounL of real propprly taxes and assessmenls or possessory IllLeresL taxes which Sublessor is obligated to pay with respecL to the Premises, then the amount to be paid by Sublessee pursuant to this Section 9(a) shall be equitably adjusted to reflect the increase, and the amount of such adjustment shall be mutually agreed to by the parties. (b) $385.00 for maintenance and upkeep of the parking lot and the adjacent walkways and landscaped areas. The amount paid by Sublessee under this Section 9(b) shall be adjusted on July 1. ]993 and on Ju]y 1 of each year t1,preafter by the percentage increase in the San Diego Area Consumer Price Index for All Urban Consumers as compiled by the United States Department of Labor. Bureau of Labor Statistics for the period June I, 1992 through July I, 1<J<J3 for the first adjustment date of July I, 1<J<J3 and for the 12 monLh pet'iod preceding each subsequent adjustment date. (c) $175.00 to reimburse Sublessor for the cost of the premiulII al located to the Premises for the fire and extended coverage properly insurance maintained by Sublessor pursuant. to Section 15(,,) of this Sublease. The amount to be paid by Sublessee pursuanL Lo this subparagraph (c) shall be equiLably adjusted frolll time to time to reflect any actual increases or decreases in such insurance premiums, and the amount of such adjustment shall be mutually agreed to by the parties. The amounts to be paid by Sublessee pursuant to subparagraphs (a), (b), and (c) above shall be paid to Sublessor at the sallie time as Sublessee pays the rent pursuant to Section 8 above. Sublessee shall pay prior to delinquency all taxes assessed againsL the Personal Property and any other personal property owned by Sublessee and used in the operation of the Premises. 10. 1esso!____~_~9n"'ent. The part ies acknowl edge that, pursuant to SL~(_: Lion 17 of the Lease t Lessor I s prior wI'l L Len Gonsent. t.o any subletting of the Premises is required. Therefore, the parties' execution of this Sublease and their performance thereunder is subject to and contingent upon -Lessor's giving its consent to this Sublease, and the parties hereto agree to cooperate and use their best efforts to obtain Lessor's consent hereto. Sublessee shall have no further right of subletting or assignment of the Sublease. 7 /~"'(,;J.. J I. G(JlIstLL..igIl_9J:_.r.~~~!IL:hSeS. (a) .In<3~)~(:'J:,j_Q.n. Subleasee has had the opportuni ty to fully insl'<,<:L the Premises and has saLisfied iLself as to the genera I cond i Lion of the Premi ses and agrees to accept the Premi ses in "as is, where is" condition. Sublessor warrents that it has received no written notice that the Premises are in violation of any applicable laws, regulations, governing ordinances and codes. If after the Effective Date, the parties mutually agree that the Premises wel'e Ilot in compliance with such laws and regulations as of the EffecLive Date and such non-compliance can be attributed to Sublessor's prior neglect or oversight from the time when said Premises were under Sublessor's direct control, (July I, 1986 through the Effective Date), Sublessor agrees to remedy any and all items of non-compl iance at its own expense. Sublessee acknowledges that except as provided in this Section 11(a), neither Sublessor nor Sublessor's employees or agents have made any representations or warranties as Lo the condition of the Premisies, including any representation as Lo the suitability of the Premises for the Sublessee's inLended uses. (il) RClQ.L-Bepairs. Sublessor explicitly acknowledges that the Prpmise's roof leaks and ia in need of repairs. Sublessor agrees, at j Ls own expense, to make whatever repairs are necessary to correct the leaking roof within 180 days of the Effective Date. Any subsequent repairs and maintenance of the roof of the Premises that may be necessary during the Term of this Sublease shall be performed by Sublessee at its expense. 12. Maintenance and Repairs. (a) Subject to the terms of Section 10 of the Lease, Sublessee shall be responsible for all maintenance and repair of the Restaul'ant Premises, Personal Property and any personal property owned by Sublessee used in the operation of the Restaurant Premises. Sublessee agrees to maintain the Premises and the Personal Property in good working order, repair and condition. Upon expiration or earlier termination of the Sublease Term, Sublessee sha 11 be obI igated to surrender the Premises and the Owned Personal Property (or replacement personal property of comparable worth and quality) to Sublessor in a condition at least as good as Lhe condition in which Sublessee received the Premises and the Personal Property as of the Effective Date and in good working order and repair. (b) Notwithstanding' Section 7 of the Lease, Sublessor shall retain responsibility for customary maintenance and upkeep of the parking lot shared by the Restaurant and Chula Vista Golf Course. SulJlessee's liability for any miIlor. cllslomary rnaintetlance 8 1~.,t,:J and upkeep during the Term of this Sublease will be limited to 50% of the costs incurred by Sublessor for any "normal and reoccuring" minor customary maintenance and upkeep. It is expressly understood by both parties that Sublessee shall not be monetarily responsible for any major, (capital improvement type), repairs to the existing parking areas during the Term of this Sublease. Sublessor shall also be responsible for maintaining the landscaping around the Restaurant building, Sublessee's liability for same is limited to the amount stated in Section 9(b) of this Sublease. Sublessee shall only be responsible for repairing or replacing any damage or deslruction to the parking lot or landscaping upon presentation of reasonable proof that said damage was caused by Sublessee or its employees, and agents, and/or its cuslomers, invitees, or guests patronizing the Sublesse's portion of the co-occupied Premises. (e) Sublessee must obtain Sublessor's prior written approval b,.'fore commencing any repairs costing over $1,000.00 unless such repairs are required Lo be made due to an emergency situation. Sublessee alone exercises sole discretion on what constitutes an "emergencyll. 13. AlteraLions. Subject to lhe terms of Seclion 8 of lhe Lease, olher' than Lhe improvements lisled on Exhibil "II" Lo Lhis Sublease, Sublessee shall not alter either the exterior or interior of the Premises or change any structural, mechanical or electrical component of the Premises without first obtaning the prior written consent of Sublessor and City. 14. Utilities. Upon the Effective Date, Sublessee shall, at its own expense, arrange to have transfered to Sublessee all utilities, including but not limited to water, gas, electricity and telephone service used in the Restuarant operation of the Premises. 15. 1 n.'3.J!!:.'!nce . (a) Sublessor's Coverage. Sublessor shall maintain all prilTl:1ry insllrance as J'pC]l1ired hy Section 11 of the Lease, except fat' that inslIt':1IIf"C' covPI'ages mainLained hy SuhlpsfH'p as specifically noLed in Section 15(b) below. Sublessor agrees to nalll[~ Sublesspe as additional insured on Sublessor's Comprehensive Public Liability insurance policy as it relates to the parking 10L and Lhe walkways, the landscaped areas and lhe grounds immedialely adjacent to the Restaurant Premises. ( b) Sublessee's Coverage. Sublessee agrees to procure 9 /O---/,o/ and mainLaill Sublease the' al Sublessee's expensp. during following insurance covPI'age~: the Term of this (i) Sublessee shall mainlain properly insurance on the HestauranL building and Personal Property contents insuring agaillsL loss O!" <lalllngp by fire, lightning, and/or any oth('1' }>Pl'ils insurable under the form of all risk coverage then available in the amount of the Sublessor's Property Insurance policy deductible, cur'r'Plllly lhp cl('c1llC~lihlp under" SuhlC"sso1"s Pt"oppt'ly ]nsurancp is SSO,OUU.OO. This coverage shall be primary to Sublessor's Property Insurance and shall cover the firsL dollar of any loss or damage. This coverage shall have no co-insurance provisions. This coverage shall have a deductible not in excess of 51,000.00 and Sublessor shall be named as loss payee. Upon the occurence of any loss or damage covered by this insurance, Sublessee shall be responsible for paying the deductible. (ii) Sublessee shall insure all personal property owned by Suh]essee located in the Hestaurant building, in an amount not to exceed 530,000.00, against loss or damage by fire, lightning and/or' oth",' pel-i]s insurable under the form of extended covel'age then available. (iii) Business interruption insurance a~ainst losses due to fire, lightning Dnd other perils insurable under the forlll or ext(,lH.led cover..'l.ge then availahle in all amount. not. less than one hundred percent (100%) of the minimum rent due for a nine (9) month period. (iv) Comprehensive public liability insurance including: Ilodily injury, personal injury, properly damage, garage keeper's liability, innkeeper's liability, products liability, contractual liability, and liquor liability in an amount not less than five million dollars (55,000,000.00) single limit per occurrence and naming Sublessor and City as additional insureds. This policy shall contain an indorsement to the effect that such insurance as it relates to the Hestaurant Premises shall be primary to any similar insurance that may be maintained by American Golf Corporation. (v) Worker's Compensation and employer's liability insurance as required under applicable law. (vi) not !pss than one nand ng Subll.~ssor as' Fire legal liability insurance in an amount hundred thousand dollars (5100,000.00). and aditional insured. (c) Policies. All insurance coverage under this Sublease shall be secured through policies issued by insurance companies of good reputation and of sound and adequate financial respons i bi! i ty which have been approved by Sublessor and Ci ty. Sublessor's approval shall not be unreasonably withheld. Sublessee 10 11J"'~f' UIHh.!!' Sllblp~~s('e's currenL wage guidelines. AGe shall terminate the f.~lIIpl oYIllPIlL of a II HC'slallranL Employc-ps as or Lhp pnti of thp li~y imlllpdiaLp-l.v pr'C'cpc1inp, Lh0 Err0CLivp ll;-tl.r :1nd sh:111 p<lY :111 HesLauntnL Employpc's all wages earllPd buL unpaid Lhrough lhaL daLp. ThereafLer, A(:C shall have no furLher ouligaLion wiLh regard La Lhe Res Laurant Employees. The name of the current employees, thei l' job title and their wages/salaries are indentified on Exhibit "G" to this Sublease. AGC warrants and represents that it has created a Volunlat'y Employee' Beneficiary Association ("VEBA") Trust pursuant to lhe U.S. Employee Retirement Income Security Act, 29 1I.S.C. Sectiun IDOl et seq., and that all vacalion benefits owed to employees are paid from the proceeds of this trust. AGC shall pay vacation benefits to all eligible employees whose entitlement to vacation benefits has actually vested as of the day immediately preceding the Effective Date. With regard to any employee whose ent i t 1 ement to vacation benef its has not yet ves ted as of the EffecLive Date and who remains employed by Sublessee after Sublessee's ninety day probationary period, PIIS agrees it shall credi L such empluype (for the purposes of delermining accrued vacation timp) with the period of time that employee was employed by AGe and for which employee's vacaLion benefiLs had not yet vested. lB. Fe~resentaLions. Sublessor hereby warranLs to Sublessee, as of the Effective representations shall survive the Effective Date: represents and Date, which (a) The Lease is in full force and effect and Lessee has received no notice from Lessor of the existence of any breach or default. (b) No litigation is pending or threatened regarding the Restaurant operations. Subl essor makes no cur]'Pll L op('J'a Lions Reslaur'ant. Other than as specifically set forth above, representation or warranties regarding the of Heslauranl or the future profilabilily of 19. 13,ok_~r's Commission. A broker's commission in the amounl of $17,280.00 shall be paid to the Bigley Group. Sublessor and Suhlessee will each pay $8,640.00. Except for the broker's commission as set forth in the preceding sentence, Sublessor and Sublessee hereby represent and-warrant to each other that no other commission, fee or other compensation is owed to any broker, finder, or other agent in connect ion wi th this transact ion, and each party hereby indemnifies and holds harmless the other party 12 J{)'~" shall deliver La Sublessor certificaL~s of insurance with respect to all of the policies of insurance to be maint<lined by Sublessee undC'r lhis SlIhIC'asC". including pxisling. addilional and rPIlPwal polici(!s; alai ill lhe' casp of insurance aboul Lo expire. Sublpsspp shall deliver La Sublessor cerLific<ltes of insurance with respect to the renewal policies not less than ten (10) days prior to the respective dates of expiration. Sublessee agrees not to change policy deductibles prior to written notification of such intention to Sublessor. (d) Endorsements. All policies of insurance maintained by Sublessee under this Sublease shall contain clauses or endorsements to the effect that such policies shall not be cancelled wiLhout at least thirty (30) days prior written notice from the insurance carrier to Sublessee, Sublessor and City. 16. lndemnificaLion. (a) Sublessee agrees La indemnify, defend and hold harml pss SlI i> I ("ssor <:\IH.1 Ci ly and lhp i r t'(_.sppc L i VP owtlprs. Pilip 1 oypPS and agpnls <"lgainsL any <lnet all claims, damage, loss, judgPIIIPnL, liability and expense, including without limitation attorneys' fees and legal costs, incurred directly or by reason of any claim, action, suiL or proceeding brought by or on behalf of any person or persons for any damage, injury, loss or expense arising out of, occasioned by or in any way attributable to the use, operation or occupancy of the ResLaurant on and after the Effective Date or acLs or omissions of Sublessee, its agents, employees or contractors. Sublessee agrees that the obligations of Sublessee pursuant to this section shall survive the expiration or earlier termination of this Sublease. (b) Sublessor agrees to indemnify, defend and hold harmless Sublessee and its respective owners, employees and agents against any and all claims, damage, loss, judgement, liability and expense, including without linJi taLion attorneys' fees and legal costs, incurred directly or by reason of any claim. action. suit. or procppding brought hy or on behalf of any person or persons for any dalflag(~. injul'Y, Joss or expense arising ouL 01'. occ~asioned by ot' in any way at.t.r'ihllLahlp t.o SllhlesS(H"H lISF' of or' co-ocupanc:y of lht" Premisl"s on and afLer the Effective DaLe or acts or omissions of Sublessor, its agents, employees or contractors. Sllblessor agrees thaL Lh" old igaLions of Suhlessor pursuanL Lo Lhis secLion shall survive the expiration or earlier termination of this Sublease. 17. Staff. screen and consider Sublessor working in Sublessee agrees in good faith to interview, for hiring all current hourly employees of the Restaurant (the "Restaurant Employees") 11 I~"/' ? from and againsl any claims for broker's or at her compensa t i on as a resul t of enlcr.ing iIllo t.his transaction. commissions, finder's fees the indemnifying party's 20. !Ioldjng Over. Upon expiration of this Sublease Term or earlier termination of this Sublease, Sublessee shall immediately vacate the Premises. Any holding over shall create a month-lo-monlh tenancy terminable on 30 days written notice given at any time by either party. All convenants and conditions of this Sublease shall remain in full force and effect during any holding over period, 21. VKcach and Hellleuie~. . (a) The foJlowing even Is shall conslilule a bl'each of th i s SulJ1 case and a defaul t of Sub I essee thereunder: ( I) if Sublessee fails to pay rent or fulfill any olher moneta,'y obligalion of Stlhlessee to Sublessor, and Sublessee fails to cure such monetary default within three (3) days after written notification from SubJessor 10 Sublessee of such default; 01' (2) if Sublessee fails 10 keep, observe or perform any olhel' convenant, ob1 igaLiol1 or lpI'm of Sllb]PBsec lltH1C'l' this Sllb]p<1sP whC't1 dtll7\ lH' called for, and Sublessee fails to cure such default within len (10) days aflc'r writlen notificalion from Sublessol' of such default (provided, however, lhal Sublessee shall not be deemed to be in defaulL if Sublessee has commonced cure and is diligently prosecuting same but is unable to complete such cure within ten (10) days): or (3) if Sublessee shall be the subject of a voluntary or involuntary bankruptcy proceeding, reorganization, or liquidation proceeding commenced by or against Sublessee; (4) if Sublessee shall be adjudged bankrupt, or a receiver be appointed for Sublessee's property, or if Sublessee's interest in this Sublease shall pass by operation of law to any person other than Sublessee; (5) if a voluntary or involuntary lien or encumbrance relating to Sublessee or Sublessee's operation, maintenance or use of Premises is placed on the Premises or any Personal Property and is not removod within sixty (60) days; or (6) the occurrence of any of the evenls set forth in Section 21A(2), 21A(5), or 21A(6) of the Lease. If any of the events identified in the preceding sentence should occur and Sublessee does not cure the default within the lilllP pprioch.; providpd above. Sublessor lIlay ~Ipcl Lo lpt'minaLp lhis Sl1bl('a~;pillllll('dialply and 8('<'1<. all t"PIIIPdips as pl"ovidpd lIIHll'"1" law and equity, In addition, upon the occurence of any of the events set forth in this Section 21, Sublessor shall have the same rights and remedies as City does under the Lease upon the occurrence of a default by Lessee. (b) The following events shall constitute a breach 13 /P"'v g/ of th i s Surd ease and a defaul t of Sublessor thereunder: (1) if Sublessor fails to keep, observe or perform any covenant, obI i p,a L j Oil or' lC".nll of Sub] essor 111H10t' th i s Sub] pase when duo or callpd for, and Sublessor fails to cure such default within ten (10) days afLer' wr'jttennotification from Sublessee of such default (provided, however, that Sublessor shall not be deemed to be in default if Suhlrssor has commrncrd cur'" and is diligently prosecuLing same buL is ullable to complete such cure within ten (10) days; or' (2) jf a voluntary or involuntary lien or encumbr'ance relating to Sublessor or Sublessor's operation, maintnance or use of Premises is placed on the Premises and is not removed within sixty (60) days. If any of the events identified in the preceding sentence should occur and Sublessor does not cure the defaul t within the time period provided above, Sublessee may elect to terminate this Sublease immediately and seek all remedies as provided under law and equity. (c) If Sublessor at any time by reason of Sublessee's default pays any sum or does any act that requires payment of any sum, the sum pa id by Subl essor sha 11 be immedi a te ly due and owing by Sublessee to Sublessor at the time said sum is paid, and if paid at a later date shall bear interest at ten percent (107.,) p"r' annum from the daLe thaL thO' sum was paid by Sublessor' all<1 ullLil Sublessor is reimbursed by Sublessee. proceeding prevailing attorney's (d) In the between Sublessor party shall be fees and costs. event of any and Sublessee enti tIed to legal action or legal under this Sublease, the recover all reasonable 22. Ouiet Enioyment. Subject to the terms ahdconditions of the Lease and this Sublease, so long as Sublessee complies with all of its obligations under this Sublease and the Lease, Sublessor shall secure to Sublessee the quiet enjoyment of the Premises without objection or interference from Sublessor or any party claiming under Sublessor. 2:1. Aryi,J.XilJ,5-'J.!!. Any conLroversy 01' cia im betwepn lhp parlips relaling to this SubleaSe> or the Lease or any olhpr ar,t'("('IIII'nLs I'plaLing hPIT'lo shall fil'sl hp dC'lPI'mil\pd by arbi LraLioll. JII thl-" spiriL of Illutual l'PspC'cL and cooperation bulh parties agree that legal action to seltle dispules shall always be the action of last resort. All arbitration shall be conducted under the Commercial Rules of the American Arbitration Association. All costs associated with arbi~ration shall be born equally by both parties regardless of the outcome of the arbitration. Any controversy concerning whether an issue is arbitrable shall be determined by the arbitrators. Judgment upon the arbitration award 14 /P'v , may be entered in any court having jurisdiction. The institution and maintenance of any action for judicial relief or pursuit of a provisional or ;:.\ncil1ary remedy shall not constitute a wai\'pl' of thp righl (Jf allY party lo submit t.he' conLt'nvpt'sy 01' claim to arid tl'ation i r any other party contests such action for judicial reI icl'. Nothing contained in this Section shall limit the right of either party to pxel'cise self-help rempdies or to ohtain provisional or ancillary remedies from a court of competent jurisdictiofl 1)(' [o1'l:' or during Lhe ]>Pllllpl\cy uf any arbitration nor does the exercise of any such remedy waive the right of either party to resort to arbitration. 24. General Provisions. (a) Captions. The captions and headings used in this Sublease are for the purpose of convenience only and shall not be construed to limit or extend the meaning of any provision of this Sublease. (b) Notices and Addresses. All notices, demands, requests or replies provided for or permitted by this Sublease shall be in writing and may be delivered by anyone of the following methods: (1) by personal delivery; (2) by deposit with the II.S. Postal Scrvic:e as cE'rlifipd or J'egisLE't'C'd mail. t'pLl1rn receipt requested. postage prepaid to the addresses stated below; (3) by pn,paid t"Jegram; or (4) by deposit with an overnight express del ivel'Y service. Notice deposited with the U.S. Postal Service in the manner described above shall be deemed effective three (3) business days after deposit with the Postal Service. Notice by telegram or overnight express delivery service shall be deemed effective one (1) business day after transmission to the telegraph company or after deposit with the express delivery service. Notice by personal delivery shall be deemed effective at the time of personal delivery. For the purposes of notices, demand, request, reply or payment. the address of Sublessor Shall be: American Golf Corporation c/o Chula Vista Golf Course 4475 Bonita Road Bonita, CA 91902 with a copy to: American Golf Corporation 1633 26th Street Santa Monica, CA 90404-4024 Attn.: Legal Department 15 /0-')(;7 The address of Sublessee shall be: PIIS Company 4475 Bonita Hoad "onlla, CA 91902 Alln.: C.E. Campion (c) Governing Law. This Sublease and the rights and liabilities of the parties to this Sublease shall be governed by the laws of the State of California. (d) Severability. If any provision of this Sublease is invalidaled by arbitration, judicial decision or statutory enactment, the invalidity of any such provision will not effect the validity or enforceability of any other provision of the Sublease. (e) Waivers. (i) The waiver by Sublessor of any breach of any term, condition ur covenant of this Sublease shall not be deelllod La Ill' a waiver of allY othel' leJ'III, COlldilioll or cOVetlarll aI' any suhsequPlll hreach of same. The accpplancE' of lalp rent p:1;,nuenl shill! hp dPI'IIIl"'>d lo he>;1 walvPf' of the' dp('a\llt. assnc'.i<'1tC'd (lnl~' with t.hat pal'L.1('lllar' I'('HL paYI1lPIlL at Lhp Limp or (\('cppLancp. of such paYlllc'll L. (Ii) The waiver by Sublessee of any breach of any lerm, condition or covenant of this Sublease shall not be deemed to be a waiver of any other term, condition or covenant or any subsequl"'>ll t breach of same. I n any case, no covenant, term or condillon of this Sublease shall be deemed to have been waived by either party unless such waiver is in writing and is signed by the party waiving. (f) Entire Agreement. This Sublease is the entire agreement between the parties, and supersedes any prior agreements, representations, negotiations or correspondence between the parties except as expressed herein. Except as otherwise provided herein, no subsequent change or addition to this Sublease shall be binding unless in writing and signed by the parties. (g) ",uthori tv. (i) Sublessee is a legal business trust and thp individll"l executing this Suble"se on bphalf of s"id business trutll n'prespnls and warranls that he is duly aulhorized to execule and deliver this Sublease on behalf of said entity in accordance with its trust indenture and that this Sublease is binding upon said entity in accordance with its terms. (ii) Sublessor is a California corporation and the individual executing this Sublease on behalf of said corporation represents and warrants that he is duly authorized to 16 /P-' 7/ execule and deliver lids Sublease on accord:'lnce wi ill i ls corporate bylaws bindiTlg UPf)!1 sa,id ('IILiLy in accordance behalf of said enlily and that this Sublease wilh its terms. in is Suhlpasp <11'(' Sublease. (h) Exhibils_. All exhibits attached to hl'rphy incorporated into and madE?' a part of lhis this (i) Time. Time is of the essence for the performance of each term. condition and covenant of this Sublease. (j) Estoppel Certificate. Either Sublessor or Sublessee may request an estoppel certificate from the other party regarding any matter referred to in this Sublease or in the Lease and the parties' agree to furnish said certificate within fifteen (15) days following receipt of written notice of such request. 25. COImuJ-ance with Laws. Each party agrees to comply with all federal, slate, county, and local laws, rules, regulations. ordinances, and corles relating to the use and operation by such party of lhe' PrelHisQs. Nei t.her parLy shall slorp, manufacLul'P. use, disposp or. or release any hazardous substances or matprials on, under, or around the Prem i ses, except such hazardous substances or nlalerials clJstomarily used in the operation aIld maintenal1ce of a resl;)uraflL. bar facility, or a golf course operation provided that slIch hazardous substances and malerials are used and sLol'pd in such quantities and in such manner as to comply with all applicable federal, slale, county, and local laws and regulations. Bolh parties her"by agree to indemnify, defend, and hold harmless the other party and its owners. officers, employees, and agents from and against all claims, actions, liabilities, damages, judgments. losses, cosls, and expenses (including attorney's fees) arising from the indemnifying party's misuse or improper manufacture, storage, disposal, or release of hazardous substances or materials on, IJIlder, (Jr" ar"ound tile Premises or any relnedial action reqllired by any governmental or quasi-governmental agency with respect to such hazardous substances or materials. 26. ~a.I'Ltil_L_improveI1L"'J)j.B.. Sublessee hereby agrees to comp]plp, (wiLh Sublessor's and City's prior approval), within lhp current Term of the Lease the capital improvement ilems described in Exhibit "II" attached to this Sublease. Once work commences on any specific improvement project Sublessee agrees to complete the project in the most expedient and timely manner possible. Sublessee acknowledges and understands that either Sublessor and/or City may impose certain conditions upon Sublessor in connection with such capital improvement items. Sublessor acknowledges that "imposed certain conditions" as mentioned above -may vacate, at Sublessee's option. Sublessee's obligation to complete any or all capital improvements as described in Exhibit "H". 17 1{)....7~ 27. Go I.Lj::ouI:se Employee Meals. Sublessee hereby agrees tha t all purchases at the Restaurant for food and non-alcoholic beverages made hy lhose AGC employees duly employed only at the Chula Vist Golf Course shall be charged at one-half (50%) the price chaq;l'd to the public. Sublessor acknowledges that such accommodatiou does not extend to other AGC employees employed at other AGC facilities or their corporate office. 28. ~g. Enc.umbrances. Neither party to this Sublease shall create or incur any voluntary or involuntary liens, mortgages, or other encumbrance against the Premises or any of the Personal Property. 2'1. .\Isg_9_LJ>remi~es. Sublessee intends to offer cost effective Rnd profitable hours of operation and intends to implement an aggresive marketing plall to attract new patrons for catered events, conferences and special "a la carte" events open to the general public. The special "a la carte" events include> but may nol be I imi ted lo a Friday Night Big Band Dinner Dance and a Sunday Champagnp ~J ;t7,7, Br'llnch. I n acid i lion, Subl PHSPP i ntf"llds t (1 conLillue Lo urrc'r adetluaLe services for the golfer and the gc>tlC'ral J.'ubJ ie in th" Ninell'enth lIole Sports Pub and the Snack Bar. SUBLESSEE SUBLESSOR PHS COMPANY, a le~. trllst By C~ T C~ ..s- AMERICAN GOLF CORPORATION a California corporation \-- ----A Its Its /"" By First Trustee S"€ c~FrN-"f 18 /~-7 J DRAFT Minutes of a Regular Meeting of the PARKS AND RECREATION COMMISSION Thursday 6:00 p.m. April 16, 1992 Public Services Building Conference Room 1 ******************* MEMBERS PRESENT: Commissioners Hall, Helton, Lind, Roland MEMBERS LA1E: Sandoval-Fernandez (6:14) MEMBERS EXCUSED: Commissioners Carpenter, Willett 1. AFPROV AI.. OF MINU1ES The minutes of the meeting of March 19, 1992 as distributed. MSC LIND/ROLAND 4-0 (SANDOVAL-FERNANDEZ OUl) 2. PUBliC HEARINGS OR REMARKS NONE 3. DIRECfOR'S REPORT Deputy Director Foncerrada reviewed the Parks and Recreation Commission Report and answered the Commissioners questions regarding this report. 4. REPORTS FOR INFORMATION ONLY a. Non-profit (Friends of the Park) Deputy Director Foncerrada reviewed the report that the Department had compiled regarding the status of the Parks and Recreation non-profit. He stated that the Chair and Vice Chair of the Commission have agreed to serve as interim officers during the reorganization, and their names have been filed with the state as such. Chair Hall asked if the rotation of Parks and Recreation Commission officers in June would have any effect on the filing with the State of California. Secretary Stohr said that any change in officers could be reported when the next annual report was filed with the State. b. Joint Meetine with Monteomerv Plannine Committee Landscape Architect Marty Schmidt presented the Commission with a report on existing parks within the Montgomery area and proposed projects within the area. He explored various concepts such as joint use with schools to mitigate the fact that very little land is available in this area for parkland. ~ /1/" 75 PARKS AND RECREATION COMMISSION April 16, 1992 PAGE 2 Commissioner Roland commented that he is opposed to any use of S D G & E righht-of-way land for parks of any type. Chair Hall expressed his concern that there had been a major pool/gym facility planned for the area which is currently not planned. He feels that we should focus on recreational facilities that can be developed with a minimum of land use. Commissioner Sandoval-Fernandez suggested that this item be agendized as an action item for next month's agenda thus giving the Commissioners more time to review the written material that was distributed with the report. c. Otav Vallev Rel!ional Park Update Item tabled until next month because the scheduled presenter, Gordon Howard, was not in attendance. 5. ACTION ITEMS Unfinished Business NONE New Business a. American Golf Fee Increase Deputy Director gave an overview of the written report on the golf course fee increase which had been included in the Commission's information packets. Chair Hall asked Bert Geisendorff of American Golf if he had encountered any opposition to the proposed fee increase. Mr. Geisendorff stated that he was not aware of any. Commissioner Roland stated that he was opposed to the restrictions placed on "9 hole" golfers in 1990. In addition he does not feel that $8 is a fair price for an identification card. However, he has no problem with the proposed nonresident fee structure. Motion to approve the American Golf Fee increase as proposed. MSC SANDOV AL-FERNANDEZ/LIND 5-0 b. Information and Referral Buildinl! Deputy Director Foncerrada reviewed the report that had been presented to the Commission in the information packets and stated that staffs recommendation was to allow the library and the town center manager to occupy the building. ~ 1()~7j, PARKS AND RECREATION COMMISSION April 16, 1992 PAGE 3 Commissioner Helton asked whether there was no longer a need for space to house Recreation Division personnel. Deputy Director Foncerrada replied that a need for space still exists. Commissioner Helton expressed her strong opposition to allowing the library to use a portion of the building when it is needed by the Parks and Recreation Department to house Recreation staff. Commissioner Sandoval-Fernandez stated that it appears that Parks and Recreation staff were being forced out of the building. Motion that due to the current needs of parks and recreation staff, the front portion be given to parks and recreation staff and back portion of building house the Town Manager. MSC HELTON/ROLAND 5-0 c. Golf Course Restaurant and Bar Sublease Deplity Director Foncerrada gave a history of the lease situation for the restaurant/bar located at the Golf Course and outlined the currently proposed sublease. He stated that staffs recommendation is to approve the sublease as presented. Commissioner Roland stated that he doesn't understand the logic of why American Golf wants to maintain control of the lease that they have and sublease rather than just letting the lease go to someone else. He asked the representative from American Golf if they would be making a profit from the sublease. Mr. Bert Geisendorff of American Golf replied that no profit would be made. The reason for using a sublease is that the restaurant lease is tied to the golf course lease in that the golf course lease term was extended as a condition of the restaurant/bar lease. Commissioner Roland stated that he did not like any connection between the golf course lease and the restaurant lease. Commissioner Hall asked if Prestige would be working with Joelen Enterprises to build the hotel. Deputy Director Foncerrada stated that he had no knowledge of any connection between the two entities. Commissioner Roland asked Mr. Geisendorff if American Golf anticipated a joint venture with Joelen Enterprises. Mr. Geisendorff stated that they did not. ~ ,4?-&'&- )/)-'77 PARKS AND RECREATION COMMISSION April 16, 1992 PAGE 4 Motion to approve the sublease as presented. MSC HELTON/SANDOVAL-FERNANDEZ 4-1 (Roland opposed - He is skeptical of big business and feels that this may be a move toward American Golfs taking over ownership of the Golf Course.) 6. CO~CATIONS a. Written Corresoondence NONE b. Commissioners Comments HELTON - Wishes to know the cost of the copper wall in the Norman Park Center. She feels that in the future the designs that architects present to the City should be more closely scrutinized for functionality. Commissioner Sandoval-Fernandez suggested that this be agendized in May. In addition, Commissioner Helton would like to have an item placed on next month's agenda regarding the job specifications for the Human Services Coordinator position. ROLAND - Feels that any restaurant on the golf course site will have to have a specialty in order to be successful. HALL - Expressed his concern about a hotel being built adjacent to the golf course. In addition, he asked for the Commissioners' input for a round table discussion with the Mayor being held on April 30. LIND - Would like Chair Hall to recommend to the Mayor on April 30 that the Parks and Recreation Commission sit down with the Council on a regular basis to have informal discussions about direction and goals. He feels that the Youth Sports Council is beginning to feel like a second class entity ie., that they are being ignore by Parks and Recreation. Adjournment to the next regularly scheduled meeting of May 21, 1992. Respectfully submitted, f2/~ Carole C. Stohr .~ IP"7K" dtlL9 ~ SllJ:lL.EASE This SllBLEASlc is made and enLe",'d into Lhis 2(,Lh day of May, 1992 I,y and betw,'on AMEHICAN GOLF COHPOHATION, a California corporation (referred Lo variously herearter as "Sublessor", llLF'sspe", or "AGe" as the nature of the agreement may require). and PIIS COMPANY, a legal business LrusL, dba PRESTIGE HOSPITALITY SEHVICES (referred La variously hereafLer as "Sublessee" or "PIIS" as the nature of the agreement may require). REQIJ ALS A. AGC is lessee of that certain restaurant and bar faciliLy commonly known as SouLh Bay Restaurant and more particularly descri\Jed in Section 1 below ("Restaurantlr or "Premises"), located aL Lhe Chula Vista Golf Course, City of Chula VisLa, California, pursuant to that c<::~rtain Lease Agreement ("Lease") entered into July I, l'H)(, between The City of Chula Vista, a municipal corpof'ation, (HLessorH or IlCity"), as lessor. and Sublessor as lessep. ~o { -l~t> ~.,~ n. ^ copy or Lhp Lp(lsP is aLLached to this Sublpa~"(' as E25JLUJiJ._.".1\~:. Exhibit A is made a parL of Lhe Sublease for' all purposes and may be amended only by muLal consent of Lessor and Lessee. C. PIIS desirE'S La sublease from AGC the Premises upon the term:o, covenants and conditions hereinafter set forth. NOW, THEREFORE, with reference to the forgoing Hecitals and in consi(leration of the mutual promises and covenants contained herein, Sublessor and Sublessee hereby agree as follows: A<:J]l.EEMEJITJ,'. I. I'cemisps. Effective June 1st, 1992 (the "Effective Datf>"). Sublpssor ~,llbleaBPs to Sllblf'sSf"e and SublpssF'p sublc'!ases from SllbJc~::;sor Lhp PrC'lIl-ises consisling of (n) a restaurant. hal', golf('I":, lounge and !lanqllPt faciliLips commonLy known as SouLh Bay Heastllf.ant located aL thE' Chula Vista Golf Course in Lhe City of ChuLl Visla. San Die'go Counly. Cal ifot'llia, (h) ^ nonpxc~lusivp l'ight lo \l~t" Lhp walkway:;. land:-;c<l[H'd <If'('<lS, allil gl'OlIIHi:-; illll1lpdiaLC'ly adjacent to Lhe Restaurant, and (0) a nonexclusive right to use Lhe par1<..-i.ni~ Lot adjacpnl to the HpstauranL huilding. which parking lot is usc'l! by Lhf> fh-'sLaurant, the Chula Vista GoJf Course and thp gellel';,1 I'\JI)} ic for access tel the a(t.ja(~erlt joggiTlg/riding tt'ails. The llat"Lies aCk[lOwl(~dge that tile ])r8I11is0s do not irlclude the lower level of the HesLaurant building, which is used by AGe for storage, maintr-'nance, and rC'pair of golf c.arls llsed in the operation of the 1 //)"8' J ,\ Chula Vista Golf Cour'se, Sublessor' and Sublessee shall cooper'ate with ('aeh other as to their joint or separate uses of the Premises. 2. rgr0()!la,J_J~r9E~_r.~Y. (a) O_"'.!lQ~LI'J"Ql)er..1Y. As part of this Sublease, Sublessor also subleases to Sublessee and Sublessee subleases from Sublessor all personal property noW used in the operation of the Premises (the "Personal Property"). A listing of the Personal Property subject to the Sublease is attached to this Sublease as Exhibit "B". All of the Personal Property which is listed on Exhibit "B" is owned by City or Sublessor (the "Owned Personal Property") with tllP sl'ecif ic exception of those items of Personal Property which are listed as leased and which are referred to in Section 2(b) of this Sublease and Exhibit "c" to this Sublease (the "Leased Personal Property"). Sublessee's responsibility for repair and maintenance of all Personal Property, both Owned and Leased, is described in Section 12 of this Sublease, as well as Sublessee's obi igations with regard to the return of said Personal Property UPOll f'xpirat.ion or earlier lerminatioIl of this Sublease. (1)) l~S~.~_~_l~~L_t!..:gp~-~-'-~y_. Sllblpssee also agrees Lo. al1l1 as a cond i Lion of this Sublease shall. assume all leases of equipment ("EquipmenL Lpases"), except the lease fur the copy machine. uspd in LlH' oppra Lion of thp Hes Lauran l . If, howevpr l Subl essor <'1nd Sublessee are unable to arrange with the third-party lessors of the Leased Personal Property for the successful assignment and assumption of all acceptable Equipment Leases (wi thout cost increases to Sublessee and gain the release of Sublessor thereunder) on or after the Effective Date, Sublessor acknowledges that Sublessee shall not be bound or obligated to assume or satisfy Sublessor's obligations in any form. In the event Sublessee does not assume a particular Equipment Lease pursuant to the immediately preceding sentence and Sublessee desires to continue to use the Leased Personal Property subject to such Equipment Lease, then Sublessee shall pay to Sublessor additional rent under this Sublease equal to the amount of rent and other monetary obligations of Sublessor under such Equipment Lease, and such additional rent shall be due and payable on or before the time when Sublessor is rc>qu L tOed to pay Lhp ren l and other monetary obI iga L i 01)8 under such Equipment LpasC'. A listing of all Equipment Leases subject to a.s~;ignlllenL aud assumpLion is atLachpd to Lhis Sublp;-\.se as Exhibit "D". (c) 1i(111()L,J"icen"'~: Sublessor presently holds title to that certain On-Sale General Eating Place Alcoholic Beverage License (the "Restaurant Liquor License"), No. 47-172390, and Duplicate License No. 47- 172390-001 issued by the California 2 JIJ"d.- Depal'LmenL of Alcohol ic Bevprage ConLrol ("ABC"). Sublessor agl'ees to spJ I the Hf-.~stal1ran-L Liquor License to Sublpsspp for six thousand doll'll's ($(,,(JOO.OO) ("Liquor License Purchasp Price") and for the fait, mar'kpL dollar- value of Lhp existing "liquor" invpntory as of t.he Err{'cLivl! UaLp, a.Jul Sublesspp shall pay ;;1.11 transfer fees, escrow fees, and "Lhpr charges for transfer of the HesLaurant Liquor Licen~;p to SublpssF~p including all fpps for a temporary license. Sublessee shal] be responsible for consummating the transfer of the Restaul'anL Liquor License La Sublessee including preparing all applica.t.ions and other documents and opening escrow, and Sublessor agrees to cooperate with Sublessee in all resonable respects. Sublessor furLher agrees to execute a surrender form as part of the transfer process in order that Sublessee may also obtain a temporary licerlse. I f Sublessee is not able to obtain a temporary 1 iquor license prior to the Effective Date, Sublessor and Sublessee shall enter into a management agreement, in form and substance acceptable by the parties, whereby Sublessee shall manage the sale of alcoholic beverages at the Restaurant on Sublessor's behalf and for Subl(:'s:-ior's account until such Limp as Sublessee1s temporary license, is issued, Sublessee agrees to indemnify and defend City and Sublessor 1'1'0111 any charges stemming or rpsulting from the sale or consumpLion of alcoholic beveragps on the Premises beginning on or afLer the Effective DaLe and Sublessor agrees to indemnify and defend Sublessee from any charges stemming or resulting from the sale or consumption of alcoholic beverages on the Premises prior to the Effective Date. 3, Sery.ice/Vend_or Contracts. Sublessee also agrees to the assumption of all Sublessor's obligations under the pre-existing service contracts (IIService Agreements") with various vendors prov ided tha t each contract assumpt ion does not resul t in an immediate and unreasonable increase in fees paid for said services used in thE' operation of the Restaurant. Sublessee shall have thirty (30) days from the Effective Date to examine all Service Agr0PIIlc>nls and if, in the exercise of its reasonable commercial judgt'IIj('IIL, Sublpsspp dpLermin8s Lhat iL would bp in the besl inLpt'f'sL of Suhl(-"ssPP noL to aSRUITlP a particular Servicp Agr'PPllIpnL, Suld(':;':~(H' agr(~ps Lu aLLc'lIlpL Lo work wiLh Sublessee in sppking to caner'" I -Lhp Sprv i CP Agrpemeni in ques Lion. I f Sub] essor and Subl",,,;ee callnot saLisfactorily alTange with eaeh third-party vendor for LtH~ a(~(;pptable assignment and assumption of each Service Agreement (and the release of the Sublessor thereunder) on or after the Effect i ve Da te, Sublessor acknowl edges tha t Subl essee shall !lOJ. be bound or obligated to assume or satisfy Sublessor's obligations in any form. A 1 ist ing of 'all Serv ice Agreements subj eet to assumption consideration is attached to this Sublease as Exhibit liE". 3 /4-13 'L OLhe'.!:' CqIILr~_(;L~'j.. SublC'ss(;'(' ;llso ;J.gr.'ees Lo assume and per'fot'lII all Sublessor's obI igatioIlS l.uHler' all contracts and agr"eelllellts pt"ovidirlg for the use by third-IJarties of allY parol of the l'""mises on or after the Effective Date, including banquets, meetings, weddings, parties, and other group functions (coll(>ctively, the "Contracts"). Sublessee hereby agrees to indemllify, defend and hold ham less Sublessor from and against all claims, damages and liabilities relating to and arising from the performance by Sublessee on or after the Effective Date of all Sublessor's obligations under the Contracts. A list of all known Contracts as of the Effective Date is attached to this Sublease as Exhibit "F". Prior to the Effective Date, Sublessor shall provide Sublessee a comprehensive listing of all Contracts with prepayments "on account" and shall pay to Sublessee an amount equal to all deposits received by Sublessor for Contracts relating to the period on or' after the Effective Date. :'i. Incorl'or<ltionofI,ease. Except as otherwise specifically prov j dC'd j II lhe'" SUbJp;:lS(" Sublessc'p agrces Lo pprform, oust'l've. abide by and be governed by all terms and obligations of Lessee ulHlpr' Lhp f,pasF', and Sublp~)sPl?' agrpps lhat thl'" l.ease:" shall .t'E'main in full force and effect as applied to Sublessee. Sublessor shall be (,ntitled to enforce all terms and provisions of the Lease against Sublessee as if Sublessor were, in fact, the Lessor. For put'poses of Sl.lblessee's perfornlance of all conv8IlaIlts, obligatic)ns. and terms of the Lease, Sublessor shall be considered the "Lessor" under the Lease and Sublessee shall be considered the "Lessee" under the Lease. 6. Modj.Lications to L",ase. For purposes of this Sublease only, the provisions of the Lease, as incorporated herein, are subject to the following modifications or deletions: (a) In all provisions requiring the approval or consent of City, Sublessee shall first be required to obtain the approval or consent of Sublessor. Sublessor shall forward to City such reasonable requests as Sublessee may submi t for approval and/or consent from City. Subject to arbitration, Sublessor shall not unn,asonably withhold its approval for submitted items. (b) The following Sections of the Lease shall not be incorporated herein by reference: Sections 4, 6, and 27. the 7. J5'{'m. Effective The term of this Sublease ("Tc'nn") shall Date. Unless otherwise extended or commence on terminated 4 /4,6'1 earl ic'r' as provided bc~low ot' pursuant to the Lease, the Sublease Term shal I end June 30, 1996, (a) Pursuant to the terms of Section 4(^) of the Lease and subject to such early termination provisions as contained in the Lease or this Sublease, Lessee has the option to extend the term of the' Lease for two perjocts of Lpn ypars each (the 110ptionl1 or c:ollectively, the "OpLionsll). The parties acknowledge and und('t'~-;land LhaL Lessee' must give Lessor noticT' of its intention to exc'rei:", thc' Option not less than lHO days prior to the expiration of the Lease term then in effect ("the Notice Date"). The following conditions apply if Sublessee desires that the Term of this Sublease be extended for the entire term of the applicable Option period of the Lease: (i) Sublessee shall not be in breach or def au I t of any of its obI iga t ions under th is Subl ease or the underlying Lease as of the Notice Date or as of the first day of tllP extension period (subject to Section 23 of this Sublease, Subl(~ssor shaJ I be Lhp sole judge of what cOllstitues a breach 01' de!"ault), and (ii) Sublessee shall deliver written noticp to Sublessor o!" its desire that the Term of this Sublease be the Term of this Sublease then in effect. In the event the conditions described above are satisfied, Sublessor shall be obligated to exercise th" Option without delay. In the event Sublessee is in de[<'luIL or hr'cach as providpd in (i.) above, Sublessor may sLill elel,t on its own behalf to exercise the Option, and such exprcise shall not waive Sublessee's breach or default or any rights or remedies of Sublessor under this Sublease or the underlying Lease. In the event the Lease expir"s (and is not extended as provided above) or in the event the Lease is terminated for any reason, nothing contained in this Section shall be construed to prohibit Sublessee from entering into negotiations directly with the City for a new lease of the Restaurant facility. (b) I f Sublessor has not rece i ved from Sub lessee WI' i t ten notice of Sublessee's desire to extend the Sublease Term in accordance with Section 7(a) above, then the Sublease Term shall be deemed terminated e!"fective June 30, 1996. (c) The parLies acknowledge' and understand that S(:'Ct.iOIl 2111 o!" the ],,,ase provides that City has the ,'ight to cause an early LerminaLion of the Lease in t.he evenL Lhe Premises are required for construction of public streets or drainage facilities for the Sweetwater River Flood Plain. In the event of such early LerlllillaLiol1 Suhlessor' agrees La give- Suulesspp Lhe' same six (()) months wrilLpn noticp City is required La give Sublpssor under Sect ion 211\ o!" the Lease. (d) The parties acknowledge and understand that City is presently negotiating with third parties (including Sublessor) for redevelopment of the Premises or property adjacent to the Premises or property adjacent to the Golf Course, as a hotel/convention center/golf complex ("Project") and if that Project fails, the City 5 !O-B'5' will, in all likelihood, negotiatp with third parties (including S\llll('~;:.;()r) r(Jr' ~)()IIl(' nthc'I' (It'VI'IopIIH'lIl or LIH' PI'C"llli~-;C's 01' pt'Upt'I'ly ad,jar:t'nL Lll Lht' Pr("lIli~-.)(>s or propprLy adjacl'nL to the Golf COlll'SP. On Lilt' cond i Lio!l Lhat City rr'<1Chc.'"'>H an agrpC'IIIC'nL ("City DevploplIIPnl Agt'l'C'lIll'nL") for Lht' redevelopment or Lhe Premises ur the properly adjac('I1t to the Premises or the property adjacent to the Golf Course, either for the Projpct or for some other development, this Sublease shall automatically terminate by the provisions of this Section prior to LhE.~ expiration of the normal Term, or any extension thereof, 270 days after Subleassee receives written notic" from either the Sublessor or City, or its Rpdevelopment Agency, that such City Development Agreement for development has been reached, and that this Section's automatic termination provisions become operational, Without in any way affecting the waivers and other agreements contained herein, after the effective date of the early termination of this Sublease as provided in this subparagraph (d), Sublessor shall, with the consent of City and Sublessee, allow Sublessee to continue to sublease the Premises on a monLh-Lo-month basis pursuant to the same terms, conditions, and covenants as contained in this Sublease until such time the City dec:la,.rF~s thp intent. 30 days hence, to issuE' building, demolition, or gr'ading pprmiLs for the ProjecL or athe'l' development. Upon (~()IIS('IIL Sulll ('S~;'('P agrT'ps to PX('(~llt(' Sll('h (J()('llllll'llLs and agt'PPIl\('nLs indic::1Ling ~H1Ch lIIonLh-Lo-month LC'tl:lllcy as Sublessor or City may re;::lsollably l'c>qllir[~. Sublessee hereby w<:lives any objection, claim, callSt' of a(~Lioll, t>llLiLIE~mpnL or permiL LhaL Sublessee llIay have against the Ci ty or its Hedevelopment Agency proceeding wi th and implementing the Project or other development: notwithstanding the for'pgoing, Sllblc~sSPl' doC's noL hC'l'l'by waivt' allY righL to ppLiLion the Ci ty Council and other appl icable boards and commissions to not proceed with the Project or other development, but this shall not give Sublessee the right to institute legal proceedings, Sp<>cifically, Sublessee, and any successor to Sublessee's interest under this Sublease, hereby waive any claim against City or its Redevelopment Agency for any relocation benefits under the Cal ifornia relocation laws or under similar local, state, or federal laws, and any claim for goodwill value of their business in any eminent domain proceeding or other proceedings. and any right which they may have to participate in the Project, In the event of any early tprmination of this Sublease pursuant to subparagraph (c) or subparagraph (d) of this Seclion 7, Sublessee shall havp no rights or t'l'medies as against City or Sublessor' including the right to recover damages, loses, costs, or other compensation as a t'psuIl of stIch early LprminaLioll. The righLs and privilpgc>s of this Agr<>ement run to and are for the benefit of, both Sublessor and the the ],pssor, City, and its [{edevelopment Agc'llcy, Thus the City and its Redevlopment Agency shall be considered as Third party Berl('ficiaries of the I>rovisions of the Agreenletlt 6 /tY8b k. HeIlL. Sub!pssee sh;:l.ll pay to Sublessor the same amount of relit. as SlllJ!pssor is obligaLe.cJ Lo pay the City pursuant. Lo St~('li()n 5 of Lhp L<'asp. Thc~ parLic~s acktlowlc~dge .:l.nd UIHh-~l'sl~Ild that the> minimum monthly rent now in effect undpl' the Lease is four thousand thre hundred eighty-four dollars ($4,384.00), and that the miminum monthly rent shall be adjusted on July 1, 1992 pursuant to the Lease. Sublessee shall deliver to Sublessor on or before the lOth day of each month a statenlPnt of gross sales, certified by C.I1. Call1pic)I1 in Lht, 1'0rm in Exhibit III". Sublesspp1s sLatl~l1Ipnt of gross sales shall be in compliance with Section 5 of the Lease. The rent due and owing by Sublessee shall be paid to the Sublessor on or before the lOth day of each month at the same time as Sublessee delivers to Sublessor the statement of gross sales. Payments made by Sublessee pursuant to this Section 8 or Section 9 below shall be made to Sublessor at the following address: American Golf Corporation, 1633 26th Street, Santa Monica, California 90404, Attention: Kathy Mallari. 9. AddiLjon,,1.BeI11. In addiLion to the rent set forth in Section 8 of this Sublease, Sublessee shall pay to Sublessor the following additional sums monthly: (a) $200.00 for- real propel-ty L1XPS and asspssmpnts and pOSSf:~ssory interest taxes against the Premises. If there is an increase il} the amount of real property taxes and assessments or posspssory intpresl taxes which Sublessor is obligated to pay with res}lf'cL to Lhe' Prc~lIlisps. then the amount to bE' paid by Sublp>ssPP pursuant to this Section 9(a) shall be pquitably adjusted to reflect !lIP increase, and the amount of such adjustment shall be mutually agreed to by the parties. (b) $385.00 for maintenance and upkeep of the parking lot and the adjacent walkways and landscaped areas. The amount paid by Sublessee under this Section 9(b) shall be adjusted on July 1, 1993 and on July 1 of each year thereafter by the percentage increase in the San Diego Area Consumer Price Index for All Urban Consumprs as compiled by the United States Department of Labor, Bureau of Labor Statistics for the period June 1, 1992 through July 1, 1993 for the fi,'st adjustment date of July 1, 1993 and for the 12 month period preceding each subsequent adjustment date. (e) $175.00 io reimburse Sublessor for the cost of the premium allocated to Lhe Premises for the fire and extpnded coverage pr'operLy insl.Jrance maintaiIH:'d by Sublessor pursuant to Section 15(a) of this Sublease. The amount to be paid by Sublessee pursuant to ihis subparagraph (c) shall be equitably adjusted from time to time to reflect any aotual increases or decreases in such insurance premiums. and the amount of such adjustment shall be mutually agreed to by the parties. 7 J(J~7 The amounLs to be paid by Sublessee pursuant to subparagraphs (a), (b), and (c) above shall be paid to Sublessor at the same time as Suld(osse" pays the rent pursuant to Section 8 above. Sublessee shall pay prior to delinquency all taxes assessed against the Personal Property and any other personal property owned by Sublessee and used in the operation of the Premises. 10. I.:S)~~:;()r: '__$___(~OJ)_~_~2_!J.L_. ThE:.~ part i l~S acknowl edge tha t, pUl'suan t to SpcLion 17 Dr Lh(> Lease, Lessor's prior written consent to any subletting of the Premises is required. Therefore, the parties' execu t ion 0 f th is Subl ease and the i l' performance thereunder is subject to and contingent upon Lessor's giving its consent to this Sublease, a,"l the parties hereto agree to cooperate and use their best "fforts to obtain Lessor's consent her"to. Sublessee shall have no further right of subletting or assignment of the Sublease. It. GOlldj__~J~Q~LC?J__XLem i sefi. (a) IIll)jJ~es,j.jgn. Subleasee has had the opportunity to fully insppct the Premises and has satisf i(-:>d itsplf as to the generrtl condi tion of the Premises and agrees to accept the Premises in as is, where is" condiLion. Sublessor' warrents that it has receiv"d no written notice that the Premises are in violation of any ;lpplicahlp laws. regulations. p,ovprning ordinances and codes. If after the Effective Date, the parties mutually agree that the Prc~lIIises wer(-~ not in compliance with such laws and regulations as of the Effective Date and such non-compliance can be attributed to Sublessor's prior neglect or oversight from the time when said Premises were under Sublessor's direct control, (July 1, 1986 through the Effective Date), Sublessor agrees to remedy any and all items of non-compliance at its own expense. Sublessee acknowledges that except as provided in this Section ll(a), neither Sublessor nor Sublessor's employees or agents have made any representations or war'ranties as to the condition of the Premisies, includirlg allY represcmtatioll as to the suitability of lhe Premises for the Sublessee's inlended uses. (b) RooLRepairs. Sublessor explicitly acknowledges that Lh(~ Pr('IIILSP'S roof' lc~aks and is in Ileed of rppairs. Sublessor agrees. at its OWIl expense. to make whatever re!Jail'S are necessat"Y to cOl'I"C'cL Lhr) leaking t'oof within tHO days of L1H' Effpctivp Datp. Any slIhseqtH'tlt repairs and maintenancp of thp roof of thp Prpmisps that Illay 1)(' IH'CPSf-Hl.ry during the 1\::'l'111 of this Subleast-.~ shall b(~ performed -by Sublessee at its expense. 12. MaJc!ltel1anc:e and Repa iI's. 8 /o,e-~ (a) Subject Lo the Lerms of SecLion to of the Lease, Sublpssee shall be responsible for all maintenancp and repair of Lhp H('sLatll':.lnL Pn'lIIisps. l'ersonal Pl'opprLy and any Pt:'l'sonal prop,,,-ty ownpr! by Sublessee used in the operaLion of the Hestaurant Premisl's. Sublessee agrees to maintain the Premises and the Personal Property in good working order, repair and condition. Upon expiraLion or earlier termination of the Sublease Term, Subl"ssee shall be obligated Lo surrender the Premises and the Owned Personal ProperLy (or replacement personal property of comparable worth and quality) to Sublessor in a condition at least as good as the condition in which Sublessee received the Premises and the Personal Property as of Lhe Effective Date and in good workirlg order arId repair. ( b) Not wi thstand ing Sect ion 7 of the Lease, Subt essor shalt reLain responsibility for customary maintenance and upkeep of the pal-king loL shared by the HesLaurant and Chula Vista (~olf Conrse. Sui>lesspp's liability for any minor customary maintE'nanc"E' and "pkeep dur-ing Lhe Term of this Sublease wiLl be limited to 50% of LhF' cost~~ i Ilcurrl'd by Subl essor for any II normal and reoccur i Jig" Hlinor customary lIl<:liI1Lenance and Upkf~Pp. It is pxpressly undersl.ood by hoth par-Lips that Sublessee shall Hot bE' lIloIH-"lari ly l'psponsiblp for allY major', (capi tal improvement lypp). 1'<,}>ai1'8 to the existing parking arl'a~3 during the Term of this Sublpase. Sublessor shall also lIP t'P~;Jl()llsihl(' for mainlaining Lhf" landscaping around lhp Hestaurant building, Sublessee's liability for same is limited to the amount stated in Section 9(b) of this Sublease. Sublessee shall only be responsible for repairing or replacing any damage or destruction to the parking lot or landscaping upon presentation of reasonable proof that said damage was caused by Sublessee or its employees, and agents, and/or its customers, invitees, or guests patronizing the Sublesse's portion of the co-occupied Premises. (c) Sublessee must obtain Sublessor's prior written approval before commencing any repairs costing over $1,000.00 unless such repairs are required to be made due to an emergency situation. Sublessee alone exercises sole discretion on what constitutes an "emergencyll. 13. .!tlL,"r~JJon". Subject to the terms of SecLion 8 of the Lease, other' than the improvements listed on Exhibit "H" to this Sublp<lse. Sllhlc-sspp shall not altc'I' either thp exterior or intC'l'ior of Lhp Prelllisps or (:hange any structural. mechanical ot' electrical comp()Il(-~nt or the PrpllliSl~S without first obLaning the prior written consenL of Sublessor anel City. 14. UJiliLies, Upon the Effective DaLe, Sublessee shall, at its own expense, arrange to have transfered to Sublessee all 9 I/J"g, utilities, including uut noL lilldLL'd Lo water, gas, electriciLy and telephone service used in the Resluarant operalion of the Premises. 15. l.!lSlJr_~D_(;~;_S?- (a) _;;_~.tJ~tc't>__~9,r~_~_~_9y_~r<:~_K<;. Suu} pssor sha 11 ma in La i n a 11 primary insllrance as required by Section 11 of the Lease, except for that insurance c~overages maintained by Sublessee as specifically noled in Seclion l5(b) below. Sublessor agrpes 10 name Sublessee as addilional insured on Sublessor's Comprehensive Public Liabilily insurance policy as il relales 10 the parking lot and Lhe walkways, Lhe landscaped areas and lhe grounds immedialely adjacenl to lhe Reslaurant Premises. ( Il) and maintain Sublease the _$..!:Ll?Jl~l?_~ee I ~__Q..over~Kg_. Sublessee agrees to procuI'e at Sublessee's expense, during the Term of lhis following insurance coverages: (i) Sublessee shall maintain properLy insurance on the HesLaut'anL bui lding and Personal Property contenls insuring againsL loss or damage by fire, lighLning, and/or any other perils insurable under the form of all risk <,overage then available in the amounL of Uw Sublessor's Property Insurance policy deducLible, currently the deducLible under Sublessor's Property Insurance is S50,000.00. This coverage shall be primary to Sublessor's ProperLy Insurance and shall cover the first dollar of any loss or damage. This (~overage 811all have no co-insurance pt'ovisions. This coverage shall have a deductible not in excess of Sl,OOO.OO and Sublessor shall be named as 1 ass payee. Upon the occurence of any 1 ass or damage covered by this insurance, Sublessee shall be responsible for paying Lhe deductible. (ii) Sublessee shall insure all personal property owned by Sublessee located in the Hestaurant building, in an amount not 10 exceed S30,000.00, against loss or damage by fire, lighlning and/or other perils insurable under the form of extended coverage the-I} ;:\vailal)le. (iii) Business interruption insurance against losses due Lo fire, lightning and other perils insurable under the form of ext(>IHh~d covc~rage then avai lable in an amount not less Lhan one hundred percent (100%) of the minimum I'F'llt due for a ninF" (C)) month period. (iv) Comprehensive public liability insurance including: bodily injury, personal injury, property damage, garage keeper's liability, innkeeper's liabilily, products liability, contractual liability, and liquor liability in an amount not less than five million dollars (S5,000,000.00) single limil per 10 /d."b OcclltT(~nC~p a.lld naming Sublessor and CiLy as additional insureds. This policy shall contain an indor'spmpnt to the effect that such inSUI';:ulCP a~) iL ['claLps Lo Lhe HesLaura.nL Premises shall be primary to any simi la.r insurance t.hat may bp mainLained by American Golf Corporation. (v) Worker's Compensation and employer's liability inSUr"<lllCe as requir"ed ullder applicable law. (vi) not Ipss Lhan one nanlillg Sublpssor as Fire legal liability insurance in an amount hundred thousand dollars ($100,000.00), and adiLional insured. (c) Policies. All insurance coverage under this Sublease shall be secured through policies issued by insurance companies of good repulation and of sound and adequate financial responsibil i ty which have been approved by Sublessor and City. Sublessor's approval shall not be unreasonably withheld. Sublessee shall deliv(~r to SlIblc")ssor certificates of insurance with respect to all of the policies of insurance to bp maintained by Sublessee undpI' Lhis Sublpa~)(.>, i.ncluding exisLing, addiLional and rPllPwal policips; and ill Lhp caSE-~ of insurancE-' a,bouL Lo expire, SublpssF'e shall drdivpy" Lo Sllhlpssor certif-icaLes of insurance with l'psIK>c-l to the renewal policies not less than ten (10) days prior to the respecLive dates of expiration. Sublf~ssee agrees nol to change policy dednctibles prior to written notification of such intention to Sublessor. (d) Endorselllents. All policies of insurance maintained by Sublessee under this Sublease shall contain clauses or endorsements to the effect that such policies shall not be cancelled without at least thirty (30) days prior written notice from the insurance carrier to Sublessee, Sublessor and City. 16. lD!lemni fica t ion. (a) Sublessee agrees to indemnify, defend and hold harm I pss Su h 1 pssor' and Ci ly and l h(" i r t"pspecl i VP oWtH"rs, PlI1p 1 oyeps and agents againsL any and all claims, dalllagE~, loss, judgPlllenL, liabi liLy arltl CXpC~IIS~:', illcluding withouL limiLalion aLlorllPYs' fF'PS and I {-->gal cosLs, incurrp.d direcL1y 01" by reason of any claim, action, sllit Of' procppding broughL hy ot" on hphalf of any person ot" persons for any damage, injury, loss or expense arising ouL of, occa.sioned by or ill any way aLlributable Lo Lhe USP, oppralion or OCCllpallCY of' the HpsLaurant on and afLr-"I' the Effectivp DaLe ot" acLs or 01llif'lsions of Sublessee, its agpnls, employees or contractors. Sublessee agrees that the obligations of Sublessee pursuant to this sectic)n shall sllrvive the eXpil"atioIl or earlier tel"mination of this Sublease. 11 /(J-' I (h) Suhlc>ssor agrees to indemnify, defend and hold hannll'SS S~IIJlp~-;~H~P ;lTHI i Ls r'(~sppcL ivc' OWtlC'l'S. pmployc'ps a11d <1gl"nls againsl any and all claims, damagp, loss, judgement. liability and eXl'C'IlSL', illcluding withouL limitation attorneysl fees and Ipgal costs, incuJ'J~ell dil"eclly or by reason of allY claim, actioIl, stlit or proc:(,'E:~d ing brollgh L by or on behal f of any person or persons for any damagc>, injllry. loss or expense arising out of. occasioned by or in any way attributable to Sublessor's use of or co-ocupancy of the PremisE's on and after the Effective Date or acts or omissions of Sulllessor, its ageIlts, etnployees or cUIILractal's. Sllblessor agrees that the obligations of Sublessor ~Jrsuant to this section shall survive thE' eXIliraLioJl or earlier terulinaLion of this Sublease. l7. ::;Jaff. Sublessee agrees in good fai th to interview, screen and consider for hiring all current hourly employees of Sublessor working in the Restaurant (the "Restaurant Employees") undpr Sublpssepls current wage guide] ines. AGe shall terminate the employment of all Restaurant Employees as of the end of the day imlll<'diately J)['eceding the Effective Datl' and shall pay all Restaurant J':mploypl's all wages earnpd but unpaid through that datp. Th,'",'aftel', A<:C shall have no further' obligation with rpganl to thp Restaurant !l:mploypps. The name of the' current elllployeps, thpir job title and their wages/salaries are indc>ntified on Exhibit "G" to this Subleasp. AGC warrants and represents that it has created a YolllllLary Empi ()yc~e' Beller icial'Y AssociaL ion (IIVEBAll) Trllst PU1'su:.lnL to U", U.S. Employee l{etirement Income Security Act, 2q U.S.C. SQctioll lOOl (,t seq., a.nd Lhat all vacation benefits owpd to employr'C's :tIT' pa,id from the' procppds oj' this trust. AGe shall P;1y vacation benefits to all eligible employees whose entitlement to vacation benefits has actually vested as of the day immediately preceding the Effective Date. With regard to any employee whose entitlement to vacation benefits has not yet vested as of the Effective Date and who remains employed by Sublessee after Sublessee's ninety day probationary period, PHS agrees it shall credi t such employee (for the purposes of determining accrued vacation time) with the period of time that employee was employed by AGC and for which employee's vacation benefits had not yet vested. lB. Hepr:(~s(~nt.aj.~j9PB_. Sublessor hC'reby warrallls Lo Sublessee, as of the ErrecLivt:> reprpsentations shall survive the Effective Date: t'eprE:--"SPllLs and Da.le-, which (a) The:' Lf~ase is in full force' anel pffC'cL and Lessee has received no notice from Lessor of the existence of any breach or default. 12 II) "J-- (b) No liLigatiol\ is [H'fHting or threalened regarding the Hc'staurant oppraLions. Sub 1 F~ssor makes no CUr'r"BIlt opol'alions Restaurant. other than as specifically set forth above, repres(:-~ntation or w<:'lrranties regarding lhe of Restaurant or the future prof i tabi 1 i ty of lQ. .Cro~_~r's_ Commission. A brokerls commission in the amount of $17,280.00 shall be paid to the Bigley Group. Sublessor and Subless,,,, will each pay $8,640.00. Except for the broker's commission as set forth in the preceding sentence, Sublessor and Sublessee hereby represent and warrant to each other that no other commission. fpp or other compensation is owed to any broker. fiIldc,t", or uLher agent in connection with this lransaclion. and each party Iwreby indemnifies and holds harmless the other party from and againsL any claims for broker's commissions. finder's feps or other compensation as a result of the indemnifying party's entering into this transaction. 20. I1g1_dtl1gQv.ex. Upon expiration of this Sublease Term Of' cat'lip1' termination of this Sublease, Sublessee shall immediately vacate the Premises. Any holding over shall create a month-to-month tenancy terminable on 30 days written notice given at any tim" by either party. All convenants and conditions of this Sublease shall remain in full force and effect during any holding over period. 2l. Breacl1__..<!nct Remedies. (a) The following events shall constitute a breach of this Sublease and a defaul t of Sublessee thereunder: (1) if Sublessee fails to pay rent or fulfill any other monetary obligation of Sublessee to Sublessor, and Sublessee fails to cure such monetary default within three (3) days after written notificatioll from Sublessor to Sublessee of such default; or (2) if Sublessee fails to keep, observe or perform any olher convenant, obligatio!l (ll' LeI"111 of Sublessee Utlcjer this Sublease wheII dlle or called for, and Sublessee fails to cure such default within ten (10) days after written Ilotification from Sublessor of such default (provided, however, that Sublessee shall not be deemed to be in defaul L if Sublessee has commenced curC" and is diligently prosc(~uting saine but is unable to COlllplete slJch cure withiIl len (10) days); or (3) if Sublessee shall be the subject of a voluntary or involuntary bankruptcy proceeding. reorganization, or liquidatioJl proceeding commenced by or against Sublessee; (4) if 13 /tJ"3 Sublpssee shal l be ;ldjudged bankrupt, or a receiver be appointed for Sllhlc~H~;('C~!s prOIH:'l'ly, or if Suhlesspp's inlQt'csL in this Sublpase shall pass by operation of law to any person other than Subl.c'ssee; (5) if a voluntary or involullLary l.iL'11 or encumbrance rela,Ling to SublesspE' or Sublessee's operation. maintenance or use of Prl'JJlises is placc'd on Lhe' Pr€"'lIIisps or' any p("I'sollal PropprLy and. is noL removed within sixty (60) days; or (6) the occurrence of any of thp evenLs set forth in Section 21A(2), 21A(S), or 21A(6) of the Lease. If any of the events identified in the preceding sentence should oceul' and Sublessee does not cure the default within the time }J81'io(ls pt"ovide(l above, Sublessor may elect to ter'lninate this Sublc'ase immediately and seek all remedies as provided under la\v and pquity. In addition, upon thE' occurenc~e of any of the pvpnts set rOl'th ill this Section 21, Sublessor shall have the same rights and r'(~lIIl?di PS as Ci Ly does under the Lf:~ase upon the occurrence 0 r a defaul t by I,,>sspe. (b) The foLlowing c"v(-'nLs shall consLiLut.e a brr>ach of this Sul,)pase and a default of Sublessor thereunder: (1) if SulllPHsor fails to keep, obset've or perfot'ln allY coveIlanl, obI igaLioll (II' Lc'rm of Sublessor' ulld('t' Lhis Subll'asC' WIH'1l dlH' or callpd for. alld Sublessor fails to cure such default withill tpll (10) days arCPt' wri LLC'Il noLificatiun ('r'olll SublC'Hsl'C' uf such dt'f'aull (provider!, however, that Sublessor shall nol be dC"emed lo bp in default if Sublessor has commenced cure and is diligently prosecuting same but is unable to complete such cure wi thill tell (10) days; or (2) if a voluntary or involuntary lien or encumbrance relating to Sublessor or Sublessor's operation, maintnance 01' use of Prpmises is placed on the Premises and is not removed within sixty (60) days. If any of the events idpntified in the preceding sentence should occur and Sublessor does not cure the default within the timp period provided above, Sublessee may elect to terminate this Sublease immediately and seek all remedies as provided under law and equity. (c) If Sublessor at any time by reason of Subl essep' s defaul t pays any sum or c10es any act that rpqu ires payment of any sum, the sum paid by Sublessor shall be immediately due and owillg by Sublessee to Sublessor at the time said sum is paid, and i r paid aL a later elate shall bear illterest at ten pel'cC'llt (IO'X,) per allnum from the c1atp that the sum was paid by Sublessor' alld until Sublessor is I'eimbursed by Sublessep. procPt'd i ng prevailing atlorney's (d) In the l.lp Lw("en Sub"! essor party shall be rees and costs. event of any and Suhlpsspe enti tIed to Ipgal action or [(>gal undpr this Sublf."asC', the recover all reasonable 22. Quiet Enioymellt_. Subject to the terms and conditions of the Leasp and this Sublease, so long as Sublessee complies with 14 / tJ-1r- all of ils (lllligaLiot\s IIlH!pr Lhis Sllblpase and Lhp !,pasp, SllhlpsSOl' shall SC'(.~UI'(' to Stllll('s~~c'P Lhc~ qllil'l pnJoYlllt~t\L Ill' Lhl" Pl'L'1II1SPS wiLhout. oh.j(~cLiotl or iI1L(~l'f(-"r'Ptlc.p from Sublessor or any party claiming ulld(~r Subl(~ssor. 23. Ar~QLlratj_gJ-'. Any controversy or claim between the parties relating to this Sublease or the Lease or any other agreements relating hereto shall first be determined by arbitration. In the spirit of mutual respect and cooperation uoth parties agree that legal action to settle disrrutes shall always ue the action of last resort. All arbitration shall be conducted under the Commercial Rules of the American Arbitration Association. All costs associated with arbitration shall be born equally by both parties regardless of the outcome of the arbitration. Any conLroversy con.cerning whether an issue is arbitrable shall be determined by the arbitrators. Judgment upon the arbitration award may be entcr'ed in any court having jurisdiction. The institution and maintellaIlce of any action for judicial I"elief or pursuit of a provisioIlal or ancillary relnedy shall flot COflstitute a waiver' of thp right or any p;:lrty to submit the controversy or claim Lo at'hi Lr'aLioll i r any oLhpr par'Ly conLpsL~~ slu"h act ion for judicial reli,.r. Nothing contained in this Spctioll shall limit the right or either party Lo exercise self-help remedies or to obtain provi:,-_;ional or ancillary remedies from a courl of competenL jurisdiction beforp or during thp pendency of any arbitration nor does the exprcise of any sllch remedy waivp the right of eithpr party to resort to arbitration. 24. General Provisions. (a) Captions. The captions and headings used in this Sublease are for the purpose of convenience only and shall not be construed to limit or extend the meaning of any provision of this Sublease. (b) Notjces and Addresses. All notices, demands, requests or replies provided for or permitted by this Sublease shall be ill wriLing and Ulay be delivert.':,d by anyone of lhe following ",,,thods: (I) by pprsonal delivery; (2) by deposit with the U.S. Postal Service as certified or registered mail, return receipt reqllc'sLc:>d, posLage prepaid. to Lhe addresses staled bplow; (3) by prepaid tEd'?gram; or (4) by deposit with an overnight pxprpss del Ivery sprvice. Notice deposited with the U.S. Postal Servic:e in the manner described above shall bp deemed effec~tive thr(-'(~ (3) Illlsiness days after deposil wiLh Lhe' PosLal Sprvicp. Notice by t,'legram or overnight exprpss delivery sprvice shall be dee1l1c~d effE'cLivE~ onE> (1) business day after Lransmission to the telegraph company or after deposit with the express delivery service. Notice by personal delivery shall be dpemed pffective at 15 /d---'/S thc~ Lilllc~ of 1)(-'1'80I1a1 dc>livc~ry. For Lhc" put'pOf3,PS of l1oLicps. (tPllIand. l'("qupsL. tT'ply or paYIIIC'llt. tht, ;::\ddr'ess of Sublessor Shall be': American Golf CorporaLion c/o Chula Vista Golf Course 4475 BoniLa Road Bonita, CA 91902 with a copy to: American Golf Corporation 1633 26Lh Street Santa Monica, CA 90404-4024 Attn.: Legal Department The address of Sublessee shall be: PHS Company 4475 Bonita Hoad Bonita, CA 91902 ALLn.: C.E. Campion (c) GQycXDinlLJ"aw. This Sublease and the righLs and liabilities of the parLies to this Sublease shall be governed by the laws of Lhe State of California. (d) SgverabilJty_. If any provision of Lhis Sublpase is invalidatpd by arbitration, judicial decision or statutory enacLmenL, Lhe invalidiLy of any such provision will not effect Lhe validiLy or onforceability of any other provision of the Sublease. (e) Waivers. (i) The waiver by Sublessor of any breach of any t"rm, condition or covenant of this Sublease shall not be deelIle(1 to be a waiver of any otller term, condition or covenant or any subsequent breach of same. The acceptance of late rent payment shall be dp('med Lo be a waiver of Lhe defaul L associated only wi th that particular rent payment at the time of acceptance of such payment. (ii) The waiver by Sublessee of any breach of any Lerm, condiLion or covenant of this Sublease shall not be deenled to be a waiver of any other term, condition or covenant or any s\lbseqllent breach of same. In any case. no covenant, term or corldiLion of Lllis Sllblease shall lle deemed to have beerl waived by either party unless such waiver is in writing and is signed by the party waiving. ( f) EnoL i re Agreemen t . This Sublease is the enLire 16 /t),'~ agrC'('lllpnt lH'Lwc'vn the parties, and supprsedcs <"lny Pl'ior agrePIllPnLs, reprl-'~~PllLati()ns. negotiations or correspondence between the part.ies exc('pL as l'xpr'l'ssc'd hc~rl~in. Except as otherwise pl'ovided hpl'pin, no Stlh;)Cqlll'llt changl' 01' addition to this Suhlt"asc' sh;-tll be binding unlpss in wt'iling and signed by the par'Lies. (g) Alll11QLLty. (i) Sublessee is a legal business trust and the individual executing this Sublease on behalf of said business trust represents and warrants that he is duly authorized to execute and deliver this Sublease on behalf of said entity in accordance with its t,'ust indenture and that this Sublease is binding upon said entity in accordance with its terms. (ii) Sublessor is a California corporation and the individual executing this Sublease on behalf of said corporatioll represents and warrants that he is duly authorized to execute and deliver this Sublease on behalf of said entity in accot'Clance with its corporate bylaws and that this Sublease is binding upon said entity in accordance with its terms. Suhl ('a:;L~ an' Suh 1 c.'asp. (h) Exhibi,Ls. All exhibits attached to ht>reby illcorporatc'd into and madt, a part or this this ( i ) perforJllancc of each Jil.n~_. term, TilllP is of thp PSSPI1CP for' tht" condition and covenant of this Sublease. (j) E_sJ&I>E~.~ertj.Jj_g_",_te. Ei ther Sublessor or Sublessee may request an estoppel certificate from the other party regarding any matter referred to in this Sublease or in the Lease and the parties' agree to furnish said certificate within fifteen (15) days following receipt of written notice of such request. 25. CQmp.lj".Ilc::.~....J\'i.UL...1..aws. Each party agrees to compl y wi t h all rederal, state, county, and local laws, rules, regulations, ordinances, and codes relating to the use and operation by such party of the Premises. Nei ther party shall store, manufacture, use, disposp of, or release allY hazardolls substances or materials on, uncler, or around the Premises, except such hazardous substances or DlaLerials custoDlarily used in tile operatioll and Illailltenarlce of a l'pstauranL. har facility, or a golf C()llrSC~ ope'ration providF'd that such hazardous Sllbstancps alH! mal.prials are llSpd (\IH1 stol,t"d in su(:h rlllantitit,S ;:uHI in su(~h m;\lll1e1' as to comply with all applicable fedend, state, county, '" local laws and regulations. Both partic>s here'by agrpp to ill !llnify. defend, and hold harmless the other party and i Ls owners, off icers, employees. and agents from and against all claims, actions, liabilities, damages, judgments, losses, costs, and expenses (including attorney's fees) arising from the ilHlemnify ing party's misuse or improper manufacturEc', storage, disposal, or relp~se of hazardous substances or materials 17 //)'97 '"' on. under. or around the Premises or any remedial action required by any governmental or quasi-governmental agency with respect to such hazardous substances or materials. 26. Capital improvements. Sublessee hereby agrees to complete. (with Sublessor' s and City's prior approval). wi thin the current Term of the Lease the capital improvement items described in Exhibit "H" attachecj to this Sublease. Once work commences on any specific improvement project Subleasee agrees to complete the project in the most expedient and timely manner possible. Sublessee acknowledges and understands that ei ther Sublessor a.nd/or City may impose certain conditions upon Sublessor in connection with such capital improvement items. SUblessor aCknowledges that "imposed certain conditions" as mentioned above may vacate, at Sublessee's option. Sublessee'S obligation to complete any or all capital improvements as described in Exhibit "H". 27. Golf Cour Emplovee Meals. Sublessee hereby agrees that all purchases at the Restaurant for food and non-alcoholic beverages made by those AGC employees duly employed onlY at the Chula Vist Golf Course shall be charged at one-half (50%) the price charged to the public. Sublessor acknOWledges that such accommodation does not extend to other AGe employees employed at other AGe facilities or their corporate office. 28. No EncUQlQrances. Neither party to this Sublease shall create or incur any voluntary or involuntary liens, mortgages. or ot.her encumbrance aQ~i-not the Prc:rnis-c:3--or any of t.hc.-pc~nal Property. 29. Use of Premises. Sublessee intends to offer cost effective and profitable hours of operation and intends to implement an aggresive marketing plan to attract new patrons for ca.tered events. conferenceS and special ~'a la carte" events ope'n to the general publiC. The special "a la carte" events include but may not be 1i ted t~ a Friday Night Big Band Dinner Dance and a Sunday Champagne Jaz Brunch. In addition, Sublessee intends to continue to offer ade,.uate services for the golfer and the general pUblic in the Nineteenth Hole Sports Pub and the f-~ck Bar. SUBLESSEE SUBLESSOR PHS COMPANY. a legal business trust By ~ ~~ ~~_C_ Its Firat Trustee AMERICAN GOLF CORPORATION a California corporation "'~_ ... sf:A It t"EC.r-t -rMY 18 /IJ.,IJY Attachment D PROPOSED CAPITAL IMPROVEMENTS PHS COMPANY TO THE FACILITIES AT 4475 BONITA RD. A.) SHORT TERM IMPROVEMENTS 1-3 MONTHS: 1.) REMOVE VERTICAL WOODEN POLES, LATTICE WORK AND BRASS RAILS IN THE GARDEN ROOM TO MAKE SPACE MORE FLEXIBLE IN ACCOMMODATING BANQUET STYLE SEATING ARRANGEMENTS. 2.) LAY NEW CARPETING IN THE GARDEN ROOM, EXISTING CARPETING IS WORN TIIIN AND SPOTTED. :1.) LAY A NEW PARQUET DANCE FLOOR AT THE BASE OF THE STAIRS IN THE GARDEN ROOM TO ACCOMMODATE THE FRIDAY NIGHT BIG BAND DINNER/DANCE MEAL PERIOD. 4.) I1ENOVATE NON-LOAD BEARING WALL BETWEEN THE GARDEN ROOM AND TilE FAIRWAY ROOM. 5.) REPLACE EXISTING CURTAINS ON HALLWAY STORAGE AREA WITH AN ACCORDION DOOR. B.) NEAR TERM IMPROVEMENTS 3-24 MONTHS: 1.) REPLACE THE EXISTING CHANDELIERS IN THE BALLROOM. C.) PROPOSED LONG TERM IMPROVEMENTS >24 MONTHS: 1.) ADD A SPANISH STYLED PATIO, WITH WATER FOUNTAIN, ADJACENT TO THE EXISTING BALLROOM ON THE SOUTH SIDE OF THE FACILITY. PATIO WOULD BE ENCLOSED WITH WALLS COMPLEMENTING THE EXTERIOR OF THE FACILITY AND SPANISH STYLED WROUGHT IRON GATES. 2.) COSMETICALLY AND STRUCTURALLY RENOVATE FRONT MAIN BAR AREA - POSSIBLY AlJIHN(; A SKYLIGHT TO IMPROVE NATlIHAL LIGHTING; POSSIBLY SHRINKING THE SIZE OF THE BAR MAKING IT LESS OBTRUSIVE AND FREEING UP MORE USEABLE FLOOR SPACE; POSSIBLY ENCLOSING SOME OR ALL OF THE FOUR EXISTING WALKWAYS INTO THE SPACE FROM THE FRONT HALLWAY WITH DOORS AND/OR WALLS TO MAKE THE SPACE MORE SALABLE FOR PRI V ATE FUNCTIONS. APPROVAL OF THOSE PROJECTS LISTED IN SECTION "A" ABOVE IS REQUESTED AT THE TIME OF INITIAL SUBMISSION OF THE SUBLEASE FOR APPROVAL. /p,99 ...2.2 - 8/ RESOLUTION NO. 1~~:J5' . RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AMERICAN GOLF CORPORATION'S REQUEST TO SUBLEASE THE GOLF COURSE RESTAURANT AND BAR TO PRESTIGE HOSPITALITY SERVICES WHEREAS, American Golf corporation has requested to sublease the Golf Course Restaurant and Bar operation to Mr. Chris campion, President, Prestige Hospitality Services Company in accordance with paragraph #17, Assignment/Subleases, of the Agreement between American Golf corporation and the city of Chula Vista for the operation of the Golf Course Restaurant and Bar facility. NOW, THEREFORE, BE IT RESOLVED that the city council of the City of Chula Vista does hereby approve American Golf corporation's Request to Sublease the Golf Course Restaurant and Bar to prestige Hospitality Services. d as to f Ih . presented by Jess Valenzuela, Director of Parks and Recreation Bruce M. Boogaard, Attorney C:\nIPmti&. ... .... /().../()o COUNCIL AGENDA STATEMENT Item I J ITEM TITLE: Meeting Date 5-26-92 Resolution I"":J~ Amending the FY 1991-92 budget to add two temporary, part-time Unclassified Intern positions in the Public Works Department and appropriating funds therefor Director of Public wor~~ City ManagerJG, ~ ~ - (4/5ths Vote: Yes-LNo_> SUBMITTED BY: REVIEWED BY: BACKGROUND: The 1991-92 budget includes a Capital Improvement Project to perform a Growth Management Program Traffic Study. Transportation Development Impact Fees funds were appropriated for this purpose. It was staff's initial intent to have a transportation consultant perform the Growth Management Program Traffic Study. Staff has reassessed the need to engage a traffic consultant and has determined that it would be possible to perform the study "in-house" with temporary personnel. Performing the study "in-house" is estimated to result in a savings of more than $30,000. Specifically, staff is requesting Council's approval to utilize funds appropriated in the CIP Growth Management Traffic Monitoring Study project to hire two additional part-time Intern positions to collect field data for the Growth Management Traffic Monitoring study. RECOMMENDATION: That Council approve the resolution authorizing two temporary part-t ime Intern II pos it ions, for a total of 360 hours, between June 1 and October 31, 1992, to collect traffic intersection turning movement counts for the 1992 Traffic Monitoring study and appropriate $3,000 from the unappropriated balance of the General Fund. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The goal of the Growth Management Traffi c Monitori ng Program is to assess traffic conditions in the field and monitor the performance of the street system in terms of 1 eve 1 s of servi ce and provide the Council i nformat i on on how our Traffic Thresholds are being met. Attached as Exhibit "A" is a copy of those thresholds. The 1989 and 1990 Traffic Monitoring Studies were prepared by a professional consultant because staff did not possess at that time sufficient resources, computer software, nor available staff time to perform these studies in-house. The initial studies required verification of those data to be used in future studies to provide comparison of changes in level of service performance. These first studies required the collection of traffic volume turning moves during the AM, noon and PM peak periods at over 100 intersections. Based on those earlier studies, staff determined that a total of only 45 peak periods at 36 intersections need to be monitored on an annual basis. These intersections were identified in the previous studies as those /1-/ Page 2, Itelll / J Meeting Date 5-26-92 where the peak hour level of service was far worse. Attached as exhibit "B" is a copy of the results of the earlier intersection study with the intersections and peak periods to be studied now identified for Council's information. Additionally, the methodology used in calculating levels of service performance required the use of computer software which staff did not process. Since staff is in the process of obtaining a computer and software to analyze traffic operating level-of-service conditions, we have the capabil ity of performing the analytical portion of the Traffic Monitoring Study. However, we still lack the personnel to collect field data. In order to prepare the report, the field data to be collected consists of turni ng movement counts and travel time pl ace duri ng the 45 peak periods identified above. Once the field data is collected, the data will be analyzed utilizing a level-of-service Highway Capacity Manual (HCM) methodology computer software model. Staff is requesting Counci 1 approval to add two temporary part-time Intern II's to perform the field data collection. It is estimated that a total of 360 hours are required for two Interns for four hours each during the 45 peak periods at the 36 identified intersections. The total cost for the 2 Interns is $3,000. FISCAL IMPACT: Funds to perform the 1991-92 Growth Management Traffic Monitoring Study utilizing staff personnel and hiring two Intern II's are available in the 1991-92 Capital Improvement Program (621-6210-TF 224) project. The general fund wi 11 be reimbursed at the full cost recovery rate for a total of $7,321 from the CIP project out of the Transportation Development Impact Fee fund and will result in a net increase to the general fund of $4,321. WPC 5987E //-,).. RESOLUTION NO. 16636 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FY 1991-92 BUDGET TO ADD TWO TEMPORARY, PART-TIME UNCLASSIFIED INTERN POSITIONS IN THE PUBLIC WORKS DEPARTMENT AND APPROPRIATING FUNDS THEREFOR WHEREAS, the 1991-92 budget includes a Capital Improvement Project to perform a Growth Management Program Traffic Study with Transportation Development Impact Fees being appropriated for this purpose; and WHEREAS, it was staff's initial intent to have a transportation consultant perform the Growth Management Program Traffic Study; and WHEREAS, staff has reassessed the need to engage a traffic consultant and has determined that it would be possible to perform the study "in-house" with temporary personnel; and WHEREAS, performing the study "in-house" is estimated to result in a savings of more than $30,000; and WHEREAS, staff is requesting Council's approval to utilize funds appropriating in the CIP Growth Management Traffic Monitoring Study project to hire two additional part-time Intern positions to collect field data for the Growth Management Traffic Monitoring Study. NOW, THEREFORE, BE IT RESOLVED that the city Council of the City of Chula vista does hereby amend the FY 1991-92 budget to add two temporary, part-time Unclassified Intern II positions in the Public Works Department, for a total of 360 hours, between June 1 and October 31, 1992, to collect traffic intersection turning movement counts for the 1992 Traffic Monitoring Study. BE IT FURTHER RESOLVED that the sum of $3,000 is hereby appropriated from the unappropriated balance of the General Fund and transferred into Account No. 100-1430-5105 which General Fund will be reimbursed on a full cost recovery basis from capital Improvement Program 621-6210-TF224. Presented by Approved as to IL Ih. John P. Lippitt, Director of Public Works C:rs\mgtech Bruce M. Boogaa , C1ty Attorney II... 3 {} luJ/-cl- .JlL / ; CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN REVISED TRAFFIC ELEMENT - MAY 1991 GOALS * To provide and maintain a safe and efficient street system within the City of Chula Vista. * To establish a performance measurement methodology enabling the City to accurately determine existing levels of service for motorists. * To define a level of service (LOS) value that represents a high quality of traffic flow under constrained operating conditions during peak periods of traffic activity. * To establish a performance standard which is consistent with the Regional Growth Management Standards. * To maintain consistency in terms of LOS ratings wi th the previous intersection capacity utilization (ICU) methodology. OBJECTIVES 1 . Ensure timely provJ.sJ.on of adequate local circulation system capacity in response to planned growth, maintaining acceptable levels of service. 2. Plan new roadway segments and signalized intersections to maintain acceptable standards at build-out of the General plan Circulation Element. THRESHOLD STANDARDS * City-wide: Maintain LOS "c" or average travel speed on all except that during peak hours than any two hours of the day. * west of 1-805: Those signalized arterial segments which do not meet the standard above, may continue to operate at their current (Year 1991) LOS, but shall not worsen. better as measured by observed signalized arterial segments LOS "0" can occur for no more Notes to Standards * Arterial segment LOS measurements shall average weekday peak hours, excluding special circumstance variations. * Urban and suburban arterials are defined as surface highways having signal spacing of less than two miles with average weekday traffic volumes greater than 10,000 vehicles per day. be for seasonal the and * Arterial segments are stratified into the following three classifications as shown on the attached graphic: //-3 Class I arterials are roadways where free flow traffic speeds range between 35 mph and 45 mph and the number of signalized intersections per mile are less than four. There is no parking and there is generally no access to abutting property. Class II arterials are roadways where free flow traffic speeds range between 30 mph and 35 mph, the number of signalized intersections per mile range between four and eight, there is some parking and access to abutting properties is limited. Class III arterials are roadways where free flow traffic speeds range between 25 mph and 35 mph and the number of signalized intersections per mile are closely spaced. There is substantial parking and access to abutting property is unrestricted. * The LOS measurements of arterial segments at freeway ramps shall be a growth management consideration in situations where proposed developments have a significant impact at interchanges. * Circulation anticipated standards. improvements should be implemented prior to deterioration of LOS below established * The criteria for calculating arterial LOS and defining arterial lengths and classifications shall follow the procedures detailed in Chapter 11 of the 1985 Highway Capacity Manual (HCM) and shall be confirmed by the City Traffic Engineer. * During the conduct of future Traffic Monitoring Program (TMP) traffic field surveys, intersections experiencing significant delays will be identified. The information generated by the field surveys will be used to determine possible signal timing changes, geometric and/or traffic operational improvements for the purpose of reducing intersection delay. * Level of service values for arterial -segments shall be based on the following table: Level of Service AveraQe Travel Soeed (MPH) Class 1 Class 2 Class 3 A 1-35 1-30 1-25 B 1-28 1-24 . 1-19 C 1-22 1-18 1-13 D 1-17 1-14 1- 9 E 1-13 1-10 1- 7 F <13 <10 < 7 Source: Highway Capacity Manual, Special Report 209, Transportation Research Board, National Research Council, Washington, D.C., 1985. 1/-,/ ZmDlementation Measures * Should the Growth Management Oversight Commission (GMOC) determine that the Threshold Standard is not being satisfied, then the City Council shall, within 60 days of the GMDq's report, schedule and hold a public hearing for the purpose of adopting a moratorium on the acceptance of new tentative map applications based on all of the following criteria: 1. That the moratorium is limited to an area wherein a causal relationship to the problem has been established; and, 2. That the moratorium provides a mitigation measure to a specifically identified impact. (C:\SM\TMP91.DOC) , ,. 11--5' . ~ . EXfU&'T '&' Table 1-4 CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN YEAR 1990 TRAFFIC MONITORING PROGRAM SUMMARY OF INTERSECTION CAPACITY UTILIZATION ANALYSIS JHK & ASSOCIATES - APRIL 1991 YEAR 1990 Count Number Intersection/Location AM MIDDAY PM IOl L.O.S IOl LllS IOl LllS 1 Industrial & Palomar Street 0.49 A 0.66 B 0.60 A 2 Industrial & L Street 0.63 B 0.65 B 0.90 O-lk 3 Woodlawn Avenue & "E" Street 0.41 A 0.49 A 0.57 A 4 Woodlawn Avenue & "H" Street 0.39 A 0.61 B 0.60 A 5 Trolley Station Drive & Palomar Street 0.40 A 0.59 A 0.55 A 6 Broadway & "C" Street 0.42 A 0.51 A 0.53 A 7 Broadway & "0" Street 0.33 A 0.45 A 0.51 A 8 Broadway & "E" Street 0.52 A 0.64 B 0.70 B 9 Broadway & "F' Street 0.66 B 0.63 B 0.70 B 10 ~wav & "0" Street 0.34 A 0.68 B 0.72 C,* 11 Broadway & "H" Street 0.39 A 0.65 B 0.65 B 12 Broadway & "I" Street 0.34 A 0.67 B 0.62 B 13 Broadway & "J" Street 0.42 A 0.66 B 0.68 B 14 Broadway & "K" Street 0.35 A 0.55 A 0.60 A 15 Broadwav & "L" Street 0.38 A 0.70 B 0.74 C~ 16 Broadway & Moss Street 0.35 A 0.55 A 0.66 B 17 Broadway & Naples Street 0.36 A 0.67 B 0.80 C'* 18 Broadway & Oxford Street 0.40 A 0.67 B 0.70 B 19 Broadway & Palomar Street 0.53 A 0.66 B 0.66 B 20 Broadway & Anita Street 0.34 A 0.48 A 0.57 A 21 Broadwav & Main Street 0.50 A 0.67 B 0.83 0* 22 Orange Avenue & Palomar Street 0.51 A 0.44 A 0.47 A 23 Fifth Avenue & "E" Street 0.41 A 0.48 A 0.58 A 24 Fifth Avenue & "F' Street 0.50 A 0.57 A 0.66 B 25 Fifth Avenue & "0" Street 0.44 A 0.44 A 0.53 A 26 Fifth Avenue & "H" Street 0.50 A 0.66 B 0.69 B 1-17 /1-7 Table 1.4 (Continued) CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN YEAR 1990 TRAFFIC MONITORING PROGRAM SUMMARY OF INTERSECTION CAPACITY UTILIZATION ANALYSIS JHK & ASSOCIATES - APRIL 1991 YEAR 1990 Count Number Intersection/Location AM MIDDAY PM Kll I&S. Kll I&S. Kll I&S. 27 Filth Avenue & "I" Street 0.32 A 0.47 A 0.59 A ~ ef1h Avenue & "J" Street 0.58 A 0.49 A 0.72 C;(:, , 29 F1fth Avenue & "K" Street 0.48 A 0.41 A 0.48 A 30 F1fth Avenue & "L" Street 0.51 A 0.42 A 0.59 A 31 F1fth Avenue & Palomar Street 0.37 A 0.37 A 0.39 A 1132 Fourth Avenue & "C" Street 0.42 A 0.76 C*,0.75 C~ 33 Fourth Avenue & "0" Street 0.31 A 0.44 A 0.49 A ~ fourth Avenue & "E" Street. 0.47 A 0.74 C* 0.73 C*' 35 Fourth Avenue & "F" Street 0.44 A 0.67 B 0.67 B ,36 Fourth Avenue & "G" Street 0.50 A 0.53 A 0.73 C-J,h. 37 Fourth Avenue & "H" Street 0.48 A 0.70 B 0.74 C~ ~R Fourth Avenue & Itf" S~t 0.52 A 0.68 B 0.80 C:ltE- 39 Fourth Avenue & "J" Street 0.57 A 0.60 A 0.83 03IE: 40 Fourth Avenue & "K" Street 0.49 A 0.54 A 0.67 B 41 Fourth Avenue & "L" Street 0.51 A 0.54 A 0.75 C~ 42 Fourth Avenue & Moss Street 0.44 A 0.51 A 0.60 A 43 Fourth Avenue & Naples Street 0.41 A 0.51 A 0.61 B 44 Fourth Avenue & Oxford Street 0.39 A 0.62 B 0.60 A 45 Fourth Avenue & Palomar Street 0.48 A 0.44 A 0.50 A 46 Fourth Avenue & Orange Avenue 0.61 B 0.50 A 0.75 C,*, 47 Fourth Avenue & Anita Street 0.29 A 0.33 A 0.46 A 48 Fourth Avenue & Main Street 0.44 A 0.53 A 0.54 A 49 Third Avenue & ''E'' Street 0.37 A 0.60 A 0.64 B 50 Third Avenue & Davidson Street 0.30 A 0.49 A 0.54 A 51 Third Avenue & "F' Street 0.37 A 0.64 B 0.78 C~ 52 Third Avenue & "G" Street 0.42 A 0.60 A 0.71 C~ 1-18 //-15 Table 1-4 (Continued) CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN YEAR 1990 TRAFFIC MONITORING PROGRAM SUMMARY OF INTERSECTION CAPACITY UTILIZATION ANALYSIS JHK & ASSOCIATES - APRIL 1991 YEAR 1990 Count Number Intersection/Location AM MIDDAY PM Kll LOS Kl! LOS Kll LOS 53 ll1iuJ Avenue & "Hft Street 0.50 A 0.69 B 0.82 D~ .54 1Jrird Avenue & "I" Street 0.45 A 0.66 B 0.76 c~ 55 Third Avenue & "J" Street 0.56 A 0.74 c~ 0.90 D~: _56 Third Avenue & ''K'' Street 0.43 A 0.61 B 0.75 c~ 57 l)Iird Avenue & "L" Street T 0.45 A 0.73 ci'- 0.75 C~ 58 Third Avenue & Moss Street 0.44 A 0.59 A 0.59 A 59 Third Avenue & Naples Street 0.40 A 0.61 B 0.66 B ,60 1JliI31 Avenue & Oxford Street 0.45 A 0.70 B 0.84 D~ 61 Third Avenue & Palomar Street 0.51 A 0.61 B 0.63 B .62 Third Avenue & Quintard Street 0.33 A 0.52 A 0.53 A 63 Third Avenue & Omngc Avenue 0.43 A 0.48 A 0.63 B 64 Third Avenue & Montgomery Street 0.29 A 0.42 A 0.38 A 65 Third Avenue & Main Street 0.54 A 0.53 A 0.59 A 66 Fourth Avenue & Bever Way 0.49 A 0.65 B 0.76 c~ 67 Second Avenue & "E" Street 0.64 B 0.67 B 0.72 c* 68 Second Avenue & "F" Street 0.49 A 0.47 A 0.66 B 69 Second Avenue & "H" Street 0.58 A 0.54 A 0.61 B 70 Second Avenue & "L" Street 0.37 A 0.41 A 0.47 A 71 Second Avenue & Palomar Street 0.39 A 0.32 A 0.40 A 72 Second Avenue & Omnge Avenue 0.45 A 0.34 A 0.41 A 73 Fl1'St Avenue & "E" Street 0.50 A 0.45 A 0.60 A . 74 Fl1'St Avenue & "H" Street 0.68 B 0.63 B 0.75 c~ 75 Fl1'St Avenue & "L" Street 0.39 A 0.37 A 0.46 A 76 Flower Street & "E" Street 0.52 A 0.57 A 0.74 c~ 77 H,Wtoo Drive & "H" Street 0.67 B 0.69 B 0.96 E~ 78 Hilltop Drive & "I" Street 0.61 B 0.40 A 0.59 A 1-19 / j""? Table 1-4 (Continued) CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN YEAR 1990 TRAFFIC MONITORING PROGRAM SUMMARY OF INTERSECTION CAPACITY UTILIZATION ANALYSIS JHK & ASSOCIATES. APRIL 1991 yEAR 1990 Count Number IntersectionlLocation AM MIDDAY PM lCl L.llS lCl L.llS lCl L.llS 79 ~ve & "J" Street 0.78 C of' 0.49 A 0.80 .C~ .,80 ijjptoD Drive & "L" Street 0.59 A 0.65 B 0.80 C 81 Hilltop Drive & Naples Street 0.51 A 0.46 A 0.54 ,A '82 Hilltop Drive & Palomar Street 0.55 A 0.42 A 0.56 .A 83 Hilltop Drive & Quintard Street 0.56 A 0.32 A 0.45 :A 84 Hilltop Drive & Orange Avenue 0.53 A 0.38 A 0.57 A 85 Hilltop Drive & Main Street 0.52 A 0.46 A 0.53 A 86 Bonita Glen & "E" Street 0.46 A 0.53 A 0.70 B 87 CuyamacaAvenue& "L" Street 0.43 A 0.38 A 0.62 B 88 Max Avenue & Orange Avenue 0.42 A 0.32 A 0.46 A 89 Monserate Avenue & "L" Street 0.47 A 0.40 A 0.65 B 90 Melrose Avenue & Orange Avenue 0.57 A 0.44 A 0.69 B 91 Melrose Avenue & Main Street 0.47 A 0.41 A 0.53 A 92 T~emDh Canyon Road & "L" Street 0.71 C~ 0.61 B 0.73 C~ ~~ Wq,tow Street & Bonita Road 0.57 A 0.57 A 0.77 C~ . 94 Allen School Road & Bonita Road 0.48 A 0.44 A 0.63 B J95 Otav Lakes Road & Bonita Road 0.78 Cflt 0.53 A 0.75 C~ 96 Otay Lakes Road & Allen School Lane 0.36 A 0.31 A 0.33 A 97 Canyon Drive & Otay Lakes Road 0.42 A 0.35 A 0.38 A 98 Bonita Point Plaza Dr. & Otay Lakes Road 0.39 A 0.34 A 0.36 A 99 Wden Vista Drive & East "8" Street 0.57 A 0.62 B 0.78 C~ JOO ~V'.n DelRev & East "H" Street 0.75 C~ 0.48 A 0.79 :C'lJ!, 101 Buena Vista Way & East "8" Street 0.61 B 0.45 A 0.62 B 102 South Western College & East "8" Street 0.57 A 0.54 A 0.53 A ~103 Otav T "k..S Road & PH~t "8" Street 0.75 C~ 0.60 A 0.66 .B 104 Auburn Avenue & East "8" Street 0.44 A 0.28 A 0.43 A 105 Rutgers Avenue & East "8" Street 0.57 A 0.33 A 0.50 A 1-20 / /- II) Table 1.4 (Continued) CITY OF CHULA VISTA GROWTH MANAGEMENT PLAN YEAR 1990 TRAFFIC MONITORING PROGRAM SUMMARY OF INTERSECTION CAPACITY UTILIZATION ANALYSIS JHK & ASSOCIATES . APRll.. 1991 YEAR 1990 Count Number Intersection/Location AM MIDDAY PM Kll L!lS Kll LllS Kll L.QS. 106 Halecrest & Telegraph Canyon Road 0.57 A 0.48 A 0.65 B 107 Crest Drive & Telegraph Canyon Road 0.67 B 0.61 B 0.66 B 108 Paseo Del Rey & Telegraph Canyon Road 0.61 B 0.46 A 0.56 A 109 Medical Center Drive & Telegraph Canyon 0.40 A 0.33 A 0.49 A .,' 1-21 / J- / / COUNCIL AGENDA STATEMENT Item /:J.. Meeting Date 5/26/92 ITEM TITLE: Resolution /t~ 37 Approving Parcel Map Agreement and Authorizing the Mayor to execute said Agreement in conjunction with Final Parcel Map for EastLake Village Center South Resolution I"" '}8'" Authorizing the City Engineer to execute all Parcel Map Agreements on behalf of the City Council SUBMITTED BY: Director of Public Work~ REVIEWED BY: City Manager J.~ ~~ (4/5ths Vote: Yes_ No l) EastLake Development Company (EastLake) has applied for and been granted conditional approval of Tentative Parcel Map 92-2. In satisfaction of Conditions of Approval Nos. 4, 7, and 8, EastLake has executed an agreement which is now before Council for approval. Staff recommends that Council authorize the City Engineer to execute similar parcel map agreements in the future. RECOMMENDATION: That Council adopt the resolutions. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The project, located at the southwest corner of the intersection of Otay Lakes Road and EastLake Parkway, consists of the subdivision of an existing parcel into 12 lots for commercial development. Section 66426(c) of the Subdivision Map Act requires subdivision of a parcel into more than five commercial lots through the parcel map process where the land is commercial and the street al ignments have been approved. This parcel is commercially zoned and fronts on Otay Lakes Road and EastLake Parkway. Parcel maps are generally administratively processed and approved jointly by the Pl anni ng and Publ i c Works Departments. The tentat i ve parcel map for the subject development has been reviewed and conditionally approved by Letter of Conditional Approval dated May 11, 1992. Condition Number 4, 7, and 8 required the developer to enter into an agreement with the City to not protest the formation of a Telegraph Canyon Channel Maintenance District (Condition 4); indemnify the City from any claim or action with regard to the approval of the subdivision (Condition 7); and to restrict access to provide cable television service to only those franchised television companies who are in compliance with all the terms and conditions of their franchise (Condition 8). The proposed agreement will satisfy these conditions. The City Attorney has determined that similar conditions relating to indemnity and restriction of access to provide cable television service shall be placed on all subdivision and parcel maps. I,), ./ Page 2, Item Meeting Date ;;... 5/26/92 Currently, staff does not have the authority to accept agreements in connection with parcel maps: Since Council has in the past delegated authority for approval of parcel maps to the Director of Planning and City Engineer and delegated authority for acceptance of grants of easements and dedications on parcel maps to the City Clerk, it is recommended that Council also delegate authority to execute future parcel map agreements relating to these standard conditions to the City Engineer and/or the Director of Planning. These agreements will gi ve the Ci ty a 1 egal document to enforce conditions of the parcel map approval that cannot be completed prior to recordation of the map. Typically, these agreements may relate to required public improvements where no future bU1lding permit will be issued, agreements not to protest future actions, cable television access provisions, or indemnification. FISCAL IMPACT: Avoidance of staff costs charged to developers for presenting standard parcel map agreements to Council. GF /EP-141 WPC 6000E )J.P,2 OTAY LAKES ROAD 6 7 8 9 10 11 /' PROJECT BOUNDARY' / 3 2 -I... ~'?: #' q,,'f tv /~ ~ <v"r' 1& IN~ ::'1 c5t . sA" fW'/) 54 ($CUlM , ~. '.' ~ .---:- ....:,..:...;-- ---,". .,. ~ .1[Il RIIIER . ---- sv.[ElW" . ~ i TFl.E:GRAPH CANI'Qy ROAD VICINITY MAP NO SCALE OWNBY: SE ASTLAKE VILLA DATE:5-15-92 TPM 92-2 I.:J.~:J FILE NO.EP-141 ENTER SOUT ~~f? ~ ~~=F~ b OlY OF CHULA VISTA DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION May 11, 1992 File # EP-141 Eastlake Development Company 900 Lane Avenue, suite 100 Chula Vista, CA 91913 TENTATIVE PARCEL MAP 92-2, EASTLAKE VILLAGE CENTER SOUTH , The Engineering and Planning Departments have reviewed Tentative Parcel Map 92-2, dated May 6, 1992. The map substantially meets the requirements of the Subdivision Map Act for tentative maps. The Tentative Parcel Map is hereby approved subject to the following: A. Conditions of Approval 1. Reciprocal access easements shall be granted amongst all parcels per Chula vista Municipal Code requirements to assure permanent access to Otay Lakes Road or Eastlake Parkway for each parcel as determined by the City Engineer. A note shall be placed on the Final Parcel Map indicating irrevocable access to a public street shall be provided for parcels 2-5 which shall be recorded in CC&R's for the subject development. 2. The subject property is within the boundaries of Assessment Districts 85-2 and 90-3. The developer shall be responsible for all costs associated with reapportionment of assessments as a result of subdivision of lands within the project boundary. The developer shall request said reapportionment and shall provide a deposit in the amount of $1000.00 to cover the initial costs prior to the approval of the Final Parcel Map. 3. The subj ect property is wi thin the boundaries of the Telegraph Canyon Drainage Benefit area established by City Ordinance No. 2384. The developer shall satisfy payment of the Telegraph canyon Drainage fees in the amount of $87,422.83 by providing a letter indicating credits shall be used or paying the fees prior to approval of the Final Parcel Map. 4. The developer shall enter into an agreement with the City whereby the developer agrees not to protest formation of a Telegraph canyon Maintenance District. said agreement shall be recorded prior to approval of the Final Parcel Map. /,;2 -LJ 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5021 Eastlake Dev. Co. -2- May 11, 1992 5. Prior to approval of the Final Parcel Map, the developer shall submit drawings showing lane assignments for all proposed driveways to the property from otay Lakes Road for the interim condition and at build out for approval by the City Traffic Engineer. 6. The developer shall grant to the City on the Final Parcel Map an irrevocable offer of dedication for future street purposes along otay Lakes Road as approved by the City Engineer. 7. On the condition that the City shall promptly notify the subdivider of any claim, action or proceeding and on the further condition that the city fully cooperates in the defense, the subdivider/applicant shall enter into an agreement 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 of its Planning Commission, City councilor any approval by its agents, officers, or employees with regard to this subdivision. S. The developer shall permit all franchised cable television companies equal opportunity to place conduit to provide cable television service for each lot within the subdivision. However, developer shall restrict access to the conduit to only those franchised cable television company (ies) 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 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. The developer shall enter into an agreement with the City to insure that compliance with this condition is met prior to approval of the Final Parcel Map. 9. Prior to approval of a Final Parcel Map, the owner shall submit a copy of said Map in a digital format such as (DXF) graphic file. This computer Aided Design (CAD) copy of the Final parcel Map shall be based on accurate coordinate geometry calculations and shall be submitted in duplicate on 5 1/2" HD floppy disks. J;;'~ 5" C:lTY_OFGHULA VISTA_ " I Eastlake Dev. Co. -3- May 11, 1992 10. The boundary of the subdivision California coordinate system - Zone by the City Engineer. B. The following are code requirements: shall be tied to the VI (1983) or as approved 1. All utilities serving the subject property and existing utilities located within or adjacent to subj ect property shall be undergrounded in accordance with the Chula vista Municipal Code prior to issuance of building permits. 2. The developer shall pay Traffic Participation fees prior to the issuance building permit. . 3. The developer shall satisfy the requirement to pay the public facilities and transportation development impact fees by including said payment in an assessment district, providing a letter indicating that credit shall be used or pay any outstanding amount. Signal of any 4. All applicable sewer fees shall be paid prior to the issuance of building permits. 5. The developer shall comply with the requirements of the Design Review approval. On site public sewer, water, storm drain and sidewalk easements shall be granted prior to approval of the plans for required improvements. 6. The developer shall comply with all applicable sections of the Chula vista Municipal Code. Preparation of the Final Parcel Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the city of Chula vista Subdivision Ordinance and Subdivision Manual. This preliminary approval does not constitute final approval of the Tentative Parcel Map. There is a 15-day appeal period during which any interested party can appeal this determination, in whole or in part. Appeals that cannot be resolved by City staff will be heard by the City Planning commission at the next available meeting. Final determination of the Tentative Parcel Map will be withheld pending the outcome of any appeals. If no appeals are received during the appeal period, the City will consider this notice a Notice of Final Approval. 1;2. -(, CITY OF CHULA VISTA .' .l Eastlake Dev. Co. -4- May 11, 1992 The expiration date of this Tentative Parcel Map shall be two years from the date the Notice of Final Approval is effective. The Tentative Parcel Map will expire at that time unless the Final Parcel Map has been filed or an extension of time is requested and approved by the City according to section 66452.6 of the State Subdivision Map Act. If you have any questions, please contact Gena Franco, civil Engineer, at 691-5028. "'" g/b//l i/~:4 WILLIAM 1<. UL ICH SENIOR CIVIL ENGINEER SE:kw cc: Steve Griffin, Senior Planner Martin Miller, Associate Planner John Hardesty, Permits Engineer Project Design Consultants, 701 B Street, suite 800 San Diego, CA 92101 (SE\VILLAGE. LTR) j.) - 7 r--1TV OF r::1-l11l A Vl~TA RESOLUTION NO. //,(,:J. 7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING PARCEL MAP AGREEMENT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT IN CONJUNCTION WITH FINAL PARCEL MAP FOR EASTLAKE VILLAGE CENTER SOUTH WHEREAS, EastLake Development Company (Eastlake) has applied for and been granted conditional approval of Tentative Parcel Map 92-2; and WHEREAS, in satisfaction of Conditions of Approval Nos. 4, 7 and 8, EastLake has now executed an agreement. NOW, THEREFORE, BE IT RESOLVED that the city Council of the ci ty of Chula vista does hereby approve the Parcel Map Improvement Agreement for EastLake Village Center South regarding conditions Nos. 4, 7 and 8 with EastLake Development Company, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said agreement for and on behalf of the city. John P. Lippitt, Director of Public Works Appr~ved as tolf , ! I" t~k f~ ( Bruce M. Attorney (1 Presented by ~/ ~ ity "'-,_ C:\rs\TPM 92-2 INI-I / 1:l1l~2. \ \?' Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, Ca. 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Declarant PARCEL MAP IMPROVEMENT AGREEMENT EastLake Village Center South Regarding Condition Nos. 4, 7, and 8 This Agreement is made this May 19, 1992, by and between THE CITY OF CHULA VISTA, California ("Chula vista" or-"Grantee" for recording purposes only) and EASTLAKE DEVELOPMENT COMPANY, a California General Partnership ("Developer" or "Grantor"), and is made with reference to the following facts: R E C I TAL S A. This Agreement concerns and affects the property legally described as Lot 21 of Map 12545 as filed in the city of Chula Vista, County of San Diego ("Property"), and is commonly known as the real property which is the subject matter of the EastLake Village Center South Parcel Map, No. 1 B. Developer is the owner of the Property; and, C. Developer has applied for and been granted a tentative parcel map, Tentative Parcel Map No. 92-2, ("Tentative Parcel Map") for the subdivision of the Property; and, D. City has issued tentative, conditional approval of the parcel map by the Letter of Conditional Approval from the City of Chula vista, Engineering Department, dated May 11, 1992, ("Ap- proval Letter"), a condition ("condition NO.4") of which was: ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 1 /).&:1 The developer shall enter into an agreement with the city whereby the developer agrees not to protest formation of a Telegraph canyon Maintenance District. said agreement shall be recorded prior to approval of the Final Parcel Map; and, E. Another condition ("Condition No.7") of the Approval Letter was: On the condition that the city shall promptly notify the subdivider of any claim, action or proceeding and on the further condition that the city fully cooperates in the defense, the subdivider/applicant shall enter into an agreement 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 of its planning commission, City Councilor any approval by its agents, officers, or employees with regard to this subdivision; and, F. Another condition ("Condition No.8") of the Approval Letter was: The developer shall permit all franchised cable television companies equal opportunity to place conduit to provide cable television service for each lot within the subdivision. However, developer shall restrict access to the conduit to only those franchised cable television company(ies) 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 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. The developer shall enter into an agreement with the city to insure that compliance with this condition is met prior to approval of the Final Parcel Map; and, G. city is willing, on the promises, security, terms and conditions herein contained, to approve the Final Parcel Map; NOW THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as follows: 1. Aqreement Applicable to Subsequent Owners. 1.1 Aqreement Bindinq Upon Successors. Except as to the provisions of Section 2 of this Agreement, entitled "Condition No. 8--Subdivision Map Indemnity, which is a duty of Developer that shall not be binding on good faith transferees for bona fide ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 2 /~/I"if value of the Developer, t~his Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the Parties as to any or all of the Property until released by the mutual consent of the parties. 1.2 Aareement Runs with the Land. Except as to the provisions of Section 2 of this Agreement, entitled "Condition No. 8--Subdivision Map Indemnity, which is a duty of Developer that shall not be binding upon and run with the ownership of the land, t~The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the land owned by the city adjacent to the Property. The Burden touches and concerns the Property. It is the intent of the parties, and the parties agree, that this covenant shall be binding upon, and run with, the ownership of the land which it burdens. 2. Condition No. 8--Subdivision Mao Indemnitv. In satisfaction of Condition No. 8 of the Approval Letter, the Developer agrees that, on the condition that city shall promptly notify the Developer of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense, the Developer shall 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 approvals by its Planning commission, City Council, or any approval by its agents, officers, or employees with regard to this subdivision. 3. Condition 9--Cable Television Easements In satisfaction of Condition No. 9 of the Approval Letter, the Developer agrees to permit all cable television companies franchised by the city of Chula vista equal opportunity to place conduit to and provide cable television service for each lot within the subdivision. Developer further agrees to grant, by license or easement, and for the benefit of, and enforceable by, the city of Chula Vista, conditional access to cable television conduit within the subdivision properties only to those cable television companies franchised by the city of Chula vista the condition of which grant being that they are and remain in compliance with, and that they promise to remain in compliance with, the terms and conditions of the franchise and with all other rules, regulations, ordinances and procedures 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. Developer hereby conveys to the city of Chula vista the authority to enforce said covenant by such remedies as the City determines appropriate, including revocation of said grant ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 3 /,;v1~5 upon a determination the city of Chula vista that they have violated the conditions of the grant. 4. Condition No. 4--Not to Protest Formation of Teleqraoh Canvon Channel Maintenance District. 4.1. Developer, and their heirs, assigns, transferees, and other successors in interest, agree to not protest or oppose the formation of of such district as the City proposes for the maintenance of the Telegraph Canyon Flood Control Channel, and to not protest or oppose the inclusion of the Property within said district. 4.2. This agreement to not protest or oppose the inclusion of the Property in the district shall not be deemed a waiver of any constitutional rights, and shall not interfere with the right of any person to vote in a secret ballot election. 5. Recordinq. This Agreement, or an abstract hereof prepared by either or both parties, may be recorded at the option of either party. 6. Miscellaneous. 6.1. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.s. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party. Facsimile transmission sh~ll constitute personal delivery. CITY OF CHULA VISTA 276 4th Avenue Chula Vista, CA 92010 Attn: Director of Public Works ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 4 I;l.~ -t, Developer Eastlake Development Company, a California General Partnership 900 Lane Avenue, suite 100 Chula Vista, CA 91914 A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. Facsimile transmission shall constitute personal delivery. 6.2. Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. 6.3. Entire Aareement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. This includes, but is not limited to the "Development Agreement by and between Developer Development Company, Developer, and City of Chula Vista, City". 6.4. Preparation of Aareement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. 6.5. Recitals: Exhibits. Any recitals set forth above are incorporated by reference into this Agreement. 6.6. Attornevs' Fees. In the event of any dispute ar~s~ng out of this Agreement, the prevailing party in any action shall be entitled to reasonable attorneys' fees in addition to any other costs, damages, or remedies. (End of Page. Next Page is Signature Page.) ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 5 1.2./1-7 signature Page to PARCEL MAP IMPROVEMENT AGREEMENT EastLake Village Center South Regarding Condition Nos. 4, 7, and 8 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be effective as of the day and year first hereinabove set forth. Dated: , 1991 THE CITY OF CHULA VISTA By: Tim Nader, its Mayor Attest: Dated: M4f /5" Beverly Authe cit lerk oved ~ ruce M. Boogaar , City Attorney , 1991 EastLake Development Company a California general partnership comprised of cor tions By: Its: I~ By: DAVID V, INC., a California corporation, General Partner By: Its: W~~ \A' c.o ftt J -4 k-~ ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 6 1-2. /I" T' STATE OF CALIFORNIA ) ) ) ss. COUNTY OF SAN DIEGO On ore me, pe sonally appeared personally known to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their/ authorized capacity, and that by his/her/theirsignature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Signature 1du~ Q OffiCIAL SEAl : .... . SILVANA BRAZELL , ,'NOTARY PUBlIC.f;AllfORNIA , .~ II PRINCIPAL OffiCE IN SAN DIEGO COUNTY tJ-z .. .-' My CommISSIOn Eap'res fob 12, 1994 ~:: WITNESS my hand and official seal. STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) On S-lf~J.'J- ~b~for~ m~, personally appeared Jht?A_~~ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their/ authorized capacity, 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 instrumen @,..:.OfflCIAlSEAl. , _ SILVANA BRAlfll .a NOTARY PUBlIC-CAURiRNIA PRINCIPAl OffiCE IN - - SAN DIEGO COlINII . .' Mr Commission hpttes Feb. 12. 1994 WITNESS my hand and official seal. Signature ~fhr (SEAL) 1:l"F1 1. Filing instructions to the Title company should include insertion of info to complete this section. MR~ Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula vista, Ca. 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Declarant PARCEL MAP IMPROVEMENT AGREEMENT EastLake Village Center South Regarding Condition Nos. 4, 7, and 8 This Agreement is made this May 19, 1992, by and between THE CITY OF CHULA VISTA, california ("Chula vista" or "Grantee" for recording purposes only) and EASTLAKE DEVELOPMENT COMPANY, a California General Partnership ("Developer" or "Grantor"), and is made with reference to the following facts: R E C I TAL S A. This Agreement concerns and affects the Property legally described as Lot 21 of Map 12545 as filed in the city of Chula Vista, county of San Diego ("property"), and is commonly known as the real property which is the subject matter of the EastLake village Center South Parcel Map, No. 1 B. Developer is the owner of the property; and, C. Developer has applied for and been granted a tentative parcel map, Tentative Parcel Map No. 92-2, ("Tentative Parcel Map") for the subdivision of the Property; and, D. City has issued tentative, conditional approval of the parcel map by the Letter of Conditional Approval from the City of Chula vista, Engineering Department, dated May 11, 1992, ("Ap- proval Letter"), a condition ("Condition NO.4") of which was: ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 1 /,),/1 rl/ The developer shall enter into an agreement with the City whereby the developer agrees not to protest formation of a Telegraph Canyon Maintenance District. said agreement shall be recorded prior to approval of the Final Parcel Map; and, E. Another condition ("Condition NO.7") of the Approval Letter was: On the condition that the City shall promptly notify the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense, the subdivider/applicant shall enter into an agreement 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 of its Planning Commission, City Councilor any approval by its agents, officers, or employees with regard to this subdivision; and, F. Another condition ("Condition NO.8") of the Approval Letter was: The developer shall permit all franchised cable television companies equal opportunity to place conduit to provide cable television service for each lot within the subdivision. However, developer shall restrict access to the conduit to only those franchised cable television company(ies) 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 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. The developer shall enter into an agreement with the City to insure that compliance with this condition is met prior to approval of the Final Parcel Map; and, G. City is willing, on the promises, security, terms and conditions herein contained, to approve the Final Parcel Map; NOW THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as follows: 1. Aareement Applicable to Subseauent Owners. 1.1 Aareement Bindina Upon Successors. Except as to the provisions of section 2 of this Agreement, entitled "Condition No. 8--Subdivision Map Indemnity, which is a duty of Developer that shall not be binding on good faith transferees for bona fide ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 2 1)./1./.,2.. value of the Developer, t~his Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the Parties as to any or all of the Property until released by the mutual consent of the parties. 1.2 Aareement Runs with the Land. Except as to the provisions of section 2 of this Agreement, entitled "Condition No. 8~-Subdivision Map Indemnity, which is a duty of Developer that shall not be binding upon and run with the ownership of the land, t~The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the land owned by the city adjacent to the Property. The Burden touches and concerns the Property. It is the intent of the parties, and the parties agree, that this covenant shall be binding upon, and run with, the ownership of the land which it burdens. 2. Condition No. 8--Subdivision MaD Indemnitv. In satisfaction of Condition No. 8 of the Approval Letter, the Developer agrees that, on the condition that city shall promptly notify the Developer of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense, the Developer shall 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 approvals by its Planning Commission, City Council, or any approval by its agents, officers, or employees with regard to this subdivision. 3. Condition 9--Cable Television Easements In satisfaction of Condition No. 9 of the Approval Letter, the Developer agrees to permit all cable television companies franchised by the City of Chula vista equal opportunity to place conduit to and provide cable television service for each lot within the subdivision. Developer further agrees to grant, by license or easement, and for the benefit of, and enforceable by, the City of Chula Vista, conditional access to cable television conduit within the subdivision properties only to those cable television companies franchised by the City of Chula Vista the condition of which grant being that they are and remain in compliance with, and that they promise to remain in compliance with, the terms and conditions of the franchise and with all other rules, regulations, ordinances and procedures 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. Developer hereby conveys to the City of Chula vista the authority to enforce said covenant by such remedies as the city determines appropriate, including revocation of said grant ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 3 !),r!'!J upon a determination the city of Chula vista that they have violated the conditions of the grant. 4. Condition No. 4--Not to Protest Formation of Teleqraoh Canvon Channel Maintenance District. 4.1. Developer, and their heirs, assigns, transferees, and other successors in interest, agree to not protest or oppose the formation of of such district as the city proposes for the maintenance of the Telegraph Canyon Flood Control Channel, and to not protest or oppose the inclusion of the Property within said district. 4.2. This agreement to not protest or oppose the inclusion of the Property in the district shall not be deemed a waiver of any constitutional rights, and shall not interfere with the right of any person to vote in a secret ballot election. 5. Recordinq. This Agreement, or an abstract hereof prepared by either or both parties, may be recorded at the option of either party. 6. Miscellaneous. 6.1. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the u.s. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party. Facsimile transmission shall constitute personal delivery. CITY OF CHULA VISTA 276 4th Avenue Chula Vista, CA 92010 Attn: Director of Public Works ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 4 ~# Developer Eastlake Development Company, a California General Partnership 900 Lane Avenue, suite 100 Chula Vista, CA 91914 A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. Facsimile transmission shall constitute personal delivery. 6.2. Captions. captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. 6.3. Entire Aareement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. This includes, but is not limited to the "Development Agreement by and between Developer Development Company, Developer, and City of Chula Vista, City". 6.4. Preparation of Aareement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. 6.5. Recitals: Exhibits. Any recitals set forth above are incorporated by reference into this Agreement. 6.6. Attornevs' Fees. In the event of any dispute arising out of this Agreement, the prevailing party in any action shall be entitled to reasonable attorneys' fees in addition to any other costs, damages, or remedies. (End of Page. Next Page is Signature Page.) ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement Page 5 /.;, t9 ~ 1.5' signature Page to PARCEL MAP IMPROVEMENT AGREEMENT EastLake Village Center South Regarding Condition Nos. 4, 7, and 8 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be effective as of the day and year first hereinabove set forth. Dated: , 1991 THE CITY OF CHULA VISTA By: Tim Nader, its Mayor Attest: Beverly Authele City Clerk Ap r ved i~ 1/ ruce M. Boogaa City Attorney Dated: ~ I~ , 1991 EastLake Development Company a California general partnership comprised of cor: rations By: Its: By: DAVID V. INC.. a California corporation. General Partner By, Vtt1~ Its: Wu . ~ ssiaelvc.wp May 14, 1992 Parcel Map Improvement Agreement . Page 6 1,,2/1- /~ STATE OF CALIFORNIA ) ) ) ss. COUNTY OF SAN DIEGO On rsonally appeared personally known to me (or roved to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their/ authorized capacity, 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 instrumen WITNESS my hand and official seal. @:"'SOFFlCIAl.SlAt . . " IlVANABRAZ..... ~ ,liOTMr PUBlIC,CA!. ell . . PP.:I:CIPAl. Off'r~OR~IA ....0... AI C SAN D/fCO COUN,'t Y ommlSSlOfl hwes r eb. 12. 1994 (SJ::OA.LoT Signature ~~~ ) ) COUNTY OF SAN DIEGO ) On ~;'ls'/1~1?o~e~~~erSOnally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name(s) are/is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their/ authorized capacity, 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 instrume STATE OF CALIFORNIA ss. OffiCIAL SEAl @":"h'SILVANABRAZELL . NOTARY PU81fC.CAlIfORNIA ! -6!t PRINCIPAl. OffiCE IN SAN OIEGO L'OUNTl ~ .~~ My Commisston hpiles Feb. 12, '99. - i WITNESS my hand and official seal. Signature ~ ilfl~~. (SEAL) 1~1/"17 1 1. Filing instructions to the Title Company should include insertion of info to complete this section. ~~~r RESOLUTION NO. 1~~38" RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY ENGINEER OR DIRECTOR OF PLANNING TO EXECUTE ALL PARCEL MAP AGREEMENTS ON BEHALF OF THE CITY COUNCIL WHEREAS, since the city Council has in the past delegated authority for approval of parcel maps to the Director of Planning and City Engineer and delegated authority for acceptance of grants of easement and dedications on parcel maps to the City Clerk, it is recommended that Council also delegate authority to execute future parcel map agreements relating to these standard conditions to the City Engineer. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby authorize the city Engineer or Director of Planning to execute all parcel map agreement on behalf of the city Council. John P. Lippitt, Director of Public Works oved a ~ ttorney Presented by C:\n\PM agreements l~lJ- / COUNCIL AGENDA STATEMENT Ito /3 Meeting Date 5/26/92 ITEM TITLE: Public Hearing: Assessment District No. 90-2 (Otay Valley Road) a} Resolution 1~~3' Approving agreements for execution in Assessment District No. 90-2 (Otay Valley Road) and authorizing the Mayor to sign said agreements b} Resolution 1"1/1:) Approving transfer of funds to Assessment District No. 90-2 (Otay Valley Road) c} Resolution I~~I// Ordering certain changes and modifications to the Engineer's Report in Assessment District No. 90-2 (Otay Valley Road) d} Resolution Ii-~I/"" Overruling and denying protests and making certain findings in Assessment District No. 90-2 (Otay Valley Road) e} Resolution I'-~'I.:r Confirming the assessment, ordering the improvements made, together with appurtenances, approving the Engineer's "Report", making CEQA findings, and adopting a Statement of Overriding Considerations and a Mitigation Monitoring Plan regarding Assessment District No. 90-2 (Otay Valley Road) L SUBMITTED BY: Director of Public Works Director of Community De elopment REVIEWED BY: City Manager,jGt ~ ~ (4/5ths Vote: Yes_No...L) On April 21, 1992, Council adopted the Resolution of Intention to construct and finance certain public improvements to Otay Valley Road, east of 1-805, pursuant to the Municipal Improvement Act of 1913 and set the publ ic hearing on the formation of Assessment District 'No. 90-2 (Otay Valley Road) for May 26, 1992 for the purpos~ of hearing public testimony. The associated resol uti ons make changes and modi fi cat ions to the Engi neer' s Report, overrul e protests, confirm the assessments, make CEQA findings and adopt a Statement of Overriding Considerations and a Mitigation Monitoring Plan, approve utility and underwriter agreements, and transfer funds. RECOMMENDATION: Adopt the resolutions. BOARDS/COMMISSIONS RECOMMENDATION: The Otay Valley Road Project Area Committee has reviewed and discussed progress on the road on a regular basis since early 1990. Previous actions have included review and recommendation on the median configuration plan and a recommendation for interim stop signs at 1-805 and Otay Valley Road. The Committee also hosted property owner meetings to di scuss the assessment di strict on July 11, 1991. The minutes from the July 11, 1991, January 13, 1992, February 24, 1992 and May 11, 1992 meetings (the last meetings including a discussion of the roadway) are attached as exhibits A, B, C, and C-O'(HIIII,r~ /lOT S~A6JNE6J 13-"/ ~ Page 2, Itl!ll /3 Meeting Date S/26/92 The Project Area Committee has taken no official action on this project. It has, however, generally supported the roadway project but questions the spread, the cost and the financial impact to local businesses. The Resource Conservation Commission reviewed the Draft ErR on October 23, 1989, and recommended that the Planning Commission find the Draft EIR adequate. The minutes are attached as exhibit C-l. The Planning Commission reviewed and conducted a publ ic hearing on the Draft EIR on November 8, 1989, and continued the public hearing to January 24, 1990. The Planning Commission reviewed the Final EIR and certified on September 2S, 1991 that the Final EIR had been prepared in compliance with the CEQA Guidelines and the environmental review procedures of the City of Chula Vista. Planning Commission minutes from November 8, 1989, January 24, 1990 and January 2S, 1991 are included as exhibits 0, E and E-l. DISCUSSION: The Redevelopment agency and staff have been working on improving Otay Valley Road between I -80S and Ni rvana for several years. In March of 1988, the Agency retained the fi rm of leedshi ll-Herkenhoff to prepare the pl ans for a six lane Major Street. In May IS, 1990, the Redevelopment Agency hired a team of consultants to form a construction type assessment district, if feasible, for the improvement of Otay Valley road east of I-80S. In July of 1991, the City approved Resolution 16274 approving preliminary proceedings for the Otay Vall ey Road Assessment Di stri ct and requesting the County of San Diego gi ve Consent and Jurisdiction to include a portion of the Otay Ranch Property currently used as a quarry. Consent was granted on May 17, 1992 by the County Board of Supervisors. On April 21, 1992, Council set May 26, 1992 as the date to conduct the public hearing. The Municipal Improvement Act of 1913 requires that a public hearing be conducted to hear public testimony prior to forming an assessment district to finance publ ic improvements through the sale of bonds. All owners of property within the proposed assessment district have been mailed a notice of the publ ic hearing and the amount of the proposed assessment to their land. After conducting the publ ic hearing and considering any testimony presented, the Council may choose to proceed with the formation of the district by adopt i ng the reso 1 ut i on. I f the owners of more than SO% of the land area within the proposed district protest the formation of the district, the Council may form the di stri ct by a 4/Sths vote, otherwi se a 3/Sths vote is adequate if there is less than a majority protest. Included in today's hearing is consideration of the 1931 Act Debt Limit Report (See Engineer's Report, page 27.) which addresses value to lien requirements. In all cases the assessment meet the 2:1 ratio in compliance with the Act. The proposed assessment district improvement of Otay Valley Road will be accomplished in two phases. Phase I consists of widening the existing two and three lanes to six lanes with a landscaped median (part of the way), curb, gutter and sidewalk on both sides, sidewalk trees, underground utilities, supplemental water main, and traffic signals from I-80S to Nirvana Avenue. Phase II consists of widening the existing two lanes to four lanes with a median barrier and graded shoulders, from Nirvana Avenue to the City/County /:J"~ P~ge 3, Itl!ll ):3 Meeting D~te 5/26/92 boundary. Because of the substantial amount of existing development on the north side in Phase I, and the steep slopes on the north side in Phase II, it is necessary to move the centerline of the street approximately 30 feet to the south of its existing location to accommodate the six lane improvements. Utilitv Underaroundina Aareements The undergrounding of the existing overhead utilities, from approximately 600 feet west of I-80S to Nirvana Avenue, is proposed to be partially funded by the City, through its allocation of SDG&E undergrounding funds (20A district funds), and partially by the assessment district. The SDG&E funds of about $320,000 cover the portion of undergrounding from approximately I-80S to Oleander. SDG&E funds cover this area because the City set up a "20A" District for this segment. A "20A" district allows the city to utilize their allocation of funds from SDG&E to underground utilities. The remainder of the undergrounding project is not within the "20A" District and will cost the assessment district approximately $642,526. This is referred to as a "20B" district whereby the property owners pay for the undergrounding costs. One of the agreements (Agreement 1) i nc 1 uded in th is agenda item is wi th SDG&E and pertains to the portion of the undergrounding project to be funded by the assessment district. However, the City is working on extending the "20A" district from Oleander to Nirvana which, if accomplished, will save the assessment district about $642,000 because the $642,000 would then come from the City's allocation of SDG&E "20A" funds. If the "20A" district is extended, the City would not expend $642,000 of assessment district funds on undergrounding which could then be used to call bonds, thereby reducing the annual assessment installment. If the "20A" district is not extended, it has no effect on the assessment district as proposed. Agreements on the "20A" District for the segment from Oleander to Nirvana would be presented to Council at a later date. The existing overhead telephone lines will be undergrounded with the electric lines in the district. There is an agreement (Agreement 1) pertaining to the ;[ 7 c/ telephone facilities included with this agenda item. The supplemental water main included in the project is to provide additional fire flow capacity in conformance with City requirements for industrial areas. The estimated construction cost of the water main is $126,795. One of the agreements (Agreement 3) i nc 1 uded in th is agenda item is wi th the Otay Water Di stri ct and pertai ns to the construct ion and acceptance of the water facil ities. Proiect Costs The total estimated project cost is as follows: CONSTRUCTION COST Phase I $6,857,138 2.934.121 $9,791,259 Phase II Total Construction Cost /:J~ :J Page 4, Itell 1.3 Meeting Date 5/26/92 INCIDENTAL EXPENSES Design Engineering Const. Project Mgmt. R/W Appraisal Legal Services (R/W) Animal Shelter Reloc. Otay Water District inspection City Adm. Cost Plan Check Cost Inspection & Matl. Testing Traffic Design Wetland Mitigation Cost A.D. Project Hgmt. Financial Consultant Assessment Engineering Printing, Advertising, Posting Bond Printing, Servicing, Reg. Bond Counsel SUBTOTAL INCIDENTALS TOTAL CONST. & INCID. COSTS LESS CITY CONTRIBUTION LESS IMPROVEMENT CREDITS TOTAL C & I ASSESSED TO DISTRICT BOND ISSUANCE COSTS $ 834,917 50,000 55,000 30,546 200,000 80,000 55,000 280,000 350,000 7,500 534,860 25,500 67,000 90,500 3,200 12,500 36.758 $ 2,713,281 $12,504,540 $(3,435,467) $ (163,099) $ 8,905,974 Capitalized Interest Bond Discount Bond Reserve Fund $ 147,456 312,187 1. 040.624 $ 1,500,267 $10,406,242 TOTAL BOND ISSUANCE COSTS TOTAL ASSESSED TO DISTRICT Council authorized a call for construction bids on March 3, 1992 and the bids have already been received for the Phase I portion. Construction could begin in July, if the assessment district is formed. It is anticipated that the Ci ty wi 11 award the contract on June 23rd for Phase I. It is necessary to award this contract during this fiscal year to obtain the SB300 funds of approximately $1.1 million. Otherwise, less SB 300 funds may be available in future fiscal years. During this cycle, the State is reimbursing the City approximately 30% of the construction cost and it is anticipated that future fiscal years will be closer to 10%. It is anticipated that the Phase II construction could begin in early 1993. It should be noted that during Phase II, Otay Valley Road will be widened to six lanes by the Otay Ranch development when that project begins developing in the vicinity. / :;J-'! Page 5, Itell /3 Meeting Date 5/26/92 Six Lane Construction Current traffic volumes on Otay Valley Road (Phase I) warrant the construction of four lanes at this time, however, the projected ultimate traffic volumes require a six lane facility, which is also consistent with the Circulation Element of the adopted General Plan. It is recollllllended that the six lane facility be constructed at this time for the following reasons: 1. If only four 1 anes are constructed now, the construction of the remaining two lanes would be very disruptive to the area at the time of their construction. The noise, dust, and inconvenience of traffic delays and impaired access for a significant construction period would be difficult to tolerate by property owners and businesses. 2. The cost is substantially lower to construct the full six lane facility at one time. Initially, with six lanes of improvements to construct, there is more space to accommodate and reroute the existing traffic than if only four lanes were to be built. In the future, the widening of four lanes to six lanes would have to be accomplished with very little working space and substantially higher traffic volumes. This would not only result in the circumstances described above, but would add greatly to the cost. 3. The right-of-way and grading for the 6-lane facil ity is needed to allow development on the south side and the only savings to construct 4 lanes would be for two lanes of pavement which is approximately $400,000. The land within the assessment district boundaries is that which receives the most direct and special benefit from the proposed improvements. Otay Valley Road is a regional facility and, as such, carries traffic which does not begin and or end within the proposed assessment district. In recognition of this fact, it is recommended that the City contribute the iYll cost of two of the six lanes in Phase I to the proposed assessment district. Assessment District Boundaries In meetings with property owners, it has been suggested that the boundaries be expanded to include some portion of Otay Mesa to the south. This is not recommended since the City of San Diego has allocated over $10 million in its Otay Mesa Public Facilities Financing Plan for the future construction of Otay Va 11 ey Rd ./Heri tage Rd. from Otay Mesa Road north to the Otay Ri ver. It has a1 so been suggested that the Otay Ranch land east of Otay Valley Road be included. This also is not recommended since the Otay Ranch project will be required to widen Phase II to six lanes, as noted previously, and to extend Otay Valley Road east to SR-125. The value of these improvements, which would be util ized by vehicles from this assessment district, more than offsets the benefits received from this project. 1.3-5' Page 6, Itell 13 Meeting Date 5/26/92 Additionally, areas beyond the assessment district boundaries such as Otay Ranch and Otay Mesa will be constructing facilities to service their developments. The cost of these facilities will be borne by those developers. Those within this assessment district will not share in those costs just as those developments are not participating in the cost of this road widening project. Methodoloov of Assessment Aoolication The Municipal Improvement Act of 1913 requires that the costs of the district be "spread" to the land within the district based on the benefits received from the improvements. Since it is major street improvements that are being constructed, a measure of the benefit to be received by the land within the district is vehicle trip generation per acre of land. Since all of the land within the district, except the County landfill and the Nelson-Sloan quarry, is zoned for industrial use, the vehicle trip generation per acre is the same throughout the di strict. In accordance with the SANDAG Guide of Vehi cul ar Traffic Generation Rates for the San Diego Region, a rate of 200 trips per acre was used as the basis for the cost spread. The County landfill and the Nelson-Sloan are unique in that the land area is not utilized for buildings, but as a resource whi ch is used. In both cases, actual traffic counts were utilized in determining their benefit. Therefore, the resulting proportionality of the assessments is, with two exceptions, the actual parcel area. The County-owned landfill parcel, because it is publicly owned land, as a public agency, cannot be assessed through the district, however, City staff will be negotiating with the County for their participation in the cost of the improvements. In the interim, it is recommended that the City contribute the anticipated County share of $365,000 to the district. Portions of many of the parcels in the district are impaired by wetland areas or open space. The area of these impairments have been subtracted from each parcel because these areas are, in essence, undevelopable and cannot generate traffic. In addition, at various locations along Otay Valley Road, property owners have constructed street improvements as a condition of development. While in most cases the improvements will have to be replaced to accommodate the new improvements, it would not be equitable to charge these property owners twice for improvements they installed in good faith. Therefore, the value of the existing improvements, whether they will be replaced or not, is being subtracted from the assessments of the parcel s for which they were constructed, and being spread to all land within the district. It should be noted that in order to be equitable to all land in the district, these credits are based on the bid prices received for identical work on the improvement of Otay Valley Road, and not the cost paid by the property owner at the time the improvements were constructed. A formal presentation on this will be presented'Tuesday night. /:J"'~ Page 7, Itell J :3 Meeting Date 5/26/92 The assessments to the land in the district are approximately $0.61 per sq. ft. or about $26,600 per acre of assessable area, before the app1 ication of improvement credits. If the district became a part of a larger assessment district, staff anticipates costs would increase, not decrease. In comparison, other areas in the eastern part of the City are paying assessments or fees of approximately $1.40 per sq. ft. or over $60,000 per acre for construction of similar major streets. The Rio Otay Industrial Park subdivi sion (Dar1 ing-De1 aware) is being assessed on the same basis as other land within the district. However, an environmental concern has not been resolved and no development is allowed at present time until there is an evaluation of the environmental concern. It is therefore proposed that bonds not be issued until such time as building permits can be issued. While the City would have the ability to issue and sell the bonds at any time in order to reimburse its cash advance, an agreement is currently being negotiated with the owner, Dar1 ing-Delaware, relative to the timing of the envi ronmenta1 concerns and the issuance and sale of the bonds. No buil ding permits will be issued for this subdivision until the City reaches ~n agreement with Darling-Delaware. If the assessment district is formed, the property owners will have 30 calendar days, beginning the day after the pub1 ic hearing, in which they may pay all, or any portion of their assessment in cash. Any portion of the assessment paid during this period is not subject to the bond issuance costs listed above, and thus an approximate 14.5% discount is applied. All property owners will be mailed a Notice of Assessment for their land explaining the amount assessed, and the amount to pay if they wish to discharge their assessment in full. After the 30 day cash payment period is over, 1915 Act bonds will be sold and issued in the amount of the total unpaid assessments. The cash payments and the bond proceeds will be utilized to pay the construction and incidental expenses. As in all areas where there is a substantial amount of undeveloped land, there is the possibility that some land, not currently judged to be developable, will be developed. Or, that land being assessed as industrial use as a part of these proceedings, will be developed, or redeveloped in a use which will generate more vehicle trips per acre than the 200 trips per acre util ized in this district. In order to insure equity to the assessment district, if it is formed, the establishment of a Fee Recovery District will be brought before the Council within 30 days of the formation of this assessment district. That Fee Recovery District will provide for the collection of a fee for each vehicle trip generated above the 200 trips per acre used in this district or for parcels that were not assessed. At the close of the public testimony portion of today's hearing, staff will report to the Council the amount of protests, both written and oral, measured by land area in the district. If the protests amount to less than a simple majority of the land area, the Council may form the district and levy the assessments by a simple majority vote. However, if the protest represents more than a simple majority of the land area, the district can only be formed by 4/5ths vote of the Council. J3.7 Page 8, Itell J.3 Meeting Date 5/26/92 Financina The financing of the proposed assessments is to be accomplished through the issuance of 1915 Act bonds. It is recommended that the sale of the bonds be negotiated with the firm of Stone & Youngberg, the largest underwriter of this type of bond in California. A negotiated sale as opposed to a public sale is being recommended because of the ever changing complexities involved, and it allows the City to negotiate with one bond bidder. Otherwise difficulties are encountered in communicating complexities with dozens of potential bond bidders in the required formal noticing procedures. The first step in this process is to enter into an agreement (Agreement 4) with an underwriter. The financial advisor, bond counsel, and the Director of Finance recommend a negotiated sale for this district. Final EIR and Associated Resolution At it's April 21, 1992 meeting, Council considered the Final Environmental Impact Report and Addendum thereto for the Otay Valley Road Widening Project, and certified its compliance with the CEQA law and guidelines (Resolution No. 16599). As stated in that resolution and in the Addendum to the FEIR, implementation of the project would occur through establishment of an assessment district which would provide the means to finance construction of the project. Council action on the CEQA Findings of Fact, Mitigation Monitoring Program, and Statement of Overriding Considerations was deferred until actual project approval, in this case, approval of the assessment district. In making Findings of Fact, the Council binds the City and any other responsible party to implement the mitigation measures therein, or, in other words, conditions the project approval with implementation of these measures. Adoption of the Mitigation Monitoring Program ensures that the City and other responsible parties comply with, and implement the feasible mitigation measures. The Statement of Overriding Considerations asserts that the public benefits of the roadway would outweigh any significant and/or cumulative impacts (all of which were deemed to be less than significant). Approval of these documents is required by CEQA when approving the proposed roadway project (assessment district). The final CEQA document to be filed upon project approval is the Notice of Determination. With that, the CEQA requirements for this project are fulfilled. Adoption of the resolutions listed above will generally accomplish the following: 1. The RESOLUTION APPROVING AGREEMENTS provides for the execution of agreements with Otay Water District (Agreement 3), San Diego Gas & Electric Co. (Agreement 1), and Pacific Bell (Agreement 2) relative to the installation of certain facilities by the City, and the subsequent acceptance of those facilities by the respective utility. The fourth agreement is an underwri t i ng agreement (Agreement 4) wi th the fi rm of Stone & Youngberg. I:I--r Page 9, Itllll 1'3 Meeting Date 5/26/92 2. The RESOLUTION APPROVING TRANSFER OF FUNDS authorizes the transfer of funds from Sewer Fund 222 to this project, 996-9960-STI23. The transfer is a loan to the district to be reimbursed by S8 300 funds upon completion of construction. 3. The RESOLUTION ORDERING CERTAIN CHANGES AND MODIFICATIONS TO THE ENGINEER'S REPORT approves any changes and modifications made to the Engineer's Report since its preliminary approval on April 21, 1992. The changes since the prel iminary approval consist of adjustments in the existing improvement credits, adjustments to the City contributions, and other minor modifications. 4. The RESOLUTION OVERRULING AND DENYING PROTESTS overrules and denies the protests of the owners of less than 1/2 the area to be assessed and makes certain affirmative findings with respect to the boundaries of the district, and the method and apportionment of the assessable costs. 5. The RESOLUTION CONFIRMING THE ASSESSMENT confirms the assessments to the land in the district, approves the final Engineer's Report, as amended, makes certain CEQA findings, and adopts the Statement of Overriding Considerations and Mitigation Monitoring Plan. Also, on April 21, 1992 when the Council adopted the Resolution of Intention, a question was raised as to the amount of noise reduction accomplished by the noise wall to be installed as a part of the project. Further investigation shows that traffic noise emanating from Otay Valley Road will be reduced by 8 to 10 decibels with the installation of the wall. However, noise originating on 1-805 will not be decreased by the wall. FISCAL IMPACT: The estimated total cost of the Otay Valley Road project (Phases I & II) is $13,841,700. It is proposed that the City and RDA contribute $3,435,467 of this total, leaving $10,406,242 to be assessed to the district. The contribution will come from the following sources: RDA 996 9960 ST-123 RDA TF 220 TSF TF 220 SEWER FUND 222 SDG&E 20A $1,765,167(1) 89,300 100,000 1,161,000(2) 320.000<3> $3,435,467 <,> s~ funds ..y be recovered if the County participates. (2) Thi. is . loan to the district to be reimbursed by 51 300 funds upon c~letion of construction. (3) esti.ated cost of SOG&E work equltl eatf_ted allocation of 20A funds avaiLable for project from SOG&E. /3-1 Page 10, Itell J :J Meeting Date 5/26/92 In addition to the above contributions, the City will loan $651,000 from fund 996-9960-STl23 (RDA) to cover the Series B bonds. The Series B bonds are to cover the Rio Otay Subdivision. These bonds will be issued when the site is cleared of the environmental concerns. This money will be recovered if these bonds are issued. DDS/AY-081 WPC 6003E 13'/() !,j-IS v ._~ !:') \ File No. PUBLIC HEARING CHECK LIST CITY COUNCIL PUBLIC HEARING D~ ~(.., '. l~q2 SUBJECT IlhL \~ - ~W '1D-1.- ~ if ~ \L..-.JJ ') LOCATION SENT TO STAR NEWS FOR PUBLICATION.-~; BY HAND_; BY MAIL PUBLICATION DATE 4/:lQ/Qz... <0\- sh./cr2.- I I I f MAILED NOTICES TO PROPERTY OWNERS NO. MAILED PER GC 54992 Legislative Staff, Construction Industry Fed, 6336 Greenwich Dr Suite F. San Diego, 92122 Lf /,~~ (Cf2- LOGGED IN AGENDA BOOK COPlES TO: Administration (4) 1/ Planning 1/ Originating Department Engineering v Others City Clerk's Office (2) ./ POST ON BULLETIN BOARDS 4/2- ,/qf., I . ".:., SPECIAL INSTRUCTIONS: -58- \~3-1\ . \ .0,. NOTICE 01" IMPROVEMENT RESOLUTION OF INTENTION AND REPORT NOTICE IS HEREBY GIVEN that the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did, on the 21st day of April, 1992, adopt its Resolution of Intention, receive and file a "Report" of the Engineer, and authorize a time and place for a public hearing to form a special assessment district known and designated as ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAP) (hereinafter referred to as the "Assessment District"). The combined "Report", as authorized by Streets and Highways Code section 2961, has been prepared and approved, consisting of the plans, specifications, maps, descrip- tions and estimate of the cost, and diagram and assessment, and property valuations, and for all particulars as to these proceedings and any individual assessments, reference is made to said combined "Report" as preliminarily approved, as well as to the previously mentioned Resolution of Intention. DESCRIPTION OF IMPROVEMENTS The proposed works of improvement to be financed under these proceedings for this Assessment District are described as street improvements, including demolition, grading, paving, curb, gutter, sidewalk, street lighting, traffic signals, storm drains, landscaping, water main, utility work and traffic striping, together with appurtenances and appurtenant work, including acquisition of rights-of-way and easements, if necessary, to serve and benefit propertie8 located within the boundaries of the Assessment District. BOUNDARIES OF ASSESSMENT DISTRICT All properties that benefit from the works of improvement shall be assessed to pay a proportionate share of the costs and expenses of the improvements, together with acquisition expenses. A map of the Assessment District identified as "PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD)" has been approved by the legislative body and for all particulars as to the boundaries, reference is made to said map on file with the transcript of these proceedings. COST OF IMPROVEMENTS The the cost of the facilities to be assessed to the property within the boundaries of the Assessment District is estimated to be: $10,406,242.00 The above figure includes all costs of the improvement, together with incidentals, contingencies and financing costs. \"'S- )).- PROCEEDINGS AND BONDS . . Said proceedings for ~his Assessment District shall be had and taken pursuant to the "Municipal Improvement Act of 1913" (Division 12 of the Streets and Highways Code of the State of California). Bonds shall be issued to represent unpaid assessments in accordance with the "Improvement Bond Act of 1915", (Division 10 of said Code). Following the confirmation of the assessments, a period of thirty (30) days will be allowed to make payment of assessments in cash, and the unpaid balance will then become payable in annual installments, with bonds issued to represent the unpaid balance. The actual interest rate for the bonds shall be determined upon the sale of said bonds. PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT TUESDAY, THE 26TH DAY OF HAY, 1992, AT THE HOUR OF 6:00 O'CLOCK P.M. OF SAID DAY, IN THE REGULAR MEETING PLACE OF THIS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, IS THE TIME AND PLACE FIXED TO CONSIDER AND FINALLY DETERMINE WHETHER THE PUBLIC INTEREST AND CONVENIENCE REQUIRE THE IMPROVE- MENTS; AND TO CONSIDER AND DETERMINE WHETHER THE OWNERS OF A HAJORITY OF THE AREA OF THE PROPERTY IN THE PROPOSED ASSESSMENT DISTRICT HAVE PROTESTED AGAINST SAID IMPROVE- MENTS, OR ANY PORTION THEREOF; AND TO CONSIDER AND FINALLY ACT ON THE ENGINEER'S "REPORT"; AND TO HEAR ALL PROTESTS RELATING TO SAID PROPOSED PROCEEDINGS, OR THE GRADES AT WHICH THE WORK SHALL BE DONE, OR THE EXTENT OF THE ASSESSMENT DISTRICT, OR AS TO HAPS AND DESCRIPTIONS, OR THE ESTlHATE OF THE COST AND EXPENSES THEREOF, OR THE PROPOSED DIAGRAM OR ASSESSMENT; AND ANY AND ALL PERSONS INTERESTED HAY FILE A WRITTEN PROTEST AT OR BEFORE THE TIME SET FOR HEARING REFERRED TO HEREIN. PROCEEDINGS INQUIRIES For all information relating to these proceedings, the hearing procedure, and any and all matters as set forth and contained in any documents, Resolutions or Certifi- cates, attention is directed to the person designated below: JOHN LIPPITT, PUBLIC WORKS DIRECTOR CITY OF CHULA VISTA P. O. BOX 1087 CHULA VISTA, CA 92012 TELEPHONE: (619) 691-5021 DATED: , 1992. CITY CLERK CITY OF CHULA VISTA STATE OF CALIFORNIA \~-\:=, " -,' . . . PROCEEDINGS AND BONDS ,.... Said proceedings for ~his Assessment District shall be had and taken pursuant to the "Municipal Improvement Act of 1913" (Division 12 of the streets and Highways Code of the State of california). Bonds shall be issued to represent unpaid assessments in accordance with the "Improvement Bond Act of' 1915", (Division 10 of said Code). Following the confirmation of the assessments, a period of thirty (30) daye will be allowed to make payment of assessments in cash, and the unpaid balance will then become payable in annual inetallments, with bonds issued to represent the unpaid balance. The actual interest rate for the bonds shall be determined upon the sale of said bonds. PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT TUESDAY, THS 26TH DAY OF MAY, 1992, AT THE HOUIl OF 6.00 O'CLOCK P.M. OF SAID DAY, IN THE RSGOLAR MEETING PLACE OF THIS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, IS THE TIME AND PLACE FIXED TO CONSIDSR AND FINALLY DETEIlMINE WHETHER THE PUBLIC IN'l'EREST AND CONVBNIENCS !\EQUlRE THS IMPROVE- MENTS, AND TO CONSIDER AND DETSIlMINB WHETHER THE OWNERS OF A MAJORITY OF THE ARSA OF THE PROPERTY IN THB PROPOSED ASSBSSMENT DISTRICT HAVE PROTESTED AGAINST SAID IMPROVE- MENTS, OR ANY PORTION THERSOFI AND TO CONSIDER AND FINALLY ACT ON THE ENGINSER'S "REPORT", AND TO HEAR ALL PROTESTS !\ELATING TO SAID PROPOSED PROCEEDINGS, OR THE GRADES AT WHICH THE WORK SHALL BE DONE, OR. THE EXTENT OF THE ASSESSMENT DISTRICT, OR AS TO MAPS AND DESCRIPTIONS, OR THE ESTlMATS OF THE COST AND EXPENSES THERBOF, OR THE PROPOSED DIAGRAM OR ASSESSMENT, AND ANY AND ALL PERSONS INTE!\ESTED MAY FILE A WRITTEN PROTEST AT OR BEFORS THE TIME SET POR HEARING !\EFBRl\ED TO HE!\EIN. PROCEEDINGS INQUIRIES For all information relating to these proceedings, the hearing procedure, and any and all matters as set forth and contained in any do~ents, Resolutions Or Certifi- cates, attention is directed to the person designated below. JOHN LIPPITT, PUBLIC WORKS DIRECTOR CITY OF CHOLA VISTA P. O. BOX 1087 CHULA VISTA, CA 92012 TELEPHONE. (619) 691-5021 DATED. , 1992. CITY CLERK CITY OF CHULA VISTA STATS OF CALIFORNIA \ ~- ) If ",~!.~"~._~--'--.I "7.,,-, .-.. ~ ..r.iiW2 . THE FOLLOWiNG" TELE. PHONE NUMBERS ON THE NClTICEOF'IIPIlOVEIIENT MINIUM. TOGETHER WITH DAY SEFORE THE SALE: I r....T PORTION OF THE AL. (714) .....83.7 OR (213) RESOLIITlON OF 'NmmON AND REPORT LEY ADJOINING Lor 1 ON 627...... NOTICE IS HERSBY GIVEN 1hat the CITY COUNCIL of Ih8 THE SOUTH AS A PORTION 45978 CITY OF CHUL~ VtsTA, CALIFORNIA, did. on Ihe 211t day of OF SAID AliiY WAS 'VA. IS 31550 4I22,29.5/6J'92 April. 1992, adfo: Its RuoIution of 1n18n1lon, recalv. and file a CrATED BY THE CITY CClUN- N011CEOF . "Report"' of the i!nglnHt. and authorlz. allm. and place for a ~u. CL OF THE CITY OF IMPEfI. TRUSTEE'8 SALE bile hearlng k) form . fH)8daI ......ment ~ known and d. IAl BEACH IN RESOLUnON "" slQnated as ASSESSMENT DISTRICT NO. 2 r:JrAYVALLEY NO. 2587. ALL BEING IN THE Loan No.30252IMORAN ROAD)(herelnaft81referredleuIheIOAaaes entOlstrlc:rj. CITY OF IMPERIAL BEACH, .T.s.No.F123534 The combined "RePOrt", u aulhof'lZed by Streetl and High- COUNTY OF SAN DiEGO. a~=-F17 ways Code SeCllon2881. hut:MMtnpreparedandapproved,co~ STATE OF CALFORNIA, AC,.. --- slstlng of Ihe p18D1. apedflcalionl, maps, clelCrlptfOns and esll. CORDING TO THE MAP COAST ESCROW COM- mate of the coat, and diagram and ......ment, and propertY v. THEREOF NO. 8237, FILED PANY.. dUly appointed luatlons, and for aD partICuI.... U Ie Ihe_ oroceedlngs and any IN THE OFFICE OF THE TrualH...... the follOWIng c;te. Individual, ......menta. reference is m8de Ie Mlcf combInect COUNTY RECORDER OF acr\bed deed of trult WILL ~~~='I~:'~tln-=~~'" well.. to Ihe previously ~~~~~,~~ 'aUy:J ~':.'e'irA~~ DESCRIP110N OF IIIPROVEMENTS EXCEPTING THEREFROM FOR CASH (In the forms which The proposed works 01 Improvement to be ftnanc:ed under UNITS 100-132, INClUSIVE. are Iaw:IuI tander In the United these proceedings for IhIs AUHlment D!ltrIct are described M AND 200 TO 210, 1NCLUSIVEit S18.18$) andIOf the euhler'. street lmprovemen~,lncludlna <*nollllon, anldlng, paving, Qlfb. AS SET FORTH ON THAI certified Of other dlec::ks s~ gutter, sidewalk. atr48t IIghtTng, traffic Ifgnals. atorm drainl, CERTAIN CONDOMINIUM ned In C1v1 Code Sedlon randscapl"" water main, utlUty Work and tralflc .trIpIn;. together PLAN RECORDED JANUARY 292"h (payable in full at the with appurtenances..nd appurtenant work, Indudlng acqUIsition 8, 1878 AS FilE NO. lime of Hie) all right, tme and of rights.Of.way and euemBntl,1f neoeaaary, to .erve and beneftt 78-007847 OF OFFICIAL RE. In1ereat conveyed to and now properlles located within the boundarlea of the AaMlament 01.. CORDS AND AS DEFtNED IN ~ by tI und8C' HId 0e8d of trict. THAT CERTAIN DECLARA. IrUaE In the ptOpfrty twefnafter BOUNDARIES OF ASSESSIIENT DISTRICT TlON OF COVENANTS, deecrlbed. All properlleslhatbenefttfromtheworkloflmprovemenUhall CONDITIONS AND RE- TRUSTOR: TERESA be assessed 10 pay a proportion.. share of the coati and e~ STRICTIONS ESTABLISHING MORAN ses of the Improvements. together with acquis!llon exPWI&88. A A PLAN FOR CONDOMINIUM BENEFICIARY: BEVERLY map of the Assessment Disl1lct ldenllfl8d as "PROPOSED OWNERSHIP (DEClARA. HillS SECURITIES C()M. BOUNDARIES OF ASSESSMENT DISTRICT NO. 90-2 (OTAY TION) RECOROEOJANUARY PAHY NCOfded Janu8l)' 31, VAllEY ROAD)" hU been approved by the legislative body and 8. 1978. AS FilE NO. 1 881 a sin a t r, No. for all ~culars as Ie the boundaries. r.f8l'enc:e1s made Ig said 71-0078048 OF OFFICIAL RE. 1991-00048302 In Book .. map on fllewllh 1he uanscript of these oroceedlng.. CORDS. Flnllollho- - ofofOlllc:lalIho n_Rooonj fila COST OF IMPROvEMENTS PARCEl2: ieOfllc:e r--..v 81'of The cost of the fadlUIM Ie be....N8d 10 the property within UNIT 110 AS SET FORTH San 01. County: laid deed the boundaries of the Auaaament OIItric1ls..lImated Ie b1e: ON THAT CERTAIN CON- oftruatdeacrtbes1he following: . $10,~,242.00 DOMINIUM PLAN AND LOT 20 LATTA'S SUBDIV'- The above figure Includes all COItI 01 the 1mproYement, DEFINED IN THAT CERTAIN ISION OF lOT 28; AND THE IogetherwlthlnclOental.,conllngendeaandft~co811. "DEClARATION" RE. SOUTHERLY 30 FEET OF . PROCEEDINGS AND BONOS FERRED TO IN PARCEL 1 lr:Jr 28. QUARTER SECTtoN SaId proceedings for this AsMaSment Dlsl1ict shall be had and ABOVE. C'3'ON7. RA,NCN HOTHEDECITYLA HAo' take pursuant 10 the "Munldpal ~ement Act of 1813" (0Iv. Thestr....sdr8uandolher' F Islon 12 of the SUNts and Highways Code of Ihe $ta18 of Califor- c:ommon dealgnalton, If any, of CHULA VISTA, COUNTY OF nla). Bonds shall be'lssued 10 represent unpaid ....samants In Ihe _ property duafbed .SAN DIEGO~TE OF CA- accordance wlth the "Improvement Bond ACt of 1915," (Division abova" pu~ 10 be: 1820 lIFORNIAJ.": RDING TO 1001 said Code).IFOIIOwfng the confirmation of the ......ments, Seacoaat DrMt IS, knpertaI MAP THE~OF NO. 1238.&...~ a period of thirty (30) days will be allowed 10 make payment of u. Beach, Callfomla. fiLE IN THE OFFtcE OF I ME $&ssments In cash. and the unpaid balance wilr then become The undersigned T,..... COUNTY RECORDER OF payable In annuallnstallments, with bondllasued to represent the dlsclalms any lrabfUty tor. any SAID SAN DIEGO COUNTY unpaid balance. T1l8actuallnlerest rate for tho bonda shall be de- Incorractneu of !hi street ad- FILED FEBRUARY 1",1810. tennined upon Ih8 sale of said bonds. dreu and other common de- YOU ARE IN DEFAULT PUBUCHEARING ~ "~ -"ho In UNDER A DEED OF TRUST NOTICE IS HEREBY GIVEN THAT TUESOAY..t]!lE 26TH on, ,s re. DATED 1118181. UNLESS DAY OF MAY, 1992 AT THE HOUR OF 6:OO0'ClVVf\ P.M. OF d l1li. I be mIlde. but YOU TAKE ACTION TO . SAID DAY. IN THE REGULAR MEETING PLACE OF THIS LEG. :'===,c:r~~~ PROTECT YOUR PROP- ISLATIVE BODY. BEING THE COUNCIL CHAMBERS, CITY lie -,,---1011 .r~-~-- EpRTVU81,l"SAMALEY.SEIF ySOLDOU NAETEOA HALL, IS THE TIME AND PLACE FIXED TO CONSIDER AND ,..--, --.--.. IV FINALLY DETERMINE. WHETHER THE PUBLIC INTEREST :: =~ ~"'th. ~~ AN EXPLANATION OF THE AND CONVENIENCE REQUIRE THE lMPROVEMENTS; AND and 01 1he trus.. craat8d by NATURE OF THE PROCEE(). TO CONSIDER AND DETERMINE WHETHER THE OWNERS MId AuaulNM'lt lian. to paliNG AGAINST YOU, YOU OF A MAJORITY OF THE AREA OF THE PROPERTY IN THE lheremal?prtnclpalaumaor SHOULD CONTACT A LAW- PROPOSED ASSESSMENT DISTRICT HAVE PROTESTED $7,7045.88 ua COllI and.:t- YER. AGAINST SAID IMPROVEMENTS, OR ANY PORTION VIIf'ICM of 1,889.28 with Inter. 229 "0- STREET, CHUlA THEAEOF; AND TO CONSIDER AND FINAllY ACT ON THE alt oflhafl IdaIe r-.....- VISTA.CA92010 ENGINEER'S "REPORT"; AND TO HEAR ALL PROTESTS RE. catI" ,. 0 ,.......... "'(If a .lreel addr... Of com- lATING TO SAID PROPOSED PROCEEDINGS.' OR THE -r:. ~ under laid man dealgnaUon of property I. GRADES AT WHICH THE WORK SHAll BE DONE OR THE "......ment u.n .,.,.1Dfora ahown~, no warranty la EXTENT OF THE ASSESSMENT OISTRIC1.9R AS to MAPS .xecutecI MCl delivered to 1M given uto Ita com~f8nHI or AND DESCRIPTIONS, OR THE ESTIMATE ut" THE COST Al4D underllaned a written DecIara- correctness)." Thei benefldary EXPENSES THEREOF, OR THE PROPOSED DIAGRAM OR lonofde1aultandDemllndtor under laid Deed of Truat, ~ ASSESSMENT; AND ANY AND All PERSONS INTERESTED Sale and wrtUen Notice of reuonofabr88Chorclefauhlh MAY FILE A WRITTEN PROTEST AT OR BEFORE THE TIME 08raUtt': Elac1Ion to Sell. the obllaatlon. aecured SETFORHEAAINGREFERREDTOHEREIN. The underllgned caused laid thereby,l ~elOJore 8X8O.I18d PROCf.EOlNGS INQUIRIES Nob of Delauh and Elacdon and d8llVered to the underslg- For all k'lformatlon relating to these proceedings, the hearing ., Sell 10 be recorded WI Ihe ned a written Dedarallon of ~ procedure, and all)' and all maaera aa ..t forth ar)d contained In ty Wh8r the ... tault and Demand for Sale, and any dOOJments, R8ao1ullon8 or Certlflcat... attenUon is directed ~ a r property wrIaen nOllce of defauh and 01 to the person deslw;na18d bekM': . Da _pII" election to causa 1he Lnders~ O JOHNL PITT.PUBLICWORKSO'RECTOR .:'" 2O.l.'!.8!2 nod to HI' --," -~ . . (:' CITY OF CHULA VISTA Son """'" For__or. MIlary oald ';DgOti...'" IInd . /~ P.O. BOX 1087 ~.,!~~...lnc. ther..fter Ihe underalgned .. CHULAVISTA,CA92012 u_ u_ . caused aaId notice of dliiifault TELEPHONE'. (619)66'.5021 3737 CamIno 0.. RIo So.. ...- of ~-OII"" -~~ C . .' CITY CLERK 0207 j';;;' 21.1.., .. .;:tt.');. ._ 0 ' :" CITY OFCHULA VISTA San.DIego,Callforn!a92108 1891.0301832 In Book _... ....3 STATE OF CALIFORNIA (819) 284-9221 FI'WPIIge 378 of orndal Reo- , CV01040., __ 4J2SW2 _ BySalfyR.Clark, cordalrith.omceor!hlrecor- ,-.l-x_----~~--- _ ----~ o \: ~\'-.... ~ V ~~. u ....I >oJ ...J ooJ :; .;J~ J~ c;j.'....r.:i,..j"'[".l:....J, J ...i . . . 01 ( ((,..~'\.1.. ""'j.~)...):.:)J..J.(,!..)..)..j...i_'.J.. ~.~~U~C~ooJ~~~...JW~0U0....J~....J....J....J....J....J....J.. ~.._~_~..:,;....___.. ,._ ~~:...:, ~"':'::~_ ..-. ..._,,-...._.,__"_..~---..-.w,.~..=,,__,_._'"......__ .". . - a - (" . C.:f .. co.:~ ,Ol--L (!I! 0 ~.:t 0"':1 c .~::l :. 0 ~':1.:: \ r . \3- (5 .....-....... DIIauI....E.1IcI1 IlOfdlldlnIMCOl --- Said_ will II ..- or.... --' __10 _If_.......( 0IId of TRIIt, wit -- .... oIlI6d Of chargellnd..... Indlflhllrulltan Trull Slid.. wll, tOl2, II 1~.30 P ENTMNCE TO 11l\ 704 THIRD STR(ET AI" tilIlI oIl~ oflflilllOUcl, .. ......-" and..,......'" 1nlII1nd__~ Illlhdwanllllll$t. -....... J.UEI P. -.tl' 1 ItKJ 11. ,"*^ AtIInubt.v, f4,4J2Z4-'231t en. 4-1$.22& 2t tlO2 NC 1272.. N..... of T UncIar Notloa I """ CIoI UEN NO.1 HEFERE 871-H' T.s. NO. YOU ARE UNDER A Nr:: SESSMENT A lEN DATED 1981. lftIILES ACTION TO Pi PROPERT!,. SOLD AT t'U YOU NEED TtON OF m THE PROCEE yO!:!. YOU , TAv' ALAWV Hob" ....: SlIIdorf. Burd ....E-Ili of ProfHslor.~ Ih. dulY ani" pursuant 10 tr. l818ment and executed by E m""IIY_~ 8.1991 and f!- 14,1991 uln of Offtdal Re-:~ 01 Ihe~; Diogo . _uant.. . fault and EI~ Claim of Uen r- 17,1992 u In of said 0I'fId- .... 011 ..... p.m. 01 1ho ' eo_ eoo';: BroadWay. e 92101 .fDUb~ highest blC:fder bli at the lIme ~oflhet right, litle, a.-: veyed Ie and unCSar MId Ual sltualed m ~ State and de!<:: A Cclncfcn'l. of: PARCEL 1: An undM-~: donat Intereat c::ommon In._ = DONALD R. WORLEY. WILLIAM .J. SCHWARTZ, .JR. TIMOTHY K. GARF'IELD ROBERT C. RICE CHARLES V. BERWANGER .JENNIF'ER TREESE WILSON .JAMES P. O'NEIL PATRICIA KENT .JOSEPH A. SOLOMON SUSAN BADE HULL WORL.EY, SCHWARTZ, GARFIEL.D & RICE A PARTNERSHIP INCLUOING A PROF'ESSIONAL CORPORATION ATTORNEYS AT LAW 1160 FIRST INTERSTATE PLAZA 401 "B" STREET SAN DIEGO, CALIFORNIA 92101-4245 TELEPHONE: (619) 239-0815 TELEF'AX: (SI9} 239-eS!i4 F'ILE NO. 'A PROFESSIONAL CORPORATION May 26, 1992 HAND DELIVERED Honorable Mayor and City Council city of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 Re: otay Valley Road Assessment District No. 90-2 May 26, 1992 Hearing Honorable Mayor & city council Members: As you are aware, we represent Charles Siroonian and Charles pratty who ,are owners of property in the city of Chula vista. Their property 1S included within the proposed otay Valley Road Assessment District No. 90-2, and they have filed objections with the city opposing these assessment proceedings, which are being conducted pursuant to the Municipal Improvement Act of 1913 (1913 Act) (~ 10000 et seq., streets & Highways Code). By its actions of April 21, 1992, the city Council, over our objections, certified the EIR for this road improvement project, and it initiated these assessment proceedings, preliminarily approved the engineer's report and set the matter for hearing on May 26, 1992. We continue our opposition to the assessment proceedings for the reasons set out below. We question the legality of imposing an assessment district under the 1913 Act for the purpose of enhancing traffic circulation. These improvements should more properly be funded by the City through mechanisms other than an assessment proceeding, because the improvements are calculated to provide a general benefit to the city and the general public, rather than a special benefit to the properties proposed for assessment. Even if we accept for purposes of argument that a 1913 Act proceeding would be legally acceptable for a portion of these types of improvements on the theory that some special benefit would be realized, we remain seriously concerned about the City I S non- compliance with the 1913 Act mandate. Specifically, the concern is that the road improvements proposed to be funded by this assessment /3 ~/, , ~/l! l Hon. Mayor and City Council city of Chula vista May 26, 1992 Page 2 proceeding far exceed the level of improvements needed to provide my clients with any special traffic circulation benef its. Any colorable compliance with the 1913 Act authority would require the city either to reduce significantly the scope of the improvements to equate with any benefit being bestowed upon the area assessed, or, in the alternative, to expand the area of benefit to include developing and future growth areas which will add to the circulation impacts and benefit from the improvements. The scope of the improvements and the studies prepared by the City certainly reflect the anticipation by the city that those developing and future growth areas will benefit substantially from the assessments to be imposed on the limited area of benefit now described. LEVEL OF PROTEST Before discussing the legal points in more detail, we must urge the City Council to consider seriously the level of protest by property owners in the alleged area of benefit. These protests are filed under the authority of sections 10301 through 10312 of the Streets and Highways Code. The intensity of concern evidenced by the level of protest must give the City Council reason for pause and reason for investigation of why so many owners are protesting these proceedings from which they are supposed to receive a benefit. It must be apparent to all that the underlying reason for this level of protest is the property owners' inherent sense that the proposal is unfair to them because it would assess them for a level of improvement that far exceeds any special benefit to them. It is clear that the proposal is geared to position the city to accommodate the developing and future growth areas to the east, which at this point are not included within the areas to be assessed. We urge your Council to heed the concerns raised by the strong protest of property owners and find that this unfair imposition must not be visited upon them when the benefit is city- and even region-wide. 1913 ACT AUTHORITY The 1913 Act authorizes the imposition of special assessments on property to pay for public improvements and it conditions that authority on the rule that the levy on each property may only be in proportion to the benefits received by each property. The California supreme Court in citv of Baldwin Park v. Stoskus (1972) /3-17 Hon. Mayor and city council city of Chula vista May 26, 1992 Page 3 8 Cal.3d 563, 105 cal.Rptr. 325, a case involving an assessment proceeding for construction of a public street and storm drain, explained the assessment district authority as follows: II . . . [T]he justification for the imposition of a special assessment is that the property to be assessed will receive a special benefit over and above that received by the general public. [Citations omitted.] Of course, the amount of each individual assessment is not necessarily measured by the precise amount of 'benefit' flowing to the property owner affected. The assessment is usually based upon the cost of the improvement, spread among the benefited property owners upon some equitable, nondiscriminatory basis. [citations omitted.] The absence of an exact relationship between the assessment levied and the benefit received will not, however, invalidate the assessment, at least in the absence of fraud, mistake or gross injustice. [Citations omitted.] II (8 Cal.3d at 568-569 [105 Cal.Rptr. 328].) The rule was further explained in Harrison v. Board of Supervisors (1975) 44 cal.App.3d 852, 118 Cal.Rptr. 828, a case involving a storm sewer special assessment and a case which has pertinent parallels of proposed assessment and legal reasoning to those in this situation. There the court stated: lilt is also clear that only a 'special benefit' to the property assessed will justify an assessment, not merely 'general benefit' inuring to the public as a whole. [Citations omitted.] When the special benefit exists, the formula on which the assessments are made must be based on the benefit received. [Citation omi tted. ] liThe trial court based its holding that the assessments were void on its conclusion that there was no substantial evidence of a special benefit to the protesting property owners and, further, that the formula upon which the assessments were based was an invalid method as a matter of law. The findings are related in that the validity of the formula will of necessity depend upon just what the special benefit is. To be specific, plaintiffs argue that when the public improvement to be built is a drainage project, uphill property may not be assessed at allor, at least, at a lower rate than the lower land. The several cases cited in support of this argument, however, all involve cases where the benefit was the prevention of flooding on the assessed land. 13-/~ Hon. Mayor and city council city of Chula vista May 26, 1992 Page 4 (See, e.g., Honegger v. Reclamation Dist. No. 1619, supra, 190 Cal.App.2d 684, 692, 12 Cal.Rptr. 76; Myles Salt Co. v. Iberia Drainage Dist. (1915) 239 U.S. 478, 482-483, 36 S.ct. 204, 60 L.Ed. 392.) When this is the special benefit, it seems obvious that higher land might not be flooded at allor, at least, to a lesser degree than low land. However, if the water from all the properties drained into public property, such as a street, and the pooled water caused odors, mosquitos or a health problem of some nature, all property owners might well be benefited equally regardless of the elevation of their land. "In analyzing the propriety of the court I s decision, it is necessary first to identify the benefit which the public improvement will render; next, to determine if the property owners will receive a benefit different from that of the general public; and, finally, to ascertain if the formula on which the assessments are made is based on the benefit received. "The benefit to be derived from the drainage system in the case at hand is the prevention of street flooding which occurs during the rainy season in certain spots of the area. There was no testimony of floodings on the private properties themselves and much testimony from people who claimed there was no excess water problem at all in their immediate vicinity even in the streets. "The theory on which the benefit was presented at the administrative hearings was that the general area would benefit by relief of the traffic problems and that those who contribute to the problem should contribute to the solution. It is concluded in agreement with the trial court that this is not a showing of a special benefit to the assessed property. The facilitation of traffic is of general benefit to the community and, thus, if repair and maintenance expenses alone are involved, these are not charged to abutting property owners. [citation omitted.] The fact that the traffic problems are seen as caused, not by the rain, but by the property from which the rainwaters drain, is not a basis for levying a special assessment according to the special benefit rule. It is possible, of course, that property abutting a street with a flooding problem would receive a special benefit from draining, for example, in facilitation of ingress and egress from the property or parking. Appellants point to no evidence of such special /3-/1 Hon. Mayor and city council City of Chula vista May 26, 1992 Page 5 benefits, and if they exist, they would hardly warrant assessment of all properties in the area regardless of whether they were benefited. "'It is possible that it will suffice if, from the nature of the work, the property can be presumed to have received an especial benefit.' [Citation omitted.] It is this type of presumption upon which respondents relied in assuming that the property values of all land would rise because of the drainage of the area. This assumes two things--first, the property values will go up and, second, that increase in property values is the type of benefit which alone will warrant special assessments. If increase in property value alone would amount to a 'special benefit,' then payment of ordinary road maintenance and repair could be upheld on that basis, reasoning that increase in value can be assumed for property which abuts a well-maintained road. This is too tenuous a connection, particularly in the absence of any cost-benefit analysis or evidence. Even more tenuous is the assumption that all property will increase in value regardless of its location in the assessment district. For example, the question arises whether property on high ground several blocks from any streets which flood in the rainy season will enjoy an increase in market value because the distant street was drained. Obviously, a point will be reached where no increase may be assumed. Defendants, therefore, could not prevail on an increase of market value theory with no evidence upon which the connection between benefit and assessment can be posited. The trial court was correct in holding that there was no substantial evidence of a special benefit. "As this court has concluded that there was no special benef it shown to plaintiffs' property, it is unnecessary to consider whether the trial court was also correct in its conclusion that the City used an invalid method of spreading the assessment." FACTS The assessment proceeding here concerns the improvement of otay Valley Road to a width of six travel lanes with median, curbs, sidewalks, etc., all as described in the project documents and the Preliminary Engineer's Report. From the beginning, the project has been identified as a regional facility, planned and designed in accordance with the right of way requirement designated in the 13'-'*0 Hon. Mayor and City Council City of Chula vista May 26, 1992 Page 6 City's General Plan, for ultimate build-out capacity, as evidenced by the following documentation: 1. otay valley Road Financing and Feasibility Plan, July 25, 1991: section 1.1 identif ies the purpose of the proj ect is to "provide a better level of service to current development, ensure adequate capacity for the projected future development and provide an important link between the City of Chula vista and the otay Mesa and Tijuana Metropolitan areas." 2. Final Environmental Impact Report, otay Valley Road widening Project Chula vista, dated August 1991: Comment 3, page 6, paragraph 5; comments by Herman Basmaciyan of Basmaciyan-Darnell, Inc., Traffic Engineers: " . the traffic considerations for otay Valley Road are based on the City's General Plan Scenario IV traffic estimates and the roadway, as proposed, is commensurate with the Circulation Element and the General Plan of the city. * * * "The widening of the road itself will accommodate land uses in the area adjacent to the roadway as well as playing the regional role that the facility is intended to serve." 3. Council Agenda statement, Item 31 A-D, dated April 21, 1992, Exhibit B (Minutes, otay Valley Road Project Action Committee of January 13, 1992): "The property owners are not against the road improvements per se. However, they feel the road is too wide to service the project area and the cost is too high for some of the property owners to bear. Mr. Kassman indicated that although the road project is scheduled to be six lanes from I-80S to Nirvana Avenue, the traffic generation analysis in the area indicates that a four lane facility will suffice. The City has agreed to put in approximately $1.2 million in order to pay for the two additional lanes." The improvements proposed are based on forecast volumes at build-out of the General Plan, and the traffic studies were based I.J"~/ Hon. Mayor and city Council city of Chula vista May 26, 1992 Page 7 on these same forecast volumes. Yet, the assessment proceeding has focused the burden of the improvement costs on only a portion of the area that is said to benefit by these improvements. Further, the preliminary Engineer I s Report (page 37) states that "the widening will improve the existing level of service on [otay Valley Road], will increase traffic flow between connecting areas and provide a safer corridor of travel." It is clear that the improvements provide a general benefit and not a special benefit to the properties assessed. Also submitted to you is the May 22, 1992 report of Linscott, Law & Greenspan, Engineers which has analyzed pertinent project documents and raised a number of concerns about the discrepancies between traffic counts, road size, and the variance between the overall project cost and the portion which the City is proposing to pay for the additional fifth and sixth lanes. That report concludes that the roadway proposed will provide direct benefit to an "area much larger than the benefit area identified" for assessment. LEGAL ANALYSIS In looking to the legal test and comparing it to the facts, we must assert that the city's proposal violates the 1913 Act's requirement that the assessment imposed is equal to the special benefit to be received and, moreover, violates the Act because no special benefit is realized at all. 1. General. Not Special. Benefit. Following the Harrison test and analysis, we first look to what the "benefit" really is that will result from the public improvement. Basically, the only "benefit" that will result from the road widening is improved traffic circulation. Harrison tells us that relief of traffic problems and the facilitation of traffic circulation is a qeneral benefit to the community, not a special benefit. While there possibly is special benefit that could be realized to some property in terms of facilitation of ingress or egress to a particular property, such is not the case with our clients. Further, the benefit that may be derived from the potential increase in property values from the road widening was said by Harrison to be "too tenuous a connection." /3~~ Hon. Mayor and city Council city of Chula vista May 26, 1992 Page 8 So what, then, is the special benefit to the owners proposed to be assessed? The city has failed to identify this special benefit in terms which will stand the test of the 1913 Act. The city's theory of special benefit is tenuous, at best, when one looks to the scope of improvements for traffic circulation, the regional traffic circulation facilitation, which by its very nature is a general benefit which should be borne by the City as a whole-- not by the property owners who happen to be "in harm's way." 2. Benefit Not Eaua1 To Assessment. Even if there was some factual basis for the argument that a special benefit could result from the improvements, the assessments imposed on these individuals far exceeds any special benefit which may result to any given property owner for all of the reasons stated above. While some courts have said that an exact relationship is not necessary, that does not in any way justify the broad divergence here between the assessment and the benefit. 3. Other Points of Concern. As other points of concern, we assert the following: 1. The method and formula of assessment spread in the Preliminary Engineer I s Report is inadequate. Properties are identified by Assessors Parcel Number and an assessment is assigned based mostly on formula ADT figures and in a few instances on actual traffic counts. No computation is shown as to how the assessment for each parcel was achieved as is required by Streets and Highways Code Section 10204. 2. A focused traffic study is needed to determine actual traffic improvement needs (if any) of properties within the proposed benefit area. No specific ADT count for the Assessment District is presently available, and to date traffic studies have been based on forecast volumes of ultimate General Plan buildout. Until this is done, the alleged benefit (if any) to any property owner within the proposed district cannot be fairly or accurately determined. 3. The assessment proceeding is flawed by each and every issue raised in the Linscott, Law & Greenspan report of May 22, 1992, a copy of which is attached to this letter. /3',).$ Hon. Mayor and city council City of Chula vista May 26, 1992 Page 9 CONCLUSION Based on all of the above and all documents in the City's file for this proceeding and the oral testimony presented at the hearings in this matter, we urge that the city council take no further action on this assessment proceeding, but rather terminate it at this time and reevaluate the basis for the proceeding, the scope of the public improvement proposed and the level of assessments proposed for confirmation. The proceeding has not been well-received by those who will bear the burden of the assessment, and we believe this is with good reason. The Council must heed and consider seriously these concerns before it takes any additional action. Respectfully submitted, WJS:mam Enclosure d:\siroon.ian\mayor3.ltr cc: Mr. Charles Pratty Mr. Charles Siroonian Mr. Joe Botkin city Manager, City of Chula vista city Attorney, City of Chula vista WORLEY, SCHWARTZI GARFIELD & RICE ~/!1d~tJ~MJjdA- I~~;J-SCHWARTZ, JR. 13~'f LINSCOTT, LAW & GREENSPAN, ENGINEERS TRANSPORTATION PLANNING. TRAFFIC ENGINEERING. PARKING 8989 RIO SAN DIEGO DRIVE. SUITE 135. SAN DIEGO. CALIFORNIA 92108 TELEPHONE: (619) 299.3090. FAX: (619) 299-7041 May 22,1992 PHILIP M. LINSCOTT. P,E. JACK M. GREENSPAN. P.E. WILLIAM A. LAW, P.E. PAUL W. WilKINSON, P.E. LEON D. WARD. P.E. DONALD W. BARKER, P.E. t, ~ 1 ~ . 1 1 .~ '! , ~ Mr. William J. Schwartz, Jr. Worley, Schwartz, Garfield & Rice 1150 First Interstate Plaza 401 "B" Street San Diego, CA 92101-4245 ~ -, . Subject: Otay Valley Road Assessment District #90-2 Dear Mr. Schwartz: ~ . Linscott, Law & Greenspan has reviewed the following documents concerning the proposed Otay Valley Road Assessment District #90-2: , , , . The Final Environmental Impact Report (FEIR) for the Otay Valley Road widening. ~ , . The Preliminary Engineer's Report (PER) for Assessment District No. 90-2, April, 1992. . The Financing & Feasibility Plan (F&FP) for Otay Valley Road Phases I and II and Public Improvement~ Associated with Otay Rio Business Park, July 25, 1991. It should be noted that the scope of work and budgets for preparing these documents was not known. The following questions and comments arose during our review: 1) There is a discrepancy between the various documents concerning the trip generation rate used for the Industrial Park uses. The F&FP (page 22) uses 80 daily trips/acre, the PER (page 38) uses 200 daily trips/acre and Appendix F of the F&FP uses 120 daily trips/acre to calculate the trip generation of the Otay Rio Business Park. 2) We would question the traffic data for the Otay Landfill contained in Table 4 of the F&FP. According to vehicle counts taken at the Landfill between January 1, 1991 and June 30, 1991, there was not one weekday when less than 150 trucks accessed the landfill and over 90% of the weekdays had over 200 trucks. The daily volume of 80 trip ends in Table 4 appears very low. OTHER OFFICES: COSTA MESA TELEPHONE: (714)641-1587. FAX: (714)641-0139 PASADENA TELEPHONE: (213) 681-2626. FAX: (818) 792-0941 AN LG2WB COMPANY / 3 ,~~ \1' Linscott, Law & Greenspan, Engineers Worley, Schwartz, Garfield & Rice May 22,1992 page 2 3) A comprehensive study should be completed to determine the traffic generation and corresponding facility requirements for the assessment district only. It is agreed that a six-lane roadway is necessary to accommodate the projected regional buildout traffic volumes, but it is possible that a four-lane roadway is sufficient to accommodate the assessment district traffic. The six-lane roadway will relieve projected regional traffic problems and will provide direct benefit to an area much larger than the benefit area identified in the F&FP. 4) The PER states that the City of Chula Vista will contnbute to the financing of the widening of Otay Valley Road but does not state an amount. The F&FP states that the City will contribute $1,211,971. It does not state how this very specific amount was determined. The meeting minutes from the January 13, 1992 Otay Valley Road Project Area Committee stated that, "traffic generation analysis in the area indicates that a four lane facility will suffice" and, "the City has agreed to put in approximately $1.2 million in order to pay for the two additional lanes." Therefore, it appears that the assessment district is paying $10,406,242 for its two additional lanes and the City is paying $1,211,971 for its two additional lanes. 5) Page 11 of the PER indicates a cost item for a traffic signal at I-80S. Was it taken into account that the I-805/0tay Valley Road traffic signals are scheduled to be installed by December, 1992 and that negotiations are on-going to have Caltrans pay one-half of the signal cost (Mike Donnelly, City of Chula Vista)? 6) The following comments relate to the cost estimate for Phase I of the Otay Valley Road widening project contained in the PER, pages 8 thru 12. Upon cursory review of the cost estimate, we assume only one traffic signal is a part of this project (item 66 calls for only one controller). It appears that items 66 thru 87 are specific items for this signal installation. With respect to the individual cost items, we have the following questions: a) Items 69 and 85 appear to be the same thing. We do not understand why the costs are different nor do we understand why there are 10 type 29-5-70 signal standards under item 85. We think this number should be 1 instead of 10. b) Items 88 thru 91 appear to be for a signal interconnect or lighting; the estimate should specify this. c) Item 87 appears to be too high in quantity (24). A typical signal installation usually requires only one of these (and sometimes two). Any signal interconnect typically uses #5 pullboxes (PB). /3--,J./e, . Linscott, Law & Greenspan, Engineers Worley, Schwartz, Garfield & Rice May 22, 1992 page 3 d) On page 11 (second from bottom), we do not know what the $289,300 is for. ls there more than one signal here? If the answer is no, then this price appears to be high. If the answer is yes, then why were there no individual costs supplied for the other locations? If you have any questions, please give us a call. Sincerely, LINSCOTI, LAW & GREENSPAN ~41lPE Senior Transportation Engineer JPKlJAB/pbs 3-920502 IJ'~? ~~ft2 cd~/J --;;7s /~7< /'S /~c?h/ c4vCG~/t//~ ~ c/.4/ d/dfr !f?-f-J ~ES.:?AP"6-~ cP3,r//;/ d 7t7- 2, ,uec """",v ~ /.R~,;4 J Yf?5 ~#L::-~~Y ?V~/ aJ:v4 U9~1" {J,f'. ?20// Et/6-7V U / /5 r?~~;<?&/~ R'..2-f/ ~ #&-",1'..<'</6""721/ Qbn ~/ 57"'/,,,,J tfP/1 ;/#f'c-v? /' / / -rf .Ff~ Y:;;7 ~ >:~ S; APY ~,/- /d~ ~S'/ M/ .A//J~F <j;& S; ~-I U cJ-ff/V Vc:7 ~ s -/ ,vE.#-P /" ~ /-'/= Or /J#~'7' -n, 6"""'% /~/ --6~AT ,4. //, /45/ t<~ /l- 5' A ~ - <I'S$~/~ /l--fi/d ... RFC-ycJ/Vf .6asw6--g~ th K"'tf.u/~ /lflj7l2ovJ/(etM4 t/.1t'R R'7 d ~4 0~/ -rc t 5:.Y ~ -Prl 1/-<5 i * 1L13// /otU; ftS-J? ,4 '5 /I tf.do d?/?I pr// #"" ,j Rec'-jcl"1 5>4, tr./Ard? tU,-1 A//'PuJ ~ ji;,l2o;/c41/ ~ 5;";~ (is 5'Kr'S{,"1 /9'A/d A4(jr'I/~ A'dVS. /'< I 77 //t.Jt!5fbty~ / g,;// ;</!~fr/l/zl" ,r;3/2 / J ~;L 5f Et/S/u {(J' ""J//j4/>t/E z-- . ?/.204~f /aJA/6"Je '. RESOLUTION NO. I' (, :3 9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS FOR EXECUTION IN ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) AND AUTHORIZING THE MAYOR TO SIGN SAID AGREEMENTS WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has, pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, by adoption of its Resolution of Intention, declared its intention to order the installation of certain works of improvement, together with appurtenances, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) (hereinafter referred to as the "Assessment District"); and, WHEREAS, there has now been received, in proper form, an Underwriting Agreement for the purchase and sale of said bonds to issue under said proceedings, and said underwriting agreement received is, in the opinion of this legislative body, considered to be the underwriting agreement that would best serve the interests of owners of land included within the Assessment District and should be accepted; ,and, I WHEREAS, pursuant to section 10110 of the Streets and Highways Code of the State of California, it is required that prior to the time that any works of improvement are ordered pursuant to said proceedings, the legislative body may, by contract, provide that certain works shall be performed by other public agencies or regulated public utilities who will have the legal title to the facilities, and further that said, improvements shall thereafter constitute a part of their system; and, WHEREAS, be made prior the assessment it is further provided to the adoption of the proceedings; and, that any such agreement shall Resolution Ordering Work under WHEREAS, at this time, contracts have been submitted pursuant to the authorization of Section streets and Highways Code. reviewed and 10110 of said NOW, THEREFORE, BE IT RESOLVED: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the underwriting agreement received from STONE & YOUNGBERG for the purchase of improvement bonds representing unpaid assessments in said Assessment District is hereby accepted and approved for execution on behalf of the city. Said acceptance is subject to all the terms and conditions as set forth in the underwriting agreement. " 13/1-1 ;< '1;0 SECTION 3. That the agreements, herewith submitted, relating to the installation of certain improvement facilities that will be under the ownership, management and control of other public agencies or regulated public utilities, are hereby submitted and herewith approved. The following listed agreements are hereby authorized for execution on behalf of the City. Said Agreements relate to facili- ties to be owned by the following listed public agencies or regulated public utilities. A. OTAY WATER DISTRICT B. SAN DIEGO GAS & ELECTRIC C. PACIFIC BELL SECTION 4. That immediately upon execution, conformed copies of said Agreements shall be transmitted to the offices of the under- writer and respective public agency or utility company, together with a copy of this Resolution. Presented by d John P. Lippitt Public Works Director Bruce M. Boogaar City Attorney PASSED, APPROVED, and ADOPTED of Chula Vista, California, this 1992, by the following vote. by the City Council of the City day of AYES. Councilmembers. NOES: Councilmembers: ABSENT. Councilmembers. ABSTAIN. councilmembers. Tim Nader, Mayor ATTEST. Beverly A. Authelet, City Clerk 13/9"J. STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ss. I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. was duly passed, approved, and adopted by the City Council held on the day of , 1992. Executed this day of , 1992. Beverly A. Authelet, City Clerk 13/7--3 RESOLUTION NO. I"" 'It) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING TRANSFER OF FUNDS TO ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) WHEREAS, on April 21, 1992, Resolution of Intention to construct and improvements to Otay Valley Road, east of Municipal Improvement of 1913; and Council adopted the finance certain public 1-805, pursuant to the WHEREAS, the estimated total cost of the Otay Valley Road project (Phase I & II) is $13,841,700; and WHEREAS, it is proposed that the City and Redevelopment Agency contribute $3,435,467; and WHEREAS, the city shall be reimbursed by SB 300 funds upon completion of construction; and WHEREAS, the city needs to loan $1,161,000 to the district prior to project completion. NOW, THEREFORE, BE IT RESOLVED that the city Council of the City of Chula vista does hereby authorize the transfer of $1,161,000 from Sewer Fund 222 to Account 996-9960-ST123 for Assessment District No. 90-2 (Otay Valley Road), which amount shall be reimbursed by SB 300 funds upon completion of construction. C:\rs\ov fund xfer Presented by J John P. Lippitt, Director of Public Works c~ty 13/1-/ " " : RESOLUTION NO. I~~ '1/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING CERTAIN CHANGES AND MODIFICATIONS TO THE ENGINEER'S "REPORT" IN ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has previously adopted its Resolution of Intention pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, for the installation of certain works of improvement in a special assesement district known and designated as ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) (hereinafter referred to as the "Assessment District"); and WHEREAS, based upon the presentation and recommendations of staff and available documentation, it now appears that the changes and modifications as set forth in the amended assessment roll, as presented herein, should be approved and ordered to be done. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That all changes and modifications as set the final assessment roll and Engineer's "Report" as submitted are hereby ordered and authorized to be made. particulars, reference is made to said "Report" as herein a copy of which will remain on file with the transcript proceedings and open for public inspection. forth in herewith For all approved, of these SECTION 3. That the Engineer's "Report", the Assessment Roll, and all related documentation, as so modified, are for the best interests of the property owners within the Assessment District, and said assessment, as modified, is in accordance with the benefits received, and the "Report", as herein modified and amended, shall stand as the "Report" for all subsequent proceed in relating to this Assessment District. Presented by John P. Lippitt Public works Director Approved as to ~~ Bruce M. Boog City Attorney PASSED, APPROVED, and ADOPTED of Chula vista, California, this 1992, by the following vote: by the City Council of the City day of /3C-} \ AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: ABSTAIN: Councilmembers: Tim Nader, Mayor ATTEST: Beverly A. Authelet, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ss. I, Beverly California, was held on the A. Authelet, City Clerk of the City of Chula Vista, do hereby certify that the foregoing Resolution No. duly passed, approved, and adopted by the City Council day of , 1992. Executed this _____ day of , 1992. Beverly A. Authelet, City Clerk /3C-~ RESOLUTION NO. 1(,(, ~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OVERRULING AND DENYING PROTESTS AND MAKING CERTAIN FIND- INGS IN ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has, by Resolution, declared its intention to order the installation of certain public works of improvement, pursuant to the terms and provisions of the "Municipal Improvement Act of 191311, being Division 12 of the Streets and Highways Code of the State of California, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) (hereinafter referred to as the "Assessment District"); ahd, WHEREAS, certain owners of property liable to be assessed for improvements have filed written protests or objections and delivered the same to the city Clerk not later than the hour set for hearing such objections; and WHEREAS, at the time set for said Public Hearing, all protests and objections were duly heard and considered, and all matters as to the method and formula of the assessment spread and the determina- tion as to whether or not the property did receive a benefit and whether the assessments were apportioned in accordance to benefit were heard and considered. NOW, THEREFORE, BE IT RESOLVED: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the public hearing on the Assessment District is hereby closed. SECTION 3. That all protests and objections of every kind and nature be, and the same hereby are, overruled and denied, and it is further determined that said protests and objections are made by the owners of less than one-half (1/2) of the area of property to be assessed for said improvements within said Assessment District. SECTION 4. That is hereby further determined that all proper- ties within the boundaries of the Assessment District receive a local and direct benefit from the works of improvement as proposed for said Assessment District, and it is hereby further determined and declared that all assessable costs and expenses have been appor- tioned and spread over the properties within the boundaries of the Assessment District in direct proportion to the benefits received thereby. SECTION 5. That the Engineer's method of spread and apportion- ment of all costs is hereby approved and adopted as being a correct and proper apportionment and distribution of all assessable costs for these works of improvement. 13])-/ John P. Lippitt Public Works Director Bruce M. Boogaard City Attorney Presented by APpnd as (L~ PASSED, APPROVED, and ADOPTED of Chula Vista, California! this 1992, by the following vote: by the City Council of the City day of AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: ABSTAIN: Councilmernbers: Tim Nader, Mayor ATTEST: Beverly A. Authe1et, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA SSe I, Beverly California, was held on the A. Authe1et, City Clerk of the City of Chu1a Vista, do hereby certify that the foregoing Resolution No. duly passed, approved, and adopted by the City Council day of , 1992. Executed this _____ day of , 1992. Beverly A. Authe1et, City Clerk /3D-02. 05-22-92 11:2~ AM FROM B 0 H P02 IUISOL1I'1'ION lfO. /~" '1.3 IUII!IOLU'nOlf or 'rIIII C:I:'1'2' OOliIlCIL or S'U C:t'1'2' OJ' CIIllLa VISTA ClOtIJ'IIIKIIIG ':t!IIl U....llU'f, 'OIlllIl1UIIG ':t!IIl IIII'1I01IlIKIRC'r1!l 1la08, TOOBTHIIJl "ITH APPUllTBRMCBS, ."I\OVIlCO 'lIIB IIlCOIRB1IlJl'S "IUIPOlI.T', IUlltI'O CBQr. rDIIlIIIGS, MIl lIDOPTIIIG II STA'UIIIR'l' or OVIJl!l:tl)IIIG CCNIIDDlITIORS AND A MITIoaTION HOI'II'fOIIIKG PLM IlBGAIIDIJIG USISIIIlIllT llIIftIC'I 110. 90~2 (amY VAI.I.ft JlOAD I "RIRIIAS, the CITY COVRC:l:L 01: tbe CITY or CHVI.A VI.TA. CALIJ'ORNIA, haS p~...iOll.ly a4Opl:ed it. ..solution of Inumtion and initiat.d proc.ading. for th. installation of certain public workll of !lap..ov_t. togetMr with lippUrt!tnancee and appurtenant work, inoluding acqui.itlon whar8 ap..':v...:lat., in a speclal ....._t 4i.t:r:ict pu&'.uant to th. t.=. and P&'O"iaion. of the 'Municlpal :l:llp&'o,,_.nt Aot Of 11113", b.l.n9 Divi.lon 12 of the senet. and Highway. Cad. of the Stat. of Califo&'nia, .aid .peci.l ....._t dlatdot known and de.ip.tad .. ASSBS8WBI'IT DIITJlIC'I JIQ. 110-2 (O'lIAY VALLIY JlOAD) (b....in.ft.r "".&,&'84 to .. th. "....._nt Di.triot"), and, WHBRIIAS, pur.uant to 'l:M provl.ai..... of ..1d "MunJ.clp&l Imp~ove- 1IlSQt: Aot: 01: lt13' and P&IL't: 7.5 of 1I1,,1.10n 4 01: the street. and H1ghway. COd., tb. "Sp.oi.l A....ament. Ll.aIitatlon and H.jo~ity prot:..t agt of 1931", .. ClOlllblned "Jlepo"' (b8&'.illaft... >:.f.....ad to a. th. "R.port'). a. autborized, baa been provlded. pA..nted, con.idered and approved by th1. 1AI9i.18t1ve body, and, lfIlBRIIAS, .aid "BepOrt" , a. pr.UmillarJ.1y &pP&'O".d, cont..ined all tbe .att.&'. and it.... call.d tor. by law and .. pu:euant 1:0 the pro"i.ion. ot the "lCIInJ.cip&l IftIP&'Cl~t Act: 01: 1913" and S.ction 2961 of .ald str.-t. and Rigbway. Code of tb. It at. of Callfornla, lncludlng the followll19' 1. Plana and .pecUic&tiofte of the Fepc..d imFO.-nt., 2. I.tl.ma" of 00.'" 3. Diagram of A......nt D1atriot, 4. an .....sment aacord1ng to baftlflte, 5. II .s..cd.ploion of tb. work. of !tnp&'ov_t, 6. Valuation lnfor_tiem, &n<I. lIRBUA8, all plL'Ot:.ate ba". been Mud alld con.id.red, and .. full hear1ng has baen 91....n' all in the manne>: provlded by l.w, &n<I, "II.UAS, Dot:io.. of ..id b..rinv w.r. duly and r8llU1U'ly poeted. mailed and publi.hed in th. t1me, I:ODII and _nne>: r~ited by law anc1 a. ev1denoed by affidavit. on IU. with the ttan.or1pt of the.e ptooeed1nge, and, lfIIBRIIAS, tll. owner. of Ofte-ball: C 1/21 01: the ...... a.....ed fo>: the coat of the p~j8Clt dld not fUe writt.n prote.ta agaiDat the .aid l'ropoHd iIlp.:'O,8IlI8iIt8 and aCQUiSition where 81lJilZ'OPriate, iI1lc1 ~hi. legialat!". body did. after proT1din; a tull bea..il19. Ove:l:>:ul. ..nd deny all prot..ts and ob'ection., and, 13E,/ 05-22-92 11:29 AM FROM B D H P03 WBII.S.lI. the l.gisl.tive bo4y i. d..l.ro... at this til1le of provi4in; a aant:dbllt10l1 1:0 pay . portl.on of 101'1. "o.t. .Dd .x1*-. of th. work .nd prcc..din!J" and, WHlRBlS, thi. le;i.lative bo4y 18 nllW .atl.fled with 101'1. ....... ment and aU matt.r. cOIIta1n8ll 11'1 the ".~. .. now updated and .uI:lmi1:ttld, and. WBIRBAII, th1& l.gi.l.tive bOdy did, by 101'1. aeloptlon of R..olll1:1ol1 Ho. 16599 ("oertifYl.ng Resolution"" CllIrtifr that the fin.l In"ir~tal Impact: MpOrt, a. 48f1nt1d therein ("0111"), was 5'rep.",sd in .cllo",4.n"s wi1:h 1:be ra~irement. of the California .""lro_lIta1 9".1.11:y A". .nd the lJIIidel1n.. lawfully pl'Ollllll;ated thereunder, anel, WHIRlAS, the ",.oUal. an4 re801IIt10n. of the City councll eontained ion the Certifyill9 Resolution .... inoorper.tec5 1'1....111 as iof II8\; forth in f..U 1'1......10. HOW. TlmMJ'QIlB, BI 1'1' lIBSOLYID. RICI'1'M.8 SIC'l'IOII 1. '1'1'1.10 101'1. above recitale are .11 true .nd oorraet. PRD'1'IST. SBC'l'IOII 2. That aU plrOtaaes and Ob'eetion. of -zr kinel and n.t..... be, .nd the ..... h.r.by .r., ""errultld .nel l!8niad, .nd it i. furth.r ct.tezm1necl that ..id plrOteae. and oll:lectlon. U'e madll by lobe own.r. of 1... than one-half of the .r.. of property to be ......ad for said iIa.pz'_nt. withill Hid 18.......nt Diaerillt. UllUI',. UCI%VZD SSC'l'IOI'I 3. '1'h.t ill i. beftby det.....1n.d t:hat: all properti.. ..ithin 101'1. boundaries of the ....._t Di.triet noei". . 1._1 anoS dir.et ban.fit from 101'1. worlul of impr_t ... propoaeoS for .aid ......m.nt Di.trict, and it i. ar.by furt:h.r d.t.mined anoS d.el.red that .U a.....abl. cost. pd eXpeIlae. haTe be.n appor- tioned and .p~.acI ov.r the properties "ith1n the l>oIZlloSar1.. of the ....._nt Dbtrlet 111 dlno1: proport10n to the benefit. recelved 1:hereby. nllf.IC III'1'IIRU'1' AIlD COIIVIIIIlIIII/CII SBCTION 4. That 101'1. plllllie ln1:en.t and eonven1ellC. requl.re the propo.ed 1mprov....nt. to be nuode, and theref~ it i. her.by ordered that the work to I>> dona and iIIlprov_nt. 1:0 b. mad., togetber wJ.th .ppurtenanoe. and .ppurtenant work in ClODnactioa ther.. with, .Lnolud1ng acquJ.aition ..h.... approprlat:.. in .aid A........nt Dl.trie1:, a. .et forth in the _olution of Intention ~iou.lr adopted .nd .. .et fo~ 1n the "MpOrt" pr...nt.d and eon.lderecl, and .. now 8IIbmlt:t:ed. /3&-;2. 05-22-92 11:29 AM FROM B D H P04 anIHIIIR'S "JIB_'1'" SIlOTIon 5. '1'hat the '''po'''t" of the IIngLn..I:, .. no.. .ubmitted.. upSatall &Jl4 ~ed. .. appII:QPr1.te, 1f hell:ablr appl:oved .nd .a14 "JI.pgn" .hall .taDd .. the "R.pol:t" fo'" .U futuN proceed.1Dg. fOI: th1. A...._nt tlLRdct. C01fI'IIUfArIOIC 01' A8S11SII1B1rL' SBCTION 6. Th.t th. a........nt.. a. DO" f11.d 1n tb. lIft91n..I:'. "-.port", and ~U1 fo'" the iIapz'.......nte. top1:h.'" w1th .pp....t.n.no.. .nd app..rt.nant worlt in oonn.ction tb.",aw1tl>, 1no1udln; .cqu1e1Uon ..Ilu. .popd.t., u. hell:8blr ccnf1l1:Md. TIle .........lIt. OOIIt&1l1ed. 111 the f1lla1 BI\91n..I:'. "aepol:1:;' ."'. ll.1:8bl/' 1.v1ed. and approveci .. fo11owe. A. TIl. f1nal ....._t. to ~_t the coat. ancI .xpen.e. to Unanca th. pubUc _It. Of iIapz'_ent:, .. ..."bo- r1c.d fo'" 1:;be.. pcoaeeding.. II. Th. annual .....-* to pay for adJ\\1n1et.ratbe co.t. ln an EIOUllt not: to uoeed the maxl.mwn .nD...l ......_t a. nt: fortll ln .aleS "Report". The conf11:11l11d annual .dJ\\1n1.tI:.ti~ _.....nt may be collected. in the ._ UnD.r and l.n the ._ l.net..l~nt:. a. the confirmed ......_t. for the f.oiU"I.... and may be CClIlIbined. wl.th tho.. ......ment. fa'" aolleot:ion .. conveDl.ent. CORD1BTJT'IOlf 'IC'l.'IOIC 7. That 1:;h. apopdation of tll. mollte. .. eat forth a. a oont.d~ution in the .ng~"". "Report" .. hell:ein F.'1tD'ted rel.UDg to till. A....ament D18tS'l.ot le bel:eby .PFOvtIlS and autho- ..1.eel. sai.d oantl:lbutl.on 1. autbo",l.ed pu"'......t to Seot:10D 10205 Of the "Kun1clpal Il\ori=o._nt ACt of 1913., be1ng D1vi.lon 12 Of th. st:",eet;. and IIl.p.y. Cod. of the st:et.. Of Call.fOll:n1e. A8SIlSIIHIlRT VlILlJATIOIC SBC'l.'IOI9 8. That th1. leg1.1atbe bo4y hc'eby flncSIJ 811d clet.,..- min.. th.t the tot.l IIIIIOUnt Of the pd.no1pal e_ of all unpe1d .p"o1al ...__nt. PI:Qpoeed to ~ levied. .. _11 a. ...y outet:and- l.ng .p"c1al .........nt.. \lQe. not exceed 1/a the total trua value ot t:h. puc.l. p"'opoOe! to ~ .....ed uncIel: thee_ Proceed1ll11., anel thi. fine!ino .bal1 b. fin.l and conc1u.iva. '1'hi. le;1.1ativ8 body further flncl. that t:h. project 1. feasible ane! that the land. to be .......d will be able to oarl:y the bu.rd.n of the prc>pa.ed. _.....nt. and 1t i. --blr furth.", detam1,,*, , if and a. .ppll.eabl., tha1:. 1:.he U.Illi1:.tion. of the _nt:. of .........nt. FOVlded for in 111vI.a1on 4 of the 8treet:. 13E.3 05-22-92 11:29 AM FROM B D H P05 anoS B.l.9hway. Cocle of 1011.. .bate of c.Uforn.l.. be 4.1..revuded llot.h ...1.1111. o:..peeb tie til.l U.IlIlbab.l.oft on bhe _._10 D.I..bdct. a. a whol., an4 .. 100 bhe l.!.llllb.l:lon on .l.n4bldu.l epec1flc a...._nb., .. .pp1.l.cule. nc:oJtl)A'r:totf 0' lIS8USJlBllT OC'rIOlI t. 'th..b bhe C.l.lly Clerk .11...11 fgz:1;hwlth del1vwr 100 the Supel' .l.nt.noSent of Street. l:Iw ...ld .......-, togwthe:z: ..Lth tile dla;:.:_ attache4 tl18l'"O an4 lIl&4e . part theAof, .. ClQlIflJ:1lleCl. wlth h.r cer1:1f10..t. of .uoh conflrmatlon att..che ancII the datil thenofl and that .aid superintendent of stRet. .hall theD ~labely rlooZ'CI ...l.d dla;:z:am and .....a-nt in hi. Office in a ...11:0l1 bOOk to be kept for th.t puo:po.. and .ttach thlRtO 11.18 certif.l.cne of the elate of .ueh :z:aco:z:din'il. CIO'OII'n :lICOIIDBR HO'rIClB OC'rIOlI 10. vpon QOl\Un.\Lon of tile ....._nt. and .:acoria- tLon of bbe ....._t .:011 ad ti...., a ...n.l.f.l.ri COJI7 of bhe ......_nt d1agZ'am .11...11 ]a 1.mmeoU.at'ly f l.led ln the Off lc. of the County "coria.:. ~l."ly IIh.nlt.:, . copy of t:h. not1e. of ......~nt .h..ll be Z'eGoX'ded in 1:be Offic. of the County Jleco:z:d.X' in the lIIallller an<< fom ... ~ fo:t:h by 1." and IIp8c.l.f.l.e..Uy Sec:tlon 3118 of the It:z:eat. an<< H.l.ghw"y. Code of tll., .t..te of CallfoX'Di.. MtT.1Ift lfO'tICB nCl'rIOlI 11. That upon reeoZ'da't1on of the dlagr_ .nd .......- IllIlnt, . 1I0tice .ball be 1lI&l.l1lCS to ..ch _I' of real pZ'Op8rtJ' withln the ,....._lIt DUtrlct .t hi. lest: lcnOwn addZ'..., ... ..14 .4dn.. appee. 011 the l...t equ.l.1.sri 1:u l'OJ.l. of the Coullt)'. ..14 not.l.e. to Bet forth . .tat_t eont..i.lling . 4ee191l&t1011 of the p!:Op8RY a....IMId, a. _11 .. the _1: of t!l8 fin.l eOllf.l.ftlId .....-..t, .n4 funbw .l.n4ie.UIl9 that boft4. ,,111 be .l.e....oS ~.nt to the .IlltpZ'......nt Iollc!. Act of 1915'. 'lIBLIOAftOll 19BC'lIOlI 12. '1'hab notl... 'hall ..leo be given by publ1eation .l.n ~h. dee.l.9n..loed levaJ. n....pape:, HLd notlce eetlolng torth the UlOun1o of bhe Un.l ....._nlo .nd in<<i.c.tlng lobalo .a.l.d ....._t 11 now du. ..nd payabl., an<< furth.r lnd.l.c.tLng that: it aaLd a..._nt b not paid wLthin 1011.. .Uowed t.111ny (30) d..y calli. 0011.ot1on periOd. bond. ,ball be .I...ullCS .. ..uloho:z:ind by law. MO pubUe.tLon" .hall be :z:.quued 1.f .11 (100") of the .......d property own.X" baft t.J.a\ely fUed a pX'operlll' .xecut.ed walvaZ' of tile o..h ClOll~ioll peri04. AIlID8SJIDT COLLlW'l'IOM nCTIOK 13. The county I.udlloor h llenbY .uthorbed and dir.cted, in accordance with tbe po:ovLll.onl of Section 86S2 of the /3E-i 05-22-92 11:29 AM FROM B D H P06 Stl:eet. .Ild IU.ghwar' code of the h.t. of caUfoJ:nu, 1:0 entn ln1:o hl. .......-m: ':011 on wIIi.oh pl'opefty tax.. ,,111 Ilez1: b. J.... clue, oppod\;. ..Clh lClt 01: pucel of lalld .ff~ed, U . 'paCl8 IllU'IWd 'p...b11Cl l.mpJ:Ov_t .....-t:. 01: by Cltbel: .ultabl. d..ignatlOft, the next a"d .."..,.1 l"etalllDellt. of ....oh ....._10 cOlllLnll cl.... dUI:1ng the ,,,'u1llll U.o.l 1'8.... o~ lit the ....._t 1:011 aod th.t ..ld entry then 8haU be made e.oh 1'..... dIIdllg the Ufe of lobe bond, to.: the p.:oo..,Unv' tOI: the abo"e-.:ef.':.llCled a...._nt Dl.tl:lot. Thl. .uthol:b.tlon 18 oontl.....1 un\;11 .U .....uent obl111at1on. have been cU'ClhaJ:ged aod ~. bolld. t8l:lll1llated. .. an &1tez:Il&U, and when det8Elll1ned to be ln tile b..t: lnt:.....t:. fo.. bond1lO1I1iI.., of t:... ......_nt Dl.tr1ct:, th1e 1.",1.1.t:1v. bodV maV, by ",olutlon, d..lgn.t:. an ofnol.l other than t:b. COUnty !fax Coll.c1:ol: and/or otbe.. 898nt, to ool1ect: aod lIIa:l.nt;.ln I:.c:oo:cl. of tbe oolleotlon of the ......l88ilt. r 1IIo1ud12>g · prooeduJ:e oth..: than th. noJ:lll&l FOP*J:ty Ux ClOUeot1on prOC.duJ:.. 810'l'%01l 14. In aClClOz:4.llCl. w1th the ,~ie101\lJ of liIeot10ll 80S of the 8tI:Ht. ad H1ghway' eo4e, U .ny lC1t 01: p.......l of land. .tfeQ1;ed by .ny ....._1'110 1. l'IOt ___l:at.1:r ......ed on the tax .:oU 10 thet the 1n.t.l1m8nt of the ....._nt to be coU...tecl can be ""n"elll.nt1y entu.cl ther.on, th.n th. Audltor .hall .nt'l: on the ':011 . cSee..dptlon of the lot: 01: paJ:G8l affeoted, wlth tile 11_ of the OWIl.n, U lmOWn, but otben1e. tile own..:. may be de...:dbed .. 'unknown owneJ:,., .nd extend the propel: J.n,t.UIWIlt OPPOIl.te the ,II1II8. A8IIlISBDIlT VlRUlCATIOB STA'tIImNT SBCTIOII 15. The COUnty AudltOl: .haU, wlthlll 90 daV' after any speciel .....1IIll8n1: In_t.l~t bICl_' lJeUnqu.nt, nnlJeJ: .Ild .lIbm1t . detal1ed repeJ:t _bowlng the ..ounte of the 12>et.llment:e, lnte~, penalti.e aod p8J:C.ntage. '0 ClollRtecl, fo.. the pr8Cledl.ft", te:ran and. 1n.t.lllll.nt elat., anel f_ wh.t pl'opeJ:ty ..ollect:ecl, and. furthw LelentUy .ny pl'opert1" wh1Clh Il:e lJellllquent .nd. the _nt and 1.ll\lth of t1me fOIl .aW lJel1nqllenl:!Y, and furthel: let fOJ:th a etat... I'IlltIlt of pal:c.ntaga. ..et.lnecl ~ the ~... of III&klng &UClh COll8Cl- tlonl. ThL. nq\le.t 1.1 'p8ClU1ClIU:r 1II&cl. to lohe autho..1eat10n of s...t10n 8683 of the Streeta and B1Vbway. Coda of lobe state of Callforn1a. A8S888K11l'1' DISTRICT I'URDS SICTIOII 16. '1'hat the Tftaallrer 18 b.reby .uthOJ:llIed at 101\1. t1me, 1f nClt pnrvloul1:r don., tCl ..tabUsh tbe fOllowlng f1l1'lde .. n__....y fOl: the payment of coete and. .xpen... and acl1ll1nl.etration of the p..ClClll8dll19' fOI: t:h1_ ....__\ Dl't&'lct. A. luaovBKllll'1' raM' All mon1.. rae.lvad frCllll ca.h collectlon, pl'0G8ede fl:OII\ th. la18 of bond. and applio.ble oont..1IIu1:1on. IblLl1 IlII pl......d l.nt:o thtl IlllP"ov_nt. Fund. /:JE"> 05-22-92 11:29 AM FROM B D H P07 .. UURVII ruJID. All 1IlOD1.. a. ....lgna~..s ~o a..1.~ 1n the payment of d811Dq\l.nc1.. .hall b. placed Lnloo the ~ 7wId. C. DDmIP'1'IllII JUIID. All mod.. _heel Ir"", the payment of ......~. .b.n be placed 1ft 1:Jl. bd"lon 7wId. ror p.rlo1.';lIahr. .. ~o the .dmln1.t.r.t10n .nd hancU1n9 of th. J'lmd., t!Ie .pecLf.l.c t..nIa and oond1t1on. ab.n be ..t forth 1n the IomS Indtnlt1lZ'8 and a~<l thrlN9h the b.oL1It1cm A1Ithori8109 the Ieegang. of lomIe. BIB CXlIIPLtAlCC8 WI!rII ClI:Clll IIC'11011 17. A8 to the b...1IIIl8Ilt Di.ui.Clt., the cuy COunall h.. ,..."L....d and aoneid.r.d nIB 110. 89-01, ~h. envLrOlllllltn~al Lmpact:e of the projec:1: thel:ein Lclentified, the propo...s mitigation m...ur.. gont.Ln.d ~1l.r.Ln .nd lob. Clud1d.t. f1ndl.ftQ8 attached h.lI.to .. lIlxh1bit "A". 'l'hie l.,i.l&ti_ body b.. found, by the .doptLon of the C.rtl.fyl.ng ...01llt10n th.t nu MO. 8li1-01 .... pllepuo.d in aooordano. wl.1:h tba nlqUb'_nt. of CJ:OI. and gul.c1.Un.. Lawfully prOlllUL;ate4 lob._du. CBQA rIItDIlf1Hl A1CD I'.l'ADIIIM' 01' O\IBSlBIDtlfQ C01IIIDDA'1IOII 8IICTIOII 18. A. AcI0P1:10n of J'l.ndinaa. '.l'he C1ty C01IncU doe. h.reby apprOvtl, .cc.pt: .. its own, iricorpor.~ .. if .at fOZ'~h in hl1 her.ln, and IllaIce neb and every on. of ~be aand14ate findLftQ8 .ttilChed hereto a. IIxh1l>1t "A". 8. c.rtain Mitla.tion ....ur.. r...ibl. .nd AcSoDted. b mon fully ident.Lfied. alld set. forth 10 Bxh.U>it: "A" .ttaClh.d h-.., thi. L89181ati". body henby f1nd8, pulleuan1: to Publ10 ...ou,...,.. COd. sect.ion 21081 and section 15091 of the CIlQA G1IldeL1n.., that the IILt.1gation ..aaun_ ....cr1bed Ln ~he nu an f...1I>1. .nd, upon acSopt:.Lon Of thi. ...0111tion, "ill ba..... blncS41l9 1Ipon,tb. Ci~y and ~ other "..pon.1I>L. putL... C. IlIfe..1I>1111:y of Alt......tl""'.. A8.. fort.h 11'1 IIxh1blt "A" attaohad hel:8to, thi. Legi.L.t.l". body beRby find. that U I.. IInn.g....1IY t.o d8t8Z'llline that any of tb. p"opoud projee1: alumatl"._ Ht forth ln tba nIR can f...Lbl.y and 8ub.1;aa.tiaLly l....n 0" .vold tha ~en~I..Uy ei9ll.l.Ucan1; .dver.. .DVi"o.....nt..l l.mpact.e el.nce all got.ent1aUy algn.iUg.nt. ad".n. envirolllll8ntal. impact. were eUminat.ed or lD.I.t.l0at.ed bel.ow . l_L of 81gnl.t.l.Clance by virtue Of tbe mitigation _.aure. ~it.b tmpoeed. 1'l01;wlt.batamS- Lnll 1;h. foreIJ011l9. thi. L89ia1ativ. body '11d revl._ the alt.ern.tJ."8. to tb. I'"o:lect. 1no1udLn9 1;be Ifo P"ojllCt Alt8I1nativ., and rejeCl10s .dd .11;.rll.ti.... for the reHOII. aet forth in kh1b1t "A" a~t.chltd hereto. D. AdoDtioft of H1.~iaaUon and KOnito"inQ' P=am. As required by Pub110 ..e_ee C!I:ld4I I8ot:lon 21081.6, t.hl.. 189i81a. 101,,1. body 1I.".by .dopU t.1l. M1t19.t1on KonUor1D9 .n4 a.portill9 j3E..~ 05-22-92 11:29 AM FROM B 0 H P08 program (-'rogram") inoo~al:..s in bhlJ:>lt "A" .tt.chad hereto. '1'h.1.8 l-vida1:1"e body heA1ly find. 1:b. P=vr.... i, de'igned t:o en.un that, during 'rlllje"1: 1alpl_t<<Uon, the C1ty ,a .ppl1.ClUl", and. any other AapollalJ:>le partiea, 1alpl_n" t:he project; (aa defined in t.he Cert:Uying a"olution) "lXIlpollen"a and <::clIIIPly with the fe..lJ:>le mUIl,Uon meuuz;ee 1dentifl.e4 111 Sxh1b11: "~" lIeretQ. B. statement of 0,,8rri4ino con.iderat:ione unneoa..ary. Att.er the adopt.lon of all f.,.ibl. mit:!lJation lIIea.u....., cartain siVniti".nt or potentially 8ignifl.oant. ad_.. en"il:ODlD8nt.al eUeat.. whioh III1gh1: ot:lwrwbe be ca..s" by t.he Project. "Ul I:Ht mit.igate<< below a level of _19nifio&JlCl.. '!!he"af=-, t.M. leg1s1at.1'" body h.".b" fWe that. 11: i_ u~aa"lr l:O 1._-, pllreuant "0 .eal:ion 15013 of the ClIQll O..1deu'n.s, a st.._nt. of ovw...lding "o...i.U1'atio... u.ntUy1.ng ~he apeo1fLo ._io, 8001al, and other ooo81del:at10ns that rendc UDaYOidabl. 8ignificant adVIR" en"ironm.nt.al .Uecots acceptable. lIot:"i"ll.tandill9 t.he fOAg01ng, this Cit." councU dotte adopt the It:ataent Clf OVerriding coll_idera- tiona cont:ain.d 11\ khlJ:>1t "A" hereto. lIO'1'lca OF DB'1'IllIIIIIA'1'I011 SBOTI011 19. The City Ilanager, or h.1.8 cln1gMe, ill hereby direot;ad, af"er p...age alld adopt1on of th.1.8 _ol..l:1on, to deU.ve" a 1I01:1ee of Determination.. to "lie project, t09t11:her w1th a copy 01 t.hi. ReaCll.."ion, its Bxh1blt aD4 all .....olutlO118 pee,ed by ue cU.y cou....ll in conn..."ion with thls Projecot, ,,It:h t:h. count:y Cl.rk of the county of San Di.go aD4, in acoordanca with Publia Resourc.s Code Seation 21152, t.o "au.. sueh not:iCle t.o be posted in t.he COUnt:)' Clerk'S ofHa.. '1'IIa Cit.y llanager ehall aecompl1eh all of t.he above Dot.ie. J:equhelllent.. wit.hln U"e (5) workin9 day. fOllow11l9 t.he pa..ag. and adoption h..,.ol. RBCOlID OF .............,1II0S 8lIC71011 20. The City Cl.rk sball certify t.o "he pas-V- and adoption of tbls _lubioD/ shall calis' tb. s_ t.o be _10'1'.4 in t.he book of 01:191.nal AsollltJ._ of t.he c:lt:Y1 shall make a aWIut.e of the p...a9' Md adopt;ion 1oh_f 111 10he r",ol'd. of t.1le pa:olln4Lng. of "hia lellialathe body in the lIl1nut.e. of tile meet:Lnll et: which t.Ile s__ .1.8 passed and acSopted. pre.anted by Appl'""ad a. to rom by lRee H. BOogU1'd Clt.y Attom.y John ,. I.ippit.t Public Wo...k. 1)1...eot.01' /J.E-7 05-22-92 11:29 AM FROM B D H P09 PASSBD, Id'PROI7IID, &D4 lIDCll'bu of Chul. vl.eta, C.1Uoml., t.hl.a . un, by tile followl.ng vote. by t:be City CouDcl.l of tile Cl.ty day of AUIlI CcNncl.1mwmben. 1<<118 I councUmlllllbtu:.. USBft. O:IWIcillllelllbU.. U8~AIlh Co\mCl.lmeInbere. ~l.m Nader, Kayolt A~S'1'. llttVerly A. Authelet:, Cl.ty Clerk STAR OP CALII'OIlKIA I COUIl'l'Y 01 UN DIlIGO I aa. CI'l'Y OJ' CIIUt.A VIS'1''' I I, .eveitly A. Aul:helet, CI.1:y Clerk of the Cl.t1' of Chula V1.u, Oa11forn1a, do halteby oert:1fy tbat the f0&'8901119 ..eolut:i.on Ro. w.. duly pa.aed, aProved, and adopted by the Cl.t1' Clounc:l.l held on the day of , lell2. hecuted. tlll.a _ day of , U92. !leverly A. Autllelet, c1I:y Cled: J3E-~ ...4i BEFORE THE CITY COUNCIL OF THE CITY OF CHULA VISTA EXHIBIT A RE: PROPOSED OTAY VALLEY ROAD WIDENING PROJECT FINDINGS OF FACT I. DESCRIPTION OF PROJECT Otay Valley Road is proposed by the City to be widened from Interstate Highway 805 (I-80S) to the eastern City boundary. This portion of Otay Valley Road is approximately 8,800 feet in length and crosses lands within the City of Chula Vista's Otay Valley Road Redevelopment Project Area. Otay Valley Road is presently two lanes for most of its length, and increases in width to three and four lanes west of Brandywine Avenue and Oleander Avenue, respectively. The proposed project is to widen Otay valley Road to a six-lane prime arterial within a 128 foot right-of-way. The roadway will have a design speed of 55 miles per hour. Project elements include a 16-foot landscaped median, six 12-foot driving lanes, two 8-foot emergency parking lanes, and 12 feet behind each shoulder curb for sidewalks, landscaping and utilities. The proposed widening is consistent with the City's General Plan and Otay Valley Road Redevelopment Plan. The proposed widening will occur in two phases. Otay Valley Road widening from I-80S to Nirvana Avenue will occur during Phase I, and is anticipated to begin in 1992. Phase II will include the remainder of the road east of Nirvana, and is anticipated to be constructed within five years of Phase I completion. Financing for the proposed project will be funded by the formation of an Assessment District. Thus, approval of the Assessment District is the fmancial method to implement the proposed project. II. ADMINISTRATIVE RECORD For purposes of CEQA and the findings set forth below, the administrative record of the City Council decision on this project shall consist of the following: 1. The Draft and Final EIR for the project; 2. All reports, memoranda, maps, letters and other planning documents prepared by the environmental consultant and the City, that are not privileged under the Public Records Act or any other relevant statutes; ".., 3. All documents submitted by members of the public, and public agencies in connection with the proposed project; 4. Minutes and verbatim transcripts of all workshops, public meetings and public hearings held by the City and Redevelopment Agency; -1- 13E'9 . :',~ /; 5. Any documentary or other evidence submitted at workshops, public meetings and public hearings; and 6. Matter of common knowledge to the City, which it considers, including but not limited to, the following: a. Chula Vista General Plan - 2010 b. Chula Vista Zoning Ordinance c. Chula Vista Otay Valley Road Redevelopment Plan d. Chula Vista Otay Valley Road Redevelopment Project Area Implemen- tation P1anIDesign Manual Addendum e. Chula Vista Threshold/Standards Policy f. Otay River Valley Redevelopment Area Sensitive Biological Resources and Wetlands Delineation (1987). Ill. TERMINOLOGY/THE PURPOSE OF FINDINGS UNDER CEQA Section 15091 of the CEQA Guidelines requires that, for each significant environmental effect identified in an ElR for a proposed project, the approving agency must issue a written finding reaching one or more of the three allowable conclusions. The first is that "[c]hanges or alterations have been required in, or incorporated into, the project which avoid or substantially ~ the significant environmental effect as identified in the final ElR." (Emphasis added.) The second potential finding is that "[s]uch changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency." The third permissible conclusion is that [s ]pecific economic, social or other considerations make infeasible the mitigation measures or project alternative identified in the final ElR. As regards the first of the three potential findings, the CEQA Guidelines do not define the difference between "avoiding" a significant environmental effect and merely "substantially lessening" such an effect. The meaning of these terms therefore must be gleaned from other contexts in which they are used. Public Resources code section 21081, on which CEQA Guidelines section 15091 is based, uses the term "mitigate" rather than "substantially lessen." The CEQA Guidelines therefore equate "mitigating" with "substantially lessening." Such an understanding of the statutory term is consistent with Public Resources Code section 21001, which declares the Legislature's policy disfavoring the approval of projects with significant environmental effects where there are feasible mitigation measures or alternatives that could "avoid or substantially lessen" such significant effects. For purposes of these findings, the term "avoid" will refer to the ability of one or more mitigation measures to reduce an otherwise significant effect to a less-than-sipificant level. In contrast, the term "substantially lessen" will refer to the ability of such measure or measures to substantially reduce the severity of a significant effect, but not to reduce effect to a level of insignificance. Although CEQA Guidelines section 15019 requires only that approving agencies specify that a particular significant effect is "avoid[ ed] QI -2- /3E-/f/ -Ii substantially lessen[ed], " these findings, for purposes of clarity, in each case will specify whether the effect in question has been fully avoided (and thus reduced to a level of insignificance) or has simply been substantially lessened (and thus remains significant). Moreover, although Section 15091, read literally, does not require findings to address environmental effects that an EIR identifies as merely "potentially significant," these findings will nevertheless fully account for all such effects identified in the Final EIR. IV. LEGAL EFFECT OF FINDINGS To the extent that these findings conclude that various proposed mitigation measures outlined in the Final EIR are feasible and have not been modified, superseded or withdrawn, the City of Chula Vista (City) hereby binds itself and any other responsible parties to implement those measures. These findings, in other words, are not merely informational or hortatory, but constitute a binding set of obligations that will come into effect when the City adopts a resolution approving the project. V. MITIGATION MONITORING PROGRAM As required by the Public Resources Code section 21081.6, the City Council of the City of Chula Vista, in adopting these findings, also adopts a mitigation monitoring and reporting program. The program is designed to ensure that, during project implementation, the City and other responsible parties comply with the feasible mitigation measures. That program is described in the document entitled, Otay Valley Road Widening Project Mitigation Monitoring and Reporting Program. VI. POTENTIAlLY SIGN1FICANT EFFECTS AND MITIGATION MEASURES The Final EIR identified a number of potentially significant environmental effects (or "impacts") that the Otay Valley Road widening would cause, all of which could be avoided through the adoption of feasible mitigation measures. These impacts are restated below, followed by page numbers in the Final EIR where the impacts are discussed. A. Geologic and soils impacts could occur from development of the roadway on the unstable river wash, stream sediments and clay loams found in the area (FEIR, p. 3-7). B. The project will result in the loss of 1.2 acres of Diegan Sage Scrub, 2.6 acres of TamarisklMulefat Scrubland, 0.2 acre of Willow Riparian Woodland, and 0.2 acre of Freshwater Marsh. Construction activities would impact 1.1 acres of Tamarisk/Mulefat Scrubland and 0.2 acre Diegan Sage Scrub (FEIR, p. 3-26 to 3-27). "-1\:, C. The road widening would conflict with the existing administration, workroom and parking facilities of the City of Chula Vista Animal Shelter (FEIR, p. 3-38). -3- /3 c..- / I ..". ...._-~, D. The proposed project will accommodate traffic volumes that are expected to occur along the widened roadway due to long term development and population growth in the region. Congestion at roadway intersections is expected, including Oleander Avenue, Brandywine Avenue, Nirvana Avenue, Maxwell Road, and at both the northbound and southbound on-ramps to 1-805 (FEIR, p. 3-48 to 3-53). E. Traffic congestion and hazards could result at the intersection of Otay Valley Road and the Nelson & Sloan Rock Plant until the full widening of Otay Valley Road occurs and the intersection with Paseo Ranchero is constructed (FBIR p. 3-52 to 3-53). F. Paleontological resources may occur in the project area and could be impacted by roadway development (FEIR, p.3-64). G. Increases in noise levels from increased traffic along the roadway are projected to exceed City guidelines for noise exposure (FEIR, p. 3-79 to 3-80). The sub-sections below restate the above-identified impacts and set forth the mitigation measures adopted to avoid the impacts. A. GEOLOGY/SOILS Potentially Significant Effect: Geologic and soils impacts could occur from development of the roadway on the unstable river wash, stream sediments and clay loams found in the area (FEIR, p. 3-7). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-8 to 3-9). 1. Unstable geology/soils materials will be removed or stabilized before roadway construction begins. Surficial layers of organic soils, debris and soft or loose deposits will be stripped from areas where fill will be placed. 2. Compressive soils will be removed and replaced with properly compacted fill. Expansive soils will be buried deep in fills and not within the roadway section. 3. All slopes will be constructed at a minimum slope of 2.0 horizontal feet to 1.0 vertical feet. Temporary chain link debris fences, with meshes of 1 to 1-1/2 inch square, will be installed with a geofabric material along the bottom 18-24 inches of the fence to control silting in sensitive wetland areas which could result from sediments in runoff. -4- 13E~/~ .... '''i, B. BIOLOGY Potentially Significant Effect: The project will result in the loss of 1.2 acres of Diegan Sage Scrub, 2.6 acres of Tamarisk/Mulefat Scrubland, 0.2 acre of Willow Riparian Woodland, and 0.2 acre of Freshwater Marsh. Construction activities would impact 1.1 acres of Tamarisk/Mulefat Scrubland and 0.2 acre Diegan Sage Scrub (FEIR, p. 3-26 to 3-27). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these [mdings (FEIR, p. 3-28). 1. Losses of wetland habitats will include Tamarisk/Mulefat Scrubland, Willow Riparian Woodland, and Freshwater Marsh totalling 3.0 acres, and will be mitigated by the creation of new wetland areas within the river valley. Any such mitigation will include extensive revegetation with willow woodland and the use of San Diego marsh-e1der to maximize value to wildlife and mitigate for the loss to this sensitive plant species. Mitigation will be at a 2: 1 acreage replacement ratio for wetlands lost. 2. The roadsides adjacent to native vegetation communities east of Nirvana Avenue will be designed in a manner that would preclude the potential for vehicle access or illegal dumping into the river bottom or onto the slopes. Incorporation of guard rails or fences would be appropriate. Use of thorny vegetation may also be used in conjunction with temporary fences. 3. The roadway slopes will be revegetated with native plant materials indigenous to the area or which complement the existing native communities, such as sage scrub or sycamore woodland species. 4. Where construction activities are to occur in or adjacent to native vegetational communities, work will be restricted to the delineated project footprint by the placement of temporary construction fences or flagging along both sides of the street. This measure is incorporated in the project description. 5. If work site brushing occurs between April 1 and September 15, the project site will be carefully examined by a qualified biologist prior to clearing. Should the site be found to support nesting birds including Least Bell's Vireo, Willow Flycatcher, or Yellow-breasted Chat, work within 300 feet of the nest site will be delayed until nesting has been completed. -5- /3 &'-/3 6. Following construction, the 20-foot wide construction corridor will be recontoured to natural or lower levels and revegetated with native vegetation favoring Willow and Mulefat Riparian Scrub with minor elements of Diegan Sage Scrub. These measures are consistent with the requirements and conditions of the u.S. Army Corps of Engineers 404 permit for this project, which are hereby incorporated by reference, and attached as Attachment "A". C. LAND USE Potentially Significant Effect: The road widening would conflict with the existing administration, workroom and parking facilities of the City of Chula Vista Animal Shelter (FEIR, p. 3-38). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-39). 1. Impacts to the City's Animal Shelter will be mitigated through the redesign of the site and relocation of parking, workroom and administration facilities to the southern part of the property. D. TRAFFIC Potentially Significant Effect: The proposed project will accommodate increased volumes which are expected to occur along the widened roadway due to long term development and population growth in the region. Congestion at roadway intersections is expected, including Oleander Avenue, Brandywine Avenue, Nirvana Avenue, Maxwell Road, and at both the northbound and southbound on-ramps to 1-805 (FEIR, p. 3-48 to 3-53). ...l! Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. '".,~, Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-53 to 3-54). 1. Signals will be installed as the City Engineer determines is appropriate in order to meet the City's Traffic Threshold Standard. -6- 13&' 11 -4 A-"~l 2. Maxwell Road will be restriped to provide a southbound left turn-lane at its intersection with Otay Valley Road. 3. As required in the Mitigation Monitoring Program, traffic conditions will be monitored by the City's Traffic Engineer to implement improvements at the appropriate time. Potentially Significant Effect: Traffic congestion and hazards could result at the intersection of Otay Valley Road and the Nelson & Sloan Rock Plant until the full widening of Otay Valley Road occurs and the intersection with Paseo Ranchero is constructed (FElR p. 3-52 to 3-53). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final ElR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FElR, p. 3-54). 1. As an interim measure, roadway improvements at this intersection shall be completed as part of Phase I. E. PALEONTOLOGY Potentially Significant Effect: Paleontological resources may occur in the project area and could be impacted by roadway development (FElR, p.3-64). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final ElR. Mitigation Measure: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FElR, p. 3-65). 1. A qualified paleontologist will be at the pre-grade meeting to consult with the grading and excavation contractors. 2. A paleontology monitor will be on site at all times during the cutting of previously undisturbed sediments through and immediately adjacent to the Mission Valley formation to inspect cuts for contained fossils. In the event that well-preserved fossils are discovered, the paleontological monitor will be allowed to temporarily direct, divert or halt grading to allow recovery of fossil remains in a timely fashion. Any fossil remains collected will be cataloged and deposited (with landowner's permission) at the San Diego Natural History Museum. -7- I::1E-/5 ~ F. NOISE Potentially Significant Effect: Increases in noise levels from increased traffic along the roadway (stated to occur with or without the project) are projected to exceed City guidelines for noise exposure (FEIR, p. 3-79 to 3-80). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measure: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-81). 1. A perimeter masonry wall, six feet high, will be installed at the back lot line of some residences backing up to Otay Valley Road. The wall will be at the top of the slope, to utilize slope height to increase the line of sight break between traffic and rear yard receiver locations. (It should be noted that a large percentage of the noise at the west end of the project area comes from 1-805.) G. CUMULATIVE EFFECTS The Cumulative Impacts analysis was based on the list of proposed and planned projects in the area, shown on Table 2.4-1 in the FEIR, and also on the Cumulative Impacts analysis contained in the General Plan Update FEIR (since the project is shown in the General Plan). In summary, cumulative impacts would occur in the issue areas of flooding downstream, biological resources, agricultural lands, traffic circulation, and noise. With the exception of agricultura1lands, the project's contribution to cumulative impacts have been mitigated to a level below significance either through project mitigation measures, or through adherence to standard City engineering and building requirements. Regarding agricultural lands, the FEIR states that the project area is not primarily agriculturally oriented, with prevailing uses being residential and light industrial, and that loss of this acreage (3.9 acres) to the roadway does not create a project significant impact. VIl. INFEASffiILITY OF ALTERNATIVES ALTERNATIVE -Ii The proposed project will not result in significant adverse impacts if all recommended mitigation measures are implemented. Because the project's impacts have been mitigated below a level of significance an analysis of the alternatives is not technically required. However, the decisionmakers, after reviewing the EIR and in approving the project specifically reject the No Project Alternative and the other alternatives for the following reasons: l' No PrQject Alternative The No Project Alternative consists of no action taken by the City of Chula Vista to construct or implement the proposed project or either of the project alternatives. This alternative would discourage future infill industrial growth along Otay Valley Road and inhibit economic growth in the Otay Valley Road Redevelopment Area. This is contrary to the goals of the Chula Vista Redevelopment Agency as set forth in the Otay Valley Road Redevelopment Plan. The plan specifically calls for the correction of problems relative to circulation, infrastructure, and public utility inadequacies. The No Action Alternative would also be inconsistent with the City of Chula Vista's Draft General Plan Circulation Element roadway designation for Otay Valley Road, which calls for a six lane prime arterial and major street standards for Otay Valley Road. In addition, if this alternative is selected, the lack of capacity and low level of service on Otay Valley Road could constrain future developments north, south, and east of the project. Future development proposals that would contribute traffic to Otay Valley Road, or require the extension of utility services along the roadway, would be affected most. Locational Alternative 1 Locational Alternative 1 is the same as the project with the exception that the six lane roadway would be reduced to a four lane roadway east of Nirvana. The right-of-way would thus be decreased from 128 feet to either 100 feet or 84 feet (depending on design). The environmental consequences of constructing Locational Alternative 1 would be identical or very similar to the proposed project with respect to geology and soils, landform, land use, agriculture, aesthetics, cultural and paleontological resources, and park, recreation and open space. The differences in environmental impacts between Locational Alternative 1 and the proposed project are primarily to biological resources and to traffic conditions. BiolOl~Y <<;, This alternative reduces the right-of-way from 128 feet to 100 feet east of Nirvana Avenue while retaining the same general road alignment as the proposed project. Impacts of this alternative would generally parallel those of the proposed project with only a slight reduction in magnitude. Loss of wetlands would total approximately 1.23 acres with proportionally fewer San Diego Marsh-Elder impacted. Loss of habitat for riparian bird species would still be considered significant. Reducing the right-of-way to 84 feet would lower the wetland impacts to 0.60 acre, still resulting in significant adverse wetlands impacts. Under either the proposed project or the reduced widths of the Locational Alternative 1, wetland impacts and impacts to the sensitive San Diego Marsh-Elder are considered significant but mitigable through creation of replace- ment wetland habitats including the heavy utilization of marsh elder in the plantings. -9- I:1E-/7 -4 Traffic The City's recommended maximum traffic volume for a four lane major street is 30,000 VPD. The General Plan forecast volume at build-out is 26,000 VPD east of Nirvana Avenue, thus the alternative of a four lane classification would seemingly be adequate. Such a classification would require an amendment of the General Plan Circulation Element. However, the roadway was not designed to be four lanes in this location because of traffic circulation considerations. This segment of roadway is located between Paseo Ranchero, which is planned as a six lane facility, and the rest of Otay Valley Road to the west, which also requires six lanes. The volumes of traffic entering the Otay Valley RoadlPaseo Ranchero intersection are projected to be 76,000 ADT. Thus, the six lane width along this segment of Otay Valley Road is necessary in order to provide sufficient capacity entering and exiting the intersection. Also, a short four lane segment of road between six lane roads on either side could create congestion and hazardous conditions. Locational Alternative 2 The environmental consequences of constructing Locational Alternative 2 would be the same as the proposed project and Locational Alternative 1 with respect to land use, agriculture, and parks, recreation and open space. Environmental impact differences between Locational Alternative 2 and the proposed project are identified for traffic conditions, biological resources, cultural resources, geology and soils, and landform and aesthetics, as well as traffic. Impacts to transportation are the same for Locational Alternative 2 as described above for Locational Alternative 1. Overall, impacts on the remaining natural, cultural, and scenic resources would be greater from Locational Alternative 2 than from the proposed project. Biolo~y Under this alternative all direct adverse impacts to the wetland habitats would be eliminated. Due to the extensive slope cutting required, however, an extensive loss of quality Diegan Sage Scrub habitat and a wide array of sensitive plans and animals occurring on these hillsides would be severely impacted by this proposed alternative. The biological impacts of this loss would be significant. ~'~'l The only known large population of Greene's Ground Cherry would be lost. Such a loss is considered unmitigable. Also eliminated would be the dense stands of Coast Cholla and the Fishhook Cactus population. The latter occurs in densities seldom seen in San Diego County; moreover, the average size of specimens far surpasses other known substantial populations. Also heavily impacted would be the State-listed endangered Otay Tarwee population, along with significant colonies of Coast Barrel Cactus and Cleveland's Golden Stars. One pair of California Gnatcatchers would probably be lost from the slopes under this alternative. The Orange-throated Whiptail population would also be impacted. The Diegan Sage Scrub slopes which would be impacted are considered excellent gnatcatcher habitat. -10- J3E-/K"" './! ''t, Cultural Resources Locational Alternative 2 would impact all of the cultural resource sites that will be affected by the proposed project, and would additionally impact another potentially significant site. Thus, Locational Alternative 2 is less preferred for cultural resources than the proposed project. Geology and Soils Locational Alternative 2 would require cutting into the steep hillsides located in the northeastern section of the project area. Soil conditions in this area consist of terrace escarpments and are' considered to be unstable due to the presence of cobble strata. Consequently, greater maximum slope ratios could be required (e.g., 4:1) thereby increasing even further the amount of land disturbed. In addition, retaining walls, with a maximum height of 20 feet, would most likely be required as mitigation. In summary, Locational Alternative 2 is less preferred than the proposed project with respect to geotechnical and soils constraints. Landform/Aesthetics Locational Alternative 2 would also result in significant landform impacts. This Alternative would result in major landform alteration due to the amount of cutting that would be required to achieve 2: 1 or 4: 1 slope ratios. Cut slopes would be required north of the roadway for approximately one-half mile in the northeastern part of the project area. Maximum height of cut slopes would be approximately 65 feet. Landform modifications in this area would have significantly adverse impacts on landscape aesthetics since this Alternative would result in strong visual contrasts with the current natural hillsides and vegetation cover. Consequently, Locational Alternative 2 is less preferable than the proposed project with respect to landform and aesthetics. -11- J 3E'/1 STATEMENT OF OVERRIDING CONSIDERATIONS Pursuant to CEQA Guidelines Section 15093, the Chula Vista City Council in approving the Assessment District which implements the roadway which is the subject of the FEIR, having considered the information contained in the FEIR, and having reviewed the public testimony and record, makes the following Statement of Overriding Considerations in support of the Findings and the action of the City Council approving the Assessment District. All of the identified potentially significant project impacts have been mitigated to a level less than significant, as set forth in the Findings. The project also contributes to cumulative impacts. However, as set forth on page 8, these impacts were deemed to be less than significant. The City Council finds and concludes that the public benefits of the roadway project would outweigh any significant and/or cumulative impacts. The City Council has reviewed and considered all of the alternatives described in the Final EIR. The project selected by the Council was chosen for two major reasons: . It is consistent with the General Plan. . It accommodates projected buildout traffic. The alternatives were rejected by the Council: . No Proiect Alternative -- because of inconsistency with the General Plan, lack of roadway capacity for projected traffic volumes, and low level of service that would result. . Locational Alternative No. I -- because of inconsistency with the General Plan, lack of roadway capacity necessary to handle future volumes of traffic utilizing the Otay Valley Road/Paseo Ranchero intersection, poor traffic design, and because this alternative does not reduce any impacts to a level below significant. . Locational Alternative No.2 -- because of equal or greater environmental impacts associated with this slightly different alignment. The decision makers find that the following factors support the approval- of the Assessment District which implements the project, and therefore, sets forth and adopts the following Statement of Overriding Considerations: -4i -"\, 1. The roadway project is consistent with, and thus will fulfill attainment of the General Plan designation as six lane prime arterial and major street, and the Redevelopment Plan goal which' calls for the "development of a more efficient and effective circulation corridor free from hazardous vehicular, pedestrian, and bicycle interfaces." 2. As set forth in the findings, mitigation measures have been incorporated into the Project or made binding on the applicant through the adoption of the Findings, which reduce impacts below a level of significance. -12- /3E-:<.o -Ii 3. Approval of the Assessment District which implements the Project will result in the following benefits: . Restoration of approximately 6 acres of wetland within the Otay River flood way (twice the impacted amount). . Construction of needed roadway improvements commensurate with General Plan requirements to serve existing and anticipated development in the area. . Construction job opportunities in an economy which is currently suffering from such opportunities. . Construction of the roadway will permit, support, and help promote the further industrial development of the Otay Valley area which includes over 200 acres of undeveloped land zoned for light industrial land use. This will provide numerous job opportunities in construction, business, and industry. . Construction of the roadway will improve the public safety and aesthetics in the area. The current facility is inadequate to support current and anticipated volumes of traffic, and for most of its length does not include curb, gutters, or sidewalks, has poor road surface conditions, and is visually cluttered with overhead utility lines. '<i, -13- J;JE',)./ 'OTAY VALLEY ROAD WIDENING PROJECT MITIGATION MONITORING PROGRAM Monitoring Pro~m Description and Puqx>se Public Resources Code ~ 21081.6 requires a lead or responsible agency that approves a project where an Environmental Impact Report (EIR) has identified significant environmental effects, to adopt a "reporting or monitoring program for adopted or required changes to mitigate or avoid significant environmental effects. " The City of Chula Vista is the lead agency for the Otay Valley Road Widening Project. A Draft and Final EIR was prepared for this project which addressed potential environmental impacts and, where appropriate, recommended measures to reduce substantially or avoid the impacts. A Mitigation Monitoring Program is required to ensure that the adopted measures are implemented. The City of Chu1a Vista will adopt this Mitigation Monitoring Program (MMP) after considering the Final EIR. Roles and Resoonsibilities The MMP for the proposed project will be in place through both phases of the project, including final design, pre-grading, construction and operation. The City of Chula Vista has the primary enforcement role for the implementation of mitigation measures. The City's Environmental Review Coordinator (ERC) will provide final approval for the completion of the implementation of measures. The ERC will appoint a Mitigation Compliance Coordinator (MCC) who will be responsible for the actual monitoring of the implementation of measures. The MCC will interface with the ERC, the City Engineer, the City Landscape Architect, the Construction Supervisor, and the Biological Monitor, all who have some responsibility for the implementation of measures. Mitigation Monitoring Procedures The MMP consists of Mitigation Monitoring Program Procedures, filing requirements, and reporting and compliance verification. These procedures are outlined below. .. Mitigation Monitoring Program Procedures: Table 1 identifies the procedures of the MMP. For each mitigation measure, it states the monitoring activity, the timing of implementation of the measure, and who is responsible for verifying that the measure has been implemented and for "1, final approval. Mitigation Monitoring Program Files: Files shall be established to document and retain the records of the MMP. The files shall be established, organized, and retained by the City of Chula Vista Planning Department. Reporting and Compliance Verification: The City's Mitigation Monitoring Report Forms are designed to record the monitoring activity in a consistent manner with appropriate approvals. -14- /JE-.2~ ...,. The forms will be completed and signed by the individuals responsible for the monitoring and approval of the measures. These forms will be placed in the MMP fIles. Program Operations The following steps shall be followed for implementation, monitoring, and verification of each mitigation measure: 1. The City of Chula Vista, Environmental Review Coordinator (ERe), shall designate a Mitigation Compliance Coordinator, who will be responsible for monitoring the implementation of the mitigation measures. 2. The ERC shall provide to the MCC, the Mitigation Monitoring Report Forms; a copy of Table 1; and other pertinent information. 3. The MCC shall coordinate the implementation of the mitigation measures and shall complete a Form for each activity, and forward the report to the ERC for final approval. 4. All completed forms shall then be placed in the MMP fIles. Mitigation measures shall be implemented as specified by the Mitigation Monitoring Program Summary. During any project phase, unanticipated circumstances may arise requiring the refinement or addition of mitigation measures. The ERC, with advise from staff, is responsible for recommending changes to the mitigation measures, if needed. If mitigation measures are refmed, the ERC would complete a Mitigation Monitoring Report Form documenting the change, and shall notify the appropriate design, construction, or operations personnel about refined requirements. [C:IWP5110VROADIFINDINGS.TlIT] ...."~, -15- /:tE "~3 'j ~J ,. ~! ~i!! 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I.~s]]:::s 13E-'; ? ... i l' ~I ~~ ~~ ~~ i ~~ =~ ~~ o>z ~~ lS~ i .II .II ffi ffi f f 1 . 1 . i1 i1 .Ill .Ill ~t ~t .J ,S f I II ~'I 11 -,I !3 'f}~ Ht! n'la] g il ,B ~.~ 1 11,i~ ~ih ~t~i ~JtJ ~ ..ts 11'.11-1 i,it 1]~1 lit:! 10 .;~ -, J II \J~!j i'SllJ IJ~, '~ ,l .Ill ! <llh II 'I i J 'fJt 1;1 I'! .J a 11 ] F.i ,~ '~ ~ !3JI ~r .lit IHfl Ul ~!~1 ]~J '~r~l f1~ I. il U~h l,a.::II III 1:11] ft!J ].111 I~ It I h i i H!l i 1 ~ " J1ih. Ij~! 'iii a]I, j~.Jjl] -11J ~ii t JJ)j !gllll! l[lJ "fl ~ ;:lu !~' U a ~l ~J :' ~ /3E-c2W' '" l , ~I Il!Il! ~~ ~~ :;! !l" a ~~ 5~ ~~ ;>'~ ~e:: l::~ i lP'J }.1l~ ~ ~jl!~ s ..j ~ ~ Ul~i U~ll 1 .n -J j HH~ - Jp41 ! !HH ~ oi ~ ~ i ~ i Q 13E~;l '" ~ " , ATTACHMENT "A" RF(Fl\!l::"n MAR 6 1992 DEPARTMENT OF THE ARMY LOS ANGELES DISTRICT. CORPS OF ENGINEERS March 5, 1992 REPLY TU A,TlfNT<ONOI Office of the Chief Regulatory Branch city of Chula vista c/o Pacific Southwest Biological Services Attn: Keith Merkel P.O. Box 985 National city, California 91951-0985 Gentlemen; Reference is made to your request dated January 9, 1992 to amend Permit No. 90-147-EW which authorized you to widen Otay Valley Road from Interstate 805 to the eastern boundary of the city of Chula Vista, San Diego County, California. Under the provisions of 33 Code of Federal Regulation 325.6(d), the start date is to remain the same and the completion date is extended from January 13, 1992 to January 13, 1993. The terms and conditions of Permit No. 90-147-EW, except as changed herein, remain in full force and effect. Please note that a copy of this letter is being forwarded to those agencies on the enclosed list. Sincerely, ;::...---=-- John Winn Acting Chief, Regulatory Branch Enclosure -It .''i., J.3E- .30 ~ copies Forwarded: u.s. Environmental Protection Agency ATTN: Clyde Morris, Wetlands and Dredged Material section (W-7-2) 75 Hawthorne Street San Francisco, California 94105 u.s. Fish and wildlife Service ATTN: Nancy Gilbert, 24000 Avila Road Laguna Niguel, California 92656 California Department of Fish and Game ATTN: Environmental services Supervisor, 330 Golden Shore, suite 50 Long Beach, California 90802 ~ 13E-3/ MAR 31 '9c 11:4BAM PACIFIC SOUTHWEST BIOLOGICAL P.2/B DEPARTMENT OF THE ARMY 1.0S ANonn OlnflllCT. co,,'. Of fNGrN!:ER6 flEP\."'O ATTENTION Dr March 21, 1990 Office of the Chief Regulatory Branch City of Chula Vista c/o Pacific Southwest Biological Services Attention: Keith Merkel P.O. Box 985 National City, CA 92050 File No. 90-147-RH Gentlemen: This is 1n reply to your application and/or letter dated February 12, 1990 for Department of the Army authorization to ~iden Otay Valley Road from Interstate 805 to the eastern boundary of the City of Chula Vista. This will result in impacts to 4.1 acres of existing wetlands in the Otay River on the eastern edge of Chula Vista, San Diego Co. Regu1a~ions for our permit program, PUbliShed in the Federal Register, include Part 330 - Nationwide Permits (see the enclosure). The Corps of Engineers has determined that your proposed activity is covered under the nationwide permit for diSCharges of dredged or fIll material into non-tidal rivers, streams and theIr lakes and impoundments. including adjacent wetlands, that are located above the headwaters. which would cause the loss or substantial adverse modification of between one and 10 acres of such waters, and where the Division Envineer determines that an individual permit is not required. (Section 330.5 (a)(26)(i)). ...., As long as you comply with conditions on the attached sheet and the, nationwide permit conditions (Section 330.5 (b)). an individual permit is not required. This Nationwide Permit verification is valid until the nationwide permit is modified. reissued. or revoked. All nationwide permits are scheduled to be modified. reissued or revoked prior to January 13, 1992. It is incumbent upon the permittee to remain informed of any changes to Notionwide Permits. We will Issue a public notice announcing the changes when they occur. Furthermore. if you commence or arB under contract to commence this activity before the date the Nationwide Permit is modified or revoked. you will have twelve months from the date of the modification or revocation to complete the actiVity under the present terms and condItions of this nationwide permit. This letter does not convey any property rights, either 1n rea' estate or material. or any exclusive privileges. Also. it does not authorize any injury to property'or invasion of rights or any infringement of Federal, State. or 'ocal laws or regulations. nor does it obviate the requirement to obtain State or local assent required by law for the activity. -I! /;IE... 3.2.. ,. -It MAR 31 '92 11:49RM PACIFIC SOUTHWEST BIOLOGICAL ,.- P.3/B -2- If you have any questions please call Liz Varnhagen. Regulatory Branch. at (213) 894-5606 any workday. Please refer to the file' number 90~147-RH in any future correspondences. . ~~D~ p.l>iR.. . Richard Harlacher Chief. Southern Section '. Enclosure "'\, 13E ... .:3.J ..... MAR 31 '92 11:49AM PACIFIC SOUTHWEST BIOLOGICAL P.4/B B~ECIAL CONDITIONS FOR PERMIT NOHBER 90-147-RH 1. The permittee shall implement in full all portions of the otay Valley Road Widening Restoration Plan (pacific: Southwest Biological services, dated February 8, 1990). 2. The permittee shall conduct fooused and repeated surveys for least Bell's vireos prior to commencement of any oonstruction work during the period 1 April through 15 September and that all construotion activities shall be kept at a minimum distanoe of 300 feet rrom any active nests and at no time will the noise levels from construction he allowed to exceed 60 dB(A) at any nest site. 3. The permittee shall submit annual reports in December, documenting results of the monitoring and the prescribed remedial maintenance to he preformed to the Corps of Engineers, U.s. Fish and Wildlife Service, and the california Department of Fish and Game for review, comment, and general information. A minimum o~ 80 percent succassrul establishment of the planted riparian vegetation shall be attained by the end or the first 12 month period. Following that, the plantings shall be allowed to grcw to create II. dense canopy, and thinned as needed to maintain dense, healthy growth as outlined in the Milestones and Corrective Maintenance section of the applicant's Restoration Plan. All this shall be reflected in the rinal monitoring progress report. If this success is not achieved, then the monitoring and maintenanoe period will be extended further, after review and recommendations are submitted to the applicant through the Corps from the resource agencies. 4. The permittee shall provide to the Corps, FWS, CDFG, and EPA copies of the executed easements over the. mitigation site upon submittal ot the initial monitoring report as required by the mitigation plen. 5. The mitigation site will be excavated and planted concurrent or preceding the construction of roadway sections which will imp<:lct existing wetlands. 6 . The permittee shall implement protective devices to substantially preclude public vehicle access to the river.bottom and roadside dumping into the wetlands of the Otay River from otay valley Road. --~" 7 . Roadway slopes and right-of-ways shall be replanted using appropriate native vegetation including Rge scrub and riparian ecotone elements as specified in the project landscape plans. a. Prior to commencement of construction, a set of bonds shall be posted by the permittee with the Corps in order to ensure the complete implementation of all required mitiqation. These bonds will be in the amount of $484,000. Portions of the bonds ~y be released incrementally by the Corps and at the discretion of the Corps following initial implementation, as described in the m1ti9ati~n plen document. );J.E .3f -It MAR 31 '92 11;50AM PACIFIC 50UTHWEST BIOLOGICAL P.5/B FAC'l' SKEET ~. co~y or Pre-Discharqe Notifioation US ARMY coRPS ENGINEERS LOS ANGELES DISTR!CT--SPLCO-R DISTRICT CONTACT: R-t Ci:J a a J!: d t..i2.. tIar-lael'ler \JA;('il-Wii;, P.O. BOX 2711 LOS ANGELES, CA 90053-2325 *******.*...*****...********....******..************************* *******************************. DATE 1U!lCEIVED BT DISTRICT: February 23, 1990 BXPIaATXON OATH (received date + 20 days): March 15, 1990 DAD COHKlltfr8 DUE; March 10, 1990 ***************************************************************** ******************************** AGI!llllCY: California Department of Fish and Game U.S. Environmental Protection Agency U.s. Fish and Wildlife service In accordance with revised regulations pUblished at 33 CFR 330.7 on 13 November 1986, the following information regarding a proposed discharge under the nationwide permit at 33 CFR 330.5(a) (26) is forwarded to you. It you have any views as to whether an individual permit should be. required for the proposed work you should forward those views to the District Engineer. If a response is not received from you by March 12, 1990 the perlnittee may be advised to commence work. under the existing nationwide permit. PLEASE REFER TO CASE NUMBER PDN 90-147-RH IN YOUR RESPONSE. ***************************************************.************* ******************************** Al1PLl:C1INT mIKE: city of Chula vista 276 Fourth Ave Chula Vista, CA 92010 Attn: Robin Putnam (619)691-5120 ->"tl Pacific southwest Biological Services, Inc. ATTENTIONl Keith W. Merkel P.O. BoX 985 National city, cA 92050 (619)477-5333 AGEN'l' mlKEl PREOSCHG.PF J:;?E"'3.>' -Ii MRR 31 '92 11:51RM PRCIFIC SOUTHWEST BIOLOGICRL P.6/8 WATERWAY NAME: otay River LOCAT:ION: Eastern edge of the city of Chula vista adjacent to county of san Diego. The project extends from Interstate B05 east to the city boundary along the current alignment or otay Valley Road north of the Otay River. county: USGS Quadrangle: Section: TOWnship: Range: San Diego 7.5' Imperial Beach, CA 24 18 south 1 west PROJECT DESCRIP'l':ION: The City of Chula vista is proposing to widEln otay valley Road from Inter51tate 805 to the eastern city boundary. Th.. roadway lies within the otay River valley adjacent to urbanizEld and agricultural lands on the western extreme and steep native sage scrub slopes to the north and uplands as well as wetland of various quality to the south on the eastern end of the roadway. The road widening would extend for a distance of approximately 8800 feet and the road would be widened to a 6 lane prime arterial within a 128 foot right-of- way. The roadway would generlllly expand the width of the existinS OtllY valley Road and associated slopes by approximately 80 feet. AREA OF WATERS (lneluding vetlandD) eVDJECT TO ~oee AND/OR SUDaT~XAL ~RSE MODIFICATION AS A RESULT OF PROPOSED WORK: The proposed project would result in the loss of 2.6 acres of tll.Ulri15k/mulefat shrubland oharacterized by a predominance of Tamarix chinensis and Baccharis salicifclia. Scattered clusters of willows (Balix 18siole~is and S. qooddinqii) and an abundance of San Diego marsh elder (Iva havesiana) and desert f:ragrllnce (Hvmenoclea monoavra) are also indicative of this habitat. A total of 0.2 acres of willow riparilln woodland characterized by individually mappable clusters of willows (Salix spp.) would also be impacted along with 0.2 acres of freshwater marsh represented by southwestern spiny rush (JunrnIs arnItU!!!l), sort-flag cattail (TVnha ] atifolia) and scattered stands ot california bulrush (scirDUS ealifornieus). In addition to these losses, the project would lead to short-term construction impacts to within a 20 foot Wide corridor at the base of the roadway slope. This lIrea totllls 1.1 acres of tamarisk/mulefat sbrUbland. ""'1, ~DXTIOHAL INFORHATXON: TO compensate for project impacts, the applicant has proposad II. mitiqll.tion plan whioh would oreate 5.8 acres of new wetlands within a single ~1ock of land located in a filled portion of the otllY River. This progre.1ll would include the removal of fill material, reoontouring and reveqeb.tion of the site and proteotion P~eoSCHij.PF IJE"'J(, .... 11AR 31 '92' 11: S2'AM PACIFIC SOUTHWEST BIOLOGICAL P.7/B of the site through restrictions under a california Conservation Easement for the protection of biological resources. Xn addition, the project applicant is proposing to restore through recontouring and revegetation, the wetlands impacted due to short-term construction activities. Roadway slopes will be replanted with appropriate native vegetation. This detailed plan is attached for review and comment. The otay River valley in the proximity of the proposed project area supports nesting Least BellIs Vireos. The location of these birds and 15 discussed in the attached biological survey and analysis conducted for the project. The nearest nest location is approximately 300 feet from the proposed right-ot-way. The project applicant has provided noise data indicating that the noise levels at the nest sites Which would be generated under the proposed project will be below the 60-80 dB (A) impact thresholds cited utilized in the Comprehensive species Management Plan developed for the vireo (Recon 1988). The noise models utilized for the project predict that the 60 dB(A) lower threshold will be attained at a distance of approximately 100 feet from the nesting habitat under future traffic predictions tor the year 2006 (attaChed document). Further, the applicant has incorporated constraints in construction such that the. projeot area will be reviewed by a qualified biologist prior to conduoting grading activities and all construction work will be kept a minimum of 300 feet. from any active nests during the nesting period of 1 April through IS September. Should specific construction activities require a greater set-back than 300 feet to maintain a noise level below 60 dB(A) at any nest aite, these will be incorporated into the construction constraints. The applicant has proposed the following conditions to the issuance of a Nationwide Permit pursuant to 33 eFR 330.5(a)(26): '<,~, 1. That the permittee shall implement in full all portions of the Otay valley Road Widening Restoration Plan (Pacific Southwest Biologioal Services, dated February 8, 1990). 2. That the permittee shall oonduct a focusted survey for least Bell's vireos prior to commencement of any construction work during the period 1 April through 15 september and that all oonstruction aotivities shall be kept at a minimum distance of 300 feet from any active nests and at no time will the noise levels from constrUction be allowed to exceed 60 dB(A) at any nest site. 3. That the perJllittee shall provide to the Corps, F14S, CDFG, and EPA copies of the executed easements over the mitigation site upon sublllittal of the initial monitoring report as required by the mitigation plan. PREDS~"G.PF J:JE-3,/ " .../A . MAR 31 '92 11:52AM PACIFrt SOUTHWEST BIOLOGIC~ P.B/B 4. That the m.l.tigation site will be excavated and planted concurrent or preceding the construction of roadway sections which will impact existing wetlands. 5. That the permittee implel1lent proteotive davices to substantially preclude public vehicle access to the rivar bottom and roadside dumping into the wetlemds of the otay River from Otay Valley Road. . 6. That roadway slopes and r.l.ght-of-ways be replanted using appropriate native vegetation inclUding sage ~crub and riparian ecotone el~ents as specified in the project landscape plans. 2. Resouree Agency CommentS: only the O.S. Fish and wildlife Servioe commented on the PDN. They said that they had reviewed the mitigation plan and do not agree that the plan offsets all project induced adverse environmental impacts. They requested the opportunity to help ensure that project-related impacts to the wetlands are avoided, minimized, and/or compensated for through review of an individual permit apPlication. 3. Bao5..s for Not ReqUiring an Individual permit: Comments concerning the proposed project were requested from the California Department of FiSh and Game, U.S. Environmental Protection Agency, and the U.S. Fish and wildlife Service. The District Regulatory Branch believes that, based on the information provided, the proposed activity would not ,have llIore than a minimal adverse environmental effect on the aquatic environment either separatelY or cumulativelY. A telephone conversation with FiSh and Wildlife service staff revealed that their specifio outstanding concerns were with potential secondary project impacts to sensitive upland areas and the need tor a bUffer zone around the construction corridor. The applicant had previously explored ways in which to resolve these issues, and states that there is no practicable solution. With regard to impacts to the wetlands, the Corps blalieves that these have been addressed satisfactorily. Therefore, in accordance with the regulations (33 CFR 330.7(d)) the proposed work may be authorized by nationwide permit. If no response is received by Karcb 15, 1990, the District Regulatory Branch will assume that Division concurs with our recommendation and wi"!"l proceed accordingly. ' 4. aecommon4ed ~peoial conditions: Same as above. <"'.., vJ:,-t-e- d11e~ I~ 'fUN/I1:-! /1CMll/ / caARLES M. HOlll' Chief, Regulatory Branon PR~QSCKQ.Pf I:JE-.3Y RESOLUTION NO. I' #'1.3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONFIRHING THE ASSESSMENT, ORDERING THE IMPROVEMENTS MADE, TOGETHER WITH APPURTENANCES, APPROVING THE ENGINEER'S "REPORT", MAKING CEQA FINDINGS, AND ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS AND A MITIGATION MONITORING PLAN REGARDING ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has previously adopted its Resolution of Intention and initiated proceedings for the installation of certain public works of improvement, together with appurtenances and appurtenant work, including acquisition where appropriate, in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 90-2 (OTAY VALLEY ROAD) (hereinafter referred to as the "Assessment District"); and, WHEREAS, pursuant to the provisions of said "Municipal Improve- ment Act of 1913" and Part 7.5 of Division 4 of the Streets and Highways Code, the "special Assessment, Limitation and Majority Protest Act of 1931", a combined "Report" (hereinafter referred to as the "Report"), as authorized, has been provided, presented, considered and approved by this legislative body; and, WHEREAS, said "Report", as preliminarily approved, contained all the matters and items called for. by law and as pursuant to the provisions of the "Municipal Improvement Act of 1913" and Section 2961 of said Streets and Highways Code of the State of California, including the following: 1. Plans and specifications of the proposed improvements; 2. Estimate of cost; 3. Diagram of Assessment District; 4. An assessment according to benefits; 5. A description of the works of improvement; 6. Valuation information; and, WHEREAS, all protests have been heard and considered, and a full hearing has been given, all in the manner provided by law; and, WHEREAS, notices of said hearing were duly and regularly posted, mailed and published in the time, form and manner required by law and as evidenced by affidavits on file with the transcript of these proceedings; and, WHEREAS, the owners of one-half (1/2) of the area assessed for the cost of the project did not file written protests against the said proposed improvements and acquisition where appropriate, and this legislative body did, after providing a full hearing, overrule and deny all protests and objections; and, 13(:-/ WHEREAS, the legislative providing a contribution to pay a of the work and proceedings; and, body is desirous at this time of portion of the costs and expenses WHEREAS, this legislative body is now satisfied with the assess- ment and all matters contained in the "Report" as now updated and submitted; and, WHEREAS, this legislative body did, by the adoption of Resolution No. 16599 ("Certifying Resolution"), certify that the final Environmental Impact Report, as defined therein ("FEIR") I was prepared in accordance with the requirements of the California Environmental Quality Act, and the guidelines lawfully promulgated thereunder; and, WHEREAS, the recitals and resolutions of the City Council contained in the Certifying Resolution are incorporated herein as if set forth in full hereat. NOW, THEREFORE, BE IT RESOLVED: RECITALS SECTION 1. That the above recitals are all true and correct. PROTESTS SECTION 2. That all protests and objections of every kind and nature be, and the same hereby are, overruled and denied, and it is further determined that said protests and objections are made by the owners of less than one-half of the area of property to be assessed for said improvements within said Ass~ssment District. BENEFITS RECEIVED SECTION 3. That it is hereby determined that all properties within the boundaries of the Assessment District receive a local and direct benefit from the works of improvement as proposed for said Assessment District, and it is hereby further determined and declared that all assessable costs and expenses have been appor- tioned and spread over the properties within the boundaries of the Assessment District in direct proportion to the benefits received thereby. PUBLIC INTEREST AND CONVENIENCE SECTION 4. That the public interest and convenience require the proposed improvements to be made, and therefore it is hereby ordered that the work to be done and improvements to be made, together with appurtenances and appurtenant. work in connectior: there- wi th, including acquisition where appropriate, in said Assessment District, as set forth in the Resolution of Intention previously adopted and as set forth in the "Report" presented and considered, and as now submitted. /3& - 2- ENGINEER'S "REPORT" SECTION 5. submitted, updated and said "Report II proceedings for this That the "Report" of the Engineer, as now and amended as appropriate, is hereby approved shall stand as the "Report" for all future Assessment District. CONFIRMATION OF ASSESSMENT SECTION 6. That the assessments, as now filed in the Engineer's "Report", and diagram for the improvements, together with appurtenances and appurtenant work in connection therewith, including acquisition where appropriate, are hereby confirmed. The assessments contained in the f ioa1 Engineer's "Report" are hereby levied and approved as follows: A. The final assessments to represent the costs and expenses to finance the public works of improvement, as autho- rized for these proceedings. B. The annual assessment to pay for administrative costs in an amount not to exceed the maximum annual assessment as set forth in said "Report". The confirmed annual administrative assessment may be collected in the same manner and in the same installments as the confirmed assessments for the facilities, and may be combined with those assessments for collection as convenient. CONTRIBUTION SECTION 7. That the appropriation of the monies as set forth as a contribution in the Engineer's "Report" as herein presented relating to this Assessment District is hereby approved and autho- rized. said contribution is authorized pursuant to Section 10205 of the "Municipal Improvement Act of 1913", being Division 12 of the streets and Highways Code of the State of California. ASSESSMENT VALUATION SECTION 8. That this legislative body hereby finds and deter- mines that the total amount of the principal sum of all unpaid special assessments proposed to be levied, as well as any outstand- ing special assessments, does not exceed 1/2 the total true value of the parcels proposed to be assessed under these proceedings, and this finding shall be final and conclusive. This legislative body further finds that the project is feasible and that the lands to be assessed will be able to carry the burden of the proposed assessment, and it is hereby further determined, if and as applicable, that the limitations of the amounts of assessments provided for in Division 4 of the streets /3e -.1 and Highways Code of the State of California be disregarded both with respect to the limitation on the Assessment District as a whole, and as to the limitation on individual specific assessments, as applicable. RECORDATION OF ASSESSMENT SECTION 9. That the City Clerk shall forthwith deliver to the Superintendent of Streets the said assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with her certificate of such confirmation attached and the date thereof; and that said Superintendent of Streets shall then immediately record said diagram and assessment in his Office in a suitable book to be kept for that purpose and attach thereto his certificate of the date of such recording. COUNTY RECORDER NOTICE SECTION 10. Upon confirmation of the assessments and recorda- tion of the assessment roll and diagram, a certified copy of the assessment diagram shall be immediately filed in the Office of the County Recorder. Immediately thereafter, a copy of the notice of assessment shall be recorded in the Office of the County Recorder in the manner and form as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 11. That upon recordation of the diagram and assess- ment, a notice shall be mailed to each owner of real property within the Assessment District at his last known address, as said address appears on the last equalized tax rolls of the County, said notice to set forth a statement containing a designation of the property assessed, as well as the amount of the final confirmed assessment, and further indicating that bonds will be issued pursuant to the "Improvement Bond Act of 1915". PUBLICATION SECTION 12. That notice shall also be given by publication in the designated legal newspaper, said notice setting forth the amount of the final assessment and indicating that said assessment is now due and payable, and further indicating that if said assessment is not paid within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by law. No publication shall be required if all (100%) of the assessed property owners have timely filed a properly executed waiver of the cash collection period. ASSESSMENT COLLECTION SECTION 13. The County Auditor is hereby authorized and directed, in accordance with the provisions of Section 8682 of the /J~ -4{ streets and Highways Code of the State of California, to enter into his assessment roll on which property taxes will next become due, opposite each lot or parcel of land affected, in a space marked "public improvement assessment" or by other suitable designation, the next and several installments of such assessment coming due during the ensuing fiscal year covered by the assessment roll and that said entry then shall be made each year during the life of the bonds for the proceedings for the above-referenced Assessment District. This authorization is continual until all assessment obligations have been discharged and the bonds terminated. As an alternate, and when determined to be in the best interests for bondholders of the Assessment District, this legislative body may, by Resolution, designate an official other than the County Tax Collector and/or other agent, to collect and maintain records of the collection of the assessments, including a procedure other than the normal property tax collection procedure. SECTION 14. In accordance with the provisions of Section 8685 of the Streets and Highways Code, if any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected can be conveniently entered thereon, then the Auditor shall enter on the roll a description of the lot or parcel affected, with the name of the owners, if known, but otherwise the owners may be described as "unknown owners", and extend the proper installment opposite the same. ASSESSMENT VERIFICATION STATEMENT SECTION 15. The County Auditor shall, within 90 days after any special assessment installment becomes delinquent, render and submit a detailed report showing the amounts of the installments, interest, penalties and percentages so collected, for the preceding term and installment date, and from what property collected, and further identify any properties which are delinquent and the amount and length of time for said delinquency, and further set forth a state- ment of percentages retained for the expenses of making such collec- tions. This request is specifically made to the authorization of Section 8683 of the Streets and Highways Code of the State of California. ASSESSMENT DISTRICT FUNDS SECTION 16. That the Treasurer is hereby authorized at this time, if not previously done, to establish the following funds as necessary for the payment of costs and expenses and administration of the proceedings for this Assessment District: A. IMPROVEMENT FUND: All monies received from cash collection, proceeds from the sale of bonds and applicable contributions shall be placed into the Improvement Fund. 131'5 assist Reserve B. RESERVE FUND: All monies as designated to in the payment of delinquencies shall be placed into the Fund. C. REDEMPTION FUND: All monies received from the payment of assessments shall be placed in the Redemption Fund. For particulars as to the administration and handling of the Funds, the specific terms and conditions shall be set forth in the Bond Indenture and approved through the Resolution Authorizing the Issuance of Bonds. EIR COMPLIANCE WITH CEQA SECTION 17. As to the Assessment District, the City Council has reviewed and considered FEIR No. 89-01, the environmental impacts of the project therein identified, the proposed mitigation measures contained therein and the candidate findings attached hereto as Exhibit "A". This legislative body has found, by the adoption of the Certifying Resolution that FEIR No. 89-01 was prepared in accordance with the requirements of CEQA and guidelines lawfully promulgated thereunder. CEQA FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATION SECTION 18. A. Adoption of Findings. The City Council does hereby approve, accept as its own, incorporate as if set forth in full herein, and make each and everyone of the candidate findings attached hereto as Exhibit "A". B. Certain Mitigation Measures Feasible and Adopted. As more fully identified. and set forth in Exhibit "A" attached hereto, this legislative body hereby finds, pursuant to Public Resources Code Section 21081 and Section 15091 of the CEQA Guidelines, that the mitigation measures described in the FEIR are feasible and, upon adoption of this ReSOlution, will become binding upon the City and any other responsible parties. c. Infeasibility of Alternatives. As set forth in Exhibit "A" attached hereto, this legislative body hereby finds that it is unnecessary to determine that any of the proposed project alternatives set forth in the FEIR can feasibly and substantially lessen or avoid the potentially significant adverse environmental impact s since all potentially significant adverse environmental impacts were eliminated or mitigated below a level of significance by virtue of the mitigation measures herewith imposed. Notwithstand_ ing the foregoing, this legislative body did review the alternatives to the Project, including the No Project Alternative, and rejects said alternatives for the reasons set forth in Exhibit "A" attached hereto. D. Adoption of Mitigation and Monitoring Proqram. As required by Public Resources Code Section 21081.6, this legisla- t i ve body hereby adopts the Mitigation Monitoring and Reporting /3E-' program ("Program") incorporated in Exhibit "A" attached hereto. This legislative body hereby finds the Program is designed to ensure that, during Project implementation, the city as applicant, and any other responsible parties, implement the Project (as defined in the Certifying Resolution) components and comply with the feasible mitigation measures identified in Exhibit "A" hereto. E. Statement of Overridinq Considerations Unnecessary. After the adoption of all feasible mitigation measures, certain significant or potentially significant adverse environmental effects which might otherwise be caused by the Project will be mitigated below a level of significance. Therefore, this legislative body hereby finds that it is unnecessary to issue, pursuant to Section 15093 of the CEQA Guidelines, a statement of overriding considerations identifying the specific economic, social, and other considerations that render unavoidable significant adverse environmental effects acceptable. Notwithstanding the foregoing, this City council does adopt the Statement of Overriding Considera- tions contained in Exhibit "AU hereto. NOTICE OF DETERMINATION SECTION 19. The City Manager, or his designee, is hereby directed, after passage and adoption of this Resolution, to deliver a Notice of Determination as to the Project, together with a copy of this Resolution, its Exhibit and all resolutions passed by the city Council in connection with this Project, with the County Clerk of the County of San Diego and, in accordance with Public Resources Code Section 21152, to cause such notice to be posted in the County Clerk's office. The City Manager shall accomplish all of the above notice requirements within five (5) working days following the passage and adoption hereof. RECORD OF PROCEEDINGS SECTION 20. The City Clerk shall certify to the passage and adoption of this Resolution; shall cause the same to be entered in the book of original resolutions of the City; shall make a minute of the passage and adoption thereof in the records of the proceedings of this legislative body in the minutes of the meeting at which the same is passed and adopted. Presented by Approved as to form by Bruce M. Boogaard City Attorney John P. Lippitt Public Works Director 13 E ~7 PASSED, APPROVED, and ADOPTED of Chula Vista, California, this 1992, by the following vote: by the City Council of the City day of AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: ABSTAIN: Councilmembers: Tim Nader, Mayor ATTEST: Beverly A. Authelet, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ss. I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. was duly passed, approved, and adopted by the City Council held on the day of , 1992. Executed this _____ day of , 1992. Beverly A. Authelet, City Clerk IJE ~i CITY COUNCIL AGENDA STATEMENT Item K Meeting Date OS/26/92 [THIS ITEM TO BE ACTED UPON AFI'ER COUNCIL CONSIDERS, DELIBERATES AND ACTS UPON THE OTAY VALLEY ROAD ASSESSMENT DISTRICT 90-2 PUBLIC HEARING] ITEM TITLE: PUBLIC HEARING: SUBMITTED BY: REVIEWED BY: BACKGROUND: TO CONSIDER ADOPTING A RESOLUTION OF NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNATION OF CERTAIN REAL PROPERTY WITHIN THE OTAY VALLEY ROAD STREET WIDENING PROJECT RESOLUTION I/'~ '1'1 Determining Public Interest and Necessity for acquiring and authorizing the condemnation of certain real property within the Otay Valley Road Street Widening Project along Otay Valley Road between Interstate 805 and the eastern boundaries of the City, in Chula Vista, California r{) . Community Development Director ~ City Managerjeq ~X ~\ u ...-,. (4/5ths Vote: Yes.x.. No -> Council action on this item will be necessary only if the City Council has approved the formation of the Otay Valley Road Assessment District No. 90-2 earlier in tonight's agenda. Assuming that the district is formed for the purposes of issuing bonds to widen Otay Valley Road, it is necessary for the Council to hold the public hearing and deliberate upon the request to adopt the Resolution of Necessity ("Resolution") to acquire the remaining necessary right-of- way and appurtenant easements through eminent domain for the public right-of-way necessary to construct the road improvements. The City is attempting to acquire easements to the properties as opposed to fee title. The authority to conduct this proceeding is derived from, and being commenced under, California Code of Civil Procedure, Section 1240.030, and California Code of Civil Procedure Sections 1245.210 - 1245.270. RECOMMENDATION: Conduct the Public Hearing and adopt the Resolution of Necessity. DISCUSSION: Section 1240.030 of the California Code of Civil Procedure provides that the power of eminent domain may be exercised to acquire property for a proposed project if the following conditions are established: /L!-/ .C~/j \ t Page 2, Item .l!!- Meeting Date OS/26/92 1. The public interest and necessity require the project. 2. The project is planned or located in a manner that will be the most compatible with the greatest public good and the least private injury. 3. The property sought to be acquired is necessary for the project. 4. That either the offer required by Section 7267.2 of the Government Code has been made to the owners of record, or that the offer has not been made because the owner cannot be located with reasonable diligence. The property owners that are the subject of the Resolution were properly notified of tonight's public hearing by certified and first-class mail dated May 7, 1992, pursuant to the requirements set forth in the Code of Civil Procedures Sections 1245.235 (a) and (b). The notices advised, among other things, that the amount of compensation to be paid for their property is not a part of this proceeding and that their comments should address only the conditions listed above. Following, is a discussion of the four conditions which must be established in order for the Resolution to be adopted: Condition 1: By virtue of the Council certifying the Final Environmental Impact Report (FEIR) on April 21, 1992, and subsequently approving the formation of the Assessment District and adopting a Mitigation and Monitoring Program earlier this evening, the Council has established that the public interest and necessity require the project. As a summary statement however, the widening of Otay Valley Road is consistent with the City of Chula Vista's General Plan Update which designates it as a six lane prime arterial and major street, and is in accordance with the goals and objectives of the adopted Otay Valley Road Redevelopment Project Area Plan that specifically calls for the elimination of environmental deficiencies which includes inadequate street improvements. Condition 2: Otay Valley Road travels east to west, and the portion to be widened lies between Interstate 805 and the eastern City limits. This area has physical barriers on both the north and south sides. To the north lies subdivided and developed properties in some areas, along with steep and substantial slopes in other areas. To the south lies primarily vacant, undeveloped and wetlands. It is clear that in order for the project to be located in a manner that is compatible with the greatest public good and the least private injury, the road must be Page 3, Item E- Meeting Date OS/26/92 Condition 4: Ryals and Associates was retained by the City of Chula Vista to perform acquisition services for this project. Of the property necessary for the project, settlements were reached with all but four (4) property owners covering five (5) parcels. Final Offers were made, pursuant to the requirements of Government Code Section 7267.2, on April 29, 1992, and May 1, 1992, respectfully. Rick Ryals, Ryals and Associates, is present this evening to discuss any specific questions relative to the acquisition efforts. For clarity purposes, the remaining property rights sought under the Resolution, along with the corresponding parcel numbers and date of Final Offers appear below: Owner Parcel No(&} Final Offer Date Offer Atomic Investments Leonard Teyssier 624-060-45 04-29-92 $ 98,200 Jaginco, L.P. Borst Family Trust 644-040-40 04-29-92 $472,000 H.G. Fenton Company 644-050-06 644-050-07 05-01-92 $ 85,700 H.G. Fenton Company Nelson & Sloan Materials 644-050-02 05-01-92 $ 52,100 In summary, the four (4) conditions which need to be established in order to adopt the Resolution have been met. The City, through its Acquisition Consultant have made the appropriate efforts to acquire the easements at or above the Fair Market Value without the use of eminent domain. Unfortunately, the parties have reached an impasse, and therefore, in order to proceed with the project as planned, the easements need to be acquired through the use of eminent domain. FISCAL IMPACT: All property acquisition costs associated with the street widening project is to paid/reimbursed from the Assessment District. Therefore, there is not an impact on either the City or Redevelopment Agency unless, during the settlement proceedings, the Judge awards compensation well above and beyond the established Fair Market Value for the above referenced properties. The existing acquisition budget within the Assessment District is $1,130,920. [C:IWPSI IHAYNIlSIREPORTSIOVRACQI.113] /tJ-'] A-I EXHIBIT "A" ATOMIC INVBSTMBNTS INC, A CALIFORNIA CORPORATION (PAC BELL PARCEL) ALL THAT PORTION OF THE SOUTHEAST QUAIlTJl:R 0' THE NORTHEAST QUARTER OF SECTION 24, TOWNSHIP 18 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THB CITY OF CHULA VISTA, COUNTY 0' SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY DBSCRIBED A8 FOLLOWSl PARCEL 1 (RIGHT-OF-WAY) THAT PORTION OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A LEASE TO PACIFIC TELEPHONE AND TELEGRAPH COMPANY, A CALIFORNIA CORPORATION FROM SAN DIEGO TRUST AND SAVINGS RECORDED MARCH Z1, 1974 AS FILE/PAGE 74-071187 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS I A STRIP 0' LAND 24.00 FEET IN WIDTH LYING SOUTHERLY OF AND ADJACENT TO THE FOLLOWING DESCRIBED LINE; BEGINNING A'r A POINT IN THE EASTERLY LINE OF SAID SECTION Z4, DISTANT THEREON SOUTH 0'26' 17" WEST 51.00 FEET FROM THE CEN'rERLINE OF OTAY VALLEY ROAD AS SAID CENTERLINE IS SHOWN ON A MAP OF PRINCESS MANOR UNIT NO.5. MAP NO. 5229, RECORDS OF SAID COUNTYl THENCE NORTH 89'30' 13" WEST PARALLEL WITH SAID CENTBRLINE 380.00 FEET. THE SIDELINE OF SAID BASEMENT SHALL BE FORESHORTENBD OR EXTENDED TO TERMINATE IN THE EASTERLY AND WESTERLY PROPERTY LINES or THE' ABOVB DESCRIBED PARCEL. SAID PARCEL CONTAINS O.ZI ACRES MORE OR LESS. PARCEL 2 (SLOPE EASEMENT) All EASEMENT FOR SLOPE AND DRAINAGE PURPOSES OVER THAT PORTION OF THAT CERTAIN PARCEL OF LAND DESCRIBED IN A LEASE TO PACn'lC TELEPHONE AND TllLEORAPH COMPANY. A CALIFORNIA CORPORATION, FROM SAN DIEGO TRUST AND SAVINGS RECORDED MARCH ZI, 1974 AS FILE/PAGE 74- 071187 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS I SAID EASEMENT BEING BOUNDED ON THE NORTH BY THE SOUTHERLY LINE OF PARCEL 1 AS DESCRIBED ABOVE AND ON THE SOUTH BY TilE FOLLOWING DIISCIUBED LINEI llEGINNING AT A POIN,T IN THE EASTERLY LINE OF SAID SECTION 24, DISTANT THEREON SOUTH 0'26'17" WEST 83.87 FEET FROM THE CENTIlRLINE OF OTAY VALLEY ROAD AS SAID CENTERLINE 18 SHOWN ON A MAP OF PRINCESS MANOR I1N1T NO.5, MAP NO. 5229, RECORDS OF SAI'D COUNTY; THENCE NORTH 89'29'50" WEST 31.88 FEETI THENCE NORTH 80'3S'S5" WEST 98.00 FEETl THENCE NORTH 80'30'55" WEST 207.83 FEETI THENCE NORTII 0'29'47" EAST 9.72 FEET MORE OR LESS, TO THE INTERSECTION WITH THE SOUTHERLY LINE OF THE ABOVE DESCRIBED PARCEL I AND THE TERMINUS OF THIS EASEMENT. SAID PARCEL CONTAINS 0.07 ACRES MORE OR LESS. PARCEL 3 (TEMPORARY CONSTRUCTION EASEMENT) A TEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES OVER A STRIP OF LAND 20 FEET IN WIDTH LYING SOUTHERLY OF AND ADJACENT ,TO AND PARALLEL WITH THE SOUTHERLY LINE OF I'ARCEL Z AS DESCRI!lBD ABOVE. . /'I-tj _'~,"".~',,<-._''''''-''. EXHIBIT "stt 8,1 PARCEL I AREA-O.21 ACRES ElCIS'llNC R/W PER rIP 31251 a.R.. REO. 2/20/89 EXIS'llNO ll. 60.00' OTAY VAllEY ROAO '\ 11.00' N 89"30'13" W S.E. COR. PRINCESS MANOR UNIT 5 MAP $729 lU3' ~ ~ ~::~-;- TEIAPORARY CONSTRucnON EASEMENT ~ , S 00'2&'\7' W J.. lUl '-SEE DETAIL "A" ~~'\I b, e.~\lb, 0<'(.' ? F' /P 74-071167 O.R. 3/21/74 A TOMle INVESTMENTS. INC. (PAC BELL-LESSEE) A.P.N. 624-060-45 . N ~ ~ ),"8 I~ w~ n "8 l :t!, B l:; 12 Ow n 1JJ. <(>1~ '?;~v ,5% -<,'\'O'e ~'O~ s ~'o~ ~'o. ( ) .. DENOTES DEED BEARING AND DISTANCES PER F /p NO. 74-0"'67 O.R. L4 ... '\ LD \..-]-- 20' IDIPORARY CONSlRUClION EASEMENT I Uff ~ llfil~\H~ ~ 2~ii~ I")~TAIL -A- NOT TO SCALE 1,:,,:,::,,'.':'~.W":i'. DENOTES PCL. I AREA TO BE ACQUIRED AREA .. 0.21 ACRES A8le'lor'8 Porcel No.: 624-060-45 Rlght-of-Woy En~lneerlnQ Services, Inc. OMI En9Jn.- Lon. SurYllyln 2103 EI Camino R"I S '0 208 Ocean.lde, ~" 82054 le'81 757-4443 AuIeCAD fn__ ATOUICJt.cfw, CITY Of CHULA VISTA. OTAY VALLEY ROAD RIGHT OF WAY DATE; SEPTEMBER 10, 1991 SHEET I OF I / f'O" A-2 EXHIBIT "A" W ALitER SCOTT THAT PORTION OF SECTION 19, TOWNSHIP 18 SOUTH. RANGE 1 WEST, SAN BERNARDINO MERIDIAN. IN THE CITY OF CHULA VISTA, 'COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ACCORDING TO THE UNITED STATES GOVERNMENT SURVEY. APPROVED SEPTEMBER 11, 1819, BEING DESCRIDED AS FOLLOWS I PARCEL 1 (RIGHT-OF-WAY) COMMENCING .AT Till!: NORTllWlI:ST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHWEST qUARTER OF SAID SECTION 191 THENCE ALONG THE NORTHERLY LINE OF LOT 2 OF THE SOUTIIWEST qUARTER OF, THE NORTlIWEST QUARTER OF SAID SF.CTION 19. NORTII 88'58' 45" WEST (NORTH 88'57' 01" WEST RECORD PER RECORD OF SURVEY NO, 10121) 185.01 FEET 'TO A POINT ON THE WESTERLY LINE OF THE EASTERLY 185.00 FEET OF SAID LOT 21 THENCE SOUTHERLY ALONG SAID WESTERLY LINE SOUTIl 0'19'03" WEST 20.00 FEET TO A POINT ON TilE SOUTIIERLY RIGIIT-OF-WAY OF OTAY VALLEY ROAD ACCORDING TO ROAD SURVEY NO. 184 PER THE MAP THEREOF ON FILE IN THE OFFICE OF TilE COUNTY SURVEYOR OF SAID COUNTY AND AS GRANTED TO THE COUNTY OF SAN DIEOO BY DEED RECORDED AUGUST 9. 1901 IN BOOK 310. PAGE 42 OF DEEDS, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE EASTERLY ALONG SAID RIGHT-OF-WAY LINE SOUTH 88'58'45" EAST 1487.78 FEET TO A POINT ON THE NORTH-SOUTH CENTERLINE OF BAlD SECTION\ THENCE ALONG SAID NORTH-SOUTH CENTERLINE OF SAID SECTION NORTH 021'38" EAST 9.85 FEET TO A POINT ON THE SAID SOUTHERLY RIGHT-OF-WAY LINE OF SAID OTAY VALLEY ROAD; THENCE ALONG SAID SOUTHERLY RIGIlT-OF-WAY LINE SOUTH 72'07'00" EAST (RECORD SOUTH 72'08'45" EAST) 785.73 FEET MORE OR LESS TO POINT "Z" AS DESCRIBED IN A DEED TO THE COUNTY OF SAN DIEGO. RECORDED JUNE 29. 1979 AS FILE NO. 79-210581 OF OFFICIAL RECORDS I THENCE ALONG TIlE SOUTHERLY LINE OF SAID DEED THE FOLLOWING COURSES I SOUTH 89'50' 55" EAST (RECORD SOUTU 89'50'40" lAST) 202.18 FEET I THENCE SOUTH 72'07'00" BAST (RECORD SOUTII 72'08'45" EAST) 430.00 FEETI THENCE SOUTH 74'24'28" EAST (RECORD SOUTIl 74'24'11" EAST) 200.18 FEBT TO A POINT ON THE SOUTIIERLY RIGIIT-OF-WAY LINE OF SAID ROAD SURVEY NO. 1841 THENCE ALONG SAID' SOUTIIERLY RIGHT-OF-WAY SOUTH 72'07' 00" EAST (RECORD SOUTII12,08'45" EAST) 249.22 FEETI'THENCE PERPENDICULAR AND RADIALLY TO SAID RIGHT-Or-WAY LINB NORTH 17'53' 00" EAST 20.00 FEIi:T TO A POIN1' ON TilE CENTERLINE OF SAID OTAY VALLEY ROAD AS SAlD CENTERLINE IS SIIOWN ON RECORD or SURVIi:Y MAP NO. 10127. SAID POINT ALSO BEING TilE BEGINNING 'OF A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1250,0 FEET A RADIAL BEARING TO SAID POINT BEARS SOUTH 17'53'00" WEST; TIIENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUOII A CENTRAL ANGLE OF 38'39'28" A LENGTH OF 199.75 FEETI THE:iCE TANGENT TO SAID CURVE NOltTH 11'13 '32" EAST (RECORD NORTH 71'12' 55" EAST 94.81 FEET) 95.19 FEET MORE OR LESS TO THE EASTERLY LINE OF SAID SECTION 191 THE\'(CE ALONG SAID EASTERLY LINE SOUTH 0'28'34" WEST (RECORD SOUTH 0'03' 20" WEST) 84.44 FEETI THENCE SOUTH 74'12 '12" WEST 162.98 FEET TO TilE BEGINNING OF A TAlqC!::iT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1282,97 FEET I THENCE WESTERLY AND NORTIIWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTltAL ANGLE OF 32'51'01" A LENGTH OF 735.59 FEET; THENCE TANGENT TO SAID CURVE NORTH 12'58' U" WEST 884.70 FEETI THENCE NORTH 72'07' 00" WEST 433.08 FEET I THENCE NORTH 71'05'59" WEST 450.70 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RA~IUS OF 1938 00 FEET. A RADIAL BEARING TO SAID POINT BEARS NORTH 17 53' 00" EASTi THENCE WESTERLY ALONO THE ARC OF SAID Cl:RVE THROUGII A CENTRAL ANGLE OF 8'04' 17" A LENGTH OF 272.13 FEET TO A POINT ON THE EASTERLY LINE OF SAID SOUTHEAST qUARTER OF THE NORTHWEST QUARTERI THEN~E NORTU 0'21'38" EAST ALONG SAID EASTERLY LINE 72.58 FEET TO A P~IN~ ON THE SOUTHERLY LINE OF OTAY VALLEY ROAD AS SAID LINE IS SHOWN ON RECORD OF SURVEY NO. 101271 THE.'1CE ALONG SAID SOUTHERLY ~INE, PARALLEL WITH AND DISTANT 28.00 FEET A~O~~A~~R~~I~TC~~~iL~~iL~~ ~~0~~EONC~1;~i~~ ~~R::J~ci'.TI'I~4;A;~:~1I 88'58' 45" WEST 20Ml FEETI /t/~~ A-2 THENCE SOUTH 0'21' 3S" WIST PARALLEL WITH THE AFORESAID EASTERLY LINE OF TilE SOUTHEAST QUARTER OF TilE NORTIIWIST QUARTER, 51.91 FEET TO A POINT ON A NON-TANGENT CIlRVE' CONCAVE SOIlTIIWESTERLY AND HAVING A RADIUS OF I03S.00 FEET, A RADIAL BEARING TO SAID POINT BEARS NORTH 3'35'40" EAST I TIIENCE WESTERLY ALONG THE ARC OF SAID CURVI THROUGn A CENTRAL ANGLE OF 2'31' za" A LENGTH OF 85.83 FEET I THENCE PARALLEL .IITII AND DISTANT 75.00 FEET AS MEASURED AT RIGHT ANGLES FROM THE CENTERLINE OF OTAY VALLEY ROA~ AS SAID CENTllRLINE IS SHOWN ON SAID ROAD SURVEY NO. 184. NORTH 8S5S'46" WEST 1193.23 FIET TO A POINT ON TilE AFORESAID liltSTERLY LINE OF THE EA~TERLY 185.00 FEET OF LOT 21 THENCE ALONG SAID WESTERLY LINE NORTH 019'03" EAST 55.01 PlaT TO THE TRIlE POINT OF BEGINNING. EXCEPTING THEREFROM ANY PORTION OF SAID LAND LYING WITHIN PUBLIC IUGHT-OF~WAY AS SIIOWN ON ROAD SURVEY NO. 184. SAID PARCEL CONTAINS 8.08 ACRES MORE OR LESS. PARCaL 21 (SLOPE EASEMENT) AN EASEMENT FOR SLOPE AND DRAINAGE PURPOSES OVER TIlAT PORTION OF SECTION 19. TOWNSHIP 18 SOIlTII. RANGE 1 liEST. SAN BERNARDINO MEIlIDIAN. IN TilE CITY OF CIIIlLA VISTA, COUNTY OF SAN DIEGO ACCORDING TOIlNITED STATES SURVEY APPROVED SEPTEMBIR 11,1819 BEING DESCRIBED AS FOLLOIIS I . SAID EASEMENT IS BOUNDED ON THE NORTH BY THE SOUTHERLY LINE AS DESCRIBED IN PARCEL 1 ADOVE AND ON THE SOUTH BY THE FOLLOWING DESCRIBED LINEI BEOINNING AT A POINT IN TilE WESTERLY LINE OF THE EASTERLY 185.00 FEET OF SAID LOT 2, OF SECTION 19, DISTANT THEREON 00'I9'OS" WEST. S8.98 FEET FROM THE TRIlE POINT OF BEOINNING AS DESCRIBED IN PARCEL 1 ABOVlll THBNCB SOUTH 48'42'39" EAST 8.91 PEETI THENCE SOUTH 08'07'SO" EAST 20.38 FEETI THENCE HORTH 80'00'00" EAST 12.00 FEETI THENCE NORTH 18'30' 81" EAST U. as FEET 1 THENCB H01TH 53'58'58" BAST 23.90 FEETI THENCE SOUTH 88'38'34" EAST 80.53 FEETI THENCE NORTH 87'18'U" EAST n.81 FEET I THENCE SOUTH 88'as'U" EAST 32.08 FEETI . THENCE NORTH 88'Z8'02" EAST 83.44 FEETI THENCE NORTH 89'54'30" EAST 91.88 FEETI THENCE SOIlTH 86'30'44" EAS!!: 07.81 FEETI THENCE SOUTH 84'08'14.' EAST 100.38 FEETI THENCE SOUTH 84'39'14" EAST 100.28 FEETI THENCE NOaTH 88'11'31" EAST 100.12 FEETI THENCE SOUTH 88'41'19" EAST 100.01 FEET I THENCE NoaTH, 88'28'39" EAST 100.10 FEETI TlIENCE.SOUTH 87'41'00" EAST 100.02 FEETI THBNCE SOUTH 85'81'50" EAST 171.81 FEETI THENCE N01'l'II 00'21' 38" EAST ALONO TilE EASTERLY LINE AND TilE SOUTHERLY PROLONGATION 'I'IIEREOF, OF PARCEL 1 DESCRIBED ABOVE 80.94 FEET TO AN ANGLE POINT IN THE SOUTHERLY LINE OF SAID PARCEL 11 THENCE SOIlTIl 88'58'U" EAST ALONG SAID SOUTHERLY LINE 208.11 FEET TO AN ANGLE POINT IN SAID SOIlTHERLY LINEI THENCE SOUTH 00'21' 3S" WE8T ALONG TilE WESTERLY LINE OF SAID PARCEL 1 AND THE SOIlTHERLY PROLONGATION THf..':EOF 10S.90 FElT I . . THENCE 80UTH 78 OS'03" EAST 288.88 FEETI THENCE SOUTH 73'03 '02" EAST 100.24 FEETI THENCE SOUTH 10'33'40" EAST 198.39 FEETI TIIENCE SOUTH 87'80'37" EAST 202.33 FEETI THENCE SOUTH 70'U'l1" EA8T 85.38 FEETI THENCE SOUTII 88'02'01" EAST 103.88 FEETI mENCE SOUTH 18'09'211" EAST 101.10 FEETI THENCE SOUTH 82'27'19" EAST 102.48 FEET I THENCE SOUTII 81'31'38" EAST 100.TO FEETI /11-7 THeNCE SOUTH 81'SS'24" EAST 101.83 FEiTI THeNCE SOUTH 83'33' U" EAST 102.03 FEET, THENCE SOUTH 70'11'OS" EAST 100.48 FEET' THeNCE SOUTH 88'114"48" EAST 102.82 PEET, THENCEIOUTK 71'21'08" EAST 87.10 FEET, THENCE SOUTH TO'Sl'31" EAST 10S.S0 FEET, THeNCE SOUTH U'U' 58" EAST 110.88 FEET, THPCE SOUTH 82'48'39" EAST 111.88 FEET, THENCE SOUTK 89'OS'sa" EAST 107.28 FEET, THENCE NORTH 85'48'39" .EAST 108.21 FEET' THENCE NORTH U'S8'30" EAst 108.85 FEET, THENCE NORtK T8'28'08" EAST 108.22 FIET, THENCE NORTH 72'24'23" EAST 105.01 FEET, THENCE NORTH 95'57' 11" EAST 86 .10 FEET TO tHE EASTERLY LINE OF SAID SECTION 18 AND nlE TERMINUS OF THIS EASEMENT. A-2 . -..- - -. . ---- ..--- -- ..--... SAID PARCEL CONTAINS 2.70 ACRES MORE OR LESS. PARCEL 31 (TEMPORARY CONSTRUCTION EASEMENT) A TEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES OVER A STRIP OF LAND 20.00 FEET IN WIDTH LYING SOUTHERLY OF AND ADJACENT TO AND PARALLEL WITH THE SOUTHERLY LINE OF PARCEL 2 DESCRIBED ABOVE. THE TERMINATION DATE FOR TillS TEMPORARY CONSTRUCTION EASEMENT SHALL BE 90 DAYS AFTER THE FILING OF T/lE NOTICE OF COMPLETION OF CONSTRUCTION. ATTACHED HERETO AND MADE A PART OF THIS LEGAL DESCRIPTION IS A PLAT LABEtED EXHIBIT "B". . THIS LEGAL DESCRIPTION AND PLAT WERE PREPARED BY ME OR UNDER MY DIRECTION. cCZ--L~ ~~ P.L.8. S80T /t.j-~ .. .. OJ ~ J _ ,91'EOE ....0;.89 S I- - CD - ::c X w !Nn Z 1!3HS 33$ H01Vr! . .. l- r.~.k%\ !i;~ <I' .. 11<..... .3 _tgV..!!} , .ot.sr.to N , p ~!~i <JG:!:......J r-.O'OE I 1= ~ s: O~~ tt ~ffiJ. ~ cD !t5;b f ~ CO 31= 8: :zi ....... ,.... a. ,.... r ..( . ... :s:(l) .,.... z:. Q -=I' 1.\.1 .......CD ,.... .. ~ I z i ! ..~~ B~< ~III~ ~~~ ~ii o B-2 I'l i ~ ~ ; i ~ ~ ! ~ ..r ~ ~ i b )., .\1 ~ 1= c ~ u S i .{~ ln~t p~l ~IQ ><~ i ,I tU I III ~ g ,go, l'l IE . "C.. - 5 E !01"'iNn:i1 ro^vr .. l:I31.SYl " 1. b ,GI'99tl ~ _""" ! too~oo N ~ ~Ii . h fit . ~ i z .DOZ-.l 3"IYOS J :z: L.. ~8," TO'4 . .al,S~OO S J'l ," B-2 i t5 < t5 ... ~ ~ ~ :s i2 ::J '" lii o ~ CD '" --: ~ ~ ~ It In Jr:za ~ iI; ~ ..'; >' :2 w ~~ E ~3~~~~~~~~~~; !~!! 0 >- III \.i ..1 g ~ ~~ - f;:ll -- .~Z'BLL 3 .~o9l:.00 N 81 ':In iNn "''1lBlSVJ 0 i i If; :: i "IB .p!u CD ~~ .5 .:!l!!~ allOw,::. :: a ~ ~J!g ii I-- cr~ ~$i i I - .U CD K! o iii - 1. 3 :c -aN x IE W ~ I=ffl$ ; ~ 81=0 g (l)ffi~ ~~ . ~ < a.% r= == . ~ i ii It a..~ i CD I" , i :II: J 0 1 !llHS 3~ ,\ 3Nn l-IOJ.y F/-/P J -7.E-l=- .. . I k t ~ ~ Xl j!! I ~ . ('QV~) ~ u J 1I7ot;$t.~o N i ~ I . fi ~ OS; J ... z i ~I g~ h' L "i r'! ~ I' z l\ ~5 I I'" I illl Ii! i gs ~~ '" a~ I B-2 ~ ~ ...J ~ t2 ~i' ~ iln lIu ~ .... I II I a <I"'..... <l1lI:.....' ti a 1'1 , ~ ~ < Jl .., t; l!l l;1 :> ii a; i i ~ l!s ~ . ~ ~ ; o >- g ~ "C c IS .s i& ~ ~ .~~ ~li 'P~ll .~ l~ ~ilil :PJ ..LU o III J., r3 .r. N ~ .1 11;111 Ii o A-3 EXHIBIT "A" H.G. FENTON MATERIAL COMPANY, A CORPORATION THAT PORTION OF THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 20, TOWNSHIP 18 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVKY, APPROVED SEPTEMBER 11, 1879, DESCRIBED AS FOLLOWS' PARCEL 1 (RIGHT-OF-WAY) BEGINNING AT A POINT OF INTERSECTION WITH THE CENTERLINE OF OTAY VALLEY ROAD WITH THE EASTERLY LINE OF SECTION 19, TOWNSHIP 18 BOUTH, RANGE 1 WEST AS BAlD POINT IS SHOWN OF RECORD OF SURVEY MAP NO. 10127 ON FILE WITH THE COUNTY RECORDER OF SAID COUNTY I THENCE NORTHERLY ALONG SAID EASTERLY SECTION LINE NORTH 0'28'34" EAST 48.87 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 2064.00 FEET, A RADIAL BEARING TO SAID POINT BEARS NORTH 15'39' 21" WEST I THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGII A CENTRAL ANGLE OF 8'17'63" A LENGTH OF 298.92 FEETI THENCE TANGENT 'ro SAID CURVE NORTH 62'36'32" EAST 373.08 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 2084.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGlI A CENTRAL ANGLE OF 18'43'48" A LENGTH OF 674.70 FIlETI THENCE TANGENT TO SAID CURVE SOUTH 78'37'42" EAST 24.40 FEET TO A POINT ON THE EASTERLY LINE OF THE SOUTHWEST QUARTER OF THE NORTIIWEST QUARTER I THENCE SOUTH 0'13' 08" WEST ALONG SAID EASTERLY LINE 130.46 FEET I THENCE NORTH 78'37'42" WEST 49.64 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1838.00 FEETI THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAl; ANGLE OF 16'43'48" A LENGTH OF 632.88 FEETI THENCE TANGENT TO SAID CURVIl SOUTH 82'38'32" WEST 373.08 FEET .TO THB BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1936.00 FEET; THENCE SOU1'HWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 8'26' 20" A LENGTH OF 286.15 FEETI THENCB TANGENT TO SAID CURVE SOUTH 74'12'12" WEST 32.20 FEET TO A POINT IN THE EASTERLY LINE OF SAID SECTION 19; THENCE NORTH 0'28'U" EAST 84.44 FEET TO THE POINT OF BEGINNING. SAID PARCEL CONTAINS 4.03 ACRES MORE OR LESS. ,PARCEL 2 (SLOPE EASEMENT) AN EASEMENT FOR SLOPE AND DRAINAGE PURPOSES OVER THAT PORTION OF THE SOUTHWEST IOlUARTER OF THE NORTHWEST QUARTER OF SECTION 20, TOWNSHIP 16 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CIIULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFOltNIA, ACCORDING TO GOVEltNMENT SURVEY APPROVED SEPTEMBER II, 1819. DESCRIBED AS FOLLOWS: SAID PARCEL BEING BOUNDED ON THE NORTH BY THE SOUTHERLY LINE OF. PARCEL 1 AS DESCRIBED ABOVE AND ON THE SOUTH BY THE 'FOLLOWING DESCRIBED LINEI BEGINNING AT A POINT OF INTERSECTION OF THE CENTERLINE OF OTAY VALLEY ROAD WITH THE EASTERLY LINE OF SECTION 19, TOWNSHIP 18 SOUTH, RANGE 1 WEST AS SAID POINT IS SHOWN ON RBCORD OF SURVEY MAP NO. 10127 ON FILE WITH THE COUNTY RECORDER OF SAID COUNTY 1 THENCE SOUTHERLY ALONG SAID EASTERLY SECTION LINE SOUTH 0'26' 34" WEST 107.22 P'IlET: THENCE NORTH 69'29'31" EAST 21.88 FEET, THENCE NORTH 78'18'38" EAST 141.76 FEETI THENCE NORTH 62'08'09" EAST 129.62 FEETI THENCE NORTH 81'05'04" EAST 199.99 FEET; THENCE NORTH S5028'31" EAST 99.93 FKETI THENCE NORTH 84'06' 26" EAST 189.22 IIEETI THENCE NORTH 81t'l6' 08" EAST 99.81 FEET I THIlNCE NORTH 69'30' 41" EAST 97.74 FEETI THENCE SOUTH 84'42'03" IlAST 96.22 FEET; THENCE SOUTH 62'27'04" EAST 95.68 FEET I THENCE SOUTH 86'35'08" EAST 93.89 FEETI THENCE SOUTH 82'32'08" EAST 99.02 III1:II:TI THltNCE SOUTH 89'59'18" EAST 7.64 FEET TO TilE EAST LINE OF THE SOUTHWEST QUARTER. OF THE NORTHWEST QUARTER. OF SECTION 20 AND THE TERMINUS OF THIS EASEMENT. SAID PARCEL CONTAINS 0.72 ACRES MORE OR LESS. I'I-/~ A-3 PARCEL 3 (TEMPORARY CONSTRUCTION EASEMENT) A TEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES OVER A STRIP OF LAND 20.00 FEET IN WIDTH LYING SOUTHERLY OF AND ADJACENT TO AND PARALLEL WITH THE SOUTHERLY LINE OF PARCEL 2 DESCRIBED ABOVE. SAID EASEMENT SHALL TERMINATE WITHIN 90 DAYS AFTER THB FILING OF NOTICE OF COMPLETION OF CONSTRUCTION OF OTAY VALLEY ROAD. ATTACHED HERETO AND MADE A PART OF THIS LEGAL DESCRIPTION IS A PLAT LABIlLllD EXHIBIT "B". THIS LEGAL DESCRIPTION AND PLAT WERE PREPARED BY MB OR UNDER MY DIRECTION. '..~.".'''>'' /1..-/3 s: d mZ" $: _0 ~Jd I-o..~ ~']0 ~ ~ i l.LJ CO 12 . - H ;: ; ,~~,n~~ ~~~~ a:::: -4.l-....<lt.~... <eI<<...... ::;) G Il II (.) (,LI7:Stl) ,tL' L8~ "~'IU I I . I "" ""'I .., } i : I . I ~ ~ ~ - - . i I ; . I I ; ;\; ~ il ; t! , e ~~ il ~ 1..~a ~ hi III '< ~ ~ ~ \ tll~ 1 ~ ~ w'''' \ 7 ,~, ~~ .. , JZL- LZ~OI sow Wid -.NI1lIJ1N30 '~Slx;l .001 . .L J"N'OS 11/-/'/ ~~i ~~#lC 0-'" ~:ilO :~; ~II (3.IZ,ZLON) o >- ~ ~ r; (.) Jd ...J ~ 00 6 ~ i ~ ~ ~ ci .( :x: ~ 7 ~Q) B-3 . ~ ~ ~~~ !f! ~: ~ ~~a (I) { ~ ~ ijj ~:~ 'lJi :s Ii! 8: ~(l) n .~ ~ ~ ~ ~ii , ~ ~ : n ~~I ~;> ~ U ri U g ~ 5: eo 1:-~ 6'> , o~ ~ ~ & Ii e I 'OlIS lINn ... 1l131SV2 ,ZZ'VLL 3 .tt,ez.oo N (3.Lt,sz-ooN) A-4 ExHIBIT ItAn H.O. FENTON MATERIAL COMPANY, A CORPORATION AND NELSON AND SLOAN, A CO-PARTNERSHIP THAT PORTION OF LOT Z OF SECTION 20, TOWNSHIP 18 SOUTH, RANOE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWSI PARCEL 1 (RIGHT-OF-WAY) BEGINNING AT A POINT OF INTERSECTION WITH THE CENTERLINE OF OTAY VALLEY ROAD WITH THE EASTERLY LINE OF SECTION 19. TOWNSHIP 18 SOUTH, RANGE 1 WEST AS SAID POINT IS SHOWN OF RBCORD OF SURVEY MAP NO. 10127 ON FILE WITH THE COUNTY RECORDER OF SAID COUNTYI THENCE SOUTHERLY ALONG SAID EASTERLY LINE OF SAID SECTION 18 SOU'1'II O'Z8'34" WEST 17.78 FEET TO A POINT ON THE PROPOSED NEW CENTERLINE OF SAID OTAY VALLEY ROAD AS SHOWN ON PLANS FOR WIDENING OF OTAY VALLEY ROAD ON FILE IN THE OFFICE OF THE CITY ENGINEER OF THE CITY OF CHULA VISTA; THENCE ALONG SAID PROPOSED CENTERLINE, THE FOLLOWINO COURSES; NORTH 74'12'12" EAST 13.86 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 2000.00 FEET I THENCE NORTHEASTERLY ALONO THE ARC OF SAIl> CURVE THROUGH ^ CENTRAL ANGLE OF 8'26' 20" A LENGTH OF 284.57 I THENCB TANGBNT TO SAID CURVE NORTH 62'38'32" BAST 313.08 FBBT TO THB BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 2000.00 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 18'43'48" A LENGTH OF S83.78 FEET I THENCE TANGENT TO SAIl> CURVE SOUTH 78'37'42" EAST 37.02 FEET MORE OF LESS TO A POINT ON THE WEST LINE OF SAIl> LOT 2 OF SBCTION 201 THENCE DBPARTING FROM SAID PROPOSED CENTER LINE OF OTAY VALL BY ROAD AND ALONG THll WESTERLY LINE OF SAID LOT 2 OF SECTION 20, NORTH 0'13' OS" EAST (RECORD NORTH 0'12' 21" BAST PER RECORD OF SURVBY NO. 8846) 15.S8 FEET MORE OR LESS TO A POINT OF INTERSECTION WITH THE WBSTERLY TERMINUS OF TH~T CERTAIN COURSB SHOWN ON RECORD OF SURVBY MAP NO. S848 AS SOUTH 8008'38" EAST 200.00 FEET AND THE TRUB POINT OF BBGINNING OF THIS DllSCRIPTIONI THENCE ALONG THE BOUNDARY LINE OF SAID RECORD OF SURVEY NO. 8946 THB FOLLOWING COURSES I SOUTH 80'08'38" EAST 189.78 FEET (RECORI> 200.00 FEET) I THENCE SOUTH 8I'5S'09" EAST 385.00 FEETI THBNCB SOUTH 7S'28'09" EAST 180.00 FBETI THENCE SOUTH 83'55'09" EAST 301.81 FEETI THENCE SOUTH 0'07'39" EAST 107".06 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A" RADIUS OF 2064.00 FEET, A RADIAL BBARING TO SAID POINT "BEARS SOUTH 2'35' 27" WESTI THENCE DEPARTING SAID BOUNDARY LINE OF RECORD OF SURVEY MAP NO. 8946 AND NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 8'48'51" A LENGTH OF 316.32 FEETI THENCE TANGENT TO SAID CURVE NORTH 78'37'42" WEST 725.10 FBET TO A POINT ON THE WEST LINE OF SAID LOT 21 THENCE ALONG SAIl> WEST LINK OF LOT 2 NORTH 0'13'06" EAST 80.88 FEET TO THE TRUll POINT OF BEGINNING. SAID PARCEL CONTAINS 2.34 ACRES MORE OR LBSS. PARCBL 2 (SLOPE EASEMENT) AN EASEMBNT FOR SLOPE AND DRAINAGE PURPOSES OVER THAT PORTION OF LOT 2 OF SECTION 20, TOWNSHIP 18 SOUTH, RANGE I WBST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS; SAID EASEMENT BEING BOUNDED ON THE NORTH BY THE SOUTHERLY LINE OF PARCBL 1 AS DESCRIBED ABOVE AND ON THE SOUTH BY THE FOLLOWING DESCRIBED LINEI BBGINNING AT A POINT ON THll AFOREMENTIONED WEST LINE OF SAID LOT 2 OF SECTION 20 DISTANT SOUTH 0'13'00" WEST 100.06 FEET FROM THE ........ /If~/j? A-4 AFORBMENTIOIUID INTERSECTION OF SAID WEST LINE AND WESTERLY TERMINUS OF THE NORTHERLY LINE OF RECORD OF SURVEY MAP 8848 AS DESCRIBED-IN PARCEL 1 ABOVE I THENCE SOUTH 88'58' 20" EAST 94.11 FBBTI THENCE SOUTH 76'36'47" EAST 118.31 FEETI THENCE: SOUTH 81'28'18" BAST 67.-97 FBETI THENCE SOUTH 77'40'13" EAST 101.44 FEET I THENCE SOUTH 79'18'19" EAST 113.14 FEETI THENCE SOUTH 80'3Z'46" EAST 197.3Z FEETI THENCB SOUTH 78'OO'3Z" EAST 108.36 FEET; THENCE SOUTH 79'%4'45" EAST 107.81 FEETI THENCE NORTH 89'Z8'43" EAST 108.88 FEETI THBNCE SOUTH S8'SS'09" EAST 31.43 FEE1'I TO A POINT ON THAT CBRTAIN LINE OF RECORD OF SURVEY NO. 9948 HAVING A COURSE OF SOUTH 00'07' 39" EAST 911.Z0 FEET' SAID POINT BEING THE TERMINUS OF THIS EASEMENT. SAID PARCEL CONTAINS 0.8Z ACRES MORE OF LESS. PARCEL 3 ( TEMPORARY CONSTRUCTION EASEMENT) A TEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES 20.00 FEET IN WIDTH LYING SOUTHIi:RLY OF AND ADJACENT TO AND PARALLEL WITH THE SOUTHERLY LINE OF PARCEL 2 AS DESCRIBED ABOVE, ATTACHED HERETO AND MADE A PART OF THIS LEGAL DESCRIPTION IS A PLAT LABELED EXHIBIT "B". THIS LEGAL DESCRIPTION AND PLAT WERE PREPARED BY ME OR UNDER MY DIRBCTION. ~~ //'.; ".' fI.. ~ ...;" .Jo_ CBCIL E~RYAL P.L.S. 3997 Jll//, c.l N ~ i ~ ~ .~~ ~ ~ i JIlt :> i 1.:~: ~; m ..,J is 0 ;; ~~ ~ ~~ ~2J 8 ~ i I III ~ to: :s.~ OJ!l , c: 133H5 335 ll! ~ . toE- (:tr~:~t;rrl) 3NIlHOIVVi 3~-:'~:::)N ~ I - ,onllt - - - '"'"';W15 - - I It. I r I ~J I I I I; I 6>~<9'\9 I II I ~ I II I \ \1 \ ~& I'" I \ ~ \ ~ Q)~ 1:-~ I illf \ :,.. \ ? '*"-$- . <S> <1>0<5- ,I~ S \ \1' \ IS. O~ . ~ Ii '"I ljll \ ~ o~ !/'~ I \,: :,1 '*"<1> <I> I \ b \ . \ R 00 R ~ ~ ",~ a::: 411~,.t B II I- - 00 - I X I..LJ ~ ~ I --l!F18t IE- --;QI'Ottl (.llL'll~~) -:. l!l ~~ B-4 I I 51 '0]5 3Nn A'lBJ.SV!I "' I ,Lll'ttl ~ ~ .- - 3':ttrii:OON (3.lt.lltoOON) ~ f!l~iB ~~ul i~~ .....gl5 ....Ci!n. ~~ ~1I ,V \ . . \. JZL pi-I? i .. , !ut1 !3~~!l!:l!l!l ~ \\ \\ i ~ lll! ~ ~i t l!5 z ,0n10 Ig~"tOI 19,4 D <Y'IS) .. J~k ~ ~ ~~i ~~ i i I.. I~ I ~~ ~ ~~ ~ Iii ~FlIt d~ ~ 0>0 1/1 'IJ~ cr = O~. \9. ~ II; ~ ~ "<"0 is) '< > ~ 133HS 335 3NI1H01'Vrl t- - CD, - :r: X lJ..I -...... ".......-... .llO'tIO ] .,o,uoo N (It" '8'0'1/ I/ild ] .1~,CI.O N) ~ I \- JZL- /t/-/~ a I /lI.er,to.OON 'I o :z J~ I~ <~ 6-4 .. >- l!s J! N i l!l ~ ij ili ~ ; m 0:: ~ ~ ~ ~ 6 ~ iii b Ii:! lY '< d .5 i ~ ~r ~ti i I~ ~~ ~J ..LU o Gl .}. a -a,N ii: ~, ~, IJJ ;~ .--< i~ ' ~ n ~i o ~ C-1 BEFORE THE CITY COUNCIL OF THE CITY OF CHULA VISTA RE: PROPOSED OTAY VALLEY ROAD WIDENING PROJECT FINDINGS OF FACT I. DESCRIPTION OF PROJECT Otay Valley Road is proposed by the City to be widened from Interstate Highway 805 (I-80S) to the eastern City boundary. This portion of Otay Valley Road is approximately 8,800 feet in length and crosses lands within the City of Chula Vista's Otay Valley Road Redevelopment Project Area. Otay Valley Road is presently two lanes for most of its length, and increases in width to three and four lanes west of Brandywine Avenue and Oleander Avenue, respectively. The proposed project is to widen Otay valley Road to a six-lane prime arterial within a 128 foot right-of-way. The roadway will have a design speed of 55 miles per hour. Project elements include a 16-foot landscaped median, six 12-foot driving lanes, two 8-foot emergency parking lanes, and 12 feet behind each shoulder curb for sidewalks, landscaping and utilities. The proposed widening is consistent with the City's General Plan and Otay Valley Road Redevelopment Plan. The proposed widening will occur in two phases. Otay Valley Road widening from I-80S to Nirvana Avenue will occur during Phase I, and is anticipated to begin in 1992. Phase II will include the remainder of the road east of Nirvana, and is anticipated to be constructed within five years of Phase I completion. Financing for the proposed project will be funded by the formation of an Assessment District. Thus, approval of the Assessment District is the financial method to implement the proposed project. II. ADMINISTRATIVE RECORD For purposes of CEQA and the findings set forth below, the administrative record of the City Council decision on this project shall consist of the following: 1. The Draft and Final EIR for the project; 2. All reports, memoranda, maps, letters and other planning documents prepared by the environmental consultant and the City, that are not privileged under the Public Records Act or any other relevant statutes; :'-'., 3. All documents submitted by members of the public, and public agencies in connection with the proposed project; 4. Minutes and verbatim transcripts of all workshops, public meetings and public hearings held by the City and Redevelopment Agency; -1- 1'1-/1 ...It 5. Any documentary or other evidence submitted at workshops, public meetings and public hearings; and 6. Matter of common knowledge to the City, which it considers, including but not limited to, the following: a. Chula Vista General Plan - 2010 b. Chula Vista Zoning Ordinance c. Chula Vista Otay Valley Road Redevelopment Plan d. Chula Vista Otay Valley Road Redevelopment Project Area Implemen- tation Plan/Design Manual Addendum e. Chula Vista Threshold/Standards Policy f. Otay River Valley Redevelopment Area Sensitive Biological Resources and Wetlands Delineation (1987). ill. TERMINOLOGYITHE PURPOSE OF FINDINGS UNDER CEQA Section 15091 of the CEQA Guidelines requires that, for each significant environmental effect identified in an EIR for a proposed project, the approving agency must issue a written fmding reaching one or more of the three allowable conclusions. The first is that "[c]hanges or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the final EIR." (Emphasis added.) The second potential finding is that "[s]uch changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency." The third permissible conclusion is that [s]pecific economic, social or other considerations make infeasible the mitigation measures or project alternative identified in the final EIR. "'-1 As regards the first of the three potential findings, the CEQA Guidelines do not define the difference between "avoiding" a significant environmental effect and merely "substantially lessening" such an effect. The meaning of these terms therefore must be gleaned from other contexts in which they are used. Public Resources code section 21081, on which CEQA Guidelines section 15091 is based, uses the term "mitigate" rather than "substantially lessen." The CEQA Guidelines therefore equate "mitigating" with "substantially lessening." Such an understanding of the statutory term is consistent with Public Resources Code section 21001, which declares the Legislature's policy disfavoring the approval of projects with significant environmental effects where there are feasible mitigation measures or alternatives that could "avoid or substantially lessen" such significant effects. For purposes of these findings, the term "avoid" will refer to the ability of one or more mitigation measures to reduce an otherwise significant effect to a less-than-si~nificant ~. In contrast, the term "substantially lessen" will refer to the ability of such measure or measures to substantially reduce the severity of a significant effect, but not to reduce effect to a level of insignificance. Although CEQA Guidelines section 15019 requires only that approving agencies specify that a particular significant effect is "avoid[ed] Qr -2- /,/r..J..() -l! substantially lessen[ed], " these findings, for purposes of clarity, in each case will specify whether the effect in question has been fully avoided (and thus reduced to a level of insignificance) or has simply been substantially lessened (and thus remains significant). Moreover, although Section 15091, read literally, does not require findings to address environmental effects that an EIR identifies as merely "potentially significant," these findings will nevertheless fully account for all such effects identified in the Final EIR. IV. LEGAL EFFECf OF FINDINGS To the extent that these findings conclude that various proposed mitigation measures outlined in the Final EIR are feasible and have not been modified, superseded or withdrawn, the City of Chula Vista (City) hereby binds itself and any other responsible parties to implement those measures. These findings, in other words, are not merely informational or hortatory, but constitute a binding set of obligations that will come into effect when the City adopts a resolution approving the project. V. MITIGATION MONITORING PROGRAM As required by the Public Resources Code section 21081.6, the City Council of the City of Chula Vista, in adopting these findings, also adopts a mitigation monitoring and reporting program. The program is designed to ensure that, during project implementation, the City and other responsible parties comply with the feasible mitigation measures. That program is described in the document entitled, Otay Valley Road Widening Project Mitigation Monitoring and Reporting Program. VI. POTENTIALLY SIGNIFICANT EFFECfS AND MITIGATION MEASURES The Final EIR identified a number of potentially significant environmental effects (or "impacts") that the Otay Valley Road widening would cause, all of which could be avoided through the adoption of feasible mitigation measures. These impacts are restated below, followed by page numbers in the Final EIR where the impacts are discussed. A. Geologic and soils impacts could occur from development of the roadway on the unstable river wash, stream sediments and clay looms found in the area (FEIR, p. 3-7). B. The project will result in the loss of 1.2 acres of Diegan Sage Scrub, 2.6 acres of TamarisklMulefat Scrubland, 0.2 acre of Willow Riparian Woodland, and 0.2 acre of Freshwater Marsh. Construction activities would impact 1.1 acres of TamarisklMu1efat Scrubland and 0.2 acre Diegan Sage Scrub (FEIR, p. 3-26 to 3-27). ...., C. The road widening would conflict with the existing administration, workroom and parking facilities of the City of Chula Vista Animal Shelter (FEIR, p. 3-38). -3- 1'/',2/ -Ii \., D. The proposed project will accommodate traffic volumes that are expected to occur along the widened roadway due to long term development and population growth in the region. Congestion at roadway intersections is expected, including Oleander Avenue, Brandywine Avenue, Nirvana Avenue, Maxwell Road, and at both the northbound and southbound on-ramps to 1-805 (FEIR, p. 3-48 to 3-53). E. Traffic congestion and hazards could result at the intersection of Otay Valley Road and the Nelson & Sloan Rock Plant until the full widening of Otay Valley Road occurs and the intersection with Paseo Ranchero is constructed (FElR p. 3-52 to 3-53). F. Paleontological resources may occur in the project area and could be impacted by roadway development (FEIR, p.3-64). G. Increases in noise levels from increased traffic along the roadway are projected to exceed City guidelines for noise exposure (FEIR, p. 3-79 to 3-80). The sub-sections below restate the above-identified impacts and set forth the mitigation measures adopted to avoid the impacts. A. GEOLOGY/SOILS Potentially Significant Effect: Geologic and soils impacts could occur from development of the roadway on the unstable river wash, stream sediments and clay loams found in the area (FEIR, p. 3-7). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-8 to 3-9). 1. Unstable geology/soils materials will be removed or stabilized before roadway construction begins. Surficial layers of organic soils, debris and soft or loose deposits will be stripped from areas where fill will be placed. 2. Compressive soils will be removed and replaced with properly compacted fill. Expansive soils will be buried deep in fills and not within the roadway section. 3. All slopes will be constructed at a minimum slope of 2.0 horizontal feet to 1.0 vertical feet. Temporary chain link debris fences, with meshes of 1 to 1-112 inch square, will be installed with a geofabric material along the bottom 18-24 inches of the fence to control silting in sensitive wetland areas which could result from sediments in runoff. -4- JLj-.l.l -Ii '~, B. BIOLOGY Potentially Significant Effect: The project will result in the loss of 1.2 acres of Diegan Sage Scrub, 2.6 acres of TamarisklMulefat Scrubland, 0.2 acre of Willow Riparian Woodland, and 0.2 acre of Freshwater Marsh. Construction activities would impact 1.1 acres of TamarisklMulefat Scrubland and 0.2 acre Diegan Sage Scrub (FEIR, p. 3-26 to 3-27). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-28). 1. Losses of wetland habitats will include TamarisklMulefat Scrubland, Willow Riparian Woodland, and Freshwater Marsh totalling 3.0 acres, and will be mitigated by the creation of new wetland areas within the river valley. Any such mitigation will include extensive revegetation with willow woodland and the use of San Diego marsh-elder to maximize value to wildlife and mitigate for the loss to this sensitive plant species. Mitigation will be at a 2: 1 acreage replacement ratio for wetlands lost. 2. The roadsides adjacent to native vegetation communities east of Nirvana Avenue will be designed in a manner that would preclude the potential for vehicle access or illegal dumping into the river bottom or onto the slopes. Incorporation of guard rails or fences would be appropriate. Use of thorny vegetation may also be used in conjunction with temporary fences. 3. The roadway slopes will be revegetated with native plant materials indigenous to the area or which complement the existing native communities, such as sage scrub or sycamore woodland species. 4. Where construction activities are to occur in or adjacent to native vegetational communities, work will be restricted to the delineated project footprint by the placement of temporary construction fences or flagging along both sides of the street. This measure is incorporated in the project description. 5. If work site brushing occurs between April 1 and September 15, the project site will be carefully examined by a qualified biologist prior to clearing. Should the site be found to support nesting birds including Least Bell's Vireo, Willow Flycatcher, or Yellow-breasted Chat, work within 300 feet of the nest site will be delayed until nesting has been completed. -5- 1'1" :;.3 -Ii '-.11 6. Following construction, the 2Q-foot wide construction corridor will be recontoured to natural or lower levels and revegetated with native vegetation favoring Willow and Mulefat Riparian Scrub with minor elements of Diegan Sage Scrub. These measures are consistent with the requirements and conditions of the U.S. Army Corps of Engineers 404 permit for this project, which are hereby incorporated by reference, and attached as Attachment . A . . C. LAND USE Potentially Significant Effect: The road widening would conflict with the existing administration, workroom and parking facilities of the City of Chula Vista Animal Shelter (FElR, p. 3-38). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final ElR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-39). 1. Impacts to the City's Animal Shelter will be mitigated through the redesign of the site and relocation of parking, workroom and administration facilities to the southern part of the property. D. TRAFFIC Potentially Significant Effect: The proposed project will accommodate increased volumes which are expected to occur along the widened roadway due to long term development and population growth in the region. Congestion at roadway intersections is expected, including Oleander Avenue, Brandywine Avenue, Nirvana Avenue, Maxwell Road, and at both the northbound and. southbound on-ramps to 1-805 (FEIR, p. 3-48 to 3-53). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FElR, p. 3-53 to 3-54). 1. Signals will be installed as the City Engineer determines is appropriate in order to meet the City's Traffic Threshold Standard. -6- / ,-/-.)-'1 ..it '."t, 2. Maxwell Road will be restriped to provide a southbound left turn-lane at its intersection with Otay Valley Road. 3. As required in the Mitigation Monitoring Program, traffic conditions will be monitored by the City's Traffic Engineer to implement improvements at the appropriate time. Potentially Significant Effect: Traffic congestion and hazards could result at the intersection of Otay Valley Road and the Nelson & Sloan Rock Plant until the full widening of Otay Valley Road occurs and the intersection with Paseo Ranchero is constructed (FEIR p. 3-52 to 3-53). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measures: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-54). 1. As an interim measure, roadway improvements at this intersection shall be completed as part of Phase 1. E. PALEONTOLOGY Potentially Significant Effect: Paleontological resources may occur in the project area and could be impacted by roadway development (FEIR, p.3-64). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measure: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-65). 1. A qualified paleontologist will be at the pre-grade meeting to consult with the grading and excavation contractors. 2. A paleontology monitor will be on site at all times during the cutting of previously undisturbed sediments through and immediately adjacent to the Mission Valley formation to inspect cuts for contained fossils. In the event that well-preserved fossils are discovered, the paleontological monitor will be allowed to temporarily direct, divert or halt grading to allow recovery of fossil remains in a timely fashion. Any fossil remains collected will be cataloged and deposited (with landowner's permission) at the San Diego Natural History Museum. -7- )'1~>> .../! F. NOISE Potentially Significant Effect: Increases in noise levels from increased traffic along the roadway (stated to occur with or without the project) are projected to exceed City guidelines for noise exposure (FEIR, p. 3-79 to 3-80). Finding: Changes or alterations have been required in, or incorporated into, the project which will avoid the potentially significant environmental effect as identified in the Final EIR. Mitigation Measure: The following mitigation measures have been found to be feasible and have been required either as a condition of approval or have been made binding on the City through these findings (FEIR, p. 3-81). 1. A perimeter masonry wall, six feet high, will be installed at the back lot line of some residences backing up to Otay Valley Road. The wall will be at the top of the slope, to utilize slope height to increase the line of sight break between traffic and rear yard receiver locations. (It should be noted that a large percentage of the noise at the west end of the project area comes from 1-805.) G. CUMULATIVE EFFECTS The Cumulative Impacts analysis was based on the list of proposed and planned projects in the area, shown on Table 2.4-1 in the FEIR, and also on the Cumulative Impacts analysis contained in the General Plan Update FEIR (since the project is shown in the General Plan). In summary, cumulative impacts would occur in the issue areas of flooding downstream, biological resources, agricultural lands, traffic circulation, and noise. With the exception of agricultural lands, the project's contribution to cumulative impacts have been mitigated to a level below significance either through project mitigation measures, or through adherence to standard City engineering and building requirements. Regarding agricultural lands, the FEIR states that the project area is not primarily agriculturally oriented, with prevailing uses being residential and light industrial, and that loss of this acreage (3.9 acres) to the roadway does not create a project significant impact. VII. INFEASffiILITY OF ALTERNATIVES OTHER THAN THE PROJECT ALTERNATIVE "'~: The selection of project alternatives was based on CEQA's requirement of analysis of the No Project Alternative, the General Plan description of roadway location, and a site constraints analysis performed for this project (Otay River Valley Redevelopment Area Sensitive Biological Resources and Wetlands Delineation [Michael Brandman Associates, 1987]). Three different alternative alignments were evaluated subsequent to completion of this study before the proposed alignment was chosen. -8- I'I-.).~ -Ii The proposed project will not result in significant adverse impacts if all recommended mitigation measures are implemented. Because the project's impacts have been mitigated below a level of significance an analysis of the alternatives is not technically required. However, the decisionmakers, after reviewing the EIR and in approving the project specifically reject the No Project Alternative and the other alternatives for the following reasons: No Project Alternative The No Project Alternative consists of no action taken by the City of Chula Vista to construct or implement the proposed project or either of the project alternatives. This alternative would discourage future infill industrial growth along Otay Valley Road and inhibit economic growth in the Otay Valley Road Redevelopment Area. This is contrary to the goals of the Chula Vista Redevelopment Agency as set forth in the Otay Valley Road Redevelopment Plan. The plan specifically calls for the correction of problems relative to circulation, infrastructure, and public utility inadequacies. The No Action Alternative would also be inconsistent with the City of Chula Vista's Draft General Plan Circulation Element roadway designation for Otay Valley Road, which calls for a six lane prime arterial and major street standards for Otay Valley Road. In addition, if this alternative is selected, the lack of capacity and low level of service on Otay Valley Road could constrain future developments north, south, and east of the project. Future development proposals that would contribute traffic to Otay Valley Road, or require the extension of utility services along the roadway, would be affected most. Locational Alternative 1 Locational Alternative 1 is the same as the project with the exception that the six lane roadway would be reduced to a four lane roadway east of Nirvana. The right-of-way would thus be decreased from 128 feet to either 100 feet or 84 feet (depending on design). The environmental consequences of constructing Locational Alternative 1 would be identical or very similar to the proposed project with respect to geology and soils, landform, land use, agriculture, aesthetics, cultural and paleontological resources, and park, recreation and open space. The differences in environmental impacts between Locational Alternative 1 and the proposed project are primarily to biological resources and to traffic conditions. Biolol!Y \~, This alternative reduces the right-of-way from 128 feet to 100 feet east of Nirvana Avenue while retaining the same general road alignment as the proposed project. Impacts of this alternative would generally parallel those of the proposed project with only a slight reduction in magnitude. Loss of wetlands would total approximately 1.23 acres with proportionally fewer San Diego Marsh-Elder impacted. Loss of habitat for riparian bird species would still be considered significant. Reducing the right-of-way to 84 feet would lower the wetland impacts to 0.60 acre, still resulting in significant adverse wetlands impacts. Under either the proposed project or the reduced widths of the Locational Alternative 1, wetland impacts and impacts to the sensitive San Diego Marsh-Elder are considered significant but mitigable through creation of replace- ment wetland habitats including the heavy utilization of marsh elder in the plantings. -9- 1'1-..2 7 ~ Traffic The City's recommended maximum traffic volume for a four lane major street is 30,000 VPD. The General Plan forecast volume at build-out is 26,000 VPD east of Nirvana Avenue, thus the alternative of a four lane classification would seemingly be adequate. Such a classification would require an amendment of the General Plan Circulation Element. However, the roadway was not designed to be four lanes in this location because of traffic circulation considerations. This segment of roadway is located between Paseo Ranchero, which is planned as a six lane facility, and the rest of Otay Valley Road to the west, which also requires six lanes. The volumes of traffic entering the Otay Valley RoadIPaseo Ranchero intersection are projected to be 76,000 ADT. Thus, the six lane width along this segment of Otay Valley Road is necessary in order to provide sufficient capacity entering and exiting the intersection. Also, a short four lane segment of road between six lane roads on either side could create congestion and hazardous conditions. Locational Alternative 2 The environmental consequences of constructing Locational Alternative 2 would be the same as the proposed project and Locational Alternative 1 with respect to land use, agriculture, and parks, recreation and open space. Environmental impact differences between Locational Alternative 2 and the proposed project are identified for traffic conditions, biological resources, cultural resources, geology and soils, and landform and aesthetics, as well as traffic. Impacts to transportation are the same for Locational Alternative 2 as described above for Locational Alternative 1. Overall, impacts on the remaining natural, cultural, and scenic resources would be greater from Locational Alternative 2 than from the proposed project. Biolo~y Under this alternative all direct adverse impacts to the wetland habitats would be eliminated. Due to the extensive slope cutting required, however, an extensive loss of quality Diegan Sage Scrub habitat and a wide array of sensitive plans and animals occurring on these hillsides would be severely impacted by this proposed alternative. The biological impacts of this loss would be significant. '\ The only known large population of Greene's Ground Cherry would be lost. Such a loss is considered unmitigable. Also eliminated would be the dense stands of Coast Cholla and the Fishhook Cactus population. The latter occurs in densities seldom seen in San Diego County; moreover, the average size of specimens far surpasses other known substantial populations. Also heavily impacted would be the State-listed endangered Otay Tarwee population, along with significant colonies of Coast Barrel Cactus and Cleveland's Golden Stars. One pair of California Gnatcatchers would probably be lost from the slopes under this alternative. The Orange-throated Whiptail population would also be impacted. The Diegan Sage Scrub slopes which would be impacted are considered excellent gnatcatcher habitat. -10- 1'1-.). 8'" ...... "i, Cultural Resources Locational Alternative 2 would impact all of the cultural resource sites that will be affected by the proposed project, and would additionally impact another potentially significant site. Thus, Locational Alternative 2 is less preferred for cultural resources than the proposed project. Geology and Soils Locational Alternative 2 would require cutting into the steep hillsides located in the northeastern section of the project area. Soil conditions in this area consist of terrace escarpments and are' considered to be unstable due to the presence of cobble strata. Consequently, greater maximum slope ratios could be required (e.g., 4:1) thereby increasing even further the amount of land disturbed. In addition, retaining walls, with a maximum height of 20 feet, would most likely be required as mitigation. In summary, Locational Alternative 2 is less preferred than the proposed project with respect to geotechnical and soils constraints. Landform! Aesthetics Locational Alternative 2 would also result in significant landform impacts. This Alternative would result in major landform alteration due to the amount of cutting that would be required to achieve 2: 1 or 4: 1 slope ratios. Cut slopes would be required north of the roadway for approximately one-half mile in the northeastern part of the project area. Maximum height of cut slopes would be approximately 65 feet. Landform modifications in this area would have significantly adverse impacts on landscape aesthetics since this Alternative would result in strong visual contrasts with the current natural hillsides and vegetation cover. Consequently, Locational Alternative 2 is less preferable than the proposed project with respect to landform and aesthetics. -11- J'I-.l7 C-2 STATEMENT OF OVERRIDING CONSIDERATIONS Pursuant to CEQA Guidelines Section 15093, the Chula Vista City Council in approving the Assessment District which implements the roadway which is the subject of the FEIR, having considered the information contained in the FEIR, and having reviewed the public testimony and record, makes the following Statement of Overriding Considerations in support of the Findings and the action of the City Council approving the Assessment District. All of the identified potentially significant project impacts have been mitigated to a 1eve11ess than significant, as set forth in the Findings. The project also contributes to cumulative impacts. However, as set forth on page 8, these impacts were deemed to be less than significant. The City Council finds and concludes that the public benefits of the roadway project would outweigh any significant and/or cumulative impacts. The City Council has reviewed and considered all of the alternatives described in the Final EIR. The project selected by the Council was chosen for two major reasons: . It is consistent with the General Plan. . It accommodates projected buildout traffic. The alternatives were rejected by the Council: . No Project Alternative -- because of inconsistency with the General Plan, lack of roadway capacity for projected traffic volumes, and low level of service that would result. . Locational Alternative No.1 - because of inconsistency with the General Plan, lack of roadway capacity necessary to handle future volumes of traffic utilizing the Otay Valley Road/Paseo Ranchero intersection, poor traffic design, and because this alternative does not reduce any impacts to a level below significant. . Locational Alternative No.2 - because of equal or greater environmental impacts associated with this slightly different alignment. ...4! The decision makers find that the following factors support the approval. of the Assessment District which implements the project, and therefore, sets forth and adopts the following Statement of Overriding Considerations: "t, 1. The roadway project is consistent with, and thus will fulfill attainment of the General Plan designation as six lane prime arterial and major street, and the Redevelopment Plan goal which. calls for the "development of a more efficient and effective circulation corridor free from hazardous vehicular, pedestrian, and bicycle interfaces." 2. As set forth in the findings, mitigation measures have been incorporated into the Project or made binding on the applicant through the adoption of the Findings, which reduce impacts below a level of significance. -12- )ll3f/ ...Ii 3. Approval of the Assessment District which implements the Project will result in the following benefits: . Restoration of approximately 6 acres of wetland within the Otay River floodway (twice the impacted amount). . Construction of needed roadway improvements commensurate with General Plan requirements to serve existing and anticipated development in the area. . Construction job opportunities in an economy which is currently suffering from such opportunities. . Construction of the roadway will permit, support, and help promote the further industrial development of the Otay Valley area which includes over 200 acres of undeveloped land zoned for light industrial land use. This will provide numerous job opportunities in construction, business, and industry. . Construction of the roadway will improve the public safety and aesthetics in the area. The current facility is inadequate to support current and anticipated volumes of traffic, and for most of its length does not include curb, gutters, or sidewalks, has poor road surface conditions, and is visually cluttered with overhead utility lines. -'-\, -13- J'lJ I C-3 'OTAY VALLEY ROAD WIDENING PROJECT MmGATION MONITORING PROGRAM Monitoring Program Descriotion and Puroose Public Resources Code ~ 21081.6 requires a lead or responsible agency that approves a project where an Environmental Impact Report (EIR) has identified significant environmental effects, to adopt a "reporting or monitoring program for adopted or required changes to mitigate or avoid significant environmental effects. " The City of Chula Vista is the lead agency for the Otay Valley Road Widening Project. A Draft and Final EIR was prepared for this project which addressed potential environmental impacts and, where appropriate, recommended measures to reduce substantially or avoid the impacts. A Mitigation Monitoring Program is required to ensure that the adopted measures are implemented. The City of Chula Vista will adopt this Mitigation Monitoring Program (MMP) after considering the Final EIR. Roles and Resoonsibilities The MMP for the proposed project will be in place through both phases of the project, including final design, pre-grading, construction and operation. The City of Chula Vista has the primary enforcement role for the implementation of mitigation measures. The City's Environmental Review Coordinator (ERC) will provide final approval for the completion of the implementation of measures. The ERC will appoint a Mitigation Compliance Coordinator (MCC) who will be responsible for the actual monitoring of the implementation of measures. The MCC will interface with the ERC, the City Engineer, the City Landscape Architect, the Construction Supervisor, and the Biological Monitor, all who have some responsibility for the implementation of measures. Mitigation Monitorine: Procedures The MMP consists of Mitigation Monitoring Program Procedures, filing requirements, and reporting and compliance verification. These procedures are outlined below. ~ Mitigation Monitoring Program Procedures: Table 1 identifies the procedures of the MMP. For each mitigation measure, it states the monitoring activity, the timing of implementation of the measure, and who is responsible for verifying that the measure has been implemented and for '-'-1 [mal approval. Mitigation Monitoring Program Files: Files shall be established to document and retain the records of the MMP. The files shall be established, organized, and retained by the City of Chula Vista Planning Department. Reporting and Compliance Verification: The City's Mitigation Monitoring Report Forms are designed to record the monitoring activity in a consistent manner with appropriate approvals. -14- Jt/~ ;:L ...!! The forms will be completed and signed by the individuals responsible for the monitoring and approval of the measures. These forms will be placed in the MMP mes. Proe:ram Ooerations The following steps shall be followed for implementation, monitoring, and verification of each mitigation measure: 1. The City of Chula Vista, Environmental Review Coordinator (ERe), shall designate a Mitigation Compliance Coordinator, who will be responsible for monitoring the implementation of the mitigation measures. 2. The ERC shall provide to the MCC, the Mitigation Monitoring Report Forms; a copy of Table 1; and other pertinent information. 3. The MCC shall coordinate the implementation of the mitigation measures and shall complete a Form for each activity, and forward the report to the ERC for final approval. 4. All completed forms shall ~en be placed in the MMP meso Mitigation measures shall be implemented as specified by the Mitigation Monitoring Program Summary. During any project phase, unanticipated circumstances may arise requiring the refinement or addition of mitigation measures. The ERC, with advise from staff, is responsible for recommending changes to the mitigation measures, if needed. If mitigation measures are refmed, the ERC would complete a Mitigation Monitoring Report Form documenting the change, and shall notify the appropriate design, construction, or operations personnel about refmed requirements. [C:\WPS 1 \OVROAD\FINDINGS.TXT] '-".~ -15- Itf..-;JJ 8:3] J. d~ 11 . '~' 1 . ",oll ]] '" '~p 5 :il ] ]10' 11 Hi Ss Jlu -< 'U ~ ::S', 8 'C s ~ ' '5 '~ 'i! ~jjl 's, .'" :l! '0 '~ ill U sJlJl.,;~ili!sG;' '" ~ .!I e ..- Jf -llr~ ..,~. ,alll 8 ~ '" ~~-""'~- j~ .e ~ ~S~~lr Ji i !U !j~ Jf'O] ~, ij ... -,S ",g hh a~ "j 8 ,~,8 '" ,8 Us- , j olrJ 81~ ll!ll! 's ~ 1 f b!H Ii ::s 8 ~!'Ilt ] ~PfJln il ~ 'Sr u '5 i g I ::s J - " . ~~ e. ,8 I Jl.Jl ~ lJl 8 1 OlO lf~I:I ,S1l!~d ~~ :;j::tJ JlH hi -8 '~ ~ ~ ~ ..z Jt1n ,{["S ,~ ~::s 0 '!' ~~ . 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's 'i~'~ " ~"j. ~HI .q; '~I ' -a '" h'H 8 ~.~ go i. <lh ~ i.:~ l~ -' oJ ,.; /'1.;8" gl o~ ~~ ~ h ~I ~~ ~~ ~! >00 <I:: s~ ~ '" !l, ;: f ...... .. 115'~ ,a il ~ ii~j'!i ll~ El8 n;- ,; '" i ll~ f ~ ~fh i'~ ~ =~ll'd il' g is t 'I~ r~ 1 I ~ ~ ~ ..JI~ ~ 8 ~.j<-!l g - ," ~ ';j .g '~ " ~ iHU ~ ~.. /t/-Ji RESOLUTION NO. 1 t,~ '1'1 RESOLUTION OF THE CITY OF CHULA VISTA FINDING AND DETERMINING PUBLIC INTEREST AND NECESSITY FOR ACQUIRING AND AUTHORIZING THE CONDEMNA- TION OF CERTAIN REAL PROPERTY WlTIllN THE OTA Y VALLEY ROAD STREET WIDENING PROJECT ALONG OTAY VALLEY ROAD BETWEEN INTERSTATE 805 AND THE EASTERN BOUNDARIES OF THE CITY, IN CHULA VISTA, CALIFORNIA WHEREAS, the City of Chula Vista is a chartered municipal corporation of the State of California ("City"); and, WHEREAS, in conjunction with its municipal purpose of providing transportation facilities, the City has resolved to widen Otay Valley Road, currently a two lane asphaltic roadway to a 6 lane prime arterial and major street between 1-805 and the eastern City boundary, and have formed the Otay Valley Road Widening Assessment District No. 90-2 consisting of various parcels contiguous or proximal thereto and benefitting therefrom ("Project"), five of which include the parcels ("Properties") which are legally described in Exhibits A-I through A-4 and diagramatically shown in the corresponding maps designated as Exhibits B-1 through B-4, all of which are attached hereto and incorporated herein by reference; and, WHEREAS, at the regular meeting of the City Council held on May 26, 1992, the City received substantial and convincing evidence that the public interest and necessity require the project, and the Proposed Project is planned and located in a manner that will be most compatible with the greatest public good and the least private injury, and in order to effectuate the Project, the acquisition of the Properties are necessary. WHEREAS, at said meeting, the City received substantial and convincing evidence that the City engaged in good faith negotiations for the voluntary acquisition of the Property which efforts included the extension of offers for the acquisition of same at fair market value, and various meetings with the affected owner and interest holders in the Property; and, WHEREAS, at said meeting, the City received substantial and convincing evidence that the acquisition of the Property is for a public use, to wit: the widening of a transportation facility; and, . ovr-rnl.wp May 15, 1992 Reso of Necessity re Road Widening Project Page 1 1'/ ~ '1~ WHEREAS, the City is authorized to acquire the hereinafter described real property, or easement interest in real property, pursuant to California Code of Civil Procedure Sections 1245.210 through 1245.270; and, WHEREAS, at a regular meeting of the City Council held on Apri121, 1992, ("EIR Meeting"), the City Council reviewed and considered the environmental consequences resulting from the proposed Project all as more fully set forth as the proposed project in the EIR No. 89-01; and.as a result thereof, the City Council adopted, prior to the adoption of this Resolution, Resolution No. 16599 at said EIR Meeting, fmding that the Environmental Impact Report was prepared in compliance with CEQA ("Council Certification Resolution"); and, WHEREAS, the City has considered all of the evidence submitted at the hearing including the staff report; NOW, THEREFORE, THE CITY OF CHULA VISTA DOES HEREBY FIND, RESOLVE AND DETERMINE, BY A VOTE OF NOT LESS THAN TWO- THIRDS OF ITS MEMBERS, AS FOLLOWS: 1. Findings Related to Necessity of Project. a. Public Interest and Necessity Require the Project. The public interest, convenience and necessity of the City of Chula Vista, and its residents, require the Proposed Project in order to further the implementation of the Otay Valley Road Redevelopment Project Area Plan, and provide consistency with the City of Chula Vista's Updated General Plan. b. Project Planned and Located for Greatest Public Good and Least Private Injury. Natural habitat and terrain concerns along with existing developed properties are barriers which prohibit the road from being widened in another shape and/or configuration without unnecessary harm to the public good and undue private injury. The widening, planned for the south side of the road, is the only viable alternative due to. the existance of existing subdivided and developed property, along with steep and substantial slopes, along the north side of the road. c. Properties are Necessary for the Project. ovr-ml. wp May 15, 1992 It!, 'II Reso of Necessity re Road Widening Project Page 2 The property easements are necessary for the project since they are located within the proposed right-of-way, slope easements and temporary construction easements as illustrated in Exhibits B-1 through B-4. 2. Voluntary Offer to Purchase the Property Made. The offer required by Section 7267.2 of the Government Code has been made to the four (4) owners of record for the acquisition of the required easements to the five (5) remaining parcels necessary for the project. 3. Authority to Proceed in Eminent Domain Granted. The City of Chula Vista, and all appropriate officers, representatives and attorneys is hereby authorized and empowered to acquire the easements to said Property by condemnation in the name of the City of Chula Vista to be used for the municipal purpose of enhancing a transportation facility, in accordance with the provisions of the Code of Civil Procedures, and the Constitution of California related to eminent domain, and to that end, it is authorized and directed to commence and to prosecute an action or actions in eminent domain for the purpose of acquiring easements to the Property. 4. Retention of Eminent Domain Counsel Authorized. The City Attorney for the City of Chula Vista, as General Counsel, and the law firm of Daily & Heft, special attorneys for City are hereby authorized to prepare and prosecute in the name of the City, such proceeding or proceedings in the proper court having jurisdiction thereof, as are necessary for such acquisition; and to prepare and fIle such pleadings, documents, briefs, and other instruments and to make such arguments and to take such actions as may be necessary in the opinion of said attorneys to acquire for said City the said real property. Said attorneys are specifically authorized to take whatever steps and/or procedures are available to them under the Eminent Domain Law of the State of California including but not limited to Code of Civil Procedure, Title 7, Chapters 1-12, Sections 1230.010-1273.050). 5. Compliance with CEQA Certified. In previous proceedings held by the City Council, at the EIR Meeting, the City Council, reviewed and certified the Final Environmental Impact Report ("FEIR") was prepared in accordance with CEQA all as more fully set forth in the Council Certification Resolution. ovr-rnl. wp May 15, 1992 Reso of Necessity re Road Widening Project Page 3 1'1-- 'I).. 6. CEQA Findings The Council has reviewed and considered the FEIR, No. 89-01, and has fully considered the environmental effects of the project as shown therein. The City Council hereby finds as follows: a. Adoption of Findings. The City Council has reviewed, considered, and wholly agrees with the contents and does hereby approve, accept as its own, incorporate as if set forth in full herein, and makes each and every one of the CEQA Findings of Fact attached hereto as Exhibit C-l, except as noted below in subsection (c). b. Certain Mitigation Measures Feasible and Adopted. As more fully identified and set forth in Exhibit C-l attached hereto, the City hereby finds, pursuant to Public Resources Code Section 21081 and CEQA Guide- lines Section 15091, that the mitigation measures described in the FEIR as feasible are in fact found by the City Council to be feasible, and will become binding upon the City. c. Infeasibility of Alternatives. As set forth in Exhibit C-l attached hereto, the City Council hereby finds that none of the proposed project alternatives set forth in the Final EIR can feasibly and substantially lessen or avoid the potentially significant adverse cumulative environmental ef- fects that will not be substantially lessened or avoided by the adoption of all feasible mitigation measures. d. Adoption of Mitigation and Monitoring Program. As required by Public Resources Code section 21081.6, the City hereby adopts the mitigation monitoring and reporting program ("Program") set forth in Exhibit C-3, incorporated herein by reference. The City hereby finds the Program is designed to ensure that, during Project implementation, the Project proponent, and any other responsible parties, implement the Project components and comply with the feasible mitigation measures identified in the Exhibit C-3. ovr-rnl.wp May 15, 1992 Il/ r 0/;> Reso of Necessity re Road Widening Project Page 4 e. Statement of Overriding Considerations. Even after the adoption of all feasible mitigation measures and alternatives, certain significant or potentially significant adverse environmental effects caused by the Project will remain. Therefore, the City hereby issues, pursuant to CEQA Guidelines Section 15093 and as set forth in Exhibit C-2 attached hereto, a statement of overriding considerations identifying the specific economic, social, and other considerations that render that unavoidable significant adverse environmental effect acceptable. PASSED AND ADOPTED this _ day of the following votes: , 1992, by Ayes: ( ) Nader ( ) Moore ( ) Malcolm ( ) Rindone ( ) Grasser-Horton Noes: Absent: Not Voting: Tim Nader, Mayor City of Chula Vista, California Attest: Beverly Authelet City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly Authelet, City Clerk, to the City of Chula Vista, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. _ and the same has not been amended or repealed. Dated: ,1992 Beverly Authelet City Clerk A.PP~~ as u/ F9 i~ I~ f ( i, Bruce M. Boogaard, City Attorney ovr-rn1.wp May 15, 1992 Reso of Necessity re Road Widening Project Page 6 I'I-l/f' 05-22-92 " FRX 09:14 AeJuocCl...... ion AfI.'U<;NDI':n IN :\SSEMllLY MAY 20,1992 AMENDED IN ASSEMBLY APHIL 21, 1992 AMENDED IN ASSEMBLY i\MJlCH 30, 1992 <:ALIYOIINIA l.I..t:lSJ."TVRI';_I!l9].!<2 1lj,;(;l}I..\1l ,~I';SSION ASSEMBLY BILL No. :J734 ::="'-=---=:-="-::=-.~~--=--.:=..~"~..:...-~-;=-~:-,:.._-..:...r--=-<-=-=--__,"=-""",;:", Intmdueed by Assembly Member IIallser (Coal,thorN: Assembly Members Areiar, Hughes, and Wyman) (Coauthors: Semltors Deddoh IllJd (;roel/) Februal')' 21, 1992 -=-r--_.--:="-",",=--~""'=..l=---='-,'="";""".....:::..a=.:.,,=--=.....-:=..-=---=-. ===:" An act to amend Section 40980 of, to add Section.~ 40322.5, 40701.5. and 40704.5 to, to repeal and add Sections 40100 and 40152 of, and to repeal Section 40153 of, the Health and Safety Code, relating to air pollution. l.Ef:JSL.... T1VE COUNSF.L. DICEST AU 3734, as amended, HausQr. Air pollution: district governing boards. (1) Under existing law, the goveflling board of a county air pollution control district is ex officio the county bolll'd of supervisors; the governing board of lL unified air pollution control district is ex officio the board of SUpervisors of each county <:omprising thci district; the govorning board of a regional air pollution control district consists of an agreed upon number of county supervisors and members of the city sdection COlnmittee from each county, which committee Coll8ists of the mayors of th~ cil'ios in the county; the gov~rllinl'l board of the: Sacramento Metropolitan Air Quality Management District consists of counly elected officials, as specified; the: governing boards of the Bay Area Air Quality Malla~ement Di'irict and the South Coast Air Quality 96tt'l /7 tt-- -I P...&2I2 05-22-92 FRI 09:14 Aduoeation P_03 OO:-..1C)m.o.~I:O"'" ~gc ~ (") t;l. ; ~ 0 ~~:;'~<1>{{ip..{{i ... &,g.<l> 8~ n~-B 'l:l <1>~ '8: '" -8 ~.~ t<>(il 0 IS- !!:o' ~ ~_(1) tn 'j Z ~ _..:T e. s> 8" g n; r- ~ fLs-,i iil go po <l> a,2. ~!.:l If ~ <l>~gQ."~ c: '" or -. ... ~ ..... 0 a. 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