HomeMy WebLinkAboutAgenda Packet 1998/09/15
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"I declare .onder penalty of parjury that I am
employed by the City of Chula Vista in the
Office 0" ',0" i '" "ice:, ~n,j that I posted
this A=.:cn J -' "., .' C :,.~' !iotin Board at
the PUA" ' . ; ',;V; :': :1 r'lcl at ity Hall on
DATEDl:1:-II, ~S;:;;E'~
.. Council Chambers
ublic Services Building
'-.,..-.
Tuesday, September 15, 1998
6:00 p.m.
R ular Meetin of the Cit of Chula Vista Cit Co
CALL TO ORDER
1. ROLL CALL: Council members Moot_, Padilla_, Rindone_, Salas_, and Mayor Horton_.
2. PLEDGE OF ALLEGIANCE TO THE FLAG. MOMENT OF SILENCE
3. APPROVAL OF MINUTES: June II, 1998, June 17, 1998, June 18, 1998, and September 1, 1998
4. SPECIAL ORDERS OF THE DA Y:
A. Report from Metropolitan Wastewater Department, City of San Diego. Dave Schlesinger, Director,
will be the main presenter. Also attending will be Deputy Director of Program
Management/Construction Management Division; Scott Tulloch; and Ron Kale, Senior Public
Information Officer.
B, Presentation by SDG&E Re: Kenneth Lee Memorial Planning Award.
CONSENT CALENDAR
(Items 5 through 15)
The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the
Council by one motion without discussion unless a Councilmember, a member of the public, or City staff requests
that the item be puiled for discussion. If you wish to speak on one of these items, please fill out a "Request to
Speak Forol" available in the lobby and submit it to the City Clerk prior to the meeting. Items pulled from the
Consent Calendar will be discussed after Board and Commission Recommendations and Action Items. Items pulled
by the public will be the first items of business.
5. WRITTEN COMMUNICATIONS:
A. Letter from the City Attorney stating that to the best of his knowledge from observance of
actions taken in Closed Session on September 1, 1998, there were no actions taken which are
required under the Brown Act to he reported. It is recommended that the letter he received and
filed.
B. Letter of Resignation from the Ethics Committee - Chester S. DeVore. It is recommended that
the resignation be accepted with regret and the City Clerk be directed to post immediately according
to the Maddy Act in the Clerk's Office and the Public Library.
c. Letter of Resignation from the Planning Commission - Patricia Aguilar. It is recommended
that the resignation be accepted with regret and the City Clerk be directed to post immediately
according to the Maddy Act in the Clerk's Office and the Puhlic Lihrary.
D. Letter from homeowners of the north end of 1400 Kim Place requesting removal of picnic table
and cover at the end of First Avenue in SDG&E Park, and installing of lights in the parking lot at
the southern end of First A venue.
Agenda
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September 15, 1998
6. ORDINANCE 2745 AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY
FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW
m), (second rendin!! nnd adoDtion)
7A. ORDINANCE 2746 " GRANTING TO SAN DIEGO GAS & ELECTRIC COMPANY, ITS
SUCCESSORS AND ASSIGNS, THE FRANCHISE TO CONSTRUCT, MAINTAIN AND USE,
POLES, WIRES, CONDUITS AND APPURTENANCES, INCLUDING COMMUNICATION
CIRCUITS, NECESSARY OR PROPER FOR TRANSMITTING AND DISTRIBUTING
ELECTRICITY TO THE PUBLIC FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON,
UNDER, AND OVER THE PUBLIC STREETS AND PLACES WITHIN THE CITY OF CHULA
VISTA (second readin!! and adoDtion)
B. ORDINANCE 2747 - GRANTING TO SAN DIEGO GAS & ELECTRIC COMPANY, ITS
SUCCESSORS AND ASSIGNS, THE FRANCHISE, TO INSTALL, MAINTAIN AND USE PIPES
AND APPURTENANCES TRANSMITTING AND DISTRIBUTING GAS FOR ANY AND ALL
PURPOSES UNDER, ALONG, ACROSS, OR UPON THE PUBLIC STREETS AND PLACES AS
THE SAME NOW OR MAY HEREAFTER EXIST WITHIN THE CITY OF CHULA VISTA (second
readin!! and adoDtion)
C. RESOLUTION 19165 APPROVING AGREEMENT WITH SDG&E GRANTING THE CITY AN
EXCLUSIVE RIGHT TO ISSUE AND REFINANCE SDG&E INDUSTRIAL DEVELOPMENT
BONDS - As par of its negotiations with SDG&E for a five year renewal of its gas and electric franchise,
City staff negotiated a side agreement whereby SDG&E would grant to the City an exclusive right through
June 30,2013, to be the issuer for SDG&E's Industrial Development Bond ("!DB") issues and refinancings.
Under this agreement, for every Ten Million Dollars ($10,000,000) of debt issued or refinanced, the City
will receive an issuer fee of Twenty Five Thousand Dollars ($25,000). In every case the City would be
acting as a conduit, and would not itselfbe liable in any way for repayment of the bonds. Staff recommends
approval of the resolution. (Assistant City Manager and Assistant City Attorney)
8. RESOLUTION 19145 APPROVING AN INCREASE IN THE NUMBER OF AUTHORIZED
HOURS FOR COUNCIL AIDES FROM FIVE HOURS PER WEEK TO TEN HOURS PER WEEK
AND APPROPRIATING $28,070 FROM AVAILABLE FUND BALANCE IN THE GENERAL FUND
FOR RELATED SALARY AND BENEFIT COSTS - During the July 14, 1998 Council meeting, staffwas
directed to return to Council with an item for consideration related to increasing the authorized hours from
five hours per week to ten hours per week for Council Aides, along with the costs stemming from such an
action. Staff recommends approval of the resolution. (Director of Finance) 4/5ths vote reouired.
Continued from SeDtemher 1. 1998
9. RESOLUTION 19154 APPROPRIATING $35,000 FROM UNANTICIPATED REVENUE FROM
CHULA VISTA ELEMENTARY SCHOOL DISTRICT TO CIP PROJECT NO. TF258 FOR THE
MODIFICATION OF THE TRAFFIC SIGNAL AT THE INTERSECTION OF BROADWAY AND
"E" STREET (CIP NO. TF258) - This signal project was one of the conditions that City Council required
the Chula Vista Elementary School District (CVESD) to mitigate in conjunction with ordering the
conditioned street vacation of a portion of the 100 block of Jefferson Avenue. CVESD has deposited
$36,000 to do the proposed traffic signal modification and other projects as a condition of the proposed
vacation of Jefferson Avenue. Staff recommends approval of the resolution. (Director of Public Works)
4/5ths vote reouired. Continued from SeDtemher 1. 1998
10. RESOLUTION 19166 APPROVING AN AGREEMENT WITH THE FIRM OF SUTRO CO., TO
PROVIDE FINANCIAL ADVISORY SERVICES RELATED TO FINANCING SPECIFIC CAPIT AL
PROJECTS AND REFINANCING SEVERAL ASSESSMENT DISTRICT DEBTS, AND
AUTHORIZING THE MA YOR TO EXECUTE SAID AGREEMENT - There are currently three known
Agenda
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September 15, 1998
capital projects that require some form of borrowing in order to allow for a timely completion; the Animal
Shelter, the Corporation Yard, and the Library Automation project. In addition. due to historically low
interest rates, it may now be economically feasible to refinance several outstanding assessment district debts.
After following the City's consultant selection process, staff is recommending that the firm of Sutro & Co.,
be hired to act as financial advisor on these potential financings. Staff recommends approval of the
resolution. (Director of Finance)
11. RESOLUTION 19167 DETERMINING THAT ANY BONDS ISSUED PURSUANT TO PROPOSED
COMMUNITY FACILITIES DISTRICT 97-3 WILL BE SOLD ON A NEGOTIATED BASIS,
WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL AND APPOINTING
STONE & YOUNGBERG AS THE UNDERWRITER TO MARKET ANY SUCH BONDS - The
financial advisor for Community Facilities District 97-3 (McMillin Development) in the Otay Ranch, is
recommending that the bonds to be issued to finance infrastructure within the district be priced on a
negotiated basis in order to minimize borrowing costs to prospective home buyers. The undeIWriting team
of Stone & Youngberg and Merrill Lynch have been working diligently since their appointment in October,
1997, to undeIWrite the bonds for the first assessment district in the Otay Ranch annexation, Assessment
District 97-2 (Village Development). Stafffeels that because of the value ofthe recently acquired knowledge
by this underwriting team of the Otay Ranch development plan overall, and the closeness of the timing of
the two bond issues, it is impractical to conduct another consultant selection process and is recommending
that the process be waived in favor of appointing Stone & Youngberg/Merrill Lynch. Staff recommends
approval of the resolution. (Director of Finance)
12. RESOLUTION 19168 APPROVING SOFTWARE LICENSE & MAINTENANCE AGREEMENT
WITH PRINCIPAL DECISION SYSTEMS INTERNATIONAL (PDSl) FOR THE PURCHASE OF
AN AUTOMATED FIRE STAFFING SYSTEM AND APPROPRIATING FUNDS FROM THE
GENERAL FUND AVAILABLE FUND BALANCE THEREFOR - Currently, the Fire Department
maintains its staffing information and conducts its operational overtime callback eligibility, and the retrieval
of pertinent infonnation for the day-to-day management of the department's resources is laborious, time
consuming, and inefficient. Until very recently, the Fire Department has not been able to find software
which would meet the needs of its unique staffing patterns, MOU "rules", and management requirements.
The TeleStaff" software provided by PDSI, can be programmed with Chula Vista Fire staffing specifics for
efficient information storage, retrieval, analysis, and can even he used to automate the telephonic recall of
personnel for additional and overtime assignments. Staff recommends approval of the resolution. (Director
of Management and Information Services and Fire Chief)
I3A. RESOLUTION 19169 APPROVING AN AGREEMENT WITH SDG&E FOR THE CITY'S
PURCHASE OF THE SOUTH BAY SERVICE CENTER LOCATED AT 1800 MAXWELL ROAD
AND ADOPTING NEGATIVE DECLARATION 95-02A IN CONNECTION THEREWITH. In
December 1991, the City Council adopted a Civic Center Master Plan th:ltidentitied future space and facility
needs to meet the anticipated growth in Chuta Vista. The Master Plan included planning for a new Public
Works Corporation Yard (Corp Yard) to be relocated from its current 6 acre/261 ,360 square foot location
at 707 "Fir Street to a new site. The new site would better accommodate the space projections needed for
staff and equipment to meet the growth anticipated in the City's eastern territory. A revised Corp Yard
Master Plan was completed in February 1998 in response to an opportunity to purchase an existing facility
that could potentially meet the majority of the City's Corp Yard needs and at the same time save the City
millions of dollars. This agenda statement outlines the requirements of the updated Corp Yard Master Plan
and the proposed purchase of the San Diego Gas & Electric (SDG&E) South Bay Service Center (SBSe),
a surplus facility not currently used by the utility company, to meet the Master Plan needs identified for the
Corp Yard. Staff recommends approval of the resolutions. (Assistant City Manager and Assistant City
Attorney)
Agenda
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September 15, 1998
B. RESOLUTION 19170 REGARDING THE CITY'S INTENTION TO ISSUE TAX EXEMPT
OBLIGATIONS TO FINANCE THE CITY'S CORPORATION YARD AND DIRECTING ST AFFTO
RETURN WITH A FINANCING PLAN
14. RESOLUTION 19171 APPROVING DEFERRAL AGREEMENT WITH MICHAEL AND TONYA
ARNOLD ON PAYMENT FOR THE CONSTRUCTION OF STREET IMPROVEMENTS AT 239
NAPLES STREET AND AUTHORIZING THE MAYOR TO EXECUTE THE DEFERRAL
AGREEMENT. The construction of street improvements at 239 Naples Street (Assessor's Parcel No. 619-
122-27-00) was included in the contract for Assessment District No. 96-01, Construction of Twin Oaks
Avenue Improvements, from Naples Street to Emerson Street. The deferral agreement will provide the same
payment plan to the property owners of 239 Naples Street that is being provided to the property owners
within the boundaries of the adjoining assessment district. Staff recommends approval of the resolution.
(Director of Public Works)
15. RESOLUTION 19172 ACCEPTING CONTRACT WORK FOR THE "INSTALLATION OF DUAL
LEFT TURN LANES ON OTAY LAKES ROAD AT EAST 'H' STREET (STM-322) PROJECT.
APPROVING CHANGE ORDER NO.4, AND AUTHORIZING THE DIRECTOR OF PUBLIC
WORKS TO EXECUTE SAID CHANGE ORDER ON BEHALF OF THE CITY. On June 10,1997,
the City Council approved Resolution No. 18694 awarding a contract in the amount of$I,007 ,914. 75 (plus
contingencies of$261,970.29) to Single Eagle. Inc., for the installation of dual left turn lanes on Otay Lakes
Road at East "H" Street (STM-322). The work is now complete and the Notice of Completion was filed on
August 17, 1998. Single Eagle, Inc., has submitted its final invoice (the total contract cost is
$1,125,274.74). Retention in the amount of$55,845.85 (5% of $1,125,274.74) will be paid 35 days after
the Notice of Completion was recorded. Change Order No.4, which will increase the contract by
$14,020.49, is for extra work items including curb modifications and additional striping, survey monuments,
landscaping, and irrigation. Staff recommends approval of the resolution. (Director of Public Works)
* * * END O/l CONSENT CA1JENDAR * * *
ADJOURNMENT TO REGULAR AND/OR JOINT MEETING OF THE REDEVELOPMENT AGENCY
ORAL COMMUNICATIONS
This is an opportunity for Ihe general public 10 address Ihe City Council on any subjecl mailer within Ihe Council's
jurisdiction Ihal is nol an item on Ihis agenda for public discussion. (Slale ww, however, generally prohibits Ihe
City Council from laking aclion on any issues nol included on Ihe posled agenda.) If you wish 10 address Ihe
Council on such a subjecl, please complele the "Requesllo Speak Under Oral Communications Form" avaiwble
in Ihe lobby and submil it 10 Ihe City Clerk prior 10 Ihe meeting. Those who wish 10 speak, please give your name
and address for record purposes and follow up aclion.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
Thefollowing ilems have been advertised andlor posled as public hearings as required by law. If you wish 10 speak
10 any item, please Jill oullhe "Requesllo Speak Form" avaiwble in Ihe lobby and submil it 10 Ihe City Clerk prior
10 Ihe meeting.
16A. PUBLIC HEARING - REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS
INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE
MAINTENANCE DISTRICT lOT A Y RANCH - SPA ONE, VILLAGES I & 5]) PURSUANT TO THE
PROVISIONS OF THE "MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982", FOR THE
Agenda
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September 15, 1998
PURPOSE OF FINANCING CERT AINPUBLIC SERVICES THROUGH THE LEVY OF A SPECIAL
TAX TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES - On July 28, 1998, Council
approved the Resolution of Intention to form Community Facilities District No. 97-1 and set the public
hearing for September 1, 1998. This district will fund the perpetual operation and maintenance of open space
slopes, drainage channels, detention basins, medians and parkways ofOtay Ranch SPA 1, Villages 1 and 5.
Tonight's action will continue the formal proceedings leading to the establishment of CFD No. 97-1. Staff
recommends approval of the resolution. (Director of Public Works) Continued from September I. 1998.
B. RESOLUTION 19157 - MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY FACILITIES
DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE,
VILLAGES 1 & 5]).
C. RESOLUTION 19158 - FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1
& 5] AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED
ELECTORS.
17A. PUBLIC HEARING - REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS
INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) PURSUANT TO THE PROVISION OF THE "MELLO-ROOS
COMMUNITY FACILITIES ACT OF 1982", FOR THE PURPOSE OF FINANCING CERTAIN
PUBLIC SERVICES THROUGH THE LEVY OF A SPECIAL TAX TO PAY FOR ALL OR A
PORTION OF SUCH PUBLIC SERVICES AND THE INTENT TO AUTHORIZE A SPECIAL TAX
TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES - On July 28, 1998, Council
approved the Resolution of Intention to form Community Facilities District No. 97-2 and set the public
hearing for September 1, 1998. This district will fund the perpetual operation, maintenance and monitoring
of the Otay Ranch Habitat Preserve. Tonight's action will continue the formal proceedings leading to the
establishment of Community Facilities District No. 97-2. Staff recommends approval of the resolutions.
(Director of Public Works) Continued from September I. 1998
B. RESOLUTION 19159 - MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY FACILITIES
DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT).
C. RESOLUTION 19160 - FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
97-2 (PRESERVE MAINTENANCE DISTRICT) AND AUTHORIZING THE SUBMITTAL OF LEVY
OF SPECIAL TAXES TO THE QUALIFIED ELECTORS.
18A. PUBLIC HEARING - REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS
INTENTION TO EST ABLISH COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN
SPACE MAINTENANCE DISTRICT lOT A Y RANCH, LLC-OVP-SPA ONE, VILLAGES 1 WEST,
2,2 WEST, 6,7 & PLANNING AREA 12]) PURSUANT TO THE PROVISIONS OF THE "MELLO-
ROOS COMMUNITY FACILITIES ACT OF 1982", FOR THE PURPOSE OF FINANCING
CERTAIN PUBLIC SERVICES THROUGH THE LEVY OF A SPECIAL TAX TO PAY FOR ALL
OR A PORTION OF SUCH PUBLIC SERVICES AND THE INTENT TO AUTHORIZE SPECIAL
TAX TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES - On July 28, 1998,
Council approved the Resolution of Intention to form Community Facilities Districts Nos. 98-1 and set the
public hearing for September 1. 1998. This district will fund the perpetual operation and maintenance of
open space slopes, drainage channels, detention basis, medians and parkways built in conjunction with Otay
Ranch SPA One, Villages 1 and 5 but providing benefit to areas located outside SPA One. Tonight's action
will continue the formal proceedings leading to the establishment of Community Facilities Districts Nos. 98-
1. Staff recommends approval of the resolution. (Director of Public Works) Continued from September
I. 1998
Air Pollution Co-otfol Distria--(:APCD), througll-the GMOC annual review process, to define reporting
requirements, and the GMOC also agreed to receive air quality reports during the 1996 and 1997 annual
reviews under the spirit of the proposed, revised Air Quality Threshold. Staff is returning the amendment
for fonnal public hearing and adoption which requires amendments to the Growth Management Ordinance,
and to the Qrowth Management Program and the Threshold/Standards Policy. Staff recommends placing
the ordinance on first reading and approval of the resolution. (Director of Planning)
Agenda
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September 15, 1998
B. RESOLUTION 19161 - MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE COMMUNITY FACILITIES DISTRICT REPORT FOR
COMMUNITY FACILITIES DISTRICT NO, 98-1 (INTERIM OPEN SPACE MAINTENANCE
DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST, 2, 2 WEST, 6, 7, &
PLANNING AREA 12]).
C. RESOLUTION 19162 - ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 98-1
(INTERIM OPEN SPACE MAINTENANCE DISTRICT lOT A Y PROJECT, LLC-OVP-SPA ONE,
VILLAGES 1 WEST, 2, 2 WEST, 6, 7, & PLANNING AREA 12]) AND AUTHORIZING THE
SUBMITTAL OF LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERT AIN SERVICES TO
THE QUALIFIED ELECTORS.
19A. PUBLIC HEARING - REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS
INTENTION TO EST ABLlSH COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN
SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - SPA TWO,
VILLAGES 6 & 7]) PURSUANT TO THE PROVISIONS OF THE "MELLO-ROOS COMMUNITY
FACILITIES ACT OF 1982", FOR THE PURPOSE OF FINANCING CERTAIN PUBLIC SERVICES
THROUGH THE LEVY OF A SPECIAL TAX TO PAY FOR ALL OR A PORTION OF SUCH
PUBLIC SERVICES AND THE INTENT TO AUTHORIZE A SPECIAL TAX TO PAY FOR ALL
OR A PORTION OF SUCH PUBLIC SERVICES - On July 28,1998, Council approved the Resolution
of Intention to fOfm Community Facilities Districts Nos. 98-2 and set the public hearing for September 1,
1998. This district will fund the perpetual operation and maintenance of open space slopes, drainage
channels, detention basins, medians and parkways built in conjunction with Otay Ranch SPA One, Villages
1 and 5 but providing benefit to the areas located outside SPA One. Tonight's action will continue the
formal proceedings leading to the establishment of Community Facilities District Nos. 98-2. Staff
recommends approval of the resolution. (Director of Public Works) Continued from Sentember 1. 1998
B. RESOLUTION 19163 - MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMl\fiJNITY FACILITIES
DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DlSTR1CT [MCMILLIN - D.A.
AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7]),
C. RESOLUTION 19164 _ FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO, 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D,A. AMERICA,
OTAY _ SPA TWO, VILLAGES 6 & 7]) AND AUTHORIZING THE SUBMITTAL OF LEVY OF
SPECIAL TAXES TO THE QU ALlFlED ELECTORS,
20. PUBLIC HEARING - PCA-98-08 & PCM-98-37, CITY-INITIATED PROPOSAL TO AMEND THE
GROWTH MANAGEMENT ORDINANCE; THE GROWTH MANAGEMENT PROGRAM; AND
THE THRESHOLD/ST ANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMISSION
POLICY, TO ENACT A REVISED AIR QUALITY THRESHOLD STANDARD. In 1996, the Air
Pollution Control District (APCD) recommended to the Growth Management Oversight Commission
(GMOC) that the City's Air Quality Threshold Standard be changed from an annual assessment of local
growth impacts on regional air quality, to an assessment of local air quality management activities. The
proposed amendment to the Air Quality Threshold Standard was initially presented to the City Council at
the April 25, 1996, GMOC workshop. The proposed amendment was approved in concept by Council. and
staff was directed to return the item for formal public hearing and adoption. Staff has since worked with the
Air Pollution Control District (APeD). through the GMOC annual review process, to define reporting
requirements, and the GMOC also agreed to receive air quality reports during the 1996 and 1997 annual
reviews under the spirit of the proposed, revised Air Quality Threshold. Staff is returning the amendment
for formal public hearing and adoption which requires amendments to the Growth Management Ordinance,
and to the Orowth Management Program and the Threshold/Standards Policy. Staff recommends placing
the ordinance on first reading and approval of the resolution. (Director of Planning)
Agenda
-7-
Septemher 15, 1998
A. ORDINANCE 2748 - AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION
19.09.040 J, OF THE CHULA VISTA MUNICIPAL CODE TO ENACT A REVISED AIR QUALITY
THRESHOLD STANDARD. (first readinl!)
B. RESOLUTION 19173 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AMENDING SECTION 3.11.1 OF THE CITY'S GROWTH MANAGEMENT
PROGRAM, AND THE AIR QUALITY THRESHOLD STANDARD OF THE CITY'S
THRESHOLD/STANDARDS AND GROWTH MANAGEMENT OVERSIGHT COMMISSION
POLICY.
BOARD AND COMMISSION RECOMMENDATIONS
This is the time the City Council will consider items which have been forwarded to them for consil/eration by one
ofthe City's Boards, Commissions, andlor Committees.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the
Council, staff, or members of the general public. The items will be considered individually by the Council and staff
recommendations rtUly in certain cases be presented in the alternative. Those who wish to speak, please fill out a
"Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting.
None submitted.
ITEMS PULLED FROM THE CONSENT CALENDAR
This is the time the City Council will discuss items which have been removed from the Consent Calendar.
Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers.
OTHER BUSINESS
21. CITY MANAGER'S REPORTlS)
A. Scheduling of meetings.
22. l\IAYOR'S REPORTlS)
A. Ratification of appointments:
Human Relations Commission - Anthony J. Jemison (to fill a vacancy created by Commissioner
Slovinsky. whose second term expired on June 3D, 1998).
Resource Conservation Commission - Steve Castaneda (to fill an unexpired first term created by
Commissioner McAlister, who resigned on February 24, 1998).
B.
C.
23.
Border-Free Telecommunications Zone Proposals.
tJf~~H"'J:;B~r&f
COUNCIL COMMENTS
Agenda
-8-
September 15, 1998
ADJOURNMENT
The meeting will adjourn to (a closed session and thence to) the regular City Council meeting on September 22,
1998 at 6:00 p.m. in the City Council Chamhers.
\ ,
Tuesday, Sepliomber 15, 1998
6:00 p.m. V
(immediately following the City Council Meeting)
Council Chambers
Public Services Building
CHULA VISTA CITY COUNCIL CLOSED S:';SSION AGENDA
Effective April 1, 1994, there have been new amendments to the Brown Act. Unless the City Allomey, the City
Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following
items of business which are pemlilled by law to be the subject of a closed session discussion, and which the Council
is advised should be discussed in closed session to best protect the interests of the City. The Council is required by
law to return to open session, issue any reports of final aclion taken in closed session, and the votes taken.
However, due to the Iypicallenglh of time taken lip hy closed sessions, the videolaping will be temlinated at this
point in order to save costs so thatlhe Council's relllrn from closed session, reports of final action taken, and
atfjournment will not be videolaped. Nevertheless, Ihe report of final aclion taken will be recorded In Ihe minutes
which will be available in the City Clerk's Office.
CONFERENCE WITH LEGAL COUNSEL REGARDING:
. Existing litigation pursuant to Government Code Section 54956.9 (a)
1. Gillespie v. City of Chllla Vista
2. Fritsch v. City of Chllla Vista
. Significant exposure to litigation pursuant to Government Code Section 54956.9(b)
None
. Initiation of litigation pursuant to Government Code Section 54956.9(c)
None
CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8
. None
CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6
. . POA Negotiations.
Memorandum
DATE:
September 11, 1998
FROM:
Mayor and City Councilmembers
Beverly A. Authelet, City Cler~
.."
TO:
SUBJECI':
Additions to the Council Agenda for September 15, 1998
The Printer had some' problems with their copiers yesterday which resulted in some pages
being omitted. Not knowing whether your packet is correct or not, we are sending out
corrected reports in which we have found problems. Included are the following:
Tab No.5
Pages 5A-l, 5B-l, 5C-I, and 5D-l through 5D-3
Tab No. 6
Pages 6-1 through 6-3
Tab No.7
Pages 7A-l through 7A-13; 7B-I through 7B-6; and 7C-l through 7C-
5 (NOTE: Pages 7A-12 and 7A-13 are new; it was not included in
your original packet)
Tab No.8
Pages 8-1 and 8-2
Tab No. 13
Pages 13-1 through 13-50; 13A-I and 13A-2; and 13B-l through 13B-
3
Tab No. 22
Pages 22C-l (NOTE: This is new; it was not included in your
original packet)
If you have any questions or you find other pages wrong, please given me a call.
September 10, 1998
SUBJECT:
The Honorable Mayor and City Council ~
David D. Rowlands, Jr., City Managery~~ /
City Council Meeting of September 15, 1998
TO:
FROM:
This will transmit the agenda and related materials for the regular City Council meeting of Tuesday,
September 15, 1998. Comments regarding the Written Communications are as follows:
Sa. This is a letter from the City Attorney stating that to the best of his knowledge from
observance of actions taken in Closed Session on 9/1/98, there were no actions taken which
are required under the Brown Act to be reported.
IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED.
5b/c IT IS RECOMMENDED THAT CHESTER DEVORE'S RESIGNATION FROM THE
BOARD OF ETHICS AND PATRICIA AGUILAR'S RESIGNATION FROM THE
PLANNING COMMISSION BE ACCEPTED WITH REGRET AND THAT THE CITY
CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY
ACT IN THE CLERK'S OFFICE AND THE PUBLIC LIBRARY.
5d. This is a letter from the homeowners on the north end of 1400 Kim Place, requesting
~emoval of a picnic table and cover at the end of First A venue in the SDG&E Park, and
installation of lights in the parking lot at the southern end of First A venue. The letter also
c; details some problems residents have experienced with disruptive adults and juveniles using
~ ~ the park. IT IS RECOMMENDED THAT THIS REQUEST BE REFERRED TO POLICE
~O AND THE PARKS DIVISION, AS WELL AS THE PARKS AND RECREATION
COMMISSION, FOR REVIEW AND RECOMMENDATION TO COUNCIL.
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CllY OF
CHUlA VISfA
OFFICE OFTHE CITY ATTORNEY
Date:
September 2, 1998
To:
The Honorable Mayor and City Council
John M. Kaheny, City Attorney~~
Report Regarding Actions Taken ~n Closed
for the Meeting of 9/1/98
Session
From:
Re:
The city Council met in Closed Session on 9/1/98 to discuss:
Existing litigation pursuant to Government Code section 54956.9:
Granite Construction Company v. city of Chula Vista; Fritsch v.
City of Chula Vista and Davis v. Authelet.
The City Attorney hereby reports to the best of his knowledge from
observance of actions taken in the Closed Session in which the City
Attorney participated, that there were no reportable actions which
are required under the Brown Act to be reported.
JMK:lgk
C:\lt\clossess.no
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276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910. (619) 691-5037. FAX (619) 409-5823
@Pool-Conoume,AoIey<:ledPap.'
August 25, 1998
Beverly Authelet, City Clerk
City of Chula Vista,
276 Fourth Avenue
Chula Vists, Ca 91910
Dear Ms. Authelet,
This letter is to inform the City of Chula Vista that I am resigning as a
member of the Ethics Committee, effective immediately.
My decision was based on the fact that I had a stroke on June 1, 1998. I
do not feel that I can be of any assistance to the City or to the Ethics
Committee at this time.
Please accept my thanks for the opportunity to 'have been of service to the
community.
Sincerely,
~l:V;&v~
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Patricia Aguilar
26 August, 1998
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,ltJI. AUG 2 7 ~ !
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, '('
Hon. Shirley Horton, Mayor
City ofChula Vista
276 Fourth Ave.
Chula Vista, Ca 91910
Dear Shirley,
I regretfully inform you that I must resign from the Planning Commission. The pressures
of my personal and work life leave me without sufficient time to devote to this important
Commission. I deeply appreciate your faith in me, and hope I have made a small
contribution to the City. I am willing to continue to serve on the Commission until my
replacement takes office.
Please note that this action has no affect on my service on the Design Review Committee.
Finally, I have two recommendations for my successor, Robert Villareal and J.C.
Rodriguez. Either of them will make a conscientious and fair-minded Planning
Commissioner.
Sincerely,
1~cJa
Patricia Aguilar
cc: Bob Leiter
COUNCIL
CITY MANAGER
CITY CLERK
WRI1TEN COMMUNlCAnONS
5~-1
1048 Surrey Drive
Bonita, California 91902
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AUGUST 11, 1998
CITY OF CHULA VISTA
ATTN: HONORABLE MAYOR SHIRLEY HORTON
,
276 FOURTH A VB
CHULA VISTA CA 91910
Dear Ms. Horton:
We the homeowners of the north end of 1400 Klln Place need your help! For
years we have been subject to drunken, disruptive adults, kids, gang types,
etc. etc. The San Diego Gas and Electric Park (at the south end of 1400
First Ave) has a picnic table with a cover over it. Usually morning to night,
we witness excessive drinking of alcohol, men urinating, drug deals and
kids/adults using drugs. The parking lot (at the end of First Ave) in the park,
has no lights. Vehicles park there all hours of the night playing loud nmsic,
drinking, using drugs, etc. We have all called the police numerous times,
however, the problem is still there.
After school, the kids from Castle Park Middle and High School meet there
at the picnic bench; drinking, using and selling drugs. There have also been
numerous gang fights around the picnic table area
We want the picnic taOle and cover removed and have lights put in the
parking lot. The park is for families and kids to enjoy. The gang types have
destroyed our park!! They have destroyed all the play equipment. We would
like our park to look like a family/kids park, instead of a hoodlum park. We
don't want our kids seeing all the drunks, druggies, gang types, just hanging
out. We are all disgusted seeing these types hanging around the park tables all
hours of the day/night.
Please remove tb.e picnic table and cover at the end of First Ave in SDG&E
Park. And put lights in the parking lot/park at the southern end of First Ave.
If the table is removed and the park is lit at night, it would eliminate the
hanging out during the day and late at night. Also, the police would be ,
. 5D-/ r, .;~
WRITTEN COMMUNlCA nONS c!';
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getting less caUS from the families on Kim Place to ge~ rid of the drinkers,
druggies, and gangs etc. Also, it could help reduce alot of the broken beer
bottles in the park and at the end of our street.
You can verify with the Chula Vista Police, our many numerous calls and
complaints over the last 15 years.
. .
The Chula Vista Police suggested we write to you to get rid of the picnic
tables and put lights in the parking lot. Please help us!!
Thank you,
THE HOMEOWNERS ON KIM PLACE
cc: C().Jncil
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~E.~;\:) REbDlNG AND ADOl:TION
ORDINANCE No.2 71/5
-'
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES
DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT #35 [SUNBOW II])
WHEREAS, the CITY COUNCil. of the CITY OF CHULA VISTA, CALIFORNIA (the
"Legislative Body"), has initiated proceedings, held a public hearing, conducted an election and received
a favorable vote from the qualified electors relating to the levy of a special tax in a community facilities
district, all as authorized pursuant to the terms and provisions of the "MelIo-Roos Community Facilities
Act of 1982", being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of
California (the" Act"). This Community Facilities District is designated as COMMUNITY F ACll..ITIES
DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. :i5 [SUNBOW ll]) (the
"District").
BE IT ORDAINED AS FOLLOWS:
SECTION 1. The above recitals ate all true and correct.
SECTION 2. This Legislative Body does, by the passage of this ordinance, authorize the levy
of special taxes at the rate and formula as set forth in Exhibit "A" attached hereto (the "Special Tax
Formula "), referenced and so incorporated.
SECTION 3. This Legislative Body is hereby further authorized, by Resolution, to determine
the specific special tax rate and amount to be levied for the then current tax year or future tax years, except
that the special tax rate to be levied shall not exceed the maximum special tax rate as authorized pursuant
to the Special Tax Formula, but the special tax may be levied at a lower rate.
SECTION 4. The proceeds of the above authorized and levied special tax may only be used to
as authorized by the Special Tax Formula.
The proceeds of the special tax shall be levied onl y so long as needed for its purpose, and shall
not be used for any other purpose.
SECTION 5. The above authorized special tax shall be colIected in the same manner as ordinary
ad valorem taxes are colIected and shall be subject to the same penalties and the same procedure, sale and
lien priority in case of delinquency as is provided for ad valorem taxes; however, as applicable, this
legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as
necessary. .
SECTION 6. The above authorized special tax shall be secured by the lien imposed pursuant to
Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall
be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall conrinue
in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in
0-/
INFORMATION PACKET
SCANNED AT FIRST READING
OF THIS ORDINANCE ON:
SeE? c:;:;/ /998
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"-"^ND nt"ADlI-.JG ANi.; MLJ.J I:',"
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ORDINANCE NO. 2746
AN ORDINANCE GRANTING TO SAN DIEGO GAS & ELECTRIC
COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO
CONSTRUCT, MAINTAIN AND USE POLES, WIRES, CONDUITS AND
APPURTENANCES, INCLUDING COMMUNICATION CIRCUITS,
NECESSARY OR PROPER FOR TRANSMITTING AND DISTRIBUTING
ELECTRICITY TO THE PUBLIC FOR ANY AND ALL PURPOSES IN,
ALONG, ACROSS, UPON, UNDER, AND OVER THE PUBLIC
STREETS AND PLACES WITHIN THE CITY OF CHULA VISTA
WHEREAS, in 1972, in accordance with Article XIV (now
Article XII) of the City Charter, City granted an electric
franchise ("Original Franchise") to San Diego Gas & Electric
("SDG&E") pursuant to Ordinance No. 1427; and
WHEREAS, the Original Franchise has expired and city
staff and SDG&E representatives have negotiated the terms for an
extension of the franchise through June 30, 2003 ("New
Franchise"); and
WHEREAS, on August 11, 1998, pursuant to City Council
Resolution No. 19137, the City approved a resolution of intention
to consider the adoption of the New Franchise and set a public
hearing for such purpose on September 1, 1998 at 4:00 p.m.; and
WHEREAS, on September 1, 1998, a duly noticed public
hearing was held on the New Franchise, and all public testimony
was reviewed and considered by the city Council, including the
City Manager's recommendation to approve the New Franchise, and
the City Council approved the placement of this ordinance
approving the New Franchise on first reading; and
WHEREAS, on September 15, 1998, the City Council
considered the New Franchise for second reading and adoption.
NOW, THEREFORE, the city Council of the city of Chula
Vista does hereby ordain as follows:
A. PROTESTS OVERRULED.
Any and all protests or objections presented to the granting
of the New Franchise are hereby overruled.
B. TERMS AND CONDITIONS OF NEW FRANCHISE.
SECTION 1.
DEFINITIONS.
Whenever in this ordinance the words or phrases
hereinafter in this section defined are used, they shall have the
respective meaning assigned to them in the following definitions
7/l-/
INFORMATION PACKET
SCANNED AT FIRST READING
OF THIS ORDINANCE ON:
ScP 01 1998
(unless, in the given instance, the context wherein they are used
shall clearly import a different meaning) .
(a) The word "grantee" shall mean San Diego Gas &
Electric Company, and its lawful successors or assigns;
(b) The word "city" shall mean the City of Chula Vista,
a municipal corporation of the State of California, in its
present incorporated form or in any later reorganized,
consolidated, enlarged or reincorporated form;
(c) The word "streets" shall mean the public streets,
ways, alleys and places as the same now or may hereafter exist
within said city, including state highways, now or hereafter
established within said city, and freeways hereafter established
within said city.
(d) The phrase "poles, wires, conduits and
appurtenances" shall mean poles, towers, supports, wires,
conductors, cables, guys, stubs, platforms, crossarms, braces,
transformers, insulators, conduits, ducts, vaults, manholes,
meters, cut-outs, switches, communication circuits, appliances,
attachments, appurtenances and any other property located
or to be located in, upon, along, across, under or over the
streets of the city, and used or useful in the transmitting
and/or distributing of electricity.
(e) The phrase "construct, maintain, and use" shall
mean to construct, erect, install, lay, operate, maintain, use,
repair, or replace.
(f) The phrase "gross receipts" shall mean all gross
operating revenues received by grantee from the sale of
electricity to grantee's customers with points of service
within the corporate limits of the City (including, but not
limited to, sales to military reservations with points of service
within the city's corporate limits) which are credited in Account
Nos. 440, 442, 444, 445 and 446 of the current Uniform System of
Accounts of the Federal Power Commission as adopted by the
California Public utilities commission ("CPUC") or similar
superseding accounts less the following:
1. any uncollectible amounts; and
2. any refunds or rebates made by grantee to
such customers pursuant to California Public
Utilities commission orders or decisions.
(g) The phrase "total system gross receipts" shall mean
all gross operating revenues received by grantee from the sale of
electricity to grantee's customers within its entire service
territory which are credited in Account Nos. 440, 442, 444, 445
and 446 of the current Uniform System of Accounts of the Federal
2
7fl--~
Power Commission as adopted by the California Public utilities
Commission or similar superseding accounts, less uncollectible
amounts and less any refunds or rebates made by grantee to such
customers pursuant to California Public utilities commission
orders or decisions.
(h) The phrase "allocation ratio" shall, unless and
until otherwise modified by the California Public utilities
Commission, mean a numerical ratio determined by the proportion
which the number of grantee's electric customers in the city
bears to all of grantee's electric customers throughout its
entire electric service territory.
(i) The phrase "Utility Users' Tax" shall mean the
local taxes added to utility bills of residential and commercial
utility customers as defined in Chula vista Municipal
Code, Chapter 3.44 entitled "utility Users' Tax".
SECTION 2.
GRANT OF FRANCHISE.
The franchise to construct, maintain and use poles, wires,
conduits and appurtenances, including communication circuits,
necessary or proper for transmitting and distributing electricity
to the public for any and all purposes in, along, across, upon,
under, and over the public streets, ways and places within said
city is hereby granted to San Diego Gas & Electric Company, its
successors and assigns. This franchise is granted upon each and
every condition herein contained, and shall ever be strictly
construed against grantee. Nothing shall pass by the franchise
granted hereby to grantee unless it be granted in plain and
unambiguous terms. Each of said conditions is a material and
essential condition to the granting of said franchise.
SECTION 3.
TERM.
Said franchise shall commence on July 1, 1998 and shall
expire on June 30, 2003. Throughout such term said franchise
shall endure in full force and effect until the same shall, with
the consent of the Public Utilities Commission of the State of
California, be voluntarily surrendered or abandoned by the
grantee, or until the state or some municipal or public
corporation thereunto duly authorized by law shall purchase by
voluntary agreement or shall condemn and take under the power of
eminent domain, all property actually used and useful in the
exercise of said franchise and situate in the territorial limits
of the state, municipal, or public corporation purchasing or
condemning such property, or until said franchise shall be
forfeited for non-compliance with its terms by the grantee.
SECTION 4.
CONSIDERATION.
(a) Franchise Fees. The grantee of said franchise
3
7(1-3
shall, during the term thereof, pay to the city one and one-tenth
percent (1.1%) of the gross annual receipts of said grantee,
which amount has been held by Decision Nos. 80432 and 80494 of
the Public utilities commission of the State of California to be
the normal level paid to other political subdivisions within the
utility's territory. It is understood that any administrative,
legislative or judicial modification of said franchise fee or the
basis of calculating said fee pursuant to Decision Nos. 80432 and
80494 shall be cause for review and renegotiation of this amount
of franchise fee at any time within the term of this franchise.
(b) utility User's Tax-Collection Services. To the
extent permitted by law, and solely for those customers within
the corporate limits of the city billed directly by grantee
(including customers purchasing power from other electricity
providers), grantee agrees to collect the City's Utility Users'
Tax and remit same to the city on a monthly basis.
(c) Transportation Surcharqe. Grantee shall implement
the surcharge provisions of California Public utilities Code
sections 6351, 6352, 6353 and 6354.1 and remit surcharges
collected to the city. Grantee agrees to refrain from opposing
the applicability of franchise fees (or their equivalent) to
retail electric sales using grantee's electricity distribution
system. Grantee agrees to continue to support some baseline
protection for franchise fees (or their equivalent) to ensure
that municipalities will continue to receive such fees from all
utility providers within their respective municipal boundaries.
SECTION 5.
REPORTS, DATES OF PAYMENT AND CITY AUDITS.
The grantee shall file with the Director of Finance of
said city, within three months after the expiration of the
calendar year, or fractional calendar year, following the date of
the granting hereof, and within three months after the expiration
of each and every calendar year thereafter, a duly verified
statement showing in detail the total gross receipts of such
grantee during the preceding calendar year, or such fractional
calendar year, from the sale of electricity within said city.
Such grantee shall pay to said city by no later than the end of
August of the following calendar year, an amount equal to fifty
percent of the previous year's annual payment, and by no later
than the end of March of the following calendar year an amount
which, when added to the initial 50% payment above, constitutes
the City's annual franchise fee for the preceding calendar year.
By this method of payment, it is contemplated and understood that
grantee is in effect calculating the actual gross receipts once
each year following the end of each year. Accordingly, grantee
shall estimate the percentage due city for the period January
through June based on the previous years payment and shall
calculate the exact amount due for said period and shall remit
4
~-1
the adjusted amount to city no later than the end of March of the
following year. Transportation surcharges collected by grantee
pursuant to section 4(c) shall also be paid in accordance with
this schedule. Any neglect, omission, or refusal by said grantee
to file such verified statement, or to pay said percentage at the
time and in the manner specified, shall be grounds for the
declaration of a forfeiture of this franchise and all rights of
grantee hereunder.
SECTION 6.
COMPLIANCE WITH LAWS.
(a) In General. All facilities or equipment of
grantee that grantee shall construct, maintain and use or remove,
pursuant to the provisions of the franchise granted herein shall
be accomplished in accordance with the ordinances, rules and
regulations of City now or as hereafter adopted or prescribed,
and such rules and regulations as are promulgated under state
law, or orders of the Public utilities Commission or other
governmental authority having jurisdiction in the premises.
(b) Public Information. Grantee shall provide
information to its customers as required by law, or upon request
by customers, regarding utility restructuring, options for
selection of an energy retailer, service options, slamming and
default provider regulations as well as the city's role in the
deregulated industry.
SECTION 7.
ADMINISTRATIVE PRACTICES.
(a) Installation, Maintenance. Repair and Removal of
Facilities. Grantee is herewith charged with the responsibility
of cooperating with city in preparing a manual of administrative
practices which shall govern the installation, maintenance,
repair and removal of grantee's facilities in the streets of city
which shall include, but not be limited to, cathodic protection
practices. Once each year, commencing with the first full
calendar year of the franchise granted herein, it is to be the
joint responsibility of grantee and city to review and update
such administrative practices. Both grantee and city are charged
with the duty to prepare, review, and update such administrative
practices by a method of mutual cooperation which shall take into
consideration the reasonable needs and convenience of each party;
provided that said administrative practices and the terms and
conditions thereof shall be at all times subject to approval of
the City Council as expressed by appropriate legislative action.
Following the preparation of said manual, and its approval by the
city Council, it shall govern the practices of the grantee in its
installation and removal of grantee's facilities in the streets
of City.
(b) System Upqrades. Grantee agrees to include the
city in the early implementation of system-wide enhancements
5
7 fl- :)
(e.g. infrastructure upgrades and ancillary services) to the
extent such inclusion is consistent with grantee's then policy to
prioritize and construct such system enhancements based on the
condition of existing infrastructure in grantee's service
territory.
SECTION 8.
CITY RESERVED POWERS.
(a) City reserves the right for itself to lay,
construct, erect, install, use, operate, repair, replace, remove,
relocate, regrade or maintain below surface or above surface
improvements of any type or description in, upon, along, across,
under or over the streets of the City. City further reserves the
right to relocate, remove, vacate, or replace the streets
themselves. If the necessary exercise of the aforementioned
reserve rights conflicts with any poles, wires, conduits, and
appurtenances of grantee constructed, maintained, and used
pursuant to the provisions of the franchise granted hereby,
whether previously constructed, maintained and used or not,
grantee shall, without cost or expense to city within ninety (90)
days after written notice from the City Manager, or his
designated representative, and request so to do, begin the
physical field construction of changing the location of all
facilities or equipment so conflicting. Grantee shall proceed
promptly to complete such required work.
(b) Irrespective of any other provision of this
ordinance, grantee's right to construct, maintain, and use, or
remove poles, wires, conduits, and appurtenances thereto shall be
subject at all times to the right of the city, in the exercise of
its police power, to require the removal or relocation, to either
overhead or underground locations, of said poles, wires, conduits
and appurtenances thereto at the sole cost and expense of
grantee.
(c) Notwithstanding anything else in this ordinance to
the contrary, the city's right to be an electricity generator
retailer, to the extent permitted by law, shall not be
limited in any manner by the granting of this franchise.
SECTION 9.
UNDERGROUNDING OF FACILITIES.
(a) Presently grantee is engaged in a program of
converting to underground certain of its facilities in accordance
with Decision No.73078 of the California Public utilities
commission. At this time, such decision requires grantee to
budget prior to the end of each calendar year certain sums of
money for said program for the next succeeding year and allocate
these sums to undergrounding projects in the various governmental
jurisdictions throughout grantee's entire electric service
territory on the basis of the number of electric customers in
each governmental jurisdiction.
6
7A --0
(b) Grantee acknowledges and agrees as follows: (1)
as of January 1, 1998 the city's CPUC Rule 20A Fund allocation
balance was $12,926,914.00 (this amount includes an allocation of
$2,166,000 for calendar year 1998; (2) $3,141,000.00 of the
$12,926,914.00 has been allocated and is available for
expenditure to complete the undergrounding projects described in
Exhibit A, Chart 1 ("Existing Projects"), a copy of which is
attached hereto and incorporated herein by reference; and (3) the
remaining balance of $9,785,914.00 of CPUC Rule 20A funds has
been allocated and is available for expenditure on undergrounding
projects as set forth in Exhibit A, Charts 2 through 6 ("Future
proj ects") .
(c) Grantee shall complete the Existing Projects by no
later than December 31, 1999. Grantee agrees to complete the
Future Projects in accordance with the schedule set forth on
Exhibit A, Charts 2 through 6, as long as no third-party
influence impedes the schedule. In the event that in anyone
year, the scheduled project(s) come in under budget, additional
projects from Exhibit A or Exhibit B, titled ("Utility
Undergrounding Program, New Projects to add to the Utility
Undergrounding List" attached hereto, attached hereto and
incorporated herein by reference, may be proposed by the City up
to an amount not to exceed said annual budget; in such event both
parties will use their best efforts to schedule and implement
those projects. In years where less than the budgeted amount is
spent, the balance will be rolled over and spent in the next year
if grantee is the reason for the underspending. In any other
circumstance, the balance will be rolled over, however, it may
not necessarily be spent the next year. Grantee shall complete
all of the projects listed in Exhibit A by December 31, 2004. If
such projects use CPUC Rule 20A Funds of more than $13,141,000,
Grantee shall have no obligation to spend any additional monies.
If such projects use less than $13,141,000, in CPUC Rule 20A
Funds to complete, then, prior to December 31, 2004, Grantee
shall also spend the positive difference between $13,141,000 and
the cost of the Exhibit A projects, on Exhibit B projects
identified by the City. In the event that third party actions or
omissions prevent Grantee's adherence to this timetable, Grantee
shall have such additional time as is reasonable (not to exceed
the duration of the third party caused delay(s)) to fulfill its
utility undergrounding obligations hereunder.
(d) The city must create the undergrounding districts
in a timely manner to give all participants sufficient time to
design and build on schedule as designated in Exhibit A.
Changes in the order of project development or the projects
listed on Exhibit A, Charts 2 through 6, must be mutually agreed
upon at least 12 months in advance, unless the change in
schedule or substitute project has already been identified and
designated as a part of the additional list of projects in
7
7R-7
Exhibit B. The City must take an active role in requiring
customers to complete their work and to involve telephone and
cable companies in the projects. If right-of-way becomes an issue
with any project, grantee may seek help from the City to resolve
the issues.
(e) Grantee agrees to apply for approval of budgeted
expenditures of CPUC Rule 20A funds to the extent mandated by the
CPUC each year as necessary to implement its obligations under
this section. Grantee is responsible for its own actions and
those things within its control. Grantee will not be held liable
for nonperformance by telephone system operators, or cable system
operators, city or customers.
(f) In addition to its obligation to spend existing
balances of CPUC Rule 20A Funds, as provided above, during the
term of this franchise, Grantee agrees to allocate (but not
spend) additional CPUC Rule 20A funds to the city as follows:
1999 - $2,000.000.00
2000 - $2,000,000.00
2001- $2,000,000.00
2002 - $2,000,000.00
2003 - $2,000,000.00
Grantee does not commit to spend such new allocations
during the franchise term because Grantee's only commitment to
spend or otherwise dispose of 20A funds during the term of this
Franchise is set forth in section 9(c), above. Grantee shall not
reallocate such monies for any other purpose except with the
agreement of the City.
(g) This section shall not be deemed in any way to be
an impairment of city's rights as set forth in Section 8 of this
ordinance. Nothing contained herein is intended to prevent
grantee from informing City and the California Public utilities
Commission of then existing or foreseeable economic conditions or
other factors which in the opinion of grantee make unwise the
granting in whole or in part, of the particular annual
application.
(h) This section is intended only to be a measure of
portion of the consideration to be paid by grantee to city for
the rights and privileges granted herein and therefore it does
not create or confer any rights or obligations to anyone other
than city or grantee.
8
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SECTION 10.
HOLD HARMLESS.
Except to the extent caused solely by any negligent, grossly
negligent or willful misconduct of the City or its officers or
employees, Grantee shall indemnify, save, and hold harmless, City
and any officers and employees thereof against and from all
damages, judgments, decrees, costs and expenditures which city,
or such officer or employee, may suffer, or which may be
recovered from, or obtainable against city, or such officer or
employee, for, or by reason of, or growing out of or resulting
from the exercising by grantee of any or all of the rights or
privileges granted hereby, or by reason of any act or acts of
grantee or its servants or agents in exercising the franchise
granted hereby, and grantee shall defend any suit that may be
instituted against city, or any officer or employee thereof, by
reason of or growing out of or resulting from the exercise by
grantee of any or all of the rights or privileges granted hereby,
or by reason of any act or acts of grantee, or its servants or
agents, in exercising the franchise granted hereby.
SECTION 11.
REPAIR COSTS.
Grantee shall pay to city on demand the cost of all repairs
to city property made necessary by any of the operations of
grantee under the franchise granted hereby, provided,
however, that grantee may make repairs to streets, sidewalks,
curbs and gutters itself at its own cost in accordance with City
specifications if the same can be done without undue
inconvenience to the public use of the streets.
SECTION 12.
FORFEITURE AND OTHER REMEDIES.
If grantee shall fail, neglect or refuse to comply with any
of the conditions of the franchise granted hereby, and if such
failure, neglect or refusal shall continue for more than thirty
(30) days after written demand by the city Manager for compliance
therewith, then city, by the City Council, in addition to all
rights and remedies allowed by law, thereupon may terminate the
rights, privilege, and franchise granted in and by this
ordinance, and all the rights, privileges and the franchise of
grantee granted hereby shall thereupon be at an end. Thereupon
and immediately, grantee shall surrender all rights and
privileges in and to the franchise granted hereby. No provision
herein made for the purpose of securing the enforcement of the
terms and conditions of the franchise granted hereby shall be
deemed an exclusive remedy or to afford the exclusive procedure
for the enforcement of said terms and conditions, but the
remedies and procedure outlined herein or provided, including
forfeiture, shall be deemed to be cumulative.
9
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SECTION 13.
ACOUISITION AND VALUATION.
Nothing in this ordinance or in the franchise granted hereby
shall be construed as in any way impairing city's rights to
acquire property of grantee through the exercise of city's power
of eminent domain, or through voluntary agreement between city
and grantee. In the event that City chooses to exercise its
power of eminent domain, it shall do so in accordance with the
procedures provided by the general law of the State of California
for the condemnation of public utility property. The valuation
of such property for condemnation purposes shall be made in
accordance with such general law.
SECTION 14.
AUTHORITY FOR GRANT.
Notwithstanding any other provision herein contained, this
franchise is granted solely and exclusively under Section 1200,
1201, 1202, 1203, 1204, 1205 and 1206 of Article XII of the
Charter of the City of Chula vista, and Chapter 5.30 of the Chula
Vista Municipal code and no other authority. This franchise is
granted subject to any and all additional terms and conditions
contained therein.
SECTION 15.
EFFECTIVE DATE.
Subject to the requirements of section 17, this ordinance
shall become effective thirty days after its final passage unless
superseded by a referendum petition filed as provided by law.
Upon the effectiveness of this ordinance, the commencement of the
term shall be July 1, 1998 as provided in Section 3.
SECTION 16.
PUBLICATION COSTS.
The grantee of said franchise shall pay to the city a sum of
money sufficient to reimburse it for all publication expenses
incurred by it in connection with the granting thereof;
such payment to be made within thirty (30) days after the City
shall have furnished such grantee with a written statement of
such expenses.
SECTION 17.
WRITTEN ACCEPTANCE.
The franchise granted hereby shall not become effective
until written acceptance thereof, in a form approved by the city
Attorney, shall have been filed by the grantee with the City
Clerk.
SECTION 18.
PUBLICATION.
The City Clerk shall cause this ordinance to be published
once within fifteen (15) days after its passage in the Chula
vista Star News, a newspaper of general circulation published and
10
7A-0
circulated in said City.
SECTION 19.
MISCELLANEOUS OBLIGATIONS.
(a) Notice of Siqnificant Transactions. Grantee
agrees to provide as much reasonable advance notice as is
legally permissible to the City regarding any mergers, buyouts,
spin-offs or other transactions materially affecting the nature
of the entity to which the City grants this franchise. Such
notice shall be consistent with grantee's obligations under the
law relating to disclosures and the limitations placed upon
grantee.
(b) Economic Development. To the extent recovery of
the expense through rates is allowed by the CPUC regulations,
grantee agrees to cooperate, in good faith, on reasonable
economic development activities which may include, but not be
limited to, deferral or waiver of hook-up fees, assistance in the
financing of upgraded infrastructure and/or offering of power
incentives to companies that meet city-defined economic
development or employment criteria.
GRANTEE'S ACCEPTANCE:
By its signature hereto, Grantee accepts the franchise
granted hereby and agrees to be bound and abide by all covenants,
terms and conditions contained herein. Grantee warrants and
represents that it is authorized to enter into this Franchise
Agreement/and that the party executing this franchise on its
behalf isiduly authorized to do so, without the need for any
further ction.
~/)9!' 141
ACKNOWLEDGED AND AGREED
San Diego Gas & Electric Company
By:
Title:
H:\shared\attorney.sdge.elc
11
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EXHIBIT A TO ELECTRIC
FRANCHISE AGREEMENT
CITY OF CHULA VISTA
UTJUTY UNDERGROUNDING PROGRAM
UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED BY END OF 1999:
DISTRICT
STREET LIMITS NUMBER
E Street Broadway to Tayon Lane 123
hIIain Street Industrial Boulevard to Third Avenue 126
:>lay Lakes Road Ridgeback to Apache Drive 129
Palomar Street 1-5 to Industrial Boulevard 127
FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2000:
ESTIMATED
STREET LIMITS COST
Broadway "CO Street to "E" Street $513,000
Fourth Avenue "H" Street to "L" Street $1,000,000
Orange Avenue Palomar StreeI to Fourth Avenue $440,000
TOTAL
$1,953,000
FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2001:
STREET
lakeS oad
LIMITS
onna oad to mlno
ESTIMATED
COST
rro rande
TOTAL
$2,250,000
FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE 'COMPLETED IN 2002:
, ESTIMATED
STREET , LIMITS COST
Fourth Avenue . "L" Street to Ora_~e Avenue $1,150,000
"L"Street Monserate Avenue to Nacion Avenue $340,000
"L"Street Broadwav to Third Avenue $700,000
TOTAL
$2, 190,000
FUTURE: UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2003:
ESTIMATED
STREET LIMITS COST
Olav Lakes Road Camino Del Cerro Grande to Ridoeback Road $2,100,000
TOTAL
$2,100,000
FUTURE: UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2004:
I ESTIMATED
STRE:ET LIMITS COST
J" Street I East of Broadway to Third Avenue $700,000
J" Street East of Nacion Avenue to West of Lori Lane $290,000
J"Street Third Avenue to First Avenue $475,000
(home\...laov;>lanluudisllUUDSCHED.WB1)
JULY 27.19911
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TOTAL
$1,465,000
.. ...,,' +-,~.......-.--:-... .-
EXHIBIT B TO
ELECTRIC FRANCH
AGREEMENT
UTILITY UNDERGROUNDING PROGRAM
NEW PROJECTS TO ADD TO THE UTILITY UNDERGROUNDING LIST
LENGTH ESTIMATED
STREET LIMITS (Miles) COST
J" Street First Avenue to elo Nolan Avenue 1.08 $950,000
C" Street Broadway to Fourth Avenue 0.50 $625,000
0" Street West End to Second Avenue 1.34 $1,680,871
po Street Second Avenue to Hilltop Drive 0.50 $625.000
G" Street West End to Hilltop Drive 1.86 $2.324.811
,. Street West End to Elm Avenue 1.50 $1.870,265
First Avenue to East End 0.64 $804,924
K" Street West End to Country Club Drive 1.55 $1,941,288
"L" Street First Avenue to Evans Avenue 0.38 $473,485
Moss Street Industrial Blvd. to elo Second Avenue 1.42 $1,n5.568
Naples Street Industrial Blvd. to elo Oleander Avenue 326 $4,071.970
Oxford Street West End to Broadway 0.32 $402,462
wlo Fifth Avenue to Neptune Drive 220 $2,746,212
Fifth Avenue North End to "W Street 1.40 $1,751.894
"r Street to Orange Avenue 1.89 $2,367,424
~econd Avenue nlo Bavview Way to "L" Street 2.56 $3,196.023
Naples Street to Orange Avenue 0.97 $1,207,386
First Avenue Rower Street to "L" Street 1.93 $2,414,773
Naples Street to South End 1.00 $1,254,735
.loOT AL 26.31 $32,484.091
NOTE: VERIFICATION OF COST ESTIMATES TO BE APPROVED BY SOG&E AT A
LATER DATE. OUR COST ESTIMATES ARE BASED ON $1,250,000 PER MILE.
(H:\HOME\ENGINEERIADVPLAN\UTILUNO.WB1 )
1/l,/3
ORDINANCE NO.
2747
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AN ORDINANCE GRANTING SAN DIEGO GAS ELECTRIC COMPANY,
ITS SUCCESSORS SIGNS, THE FRANCHISE TO INSTALL,
MAINTAIN AND PIPES AND APPURTENANCES FOR TRANSMITTING
AND DISTRIBUTING GAS FOR ANY AND ALL PURPOSES UNDER,
ALONG, ACROSS, UPON THE PUBLIC STREETS AND PLACES AS
AS THE SAME NOW OR MAY HEREAFTER EXIST WITHIN THE CITY
OF CHULA VISTA
WHEREAS, in 1972, in accordance with Article XIV (now
Article XII) of the city Charter, City granted a gas franchise
("Original Franchise") to San Diego Gas & Electric (" SDG&E")
pursuant to Ordinance No. 1426; and
WHEREAS, the Original Franchise has expired and City
staff and SDG&E representatives have negotiated the terms for an
extension of the franchise through June 30, 2003 ("New
Franchise"); and
WHEREAS, on August 11, 1998, pursuant to City Council
Resolution No. 19137, the City approved a resolution of intention
to consider the adoption of the New Franchise and set a public
hearing for such purpose on September 1, 1998 at 4:00 p.m.; and
WHEREAS, on September 1, 1998, a duly noticed public
hearing was held on the New Franchise, and all public testimony
was reviewed and considered by the city Council, including the
City Manager's recommendation to approve the New Franchise, and
the City Council approved the placement of this ordinance
approving the New Franchise on first reading; and
WHEREAS, on September 15, 1998, the City Council
considered the New Franchise for second reading and adoption.
NOW, THEREFORE, the city Council of the City of Chula
vista does hereby ordain as follows:
A. PROTESTS OVERRULED.
Any and all protests or objections presented to the granting
of the New Franchise are hereby overruled.
B. TERMS AND CONDITIONS OF NEW FRANCHISE.
SECTION 1.
DEFINITIONS.
Whenever in this ordinance the words or phrases
hereinafter in this section defined are used, they shall have the
respective meanings assigned to them in the following definitions
(unless, in the given instance, the context wherein they are used
shall clearly import a different meaning) :
7 8-: /
INFORMATION PACKET
SCANNED AT FIRST READING
OF THIS ORDINANCE ON:
Sef> 01 ICfQ8
(a) The word "grantee" shall mean San Diego Gas &
Electric Company, and its lawful successors or assigns;
(b) The word "city" shall mean the City of Chula
vista, a municipal corporation of the State of California, in its
present incorporated form or in any later reorganized,
consolidated, enlarged, or reincorporated form;
(c) The word streets" shall mean the public streets,
ways, alleys and places as the same now or may hereafter exist
within said city, including state highways, now or hereafter
established within said city, and freeways hereafter established
within said city;
(d) The word "gas" shall mean natural or artificial
gas, or a mixture of natural and artificial gas;
(e) The phrase "pipes and appurtenances" shall mean
pipes, pipelines, mains, services, traps, vents, vaults,
manholes, meters, gauges, regulators, valves, conduits,
appliances, attachments, appurtenances, and any other property
located or to be located in, upon, along, across, under, or over
the streets of the city, and used or useful in the transmitting
and/or distributing of gas;
(f) The phrase "install, maintain and use" shall mean
to lay, construct, erect, install, operate, maintain, use, repair
or replace;
(g) The phrase "gross receipts" shall mean all gross
operating revenues received by grantee from the sale of gas to
grantee's customers with points of service within the corporate
limits of the city (including, but not limited to, sales to
military reservations with points of service within the City's
corporate limits) which are credited in Account Numbers 480, 481
and 482 of the current Uniform System of Accounts of the Federal
Power Commission as adopted by the California Public Utilities
commission, or similar superseding accounts, less uncollectible
amounts and less any refunds or rebates made by grantee to such
customers pursuant to orders or decisions of the California
Public Utilities commission.
(h) The phrase "utility Users' Tax" shall mean the
local taxes added to utility bills of residential and commercial
utility customers as defined in Chula Vista Municipal Code,
Chapter 3.44 entitled "utility Users' Tax".
SECTION 2.
GRANT OF FRANCHISE.
The franchise to install, maintain and use in the
streets of said city all pipes and appurtenances for transmitting
and distributing gas to the public for any and all purposes
2
78 -:J-
within said city is hereby granted to San Diego Gas & Electric
Company, its successors and assigns. This franchise is granted
upon each and every condition herein contained, and shall ever be
strictly construed against grantee. Nothing shall pass by the
franchise granted hereby to grantee unless it be granted in plain
and unambiguous terms. Each of said conditions is a material and
essential condition to the granting of said franchise.
SECTION 3.
TERM.
said franchise shall commence on July 1, 1998 and shall
expire on June 30, 2003. Throughout such term said franchise
shall endure in full force and effect until the same shall, with
the consent of the Public utilities Commission of the State of
California, be voluntarily surrendered or abandoned by the
grantee, or until the state or some municipal or public
corporation thereunto duly authorized by law shall purchase by
voluntary agreement or shall condemn and take under the power of
eminent domain, all property actually used and useful in the
exercise of said franchise and situate in the territorial limits
of the state, municipal, or public corporation purchasing or
condemning such property, or until said franchise shall be
forfeited for non-compliance with its terms by the grantee.
SECTION 4.
CONSIDERATION.
(a) Franchise Fees. The grantee of said franchise
shall during the term thereof pay to the City 2% of the gross
annual receipts of said grantee, which amount has been held by
Decision No. 80432 of the Public utilities Commission of the
State of California to be the normal level paid to other
political subdivisions within the utility's territory. It is
understood that any administrative, legislative or judicial
modification of said franchise fee or the basis of calculating
said fee pursuant to Decision NO.80432 shall be cause for review
and renegotiation of this amount of franchise fee at any time
within the term of this franchise.
(b) utility User's Tax-Collection Services. To the
extent permitted by law, and solely for those customers within
the corporate limits of the city billed directly by grantee
(including customers purchasing power from other electricity
providers), grantee agrees to collect the City's Utility Users'
Tax and remit same to the City on a monthly basis.
(c) Transportation Surcharqe. Grantee shall implement
the surcharge provisions of California Public Utilities Code
sections 6351, 6352, 6353 and 6354.1 and remit surcharges
collected to the City. Grantee agrees to refrain from opposing
the applicability of franchise fees (or their equivalent) to
retail gas sales using grantee's gas distribution system.
Grantee agrees to continue to support some baseline protection
3
76-3
for franchise fees (or their equivalent) to ensure that
municipalities will continue to receive such fees from all
utility providers within their respective municipal boundaries.
SECTION 5.
REPORTS, DATES OF PAYMENT. AND CITY AUDITS.
The grantee shall file with the Director of Finance of
said city, within three months after the expiration of the
calendar year, or fractional calendar year, following the date of
the granting hereof, and within three months after the expiration
of each and every calendar year thereafter, a duly verified
statement showing in detail the total gross receipts of such
grantee during the preceding calendar year, or such fractional
calendar year, from the sale of gas within said City. Such
grantee shall pay to said city by no later than the end of August
of the following calendar year, an amount equal to fifty percent
of the previous year's annual payment, and by no later than the
end of March of the following calendar year an amount which, when
added to the initial 50% payment above, constitutes the City's
annual franchise fee for the preceding calendar year. By this
method of payment, it is contemplated and understood that grantee
is in effect calculating the actual gross receipts once each year
following the end of each year. Accordingly, grantee shall
estimate the percentage due city for the period January through
June based on the previous years payment and shall calculate the
exact amount due for said period and shall remit the adjusted
amount to city no later than the end of March of the following
year. Transportation surcharges collected by grantee pursuant to
section 4(C) shall also be paid in accordance with this schedule.
Any neglect, omission, or refusal by said grantee to file such
verified statement, or to pay said percentage at the time and in
the manner specified, shall be grounds for the declaration of a
forfeiture of this franchise and all rights of grantee hereunder.
SECTION 6.
COMPLIANCE WITH LAWS.
All facilities or equipment of grantee that grantee
shall construct, maintain and use or remove, pursuant to the
provisions of the franchise granted herein shall be accomplished
in accordance with the ordinances, rules and regulations of city
or as hereafter adopted or prescribed, and such rules or
regulations as are promulgated under state law, or orders of the
Public Utilities commission or other governmental authority
having jurisdiction in the premises.
SECTION 7.
ADMINISTRATIVE PRACTICES.
(a) Installation. Maintenance. Repair and Removal of
Facilities. Grantee is herewith charged with the responsibility
of cooperating with city in preparing a manual of administrative
practices which shall govern the installation, maintenance,
repair and removal of grantee's facilities in the streets of city
4
~~1
which shall include, but not be limited to, cathodic protection
practices. Once each year, commencing with the first full
calendar year of the franchise granted herein, it is to be the
joint responsibility of grantee and city to review and update
such administrative practices. Both grantee and city are charged
with the duty to prepare, review and update such administrative
practices by a method of mutual cooperation which shall take into
consideration the reasonable needs and convenience of each party;
provided that said administrative practices and the terms and
conditions thereof shall be at all times subject to approval of
the City Council as expressed by appropriate legislative action.
Following the preparation of said manual, and its approval by the
City Council, it shall govern the practices of the grantee in its
installation and removal of grantee's facilities in the
streets of city.
(b) System Upqrades. Grantee agrees to include the
city in the early implementation of system-wide enhancements
(e.g. infrastructure upgrades and ancillary services) to the
extent such inclusion is consistent with grantee's then policy to
prioritize and construct such system enhancements based on the
condition of existing infrastructure in grantee's service
territory.
SECTION 8.
CITY RESERVED POWERS.
(a) city reserves the right for itself to lay,
construct, erect, install, use, operate, repair, replace, remove,
relocate, regrade or maintain below surface or above surface
improvements of any type or description in, upon, along, across,
under or over the streets of the city. city further reserves the
right to relocate, remove, vacate or replace the streets
themselves. If the necessary exercise of the aforementioned
reserve rights conflicts with any pipes and appurtenances of
grantee constructed, maintained and used pursuant to the
provisions of the franchise granted hereby, whether previously
constructed, maintained and used or not, grantee shall, without
cost or expense to city within ninety (90) days after written
notice from the City Manager, or his designated representative,
and request so to do, begin the physical field construction of
changing the location of all facilities or equipment so
conflicting. Grantee shall proceed promptly to complete such
required work.
(b) Irrespective of any other provision of this
ordinance, grantee's right to construct, maintain and use, or
remove pipes and appurtenances thereto shall be subject at all
times to the right of the city, in the exercise of its police
power, to require the removal or relocation, to underground
locations, of said pipes and appurtenances thereto at the sole
cost and expense of grantee.
5
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(c) Notwithstanding anything else in this ordinance to
the contrary, the city's right to be a gas generator or
retailer, to the extent permitted by law, shall not be
limited in any manner by the granting of this franchise.
SECTION 9.
HOLD HARMLESS.
Except to the extent caused solely by any negligent,
grossly negligent or willful misconduct of the city or its
officers or employees, Grantee of the franchise granted hereby
shall indemnify, save, and hold harmless, city and any officers
and employees thereof against and from all damages, judgments,
decrees, costs, and expenditures which city, or such officer or
employee, may suffer, or which may be recovered from, or
obtainable against city, or such officer or employee, for, or by
reason of or growing out of or resulting from the exercising by
grantee of any or all of the rights or privileges granted hereby,
or by reason of any act or acts of grantee or its servants or
agents in exercising the franchise granted hereby and grantee
shall defend any suit that may be instituted against city, or any
officer or employee thereof by reason of or growing out of or
resulting from the exercise by grantee of any or all of the
rights or privileges granted hereby, or by reason of any act or
acts of grantee, or its servants or agents, in exercising the
franchise granted hereby.
SECTION 10.
REPAIR COSTS.
Grantee shall pay to city on demand the cost of all
repairs to city property made necessary by any of the operations
of grantee under the franchise granted hereby, provided,
however, that grantee may make repairs to streets, sidewalks,
curbs, and gutters itself at its own cost in accordance with city
specifications if the same can be done without undue
inconvenience to the public use of the streets.
SECTION 11.
FORFEITURE AND OTHER REMEDIES.
This franchise is granted upon each and every
condition herein contained, and shall ever be strictly construed
against grantee. Nothing shall pass by the franchise granted
hereby to grantee unless it be granted in plain and unambiguous
terms. Each of said conditions is a material and essential
condition to the granting of the franchise. If grantee shall
fail, neglect or refuse to comply with any of the conditions of
the franchise granted hereby, and if such failure, neglect or
refusal shall continue for more than thirty (30) days after
written demand by the City Manager for compliance therewith, then
city, by the City Council, in addition to all rights and remedies
allowed by law, thereupon may terminate the right, privilege and
franchise granted in and by this ordinance, and all the rights,
privileges and the franchise of grantee granted hereby shall
6
~~
thereupon be at an end. Thereupon and immediately, grantee shall
surrender all rights and privileges in and to the franchise
granted hereby. No provision herein made for the purpose of
securing the enforcement of the terms and conditions of the
franchise granted hereby shall be deemed an exclusive remedy or
to afford the exclusive procedure for the enforcement of said
terms and conditions, but the remedies and procedure outlined
herein or provided, including forfeiture, shall be deemed to be
cumulative.
SECTION 12.
ACQUISITION AND VALUATION.
Nothing in this ordinance or m the franchise granted
hereby shall be construed as in any way impairing city's rights
to acquire property of grantee through the exercise of city's
power of eminent domain, or through voluntary agreement between
city and grantee. In the event that city chooses to exercise its
power of eminent domain, it shall do so in accordance with the
procedures provided by the general law of the State of California
for the condemnation of public utility property. The valuation of
such property for condemnation purposes shall be made in
accordance with such general law.
SECTION 13.
AUTHORITY FOR GRANT.
Notwithstanding any other provision herein contained,
this franchise is granted solely and exclusively under section
1200, 1201, 1202, 1203, 1204, 1205 and 1206 of Article XII of the
Charter of the City of Chula vista, and Chapter 5.30 of the Chula
Vista Municipal code and no other authority. This franchise is
granted subject to any and all additional terms and conditions
contained therein.
SECTION 14.
EFFECTIVE DATE.
Subject to the requirements of Section 16, this
ordinance shall become effective thirty days after its final
passage unless superseded by a referendum petition filed as
provided by law. Upon the effectiveness of this ordinance, the
commencement of the term shall be July 1, 1998 as provided in
Section 3.
SECTION 15.
PUBLICATION COSTS.
The grantee of said franchise shall pay to the city a
sum of money sufficient to reimburse it for all publication
expenses incurred by it in connection with the granting thereof;
such payment to be made within thirty (30) days after the city
shall have furnished such grantee with a written statement of
such expenses.
7
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SECTION 16.
WRITTEN ACCEPTANCE.
The franchise granted hereby shall not become
effective until written acceptance thereof, in a form approved by
the city Attorney, shall have been filed by the grantee with the
City Clerk.
SECTION 17.
PUBLICATION.
The City Clerk shall cause this ordinance to be
published once within fifteen (15) days after its passage in the
Chula Vista Star News, a newspaper of general circulation
published and circulated in said city.
SECTION 18.
MISCELLANEOUS OBLIGATIONS.
(a) Notice of Siqnificant Transactions. Grantee
agrees to provide as much reasonable advance notice as is
legally permissible to the city regarding any mergers, buyouts,
spin-offs or other transactions materially affecting the nature
of the entity to which the city grants this franchise. Such
notice shall be consistent with grantee's obligations under the
law relating to disclosures and the limitations placed upon
grantee.
(b) Economic Development. To the extent recovery of
the expense through rates is allowed by the CPUC regulations,
grantee agrees to cooperate, in good faith, on reasonable
economic development activities which may include, but not be
limited to, deferral or waiver of hook-up fees, assistance in the
financing of upgraded infrastructure and/or offering of power
incentives to companies that meet city-defined economic
development or employment criteria.
GRANTEE'S ACCEPTANCE:
By its signature hereto, Grantee accepts the franchise
granted hereby and agrees to be bound and abide by all covenants,
terms and conditions contained herein. Grantee warrants and
represents that it is authorized to enter into this Franchise
Agreeme~t and that the party executing this franchise on its
behalf is duly authorized to do so, without the need for any
further ction.
Dcr Sf' ..../ '1f ACKNOWLEDGED AND AGREED
San Diego Gas & Electric Company
By:
Title:
h:\SHARED\ATTORNEY\SDG&E.GAS
8
7 13.- ~
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Diego:
I am a citizen of the United States and
a resident of the County aforesaid; I am
over the age of eighteen years, and not
a party to or interested in the above-
entitled matter. I am the principal clerk
of the printer of the STAR-NEWS, a
newspaper of general circulation, pub-
lished ONCE WEEKLY in the city of
Chula Vista and the South Bay Judicial
District, County of San Diego, which
newspaper has been adjudged a news-
paper of general circulation by the
Superior Court of the County of San
Diego, State of California, under the
date of April 23, 1951, Case Number
182529; that the notice, of which the
annexed is a printed copy (set in type
not smaller than nonpareil), has been
published in each regular and entire
issue of said newspaper and not in any
supplement thereSlf on the following
dates, to-wit:
10/10
all in the year 1998
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Dated at Chula Vista, California 91910
this
day of October
,19~
10
Signature .\, I " I.
PRINCIPLE CLERK
--I~&j'fJ~
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This space is for the County Clerk's filing stamp
Proof of Publicaton of:
____~Y__l!?~_Q_._______.________________._________
NOTICE 0 F ADOPTION OF ORDINANCES
--------------------------------------------------
~IIClIICl:O{_Piiiili; r',' IWUKUINANCE , NO.
~i/I"'lIf !JRIllllHlCES'" ~ t'2751' AMENDING- cHAP-
:~_....lfIi;.2745 m.R ,.9:28 OflllE MUNICI:
i ,.~;atl rpAI!CODF!!iURfEWOR:
,spedaI ~.?""!4OJ'iInI\y I'. DI~. ..",,,'~.'C't!:(.'.'
IFicIIIesi "98-3 ~.. ,-.. 'n the'cur-
t~l!'''' '!r ="""~ past....'-'l>.'(bo..WOIdi.. . ..lIg.,].... .-
. ........ ....,......... ~re..'Drdlnance. s.over-
, " . . 35' [S4in1iOW r '''',. ..; C' 's" Ordi'
~l}"~~...<-i i:=:-J!tml~~@:San
"Thi.p'u~OI..lhls ,DlIOO's Wl1IcI\..WlS, chal-
,D~~Ili.IiW..(spe'tl..ae'('and .luliOy.jlle
,cIaI.Illr.kl,l.comJllIlllily ,Unhed;'SI3leS"Court: 01
'ladIIlieS dISIrfct as' _ '.......101 10 be Vlllue and
:rlzed~IO,,,elerms ;;;;-nsti1iJtlonat;San Ole'
:anes:,. prOYiSl.O.. 1lS',:o(; tht go has since 8Il!ended itS
,"MeJlcj-Roos. community Onllnance. Thepu~ of
,_ Act 01.1982." " Ihls Onlinante Is to amend
r': (2) ORDINANCE. NO. the current Ordinance 10
2746 GRANTiNG TO SAN , confon"With the ruling by
DIEGO GAS. &. ElECTRIC Ihe United Slates court of
=~~;~~ME ~~~oIlDIrJ1cENo,
.fRANCHISE ,;ro;, CON' '2752 ESTABLISHING A 25
STRUCTi MAlNTAlN'AND ',MPH SPEED"LIMIT.- ON
:USEP.OLES..IWlRES!toN- tEASTlAKE'tDRIV.E. >-iBE-
:DUmrAND;7APPURTE. 'lWEEN HIUSIDE'DRIVE
NANCES.,~,~INCLUDING tAND'lAIIESHORE' DRIVE
.cOMMUNICATlONNC1R' lAND ADDING THIS ROAl),
CUlTS.. NECESSARY OR 'WAY SEGMENT TO SCHE-
PROPffi fOR TRANSMIT. 'DULE X'AS MAINTAINED
riNG' AND DISTRIBUTING 'BY THE CITY ENGINEER
ELECTRICITY"'TQ:::.THE . ,(8) ORDINANCE ',NO.
PUBLIC fOR" ANY," AND 2753 ESTABLISHING A 35
All PURPOSES",. IN. MPH SPEED:: liMIT ON
AlONG;.ACROSS. UPON. ClUBHOUSFDRIVE BE-
'UNOERAND.OVER THE lWEEN EASTLAKE PARK-
'PUBLIC' STREETS" AND WAY AND' HUNTE' PARK,
PlACES WITHIN THE CITY ,WAY AND. ADDING: THIS
" (3)'.ORDINANCE:.NO, ,ROADWAY SEGMENT TO
.2747, GRANTiNG,ro.SANSCHEDULE. x AS.MAIN-
DIEGO GAS &'ElECTRIC !TAINEO 'BY.."."."<J :HELCITY,.
COMP.ANy;,lTS'.SUCCES. 'ENGINEER-;''fl:l' "",'.,,, :
, SORS ANlJASSIGNS. THE ~r~' (9) .. ORDINANCE NO.
FRANCHISE ',TO INSTAlL. - 54 ESTABU HING A 45
MAI.NIAIN 'tANDl'!.'.~USE .~PH"'SP Eeo:rO .MIT'ON
PIPES, ANll"FAPPURTE' HUNTE PAR'(lNAY BETWE,
. NANCES;'TRANSMI1TlNG ENtOTAY~ tAKES-ROAD
AND, DISTRIBUTION GAS NlJ'it'SOU1Jl!l'GREENS-'
. fOR Nfi: AND AlL: PUR' 'VIEW DRIVE AND ADDING
. POSES' UNDER;, AlONG; \ THIS'; ROADWAYj'SEG-
'ACROSS' OR' UPOri"THt ,MENTTOSClIEDULEXAS
',' PUBLlC"STREETS',. AND I MAINTAINED BY.TIlE CITY
PlACES'AS'THE" SAME IENGINEER'ff\.q,;;-k>>;J:/'; :
NOW OR MAY HEREAfTER ,." Orill_s-rN'O! 27~~.
'EXISTWITHTHECITY", !'2746'and'2747 had,Ihe"
: ,14) ORDINANce" NO. \flrSt_Q'cltf~mber
2749 AMENDING SECTION '1- 1998tant'Ihtlr second
,2.46 TO CHAPTER 2' OF 'rOading and adoption althe
..THE MUNICIPAL" CODE ,'regular\ meeting of - Se",
,RELATING TO, THE ,RE. itembei,15',lgg8;wIlh the
STRUCTURE,OFC,'THE :followinlJ,ly:yote:'" AYES:
YOUTH COMMISSION." : iMoot'.Padllla;,Rlndone,
',' The purposeo 01"this ! Sala.;i' Horton;' NOES:
Onllnance I. ~ allOW lor.. None; ABSENT: NOI11l;,AB'
'oq.e: .~r~ trial ~pfl)Qram ::51.. AIN:. NOneJ~~~'>:~.'-"- '
laiiiied!!.....iI..urlricic.f ~iOrdlnances1No:t2749,
l'Uiins;;o~ii.P .'~y&\\\ll :.275O}~51y:,2.?52."'2753
C~lijbrliig'ftlnlO 'and:275+,had..thtir'fltsl
I~COl\!omiaI1c(\'iIll it$' 0I1gI' . reading 01\ ,SepleJllbet 22-
fpat" purpos~, lnd.'.lnlenl "998;:and,lhelfl\ second
'Whicb waS to provide iMuI '<eadInO aI1d Odopt\on al the
'and./1lCOII1meridat1Ons.to '~rileitlng"on:Oclo-
! the' City , Councll.;;~1ty ~beI' &"'99l!:;WIlII1""MloI-
I Manager. and' Other. me"" .1OWInif'YOl8:" "YES. . DOl.
t be". of CIli~mem lri ;'Pldll\3l!i<$~IaS,~t Horton;
'al.I"malle rs'......'lh~. '.NO ES%"N;.mOne<U:ABSEN.T:
~. ..r_'I...." "1 ~ 'nd'" AIN'None.,
",uu" Ri one. .~; ~
". )'Ol\lll CE\' O. ,'JPilISiIiillIO""'.Chane(
_ ~;ADDIN=rs'eCTlONS :S8dioof312(bl(' fuft.coPY
;9.09:D30~"t'''THROUGH :'of.,satd~Orilrnances, are
19,09,080"'-lllJCiW'TE1I .!ti\'illable. 'In'lliec..~ Clerk'.
9.09. OF, TIlE' MUNICIPAl. 1\ OffIcI'and'lI( av;iiIable 10
,COOE.RBATlNG.TQDAYl la\I.interestedt~bl
ITlME TRUANC'i ay.JlJVE 1_ 69j-504M,I"'!--'
.NILES ON SCflOOl...DAVSi !'';;'OATEO:llflObii7;1998
~TIH.. pUrPOseiClijllt1s CV11560""'.;1','101l0l98
'Otdlnorice Is tQ;........ the '"
~W011dntrt~'lbe'
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fand1heSCliOol_1ii
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Council Agenda Statement
Item Title.
Item. ~
\uG Meeting Date. September 15, 1998
I ,\C\. ,
Reso ut10n Approv1ng Agreement w1th SDG&E
Granting the-City an Exclusive Right to Issue and
Refinance SDG&E's Industrial Development Bonds
Submitted by.
Sid Morris, Assistant City Manager
Glen R. Googins, Assistant City Attorne~\
David D. Rowlands, Jr., City Manage~~~\
4/5ths Vote. Yes___No-X-}
Approved by.
As part of its negotiations with SDG&E for a five year renewal of
its gas and electric franchise, city staff negotiated a side
agreement whereby SDG&E would grant to the city an exclusive
right through June 30, 2013 to be the issuer for SDG&E's
Industrial Development Bond (nIDBn) issues and refinancings.
Under this agreement, for every Ten Million Dollars ($10,000,000)
of debt issued or refinanced, the city will receive an issuer fee
of Twenty Five Thousand Dollars ($25,000). In every case the
city would be acting as a conduit, and would not itself be liable
in any way for repayment of the bonds.
RECOMMENDATION.
That Council approve the Agreement granting the City an exclusive
right to be the issuer on SDG&E's IDB issues and refinancings
through June 30, 2013.
BOARD/COMMISSION RECOMMENDATION.
N/A
DISCUSSION.
Concurrent with negotiations on extension of the City's gas and
electric franchise, City staff and SDG&E representatives
negotiated the terms for the city to have the exclusive right to
be the issuer on SDG&E's IDB issues and refinancings.
Under this agreement, through June 30, 2013 the City would have
the exclusive right to issue (or refund) SDG&E industrial
development bonds provided that (a) they are completed in a
timely manner; (b) city's issuance charge is no more than 25
basis points (.25% of the face value of the debt), plus City's
administrative costs related to bond issuance}; (c) City charges
no annual fee or costs; and (d) City's Bond Counsel indicates
that City's involvement is permissible under the current tax laws
7 i- (
Meeting Date: 9/15/98
Page Two
and that it is not necessary to obtain a Superior Court judgment
in a validation action.
Initially SDG&E came to the City in December 1992 requesting our
assistance with the issuance of a series of bonds totaling
approximately $250 million. Since that time the city has issued
a total of $373,900,000 in new or refinanced bonds and earned
approximately $935,000. This side letter agreement will
guarantee this relationship over the next 15 years based upon the
conditions outlined above.
A copy of the proposed agreement is attached hereto.
FISCAL IMPACT:
SDG&E has estimated that during the 15 year term of the City's
side letter agreement, SDG&E may issue or refinance as much as
$357 million of industrial development bonds. At the proposed
issue fee of 25 basis points, using SDG&E's estimate, the City
may earn up to an additional $900,000 in issuer fees and staff
cost reimbursements. Of course, this is based on SDG&E's own
estimate, and the actual amount of debt issues or refinancings
will depend on interest rates, other market factors, and SDG&E
policy decisions at the time that outstanding debts mature.
Attachments:
Resolution
Agreement
H: \shared\attorney\sdgeidb. 113
7~-~
RESOLUTION NO. /'1/(,5
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AGREEMENT WITH SDG&E
GRANTING THE CITY AN EXCLUSIVE RIGHT TO ISSUE
AND REFINANCE SDG&E'S INDUSTRIAL DEVELOPMENT
BONDS
WHEREAS, as part of its negotiations with SDG&E for a
five year renewal of its gas and electric franchise, City staff
negotiated a side agreement whereby SDG&E would grant to the City
an exclusive right through June 30, 2013 to be the issuer for
SDG&E's Industrial Development Bond ("IDB") issues and
refinancings; and
WHEREAS, under this agreement, for every $10,000,00 of
debt issued or refinanced, the City will receive an issuer fee of
$25,000; and
WHEREAS, in every case, the city wold be acting as a
conduit and would not itself be liable in any way for repayment of
the bonds.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula Vista does hereby approve an Agreement with SDG&E
Granting the City an Exclusive Right to Issue and Refinance SDG&E's
Industrial Development Bonds through June 30, 2013, in the form
presented, a copy of which shall be kept on file in the office of
the City Clerk as Document NO('/)'ffjY~ /E9.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula Vista, or her designee, is hereby authorized and directed to
execute said Agreement for and on behalf of the City of Chula
vista.
Presented by Approved as to form by
sid Morris, Assistant city
Manager
H:\home\lorraine\rs\sdge.idb
7e-]
r
,.
SDG".
fE San Diego Gas & Electric i .'
An ~nav. Company
September 8, 1998
Mr. David D. Rowlands, Jr.
City of Chula Vista
Office ofthe City Manager
276 Fourth Avenue
Chula Vista, CA 91910
Re: Letter Agreement By And Between San Diego G1IS & Electric Company
("SDG&E") And The City of Chula Vista ("Chula Vista") Regarding Bond
Issues.
Dear Mr. Rowlands:
This Letter Agreement is entered into by and between SDG&E and Chula Vista as
ofthe date last executed by the parties hereto. By this Letter Agreement, SDG&E grants
to Chula Vista an exclusive right to be the issuer of SDG&E's (and its successor's and
assign's) Industrial Development Bonds ("IDB") issues and refinancings on the following
conditions:
a) the processing of IDB issues and refinancings are completed in a timely
manner; and
b) Chula Vista's issuance charge is no more than 25 basis points (m addition
to Chula Vista's administrative costs related to bond issuance); and
c) Chula Vista charges no annual fee or costs; and
d) Chula Vista's Bond Counsel indicates that Chula Vista's involvement with
respect to cash issue or refinancing is permissible under the then current tax
laws and that it is not necessary to obtain a Superior Court judgment in a
validation action.
Chula Vista's exclusive right to process IDB issues and refinancings shall
commence with the execution of Ordinance No. 2746 and Ordinance No. 2747 and shall
continue through June 30, 2013. If the foregoing accurately reflects Chula Vista's
understanding of the agreement between SDG&E and Chula Vista regarding the matter
45701.01
7C,- f
c..D 9 Y - ( 39
<-~_J::\ t Co '5
,. ,
Mr. David D. Rowlands, Jr.
September 8
Page 2
, .'
contained herein, please have one (1) copy of this Letter Agreement properly executed
and returned to my attention.
Each party represents and warrants that it is fully authorized to enter into and
abide by all terms and conditions of this Agreement.
ACKNOWLEDGED AND AGREED:
SAN DIEGO GAS & ELECTRIC COMPANY
CITY OF CHULA VISTA
By;
By:
David D. Rowlands, Jr.
Edwin A. Guiles
Title; President
Title; City ManslZer
44981
7C~ j
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,I
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COUNCil AGENDA STATEMENT
Meeting D~::mO=::t ~1'5~q8
Resolution '911~rOVing an Increase in the Number of
Authorized Hours for Council Aides from Five Hours per Week to
Ten Hours per Week and Appropriating $28,070 from Available
Fund Balance in the General Fund for Related Salary and Benefit
Costs.
SUBMITTED BY: Director of Finance W~l
REVIEWED BY: City Manage~W- {5!;j!l\ (4/5ths Vote: Yes~No_)
SUMMARY: ~ U
During the July 14, 1998 Council Meeting, staff was directed to return to Council with an
item for consideration related to increasing the authorized hours from five hours per week
to ten hours per week for Council Aides, along with the costs stemming from such an
action.
ITEM TITLE:
RECOMMENDATION:
Adopt Resolution approving an increase in the number
of authorized hours for council aides from five hours per week
to ten hours per week and appropriating $28,070 from
available Fund Balance in the General Fund for related salary
and benefit costs.
DISCUSSION:
One of the cost saving measures adopted by Council during the recent economic downturn
was reducing the authorized hours for Council Aides from ten to five hours per week. Staff
was recently directed to return to Council with an item considering a reversal of the
reduction to the authorized hours for the Council Aides, along with cost estimates and a
source of funding.
The estimated cost of doubling the authorized hours for Council Aides is $28,070, which
includes $26,682 in salary cost, $1,001 in retirement benefits, and $387 in medicare costs.
Since there is no specific revenue source related to this function, it is recommended that
any additional cost be appropriated from the General Fund Available Fund Balance.
FISCAL IMPACT:
If this item is approved, the annual cost to the General Fund for FY99 will be approximately
$28,070, including salary and benefits.
8- I
.
.
.
~ ~ ~CJ/ /998"
RESOLUTION NO.~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN INCREASE IN THE
NUMBER OF AUTHORIZED HOURS FOR COUNCIL AIDES
FROM FIVE HOURS PER WEEK TO TEN HOURS PER WEEK
AND APPROPRIATING $28,070 FROM AVAILABLE FUND
BALANCE IN THE GENERAL FUND FOR RELATED SALARY
AND BENEFIT COSTS
WHEREAS, during the July 14, 1998 Council meeting, staff
was directed to return to council with an item for consideration
related to increasing the authorized hours from five hours per week
to ten hours per week for Council Aides, along with the costs
stemming from such action; and
WHEREAS, the estimated cost of doubling the authorized
hours for Council Aides is $28,070, which includes $26,682 in
salary cost, $1,001 in retirement benefits, and $387 in medicare
costs; and
WHEREAS, since there is no specific revenue source
related to this function, it is recommended that any additional
cost be appropriated from the General Fund available fund balance.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve an increase in the number
of authorized hours for Council Aides from five hours per week to
ten hours per week.
BE IT FtJl\THER RESOLVED that the amount of $28,070 is
hereby appropriated from the General Fund available fund balance
for related salary and ben_~fit costs.
Presented by
Approved as to form by
Robert powell, Director of
Finance
H:\home\lorraine\rs\council.aid
g.;A
1!eJispd 4/13- C!oYt~?-~
COUNCIL AGENDA STATEMENT
9-1-96'
SUBMITTED BY:
,q \sq
Resolution /~proPriating $35,000 from unanticipated
revenue from Chula Vista Elementary School District to CIP Project No.
TF258 for the modification of the traffic signal at the intersection of
Broadway and "E" Street (CIP No. TF258).
Director of Public Works ~
C;1}' Mmmga l:)2. ~ ~
Item----.X ~
Meeting Date 9/15/98
ITEM TITLE:
REVIEWED BY:
(4/5ths Vote: YesX No-->
On January 7, 1997, the City Council approved Resolution 18544 ordering the conditioned street
vacation of a portion of the 100 block of Jefferson A venue. One of the conditions outlined in the
resolution was for the Chula Vista Elementary School District (CVESD) to pay for the modification
of the existing traffic signal at the intersection of Broadway and "E" Street. The School District has
deposited $36,000 into the Deposit Account 408-4080-DEI277 to complete various projects. Of this
amount, $35,000 is allocated to complete this project as stipulated in the above mentioned City
Council Resolution.
RECOMMENDATION: That Council approve the resolution appropriating $35,000 from
unanticipated revenue from Chula Vista Elementary School District to CIP Project No. TF258 to
modify the existing traffic signal at the intersection of Broadway and "E" Street (CIP No. TF258).
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The traffic signal modification project at the intersection of Broadway and "E" Street was one of the
conditions that City Council required the Chula Vista Elementary School District (CVESD) to
mitigate in conjunction with ordering the conditioned street vacation of a portion of the 100 block
of Jefferson Avenue to the CVESD. The conditioned street vacation was approved by City Council
in their January 7,1997 meeting, by Resolution Number 18544. In turn, the CVESD on December
9, 1997, deposited $36,000 to do the proposed traffic signal modification and other projects as a
condition of the proposed vacation of Jefferson Avenue. Of this amount, $35,000 will be used for
the design, administration, inspection and construction of the traffic signal modification project at
the intersection of Broadway and "E" Street. The CVESD understood then that these funds were
merely a deposit, and that the school district might be required to provide additional monies to cover
the full cost. The school district stated that any excess funds could be applied to the traffic signal
fund for the construction of the new traffic signal project at Broadway and Flower Street which is
due to start this August.
The signal modification would include adding a protected/permissive left turn signal for "E" Street
traffic and adjusting traffic signal phasing at the intersection to extend eastbound to northbound left
q-l
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Page 2, Item--lOJ
Meeting Date 9/15/98
turn phase. It would also include installing southbound to westbound free right turn phase to overlap
with east-west left turn phase at that intersection.
An informal bid solicitation from various qualified contractors was conducted on August 12, 1998
with bid opening scheduled on August 26, 1998. The total estimated cost for this modification
project and associated work is $35,000 which includes $24,500 (engineer's estimate) for
construction, $6,200 in staff costs for design, inspection and contract administration, and $4,300 for
contingencies.
If the contract amount of the low bid is between $16,000 and $25,000, the City manager is then
authorized to approve and award the contract for this project without the City Council approval
under the Chula Vista Municipal Code (CVMe) 2.56.220.
Environmental Status
The City's Environmental Review Coordinator has reviewed the work involved in this project and
determined that the project is exempt from CEQA both under CEQA Guidelines, Section 15061 (b)
(3) and Section 15303, Class 3 (new construction or conversion of small structures).
Prevailin~ Walle Statement
The sources of funding for this project is the Traffic Signal Fund. Contractors bidding this project
are not required to bid based on paying prevailing wages to persons employed by them for the work
under this contract.
No special minority or women owned business requirements were necessary as part of the bid
documents. Disadvantaged businesses were encouraged to bid through the sending of the Notice to
Contractors to various minority trade publications.
Form of Ajp"eement
The contract will be let on the City's standard Public Works Contract form. The final form will be
approved by the City Attorney.
FISCAL IMP ACT:
This project will not require any additional maintenance or energy costs. $35,000 from
unanticipated revenue will be transferred to the Traffic Signal Fund (600-6005- TF258).
File No: TF-258
(~
vi
Attachment:
Exhibit A - Resolution No. 18544 NOT SCANNED
H:\HOME\ENGINEER\AGENDA \TF258.RDJ
q-2..
~~
RESOLUTION NO.~~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $35,000 FROM
UNANTICIPATED REVENUE FROM CHULA VISTA
ELEMENTARY SCHOOL DISTRICT TO CIP PROJECT NO.
TF258 FOR THE MODIFICATION OF THE TRAFFIC
SIGNAL AT THE INTERSECTION OF BROADWAY AND "E"
STREET (CIP NO. TF258)
WHEREAS, on January 7, 1997, the City Council approved
Resolution 18544 ordering the conditioned street vacation of a
portion of the 100 block of Jefferson Avenue; and
WHEREAS, one of the conditions outlined in the resolution
was for the Chula Vista Elementary School District (CVESD) to pay
for the modification of the existing traffic signal at the
intersection of Broadway and "En Street; and
WHEREAS, the School District has deposited $36,000 into
the Deposit Account 408-4080-DE1277 to complete various projects;
and
WHEREAS, $35,000 is allocated to complete this project as
stipulated.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula vista does hereby appropriate $35,000 from
unanticipated revenue from Chula vista Elementary School District
to CIP No. TF258 for the modification of the traffic signal at the ,Ix
intersection of Broadway and "E" Street (CIP No. TF258). -C..Ly'rtr.. / 'tV
Presented by Approved as to form by
ttorney
John P. Lippitt, Director of
Public Works
H:\home\lorraine\rs\tf258
9-3
COUNCIL AGENDA STATEMENT
Item
Meeting Date
/~
9/15/98
ITEM TITLE:
Resolutio./ttuLproving an agreement with the firm of Sutro
& Co. to -~r!JKancial advisory services related to financing
specific capital projects and refinancing several assessment district
debts, and authorizing the Mayor to execute said agreement
REVIEWED BY:
Director of Finance/( /(\A
City Manag~ ~ ~V\
(4/5ths Vote: Yes _No---1Ll
SUBMITTED BY:
There are currently three known capital projects that require some form of borrowing
in order to allow for a timely completion; the Animal Shelter, the Corporation Yard, and
the Library Automation project. In addition, due to historically low interest rates, it
may now be economically feasible to refinance several outstanding assessment district
debts. After following the City's consultant selection process, staff is recommending
that the firm of Sutro & Co. be hired to act as the financial advisor on these potential
financings.
RECOMMENDATION: That Council adopt resolution approving the agreement
with the firm of Sutro & Co. and authorizing the Mayor to execute the agreement.
DISCUSSION:
There are currently three capital projects requiring a significant expenditure of funds
this fJscal year; the Animal Shelter, the Corporation Yard, and the Library Automation
Project. Although most of the funding for these projects is non-General Fund, the
receipt of the majority of these funds extends over several years, thus necessitating
some form of borrowing. The City has typically utilized the services of a professional
financial advisor specializing in public finance to analyze and recommend the best
borrowing alternatives and to coordinate the entire borrowing process, which is quite
complex.
There are also eight existing assessment districts carrying debt that may be candidates
for refinancing given today's historically low interest rate levels. Given the extremely
complex nature of the security for assessment district debt, which is primarily based
on the development status of the land itself, it would be prudent to obtain the services
of a financial advisor to analyze the economic feasibility of these potential refinancings.
Jt;) -I
Page 2. Item
Meeting Date 9/15/98
A Request for Proposals to provide financial advisory services to the City was sent
to five firms having specific expertise in municipal finance. Five proposals were
received and evaluated by a selection committee appointed by the City Manager
comprised of the Deputy City Manager, the Assistant Director of Community
Development, and the Director of Finance. The list included Sutro & Co., Fieldman,
Rolapp & Associates, Evensen Dodge Inc., Project Finance Associates, and Public
Financial Management, Inc.
The proposals were reviewed and evaluated by the Selection Committee based on the
following criteria:
A. The firm's experience and performance on comparable engagements with
an emphasis on California. This criteria was applied by reviewing the
number and type of issues in California during the last three years for
which the firm acted as financial advisor.
B. The quality of the firm's personnel to be assigned to the engagement and
the quality of the personnel available for consultation. This criteria was
applied by reviewing the resumes of the specific personnel proposed to
work with the City.
C. The firm's demonstrated understanding of the work to be performed and
comprehensiveness of the work plan proposed. This criteria was applied
by reviewing that part of each proposal which described the philosophy
of the firm as far as client service, the firm's perception of their role in
the debt issuance process vis-a-vis the roles of the issuer and other
financing team members, and the firm's commitment to ongoing
consultation regarding financing issues whether or not a specific
transaction is in process.
D. Price. This criteria was evaluated by asking for a dollar cost for the
transaction to finance the identified capital projects and for the feasibility
report for the assessment districts.
After interviewing the highest rated firms, the committee unanimously selected Sutro
& Co. as the best overall candidate. Although all proposers were judged capable of
handling the technical issues involved in any contemplated debt transaction, the
committee felt that proposal of Sutro & Co. and their interview presentation was more
comprehensive in addressing the City's perceived needs at this time. In addition, the
City Manager and the Finance Director have both had very positive working
relationships with the firm's representatives in the past. Sutro & Co. offered the
second lowest price of the three highest rated firms at $67,500, with Project Finance
/6 - cJ
Page 3, Item
Meeting Date 9/15/98
Associates the lowest at $63,500 and Evensen Dodge the highest at $75,000.
Sutro & Co. is one of the oldest regional securities firms in the United States with 229
investment executives and offices in three states. The City will be served primarily
by two senior vice presidents working out of the firm's Los Angeles office. The
project manager has seventeen years experience in public finance, while the backup
manager has twelve years in the industry. Sutro & Co. also has some familiarity with
the City, having acted as financial advisor on the City's Tax and Revenue Anticipation
Note issues for the past three years.
The contract presented is substantially in the form of the City's standard two-party
Agreement. .
FISCAL IMPACT:
There is no direct fiscal impact as a result of the recommended action. The cost of
the services are totally contingent on the closing of one or more borrowing
transactions. The cost of the services related to any capital project financing will be
$27,500, while the cost of the feasibility report on the assessment districts will be
$5,000 and the services related to any assessment district refinancing will be
$35,000. All costs to be incurred under the subject contract will be paid solely from
the proceeds of each particular transaction and therefore become part of the long-term
debt cost of issuance.
/0 :3
RESOLUTION NO.~~G,
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT WITH THE
FIRM OF SUTRO & CO. TO PROVIDE FINANCIAL
ADVISORY SERVICES RELATED TO FINANCING
SPECIFIC CAPITAL PROJECTS AND REFINANCING
SEVERAL ASSESSMENT DISTRICT DEBTS, AND
AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT
WHEREAS, there are three capital projects that require
some form of borrowing in order to allow for a timely completion:
(1) the Animal Shelter, (2) the Corporation Yard and (3) the
Library Automation Project; and
WHEREAS, in addition, due to historically low interest
rates, it may now be economically feasible to refinance several
outstanding assessment district debts; and
WHEREAS, after following the City's consultant selection
process, staff is recommending that the firm of Sutro & Co. be
hired to act as the financial advisor on these potential financing.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
city of Chula vista does hereby approve an agreement with the firm
of Sutro & Co. to provide financial advisory services relating to
financing specific capital projects and refinancing several
assessment district debts, a copy of which shall be kept on file in
the office of the city Clerk as Document No.
BE IT FURTHER RESOLVED that the Mayor of the City of
Chula vista is hereby authorized to execute said Agreement for and
on behalf of the City of Chula Vista.
Presented by
Approved as to form by
Robert Powell, Director of
Finance
H;\home\lorraine\rs\sutro
IIJ -1
Agreement between
City of Chula Vista
and
Sutro &: Co.
for Financial Advisory services
This agreement (-Agreement"), effective as of September 15,
1998, upon full execution by all parties, is between the City-
related entity as is indicated on Exhibit A, paragraph 2, as such
("City"), whose business form is set forth on Exhibit A,
paragraph 3, and the entity indicated on the attached Exhibit A,
paragraph 4, as Consultant, whose business form is set forth on
Exhibit A. paragraph 5. and whose place of business and telephone
numbers are set forth on Exhibit A, paragraph 6 (-Consultant-).
and is made with reference to the following facts:
Recitals
Whereas. the City requires the services of a professional
financial advisor to assist in various long term financing tasks;
and,
Whereas, the City conducted a selection process as required
by ordinance and determined-that Consultant is the best qualified
firm proposing to serve the City in this capacity as the result
of said process;
Whereas, Consultant warrants and represents that they are
experienced and staffed in a manner such that they are and can
prepare and deliver the services required of Consultant to City
within the time frames herein provided all in accordance with the
terms and conditions of this Agreement;
Page 1
10 -- t
Obligatory Provisions Pages
NOW, THEREFORE, BE IT RESOLVED that the City and Consultant
do hereby mutually agree as follows:
1. Consultant's Duties
A. General Duties
Consultant shall perform all of the services described on
the attached Exhibit A, Paragraph 7, entitled "General Duties";
and,
B. Scope of Work and Schedule
In the process of performing and delivering said "General
Duties", Consultant shall also perform all of the services
described in Exhibit A, Paragraph 8, entitled" Scope of Work and
Schedule", not inconsistent with the General Duties, according
to, and within the time frames set forth in Exhibit A, Paragraph
8, and deliver to City such Deliverables as are identified in
Exhibit A, Paragraph 8, within the time frames set forth therein,
time being of the essence of this agreement. The General Duties
and the work and deliverables required in the Scope of Work and
Schedule shall be herein referred to as the "Defined Services".
Failure to complete the Defined Services by the times indicated
does not, except at the option of the City, operate to terminate
this Agreement.
C. Reductions in Scope of Work
City may independently, or upon request from Consultant,
from time to time reduce the Defined Services to be performed by
the Consultant under this Agreement. Upon doing so, City and
Consultant agree to meet in good faith and confer for the purpose
of negotiating a corresponding reduction in the compensation
associated with said reduction.
D. Additional Services
In addition to performing the Defined Services herein set
forth, City may require Consultant to perform additional
Page 2
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consulting services related to the Defined Services ("Additional
Services"), and upon doing so in writing, if they are within the
scope of services offered by Consultant, Consultant shall perform
same on a time and materials basis at the rates set forth in the
"Rate Schedule" in Exhibit A, Paragraph 11, unless a separate
fixed fee is otherwise agreed upon. All compensation for
Additional Services shall be paid monthly as billed.
E. Standard of Care
Consultant, in performing any Services under this agreement,
whether Defined Services or Additional Services, shall perform in
a manner consistent with that level of care and skill ordinarily
exercised by members of the profession currently practicing under
similar conditions and in similar locations.
F. Insurance
Consultant represents that it and its agents, staff and
subconsultants employed by it in connection with the Services
required to be rendered, are protected against the risk of loss
by the following insurance coverages, in the following categor-
ies, and to the limits specified, policies of which are issued by
Insurance Companies that have a Best's Rating of "A, Class V" or
better, except as otherwise approved by the city's Risk Manager
and City Attorney:
Statutory Worker's Compensation Insurance and Employer's
Liability Insurance coverage in the amount set forth in the
attached Exhibit A, Paragraph 9.
commercial General Liability Insurance including Business
Automobile Insurance coverage in the amount set forth in Exhibit
A, Paragraph 9, combined single limit applied separately to each
project away from premises owned or rented by Consultant, which
is occurrence based, which names city and Applicant as an
Additional Insured, and which is primary to any policy which the
City may otherwise carry ("Primary Coverage"), and which treats
the employees of the city and Applicant in the same manner as
members of the general public ("Cross-liability Coverage") .
Page 3
/6 -- 7.
Errors and Omissions insurance, in the amount set forth in
Exhibit A, Paragraph 9, unless Errors and Omissions coverage is
inc~uded in the General Liability policy.
G. Proof of Insurance Coverage.
(1) Certificates of Insurance.
Consultant shall demonstrate proof of coverage herein
required, prior to the commencement of services required under
this Agreement, by delivery of Certificates of Insurance
demonstrating same, and further indicating that the policies may
not be canceled without at least thirty (30) days written notice
to the Additional Insured.
(2) Policy Endorsements Required.
In order to demonstrate the Additional Insured
Coverage, Primary Coverage and Cross-liability Coverage required
under Consultant's Commercial General Liability Insurance Policy,
Consultant shall deliver a policy endorsement to the City
demonstrating same, which .shall be reviewed and approved by the
Risk Manager.
H. Securitv for Performance.
(1) Performance Bond.
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to-provide a Performance Bond (indicated
by a check mark in the parenthetical space immediately preceding
the subparagraph entitled "Performance Bond"), then Consultant
shall provide to the City a performance bond by a surety and in a
form and amount satisfactory to the Risk Manager or City
Attorney' which amount is indicated in the space adjacent to the
term, "Performance Bond", in said Paragraph 19, Exhibit A.
(2) Letter. of Credit.
Page 4
)f) - cg-
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to provide a Letter of Credit (indicated
by a check mark in the parenthetical space immediately preceding
the subparagraph entitled .Letter of Credit.), then Consultant
shall provide to the City an irrevocable letter of credit
callable by the City at their unfettered discretion by submitting
to the bank a letter, signed by the City Manager, stating that
the Consultant 'is in breach of the terms of this Agreement. The
letter of credit shall be issued by a bank, and be in a form and
amount satisfactory to the Risk Manager or City Attorney which
amount is indicated in the space adjacent to the term, "Letter of
Credit., in said Paragraph 19, Exhibit A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates
the need for Consultant to provide security other than a
Performance Bond or a Letter of Credit (indicated by a check mark
in the parenthetical space immediately preceding the subparagraph
entitled .Other Security"), then Consultant shall provide to the
City such other security therein listed in a form and amount
satisfactory to the Risk Manager or city Attorney.
I. Business License
Consultant agrees to obtain a business license from the City
and to otherwise comply with Title 5 of the Chula Vista Municipal
Code.
2. Duties of the City
A. Consultation and Cooperation
City shall regularly consult the Consultant for the purpose
of reviewing the progress of the Defined Services and Schedule
therein contained, and to provide direction and guidance to
achieve the objectives of this agreement. The City shall permit
access to its office facilities, files and records by Consultant
throughout the term of the agreement. In addition thereto, City
agrees to provide the information, data, items and materials set
forth on Exhibit A, Paragraph 10, and with the further
understanding that delay in the provision of these materials
Page 5
~-9
beyond 30 days after authorization to proceed, shall constitute a
basis for the justifiable delay in the Consultant's performance
of this agreement.
B. compensation
Upon receipt of a properly prepared billing from Consultant
submitted to the City periodically as indicated in Exhibit A,
Paragraph 18, but in no event more frequently than monthly, on
the day of the period indicated in Exhibit A, Paragraph 18, City
shall compensate Consultant for all services rendered by Consult-
ant according to the terms and conditions set forth in Exhibit A,
Paragraph 11, adjacent to the governing compensation relationship
indicated by a "checkmark" next to the appropriate arrangement,
subject to the requirements for retention set forth in paragraph
19 of Exhibit A, and shall compensate Consultant for out of
pocket expenses as provided in Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contain
sufficient information as to the propriety of the billing to
permit the City to evaluate that the amount due and payable
thereunder is proper, and shall specifically contain the City'S
account number indicated on Exhibit A, Paragraph 18 (B) to be
charged upon making such payment.
3. Administration of Contract
Each party des~nates the individuals ("Contract
Administrators") indicated on Exhibit A, Paragraph 13, as said
party's contract administrator who is authorized by said party to
represent them in the routine administration of this agreement.
4. Term.
This Agreement shall terminate when the Parties have
complied with all executory provisions hereof.
5. Liquidated Damages
The provisions of this section apply if a Liquidated Damages
R~~~ is provided in Exhibit A, Paragraph 14.
Page 6
;a -, /D
It is acknowledged by both parties that time is of the
essence in the completion of this Agreement. It is difficult to
estimate the amount of damages resulting from delay in per-
formance. The parties have used their judgment to arrive at a
reasonable amount to compensate for delay.
Failure to complete the Defined Services within the allotted
time period specified in this Agreement shall result in the
following penalty: For each consecutive calendar day in excess
of the time specified for the completion of the respective work
assignment or Deliverable, the consultant shall pay to the City,
or have withheld from monies due, the sum of Liquidated Damages
Rate provided in Exhibit A, Paragraph J.4 ("Liquidated Damages
Rate").
Time extensions for delays beyond the consultant. s control,
other than delays caused by the City, shall be requested in
writing to the City'S Contract Anministrator, or designee, prior
to the expiration of the specified time. Extensions of time,
when granted, will be based upon the effect of delays to the work
and will not be granted for delays to minor portions of work
unless it can be shown that such delays did or will delay the
progress of the work.
6. Financial Interests of Consultant
A. Consultant is Designated as an FPPC Filer.
.
If Consultant is designated on Exhibit A, Paragraph J.5, as
an "FPPC filer", Consultant-is deemed to be a "Consultant" for
the purposes of the Political Reform Act conflict of interest and
disclosure provisions, and shall report economic interests to the
City Clerk on the required statement of Economic Interests in
such reporting categories as are specified in Paragraph J.5 of
Exhibit A, or if none are specified, then as determined by the
City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant shall not make, or participate in making or in
any way attempt to use Consultant's position to influence a
Page 7
IrJ - H
governmental decision in which Consultant knows or has reason to
know Consultant has a financial interest other than the
compensation promised by this Agreement.
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant warrants and represents that Consultant has
diligently conducted a search and inventory of Consultant's
economic interests, as the term is used in the regulations
promulgated by the Fair Political Practices Commission, and has
determined that Consultant does not, to the best of Consultant's
knowledge, have an economic interest which would conflict with
Consultant's duties under this agreement.
D. Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will not acquire, obtain, or assume an economic interest during
the term of this Agreement which would constitute a conflict of
interest as prohibited by the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC
Filer, Consultant further warrants and represents that Consultant
will immediately ad~ise the City Attorney of City if Consultant
learns of an economic interest of Consultant's which may result
in a conflict of interest for the purpose of the Fair Political
Practices Act, and regulations promulgated thereunder.
F. Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant,
nor Consultant's immediate family members, nor Consultant's
employees or agents ("Consultant Associates") presently have any
interest, directly or. indirectly, whatsoever in any property
which may be the subject matter of the Defined Services, or in
any property within 2 radial miles from the exterior boundaries
of any property which may be the subject matter of the Defined
Page B
~-~
Services, ("Prohibited Interest"), other than as listed in
Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise
of future employment, remuneration, consideration, gratuity or
other reward or gain has been made to Consultant or Consultant
Associates in connection with Consultant's performance of this
Agreement. CoIisultant promises to advise City of any such
promise that may be made during the Term of this Agreement, or
for 12 months thereafter.
Consultant agrees that Consultant Associates shall not
acquire any such Prohibited Interest within the Term of this
Agreement, or for 12 months after the expiration of this
Agreement, except with the written permission of City.
Consultant may not conduct or solicit any business for any
party to this Agreement, or for any third party which inay be in
conflict with Consultant's responsibilities under this Agreement,
except with the written permission of City.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold
harmless the City, its elected and appointed officers and
employees, from and against all claims for damages, liability,
cost and expense (including without limitation attorneys' fees)
arising out of the acts or omissions of the Consultant, or any
agent or employee, subcontractors, or others in connection with
the execution of the work covered by this Agreement, except only
for those claims arising from the sole negligence or sole willful
misconduct of the City, its officers, or employees. Consultant's
indemnification shall include any and all costs, expenses,
attorneys' fees and liability incurred by the city, its officers,
agents, or employees in defending against such claims, whether
the same proceed to judgment or not. Further, Consultant at its
own expense shall, upon written request by the City, defend any
such suit or action brought against the City, its officers,
agents, or employees. Consultants' indemnification of city shall
not be limited by any prior or subsequent declaration by the
ComJultant.
Page 9
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8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to fulfill in a
timely and proper manner Consultant's obligations under this
Agreement, or if Consultant shall violate any of the covenants,
agreements or stipulations of this Agreement, City shall have the
right to terminate this Agreement by giving written notice to
Consultant of such termination and specifying the effective date
thereof at least five (5) days before. the effective date of such
termination. In that event, all finished or unfinished documents,
data, studies, surveys, drawings, maps, reports and other
materials prepared by Consultant shall, at the option of the
City, become the property of the City, and Consultant shall be
entitled to receive just and equitable compensation for any work
satisfactorily completed on such documents and other materials up
to the effective date of Notice of Termination, not to exceed the
amounts payable hereunder, and less any damages caused City by
Consultant's breach.
9. Errors and Omissions
In the event that the city Administrator determines that the
Consultants' negligence, errors, or omissions in the performance
of work under this Agreement has resulted in expense to City
greater than would have resulted if there were no such
negligence, errors, omissions, Consultant shall reimburse City
for any additional expenses incurred by the City. Nothing herein
is intended to limit City'S rights under other provisions of this
agreement.
10. Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any
reason, by giving specific written notice to Consultant of such
termination and specifying the effective date thereof, at least
thirty (30) days before the effective date of such termination.
In that event, all finished and unfinished documents and other
materials described herein above shall, at the option of the
City, become City'S sole and exclusive property. If the Agreement
is terminated by City as provided in this paragraph, Consultant
shall be entitled to receive just and equitable compensation for
any satisfactory work completed on such documents and other
Page 10
)CJ - ltf
,j"
materials to the effective date of such termination. Consultant
hereby expressly waives any and all claims for damages or
compensation arising under this Agreement except as set forth
herein.
11. Assignability
The services of Consultant are personal to the City, and
Consultant shall not assign any interest in this Agreement, and
shall not transfer any interest in the same (whether by
assignment or novation), without prior written consent of City
acting in its sole discretion.
12. OWnership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms,
designs, plans, procedures, systems and any other materials or
properties produced under this Agreement shall be the sole and
exclusive property of City. No such materials or properties
produced in whole or in part under this Agreement shall be
subject to private use, copyrights or patent rights by Consultant
in the United States or in any other country without the express
written consent of city. City shall have unrestricted authority
to publish, disclose (except as may be limited by the provisions
of the Public Records Act), distribute, and otherwise use,
copyright or patent, in whole or in part, any such reports,
studies, data, statistics, forms or other materials or properties
produced under this Agreement.
13. Independent Contractor-
City is interested only in the results obtained and
Consultant shall perform as an independent contractor with sole
control of the manner and means of performing the services
required under this Agreement. City maintains the right only to
reject or accept Consultant's work products. Consultant and any
of the Consultant's agents, employees or representatives are, for
all purposes under this Agreement, an independent contractor and
shall not be deemed to be an employee of city, and none of them
shall be entitled to any benefits to which City employees are
entitled including but not limited to, overtime, retirement
benefits, worker's compensation benefits, injury leave or other
Page 11
!tJ - 15'
leave benefits. Therefore, City will not withhold state or
federal income tax, social security tax or any other payroll tax,
and Consultant shall be solely responsible for the payment of
same and shall hold the City harmless with regard thereto.
14. Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this
agreement, against the City unless a claim has first been
presented in writing and filed with the City and acted upon by
the City in accordance with the procedures set forth in Chapter
1.34 of the Chula vista Municipal Code, as same may from time to
time be amended, the provisions of which are incorporated by this
reference as if fully set forth herein, and such policies and
procedures used by the City in the implementation of same.
Upon request by City, Consultant shall meet and confer in
good faith with City for the purpose of resolving any dispute
over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result in
litigation, it is agreed that the prevailing party shall be
entitled to recover all reasonable costs incurred in the defense
of the claim, including costs and attorney's fees.
16. Statement of CQsts
In the event that Con~ultant prepares a report or document,
or participates in the preparation of a report or document in
performing the Defined Services, Consultant shall include, or
cause the inclusion of, in said report or document, a statement
of the numbers and cost in dollar amounts of all contracts and
subcontracts relating to the preparation of the report or
document.
17. Miscellaneous
A. Consultant not authorized to Represent City
Page 12
/() - 10
Unless specifically authorized in writing by City, Consult-
ant shall have no authority to act as City's agent to bind City
to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, Paragraph 16 is marked, the
Consultant and/or their principals is/are licensed with the State
of California or some other state as a licensed real estate
broker or salesperson. Otherwise, Consultant represents that
neither Consultant, nor their principals are licensed real estate
brokers or salespersons.
C. Notices
All notices, demands or requests provided for or permitted
to be given pursuant to this Agreement must be in writing. All
notices, demands and requests to be sent to any party shall be
deemed to have been properly given or served if personally served
or deposited in the United States mail, addressed to such party,
postage prepaid, registered or certified, with return receipt
requested,. at the addresses identified herein as the places of
business for each of the designated parties.
D. Entire Agreement
This Agreement, together with any other written document
referred to or cont~mplated herein, embody the entire Agreement
and understanding between the parties relating to the subject
matter hereof. Neither this Agreement nor any provision hereof
may be amended, modified, waived or discharged except by an
instrument in writing executed by the party against which
enforcement of such amendment, waiver or discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warrants and
represents to the other party that it has legal authority and
capacity and direction from its principal to enter into this
Agreement, and that all resolutions or other actions have been
taken so as to enable it to enter into this Agreement.
Page 13
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F. Governing Law/Venue
This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action
arising under or relating to this Agreement shall be brought only
in the federal or state courts located in San Diego County, State
of California, and if applicable, the City of Chula Vista, or as
close thereto as possible. Venue for this Agreement, and
performance hereunder, shall be the City of Chula Vista.
[end of page. next page is signature page.]
Page 14
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Signature Page
to
Agreement between City of Chula Vista and
Sutro &. Co.
for Financial Advisory Services.
IN WITNESS WHEREOF, city and Consultant have executed this
Agreement thereby indicating that they have read and understood
same, and indicate their full and complete consent to its terms:
Dated:
, 1998
city of Chula Vista
by:
Shirley Borton, Mayor
Attest:
Beverly Authelet, city Clerk
Approved as to form:
,
John M. Kaheny, city Attorney
Dated:
9-4-'\'0
Sutro &. Co.
BY:~~~~
Richaro H. Clark
Senior Vice President
By:
[name of person, title]
Page 15
/{J - 19
Exhibit A
to
Agreement between
City of Chula Vista
and
Sutro &: Co.
1. Effective Date of Agreement: September 15, 1998
2. City-Related Entity:
(x) City of Chula Vista, a municipal chartered corporation of
the State of California
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: Sutro &: Co.
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
Sutro &: Co.
555 South Flower Street, Suite 3400
Los Angeles, California 90071
Voice Phone (213) 362-4131
Fax Phone (213) 624-5263
Page 1
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7. General Duties:
A. General Scope of Work
Provide financial advisory services for financing the
acquisition and construction of an animal shelter and a
corporation yard, acquisition and installation of Library
automation software and hardware, and for the potential
refinancing of existing obligations for one or more
assessment districts.
a. Scope of Work and Schedule:
A. Detailed Scope of Work
1. Capital proiects
Consultant will analyze financing options,
recommend a financing plan for the costs of
acquiring and constructing an Animal Shelter and
Corporation Yard, and for acquiring and installing
a Library automation hardware and software. and
coordinate approval and execution of the financing
plan, including:
a. Preparation of a report analyzing the
financing options for the projects, concluding
with a recommended financing plan.
b. Preparation of a credit review package for
.submission to the rating services and bond
insurers as appropriate. Coordination of the
credit-- review process between rating
services, bond insurers, and City staff.
c. Selection of a reputable disclosure counsel
to prepare the official statement and render
required opinion regarding adequacy of
disclosure.
d. Coordination of the preparation of the
official statement with disclosure counsel and
city staff.
e. Coordinate all aspects of the borrowing
Page 2
10 - ~\
through the closing process with other
financing team members.
2. Assessment District Refinancinq
Consultant will analyze the economic benefits to
property owners from refinancing the outstanding
.debt on one or more of the City's assessment
districts, and coordinate all aspects of the
refinancing once approved, including:
a. Data gathering and preparation of a report
analyzing the economic feasibility of
refinancing the outstanding debt on one or
more of eight assessment districts with a
total principle balance of $49,830,000 as of
June 30, 1997, and outlining the process
required for accomplishing any recolDlliended
refinancing (s).
b. Coordination with City staff of any required
property owner approval process.
c. Selection of a reputable disclosure counsel
to prepare the official statement and render
required opinion regarding adequacy of
disclosure. If a disclosure counsel is
,required under the 'Capital Projects' portion
of this scope of work, the same firm may be
used for the any refinancing.
d.
Coordination of the preparation of
official statement with disclosure counsel
City staff.
the
and
e. Coordinate all aspects of the borrowing
through the closing process with other
financing team members.
SCF.L~DUI.d:::
B. Date for Commencement of Consultant Services:
Page 3
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(x) Same as Effective Date of Agreement
( ) Other:
C. Dates or Time Limits for Delivery of Deliverables:
Deliverable No.1: Draft Financial Plan - 10/15/98
Deliverable No.2: Closing of Debt Issuance - 12/31/98
Deliverable No.3: District Refinancing Report - 1/31/99
Deliverable No.4: Closing of Refinancing - 2/26/99
D. Date for completion of all Consultant services:
9. Insurance Requirements:
A. (X) Statutory Worker's Compensation Insurance
() Employer' s Liability Insurance coverage:
$1,000,000.
(X) Commercial General Liability Insurance:
$1,000,000.
() E=ors and Omissions insurance: None Required
(incLuded in Commercial General Liability
coverage) .
() Errors and-oQmissions Insurance: $250,000 (not
included in Commercial General Liability coverage) .
(X) Automobile Insurance for all vehicles owned or
hired, covering bodily injury and property damage
providing a combined limit of $1,000,000 per occurrence.
B. Insurer Qualifications
(1) All insurance required by express prov~s~on of this
agreement shall be carried only in responsible
insurance companies that have been given a minimum
rating of "A" by AM Best, licensed to do business n
the State of California.
(2) The policies required,shall expressly provide that:
Page 4
)() ~ X3
(a) The insurer waives the right of subrogation
against the city and its respective elected
officials, officers, employees, agents and
representatives;
(b) the policies are primary and contributing to
any insurance that may be carried by the City;
(c) the policies cannot be canceled or materially
changed except after thirty (30) calendar days
written notice by the insurer to the City by
certified mail.
(3) At the request of the City Manager, the City shall
be furnished with copies of all such policies or a
certificate evidencing same. Consultant may
effect, for their own account, insurance not
required under this agreement.
10. Materials Required to be Supplied by City to Consultant:
The City will provide the following information to the
Consultant as well as other more specific information as
required:
A. . Annual Financial Statements
B. Annual Budgets
C. Project Descriptions and any required appraisals
D. Legal documents related to existing debt issues
E. Assessment District status, including delinquencies
11. compensation:
A. (x) Single Fixed Fee Arrangement.
For performance of all of the Defined Services by Consultant
as herein required, City shall pay a single fixed fee in the
amounts and at the times or milestones or for the Deliverables set
forth below:
Single Fixed Fee Amount: $67,500, payable as follows:
Page 5
10 - ~t
Milestone or Event or Deliverable Amount
Close of New Money Project Financing
Close of District(s) Refinancing:
Feasibility Report
Refinancing
or Percent of Fixed Fee
$27,500
$ 5,000
$35,000
12. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant
in the performance of services herein required, City shall pay
Consultant at the rates or amounts set forth below:
() None; the compensation includes all costs.
Cost or Rate
) Reports, not to exceed $
) Copies, not to exceed $ :
) Travel, not to exceed $
() Printing, not to exceed $
() Postage, not to exceed $
() Delivery, not to exceed $
() Long Distance Telephone Charges,
not to exceed $
(X) Other Actual Identifiable Direct Costs:
Miscellaneous, not to exceed $3,000:
. not to exceed $
$3,000
13. Contract Administrators:
City:. Robert w. Powell, Director of Finance
Consultant: Richard H. Clark, Sr. vice President
14. Liquidated Damages Rate: Not applicable
15. statement of Economic Interests, Consultant Reporting
Categories, per Conflict of Interest Code:
Page 6
~-~
(x) Not Applicable. Not an FPPC Filer.
16. Permitted Subconsultants:
None
17. Bill Processing:
A. Consultant's Billing to be submitted for the following
period of time: Upon achievement of milestones set forth
in paragraph 11.A.
B. City's Account Number: Debt Proceeds
18. Security for Performance:
Not Applicable
Page 7
)0 - ~
Ey~ibit List to Agreement
(x ) Exhibit A.
( ) Exhibit B:
Page 16
JD- ~7
COUNCIL AGENDA STATEMENT
Item
Meeting Date 9/15/98
//
ITEM TITLE:
Resolution/'1/6%etermining that any bonds issued pursuant to
Proposed comrl(u~ity Facilities District 97-3 will be sold on a
negotiated basis, waiving the consultant selection process as
impractical and appointing Stone & Youngberg as the underwriter
to market any such bonds
REVIEWED BY:
Director of FinanceT ,( \\1
City Manage1I)R. ~ ~V\
(4/5ths Vote: Yes
No-LJ
SUBMITTED BY:
SUMMARY:
The financial advisor for proposed Community Facilities District 97-3 (McMillin
Development) in the Otay Ranch, is recommending that the bonds to be issued to
finance infrastructure within the district be priced on a negotiated basis in order to
minimize borrowing costs to prospective home buyers. The firm of Stone &
Youngberg has been working diligently since their appointment in October, 1997 to
underwrite the bonds for the first assessment district in the Otay Ranch annexation,
Assessment District 97-2 (Village Development). Staff feel that because of the value
of the recently acquired knowledge by this firm of the Otay Ranch development plan
overall, and the closeness of the timing of the two bond issues, it impractical to
conduct another consultant selection process and is recommending that the process
be waived in favor of appointing Stone & Youngberg.
RECOMMENDATION:
That council adopt the resolution making the determination to sell any bonds pursuant
to proposed Community Facilities District 97-3 on a negotiated basis, waiving the
normal consultant selection process as impractical and appointing Stone & Youngberg
as the underwriter to market any such bonds.
DISCUSSION:
Fieldman, Rolapp & Associates, the financial advisor for proposed Community Facilities
District 97-3, is recommending that the bonds for this District be priced on a
negotiated basis in order to minimize overall borrowing costs to the benefit of
prospective home buyers. Pricing bonds of this nature on a negotiated rather than a
j(- (
Page 2, Item
Meeting Date 9/15/98
competitive basis when the security for the debt is concentrated in one land owner,
the developer, and their ability to develop and market the project is very common. A
negotiated pricing allows the underwriter to be much more involved in the entire
financing process, especially in developing the adequate disclosure of information, and
to make a more concerted marketing effort over an extended period of time. This
effort is meant to increase the comfort level of potential investors and thereby
decrease interest costs for the borrowing.
On August 12, 1997, the Council directed the Finance Director to conduct a
competitive process to select an Underwriter in order that the bonds for Assessment
District 97-2 (Village Development) might be priced on a negotiated basis. The primary
factor for choosing to price the bonds on a negotiated rather than competitive basis
was the recent history of the ownership of the property to serve as security for the
bonds.
A Request for Proposals was sent to thirteen underwriting firms, with seven responses
received (Attachment I). The proposals were reviewed by the Director of Finance and
the District's Financial Advisor, Kadie-Jensen, Johnson & Bodnar. Both reviewers
ranked the team of Stone & Youngberg and Merrill Lynch as the most capable based
on the following criteria as listed in the Request of Proposals.
*
Experience of the Firm indicated by the number and type of Assessment
District Bond Issues senior managed during the last three years.
*
Experience of the personnel to be involved in the transaction indicated by
the number and type of issues managed during the last three years.
*
Demonstrated understanding of the project indicated by the marketing
strategy included in the proposal.
*
Demonstrated distribution capabilities of the firm indicated by the
proposed marketing strategy, number and type of sales offices, market
focus, etc.
Stone & Youngberg has underwritten more California assessment district bonds than
all other firms combined, including a number of the outstanding City of Chula Vista
issues such as the Auto Park and Eastlake Greens, Phases I and II. Merrill Lynch brings
the industry's most expansive retail distribution network to the transaction, insuring
that the City and the developer will benefit from their structuring expertise and the
lowest possible interest rates. An additional advantage to this team is that the lead
banker who will be the day-to-day contact durin9 the course of this transaction is
based locally in San Diego.
//-~
Page 3, Item
Meeting Date 9/15/98
Since they were appointed, Stone & Youngberg has gained very valuable insight to not
only the Village Development project, but to all planned future development in Otay
Ranch, including specifically the initial McMillin development and the related
Community Facilities District 97-3. In order to successfully market the bonds at the
lowest interest rates possible, it is important that investors are comfortable with the
overall development plans for the entire area. Stone & Youngberg has recently
orchestrated an on site tour of the entire development area by prospective investors.
Because of the value of this current in depth knowledge and the closeness of the
timing of the two bond issues, staff feels it would be impractical to conduct the
normal consultant selection process and is recommending it be waived in favor of
appointing Stone & Youngberg based on the prior consultant selection process
conducted for Assessment District 97-2. Staff feels that although Stone & Youngberg
proposed as a team with Merrill Lynch on Assessment District 97-2, it has been Stone
& Youngberg that has been involved in the day to day decisions, and is recommending
that only one underwriter be appointed.
FISCAL IMPACT:
Approval of the resolution will have no fiscal impact on any City Funds. Although it
is impossible to estimate, the financial advisor is' advising that overall interest costs
related to the borrowing will be less if the bonds are priced on a negotiated rather than
a competitive basis, therefore benefitting the developer and eventually the home buyer.
The underwriting fee will be limited to 1.75 percent of the par amount of the bonds,
which is lower than previous district financings, which were limited to a maximum of
2 percent. Assuming the par value of the Assessment District Bonds amounts to $1 5
million, then the underwriting fees, or discount, would be two percent of that amount,
or $262,500. These costs, along with all other costs of issuance will be paid from the
debt proceeds.
11-:3
RESOLUTION NO. ,I 9/ b l'
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DETERMINING THAT ANY BONDS ISSUED
PURSUANT TO COMMUNITY FACILITIES DISTRICT 97-3
WILL BE SOLD ON A NEGOTIATED BASIS, WAIVING
THE CONSULTANT SELECTION PROCESS AS
IMPRACTICAL AND APPOINTING STONE & YOUNGBERG
AS THE UNDERWRITER TO MARKET ANY SUCH BONDS
WHEREAS, the financial advisor for Community Facilities
District 97-3 (McMillin Development) in the Otay Ranch, is
recommending that the bonds to be issued to finance infrastructure
within the district be priced on a negotiated basis in order to
minimize borrowing costs to prospective home buyers; and
WHEREAS, the firm of Stone & Youngberg has been working
diligently since their appointment in October, 1997 to underwrite
the bonds for the first assessment district in the Otay Ranch
annexation, Assessment District 97-2 (Village Development); and
WHEREAS, because of the value of the recently acquired
knowledge by this firm of the Otay Ranch development plan overall
and the closeness of the timing of the two bond issues, it is
impractical to conduct another consultant selection process and
staff is recommending that the process be waived in favor of
appointing Stone & Youngberg.
NOW, THEREFORE, BE IT RESOLVED the city Council of the
City of Chula vista does hereby determine that any bonds issued
pursuant to Community Facilities District 97-3 will be sold on a
negotiated basis.
BE IT FURTHER RESOLVED the City Council does hereby waive
the consultant selection process in accordance with Chula vista
Municipal Code section 2.56.070 because it is impractical to
conduct another consultant selection process and the City Council
appoints Stone & Youngberg as the underwriter to market any such
bonds.
Presented by
Approved as to form by
orney
Robert Powell, Director of
Finance
H: \home\lorraine\rs\bonds. 973
J {- 1(-
COUNCIL AGENDA STATEMENT
REVIEWED BY:
Item~
Meeting Date 09/15/98
Resolution / f/6 f' Approving the Software License and Maintenance
Agreement with Principal Decision Systems International (PDSI) for the
Purchase of an Automated Fire Staffing System and appropriating funds
from the General Fund available fund balance therefor.
Fire Chief a~ ./ /
Director J Management a~d~tormation ServiceslV
City Managefl)~ ~ ~~
ITEM TITLE:
SUBMITTED BY:
(4/5ths Vote: YesXNo_l
Currently, the Fire Department maintains its staffing information and conducts its operational
overtime callback staffing without the benefit of an automated system. Maintaining individual
schedules for overtime callback eligibility, and the retrieval of pertinent information for the day-
to-day management of the departmenfs resources is laborious, time consuming, and inefficient.
Until very recently, the Fire Department has not been able to find software which would meet
the needs of its unique staffing patterns, MOU "rules', and management requirements. The
TeleStaff@ software provided by PDSI, can be programmed with Chula Vista Fire staffing
specifics for efficient information storage, retrieval, analysis, and can even be used to automate
the telephonic recall of personnel for additional and overtime assignments.
RECOMMENDATION: That Council approve the Resolution approving the Agreement with PDSI
and appropriating funds from the General Fund available fund balance for the purchase of the
software license and related costs.
BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable
DISCUSSION:
Currently, the Fire Department maintains its staffing information and conducts its operational
overtime callback staffing without the benefit of an automated system, keeping its records by
hand and by using simple spreadsheets. Maintaining individual schedules for overtime callback
eligibility, and the retrieval of pertinent information for the day-to-day management of the
department's resources is laborious, time-consuming, and inefficient. Retrieval of historical
information from other than pre-set periods of time is highly difficult at the least. Equally
burdensome is the daily task of filling vacancies created by leave, injury, illness, or assignment
in accordance with the complex "rules' contained in the labor/management MOU. Compliance
with the MOU involves checking eligibility for overtime assignments; making phone calls to
determine the availability of specific staff; and, coordinating their tasking in addition to managing
the various immediate operational needs of the battalion.
}6J. ~ I
Meeting Date: 9/15/98
Page: 2.
Because this has been an issue for many years, the Fire Department management staff has
been searching for a software program which would meet the needs of its unique staffing
patterns, MOU compliance, and management requirements. Specifically, ideal software would
meet the following objectives:
. Ensure that Overtime hiring is conducted fairly and according to Department and union
requirements;
. Reduce the time required by personnel to conduct and oversee staffing;
. Provide access by employees to their individual calendars and staffing options;
. Share staffing information across the organization; and
. Provide real-time, up-to-date management reports and charts regarding specific elements
of staffing, payroll, leave usage, and other assignments.
There are a number of software programs on the market which perform a variety of database
management functions. With, however, the need for a software program to "understand" the
complexities of the Fire Department's platoon staffing rotation and MOU requirements, none of
the choices have been viable.
In July, 1998, after the FY 1998-99 City Budget process was completed, Fire Department staff
became aware of the capabilities of TeleStaffflll. The TeleStaffflll software provided by Principal
Decision Systems International (PDSI), can be programmed with Chula Vista Fire staffing
specifics for efficient information storage, retrieval, analysis, and can even be used to automate
the telephonic recall of personnel for additional and overtime assignments. Demonstrations of
the software for the City illustrated clearly that it is most-able to meet the above-stated
objectives.
Additionally, the software has the ability to be programmed with Citywide emergency
management staff phone numbers so that in the event of a significant emergency, appropriate
staff can be notified, via the automated system, of the event and initial instructions for duty
(assuming phone services are available). This allows key management personnel to turn their
attention to the immediate task at-hand without the burden of making numerous telephone calls
to other subordinate staff on their assigned phone "tree".
The TeleStaff@ software operates on a dedicated Windows NT server. This server will contain
the telephone "line" card which will allow the TeleStaffflll software to dial out when appropriate
and to accept calls from firefighters who are checking their status or updating their availability.
Because of the nature of the functions performed by the TeleStaff@ software, PDSI recommends
that this server be dedicated to this purpose. The Director of MIS has reviewed the
requirements of this software and agrees with the recommendation. The NT server will be
connected to the City's existing local area network via the cabling that already exists between
the MIS Department and the Fire Department. This will allow Fire Department personnel to
access the TeleStaff@ software from any of the microcomputers in the Fire Station. Some minor
wiring and installation of telephone lines will need to be done to support the TeleStaff@ system.
These costs are not part of the PDSI contract, but are shown in the fiscal impact section.
I/J -:2...
Meeting Date: 9/15/98
Page: 3.
FISCAL IMPACT:
The fiscal impact of this action is $18,681 broken down as follows:
. $17,081...................PDSI-provided Services and Materials
$8,081 Software license
$4,000 Software and PC Hardware Components
$ 500 Installation
$2,000 Training
$2,500 Configuration of Database
. $ 600...........lnstallation of 4 telephone lines
. $ 450...........Telephone line service charges for remainder of FY 1998-99
. $ 100...........lnstallation of 1 network connection
. $ 500...........2% Contingencv
Total $18,731
Future costs involve only the maintenance support for the software at $2,000 (due on the first
anniversary of this agreement and annually thereafter).
It is recommended that funds be appropriated to account numbers 100-1240-5252 ($1,550) and
100-1240-5298 ($17,181) from the General Fund available fund balance.
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RESOLUTION NO.~&:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE SOFTWARE LICENSE AND
MAINTENANCE AGREEMENT WITH PRINCIPAL DECISION
SYSTEMS INTERNATIONAL (PDSI) FOR THE PURCHASE
OF AN AUTOMATED FIRE STAFFING SYSTEM AND
APPROPRIATING FUNDS THEREFOR
WHEREAS, the Fire Department maintains its staffing
information and conducts its operational overtime callback staffing
without the benefit of an automated system; and
WHEREAS, maintaining individual schedules for overtime
callback eligibility, and the retrieval of pertinent information
for the day-to-day management of the department's resources is
laborious, time consuming, and inefficient; and
WHEREAS, until very recently, the Fire Department has not
been able to find software which would meet the needs of its unique
staffing patterns, MOU "rules", and management requirements; and
WHEREAS, the TeleStaff@ software provided by PDSI, can be
programmed with Chula vista Fire staffing specifics for efficient
information storage, retrieval, analysis, and can even be used to
automate the telephonic recall of personnel for additional and
overtime assignments.
NOW, THEREFORE, BE IT RESOLVED the city Council of the
city of Chula vista does hereby approve the Software License and
Maintenance Agreement with Principal Decision Systems for the
purchase of an Automated Fire Staffing System, a copy of which
sha~ be kept on file in the office of the City Clerk as Document
No. ~()9X'. J;) 7 .
BE IT FURTHER RESOLVED that the City Manager of the City
of Chula vista is hereby authorized and directed to execute said
Agreement on behalf of the City of Chula Vista.
BE IT FURTHER RESOLVED that the amount of $18,731 is
hereby appropriated from the General Fund available fund balance
to Account No. 100-1240-5252 ($1550) and 100-1240-5298 ($17,181).
Presented by
Approved as to form by
ney
James Hardiman, Fire Chief
H:\home\lorraine\rs\pdsi
J~ -0
SOFTWARE LICENSE AND MAINTENANCE AGREEMENT
This Agreement is between Principal Decision Systems International, Inc., 34 Executive Park, Suite
210, Irvine, CA 92714 ("PDSI") and City ofChula Vista, 276 4" Avenue, Chula Vista, CA 91910
("Client"). The parties hereby agree as follows:
J. Definitions
1.1 "Product" means the computer software and services set forth in Schedule A to this
Agreement, and any related documentation, whether in printed or machine readable form,
which documentation PDSI makes generally available to its customers. Product does not
include database products set forth in Schedule A to this Agreement.
1.2 "Uodates" mean maintenance releases (i.e. software error corrections) to Product which PDSl
provides without charge to maintenance customers.
1.3 "Deliverv Date" means that date on which the Product is delivered to and received by Client.
1.4 "License Period" means the term of this Agreement.
1.5 "Maintenance Period" means a period of one year from the Delivery Date, and any
subsequent period of one year for which the Maintenance Fee has been paid.
1.6 "Contract Signin"," means the date on which this license agreement is signed by Client
1.7 "Acceotance" means the software performs in accordance with the provided
documentation and begins upon installation for a period of no more than 30 days.
2. License
2. I PDSI hereby grantl; Client a non-exclusive, nontransferable, perpetual license to use and
execute the Product in object code form for Clienfs own internal operations, including the
merging of the Product and aRy.1.Ipdates into other programs for Client's own use, provided
that any portion of the Product so merged shall be subject to the terms of this Agreement.
2.2 Limitations
2.2.a. Cooies: Client shall be entitled to make copies of the Product and any Updates for
backup, disaster recovery, archival, training and test purposes only. Any copy made
shall be subject to the terms and conditions of this Agreement, including Section 5.2
herein.
2.2.b. Exoort Control Act: Client agrees to comply with the requirements of the United
States Export Administration Act of 1979 and any amendment thereto, and with all
relevant regulations of the Office of Export Administration, U.S. Department of
Commerce.
Principal Decision Systems International
34 Executive Pork, Suite 210 . Irvine, Colifornia 92614
714/474.7374' Fax 714/756-5640
/~-7
[2092" I;) ~
~ t9/ bg'
3. Maintenance
3.1 PDSI will provide Client with ongoing maintenance services during the Maintenance Period.
Such services shall include:
3.1.a toll free telephone consultation on the use of the Product and assistance in error
isolation and correction;
3.1.b the provision of problem solutions relating to the Product installed for the Client;
3.I.c prompt investigation and resolution of any errors, defects or other problems reported
toPDSI;
3.I.d Updates to the Product as they become available
3.2 Termination of Maintenance and Support Obligations
3.2.a. PDSl's maintenance and support obligations hereunder shall terminate on the fIrst
anniversary of the Delivery Date and thereafter on subsequent anniversaries of the
Delivery Date, unless Client elects to purchase additional support by payment of the
Maintenance Fee (as specifIed in section 4.3. below)
3.2.b. PDSl's maintenance and support obligations hereunder shall terminate automatically
upon the modifIcation of the Product excluding related documentation (or any portion
thereof) by Client.
3.3 Obligations by Clients with Maintenance
3.3.a Client agrees to limit maintenance support calls to PDSI to four named contacts, two
primary and two secondary. Client will provide these names to PDSI during
installation. Client may modifY contact names every six months or as agreed to by
PDSI.
3.3. b Client will provide P~ with 24 hour dial - up computer access.to the Product for
problem investigation, analysis and other maintenance needs. PDSI agrees to inform
Client of the nature of its dial up activities and obtain Client approval prior to each
access.
3.4 Effect of Termination of Maintenance and Suooort Obligations. In the event that PDSl's
maintenance and support obligations are terminated in accordance with the terms and
conditions of the Agreement, Client shall have no further rights to Updates or support for the
Product.
... Payments
4.1 License Fee. Client agrees to pay PDSI the License Fee set forth in Schedule A hereto in
accordance with the Payment Schedule set forth in Schedule A hereto.
4.1 Maintenance Charee. Client agrees to pay PDSI the annual Maintenance Support Plan fee set
forth in Schedule A hereto on the Delivery Date. Client aknowledges that the Maintenance
Support Plan fee is based on number of staff members managed by TeleStaff and may
increase if staff members are added during the Maintenance Period. Additional Maintenance
Principal Decision Systems International C"'/
34 ExecutivePork,Suite210;lrvine,Colifornio9261A 1 ~ - (5
714/474.7374. Fc..714/756-5640
Support Plan charges for additional staff members added during the Maintenance Period will
be invoiced upon occurrence for the amount prorated to the end of the current Maintenance
period and payment is due within 30 days of invoice date. For each consecutive year
thereafter that Client chooses to continue the maintenance and support obligations pursuant to
Section 3.1 above, payment of the Maintenance Support Plan fee is due on or before the
anniversary of the Delivery Date.
4.3 Late Charges. Any overdue payments shall be subject to a service charge equal to the lesser
of (a) one and one-half percent (1-1/2%) per month, or (b) the maximum percentage rate
amount allowed by law.
4.4 Taxes. Any sales, use, value-added or other taxes arising from transactions made in
connection with or pursuant to this Agreement (other than taxes based upon PDSl's income),
shall be borne by the Client.
5. Ownership
5.1 Ownership bv PDSI. PDSI shall retain all proprietary and intellectual property rights in the
Product. The license granted to Client herein does not convey any rights of ownership in and
to the Products. All right, title and interest in the Products and in any idea, know-how and
programs which may be developed by PDSI in the course of providing any technical services,
including any enhancements or modifications made to the Product, shall at all times remain
the property of PDSI.
5.2 Intellectual ProperlY Rights Notices. Client shall reproduce PDSl's proprietary rights
notice(s) on any archival and backup copies of the Product made.
6. Confidential Information
6.1 Nondisclosure. Each party agrees that it will not knowingly disclose to any third party any
Confidential Information belonging to the other party and will prevent the unauthorized
disclosure of such Confidential Information. In no event will any party use less care to
maintain the Confidential Information of the other party than it uses to maintain its own
Confidential Infonnation
6.2 Confidential Information. Gemidential Information may include (but is not limited to)
information concerning business methods, business plans, concepts, and test results, including
the results of any evaluation of the Product(s). Confidential Information specifically includes
Client's patient, donor and test results data Client acknowledges that Product and any
Updates contain valuable trade secrets and Client agrees to treat the Products as Confidential
Information of PDSI.
6.2.a Confidential Information does not include
(i) information which is or becomes publicly available through no act or omission of the
other party;
(ii) information of a party, which that party discloses to a third party without restriction
on disclosure;
(iii) information which is independently developed; or
(iv) information which is previously known to the receiving party without nondisclosure
obligations.
34 ~::~~a:a~~~~i~:~ ~~:t:::n~:;=::~a;614 J ~ - 9
714/474.7374. Fa~7'4/756-5640
6.3 Survival of Obligation. The nondisclosure obligations set forth herein shall survive the
expiration or termination of this Agreement.
6.4 Verification. Client agrees to maintain appropriate records of the number and location of all
copies or partial copies of the Products that may be made for Client's internal use (including
test, archival and backup copies). On PDSl's reasonable request, Client shall furnish PDSl
with a list of the location, type and serial number of any and all computers on which the
Product is installed and of the location and usage of all copies made by Client.
7. Indemnity
7. I Indemnitv bv PDSJ. PDSI represents and warrants that it has the right and authority to enter
into and to grant the rights described in this Agreement. PDSl will defend, indemnify, and/or
settle at its own expense any action brought against the Client, its trustees, officers, agents
and employees to the extent that such action is based on a claim that the Product infringes any
patent, trade secret or copyright of any third party enforceable in the United States, provided
that:
7.l.a PDSI is promptly notified in writing of the claim;
7.l.b PDSI has sole control of the defense and of any negotiations for its settlement;
7. I.c Client provides PDSI with reasonable assistance, information and authority
necessary for PDSI to conduct a defense or to negotiate a settlement;
7. I.d such claim does not arise from the use of a superseded or modified release of the
Product;
7.1.e should the Products become, or in PDSl's opinion be likely to become, the subject
of any such claim of infringement, then Client will permit PDSI, at PDSl's option
and expense, either to procure for Client the right to continue using the Products or
to replace or modify the Products or portion thereof to be non infringing with
substafttially the same functionality.
This section states PDSl's entire liebiIity for infringement or alleged infringement of copyright, -
patent or trade secrets by the Product.
7.2 Indemnitv bv Client. Client will defend or settle, at is own expense, any action brought
against PDSI to the extent that it is based on a claim that any of the Client's internally
developed software incorporating and/or utilizing the Product infringes any patent, copyright,
or trade secret right of any third party enforceable in the United States, provided that:
7.2.a Client is promptly notified in writing of the claim;
7.2.b Client has sole control of the defense of the claim and of any negotiations for
settlement of the claim;
7.2.c PDSI provides Client with reasonable assistance, information, and authority to
perform the above.
This section states Client's entire liability for infringement or alleged infringement of patent,
copyright or trade secrets by Client's internally developed software incorporating and/or utilizing
the Product.
Principal Decision Systems International
34 Executive Park, Suite 210. Irvine, California 92614
714/474.7374. Fo>l714/756-5640
.J~ - ?D
7.3 Administrative Claims Reauirements and Procedures. No suit or arbitration shall be brought
arising out of this agreement, against Client unless a claim has first been presented in writing
and filed with Client and acted upon by Client in accordance with the procedures set forth in
Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended,
the provisions of which are incorporated by this reference as if fully set forth herein, and such
policies and procedures used by Client in the implementation of the same.
Upon request by Client, PDSI shall meet and confer in good faith with Client for the purpose of
resolving any dispute over the terms of this Agreement.
7.4 Hold Harmless. PDSI shall defend, indemnify, protect and hold harmless the Client, its elected
and appointed officers, from and against all claims for damages, liability, cost and expense
(including without limitation attorneys' fees) arising out of the conduct of PDSI or any agent or
employee, subcontractors, or others in connection with the execution of the work covered by
this Agreement, except for those claims arising from the sole negligence or sole willful conduct
of the Client, its officers or employees and with the exception of the indemnification provisions
specified in Paragraph 7.2 of this Agreement. PDSI's indemnification shall include any and all
costs, expenses, attorneys' fees and liability incurred by the Client, its officers, agents or
employees in defending against such claims, whether the same proceed to judgment or not.
8. Warranty and Disclaimers of Warranty
8.1 Warranty. PDSI warrants that, when delivered, the Product will operate substantially in
accordance with published documentation when operated in the intended hardware and
operating system environment. This warranty and PDsrs maintenance obligations shall not
apply if error or problems result from Client's negligence or improper use of the Product.
PDSI DOES NOT WARRANT THAT THE PRODUCT WILL
8. I.A ACHIEVE ANY SPECIFIC BENEFITS;
8.1.B OPERATE WITHOUT INTERRUPTION;
8.l.C BE FREE OF ERRORS
8.2 Limitation ofRemedv. For 8flY"breach of warranty set forth in Section 8. I above, Client's
exclusive remedy and PDSrs entire liability shall be limited to the correction or replacement,
as soon as possible, of any Product, Product part, media or service which PDSI determines
will remedy the operating problem.
8.3 Disclaimer of Warranty. THE WARRANTIES SET FORTH ABOVE ARE EXCLUSIVE
AND IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, WITH
REGARD TO THE PRODUCTS. PDSI SPECIFICALLY DISCLAIMS ANY
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.
9. Limitation of Liability
CLIENT AGREES THAT PDSI SHALL NOT BE LIABLE FOR INDIRECT, SPECIAL, COVER,
RELIANCE, INCIDENTAL, OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF
ANTICIPATED REVENUE OR LOSS RESULTING FROM BUSINESS DISRUPTION), OR DAMAGE
TO SYSTEMS, DATA OR PROGRAMS, OTHER THAN THE PRODUCT, EVEN IF PDSI HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Principal Decision Systems International
34 Executive Park, Suite 210 -Irvine, California 92614
714/474.7374. Fc~ 714/756-5640
I:;. - It
PDSI'S LIABILITY FOR DAMAGES HEREUNDER SHALL IN NO EVENT EXCEED THE
AMOUNTS RECEIVED BY PDSI AS THE LICENSE FEE.
This Section allocates the risks under the Agreement. PDSl's pricing reflects this allocation of risk and
limitation of liability stated herein.
10. Term nnd Termination
10.1 Term. This Agreement will take effect on and shall remain in effect
unless and until terminated in accordance with this Agreement.
10.2 Termination. This Agreement may be terminated as follows:
10.2.a. This Agreement may be terminated by mutual agreement of the parties.
10.2.b. Client may terminate this Agreement at any time upon written notice to PDSI
10.2.c. PDSI may terminate this Agreement if Client is in material breach of any
provision of this Agreement and fails to cure any such breach within thirty (30)
calendar days following written notice of such failure to Client by PDSI.
10.3 Effect of Termination. Upon the effective date oftermination of this Agreement, Client
shall have no further rights to Updates or support for the Product.
lOA Survival of Obligations. The following obligations will survive termination of this
Agreement for any reason:
10.4.a all obligations relating to nonuse and nondisclosure of confidential information;
10.4.b all obligations relnting to indemnification and protection of proprietary and
intellectual rights;
10.4.c all obligations to make payments of amounts that are or become due under this
Agreement prior to termination.
--
10.5 No Damages Due to Termination. Neither party will be liable to the other for any damages,
whether direct, indirect, incidental, consequential, or otherwise, as a result of terminating
this Agreement in accordance with the terms and conditions herein.
11. CenerllR Terms
I I.l Notices. All notices (including address changes) shall be in writing and, except as
otherwise provided herein, will be deemed given when delivered personally or sent by
first class mail or prepaid express courier to the other party at their respective addresses
as set forth above.
1 1.2 Assignment. The rights and obligations of each party under this Agreement shall not be
assignable by either party without the prior written consent of the other party .
11.3 Waiver. The failure of a party to prosecute its rights with respect to a default or breach
hereunder shall not constitute a waiver of the right to enforce its rights with respect to the
same or any other breach.
Principal Decision Systems International
34 Executive Pork, Suite 210 i;lrvine, California 92614
714/474-7374 . Fo~714/756-5640
'''~ 1 ~
I\.4 Governine Law. This Agreement will be governed by the substantive laws of the State
of California.
11.5 Force Maieure. Neither party shall be responsible for any delay in its performance due to
causes beyond its control.
11.6. Jurisdiction. In any legal action relating to this Agreement, the parties agree to the
exercise of jurisdiction over such action by a state or federal court in Orange County,
California. Client agrees that any action brought by Client shall be instituted in a state or
federal court in Orange County, California
11.7 Severabilitv. In the event that any provision of the Agreement is found to be invalid or
unenforceable, the remaining terms of the Agreement shall remain in force and effect.
11.8 Use of Name. Neither party shall use the name of the other party in any marketing,
promotional or advertising materials without the prior written permission of the other
party.
11.9 Insurance Reauirements. This agreement is contingent upon PDSI providing
documentation to Client that it has Commerica1 General Liability insurance in force that
meets Client's requirements and that Client is named as an Additional Insured. A
Certificate of Insurance showing PDSI as primary and Client as an Additional Insured
shall be provided by PDSI.
11.10 Entire Aereement. This Agreement, including Schedule A attached hereto, constitutes
the complete agreement between the parties and supersedes all prior or contemporaneous
discussions, representations, and proposals, written or oral, with respect to the subject
matters discussed herein. No modification of this Agreement will be effective unless
agreed to in writing by the parties.
By signing this Agreement, the parties acknowledge that they have read and agreed to the terms and conditions
herein.
PRINCIPAL DECISION SYSTEMS INTERNATIONAL, INe.
N~--
Title: ~~ a~-k~ nait::1J~q,&,
City of Chula Vista
Name:
Title:
Date:
Principal Decision Systems International
34 Executive Pork, Suite 210 ; Irvine, California 92614
714/474.7374. Fax 714/756-5640
I;}. - L3
SOFTWARE LICENSE AND MAINTENANCE AGREEMENT
Schedule A
Customer: Chula Vista Fire Department
S~ction I. TeleSlaff Software License
o TeleStaff Software License I $
One time fee for software license to support up to 100 Customer staff
Includes sales tax on $7,500
8,081 I
Seelion n. TeleStaff Hardware Comnonents
o TeleStaff Database Software and PC Hardware Components I $
Includes PC Server hardware, 4-line telephony card, 4 - user database
and other required components.
4,000 I
Section Ill. TeleStaff Imnlementation Services
o Installation I $ 500 I
Fee for deploying database and TeleStaff servers at the location selected
by Customer management. Does not include installation of TeleStaff client
software on Customer client workstations.
o Training I $ 2,000 I
Includes 16 hours of training on usage of the TeleStaffsoftware and its
telephone interface. Training plan can be as group, train-the-trainer or other
options as agreed to by PDSI and Customer.
o Configuration I $ 2,500
Configunltion includes population of TeleStaff database with Customer data
including staff information, work codes, shift schedules, organizational hierarchy,
overtime rules, and 0Thl!t information required for correct hiring~ Maintenance
includes software support, and maintenance and enhancement updates for a 12 month
period. Annual Maintenance Contract is renewable at Customer's option at the end
of each 12 month term.
Proposal Summary I
Section I. TeleStaff Software License 5 8,081
Section II. TeleStaff Hardware Components $ 4,000
Section III. TeleStaff Implementation Services 5 5,000
Total Investment 15 17,081
Payment Terms: 50% is due upon contract execution and the remaining 50% is due 30 days from
installation upon acceptance.
Future Costs: Maintenance is 52,000 per year and includes software snpport and maintenance and
enhancement updates for a 12 month period.
Principal Decision Systems International
34 Executive Pork, Suite 210. Irvine, California 92614
714/474-7374. Fa1l714/756-5640
I;/. - Jt{.
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COUNCIL AGENDA STATEMENT
Item~
Meeting Date 9/15/98
TITLE:
Resolution \.l\ \ lo q
Approving an Agreement with San Diego Gas & Electric for
the City's Purchase of the South Bay Service Center Located
at 1800 Maxwell Road and Adopting Negative Declaration
95-02A in Connection Therewith.
Resolution \ct\'10 Regarding the City's Intention to Issue Tax Exempt
Obligations to Finance the City's Corporation Yard and
Directing Staff to Return with a Financing Plan.
SUBMITTED BY: Assistant City Manager ~
Assistant City Attorne~
REVIEWED BY: City Manage?p\L ~::...-- (4/5ths Vote: Yes_ No--l
In December 1991 the City Council adopted a Civic Center Master Plan that identified future
space and facility needs to meet the anticipated growth in Chula Vista. The Master Plan included
planning for a new Public Works Corporation Yard (Corp Yard) to be relocated from its current
6 acre/261 ,360 square foot location at 707 "F" Street to a new site. The new site would better
accommodate the space projections needed for staff and equipment to meet the growth anticipated
in the City's eastern territory. A revised Corp Yard Master Plan was completed in February 1998
in response to an opportunity to purchase an existing facility that could potentially meet the
majority of the City's Corp Yard needs and at the same time save the City millions of dollars.
This agenda statement outlines the requirements of the updated Corp Yard Master Plan and the
proposed purchase of the San Diego Gas & Electric (SDG&E) South Bay Service Center (SBSC),
a surplus facility not currently used by the utility company, to meet the Master Plan needs
identified for the Corp Yard.
RECOMMENDATION: That the City Council adopt the proposed resolutions:
1) Authorizing the purchase of the SDG&E SBSC for a purchase price not to exceed
$7 million plus escrow fees and due diligence costs estimated in an amount not to exceed
$55,000, and authorize the Mayor to execute said agreement.
2) Expressing the City's intention to issue tax exempt obligations to finance the City's
Corporation Yard and directing staff to return with a recommended financing plan.
3) Approving a negative declaration regarding CEQA findings related to the purchase,
improvement and operation of the South Bay Service Center.
Further, it is recommended that staff be directed to return to the City Council with a report and
recommendations regarding the disposition of the existing Corporation Yard site including the
evaluation of options for its development as a profit center for the City or for its sale and
redevelopment of the site.
BOARD/COMMISSION RECOMMENDATION:
N/A \
\3-
Page 1 of 7
BACKGROUND:
.
In 1996 staff became aware that the South Bay Service Center, owned by SDG&E, was
under-utilized and could potentially meet the City's future corporation yard needs at a substantial
savings to the costs identified by the Corp Yard Master Plan.
In a process that began in June 1996, staff began an extended series of discussions with SDG&E
regarding the possible purchase of SDG&E's South Bay Service Center located at 1800 Maxwell
Road. At that time, SDG&E was evaluating possible options for internal use and/or the sale/lease
of the site. In August 1996, staff received authorization from the City Council to pursue more
formal discussions with SDG&E for the purchase of the SBSC. The process became an extended
one due to collateral discussions on the SDG&E franchise agreement and divestiture agreement,
which indirectly affected the conclusion of this deal.
Public Works Corporation Yard Description
The City's existing Corporation Yard was constructed in the mid 1960's and is located at 707 "F"
Street (see Attachment 1 - locator map). The site includes 6 useable acres and approximately
30,000 square feet of building space for office, communications, maintenance and transit activities
as well as vehicle storage. In addition, the site contains fueling facilities for gas and diesel
vehicles. Compressed Natural Gas (CNG) facilties do not exist.
.
Although this site had met the needs of the City for many years, the Montgomery annexation, the
growth of the Transit Division and the bus fleet to accommodate new routes and the need to
provide service to new development has strained this site's abilitr to adequately meet staff and
equipment requirements.
South Bav Service Center Site Descriotion
The proposed site is located at 1800 Maxwell Road, in the southeast portion of the City off Otay
Valley Road (see locator map Attachment 2). It is comprised of approximately 25 gross acres of
which approximately 15.27 are useable. The balance of the site is made up of slopes, open space
and landscaping.
Existing facilities include:
Office Space:
Warehouse Facility:
Service Facility (Garage)
TOTAL
31,037 square feet
14,188 square feet
8.649 square feet
53,874 square feet
Underground fueling facilities for gas and diesel also exist. No CNG facilities are in place.
Although extensive tenant improvements will be required to accommodate the specific needs of
the City and its crews, the evaluation of this site as compared to the new facility identified in the
. Corporation Yard Master Plan showed a significant cost benefit to the City.
SDG&E estimated having a basis cost of ::I: $13 million in the property with an estimated
replacement cost of ::I: $9.2 million.
Page 2 of 7
\ 3-2-
.
.
.
CorDoration Yard Master Plan Reauirements
The revised Corporation Yard Master Plan outlines the following requirements:
Acreage: 18.96 acres (825,931 square feet). This acreage anticipates the buildout of the
Dtay Ranch, the relocation of the animal shelter to a separate facility and a separate facility
to meet Police needs. In the original facility projections, the Dtay Ranch had not been
planned for and the animal shelter and some police needs were anticipated at the new Corp
Yard site.
In addition, space needs for all public works' needs were reviewed and updated to better
reflect current and projected needs. For various public works' activities, the buildout
space projections in the 1998 study are below the levels projected in 1991, despite the
addition of Dtay Ranch. In general, the reduced space forecasts reflect increases in the
volume of contract work as well as more efficient operating procedures in the City's Stores
division.
In anticipation of the possible purchase of the SDG&E site the following activities took place:
o The City's Construction and Repair Division prepared a needs and cost assessment
of the improvements necessary to meet the City's Corp Yard needs, as identified
by the Master Plan, at the SDG&E site. Space and cost estimates were revised to
reflect the 1998 update of the Master Plan.
o
A comparative analysis of an SDG&E/non SDG&E option was evaluated.
In conducting the analysis staff included, among others, the following assumptions:
o The SDG&E site is approximately 5 acres smaller than total acreage needs
identified in the Master Plan and the purchase of additional property would
ultimately be required to meet the Corp Yard needs at buildout. (In developing the
financing requirements and cost analysis for buildout of the Corp Yard, acquisition
of up to an additional 10 acres was included.)
o The City would achieve certain efficiencies and gain substantial construction
savings through the purchase of an existing facility as compared to property
acquisition and new construction. These savings were projected to be $5.5
million.
o Under the SDG&E site alternative, substantial savings (approximately $4.9
million) would arise from reductions in the project's financing costs, attributable
both to lower overall project costs and lower costs during the initial construction
phase.
o
The SDG&E site will generate additional savings by enabling the City to transfer
selected activities from the Civic Center to the existing office space at the SDG&E
facility. By reducing the amount of new space which has to be built at the Civic
Center, a net savings of approximately $2.0 million was projected. City functions
that are anticipated to be relocated to the new Corp Yard facility include, but are
\3-3
Page 3 of 7
.
.
.
not limited to: Engineering Construction and Inspection, Open Space and some
Building Inspectors.
Staff concluded that the cost of the SDG&E site, including the purchase of an additional 5 acres,
results in net savings to the City of approximately $12.4 million over the cost of constructing a
new facility. The result of this acquisition is a savings to both the City and the PFDIF.
Acauisition Costs and Financinl!:
Attachment 3 is a breakdown of costs associated with the proposed purchase, site improvements,
financing, staff/management costs and contingencies. These costs are summarized below for
Council's information.
.:. The total project cost, including financing, is projected to be $24,738,504. Of this
total, $7,032,636 are estimated finance related expenses.
.:. The site acquisition and improvements are broken into two phases. Phase I
($22,855,270) includes site acquisition ($7,000,000), site improvements
($4,319,801 - see Breakdown of Planned SDGE Site Improvements - Attachment
4), up to 10 acre additional property acquisition ($1,960,200), design/project
management/staff and contingency costs ($997,558) and start-up equipment
($1,741,290)1 and interest ($6,836,421).
.:.
Excluding financing expenses, the City is responsible for 51. 5 % of the principal
project cost. The PFDIF is responsible for the remaining 48.5%. The PFDIF
percentage reflects the ratio of new equivalent dwelling units (EDUs) to citywide
EDUs projected at buildout. This ratio is the agreed upon methodology used to
allocated PFDIF and City cost shares on various joint-benefit projects. However,
of the total project cost including financing ($24,738,504), only $10,267,342
(41.5%) is allocated to the City and $14,471,162 (58.5%) is allocated to the
PFDIF. The lower City percentage reflects the assumption that a significant
portion of the City's obligation will be paid from existing fund balances and not
financed (Transit's share2). As such, while the City's share of the project's
principal costs is 51.5%, its share of the interest expense is only 26.6%, thereby
reducing its overall project share to 41. 5 % .
.:. The City obligation will be shared appropriately among various restricted funds
and the City's General Fund. As shown in Attachment 3, the total general fund
obligation is estimated at $699,884.
.:. While this option results in significant savings, the City receives less value by
accepting a pre-existing facility. To correct for the lost "building life," City
'This generally includes shop/garage-related items such as new bays/lifts, shop equipment,
and fuel/wash station equipment.
'Transit is paying its share of the acquisition cost from existing fund balances. Transit's
obligation equals approximately 30% of the total cost for phase I, or approximately $4.9 million
and $322,000 for phase II, or a total obligation of approximately $5.2 million.
\3-q
Page 4 of 7
developers have agreed to pay a "building depreciation offset" totaling $814,800.
This cost has already been factored into the PFDIF/City shares.
. FINANCING VERSUS CASH PURCHASE
.
.
It is staff's intent to fInance the proposed acquisition using the DIF, General Fund and restricted
funds for debt service payments. This rationale is based on the fact that (1) insufficient DIF funds
exist to pay cash, (2) other signifIcant projects such as the animal shelter and the new police
facility are competing for use of the same dollars and (3) the City is currently able to borrow.
money at a cheaper rate than it earns on investment.
The purchase contract is contingent upon the City obtaining acceptable fInancing. A related item
on tonight's agenda seeks approval for a Financial Advisory Form to assist the City in determining
the best alternative to fInancing this and other major projects.
SUMMARY OF TERMS AND CONDITIONS
The following outlines the major deal points related to the purchase of the South Bay Service
Center:
1) Purchase Price:
Seven Million Dollars ($7,000,000) payable in cash at close of escrow.
2)
PropertY Descrimion
Approximately 25 acres of improved real property located at 1800 Maxwell Road in the
City of Chula Vista including a 31,037 square foot offIce building, a 14,188 square foot
warehouse, an 8,649 square foot service facility/garage and a parking lot and related
improvements.
3) Escrow: Due Diligence:
City has 90 days to inspect the condition of the property, and to process any necessary
entitlements necessary for project development. The City may extend this period for an
additional 30 days if it is proceeding diligently.
4) Initial Deposit: LiQuidated Damages:
City must deposit $50,000 to open escrow. This amount is refundable if City does not
acquire the property for any reason other than a City default. If City defaults and fails to
acquire the property, SDG&E retains the $50,000 as liquidated damages.
5)
Conditions to Close:
Conditions to close include:
a)
b)
City inspection and approval of the condition of the property ,
City determination of project feasibility, \:::, _ 5"
Page 5 of 7
.
.
.
c)
Ctiy approval of the terms for fmancing the acqliisition and development of the
project, and
SDG&E's obtaining fmal California Public Utilities Commission (CPUC) approval
of the transfer.
d)
A complete copy of the formal purchase agreement containing the above terms, and other standard
terms and conditions, is attached hereto as Attachment 5. The agreement was jointly prepared by
SDG&E staff and the City Attorney's office and has already been approved by SDG&E. A copy
of the City's appraisal on this property is available in the City Manager's office should Council
wish to review it.
THE USE OF THE EXISTING CORPORATION YARD
A number of options exist for the future of the existing corporation yard. The obvious is the sale
of the site as excess land in order to take advantage of the upswing in the economy. Based on
comparable land sales, this could result in an influx of revenue to the City of $2.2 - $2.8 million.
(This represents gross revenue. This net gain would have to exclude the City's cost to clean-up
the site.)
However, staffis recommending that other options, including public/private partnerships for the
development of the site, be evaluated to determine their long term impact on revenues to the City.
Staff is aware that the University of California system has taken advantage of this option for many
years creating an ongoing revenue stream to offset their operating costs. Staff recommends that
staff evaluate this and other options that could be of benefit to the City and return to the City
Council with a report and recommendations.
ENVIRONMENTAL REVIEW
Staff conducted an Initial Study (Attachment 6) for the proposed acquisition in accordance with
the requirements of the California Environmental Quality Act (CEQA). The findings of the Initial
Study were that the City's acquisition and operation of the SDG&E facility as the City's new
Corporation Yard would not have any significant adverse impacts on the environment and
therefore, a Negative Declaration was prepared and circulated for public review. No public
comments were received as a result of that notification. The Initial Study and Negative
Declaration are attached.
FUTURE ACTIONS:
Staff will be returning in the near future with financing recommendations and a report and
recommendations regarding consultant and architectural services for the plarming and design of
the new Corp Yard space to better meet staffing and equipment needs.
FISCAL IMPACT:
The estimated cost breakdown is outlined in Attachment 3. Total purchase costs are $24,738,504
including site acquisition/improvements, additional land purchase, staff/management, start up
costs and financing charges. Of that amount, the City is responsible for 41.5 % of the total or
$10,267,342. The DlF is responsible for 58.5%, or $14,471,162. (Because Transit's share will
be paid from existing fund balances and not fmanced, the City's share of interest (26.6%) is
\~-Co
Page 6 of 7
.
e
.
significantly lower than it's share of the principal (51.5%), thereby reducing its overall project
share to 41.5%. If the entire project cost was financed, the City's share would be 51.5%.)
The purchase of the existing site as compared to the construction of a new facility results in
estimated savings to the City of $12.4 million.
The City may receive additional expenditure offsets as a result of the sale or redevelopment of the
existing corporation yard through a public private partnership. Community Development staff
estimates that comparable land sales range from $8,50 - $11.00 per square foot if the property
were sold, or approximately $2.2 - $2.8 million. If the property is developed as a "profit center
for the City, potentially greater revenues could be realized over the long term.
The total General Fund Impact is projected at $699,884 tentatively to be spread over 20 years.
Sufficient funds have already been appropriated in the CIP (GG-13 I) to cover the initial deposit
'of $105,000.
Attachments:
(Resolution )
S~~ I!.A-{
Approving an Agreement with San Diego Gas & Electric for the City's Purchase of the
South Bay Service Center Located at 1800 Maxwell Road, Adopting Negative Declaration
95-02A in Connection Therewith and Appropriating Funds Therefor
Resolution
(SE~ 1313-1)
Regarding the City's Intention to Issue Tax Exempt Obligations to Finance the City's
Corporation Yard
Attachment I:
Locator Map - Corporation Yard at 707 .. F" Street
Attachment 2:
Locator Map - South Bay Service Center at 1800 Maxwell Road
Attachment 3:
Acquisition and Financing Costs
Attachment 4:
Breakdown of Planned SDGE Site Improvements
Attachment 5:
Porchase Agreement with SDG&E
Attachment 6:
Negative Declaration and Initial Study - 1800 Maxwell Road, Case No, IS-95-02A
(8/14/98)
\~-1-
Page 7 of 7
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Corporation Yard
Cost Breakdown
Start-up Equipment 1
Phase I
$ 7,000,000
$ 4,319,801
$ 1,960,200
$ 303,989
$ 693.569
Total: $14,277,559
$ 1.741.290
$16,018,849
SDOE Site Acquisition:
SDOE Site Improvements:
Sexton Site:Acquisition/Improvements
Design/Project Management/Staff Services
Contingency
ACQUISITION & FINANCING COSTS
ATTACHMENT 3
Phase II
$ 0
$ 795,875
$ 749,025
$ 92,694
$ 245.640
$1,883,234
$ 0
$1,883,234
Total
$16,160,793
$ 1.741.290
$17,902,083
NOTE: It's assumed that all service related expenses (e.g. design, project management, etc) are
paid directly. All remaining expenses are assumed to be financed, unless otherwise noted.
Funding Breakdown
PFDIF (.485) Phase I Phase II Total
Principal $ 7,769,142 $ 913,368 $ 8,682,510
Interest $ 4.973.852 $ 0 $ 4.973.852
Subtotal: $12,742,994 $ 913,368 $13,656,362
Site Depreciation Credit $ 434.288 $ 380.512 $ 814.800
Total: $13,177,282 $ 1,293,880 $14,471,162
CITY (.515)
Principal $ 8,249,707 $ 969,866 $ 9,219,573
Interest $ 1.862.569 2 $ 0 $ 1.862.569
Subtotal: $10,112,276 $ 969,866 $11,082,142
Site Depreciation Credit 3 ($ 434.288) ($ 380.512) ($ 814.800)
Total: $ 9,677,988 $ 589,354 $10,267,342
PROJECT
Principal $16,018,849 $ 1,883,234 $17,902,083
Interest $ 6.836.421 $ 0 $ 6.836.421
Total: $22,855,270 $ 1,883,234 $24,738,504
The City share is broken down by fund on the following page
1 Generally includes shop/garage-related items, including bus/car wash equipment These required items
were originally identified in the 1991 Master Plan study. Staff will need to review the items to insure their
applicability.
220 year bond @ 5.43%. Assumes that Transit share of project is funded directly from Transit fund
balances.
3 Represents a PFDIF payment to compensate the City for the "lost value" associated with a pre-existing
facility (SDGE) versus a new facility.
\ ~ - \0
Funding Breakdown-City Share
CITY (.515) Phase I Phase II Total
Transit (Principal) $ 4,906,7234 $ 566,853 $ 5,473,576
Transit (Interest) $ 0 $ 0 $ 0
Subtotal: $ 4,906,723 $ 566,853 $ 5,473,576
Site Depreciation Credit $ 0 ($ 245.255) ($ 245.255)
Total: $ 4,906,723 $ 321,598 $ 5,228,321
Sewer (Principal) $ 2,428,6275 $ 303,201 $ 2,731,828
Sewer (Interest) $ 1.554.475 $ 0 $ 1.554.475
Subtotal: $ 3,983,102 $ 303,201 $ 4,286,303
Site Depreciation Credit $ 0 ($ 131.183) ($ 131.183)
Total: $ 3,983,102 $ 172,018 $ 4,155,120
Parking Meter (Principal) $ 108,6546 $ 9,416 $ 118,070
Parking Meter (Interest) $ 70.021 $ 0 $ 70.021
Subtotal: $ 178,675 $ 9,416 $ 188,091
Site Depreciation Credit $ o ($ 4.074) ($ 4.074)
Total: $ 178,675 $ 5,342 $ 184,017
General Fund (Principal) $ 805,703 $ 90,396 $ 896,099
Site Depreciation Credit ($ 434.288) $ 0 ($ 434.288)
$ 371,4157 $ 90,396 $ 461,811
General Fund (Interest) $ 238.073 $ 0 $ 238.073
Total: $ 609,488 $ 90,396 $ 699,884
4 Transit's share is 30.1% of site acquisition/improvement costs + $609,178 of the start-up equipment.
'Sewer's share is 16.1% of site acquisition/improvement costs + $129,940 of the start-up equipment.
6 Parking Meter's share is 0.5% of site acquisition/improvement costs + $37,266 of the start-up equipment.
7 Assumes that General Fund portion of the site depreciation credit is used to offset its Phase I costs.
\~-1\
ATTACHMENT 4
Breakdown of Planned SDGE Site Improvements
Public Works Shop Areas:
Sewer Maintenance $ 24,200
Street Maintenance $ 121,000
Traffic Signals $ 338,305
Traffic Signs/Striping $ 194,700
Building Services $ 513,645
Communications $ 200,640
Park Maintenance $ 117,150
Soil Test Lab $ 12,100
Parking Meters $ 58,080
$1,579,820
Garage Expansion
Ops Building
Automatic Wash Station
Fuel Station
Office Area Remodel
Miscellaneous Improvements I
$1,579,820
$1,052,415
$ 600,450
$ 150,000
$ 475,361
$ 349,155
$ 112,600
$4,319,801
I Includes fencing, phone system modifications, restriping, etc.
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ATTACHMENT 5
niRCHASE AND SALE AGREEMENT
Reci~
This Purchase and Sale .Agreement (hereinafter "Agreement") is entered into on
. 1998, by and between SAN DIEGO GAS & ELECTRIC, II
California COtpOration. (hereinlLfter "Seller") and TIlE CITY OF CHULA VISTA, a chartered
municipal coIpOration of the State ofCalifomia (hereinafter "Buyer") with Seller and Buyer
sometimes individually refenoecl to as a "Parly" and collectively as the: "Parties."
A. Seller is the OWIIel of lIJlP1'Qximately 25 acres of real property ("Real Property'')
located at 1800 Maxwell Road, in the City orChula, County or San Diego, State ofCalifomia,
together with (i) those improvements generally described as an office building (approximately
31,037 ~.ft.), warehouse facility (approximately 14,188 sq.ft.) end service facility/garage
(approximately 8,649 sq.ft.) (cCfllectively, "Improvements"), end (ii) those fix1ure$ end other
items ofpersoruU property desc,ibed on Exhibit "A" attached hereto end incorporated herein by
this reference (collectively "Fixtures"). The Real Property,Improvements and Fixtures shall
collectively be referred to in this Agreement as the "Property." The legal description of the:
Property is:
Lots 11 through 19, inclusive ofChula Vista Tract No. 81-6 Otay Valley Industtial
Park, in the City of ChUla Vista, County of San Diego, Slate of California,
according to M1qJ thereof No. 10974. filed in the Office of tile County Recorder of
San Diego County, June 21, 1984.
B. Buyer desires to ~DUlChase the Property, end Seller desires to sell the Property
pur$UllDt to the terms and conditions in this Agreement.
NOW, THEREFORE, for and in consideration of the recitals, covenants and other
provisions set forth herein, and (lther good and valuable consideration, the receipt end sufficiency
of which are hereby acknowledg.ed, the Parties hereto, intending to be legally bound, agree as
follows:
I. DEFINITIONS
The following teImS whether capitalized or not as used in this Au:rec:ment shall have the
following meenings:
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1.1. "Agn:enlent" melll1$ this Purchase and Sale Agreement, including aU
exhibits and proper e.........m..ents hereto.
1.2. "City" means the City of ChuJa Vista, Califomia, including its duly
elected City Council. appointed IIlllll8gers. ll1tomeys, boards, commissions and divisions,
together with sepamte1y ccnstituted gcvemmental or quasi.governmental bodies having
jurisdiction over the Property.
1.3. "Closing Date" means the date on which the Clo~ng OCCUlS unless
extended in accordance with tWl provisions of this Agreement.
1.4. "Closing" means the lllcordation of the Deed in accordance with the
provisions of this Agreement
1.5. "County" mellllS San Diego County, California.
1.6. "Deed" means a duly authorized, executed and acknowledged corporation
grant deed completed to attach the legal description of the Property conveying thcProporty from
Seller to Buyer.
1.7. "Dcvelopment Entitlements" means all applications for, agreements,
di:scretionary approvals, grants, permits, licenses, subdivision maps, and all like and other
m.atters related to development (lfthe Property, and to the extent neoeSBllry to be m:c:ived from
the Governmental Agencies and shall also include any and all permits required by natura1
resource agencies of the State of California and/or the United States Government.
1.8. "Due Diligence Date" mClllll; that date ninety (90) ca1Antiar days after the
Effective Date; provided, however, so long as Buyer is proceeding diligently to c:val\lllte the
PiO}J<;rty as contemplated by sec-tion 5.1.2. of this Agreement, Buyer may extend this date for an
additional thirty (30) days by written notice to Seller sent prior to the initial Due Diligence Date.
1.9. "Effective Date" means that date on which Title Company conflrms to
Seller lUId Buyer its rel;:Cipt of a IlOpy of Ibis Agreement bearing original signatures of Seller and
Buyer.
1.10. "Environmental Law" means any federal, state. regional or local law,
regulation, decision of1he courts, ordinance, rule, code, order, directive, guide1ine, peonit, or
permit conditions, cum:ntly exisling or as amended, enacted, issued or adopted in the future
which relates in any way to wozker or workplace safety, environmental conditions,
environmental quality or policy, Or health and safety issues or concerns (including product
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safety). Environmental Law includes, without limitation and as the same may be amended, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 USC,
Section 9601 et seq.), the Resource Conservation and Recovery Act (42 USe, Section 6901 et
seq.), the ClUpC11ter-Presley- T~lllIler Hazardous Substance Account Act (Califomia Health and
Safety Code, Section 25300 et seq.), the Toxic Substance Control Act (29 use fifi 2601, et seq.)
the CalIfornia Hazardous Waste Conttol Law (California Health & Safety Code, Section 25100
et seq.), the Occupational Safety and Health Act (29 USC ~~ 651 et scq.), the California
Occupational Safety and Healtb Act (California Labor Code ~ fi 6300 et seq.), IlIld any regulationl;
or rules promulgated thereunder.
1.11. "&crow'" means the escrow opened with Stewart Title Company of
California, Inc. pursuant to the Escrow Instructions, to effect and transact the sale and purchase
of the Property in accordance 'YIith this Agreement.
I .12. "Escrow Instructions" means those escrow instructions which shall be
provided to the Escrow Holder :~ursuant to section 4.1. of this Agreement and any additional
instI:u4;tions from time to time n:quested by Escrow Holder to effect the sale and purchase of the
Property by Seller to Buyer in accordance with this Agreement.
Agreement.
1.13. "Execution Date" means the date set forth in the initial plllllgnlph of this
1.14. "Govc:mlllental Agencies" means all governmental agenc::ies and entities,
whether City, County, State, Federal or o1herwise, having jurisdiction or PotentiaIjurisdiction
over the Property or development thereof.
1.15. "Hazardous Materials" means any chemical, substance, material,
controlled substance, object, cor..llition, saUd or hu:ardous waste or combination then:ofwhich is
or may be hazardous to human health or safety or the environment due to its ignitabi1ity,
corroslvity, reactivity, toxicity, Clfother harmful or potentially harmful properties Or affects.
Hazardous Materials include, without limitation, any flammable explosives, radioactive
materials, hazardous wastes, toxi.c substances or related materials, and sub5tances deJined as
"hazardous substances," ''hazardous material", hazardous wastes" or "toxic substances" in, under
or pursuant to any Environmental Law (as that term is defined above). "Hazardous Materials"
shall also include oil o~ petroleum and petroleum products, asbestos, and any asbe.$tos contAining
materials, radon, polychlorinated biphenyls (PCBs), urea fOrmaldehyde ill5u1ation. lead paints
and coatings, and all of those chcmica1ll, substances, materials, controlled substances, objects,
conditions and waste O~ combinatioD$ thereof which are now or become in the future listed,
deJined or regulated in any manner by any federal, state Of local Environmental Law (as that term
is defined above). For purposes of this Agreement, the terms "encumbrance" and
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696 2595 P.es
"encroachment" shall not be dclemed to include the presence of any Huardous Material
contamination on, in or under lhe Property or its underlying groundwater.
1.16. "Reasonllhleness" snaIl mean the objective good faith and indU$lly
practice$ of a prudent and sophisticated buyer Or l5Cller of commercial real property under SIllDe
or similar circumstanoes as tho;$e that are the basis of this transaction.
1.17. "Title COIDP/lIly" and "Escrow Holder>> means Stewart Title Company of
California, Inc..
1.18. "Title Policy" means a California Land Title Association (CL T A) 1970
FOIDl B Ownc:r's Policy (a "CL r A Polioy'') insuring Buyer in the amount of the Purohase Price,
that fee title to the I'Iop"lly is v~ in Buyer, subject only to the conditions of title accepted by
Buyer plllSllant to section 5.1.1. of this Agreement and the standard printed polley terms and
exclusions as regi5tered by Title: Company Witlithe State for inclusion in a CLTA Policy fonn;
provided, that Buyer, at its election, may require Title company to issue an updated or different
fOlDl of Title Policy, including but not linUted to an American Land Ti1:\e Association "ALTA"
1970 Owner's Policy (an "ALTA Policy") if (a) fue Closing is not delayed thereby; (b) Buyer
bears the cost of any endorseme.l1ts ordered by Buyer; (c) Buyer shall pay the increment in
premium for any such updated or different fonn ofTi1:\e Policy; and (d) Buyer shall provide and
pay for the cost of any DeW surv'~y of the Property requited therefor.
2. PURCHA....E AND SALE
_Subject to the terms and conditiom; in tl1is Agreement, Seller agrees to l5Cll and Buyer agrees to
purchase all ri(lht. title and interc!St in and 10 the Properjy.
3. PURCHASE PRlCE &; DISBURSEMENT TO SELLER
The purchase price for the Prope;:ty shall be cash in the amount of Seven Million DQIlam
($7,000,000) ("'Purchase Price''), payable by Buyer to Seller as follows:
3.1. Cash in tho amount ofFifl3r Thousand Dollars ($50,000.00) ("Deposit''),
which Buyer shall deposit in imnledialely available fimds with Escrow Holder within tWo (2)
business days following the Effe<:tive Date. The Deposit shall be released and paid to Seller by
Escrow Holder upon the satisfaction of Buyer's Conditions as set forth in Sections 5.1.1. and
5.1.2. ill the maIlIlIlr set forth therein. In the event Closing does not occur for any reason except
for (a) breach of this Asreement by SeIler, or (b) the non-satisfilction of a condition to Close for
the benefit of Buyer as set forth in section 5.1. aflbis Agreement, the Deposit shall be retained
by Seller as liquidated damages pursuant to lhe provi$ions of Section 18 hereof.
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3.2. The balance of the Purchase Price in the amount of Six Million Nine Hundred
Fifty Thousand Dollats ($6,9511,000.00) shall be paid in cash at the time IIIId in the IJ18.IID.er as
instructed by Escrow Holder to effect Closing on the Closing Date.
4. ESCROW
Escrow shall be demled open upon the Effective Date. Thereafter the Parties shaI1 deliver signed
Escrow Instructions to Escrow Holder within 6&cn (lS) calendar days. The Escrow
Instructions shall not modifY or amend this Agreement, however, the Parties shall execute lllIY
additiollal instructiOllli rcquestc't by Escrow Holder in a manner consistent with the Agreement.
Unless the Parties otherwise 1I1\Itually agree in writing to an extension, the Closing Date shall be
on or before lih 111.*1 S) calendlll'days following the Due Diligence Date.
~- "Co (+5)
5. CONDITIONS TO CLOSE OF ESCROW
5.1. BllVer's Conditions. The Closing and Buyer's obligatiOllS to pun:hase the
Property pursuant to this Agreement are conditioned on the ~sfaction of the following
conditions precedent which are for the benefit ofBllyer:
S.l.!. ~1inarv Reoort Buyer's approval after delivery to Buyer from
Title Company within fifteen (1 5) calendar days of the Effective Date of a preliminary report on
the Property, together with copills of all documents referred to therein (collectively, "Preliminary
Report"). Buyer shall within thirty (30) calendar days from its receipt of the prelimiDary Report,
report in writing in the llllIIIIler t:rovided herein for the giving of notice any 1CllS0nable objections
to said documents. Buyer's faillll'C to submit written notice of objections within the lime stated
shall be deemed Buyer's disapplUval of said documents. Any objections noticed by Buyer
pursuant to this subsection 5.1.1, may be removed by Seller, at Seller's sole election and at
Seller's sole cost and expense prior to Closing. Seller shall give notice of its intent for
adchessing Buyer's objections within five (5) calendar days of receipt of Buyer's objections. If
Seller elects to remove Buyer's objections, then Buyer's condition set forth in this subsection
shall be deemed $a1isfied. If, ho'wcver, Seller does not choose to SIltlsfy Buyer's objections, then
Buyer shall have the option to either (a) terminate this Agreement by providing written notice
thereof to Seller in the manner SEt forth herein fOl'the giving ofnolice, or (b) proceed with the
transaction subject to all exceptions to title shown on the Preliminary Report. In the event Buyer
elects a termination of this Agreement pursuant to this subsection 5.1.1., the Deposit with interest
shall be returned to Buyer. less all of Escrow Holder's costs IIIId expenses of termination. Prior
to Close of Escrow, Title Company shall becommittcd to issue a Title Policy in favor of Buyer
reflecting a fee interest in the Prcpcrty vested in the Buyer, subject only to those exceptions
approved by Buyer herelmder and the corresponding standard printed policy tenus and
exclusloD$.
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S. t .2. Continl!enQy Miltlen. Prior to the Due Diligence D*. Buyer's
approval, in its sole discretion of (a) the physical condition oftbl:: l'IOyw<ty (both land and
improvements); (b) the suitability of the Property for Buyer's intended use as !be City public
works yard (the "Project"), including the financial feasibility of acquiring and mlllcing the
necessary imptoVcn:tents for SlIJ:m use; aDd (c) a Negative Declaration for the Project to the mdcnt
required in order to comply with the California Environmental Quality Act ("CEQA"); and (d)
tenns fur financing the acquisition of the Property and development of the Project. Buyer shall
haw; Wl.til the Due Diligence Date to review all aspects involving Buyer's prospective purchase
ofllie Property, including but nOllimited to, a plan of rehabilitation of the Prope.ty to suit
Buyer's intended use, zouing, s<)ils conditions, geology, engineering requirements,
environmental matters, ecoDOmic feasibility and the availability of Development Entitlements
necessary in Buyer's judgment for Buyer's intended use, together with any other requirements of
City and other Governmental Agencies, all of which arc collectively referred to as the
Contingency Matters.
5.1.2.1. Existin~ Seller's Data. With respect to
the Contingency Matters, Seller shall within twenty (20) business days of the Effi:ctive Date
provide Buyer with a written SW1lIIlll1'y of the kinds of activities and operations Seller condul1lcd
on the Property during Seller's ownership thereot; copies of all relevant Property-related studies,
investigations, SIllVeys, plans, drawil:Jgs, agreements, permits, technical ~"tudies, and other
Property related documents, and reportS in Seller's possession, or otherwise rellSOnably available
thereto at nominal cost (collectively, "Existing Seller's Data"). Seller shall bear any
reproduction costs which can be accomplished in-house; Buyer shall reimburse Seller for any
reproduction costs which are Incurred by an outside vendor. Seller makes no representation or
wammty with respect to Existing Seller's Data with regard to their accl.ll'llCY relative to the time
of their respective preparation, their accuracy relative to the s.;:ientific standards or protocols in
effect at the time of their preparation, their accuracy or usefulness with respect to Buyer's
intended use of the Property or 11) their complllll1Ce or noncompliance with any governmental
codes, ordinances, rules or policies governing the Property lIS of the Effective Date; provided.,
however, Seller represents and waITants that it has no actual knowledge that any fuctua1
information contained in Seller's Existing Data is materially untrue Or inaccurate. In particular
with regard to Sener's engineering drawil:Jgs for the Property, Buyer understands that said
&swings are prqlllled to utility c'JlCI'ations standards and not necessarily with reference to other
standards, for example, the Unif('nn Building Code, and Buyer does not and will not rely on said
drawings with reference to any code or standard. Seller further makes no representation or
warranty concerning the accuracy of the square footage of the buildings comprising a portion of
the Improvements nor the amount of land comprising the Real Property. Buyer will
independently cause the Improvements to be measured The Parties represent to each other and
agree that neither the size (in acres) of the Real Property nor the size of the Improvements (in
square feet), other than their gcncnl acceptance by Buyer for Buyer's intended use, was or is
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material in negotiating and determining the: Pw:chase Price or any other portion of this
Agreement.
5.1.2.2. Permission to Ent!lr: ADm'Oach to Physical Tcstlnl!. So
long as this Agreement is in effect and Buyer is not in default, Buyer, its rc:p1'eSentatives, agents
and independent contractors (colla:tively "Contractors'') shaH have the: right, subject to the
provisions of this Agreement, Ilt all reasonable times to enter on the Property fur PIIIpO$e5 of
obtaining any and all infonnation reasonably nc:ccs8lllY for Buyer to satisry itself concerning all
matters rcgarl!iua the: Preliminary Report and the Continge:m:y Matters. The right of entry and
inspection is intended to and d'3es include the right to conduct limited soils testing and boring on
the Property subject to the prior reasonable approval of Seller.
In the event that during Buyer's investigation of the Property, Buyer
discovers the existence of Hazllro0\J8 Materials on, in or immediately lll'oWld the Property then
the Parties agree to meet and confer in good faith in order to detennine possible terms upon
which the Parties may be able, nonetheless, to proceed with the Closing. If after good faith
efforts the Parties cannot reach agreement, then either Party may terminate the Agreement by
written notice to the other, in which case neither Party shall have III1Y further obligations
hereunder. Notwithstanding the furegoing, if the Hazardous Materials condition is such that it
either can be remediated to a level reasonably satisfactory to the other Party, or a "No Further
Action" letter or equivalent regulatory approval can be obtained, in each case prior to the Due
Diligence Date, either Party can require the other Party to proceed with the Closing under this
Agreement by committing to and taking such action at its sole cost The Party committing to
and/or undertaking remedial activity pursuant to this section 5.12.2. (including obtaining
gove,..,m""'t~l clearances theTdorwhcre applicable)shal1 obtain reasonable approval of the work
from the other Party prior to its commencement, agrees to conduct the work and obtain
clearances at its sole cost and eKpense, and agrceli to intl"""niry the other Party for that remedial
work to the same extent as provided in sections 10 or 11 hereof.
Buyc:r agrees to and shall release, IndP.mnl~, defend (with counsel
acceptable to Seller) and hold Seller Indemnitees (as hereafter defined in Section 10) harmless
fur, from and against any and alll""s, claims, demands, liability. personal injury, negligence, or
property damage arising out of or in connection with the exercise by Buyer, its employees and/or
Contractors, agents, successors and assigns of the foregoing rights accorded to Buyer umlcr this
section 5.12.2., including as may arise or relate to (I) the filing of any and all mechanics' liens or
claims of liens. (ii) from any IH'W release, treatment, use, handling, generation, lStorage or
disposal of HazardOUli Materials on, in. under, or from the Property or the W1derlying
groundWater resulting tberefrOIn which violates any Environmental Law or any other federal,
state or local law, whether statutory or common law, ordinance, or regulation perlllining to the:
release of Hazanlous Materials into the environment from or at the Property by Buyer and/or
Conttactors or anyone acting 01\ their behalf in the exercise of the rights of entry. inspection and
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696 2595 P.09
investigation confened by this subsection 5.1.2.2., or (Hi) personal injury (includini any
expos~ to It Hazardous Material) sufi'ered by any of Seller's or Buyer's employees or
Contractors or other person. Buyer's obligations of indemnification and release under this
section shaIl9ll1'Vive the ClosiDg or any termination oflhis Agreement.
Except lIS may be required by applicable federal or sbde laWll, each
Party agree.s not to provide Or disclose to any third Party copies or contents of the ~g
SelIer's Data, or of any other re ports or studies prepared by or for Buyer, related to the physiea1
condition of the land component of the Property without the prior written consent of the other
Party. Notwithstanding the fo1'llgOing, Buyer ruay disclose such information to a third party
l.D1der contract with Buyer for the evaluation or development of the Property to the extent
reasonably necessary to filcilita:te such evaluation or development; provided, however, that SIlch
third party consultant also agrellS to keep SIlch infonnation confidential as provided herein. In
the event that any third party requests that Buyer disclose such lnformation pursuant to the Public
Records Act, Buyer agrees to lI.!lSCrt all applicable exemptions to disclos~ under the Public
Records Act, and not to disclosel such Infonnation unless ordered to do so by a reviewing court.
BuyCl" shall not under any cil'Cumstances enter upon the Property or
C3U$C entry by any Contractor, (It' work to be done upen the Property, particularly errtry or work
that is to be conducted in proximity to any of Seller's utility and communication filcililies located
thereon, without a representativIl of Seller being on-site to direct SIlch enUy or work. Buyer shall
give Seller not less than five (5) business days' prior written notice so that Seller can detennine
whether nor not the planned WOl:k is in proximity to Seller' 5 facilities and to pcnnit Seller time to
advise Buyer of the location of8eller's facilities. Buyer shall. at its sole expeniSC and promptly
upon completion of any investigative work which physically alters the Property, restore it to the
same physical condition as existed prior to such work:, and repair any physical damages resulting
from Buyer's activities. Buyer 1;ba1l give Seller not less than five (5) busines.s days prior written
notice of any planned activity of BUYer hereunder which could result in the imposition of a
mechanics' lien upon the Property in order that Seller may have the opportunity to post and
record a notice of non-responsibility.
Prior to any entry on the Property, Buyer shall obtain and deliver to
Seller a cer1ificate of insurance r1lllling Seller as an additional inSIlred and evldem:ing general
public liability and propmy damage ill8llr/ll1(;e with limits of not less than Two Million Dollars
($2,000,000.00) in the ag®ate for liability coverage and not less than One Million Dollars
($1,000,000.00) in the aggregate for property damage; provided, however, Buyer may satisfy the
foregoing obligation by providing Seller with reasonably satisfactory evidence of adequate
Buyer's self-Insurance or P<;loled insurance coverage.
5.1.2.3. Develooment Entitlernent~.. On or before the Due
Dlllicnce Date, Buyer sball be rE!ll$Onably asmred that Buyel' can obtain. subject only to those
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6962595 P.10
coIlditioQll reasonably acceptal:1e to Buyer, ail Development Entitlcmen~ permits and other
approvals from applicable GovemmentaI Agencies necessary for Buyer's intended finllnciIIg and
use of the Property. Except fOl Buyer's obligation to comply with CEQA, as provided in Section
5.1.2, lSbove, re<:eipt of said Development Entitlements by Buyer is not a condition to Closing.
Seller agrees to cooperate with Buyer by executing all required llpplications for such
Development Entitlements so long as Seller does not bear any expense for that pwpose. and as
long as such applications are limited or conditioned so that, without Seller's prior written
consent, neither Seller nor the l'roperty shall be bound thereby prior to the Closing.
5.1.2.4 SatiRflwionorWaiverofCondition. Inthc
event Buyer is not satisfied, in its sole discretion, with llnY or ail ofContlngency Mllttets, Buyer
shall have the right, on or befoi'>= the Due Diligcnce Date, to terminate this Agreement by
delivery of written notice thereof to Escrow Holder and Seller. Provided Escrow Holder is in
fC\;eipt of notice of termination from Buyer on or before the Due Dfiigence Date, Escrow Holder
shall thereupon return the Depo,it to Buyer less deduction of Escrow Holder's costs and
cxpellllCs. Buyer's failure to deliver written notice of termination on or before the Due Diligence
Date shall be deemed Buyer's disapproval of one or more Contingency Matters.
5.1.3, ~'s Performance
obligations under this Agreement.
The perfolIlllll1CC by Seller of each of its
5.1.4. Seller's ReoresentatillDS and WillTanties Sellcr's warranties and
represcntatiOmi in section 8 of this Agreement shall be true and COffCI)t as of its execution of this
Agreemem and as of the Closing or Closing Date.
5.1.5. ~llaneous Documents. Seller shall have delivered to Escrow,
executed originals of the followillg: (a) Internal Revenue Code Section 1445 affidavit; (b) State
of California Withhnlding Exemption Certificate (Form 590); and (c) such other documents and
instruments necessary to effect the transfer of the Property to Buyer pursuant to the terms and
conditions of this Ail"ecment.
5.2. Seller's C'.nnrlitions. The Closing and Seller's obligation to proCeed
with the sale of the Property are Ilubject to satisfaction of the following conditions pfC\;edent
which are for the benefit of Seller:
5.2.1. The pcrfoIlllllllce by Buyer of each of its obligations under this
Agreement, including, without limitation, Buyer's delivery, prior to the Closing and as instructed
by Escrow, of Buyer's closing costs and prorations and all other funds sufficient to close the
purchase of the Property.
SEPT.DOC 9
South Bay ServIce Center
Cleon copy sobject to revisi""" to closh'll dale
print date 9/9/98
\~-:J-\
SEP-09-1998 10'12
SDGE REO
696 2595 P.ll
5.2.2. CEQA compliance by Buyer, andifrequired, approval of the
transaction evidenced by this Agn;ement by the California Public: Utilities Commission pursuam
to Sec:tion 851 of the California Public Utililie:i Code or other document evidencing compliance
with said section ("851 Appro"al"). Aa copy of the 851 ApPrOVal shall be deposited with
&crow by Seller prior to Closing. Seller agrees to exercise its good faith and best efforts, at
Seller's cost, to obtain such 85 j Approval, if required. or to take such action as may be reqtrlrcd
to validly eliminate such requirement, within sixty (60) days after opcnm; of Escrow.
6. CLOSING COSTS AND PRORATIONS
6.1. Prorations. All real property taxes and the interest on assessments, if any,
whether payable in insta11menul Or not llJJd inCluding, witholJt limitation, Ill1 supplemental taxes
attrihtable to the period beforE' the Closing for the fiscal tax year in which Closing occurs, shall
be prorated as of Closing. Ifth: amount of taxes or charges applicable to any portion oflhe
Property cannot be determined lIS of the Closing because the assessed value of the Property or the
tax rate affecting the Property bas not been detennined or publioly announced, or portlom; of the
Property have not yet been segregated for tax purposes, or for any other reason, then a proration
shall be made based IJPOn the most current information avaiIab1e to the Title Company, and an
adjUBtll1ent outside of Escrow shall be made between the Parties upon written request of either
Party when the current amount "ftaxes or charges becomes known.
6.2. Seller's ClosiIlll Costs. Seller sha11 pay the cost of a title policy
in CL T A Policy form, IIDY documentary transfer taxes aodIor sales taxes, if applicable, and one-
half (112) of any recording and "scrow fees but subjeot to any obligation by Buyer to assume
escrow fees in the event of term inatiOIl of this Agreement. For purposes of intezpreting this
section 6.2 and section 6.3 follo"wing. "escrow fees" are defined to include all expenses of escrow
includin; charges for the preparation, acknowledgment and recordation of documents reasonably
required to implement the provi:rions of this Agreement and subsequent escrow instructions
unle:is specifically requested by or for the benefit of Seller or requested. by or for the benefit of
Buyer, in which case the PllIty f,lr whose specific benefit that fee is inowred shall bear the cost of
that fee in its entirety.
6.3. Buver's Closinl! Costs. Buyer shall pay the costs of any endorsements
to or upgrade in the covemge of the CL T A Title Policy, and one-half (112) of any recording fees
and escrow fees.
7. BROKER'S COMMISSIONS
Seller and Buyer each represent llnd wamml to the other that no broker's commission. finder's
fee or other compensation is due any individual or entity as a consequence of this transaction.
SEPT.DOC 10
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Clean <:opy subject to revisions to closing date
print date 919198
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SDGE REO
6962595 P.12
Seller agrees to indemnitY. defend. release and hold Buyer lw:mless from and against any and all
claims, losses, costs or demands arising from or related to any claim for conunis$ion, finder's fee:
or other compm'lation alleged to have: been incurred on behalf of Seller.
Buyer agrees to indP.mnil:Y, defend, release and hold Seller harmless from and egllinst any and all
clalms, losses, cos1s or demands arising from or related to any claim for commission, finder's fee
or other compensation alleged to have been incurred on behalf of Buyer.
8. SELLER'S REPRESENTATIONS AND W ARRANTIF.<;j
Seller represents and warmnts to Buyer as of Closing:
8.1. Seller owns the Property free IIl1d clear of all liens, Ikcnses, claims,
encumbrances, easements, encl"oecbments on the Property from adjactll1t properties,
encroachments by improvements on the Property onto adjacent properties, or rights of way of
any nature, not di:sclosed by tlu: Preliminary Report. .
8.2. There is no ilCtual or pending litigation involving the Property.
8.3. Except as di:;closed on Exhibit "B" attached hereto end incoI]lOlllled herein by
this re~rence, Seller has no knowledge of any violetions of, or notices concerning defects or
noncompliance with any applie~bJe code, statute, regullltion, ordinance, judicial order, or judicla1
holding pertaining to the Property including, without limitation any viollltion of any
Environmental Law.
Properly.
8.4. Seller is not in default under any contract, note, or encumbrance relating to the
8.5. Thi$ Agreem.lll1t has been duly authorized, executed and delivered by Seller, is
a legal, valid and binding obl.ig&ion of Seller, and is enforceable in IICcord;wce with its terms
without the requirement of any additional act or approval by Seller.
8.6 Except as diSo~Josed on Exhibit "B" attached hereto and Incorporated herein by
this n:ferBQ.Cc, to the best of Seller's knowledge, during Seller's ownel'8hip of the Property, Seller
has not undertaken., permitted, a~thorized or suffered the generation, discharge, n:lease, burial or
disposal on, under or about the I'roperty of any Hazardous Materials. For purposes of this
section, ''the best of Seller's knowledge" means the actual knowledge of or the exisrence of
written evidence within Seller's possession other than the Existing Seller's Data provided by
Seller to Buyer pursuant to secti.>n 5.1.2.1 of this Agreement.
SEPI'.DOC 11
S<>ll1h Bay Service Center
ClOlll1 copy subject to rc:vIsloDS II> closi.g date
print date 919198
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SDGE REO
5952595 P.13
8.7. Except as specifically set forth in subsectiollB 8.1. through 8.S., there are no
representation:!, agreements, ammgements, or circumsbmces, oral or written, between the Parties
reiating to the subject matter contained in this Agreement that are not fully expressed in the
Agreement, and Seller has ncit made and does not make any rep~tation or warranty
cOncerning aoy matter or ~: affecting or relating to the Property not expressed in this
Agreement.
8.8. Seller's repl-esentations and warranties contained in this section 8 shall survive
the Closing.
9. BUYER'S REPRI:SENTATIONS AND W ARRANTI1l:S
Buyer tepresents and warrant:! to Sc:ller lIS of Closing:
9.1. Buyer is either a sophisticated owner and developer of real property or has the
ability through its advisors and consultants, to be familiar and e>lperiencc:d with all requirements
for the acquisition and development of real property. Buyer is aware of and understands or has
the ability to be professiOnally advised and understand the ramifit'ations of the n~
' processes within the jurlsdictio'Q of City or other Governmental Agencies required for
improvement and development ofreal property genem\lyand the obtaining ofDcve1opment
Entitlements for the Property specifically, and that the Due Diligence period is sufficient and
adequate for Buyer to review and satisfy itself as to the Co~ Matters.
Buyer hereby further acknowledges and agrc:cs that warranties of merchantability and
fitness for a particular purPOSe lire: excluded from the transaction contemplated hereby, as are any
warranties arisina from a COIll'SC' of dealing or usage of trade, and that the Seller has not
warranted, and does not hereby WlIll'llIlt, that the Improvements and/or the Fil\tUres on the
Property now or improvements in the future will meet or comply with the requirements of any
safety code or regulation of any applicable Governmental Agency or jurisdiction. Without
limiting the generality of the foregoing, except as otherwise expressly provided in this
Agrcc:m.ent, Buyer hereby assumes all risk and liability (and agrees that Seller shalJ not be liable)
for any special, direct or indirect, consequential, or other damages resulting or arising from or
relating to Buyer's ownership, use, condition, location, maintenance, repair. or operation of the
Property.
9.2. Subject to thClse exceptions to title which Buyer may approve and acc:ept upon
Closing pursuant to section 5.1.:!., and notwithstanding anything to the contrary contained in this
Agreement, Buyer understands ~lIId agrees and will acc:ept the Deed and Bill of Sale, if any, upon
the understanding and agreement that the Property (including the Improvements and/or Fixtures)
are being sold and conveyed "as is," "where is" and "with all faults" which may exist (including
without imila1ion the fact that the back-up generator is not operable and that prior to construction
SEPT.DOC 12
South Bay Servicc Center
Clean copy subject to revisiona 10 closing date
print date 919/98 '
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SDGE REO
6962595 P.14
of the Improvements on the PrQPerty, Seller =Wrtered certain adverse IlOi.Is conditions in some
slope areas Qfthe Property), without any representatioo or warranty by Seller except BS cxprcss1y
set forth in sections 8 and 11 oftbis Agreement. Buyer sh.a1I not be relieved ofits obligations
under this Agreement by the pendency, threatening or P8$5ing, of any initiative, or by the
impoation of any momtoriUID on development, or similar actions adversely llfi'ecting the
Property which may be inlpos<:d by any Governmental Agency havini jurisdiction over the
Property. Buyer hereby BSswrlCS the risk that certain conditions, including Hazardoua Materials
may exist on the Property and, subject to Seller' $ limited representations and WIIl1'III1ties in
section 8 and /1iI=IIlents of release and indemnification set forth in section 11 in favor of Buyer,
Buyer hereby releases Seller oJ and from any and aU claims, actions, delllllDds, rights, damages,
costs or expenses which misht mise out of or in connection with the condition of the I\Opelly, as
more fully set forth in section :t 0 hereof.
9.3. Buyer has conducted or shall conducllln independent investigation with
respect lO the :wning and subdiviaon laws, ordinances, resolutions, and regulations of all
Governmental Authorities having jurisdiction over the Property, and the use and improvement of
the Property, and Seller has not made and does not make any representations lO Buyer OllllnY of
these mattel"S, includini without limitation, the availability of Dcvelopment Entitlements.
9.4. This Agrceluent and all other documents and all other documents delivered by
Buyer lO or fur the benefit of Sl:ller have been or will be duly authorized, CXCCutlld, and delivered
by Buyer; are legal, valid and binding obligations of Buyer; and are enforceable in IICcOrdam:e
with their respective WIIDS.
9.5. The repn:sentations and warranties of Buyer set forth in this Pamgraph 9 shaIl
survive recordatlon of the deed IUld the Closing.
10. RELEAsll ANIJ INDEMNIFICATION OF SELLER
Except /IS lO those mattel"S fur which Seller has agreed to indemnify Buyer Indemnitees as
defined and pursuant lO sectioo II below, Buyer agrees. in addition lO Buyer's agreements of
indemnification and release set l'Orth in sectioti 5.1.2.2., lO release, indcnmify, defend and hold
Iwmless Seller, its subsidiaries, affiIiates, divisions and their respective direc:tors, officers,
employees, agents, successors lIIJ.d assigns, hereIn collectively called the "Seller Indcmnitees, "
from and against any and a1llos,lCs, liabilities, claims, demands, dimlages, causes of action, fines,
penalties, costs and expenses (including but not limited to all reasonable consulting, engineering,
atlOmeys' or other professionall'i:es) (collectively "Losses"), which Seller Indemnitees, or any of
them. may incur or suffer by rca30n of any personal injury (including without limitation, disease
Or death), property damage (illChdillll without limitation any loss of, loss of use of, or
destruction of any real or peI1lOnal property), or natural resources damaie, arising out of Or in any
way connected with any relellSC, treatment, use, handling. generation, SlOtage or disposal of
SEPT.DOC 13
South Bay ServIce Center
ClcaIl wpy subject 10 revisions In c100; Ilg date
print dllle 919/98
\~-2~
5EP-09-1998 10:15
5DGE REO
696 2595 P.15
Hazardous Materials, in, unde;~, or from the Property or the underlying groundwater occurring
after Closing; excluding, howclVer, any such Losses arising from the release, treatment, use,
handling, aeneration, storage (If disposal of hazardous materials occurrina prior to Closing.
Buyer's obligation to indemnify Seller's Indemnitees under this Section shaIl not be limited in
any way by any limitation on the amount or type of damages, compensation or benefits payable
by or for Buyer under any Worker's Compensation Acts, Disability Benefit Acts or other
Employee Benefit Acts. Buyer expressly waives the right and benefits ofCalifomia Civil Code
~1542 and does so undemaoding and acknowledging the signif1C8llCe of said express waiver of
Section 1542 which provides 85 follows:
"A general meQe dOtJII not extend to claims which the eredltor do" not know or
oped to nist in his fav4lr at the tUne of f:Qe1Itin& the releue, which if mown by him must
have materially aft'eded his settlement with the debtor."
Buyer's agreem::nts ofreleBlle and indemnification and performance as set forth
hen:in shall survive the Closint:.
11. RELEASE AND INDEMNJFICATION OF BUllER
Exeept as to those matters for vfhich Buyer has agreed to indemnify Seller Indemni.tees pursuant
to subsection 5.1.2.2. and section 10 of this Agreement, Seller agrees to release, inilPmniiy,
defend and hold hannless Buyer, its elected officials, appointees. officers, employees, agents,
representatives. successors and assigns (he.einafter collectively referred to as the "BUyer
Indemnitees") from and against any and all losses. liabiIities. claims, demands, causes of action,
fines, penalties, costs and expenses (including but not limited to all reasonable consulting,
engineering, attorneys' or other professional fees), which Buyer Indemnitces, or any ofthern,
may incur or suffer, by reason (of any personal injury (including without limitation, disease or
death), propelly damage (including without limitation any loss of, loss oiuse of, or destruction
of any real or personal property I, or natural resources damage, arising out of or in any way
connected with any rel~, treatment, use, handling, generation, storage or disposal of
Hazardous Materials on, in, uneler, Or from the Property or the underlying groundwater occurring
prior to Closing caused by Sellc:r Or those under the control of or conlralrt with Seller. Seller's
obliaation to indemnity Buyer Indemnitees under this Section shall not be limi1ed in any way by
any limitation on the amount or type of damages, compensation or benefits payable by or for
Seller under any Worker's Compensation Acts, Disability Benefit Aots Or other Employee
Benefit Acts. Seller's agreemerlt of release, indemnification and perfonnance as set forth in his
section 11 shall survive the CIOlling.
SEPT.DOC 14
South &y Service Center
Clean copy $Ubject to revisions to closin& date
print date 91")1")8
\ ~-2- lo
- SEP-09-1998 10:16
SDGE REO
696 2595 P.16
12. PROPERTY SECURlTYI RISK OF LOSS
12.1. Pronertv Securi!X. Seller shall from and after the Effective Date
maintain the existing security system for the Property. The security system is genmalIy
described as a motion detector/alass break system and is accessed via touch pad. The Parties
understand and agree tbat the existing security System is lllODitored by Seller from ilS Mission
Control facility in San Diego. California. and that DO personnel acting on behalf of Seller are
on-site. When exercising its rights of entry to the Property as provided in Section 5.1.2.2.,
Buyer agrees to follow Seller's security procedures. and to promptly report to Seller any
evidence of break-in, vauda1lsm. or breach of security.
12.2. A1locati-an of Risk of T ""~.ArisinJr from Damalle or Destruction of
~~
12.2.1. D""'02e or Destruction T "'s than $100.000.00.
Except as expressly otherwise provlded in this subsection 12.2.. this Aar=ment shall
be governed by the provisions of Civil Code 61662 as of the Effective Date. If prior to
Closing. dll1Dllge or desb'uctiOll to the Property occurs not as the result of the fault or primary
negligence of Seller and to the extent that the cost of repair or replllcement without deduction
for depreciation is less than $100.000.00, Buyer shall not be entitled to termInate this
AgIlle......ul. but shall be obligated to close the Escrow and puIChase the Property as provided
in this Agreement without abatement in the Purchase Price; provlded. however. that in this
circumstance Seller shall depot.it with Escrow for the credit to Buyer any deductible or
retention applicable to the e'Vetlt of damage or loss, and sball further assign to Buyer at the
Closing all monies to be paid to/ its insurer in connection with the damage or loss and all
claims for monies payable from Seller's insurer in connection with the damage or loss. For
purposes of this subsection 12. Z.I. and 12.2.2., the amount of the cost of repair or
repltl('em~nt shall be determined by mutual agreemem of the Parties, and if the Parties are
unable to agree. then said amOllnt shall be the average of the amount determined by an
appraiser to be selected by and paid for by each of Seller and Buyer.
12.2.2. Dama~e Or Destruction Greater tho.. Sl00.000.00.
If prior to Closing, damage or destruction occurs not as the result of the fault or
primary uegligenl:e of Seller. and the cost of repair or replacement exceeds $100,000.00.
Buyer may at iIB sole electiotl terminate this A8reemcnt. in which event Escrow Holder shall
retW:n the Deposit with interest to Buyer, less all of Escrow Holder's costs and expenses of
termination. In the alternative, Buyer may by written notice to Seller and Escrow Holder elect
to proceed with Closing upon tile condition that Buyer accordingly assumes all risk of loss
without liability or responsibility on the part of SeUer.
SEPT.DOC 15
South Bay Servlee Center
c\..., copy S~ect to novisiollS to closi.g date
print date 9/9/98
\ ~- ~ 1-
SEP-09-1998 10'17
SDGE REO
696 2595 P.17
12.2.3. When D8""'!l"" or Destruction ("""sed Solelv bv
Bither Pal1J'. Notwitllstanding anYthing in this section 12 to the coDtrlu:y, in the event
the damage or destIUction to lhe Property 0CCIltS solely as the result of the negligence or fault
of c:ither Party, then the Party causing lbe dlllIUlgc or destruction shall bear the risk of all los8Cs
occasioned by such damage or destruction witbout any obligation on the part of the other
Party, and Closing shall otherwise occur 8$ agreed.
13. CONDEMNA1llOl!
13.1. Total Tak:iug I:t: prior to the Closing, all of lbe Property is taken by
emment domain, or is the snbjc:ct of a pending taking which has not been consummated, Seller
shall immediately notifY BUYe!" of lbe event whereupon this Agreemertt shall terminate. On
termination of this Agreement, pursuant to this section 12.1 neither PIIl1y shall have any rights or
le8pousibilities to the other, and the Deposit shall be promptly returned to Buyer. In this event,
any escrow cancellation fees shall be shared fifty percent (50%) by Buyer and fIfty pc:rcent
(50"110) by Seller.
13.2. Partial T.!kY!g It; prior to the Closing, a material portion but not all
of the Property is taken by eminent domain, or is the subject of a pending taking whieh has not
been consummated, Seller shall immediately notifY Buyer of this event. Buyer shall then have
the option of terminating this Agreement by written notice to Seller delivered within ten (10)
business days after Buyer's recc:ipt of this notice if Buyer re&Soll&bly believes that the portion of
the Property subject to being taken would materially and adversely affect Buyer's intended use of
the Property. If Buyer elects net to exercise lbc right to tenninate pursuant to this section, Seller
shall assign and deliver to Buyer, and Buyer shall be entitled to receive, all awards otherwise
payable to Seller, for the taking by eminent domain. The Parties shall proceed to the Closing
pursuant to the terms of this A&::l:eIllent without modification except as necessitated by eminent
domain llCtiOn, and without any reduction in the Purchase PriI;C. If Buyer lenninates pursuant to
this section, then neither Party shall have my rights or responsibilities to the other, and the
deposit shall be promptly return::d to Buyer. Any escrow cancellation fees connected with this
termination shall be sl1ared fifty pel'Ccul (50%) by Buyer and fifty p=nt (50%) by Seller.
14. ASSIGNMENT
This Agreement shall not be assIgned by Buyer without the prior written approval of Seller,
which consent shall not be IUIIellsonably withheld, delayed or conditioned.
SaT.DOC 16
Soulb Bay Service Cenlt:r
Clem copy subject to revisiOl\s to ol.,.i Il& dale
print dale 919198
~3-2-.8
SEP-09-1998 10:18
SDGE REO
6962595 P.18
15. INSl!RANCE
Seller shall maintain alllnsura~ce in effect on the Property through Closing. Buyer shall be
responsible for obtaining insurance: on the: Property as of the close of escrow.
16. NOTICES
All notices to be given under tbis Agreemc:nt shall be in writing and either:
sent by certified mail, I\..-tum receipt requested, in which case notice: shall be deemed
delivered three (3) busilless days after deposit, postage prepaid in the United States mail,
Or
sent by a nationally recognized overnight courier, in which case notice shall be deemed
delivered one (I) businElSS clay after ckposit willi this courier, or
by teleoopy or similar means, if a copy of the notice is also sent by United States
Certified Mail, in which case notice shall be deemed delivered on trsnsmittaI by
telecopier or other sUnil ar means provided that a transmission report is generated
reflcding the: accurate tt'llll$mission of the notices, as follows:
Notice to Seller:
San Diego Gas & Electric Company
personal delivery
101 Ash Street
San Diego, CA 92101
by mail
P.O. Box 1831
San Diego. CA 92112
Attention: R. J. Wassem
Manager, Corporate Real Estate
HQ05C
619-696-2483 Direct Dial
619-696-2595 Fax
SEPT.DOC 17
South Bay Service CentEr
Cleqn copy subject to revisions to cl"siuS date
priDtdllle9/9/98
\~-:L~
SEP-09-1998 10:18
SDGE REO
With a CODY to:
Randa M. Trapp, Esq.
Law Department, HQ ] 1
San Diego Gas & Electric Company
Same address as above
619-699-5049 Direct Dilll
619-696-4834 Fax
NoH,..., to Buver:
Sid W. Morris, Assistant City MlIDllgcr
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
619-691-5031
619-585-5612 fax
With a CODV to:
Glen R. Googins, Deputy City Attorney
City of ChuIa Vista
276 Fourth Avenue
Chula Vista, CA 91910
619-691-5037
619-585-5612 fax
Notice to Escrow Holder:
Stewart Title Company of California, Inc.
Attn: Juliet Martinet.
7676 Ha2ard Center Drive, 7th Floor
San Diego, CA 92108
619-692-1600
619-298-4033 filx
6962595 P.19
SEPT.DOC 18
Solllb. Bay Service Cellter
Clean copy subject to revisiollS to closi.g date
print date 91919&
, '3- 30
SEP-09-1998 10'18
SDGE REO
696 2595 P.20
These addresse~ may be change! by written notice to the other Party provided that no notice of a
change of address shall be e:l:fective until actual receipt by the Parties of the notice. Copies of
notices are for infOImlltional pw:poses only, and a failure to give or receive copies of any notice
shall not be deemed a failure to give notice.
17. AITORNEYS' FEES
If either Party files any action 01' brings any proceeding against the other arising from or related
tn this Agreement, or is made a :?BrtY tn any action or prOl;CCWng brought by the Escrow Holder,
then as between Seller and Buycl", the prevailing Party shall be entitled to recover from the other
Party as an element of its com (If suit and not as damages, 1'Caronable attorneys' fees, costs IlI1d
expenses incurred in the action (lr pror;c:eding, including any appeal thcreof. The "Prevailing
Party" within the meaning oftbis section shall be the Party who is entitled to recover its costs of
suit or the proceeding, whether or not the same plO<;ccds to final judgment. A Party not entitled
to recover its costli shall not rl:CINel attorney fees.
18. LIOUlDATED ))AMAGES
IF CLOSE OF ESCROW DOES NOT OCCUR BY REASON OF ANY DEFAULT OF BUYER
AND IS NOT THE RESULT OF NON-SATISFACTION OF CONDmONS OR
ACCOMPANIED BY A DEFAULT BY SELLER, SELLER SHALL BE RELEASED FROM
TIlE OBUGATION TO SELL THE PROPERTY TO BUYER AND SHALL BE ENTITLED
TO RETAIN TIlE DEPOSIT AS LIQUIDATED DAMAGES PURSUANT TO TIlE
PROVISIONS OF SECTION If71 OF THE CALIFORNIA CIVIL CODE. THE PARTIES
AGREE THAT IT WOULD BE IMPRACTICAL OR EXTREMELY DIFFICULT TO FIX
ACTUAL DAMAGES IF BUYIlR FAILS TO CLOSE THE ESCROW, THAT THE
FOREGOING AMOUNT IS A REASONABLE ESTIMATE OF TIiESE DAMAGES, AND
THAT SELLER. SHALL RETAlN THE SUMS SET FORTH IN TInS SECTION 18 AS
SELLER'S SOLE AND EXCLlISIVE RIGHT TO DAMAGES, ALL OTHER. CLAIMS TO
DAMAGES OR OTHER. REMEDIES INCLUDING WITHOUT UMITAll0N SPECIFIC
PERFORMANCE BEING HEReIN EXPRESSL Y WAIVED BY SELLER.
Seller's Initials
Buyer's Initials
Upon disposition of the Deposit :pursuant to the previous provision, escrow shaIl be canceled,
neither Party shall thereafter haV!: any rights or responsibilities to the other in connection with
this Agreement, and any escrow :am:ellation fees shall be paid by Buyer.
SEPT.DOC 19
SOuth Bay Service Center
Cl_ copy subject l<i revi..""" to c:l..hg dalB
print date 9/9/98
\~-~\
SEP-B9-1998 1B'19
SDGE REO
696 2595 P.21
19. BUYER'S REMEDIES
Buyer shall notify Seller in writing of any breach of this Agreement or any representalitm or
warranty contained herein that Buyer discovers at any time before Closmg. If Seller iiUls or
refuses to cure the alleged breach within ten (10) bU$iness days of Seller's receipt of Buyer's
notice of breach. Buyer shall be entitled to pursue any and all remedies available thereto at law or
in equity including, without limitation, the right to seek specific performance or injunctive relief
from Seller.
10. EFFECT OF RI:PRESENTATIONS AND WARRANTIF.S
Each representation and warranty of a Party is material and will be relied upon by the other
Party, is true to the Party's actual knowledge lIS of the Closing, will be updated at all times up to
Closing promptly upon a Party l:ecoming aware of any change therein, and $hqJI survive
termilllltion of this Agreement.
11. ENI'IRE AGREEMENT
This Agreement and the Escrow Instructions constitute the entire agreement between the Parties
relating to the sale of the Property. Any prior lij!IeeID.ents, promises, negotiations or
representations not expressly set forth herein are of no force and effect. Any amendment to this
Agreement must be in writing ar.;d signed by both Seller and Buyer.
22. TIME OF ESS,lNCE
Time is of the essence for each cClndition, teIm and provision of this Agreement.
23. COUNTERPARD
This Agreement may be executed in one or more COlll1l:erparts. Each shall be deemed an original
and all taken together shall constitute one and the same instrumCJrt.
24. SII'.VII'.IUBTT .IT'{
If any term or provision of this Agreement shall, to any extent, be held invalid or unenforceable,
the remainder of this Agreement shall not be affected and $hqJ1 remain in full force and effect.
25. W AIYERS
A waiver of a breach of a coverwnt or provision in this Agreement shall not be deemed a waiver
of any other covenant or provisi(ln in this Agreement, and no waiver shall be valid unless in
SEPT.DOC 20
Soulh Bay Service Cenlel'
Clean ""py subject to revisions to olosing date
print date 919/98
\ ~-~:J-..
SEP-09-1998 10:20
SDGE REO
696 2595 P.22
writing and executed by 1be waiYing Party. An extension of time for perfOI1l1llDCe of any
obligation or act shall not be deemed an extension of the time for perf01'lIllU1ce of any other
obligation or act.
26. CONSTRUCTION
:Headings at the beginning of eadl section and subsection are solely for the conVl:lli.encc of the
Parties and are not a part of and shall not be used to interpret thiB Agreement. The singular form
sha11 include plural and vice vema. Unless otherwise indicated, all rekrences to section s are to
this Agreement. All exhibitB referred to in this Agreement are attached to it and incorporated to
it by this refercm;c:.
27. GOVERNING lAW
This Agreement shall be govem.:d and construed in accordance with the laws ofthc State of
California.
28. BINDING EnE&[
Except as otherwise provided he: rein, this Agreement shall be binding on and inure to the benefit
of the Parties hereto and their re!pective beillS, personal representatives, successors and assigns.
29. nn,IGENCE: COOPERATION
Each Party agrees to excrcise duo, diligence in satisfying each and evc:lY condition to close
Escrow for which such Party is r::sponsible. Each Party agrees to cooperate with the other Party
in satisfYing those conditions to Glosing for which such other Party is primarl1y responsible
including. without limitation. gi1'ing such Party the reasonable opportunity to cure any
disapproved items(s).
30. nRAli'TING PAJRTY.
The provisions of this Agreement, and the documents and instruments referred to hcIein, have
been prepared, examined, negoti'lted and revised by each Party hereto and their respective
lawycl'li, and no implication shall. be drawn and no provision shall be construed against any Party
hereto by virtue of the purported identity of !be drafter of this Agreement, or any portion thereof.
SEPT.DOC 21
S<>vlh Bay Sctvlcc Center
ClellD copy oubjcct to revisions 10 closing date
prinl dale 919198
\3-33
SEP-09-1998 10:20
SDGE REO
696 2595 P.23
The Parties have e>(ecuted this Agreement Wi of 1he date first written above.
SELLER:
SAN DIEGO GAS & ELECTRIC COMPANY
A California Corporation
By Its Duly Au1horlzed Agent
By:
J. G. LARKIN
Director, Real Estate & J'aciJitie$
Sempm Energy
BUYER:
CITY OF CHULA VISTA
By:
SHIRLEY HORTON
Mayor
A '!TEST:
City Clerk
APPROVED AS TO FORM
John M. Kaheny, City Attorney
Ji;\homc\A.tong'_-1II.dg1
SEPT.DOC 22
South Bay Service Cenler
C1..... ogpy subject to revisions 10 olosing dale
print dale 919198
l~-3.Y
SEP-09-1998 10:20
SDGE REO
696 2595 P.24
EXHIBIT "An
Fixtures
1. One (1) back up generator, not in worldng order
2. One (1) compmlsor, in W<lrking order
3. Fire extinguishers located within Improvements; no representation made or implied as to
their working order
4. Construction shale andotl1er crushed rock located in outside storage areas, to be cleared of
dead vegetation one time by Seller after Effective Date
5. Miscellaneous ceiling tilclS, ceiling grid, carpet tiles and doors located at the east end of
the Ildmini..uation building
SEPT.DOC 23
Solllh Say service CenlBT
C11l'11l copy subject 10 revisions to closing dale
print date 919198
\ ~-~S
5EP-09-1998 10:21
5DGE REO
696 2595 P.25
EXHIBIT "B'"
Seller's Disclosures
1. In approximately March 1993, ponded oil and water were obsfl1'Ved in and around the area
of a removed underground storage tsnk (UST). On April 8, 1996, II. "no further action letter"
concerning this matter was issued for Seller by the County of San Diego, Department of
Environmental Heal1h.
2. Certain "popout" llmdslidel: discovered in slope areas of the Property prior to construction
of1he Improvements
SEPT.DOC 24
Soulh Bay Service C....""
Clean copy subject 10 revisi0ll8 to closing date .
prillt date 919/98
TOTf'L P.25
\ "3 - 3(0
ATTACHMENT Ii
Negative Declaration
PROJECT NAME: City of Chula Vista Corporation Yard (2nd REVISION)
PROJECT LOCATION: 1800 Maxwell Road, Chula Vista, San Diego County
PROJECT APPLICANT: City of Chula Vista
CASE NO: IS-95-02A
DATE: August 14, 1998
A. Proiect Setting
The project site consists of approximately 25 acres and is located in the southeastern portion
of the City, approximately 5 miles north of the international border (Assessor Parcel Nos.
644-023-11 through 19). The site is developed with three buildings, parking lots and
landscaping. The buildings consist of a 31,037 square foot office building, a 14,188 square
foot warehouse, and a 8,640 square foot service facility/garage. Improvements on the site
were constructed within the last approximately 10 years. The facility had been operated as
a regional service center for San Diego Gas and Electric for most of that time, serving as the
headquarters for construction crews and planning department involved in the planning and
maintenance of electric and gas distribution and transmission facilities.
The site is surrounded by the following uses: Light Industrial/Business Park uses to the
south, the Otay Landfill to the north, a former class I waste disposal facility to the west and
a vacant lot (former construction storage yard) that was previously proposed for a trash
transfer station to the east.
B. Proiect DescriDtion
The project is a relocation of existing uses at the Corporation Yard located at 707 "F" Street.
Proposed use of the site would include administrative office use, vehicle maintenance,
parking and outdoor storage of equipment and materials, including aggregate and chip seal.
Additional outdoor uses include vehicle fueling and wash areas. Existing underground fuel
storage tanks would be used. Activities to be housed at the new facilities include the
following:
Public Works Administration
Sewer Maintenance
Streets Maintenance
Tree Maintenance
Traffic Signal/Street Lighting
Traffic Signs/Striping
Building Maintenance Services
Purchasing
Equipment Maintenance
\~-orr
1
Communications
Chula Vista Transit (including bus storage and maintenance)
Soil Testing
Warehousing
C. Comoatibilitv with Zoning and Plans
The project is consistent with the Industrial-Limited (I-L) General Plan designation and
zoning for the site. but will require a Conditional Use Permit to accommodate the proposed
uses.
D. Identification of Environmental Effects
An initial study conducted by the City of Chula Vista (including the attached Environmental
Checklist Form) determined that the proposed project will not have a significant
environmental effect, and the preparation of an Environmental Impact Report will not be
required. This Negative Declaration has been prepared in accordance with Section 15070
of the State CEQA Guidelines.
The following impacts have been determined to be less than significant:
Development of agricultural areas, growth inducing impacts, geophysical impacts, hydrologic
impacts, air quality impacts, biological impacts, hazards, noise impacts, aesthetic impacts,
cultural resource impacts, paleontological impacts, recreation impacts and cumulative impacts
E. Mitigation necessarv to avoid significant effects
The proposed project will not result any significant or potentially significant environmental
impacts, therefore, no project specific mitigation is be required.
F. Consultation
1. Individuals and Organizations
City of Chula Vista: Joe Monaco, Community Development
Dave Byers, Public Works
Cliff Swanson, Engineering
Doug Perry, Fire Marshal
Crime Prevention, H~Jllfte e;ulidll
Glen Googins, Assistant City Attorney
2. Documents
Chula Vista General Plan (1989) and EIR (1989)
Title 19, Chula Vista Municipal Code
\3-38
2
3. Initial Studv
This environmental determination is based on the attached Initial Study, any
comments received on the Initial Study and any comments received during the public
review period for this Negative Declaration. The report reflects the independent
judgement of the City of Chula Vista. Further Information regarding the
environmental review of this project is available from the Chula Vista Planning
Department, 276 Fourth Avenue, Chula Vista, CA 91910.
~~
Jo ph~onaco, AICP
Environmental Projects ~anager
\3-~C\
3
ENVIRONMENTAL CHECKLIST FORM
Case No. IS-95-02A
1. Name of Proponent: City of Chula Vista
2.
Lead Agency Name and Address:
City of Chula Vista
276 Fourth A venue
Chula Vista, CA 91910
3. Address and Phone Number of Proponent: 276 Fourth Avenue
Chula Vista, Ca 91910
Joe Monaco (619) 691-5016
4. Name of Proposal: City of Chula Vista Corporation Yard (2nd REVISION)
5. Date of Checklist: August 14, 1998
\~-q,.D
Potentially
Potentially Significant Less than
Signincanl Unless Significant No
Impact MItigated Impact Impact
I. LAND USE AND PLANNING. Would the
proposal:
a) Conflict with general plan designation or 0 0 0 181
zoning?
b) Conflict with applicable environmental plans or 0 0 0 181
policies adopted by agencies with jurisdiction
over the project?
c) Affect agricultural resources or operations (e.g., . 0 0 0 181
impacts to soils or farmlands, or impacts from
incompatible land uses)?
d) Disrupt or divide the physical arrangement of 0 0 0 181
an established community (including a low-
income or minority community)?
Comments: The project is consistent with existing General Plan designations and zoning but will
require a Conditional Use Permit since it is an unclassified use. No environmental plans or policies
exist in the project area that could be affected by the project. The project site has been used for
similar uses since its development. The project site does not constitute an existing community.
POPULATION AND HOUSING. Would the proposal:
e) Cumulatively exceed official regional or local
population projections?
f) Induce substantial growth in an area either
directly or indirectly (e.g., through projects in
an undeveloped area or extension of major
infrastructure)?
g) Displace existing housing, especially affordable
housing?
Comments: The project is a replacement of the existing Corporation Yard and is intended to serve
the needs of existing and future populations in the City of Chula Vista. Therefore, the project will not
exceed growth forecasts, nor induce growth either locally or City-wide. The project site does not
contain any existing housing.
o
o
o
181
o
o
181
o
o
o
o
181
II. GEOPHYSICAL. Would the proposal result in or
expose people to potential impacts involving:
a) Unstable earth conditions or changes in 0 0 0 181
geologic substructures?
b) Disruptions, displacements, compaction or 0 0 0 181
overcovering of the soil?
c) Change in topography or ground surface relief 0 0 0 181
features?
d) The destruction, covering or modification of 0 0 0 181
any unique geologic or physical features?
\=';'-L4 '\
2
Potenti.lly
Potentl.lly Sianificant Leu th.n
Significant Unleu Si81lifiunt N.
Ilnpact Mitia.ted Imp.d Imp.ct
e) Any increase in wind or water erosion of soils, 0 0 0 181
either on or off the site?
f) Changes in deposition or erosion of beach 0 0 0 181
sands, or changes in siltation, deposition or
erosion which may modify the channel of a
river or stream or the bed of the ocean or any
bay inlet or lake?
g) Exposure of people or property to geologic 0 0 0 181
hazards such as earthquakes, landslides, mud
slides, ground failure, or similar hazards?
Comments: The project site is 100% improved and landscaped.
III. WATER. Would the proposal result in:
a) Changes in absorption rates, drainage patterns, 0 0 0 181
or the rate and amount of surface runoff?
b) Exposure of people or property to water related 0 0 0 181
hazards such as flooding or tidal waves?
c) Discharge into surface waters or other alteration 0 0 0 181
of surface water quality (e.g., temperature,
dissolved oxygen or turbidity)?
d) Changes in the amount of surface water in any 0 0 0 181
water body?
e) Changes in currents, or the course of direction 0 0 0 181
of water movements, in either marine or fresh
waters?
f) Change in the quantity of ground waters, either 0 0 0 181
through direct additions or withdrawals, or
through interception of an aquifer by cuts or
excavations?
g) Altered direction or rate of flow of 0 0 0 181
groundwater?
h) Impacts to groundwater quality? 0 0 0 181
i) Alterations to the course or flow of flood 0 0 0 181
waters?
\ 3-42-
3
PotendaUy
Potentially Significant Len tba.
Significant Unleu Significant No
Impact Mitigated Impact Impact
0 0 0 181
j) Substantial reduction in lbe amount of water
otherwise available for public water supplies?
Comments: The project site is 100% improved and landscaped. Best Management Practices will be
implemented to protect runoff water quality.
e) Create a substantial increase in stationary or
non-stationary sources of air emissions or the
deterioration of ambient air quality?
Comments: The project will increase traffic levels in lbe project area by 1,600 Average Daily Trips
(ADT). However, lbe project will replace approximately 25 acres of industrial uses that have been
previously used for similar land uses. It is also important to note lbat the project does not represent a
new use within lbe air basin, but rather a replacement of lbe existing Corporation Yard within the
City. The new facility is proposed in a location lbat is more centrally located to the future population
base of the City lban the current location, thereby increasing locational efficiencies in the long term.
Vehicular emissions resulting from the project are not considered significant, either on an individual
or cumulative basis.
IV. Am QUALITY. Would the proposal:
a) Violate any air quality standard or contribute to
an existing or projected air quality violation?
b) Expose sensitive receptors to pollutants?
c) Alter air movement, moisture, or temperature,
or cause any change in climate, eilber locally or
regionally?
d) Create objectionable odors?
o
o
o
181
o
o
o
181
o
o
o
181
o
o
o
181
o
o
181
o
v. TRANSPORTATION/CmCULATION. Would
the proposal result in:
a) Increased vehicle trips or traffic congestion? 0 0 181 0
b) Hazards to safety from design features (e.g., 0 0 0 181
sharp curves or dangerous intersections) or
incompatible uses (e.g., farm equipment)?
c) Inadequate emergency access or access to 0 0 0 181
nearby uses?
d) Insufficient parking capacity on-site or off-site? 0 0 0 181
e) Hazards or barriers for pedestrians or bicyclists? 0 0 0 181
t) Conflicts wilb adopted policies supporting 0 0 0 181
alternative transportation (e.g. bus turnouts,
bicycle racks)?
g) Rail, waterborne or air traffic impacts? 0 0 0 181
\~-~~
4
h) A "large project" under the Congestion
Management Program? (An equivalent of 2400
or more average daily vehicle trips or 200 or
more peak-hour vehicle trips.)
Comments: As mentioned above, the project will increase traffic levels in the project area by 1,600
Average Daily Trips (ADT), but will replace approximately 25 acres of industrial uses that would
generate similar impacts. No new traffic impacts would result from project implementation.
Potentially
Potentially Silllinunt Lell than
Significant Unless Significant
Impact Mitia-Ied Impact
0 0 0
No
Impact
181
VI. BIOLOGICAL RESOURCES. Would the
proposal result in impacts to:
a) Endangered, sensitive species, species of 0 0 0 181
concern or species that are candidates for
listing?
b) Locally designated species (e.g., heritage trees)? 0 0 0 181
c) Locally designated natural communities (e.g, 0 0 0 181
oak forest, coastal habitat, etc.)?
d) Wetland habitat (e.g., marsh, riparian and vernal 0 0 0 181
pool)?
e) Wildlife dispersal or migration corridors? 0 0 0 181
t) Affect regional habitat preservation planning 0 0 0 181
efforts?
Comments: The project site is 100% improved and landscaped.
VII. ENERGY AND MINERAL RESOURCES.
Would the proposal:
a) Conflict with adopted energy conservation 0 0 0 181
plans?
b) Use non-renewable resources in a wasteful and 0 0 0 181
inefficient manner?
c) If the site is designated for mineral resource 0 0 0 181
protection, will this project impact this
protection?
Comments: The project would not use extraordinary amounts of energy or affect mineral resources.
VIII. HAZARDS. Would the proposal involve:
a) A risk of accidental explosion or release of
hazardous substances (including, but not limited
to; petroleum products, pesticides, chemicals or
radiation)?
b) Possible interference with an emergency 0 0
response plan or emergency evacuation plan?
\'~-4<+
o
o
181
o
o
181
5
Potentially
Potentially Slgniftcant Len than
Significant Vole" Significant N.
Impact Mitigated Impact Impact
C) The creation of any health hazard or potential 0 0 0 181
health hazard?
d) Exposure of people to existing sources of 0 0 181 0
potential health hazards?
e) Increased fire hazard in areas with flammable 0 0 0 181
brush, grass, or trees?
Comments: Portions of the project site have been the subject of environmental contamination and
cleanup. A leaking underground oil tank had been removed and soil and groundwater remediated. No
other contamination issues are known to exist on the site. The project proposes activities involving
the use and storage of volatile and/or hazardous materials. Appropriate regulatory restrictions on the
storage and use of such materials will be required by the City of Chula Vista Fire Department and the
County of San Diego Hazardous Materials Management Division. Compliance with existing
regulations will avoid any significant impacts related to hazards.
IX. NOISE. Would the proposal result in:
a) Increases in existing noise levels?
o
o
181
o
b) Exposure of people to severe noise levels?
o
o
o
181
Comments: Increased traffic from the proposed project and activities on the site would increase noise
levels in the project vicinity. No significant impacts to any sensitive receptors would result from
project implementation, nor would the project violate the City's Noise Ordinance.
X. PUBLIC SERVICES. Would the proposal have
an effect upon, or result in a need for new or
altered government services in any of the following
areas:
a) Fire protection? 0 0 0 181
b) Police protection? 0 0 0 181
c) Schools? 0 0 0 181
d) Maintenance of public facilities, including 0 0 0 181
roads?
\~ -4S-
6
Potentially
Significant
Impact
Potentially
Significant
Unlas
Mitlpted
Leu tban
Significant
Impact
N.
Impact
e) Other governmental services?
o
o
o
181
Comments: No new governmental services would be required to serve the project.
XI.
Thresholds. Will the proposal adversely impact the
City's Threshold Standards?
o
o
o
181
As described below, the proposed project does not adversely impact any of the seen Threshold
Standards.
a) Fire/EMS
The Threshold Standards requires that fire and medical units must be able to respond to
calls within 7 minutes or less in 85% of the cases and within 5 minutes or less in 75% of
the cases. The City of Chula Vista has indicated that this threshold standard will be met,
since the nearest fire station is four miles away and would be associated with a 8 to 9
minute response time. The proposed project will comply with this Threshold Standard.
Comments: An Automatic Aid Agreement with the City of San Diego provides for response from
San Diego Fire Station No.6. In addition, Fire Station No.3 in the City of Chula Vista is proposed
for relocation to Sunbow, which would significantly reduce response time.
b) Police
The Threshold Standards require that police units must respond to 84% of Priority I calls
within 7 minutes or less and maintain an average response time to all Priority I calls of
4.5 minutes or less. Police units must respond to 62.10% of Priority 2 calls within 7
minutes or less and maintain an average response time to all Priority 2 calls of 7 minutes
or less. The proposed project will comply with this Threshold Standard.
Comments: The Police Department has indicated that the project will not impact police services.
c) Traffic
The Threshold Standards require that all intersections must operate at a Level of Service
(LOS) "C" or better, with the exception that Level of Service (LOS) "D" may occur
during the peak two hours of the day at signalized intersections. Intersections west of
1-805 are not to operate at a LOS below their 1987 LOS. No intersection may reach LOS
"E" or "F" during the average weekday peak hour. Intersections of arterials with freeway
ramps are exempted from this Standard. The proposed project will comply with this
Threshold Standard.
Comments: The I ,60'0 additional trips generated by the project, would not cause Level of Service on
local roadways or intersections to fall below LOS "C".
d) ParksIRecreation
The Threshold Standard for Parks and Recreation is 3 acresII ,000 population. The
proposed project will comply with this Threshold Standard.
Comments: The project will not create any new demand for park or recreation facilities or services.
\ 3-~1o
7
Potentially
Significant
Impact
Potentially
Sianilicant
Unleu
Mitigated
Len than
Significant
Impact
N.
Impact
e) Drainage
The Threshold Standards require that storm water flows and volumes not exceed
City Engineering Standards. Individual projects will provide necessary
improvements consistent with the Drainage Master Planes) and City Engineering
Standards. The proposed project will comply with this Threshold Standard.
Comments: The project will be required to install all necessary drainage facilities to adequately
convey runoff consistent with City Engineering Standards.
f) Sewer
The Threshold Standards require that sewage flows and volumes not exceed City
Engineering Standards. Individual projects will provide necessary improvements
consistent with Sewer Master Planes) and City Engineering Standards. The
proposed project will comply with this Threshold Standard.
Comments: Adequate sewer capacity exists to serve the proposed project.
g) Water
The Threshold Standards require that adequate storage, treatment, and transmission
facilities are constructed concurrently with planned growth and that water quality
standards are not jeopardized during growth and construction. The proposed project will
comply with this Threshold Standard.
Applicants may also be required to participate in whatever water conservation or fee off-
set program the City of Chula Vista has in effect at the time of building permit issuance.
Comments: Application of required water conservation devices or fee offset will reduce the project's
impact to a less than significant level.
XII. UTILITIES AND SERVICE SYSTEMS. Would
the proposal result in a need for new systems, or
substantial alterations to the follOWing utilities:
a) Power or natural gas? 0 0 0 181
b) Communications systems? 0 0 0 181
c) Local or regional water treatment or distribution 0 0 0 181
facilities?
d) Sewer or septic tanks? 0 0 0 181
e) Storm water drainage? 0 0 0 181
f) Solid waste disposal? 0 0 0 181
Comments: The project site is fully served by al necessary utilities.
XIII. AESTHETICS. Would the proposal:
\~-4q
8
Potentially
Potentially SigDilkant Le" than
Silllilicant Vlllelll Significant N.
Impact Mitigated Impact Impact
a) Obstruct any scenic vista or view open to the 0 0 0 I8J
public or will the proposal result in the creation
of an aesthetically offensive site open to public
view?
b) Cause the destruction or modification of a 0 0 0 I8J
scenic route?
c) Have a demonstrable negative aesthetic effect? 0 0 0 I8J
d) Create added light or glare sources that could 0 0 0 I8J
increase the level of sky glow in an area or
cause this project to fail to comply with Section
19.66.100 of the Chula Vista Municipal Code,
Title 19?
e) Produce an additional amount of spill light? 0 0 0 I8J
Comments: The project will result in changes in visual appearance or lighting.
XIV. CULTURAL RESOURCES. Would the proposal:
a) Will the proposal result in the alteration of or 0 0 0 I8J
the destruction or a prehistoric or historic
archaeological site?
b) Will the proposal result in adverse physical or 0 0 0 I8J
aesthetic effects to a prehistoric or historic
building, structure or object?
c) Does the proposal have the potential to cause a 0 0 0 I8J
physical change which would affect unique
ethnic cultural values?
d) Will the proposal restrict existing religious or 0 0 0 I8J
sacred uses within the potential impact area?
e) Is the area identified on the City's General Plan 0 0 0 I8J
EIR as an area of high potential for
archeological resources?
Comments: The project site is 100% improved and landscaped.
XV. PALEONTOLOGICAL RESOURCES. Will the 0 0 0 I8J
proposal result in the alteration of or the
destruction of paleontological resources?
Comments: The project site is 100% improved and landscaped.
XVI. RECREATION. Would the proposal:
a) Increase the demand for neighborhood or 0 0 0 I8J
regional parks or other recreational facilities?
l~-Jt<?
9
Potentially
Potentially Significant Leu than
Significant Unless Significant N,
Impact Mitigated Impact Impact
b) Affect existing recreational opportunities? 0 0 0 181
c) Interfere with recreation parks & recreation 0 0 0 181
plans or programs?
Comments: The project would not create any demand for parks or recreational facilities, nor would it
impact any existing park/recreation plans.
XVII. MANDATORY FINDINGS OF
SIGNIFICANCE: See Negative Declaration for
mandatory findings of significance. If an EIR is
needed, this section should be. completed.
a) Does the project have the potential to degrade
the quality of the environment, substantially
reduce the habitat of a fish or wildlife species,
cause a fish or wildlife population to drop
below self-sustaining levels, threaten to
eliminate a plant or animal community, reduce
the number or restrict the range of a rare or
endangered plant or animal or eliminate
important examples of the major periods or
California history or prehistory?
Comments: None of the impacts resulting from the project are not considered significant and the
project as a whole would not degrade the environment or substantially affect any biological habitats or
cultural resources.
o
o
o
181
b) Does the project have the potential to achieve
short-term, to the disadvantage of long-term,
environmental goals?
Comments: The scope and nature of the project would not result in the curtailment of any long-term
environmental goals.
o
o
o
181
c) Does the project have impacts that are
individually limited, but cumulatively
considerable? ("Cumulatively considerable"
means that the incremental effects of a project
are considerable when viewed in connection
with the effects of past projects, the effects of
other current projects, and the effects of
probable future projects.)
Comments: The project would not result in cumulative impacts from other development.
o
o
181
o
d) Does the project have environmental effect
which will cause substantial adverse effects on
human beings, either directly or indirectly?
Comments: The project is not of sufficient size or scope to cause any such impacts.
o
o
o
181
\~ -J{ <1
10
ENVffiONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project, involving at least
one impact that is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated," as
indicated by the checklist on the following pages.
0 Laod Use aod Plaoning o TraosportationlCirculation 0 Public Services
0 Population aod Housing o Biological Resources 0 Utilities aod Service Systems
0 Geophysical o Energy aod Mineral Resources 0 Aesthetics
0 Water o Hazards 0 Cultural Resources
o Air Quality o Noise 0 Recreation
o Maodatory Findings of Significaoce
DETERMINATION:
On the basis of this initial evaluation:
I fmd that the proposed project COULD NOT have a significaot effect on the environment, aod .
a NEGATIVE DECLARATION will be prepared.
I find that although the proposed project could have a significaot effect on the environment, 0
there will not be a significaot effect in this case because the mitigation measures described on ao
attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARATION
will be prepared.
I find that the proposed project MAY have a significaot effect on the environment, aod ao 0
ENVIRONMENTAL IMPACT REPORT is required.
I find that the proposed project MAY have a significaot effect(s) on the environment, but at least 0
one effect: I) has been adequately aoalyzed in ao earlier document pursuaot to applicable legal
staodards, aod 2) has been addressed by mitigation measures based on the earlier aoalysis as
described on attached sheets, if the effect is a "potentially significaot impacts" or "potentially
significaot unless mitigated." An ENVIRONMENT AL IMPACT REPORT is required, but it
must aoalyze only the effects that remain to be addressed.
~-
10 onaco, AICP
Environmental Projects Maoager
8/;'1 /f~
Date
l3-50
II
RESOLUTION NO. 11/ll;
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT WITH SAN
DIEGO GAS & ELECTRIC FOR THE CITY'S PURCHASE
OF THE SOUTH BAY SERVICE CENTER LOCATED AT
1800 MAXWELL ROAD, AND ADOPTING NEGATIVE
DECLARATION 95-02A IN CONNECTION THEREWITH
WHEREAS, in December 1991 the City Council adopted a
Civic Center Master Plan that identified future space and facility
needs to meet the future growth in Chula Vista; and
WHEREAS, the Master Plan included planning for a new
Public Works Corporation Yard (Corp Yard) to be relocated from its
current 6 acre/261,360 square foot location at 707 "F" Street, to
a new site which would better accommodate the space projections
needed for staff and equipment to meet the growth anticipated in
the city's eastern territory; and
WHEREAS, a revised Corp Yard Master Plan was completed in
February 1998 in response to an opportunity to purchase an existing
facility (owned by SDG&E located at 1800 Maxwell Road) that could
potentially meet the majority of the city's Corp Yard needs and at
the same time save the City millions of dollars; and
WHEREAS, staff has negotiated a purchase contract with
SDG&E and presented it to the City Council for its consideration;
and
WHEREAS, staff conducted an Initial Study for the
proposed acquisition in accordance with the requirements of the
California Environmental Quality Act (CEQA) and the findings of the
Initial Study were that the city's acquisition and operation of the
SDG&E facility as the city's new Corp Yard would not have any
significant adverse impacts on the environment and therefore, a
Negative Declaration was prepared and circulated for public review
and no public comments were received as a result of that
notification.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the City
Council does hereby adopt Negative Declaration 95-02A related to
the purchase, improvement and operation of the City's Corporation
Yard Center at 1800 Maxwell Road in the City of Chula Vista.
BE IT FURTHER RESOLVED the City Council of the City of
Chula vista does hereby approve an Agreement with San Diego Gas &
Electric for the city's Purchase of the South Bay Service Center
located at 1800 Maxwell Road in the form presented with such minor
modifications as may be approved or required by the city Attorney,
1
/3 ff - {
a copy of which shall be kept on file in the office of the City
Clerk as Document No. {' (;fC151.-132r",
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 of Chula Vista.
Presented by
Approved as to form by
o
sid Morris, Assistant
city Manager
J: nM" Kahe
H:\home\lorraine\rs\corpyard.pur
2
\ 3~-2-
RESOLUTION NO. / 9//(/
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA REGARDING ITS INTENTION TO ISSUE TAX EXEMPT
OBLIGATIONS TO FINANCE THE CITY'S CORPORATION YARD
AND DIRECTING STAFF TO RETURN WITH A FINANCING PLAN
WHEREAS, the City Council of the City of Chula (the "Issuer") desires to finance
the costs of acquiring certain public facilities and improvements, as provided in Exhibit A attached
hereto and incorporated herein (the" Project"); and
WHEREAS, the Issuer intends to finance the acquisition of the Project or portions
of the Project with the proceeds of the sale of obligations the interest upon which is excluded from
gross income for federal income tax purposes (the "Obligations"); and
WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain
expenditures with respect to the Project from available monies of the Issuer which expenditures
are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the
Obligations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES
HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The Issuer hereby states its intention and reasonably expects to
reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the
Obligations. Exhibit A describes either the general character, type, purpose, and function of the
Project, or the fund or account from which Project costs are to be paid and the general functional
purpose of the fund or account.
SECTION 2. The reasonably expected maximum principal amount of the
Obligations is $11,200,000. The total Project cost is estimated to be approximately $23 million,
including approximately $6.9 million in financing costs (interest and fees).
SECTION 3. This resolution is being adopted on or prior to the date (the
"Expenditures Date or Dates") that the Issuer will expend monies for the portion of the Project cots
to be reimbursed from proceeds of the Obligations.
SECTION 4. Except as described below, the expected date of issue of the
Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the
date the Project is placed in service; provided, the reimbursement may not be made more than
three years after the original expenditure is paid. For Obligations subject to the small issuer
exception of Section 148(f)(4)(D) of the Internal Revenue Code, the "eighteen-month limit" of the
previous sentence is changed to "three years" and the limitation of the previous sentence
beginning with" ;provided,...." is not applicable.
SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs
are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt
service with respect to any obligation (other than to pay current debt service coming due within
the next succeeding one year period on any tax-exempt obligation of the Issuer (other than the
Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to
an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any
expenditure that was originally paid with the proceeds of any obligation, or to replace funds that
/3B-l
are or will be used in such manner.
SECTION 6. This resolution is consistent with the budgetary and financial
circumstances of the Issuer, as of the date hereof. No monies from sources other than the
obligation issue are, or are reasonably expected to be reserved, or otherwise set aside by the
Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project
costs on a long-term basis. To the best of our knowledge, this City Council is not aware of the
previous adoption of official intents by the Issuer that have been made as a matter of course for
the purpose of reimbursing expenditures and for which tax-exempt obligations have not been
issued.
SECTION 7. The limitations described in Section 3 and Section 4 do not apply to
(al costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or
five percent (5%) of the proceeds of the Obligations, or (cl any preliminary expenditures, such as
architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site
preparation, and similar costs incident to commencement of construction, not in excess of twenty
percent (20%) of the aggregate issue price of the Obligations that finances the Project for which
the preliminary expenditures were incurred.
SECTION 8. This resolution is adopted as official action of the Issuer in order to
comply with Treasury Regulations ~ 1.150-2 and any other regulations of the Internal Revenue
Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the
date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available
for inspection by the general public at the main administrative office of the Issuer.
SECTION 9. Staff is further directed to return with a detailed financing plan with
respect to the Obligations and the Project.
SECTION 10. All the recitals in this Resolution are true and correct and this City
Council so finds, determines and represents.
Presented by
Approved as to form by
Sid Morris
Assistant City Manager
.
H:\HOME\LORRAINE\R$\CORPYARD.FIN (September 9,1998 (4:08pm)]
1'33 - ;Z
EXHIBIT A
DESCRIPTION OF PROJECT
The proposed Corporation Yard project is necessary to provide current and future
administrative office space, equipment and materials storage, public facility
maintenance facilities, vehicle storage and maintenance facilities, public transit
support facilities and related facilities to serve the Chula Vista community. The
current facility on 707 F Street has been determined to be inadequate.
The proposed project site, with an estimated acquisition cost of $7,000,000,
consists of approximately 25 acres of improved property located at 1800 Maxwell
Road in the City of Chula Vista. Existing improvements include a 31,037 square
foot office building, a 14,188 square foot warehouse, an 8,649 square foot service
facility garage and a parking lot and related facilities.
Significant renovations and improvements will be required to complete the project.
Final facility design and corresponding construction costs have not been
determined. The facility is expected to be planned for the Chula Vista population
at "build-out" which is estimated to be 277,000 by the year 2030.
The maximum estimated total cost of such facility is expected not-to-exceed $23
million. Approximately $6.9 million of that is expected to e financing costs.
Approximately $4.9 million shall be funded out of capital existing in the City's
Transit Fund account. Approximately $11.2 million of that amount is estimated
to be the maximum amount to be financed with tax exempt debt.
136-3
COUNCIL AGENDA STATEMENT
Hemd
Meeting Date 9/15/98
ITEM TITLE: Resolution / 91 ! / Approving Deferral Agreement with Michael and
Tonya Arnold on Payment for the Construction of Street Improvements at
239 Naples Street and Authorizing the Mayor to Execute the Deferral
Agreement
SUBMITTED BY: Director of Public Work~~
REVIEWED BY: City Manage~ ~ f)'J:#\. (4/5ths Vote: Yes _ NoX)
The construction of street improvements at 23V Nap!:s Street (Assessor's Parcel No. 619-122-27-00)
was included in the contract for Assessment District No. 96-01, Construction of Twin Oaks Avenue
Improvements, from Naples Street to Emerson Street. The deferral agreement will provide the same
payment plan to the property owners of 239 Naples Street that is being provided to the property
owners within the boundaries of the adjoining assessment district.
RECOMMENDATION: That Council approve the resolution approving the deferral agreement
with Michael and Tonya Arnold on payment for the construction of street improvements at 239
Naples Street and authorize the Mayor to execute the deferral agreement.!
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
In May 1995 the property owner at 239 Naples Street applied for a permit to construct a single
family home. As a condition of that permit, the property owner was required to either construct
street improvements or enter into a deferral agreement with the City, to be secured by a cash bond
or lien. The amount of the cash bond was computed to be $4,700, based on an estimate of the cost
to design and construct these improvements. The application for the deferral was approved but the
cash bond was never paid and the agreement was never signed. After construction on that site was
completed, the property was sold to the current owners, Michael and Tonya Arnold.
On April 15, 1997, by Resolution No. 18630, Council accepted a petition signed by 18 of the 20
property owners on Twin Oaks Avenue for the formation of an assessment district (96-01) to
construct street improvements - including curb, gutter, sidewalk and pavement - along Twin Oaks
Avenue between Naples Street and Emerson Street. The boundary map subsequently approved by
Council in May 1997 included the comer property at 235 Naples Street, which is immediately to the
east of 239 Naples Street. Due to the deferral application and proximity to the assessment district
boundaries, the property at 239 Naples Street was included in the design and construction contract
for Assessment District No. 96-01, but not included in the district.
/1 --I
Page 2, Item
Meeting Date 9/15/98
When it was discovered that the cash bond had not been submitted, City staff approached the
Arnolds to determine if they would be interested in having the street improvements constructed in
front of their property. Although it would be too late to include their property as part of the
assessment district, staff felt that, in the interest of fairness, the same financing arrangements which
had been offered to properties within the district and corresponding to Council Policy No. 505-01
should be offered to Mr. and Mrs. Arnold. The Arnolds indicated that they were interested and
signed the proposed agreement in the presence of a notary on June 29, 1998.
Provisions ofthe Proposed A~reement
This agreement includes several provisions which are identical to the provisions for properties in the
assessment district. Under Council Policy No. 505-01, the City normally pays for design costs and
costs for construction within the original paved roadway. On this basis, the design engineer's
estimate for the property owners' share of the cost of improvements within Assessment District No.
96-01 was $94 per linear foot of frontage. This figure was used to compute each property owner's
estimated cost, which was included on the ballot required by Proposition 218. Since the Naples
Street frontage on 239 Naples Street (Parcel No. 619-122-27-00) is 62 linear feet (to the nearest
foot), the maximum principal amount of$5828 was included in the contract. Based on the original
staff estimates for this project, the City's share of the expenses (including design, inspection and
administrative costs and a portion of construction costs) would be approximately 163 percent of the
residents' share. The City's share of costs for the Arnolds' property would therefore be
approximately $9500. As indicated, the City's share is already included in the CIP appropriation..
Payment Alternative 1 of Assessment District 96-01 stipulates an interest rate of 7 percent per year
over a period of 10 years. This method of financing was approved by Council by Resolution No.
18739 on July 22,1997, which formed Assessment District 96-01. This rate is also included in the
proposed agreement.
The construction cost breakdown for each property included in Assessment District 96-01 will be
reassessed after construction is completed. Each property owner will only pay for those
improvements associated with their own property. All costs associated with 239 Naples Street will
be separated out from Assessment District costs.
The $94 per linear foot estimate was based on a total construction cost estimate of approximately
$215,000, including a property owners' share of $115,000. Since the actual contract award was for
$179,775, it appears that the $94 per linear foot figure is somewhat high. Therefore, a clause is
included in the proposed contract which would require the City to recalculate the cost payable by
the property owners after construction of the Twin Oaks Avenue improvements is completed.
)Ii -~
Page 3, Item
Meeting Date 9/15/98
FISCAL IMP ACT: The funding sources used for CIP Project STL-232 (Assessment District 96-
01) were the Gas Tax for the City's share of costs and a loan from the Trunk Sewer Capital Reserve
Fund (Fund 222) to [mance the portion which would be paid back by the residents over a period of
ten years. The total appropriated was $340,000, including $260,000 for construction ($45,000 of
that for contingencies). Since the contract award amount was $179,775, sufficient unused funds will
be available from the Gas Tax and Fund 222 to construct these improvements.
olution No. 18873
solution No. 18739
esolutions Nos. 18630 and 18631
Proposed Boundaries: Assessment District 96-01
Description of Payment Alternatives
F. Council Policy No. 505-01
H:\HOMEIENGINEERIAGENDAIARNOLDI.EMC
FILE 0725-1O-AD96-01
Jti -3
RESOLUTION NO. / q / / I
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING DEFERRAL AGREEMENT WITH
MICHAEL AND TONYA ARNOLD ON PAYMENT FOR THE
CONSTRUCTION OF STREET IMPROVEMENTS AT 239
NAPLES STREET AND AUTHORIZING THE MAYOR TO
EXECUTE THE DEFERRAL AGREEMENT
WHEREAS, the construction of street improvements at 239
Naples Street (Assessor's Parcel No. 619-122-27-00) was included in
the contract for Assessment District No. 96 - 01, Construction of
Twin Oaks Avenue Improvements, from Naples Street to Emerson
Street; and
WHEREAS, a deferral agreement will provide the same
payment plan to the property owners of 239 Naples Street that is
being provided to the property owners within the boundaries of the
adjoining assessment district.
NOW, THEREFORE, BE IT RESOLVED the City Council of the
City of Chula vista does hereby approve the Deferral Agreement with
Michael and Tonya Arnold on payment for the construction of street
improvements at 239 Naples, a copy of which shall be keEt on file
in the office of the City Clerk as Document No.(I1)9()r'lJ'7.
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 of Chula vista.
Presented by
Approved as to form by
John P. Lippitt, Director of
Public Works
~rrr/\&<edi-. .~},.
Jo n . Kaheny, Ci~y Attorney
H:\home\lorraine\rs\arnold.def
/J.f -1
Recordu: Record as an Agreement, only.
Recording requested by and
please retum to:
City Clerk
City of Chula Vista
P.O. Box 1087
Chula Vista, CA 91912
& This space for Recorder's use, only &
Assessor's Parcel No. 619-122-27-00
File No.: 0725-10-AD9601
AGREEMENT FOR
THE TERMS OF PAYMENT DEFERRAL OF THE INSTALLATION OF
CERTAIN PUBLIC IMPROVEMENTS IN THE CITY OF CHULA VISTA
AND LIEN SECURING THE FUTURE INSTALLATION OF SAID
IMPROVEMENTS ON THE PROPERTY OWNED BY
MICHAEL C. AND TONYA M. ARNOLD
AND LOCATED AT 239 NAPLES STREET
ASSESSOR'S PARCEL NO. 619-122-27-00
TInS AGREEMENT, made and enlered into this day of
, 1998, by and between the CITY OF CHULA VISTA, a municipal
corporation, hereinafter referred to as "City" and Michael C. and Tonya M. Arnold, hereinafter
referred to as "Property Owner";
WIIHESSEIH
WHEREAS, the property which is the subject matter of this agreement is commonly known
as 239 Naples Street, CHULA VISTA, CALIFORNIA, is identified in the Comity Assessor
records as Parcel No.619-122-27-OO, and is legally described as:
The Center portion of Lot 24 of Block 2 of Castle Park, a subdivision of Lots 17, 18, 23,
24,25,26,31 and 32 of Quarter Section 120 and of Lots 19, 20, 21, 22, 27, 28, 29 and
30 of Quarter Section 141 of the National Rancho, in the City of Chula Vista, County of
San Diego, Stale of California, according to Map thereof No. 1752 recorded April 2,
1923, in the office of the Recorder of said County of San Diego.
hereinafter referred to as "Property"; and,
Page 1
IJ-f - 5'
Q()9?5" 13 7
r- \~ \ 7 I
WHEREAS, Property is owned by Property Owner; and,
WHEREAS, on January 20, 1998 the Chula Vista City Council adopted Resolution No.
18873 instituting pr(V'"l'f'II;ngs pursuant to Chapter 27 of the Improvement Act of 1911 for the
construction of certain authorized improvements in Assessment District 96-01, "Construction of
Twin Oaks Avenue Improvements from Naples Street to Emerson Street"(Project STL-232),
which is adjacent to said property; and,
WHEREAS, on Apri115, 1997 the Chula Vista City Council adopted Resolution No.
18630 accepting petition for formation of special Assessment District 96-01 for the construction
of said street improvements. Said improvements were proposed to be financed pursuant to the
provisions of Chapter 27, with the City collecting each assessment remaining unpaid following
the expiration of a 30 day cash collection period. Said balance would be payable by each property
owner at an interest rate of 7 percent per annum over a period of ten years; and,
WHEREAS, the Property Owner hereby requests that the City construct street
improvements, including curb, gutter, sidewalk and street widening, on Naples Avenue in front
of said property; and,
WHEREAS, the City has decided to offer Property Owner the same financing option
offered to property owners within Assessment District 96-01. Property owner's share of the
construction cost will be determined based on Council Policy No. 505-01, "Participation by the
City ofChula Vista in 1911 Block Act Program Proceedings", enacted by Resolution No. 11373
and effective August 30, 1983,
NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto
as follows:
A. Terms of PlIYment:
1. Property owner shall pay to City the maximum principal amount of $5828,
with 7% interest, over a period of 10 years. The maximum initial payment
of $415 shall be due and payable on December 10, 1998. The second
semi-annual payment of $415 shall be due and payable on Apri1lO, 1999.
The subsequent 18 semi-anmlal payments equal to a maximum of $415 each
shall be billed and payable with the tax bill beginning in Fiscal Year 1999-
00 and thereafter through Fiscal Year 2007-08.
2. After construction of the Twin Oaks Avenue Improvements has been
completed, the cost payable by Property Owner shall be recalculated by the
City based on the actual cost to the City. In no case will the cost to Property
Owner exceed the amounts given in Section AI. If final construction costs
for the Property are not available prior to December 10, 1998 the City may,
at its option, extend the December 10, 1998 payment deadline.
Page 2
)J.f- b
3. Property owner may pay the principal without any additional interest, fees
or penalties until the expiration of the thirty day prepayment period to
commence on the date that the City Council adopts the resolution
confirming the Engineer's Report on the cost of construction of the
improvements for Assessment District 96-01.
4. Property owner may pay the principal at any time prior to July 1, 2007.
Such payment, if made after the expiration of the thirty day prepayment
period, must include an additionallldmini~trative fee of $100 and a three
percent prepayment penalty. Additional interest payments will not be billed
subsequent to such payment.
5. Property Owner shall pay balance as calculated in Items A3 and A4 above
if Property is sold, transferred or conveyed.
6. For payment which is not made by the due date, Property Owner shall pay
a penalty of 10 percent of the delinquent amount plus 1-1/2 percent per
month in addition to the regular payment.
7. Any changes or amendments at the request of Property Owner regarding
this agreement must be submitted by Property Owner and approved by City
Council prior to July 1, 2007.
II. Duties of the City: City is to repair and maintain the street improvements
constructed adjacent to Property as needed.
C. Avreement Runs with the T .and: The burden of this covenant is for the benefit of
the land owne<t by the City adjacent to the Property. The burden of this covenant
touches and concerns the Property. It is the intent of the parties, and the parties
agree, that this covenant- shall be binding upon both the current Property Owner,
aOO upon the successors, heir, transferees and assigns of the Property Owner, and
run with, the ownership of the land which it burdens.
D. Grant of Lien: For the purpose of securing the faithful performance of the
promises and covenants herein contained, Property Owner hereby grants to the City
of Chula Vista a lien ("Lien") upon the Property in an amount equal to a maximum
of Eight Thousand Three Hundred Dollars ($8300) and which amount shall be
increased or decreased annually at the request of Property Owner in direct
proportion to Property Owners' payment or failure to make payment as herein
agreed upon and the month in which this agreement was entered ("Lien Amount").
1. At any time during the period herein provided, Property Owner, may make
a cash deposit with the City as discussed in Item A3. above. If said cash
payment is made, the City shall rescind the Lien granted by this Agreement,
Page 3
)q- (
and shall record a notice of rescission of same. The rescission of the Lien
shall not constitute a rescission of other covenants and property interests
herein granted, and shall not constitute a basis for not recording this
Agreement.
2. The Lien Amount shall operate as a maximum amount of the principal of
this Lien, exclusive of Attorney's Fees and Costs, and interest from the date
of filing of the foreclosure action on the Lien, which interest Property
Owner agrees to pay at the rate of seven (7 %) percent per annum,
compounded annually.
E. R~medies: Nothing in this agreement shall constitute a limitation on the remedies
provided at law or equity. It is understood, agreed and acknowledged by Property
Owner that, upon failure of the Property Owner to make payments in the manner
specified by this Agreement, the City may, but is not required to, do any of the
following:
1. In the event Property Owner defaults, City may foreclose on said lien, as
provided by law for the foreclosure of mortgages, and Property Owner
agrees that the amount of said lien includes admini~trative and attorneys'
fees which shall be taxed as a cost in any suit or foreclosure. Foreclosure
pror....n;ngs may commence after non-payment of two sequential
installments .
2. Foreclose said lien as a mortgage.
3. Pursue any other remedy, legal or equitable by law, for the foreclosure of
a lien, lUI'i Property Owner, hislher heirs and assigns, shall pay reasonable
attorneys' fees and costs to be taxed as a cost in said proceedings.
F. Mis!'.ellaneous Provisions'
1. Authority of City: Property Owner further agrees that, and agrees not to
protest the fact, that the City is vested with the authority to require the
Property Owner to make payments as agreed herewith.
2. Noli!'..",' 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
Page4 J4-S'
the purpose of this paragraph by giving written notice of such change to the
other party.
C.itt.:.
City of Chula Vista
276 4th Avenue
Chula Vista, CA 91910
Attn: Public Works, Engineering Division
PropertY Owner'
Michael C. And Tonya M. Arnold
239 Naples Street
Chula Vista, CA 91911
(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.)
3. Cllptions: 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.
4. Recitals: Exhibits: Any recitals set forth above are incorporated by
reference into this Agreement.
5. Attorneys' Fees: The prevailing party in any action enforcing the
provisions of this-agreement shall be entitled to reasonable attorneys' fees
in addition to any other costs, damages, or remedies.
6. Govemine Law: This Agreement has been executed in California and shall
be governed by the laws of the State of California.
7. Invalidity: If any term, covenant condition or provision of this Agreement
is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the provisions hereof shall remain in full
force and effect and shall in no way be affected, impaired or invalidated
thereby.
8. ~ Time is of the essence in the performance of the Parties' respective
obligations herein contained.
Page 5
111- r
9. Waivers: The waiver by one Party of the performance of any covenant,
condition or promise shall not invalidate this Agreement, nor shall it be
considered a waiver by him of any other covenant, condition or promise.
The waiver by either or both Parties of the time for performing any other
act or an identical act required to be performed at a later time. The
exercise of any remedy provided in this Agreement shall not be a waiver of
any consistent remedy provided by law, and any provision of this
Agreement for any remedy shall not exclude other consistent remedies
unless they are expressly excluded.
(End of page. Next is signature page.)
Page 6
IJf - !()
SIGNATURE PAGE FOR
LIEN AGREEMENT (pARCEL NO. 619-122-27-00)
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
the day and year first hereinabove set forth.
CITY OF CIDJLA VISTA
DATED:
BY:
(City Clerk to attach acknowledgment.)
PROPERTY OWNERS
Dated:~
Dated: ~AI /78
(Attach notary
,
ent for all signatories.)
NOTES: a. Each owner as reflected on the preliminary title report must sign.
b. Applicant shall submit a check or money order payable to County of San Diego for
fees required to record this agreement. This fee is estimated at $20.00.
Approved as to form:
i?~)j[Yi'~
JOHN .
CITYA" EYU
(H:\HOME\ENGINEER\ASMTDIST\239NAPLI.AGR)
Page 7
11-/ /
ITEM TITLE:
'=if-
Item J S-
Meeting Date 9/15/98
Resolution \ a. \72 Accepting Contract Work for the "Installation of Dual
Left Turn Lanes on Otay Lakes Road at East 'H' Street" (STM-322)
Project, Approving Change Order No.4, and Authorizing the Director of
Public Works to Execute Said Change Order on Behalf of the City
SUBMITTED BY: Director of Public wor~.
REVIEWED BY: City Managef})'R, ~ ~\ (4/5ths Vote: Yes _ No-X.)
On June 10, 1997, the City Council approved Resolution No. 18694 awarding a contract in the
amount of $1,007,914.75 (plus contingencies of $261,970.29) to Single Eagle, Inc., for the
installation dual left turn lanes on Otay Lakes Road at East "H" Street (STM-322).
COUNCIL AGENDA STATEMENT
The work is now complete and the Notice of Completion was filed on August 17, 1998. Single
Eagle, Inc. has submitted its final invoice (the total contract cost is $1,125,274.74). Retention
in the amount of $55,845.85 (5% of $1,125,274.74) will be paid 35 days after the Notice of
Completion was recorded.
Change Order No.4, which will increase the contract by $14,020.49, is for extra work items
including curb modifications and additional striping, survey monuments, landscaping, and
irrigation.
RECOMMENDATION: That Council approve the Resolution accepting the contract work,
approving Change Order No.4, increasing the contract by $14,020.49 and authorizing the
Director of Public Works to execute said Change Order on behalf of the City.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Since beginning construction in July 1997, Single Eagle has worked diligently to widen the
roadway and install dual left turn lanes at the intersection of Otay Lakes Road and East "H"
Street, which is one of the City's busiest intersections. Single Eagle overcame many challenges
and has completed the project. The City can now accept the improvements.
As with any project this size, located at one of the City's busiest intersections and adjacent to a
major High School and a Community College, some design changes were expected to occur.
Contingencies of $261,970.29 were appropriated to accommodate these changes. Previous
changes orders were:
. Change Order No.1, which totaled $5,053.46, included the installation of additional
drainage improvements (inlet, cleanout and conduit) and a pedestrian protection railing.
. Change Order No.2 which totaled $9,862.25, was for extra work to relocate and install
three existing street lights from the Otay Rio Business Park to Otay Lakes Road. The
street lights were necessary to replace existing street lights, mounted on power poles, that
were removed as part of the Utility Undergrounding District along Otay Lakes Road.
J~- )
Page 2, Item
Meeting Date 9/15/98
. Change Order No.3 was approved by City Council Resolution No. 18949 on April 7,
1998 and totaled $53,710.26 ($51,996.67 was actually used after adjustments for
quantities). Change Order No.3 consisted of extra work items or changes to the street
lights, fences, landscaping, irrigation, pedestrian ramps, and paving materials. These
changes were necessary to accommodate field conditions and/or were requested by the
Sweetwater High School District.
Change Order No.4, which is now before the City Council for consideration) will increase the
contract by an additional $14,020.49 and will bring the aggregate total of all the change orders
to $82,464.46 ($80,932.87 was actually used after minor adjustments to quantities associated with
Change Order No.3). Change Order No.4 includes a modified curb in the High School parking
lot to improve drainage, additional traffic striping and markings, four (4) additional centerline
survey well monuments, installation of "Bio Barrier" root barrier for root control in the median,
and additional landscaping and irrigation at the Southwestern College parking lot and near Bonita
Vista High School's new driveway.
The total construction cost of $1,125,274.74 includes a net adjustment of $36,427.12 to the
contract item quantities and $80,932.87 in actual change order costs. It should be noted that the
Sweetwater Union High School District will reimburse the City $8,431.25 for substituting the
proposed chain link fence on top of the project wall in front of Bonita Vista High School with an
ornamental wrought iron fence.
FISCAL IMPACTS:
Proposed Change Order No.4 totals $14,020.49. This change order along with adjustments to
contract quantities and previous change orders brings the [mal contract amount with Single Eagle,
Inc to $1,125,274.74, as shown below under "Actual Contact Expenditures". The remaining
balance of the project's contingency fund will be $171,295.08, after execution of Change Order
No.4. $171,295.08 less staff charges incurred after June 30, 1998, as well as the $8,431.25
reimbursement from the school district, will be returned to the fund balance.
PrQject Accountinl1
I.
Apprqpriated Funds (Construction Phase Only)
a. Transportation Development Impact Fees Funds (TRANSDIF)
$1,538,705.92
II. Contract Amount as Awarded by City Council Resolution No. 18694
a. Award Amount
b. Contingencies
c. Water Facilities (Payment to Otay Water District)
d. Right-of-Way Expenses (payment towards new Fire Station)
(Transfer from the TRANS DIF to the Public Facilities DIF)
e. Materials and Lab Testing
f. Staff Costs (Construction Inspection and Contract Administration)
$1,007,914.75
261,970.29
13,820.88
150,000.00
20,000.00
85.000 00
Total Anticipated Funds Required for Construction
$1,538,705.92
}~-~
Page 3, Item
Meeting Date 9/15/98
II. Actual Construction Expenditures
a. Original Award Amount
b. Change Orders 1 through 4
c. Net Adjustments to Bid Item Quantities
d. Adjustment to Change Order No.3 Quantities
Total Contract - Single Eagle, Inc.
e. Water Facilities (Payment to Otay Water District)
f. Right-of-Way Expenses (payment Toward New Fire Station)
g. Materials and Lab Testing
h. Staff Costs (Construction Inspection and Contract Administration
through June 30, 1998)
Total Construction Cost (a through h)
f. Less Reimbursement by Sweetwater Union High School District
Net Construction Expenditures
$1,007,914.75
82,646.46
36,427.12
( 1.713.59)
$1,125,274.74
7,142.32
150,000.00
9,707.00
83,718.03
$1,375,842.09
($ 8.431.25)
$1,367,410.84
In addition to the above construction costs, the City will incur ongoing maintenance costs
associated with the street improvements constructed.
Enclosures:
Proposed Change Order No.4 / I
City Council Resolution No. 18694 Awarding Contract to Single Eagle, Inc.
H:IHOMEIENGINEERIAGENDAISTM322C4.113
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RESOLUTION NO. /9/;?c:2/
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING CONTRACT WORK FOR THE
"INSTALLATION OF DUAL LEFT TURN LANES ON OTAY
LAKES ROAD AT EAST 'H' STREET" (STM-322)
PROJECT, APPROVING CHANGE ORDER NO.4, AND
AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO
EXECUTE SAID CHANGE ORDER ON BEHALF OF THE
CITY
WHEREAS, on June 10, 1997, the city Council approved
Resolution No. 18694 awarding a contract in the amount of
$1,007,914.75 (plus contingencies of $261,970.29) to Single Eagle,
Inc., for the installation dual left turn lanes on Otay Lakes Road
at East "H" Street (STM-322); and
WHEREAS, the work is now complete and the Notice of
Completion was filed on August 17, 1998; and
WHEREAS, Single Eagle, Inc. has submitted its final
invoice (the total contract cost is $1,125,274.74) and retention in
the amount of $55,845.85 (5% of $1,125,274.74) will be paid 35 days
after the Notice of Completion was recorded; and
WHEREAS, Change Order
contract by $14,020.49, is for
modifications and additional
landscaping, and irrigation.
NO.4, which will increase the
extra work items including curb
striping, survey monuments,
NOW, THEREFORE, BE IT RESOLVED the city Council of the
City of Chula vista does hereby accept contract work for the
"Installation of Dual Left Turn Lanes on Otay Lakes Road at East
'H' Street (STM-322) Project.
BE IT FURTHER RESOLVED that Change Order No.4,
increasing the contract by $14,020.49, is hereby approved and the
Director of Public Works is authorized to execute said change order
on behalf of the City of Chula vista.
Presented by
Approved as to form by
ey
John P. Lippitt, Director of
Public Works
H:\home\lorraine\rs\stm322.co4
15 - --5'"
, i
I
CHANGE IN CONTRACT
CHANGE ORDER NO. 4
DATE: June 29,1998
FILE: 0735-10-STM322
CONTRACT: OTAY LAKES ROAD DUAL LEFT TURN LANES AT EAST "H" STREET
IN THE CITY OF CHULA VISTA; (STM-322)
CONTRACTOR: Single Eagle, Inc.
The following changes shall be made to increase the contract dated June 10, 1997 between the
City of CtlUla Vista and Single Eagle, Inc.
REMARKS AND DETAILS:
1. Apply Thermoplastic markings in lieu of paint for all crosswalks on the project.
L.S. $3,898.12
2 Modify the height of the existing curb in the parking lot of Bonita Vista High School from six to
twelve inches to provide for improved drainage.
L.S. $1,449.57
3. Install Caltrans Detail 40 striping in the intersection of East "H" Street and Otay Lakes Road.
L.S. $315.00
4. Delete 5 (five) Palm Trees and install "Bio Barrier" root control over the existing 8" gas main in
the median island of Otay Lakes Road south of East "H" Street.
L.S. $ 2,231.05
5. Install 4 (four) additional centerline survey well monuments on Otay Lakes Road south of East
"H" Street.
L.S. $ 3,549.00
6. Install additional landscaping and irrigation at the Southwestern College parking lot adjacent to
the new concrete driveway approach. Install 3 (three) 36" pine trees in the turf area of Bonita
Vista High School north of the new driveway on Otay Lakes Road.
L.S. $2,577.75
TOTAL $14,020.49
The agreed lump sum price given is considered to be full cost for furnishing all tools, labor,
materials, equipment, incidental costs, overhead and fees for performing the work in this contract
change and no additional compensation will be due.
}5~~
{~
CHANGE IN CONTRACT
CHANGE ORDER NO. 4
DATE: June 29,1998
FILE: 0735-10-STM322
PAGE No.2
ORIGINAL CONTRACT PRICE: $1,007,914.75
PREVIOUS CHANGE ORDERS: $ 68,625.97
THIS CHANGE ORDER: $ 14.020.49
AGGREGATE TOTAL OF CHANGE ORDERS: $ 82.646.46
REVISED TOTAL CONTRACT PRICE: $1,090,561.21
It Is agreed by the undersigned that all extra work shall be performed and materials furnished
according to the original contract and according to the statement, if any, attached hereto. The
contract time shall be extended by fifteen (15 ) working days.
APPROVED BY
ACCEPTED BY
ORDERED BY
John P. Lippitt
Director of Public Works
Si e Eagle; Inc.
~~
r<.1/f.j 131< 1.N11.J0' rt;,~r
C.liff~r' L. wanson r
Deputy Public Works Dlrectorl
City Engineer
(H:\., IInspeClionlChg. OdrISTMl22-4.CCO: Mil)
15' -1
RESOLUTION NO.1 8694
RESOLUTION O'F THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
CONSTRUCTION OF OTAY LAKES ROAD DUAL LEFT TURN
LANES AT EAST "H" STREET IN THE CITY OF CHULA VISTA
ISTM-322) AND AUTHORIZING THE TRANSFER OF FUNDS
FROM THE TRANSDIF OF THE PUBLIC FACILITIES DIF (STM-
322)
WHEREAS, at 2:00 p.m. on May 21, 1997, in Conference Room 2 and 3, the Director
of Public Works received the following three sealed bids for the construction of Otay Lakes
Road dual left turn lanes at East "H" Street in the City of Chula Vista (STM-322):
Single Eagle, Inc.
Po way, Ca.
$1,007,914.75
Scheidel Contracting, Inc,
La Mesa, Ca.
$1.085,813.50
L. R. Hubbard Construction Co.
San Diego. Ca.
$1,173,932.00
WHEREAS. the low bid by Single Eagle, Inc.. is below the Engineer's estimate of
$1,089,517.50 by $81,602.75 or 7.5%; and
WHEREAS, the low bidder has satisfactorily met all the requirements, therefore. staff
recommends awarding the contract to Single Eagle, Inc., Poway; and
WHEREAS, this project is primarily f.unded through the Transportation Development
Impact Fee (Trans DIFI and based on the current project funding guidelines, no prevailing
wage requirements were necessary as a pa'rt of the bid documents; and
WHEREAS, a Negative Declaration pursuant to CEOA requirements was filed on
January 24, 1966 with the County Clerk's Office (lS-95-05).
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby accept the three bids and award the contract for the construction of Otay Lakes Road
Dual Left Turn Lanes at East "W Street in the City of Chula Vista to Single Eagle, Inc. in the
amount of $1,007,914.75.
BE IT FURTHER RESOLVED that the Mayor of the City of Chuta Vista is hereby
authorized and dlfected to execute said contract on behalf of the City of Chula Vista and
placed on file in the office of the City Clerk, known as Document No. C097-063.
BE IT FURTHER RESOLVED that the City Council does hereby authorize the transfer
of funds in the amount of $150.000 from the TRANSDIF to the Public Facilities DIF to be used
In the construction of the Paseo Ranchero Fire Station. C-- ,~ ---> ~
}5 - cg--
~
Resolution 18694
Page 3
PASSED. APPROVED. and ADOPTED by the City Council of the City of Chula Vista.
California. this 10th day of June. 1997. by the following vote:
AYES:
Councilmembers:
NA YES
Councilmembers:
ABSENT:
Council members:
ABSTAIN:
Councilmembers:
ATTEST:
W.w4 (} aA7P.al
Beverly A. uthelet. City Clerk
STATE OF CAliFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
Moot. Padilla. Rindone. Salas. and Horton
None
None
None
"
"---...
.dIvM ~'
Shirley H~. Mayor
I. Beverly A. A\.Jthelet. City Clerk of the City of Chula Vista. California, do hereby certify that
the foregoing Resolution No. 18694 was duly passed. approved. and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 10th day of June.
1997.
Executed this 10th day of June. 1997
l~-~
~f1tq",4.~?,;
Revised A-113
Continued from 9/1/98
COUNCIL AGENDA STATEMENT
Item 16
Meeting Date 9/15/98
ITEM TITLE:
A.
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 97-1 (Open
Space Maintenance District [Otay Ranch - SPA One, Villages I & 5])
pursuant to the provisions of the "Mello-Roos Community Facilities Act
of 1982", for the purpose of financing certain public services through
the levy of a special tax to pay for all or a portion of such public
services and the intent to authorize a special tax to pay for all or a
portion of such public services.
B. Resolution 19157 of the City Council of the City ofChula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Special Tax Report for Community Facilities
District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA
One, Villages I & 5]) .
C. Resolution 19158 of the City Council of the City ofChula
Vista, California, forming and establishing Community Facilities
District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA
One, Villages I & 5]) and authorizing submittal of levy of special taxes
to the qualified electors.
SUBMITTED BY: Director of Public Works ~
REVIEWED BY: City Manag0~ ~\ (4/5ths Vote: Yes_NoX)
On July 28,1998, Council appproved the Resoluti~ofIntention to form Community Facilities District
No. 97-1 and set the public hearing for September I, 1998. This district will fund the perpetual
operation and maintenance of open space slopes, drainage channels, detention basins, medians and
parkways ofOtay Ranch SPA I, Villages I and 5. Tonight's action will continue the formal proceedings
leading to the establishment of CFD No. 97-1.
RECOMMENDATION: That Council:
I) Open the hearing, take testimony, close the public hearing;
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 97-1 or the owners ofland within CFD No. 97-1
3) Approve the resolution making preliminary findings, passing upon protests and
approving the CFD No. 97-1 report.
4) Approve the resolution establishing CFD No. 97-1 and submitting the levy of special
taxes to finance certain services to the qualified electors ofCFD No. 97-1.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. /{jf-/
Page 2, Item 16
Meeting Date 9f15f98
DISCUSSION:
On July 28,1998 Council declared its intention to establish Community Facilities District 97-1 (CFD
97-1) and ordered the preparation of a report describing the service which CFD 97-1 will provide and
an estimated cost. The district is consistent with the City's CFD Policy, adopted January 13, 1998 and
modified July 28, 1998. The district is also consistent with the CFD Ordinance adopted April 28, 1998.
Community Facilities Districts will provide the necessary funding for the operation and maintenance
of public landscaping improvements by levying an annual "special tax", which is collected from the
property owners in conjunction with the property taxes. There is no direct cost to the City. All expenses
related to the district administration (including levying and collecting the special taxes) are funded by
the district.
Both the Otay Ranch Company and McMillin Otay Ranch have requested greater accountability as to
the annual tax to be levied on developer (vacant) land and asked for greater involvement in preparing
the annual district's budgets. These issues will be addressed in an "implementation agreement", which
is anticipated for Council consideration in the near future.
Area of Benefit
The proposed boundary ofCFD No.97-1 encompasses all parcels located within the Otay Ranch SPA
One, Villages I and 5, which includes the Otay Ranch Company and McMillin Otay Ranch project (total
acreage = 1,093). At buildout, the district will contain a total of2,758 Single Family Residences, 2,300
. Multifamily Residences, 7.9 acres of commercial, and 10.4 acres of Community Purpose Facilities
(churches, day care, etc.). A reduced copy ofthe map is presented in Exhibit 1.
Description of facilities
The proposed CFD 97-1 will fund the operation and maintenance of the public landscaping
improvements (i.e., open space slopes, trails, detention basins, drainage channels, pedestrian bridges,
parkways and medians) within the Otay Ranch SPA One for both: The Otay Ranch Company and
McMillin Otay Ranch projects (see Exhibit 2). A complete list of said public facilities is presented in
Exhibit 3.
The district proposes the creation of the following two Special Tax Areas (see Exhibit 4):
. Special Tax Area "A" includes all the parcels within the district. The taxes levied on Area "A"
will provide for the maintenance of all those common improvements (i.e., medians, parkways,
pedestrian bridges, drainage improvements, path lighting, etc.) providing benefit to all of SPA
One (regardless of ownership).
. Special Tax Area "B" encompasses only those areas within SPA One within the Otay Ranch
Company project. This Area will provide for the maintenance of open space, slopes, trails, and
walls within the public open space lots. Only the Otay Ranch Company will dedicate open
space lots to the City over the slopes fronting Paseo Ranchero, Telegraph Canyon Road, Otay
Lakes Road, East Palomar Drive, and Olympic Parkway. All slopes within the McMillin project
will be privately maintained by their MHOA.
Both developers are also proposing the formation of individual Master Homeowners' Association
(MHOA) which will complement the maintenance obligations of the district, as fOI/ZIt-- .!2-..
Page 3, Item 16
Meeting Date 9/15/98
. The Otay Ranch Company MHOA will maintain the entry monuments at the major entrances
to the project, minor private open space lots within the subdivision, parkways along private
local and collector streets, and private pedestrian parks. There are some areas within the public
right of way or easements that are not included in the landscaping budgets for the maintenance
district and will be maintained by the MHOA. The developer will be required to include these
areas in the CC&R's for the MHOA to address maintenance, liability and insurance issues.
. The McMillin Otay Ranch MHOA will maintain the major open space slopes along La Media
Road, Telegraph Canyon Road, Otay Lakes Road, East Palomar Street and Olympic Parkway.
In addition, the developer is proposing that the MHOA maintain certain public landscaping
improvements within the public right-of-way or easements. The developer will be required to
include these areas in the CC&R's for the MHOA to address maintenance, liability and
insurance issues.
There are two companion items in tonight's agenda relating to the formation of CFD No. 98.1 (The
Interim Open Space Maintenance District, Otay Project,) and CFD No. 98-2 (The Interim Open Space
Maintenance District, McMillin). These districts will include lands owned by the Otay Ranch Company
and McMillin outside of SPA One. The special taxes collected from those areas will provide funding
for the maintenance of certain improvements which will be constructed by SPA One but provide benefit
to those areas outside of SPA One.
Cost Estimate
The estimated annual budget for CFD No. 97-1 is $1,621,000. This budget includes a total of
$1,425,298 for maintenance, $171,602 for administration by Parks or Open Space Division and $24,100
for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.) by the
Engineering Division. Staff has reviewed and approved the proposed budget. Exhibit 5 contains a
detailed annual budget for the district at buildout of SPA One. The unit prices used in determining the
budget are based on historical costs of maintenance of similar improvements within existing Open Space
Maintenance Districts in the City.
Proposed Special Tax
The district has four categories of taxation, as follows:
. Residential Developed Parcels (single and multi family residences) are taxed based on the
square footage ofthe building.
. Non-Residential Developed Parcels (commercial and community purpose facilities) are taxed
based on acreage ofthe parcel
. The Vacant Land category includes all the parcels for which a building permit has not been
issued. The tax on Vacant Land is based on the total acreage of the parcel.
. The Exempt Category includes all public parcels within the district.
Developed parcels are those parcels for which a building permit has been issued. The maximum rate
of the tax on all developed parcels is determined by dividing the estimated annual budget at buildout of
each special tax area (plus a reserve allocation of 10% of the annual budget) by the total estimated
square footage of development at buildout. The apportionment methodology assumes that one acre of
Non-Residential properties is equal to 6 single family residences. The special tax consultant considers
JtlF- 3
Page 4, Item 16
Meeting Date 9/15/98
this a reasonable assumption which has been used in other CFDs throughout California. This ratio is
corroborated by data published by the San Diego Area Association of Governments (SANDAG) which
provides that the "people generation" of one acre of commercial property is approximately 5.6 times the
number of people in a single family residence
The maximum tax rate on Vacant Land has been estimated by the dividing the estimated annual budget
at buildout of each special tax area (plus a reserve allocation of 10% of the annual budget) by the total
acreage of all parcels within the district.
Collection of Taxes
At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability
(budget plus reserve) of each Special Tax Area. Then, the special taxes will first be levied on the
developed parcels (Residential and Non-Residential). If this pool of funds is not enough to meet the
annual need, as may be the case in the early years of development, the district will levy a tax on the
Vacant Land. The buffer of having the vacant land covering any remaining costs will disappear once
the area has been fully developed. If the annual need is less than the collectible tax from the Developed
Parcels, the special taxes to be levied in that specific year will be reduced accordingly.
Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment
of the Special Taxes" :
. The maximum special taxes may be adjusted each year for inflation using a factor equal to the
lesser of the annual change of the San Diego Consumer Price Index or the California Fourth
Quarter Per Capita Personal Income.
. The "City ofChula Vista Community Facilities District Ordinance" requires that the developer
maintain the landscaping improvements for a minimum period of one year. During this period,
the City will collect the special taxes with the purpose of building up an operating reserve not
to exceed 100% of the annual budget. The special tax formula provides that the annual budget
for any year may include an amount deemed necessary to maintain an adequate level of reserve
fund.
. The maximum tax rates are based on the best estimate by the developers of the square
footage of residential development (reduced by a 15% margin of error). This assumed
reduction in total square footage has the net result of raising the maximum tax that can be
levied on future residential parcels to account for any loss in projected square footage and
the corresponding revenue.
. The special tax formula provides that any cost due to delinquent taxes on vacant land shall
be apportioned to the project (Otay Ranch Company or McMillin) where the delinquent
parcels are located. This will eliminate any crossed-collateralization issues between the two
developers by making the delinquent developer solely responsible for correcting any
delinquency originating from their project.
. The annual budgets used to calculate the tax rates are only the "best estimates"ofthe cost of
maintenance at buildout. There is always a risk that actual expenses in future years may
be higher than the total maximum collectible taxes. This may result in reduced level of
maintenance of the landscaping, unless the property owners approve an increase in the tax
I ~fl-1
Page 5, Item 16
Meeting Date 9/15/98
rates (213 voter's approval is required) which is considered unlikely. Staff believes, however,
that the proposed tax rates contain enough of a cushion in the reserve, the inflation
adjustment, and the assumed reduction of total square footage to minimize future problems.
Proposed Maximum Taxes
The rate of special tax levy broken down by zone for this district for a typical dwelling matrix is as
follows:
Zones A & B Zone A
Otay Ranch McMillin Otay Ranch
Single Family Detached (2000 SF) $564 $168
Single Family Detached (1200 SF) $338 $101
Attached (1100 SF) $310 $92
Multi Family (1000 SF) $282 $84
Commercial/Industrial ( 1 Acre) $3681 $1143
Vacant Land $4163 $1293
Comparison to other Open Space Maintenance Districts
The total estimated budget for CFD No. 97-1 at buildout is $1,421,203 with an armual maximum
tax of $564 for a 2,000 square foot single family residence located in Zones A and B. A 2,000
square foot residence located in Zone A only has a maximum tax of only $168 due to the open space
slopes being maintained by the HOA within McMillin Otay Ranch. As a comparison, the 1997-98
total assessment for the existing 24 districts (total of 12,559 parcels) in the City is $1.9 million and
the highest homeowner armual assessment is $535 (Canyon Views - 40 residences) .
Resolutions
There is one public hearing and two resolutions on today's agenda which, if adopted, will
accomplish the following:
*
The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
*
The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements oflaw.
. Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CDF 97-1.
. Passing on any protest received.
. Approving the report.
*
The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the district and authorizing the submittal of the
levy of special tax to the qualified electors of the district on )~r'll!...
Page 6, Item 16
Meeting Date 9/15/98
~.12) ten (10) business days after the City is notified of the close of the land exchange
between the Otay Ranch Company and McMillin Otay Ranch, or 3) such other date as the
qualified electors and the City Clerk may mutually agree. A resolution certifying the results
of the election would be brought before Council on the first available Council meeting
following this election.
FISCAL IMP ACT: All costs of formation of the district are being borne by the developers and the
on-going administration will be funded entirely by the district. The City will receive the benefit of
full cost recovery for staff cost involved in the following activities: 1) district formation (staff cost
estimated at $12,000), and 2) district administration in perpetuity (estimated annual staff cost at
buildout of $171,602 for the Operations Division (Parks Maintenance staff) and $24,100 for the
Engineering Division staff.
Exhibits:
1-
2-
3 -
4-
5 -
Boundary Map J j
Landscaping Impfovements
List of facilities ~
Special Tax Areas v \
Cost Estimate for the District ~
Attachments
A-
Special Tax Report CFD 97-1
September 10, 1998
H:\HOME\ENGINEER\agenda\97.1PH. wpd
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RESOLUTION NO. / 9/51
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY
FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY
RANCH - SPA ONE, VILLAGES 1&5])
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City
Council"), has previously declared its intention and ordered the preparation of a Special Tax Repon relating
to the initiation of proceedings to create a Conununity Facilities District pursuant to the terms and provisions
of the "Mello-Roos Conununity Facilities Act of 1982", being Chapter 2.5, Pan 1, Division 2, Title 5 of the
Government Code of the State of California (the "Act") and the City of Chula Vista Conununity Facilities
District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5
and 7 of Anicle Xl of the Constitution of the State of Califontia (the . Ordinance" ) (the Act and the
Ordinance may be referred to collectively as the "Conununity Facilities District Law"). This Conununity
Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 97-1
(OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES I & 5]) (the
"District"); and,
WHEREAS, notice of a public hearing relating to the establishment of the District,the extent of the
District, the furnishing of cenain services and all other related matters has been given, and a Special Tax
Repon, as ordered by this City Council, has been presented to this City Council and has been made a pan
of the record of the hearing on the Resolution of Intention to establish said District; and,
WHEREAS, all conununications relating to the establishment of the District, the proposed services
and the proposed rate and method of apponionment of special tax have been presented, and it has further been
determined that a majority protest as defined by law has not been received against these proceedings; and,
WHEREAS, the Special Tax Repon as now submitted funher containing changes and modifications
to the proceedings, as applicable, is hereby approved; and,
WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the
territory of the District for at least the preceding ninety (90) days, this legislative body is desirous to submit
the levy of the required special tax to the landowners of the District, said landowners being the qualified
electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The written protests received, if any, do not represent a majority protest as defined
by the applicable provisions of the Community Facilities District Law.
SECTION 3. The Special Tax Repon, as now submitted, shall stand as the Special Tax Repon for
all future proceedings and all terms and contents are approved as set fonh therein.
Ih 13 - /
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SECTION 4. It is hereby determined by this legislative body to proceed with the formation and
establishment of the District, formally known and designated as "COMMUNITY FACILITIES DISTRlCT
NO. 97-1 (OPEN SPACE MAINTENANCE D1STRlCT [OTAY RANCH" SPA ONE, VILLAGES I &
5]). .'
"""'"
SECTION 5. It is hereby further detennined by this legislative body that all proceedings prior
hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of
the Community Facilities District Law. and this finding is made pursuant 10 the provisions and authorization
of Section 53325, I of the Government Code of the State of California, It is further determined by this
legislative body that the District as proposed confonns with the City of Chula Vista Statement of Goals and
Policies Regarding the Establishment of Conununity Facilities Districts, as amended,
SECTION 6, It is determined by this legislative body that less than twelve (12) registered voters
have resided within the territory of the District for each of the ninety (90) days preceding the close of the
public hearing. Consequently this legislative body further determines that pursuant to the Conununity
Facilities District Law the qualified electors shall be the landowners of the District and each landowner who
is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall
have one vote for each acre or ponion of an acre of land that she or he owns within the District.
SECTION 7, It is determined by this legislative body that the time limit specified by the Conununity
Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified
electors of the District and the requirements for impartial analysis and ballot arguments have been waived
with the unanimous consenrof the qualified electors of the District, It is further determined by this legislative
body that the City Clerk, acting as the election official, has consented to conducting any required election """'"
on a date which is less than 125 days following the adoption of any resolution forming and establishing the
District.
SECTION 8, It is hereby further determined by this legislative body that the proposed public
services are necessary to meet increased demands placed upon the City as a result of development and/or
rehabilitation occurring in the District.
PREPARED BY:
APPROVED AS TO FORM BY:
0--- ~fr-
John P. Lippin
Director of Public Works
John Kaheny
City Attorney
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RESOLUTION NO. /9/5'!
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRlCT
NO. 97-1 (OPEN SPACE MAINTENANCE DISTRlCT [OTAY RANCH - SPA ONE,
VILLAGES I & 5]) AND AUTHORIZING SUBMmAL OF LEVY OF SPECIAL TAXES
TO THE QUALIFIED ELECTORS
WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY
OF CHULA VISTA, CALIFORNIA (the "City Council"), is desirous at this time to proceed with the
establishment of a community facilities district, pursuant to the terms and provisions of the "Mello-Roos
Community Facilities Act of 1982", being Chapter 2.5, Pan 1, Division 2, Title 5 of the Government Code
of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance
enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI
of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred
to collectively as the "Community Facilities District LaW"). Such Community Facilities District shall
hereinafter be referred to as COMMUNITY FACILITIES DISTRlCT NO. 97-1 (OPEN SPACE
MAINTENANCE DlSTRlCT [OTA Y RANCH - SPA ONE, VILLAGES I & 5]) (the "District"); and,
WHEREAS, this legislative body has further declared its intent tltat the authorized public services
be financed through the levy of special taxes; and, .
WHEREAS, at any time before or after the formation of the District, this legislative body may accept
advances of funds andlor work in kind from any source; however, no reimbursement andlor repayment shall
be made for said advances until expressly set forth by agreement andlor Resolution of this legislative body
setting forth the amount, terms and conditions for any reimbursement andlor repayment; and,
WHEREAS. all communications relating to the establishment of the District. the proposed services
and the proposed rate and method of apponionment of the special tax have been presented. and it has further
been detertnined that a majority protest as defmed by law has not been received against these proceedings.
NOW. THEREFORE, BE IT RESOLVED AS FOLLOWS:
RECITALS
SECTION I. The above recitals are all true and correct.
FINDINGS AND DETERMINATIONS
SECTION 2. All findings and determinations of this legislative body made in that certain Resolution entitled
"RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA. MAKING
CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE SPECIAL TAX
REPORT FOR COMMUNITY FACILITIES DlSTRlCT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRlCT
[OTA Y RANCH - SPA ONE. VILLAGES] & 5])" are incorporated herein as if set forth at this point.
FINAL REPORT
SECTION 3.
The Special Tax Report. as now submitted. shall stand as the Speci~ Tax RePOZ;~<(t_ (V I
]
/~{!-/
\/
........,
all future proceedings and all terms and contents are approved as set fonh therein.
NAME OF DISTRICT
SECTION 4. This legislative body does hereby establish and declare the formation of the
Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 97.1 (OPEN
SPACE MAINTENANCE DISTRICT [OTAY RANCH. SPA ONE, VILLAGES I & 5])."
BOUNDARIES OF DISTRICT
SECTION 5. The boundaries and parcels ofland in which the public service are to be provided and
on which special taxes will be levied in order to pay the costs and expenses for said public services and public
facilities are generally described as follows:
All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 97.[ (OPEN SPACE
MAINTENANCE DISTRICT tOT A Y RANCH . SPA ONE, VILLAGES 1 & 5]) as shown on a boundary
map as previously approved by this legislative body, said map designated by the name of this
Community Facilities District, a copy of which is on file in the Office of the City Clerk. The
boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the
Streets and Highways Code of the State of California in the Office of the County Recorder of the
County of San Diego, at Page 49 of Book 32 of the Book of Maps of Assessment and Community
Facilities Districts for said County:
DESCRIPTION OF SERVICES
........
SECTION 6. The proposed services to be provided to serve the District are generally described as
follows:
The maintenance and servicing of public facilities including irrigation, cultivation, installation
and replacement of plant material, tree trimming and necessary supplies, personnel, utility
and equipment costs; contract services where applicable; maintenance and servicing of parks,
parkway landscaping and medians, drainage facilities, pedestrian bridges and open space
slopes, trails and walls.
For a full and complete description of the public services, reference is made to the final Special Tax Repon,
a copy of which is on file in the Office of the City Clerk. For all paniculars, reference is made to said
Special Tax Report.
SPECIAL TAX
SECTION 7. Except where funds are otherwise available a special tax, secured by recordation of
a COntinuing lien against all non-exempt real property in the proposed District, is hereby authorized, subject
to voter approval, to be levied annually within the boundaries of said District. The proposed special tax to
be levied within said District has not been precluded by majority protest pursuant to Section 53324 of the
Government Code of the State of California. For particulars as to the rate and method of apponionment of
the proposed special tax, reference is made to the attached and incorporated Exhibit "A" (the "Special Tax
Formula"), which sets forth in sufficient detail the method of apportionment to allow each landowner or
resident within the proposed District to estimate the maximum amount that said person will have to pay. Said ""'"
special tax shall be utilized to pay for the Special Tax Liability of the District as such term' is defined in the
2
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Special Tax Formula.
The special taxes herein authorized shall be collected in the same manner as ad valorem property
taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency,
as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish
and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected
on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of
Chula Vista, acting for and on behalf of the District.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and
Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach
to all non-exempt real property in the District and this lien shall continue in force and effect until the special
tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until
collection of the tax by the legislative body ceases.
PREPARATION OF ANNUAL TAX ROLL
SECTION 8. The name, address and telephone number of the office, department or bureau which
will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel
number and which shall be responsible for estimating furore special tax levies pursuant to Section 53340.1
of the Government Code of the State of California, are as follows:
FINANCE DEPARTMENT
CITY OF CHULA VISTA
276 FOURTH A VENUE
CHULA VISTA, CA. 91910
APPEALS AND INTERPRETATION PROCEDURE
SECTION 9. Any landowner or resident who feels that the amount of the special tax levied against
his or her property or the Special Tax Formula as applied to his or her property is in error may file a notice
with the City Council appealing the levy of the special tax. An appeals panel of 3 members, as appointed by
the City Council, will then meet and promptly review the appeal, and if necessary in the determination of the
appeals panel, such panel may meet with the appellant. If the findings of the appeals panel verify that the
special tax should be modified or changed, a recommendation at that time will be made by the appeals panel
to the City Council and, as appropriate, the City Council may order that the special tax levy be corrected,
and if applicable in any case, a refund shall be granted.
Interpretations may be made by the City Council by Resolution for purposes of clarifying any
vagueness or ambiguity as it relates to any category, zone, rate or definition applicable to these proceedings.
ELECTION
SECTION 10. This legislative body herewith submits the levy of the special tax to the qualified
electors of the District, said electors being the landowners of the proposed District, with each landowner
having one (I) vote for each acre or portion thereof of land which he or she owns within the Community
Facilities District.
This legislative body hereby further directs that the ballot proposition relating to the levy of the above
3
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"""'"
referenced special tax be combined and consolidated with the proposition set forth in Section 11 below
relating to the establishment of an appropriations limit for the District.
The proposition related to the levy of the special tax shall, together with a proposition to establish an
appropriations limit for the District, shall be submilled to the qualified voters at a special election to be held
on THE EARLIEST OF THE FOLLOWING: (a) DECEMBER 1, 1998, (b) THE TENTH BUSINESS DAY
FOLLOWING THE DATE UPON WHICH THE CITY IS NOTIFIED OF THE CLOSE OF THE
EXCHANGE OF A CERTAIN PORTION OF ASSESSOR'S PARCEL NO. 642-071-12 FROM OTAY
PROJECT, LLC-OVP TO McMILLIN - D.A. AMERICA AND A CERTAIN PORTION OF ASSESSOR'S
PARCEL NO. 642-100-01 FROM McMILLIN - D.A. AMERICA TO OTAY PROJECT, LLC-OVP, OR
(c) SUCH OTHER DATE AS THE QUALIFIED ELECTORS AND THE CITY CLERK MAY
MUTUALLY AGREE and said election shall be a special election to be conducted by the City Clerk
(hereinafter referred to as the "Election Official "). If the proposition for the levy of the special tax receive
the approval of more than two-thirds (2/3) of the votes cast on the proposition the special tax may be levied
as provided for in this Resolution.
BALLOT
SECTION II. The ballot proposals to be submitted to the qualified voters at the election shall
generally be as follows:
PROPOSITION A
Shall COMMUNITY F ACILITIESDISTRICT NO. 97-1 (OPENSP ACE MAINTENANCE DISTRICT lOT A Y """'"
RANCH - SPA ONE, VILLAGES 1 & 5]) of the City of Chula Vista be authorized to levy special taxes
thereof pursuant to the rate and method of apponionmen.t of special taxes (the "Special Tax
Formula") set forth in Resolution No. to finance the Special Tax Liability as defined
in me Special Tax Formula?
PROPOSITION B
Shall COMMUNITY F ACILmES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT lOT A Y
RANCH - SPA ONE, VILLAGES 1 & 5]) of the City of Chula Vista establish an Article XIIIB
appropriations limit equal to $1,783,088.00?
VOTE
SECTION 12. The appropriate mark placed in the voting square after the word "YES" shall be
counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after
the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition.
ELECTION PROCEDURE
SECTION 13. The Election Official is hereby authorized to take any and all steps necessary for
holding the above election. The Election Official shall perform and render all services and proceedings
incidental to and connected with the conduct of the election, including but not limited to, the following:
Prepare and furnish to the necessary election supplies for the conduct of the election.
"""'"
4
//PC. ~
. 2.
3.
4.
5.
6.
7.
8.
9.
PREPARED BY:
.
Cause to be printed the requisite number of official ballots, tally sheets and other necessary
forms.
Furnish and address official ballots for the qualified electors of the Community Facilities
District.
Cause the official ballots to be mailed and/or delivered, as required by law.
Receive the returns of the election and supplies.
Son and assemble the election material and supplies in preparation for the canvassing of the
returns.
Canvass the returns of the election.
Furnish a tabulation of the number of votes given in the election.
Conduct aild handle all other matters relating to the proceedings and conduct of the election
in the manner and form as required by law.
APPROVED AS TO FORM BY:
~ ~--"-
John P. Lippitt
Director of Public Works
John Kaheny
City Attorney
H:\HOME\E."\Gr/liEER\U.NDDEV\OT A YRNOi\CFD9'7- -I.DOC
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5
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Community Facility District No 97-1
July 1,1998
Page 1
Special Tax Re;:l::m
"/"l,"
EXHIBIT r
"""
Rate and Method of Apportionment of Special Taxes
ANNUAL TAX
A Special Tax shall be levied annually on land within Community Facilities District No, 97-
1 (Open Space Maintenance District) of the City of Chula Vista (the "District"), and
collected according to the Special Tax Liability determined by the City of Chula Vista (the
"City") through the application of the following procedures All of the property within the
District, unless otherwise exempted by law or the express provisions of the rate and
method of apportionment expressed below, shall be taxed to the extent and in the manner
provided below.
All Parcels within the District are assigned to Special Tax Area A. In addition, certain
Parcels are also assigned to Special Tax Area B based upon their location. A map of the
Special Tax Areas.is included as Exhibit B. The Special Tax which shall be levied upon
each Parcel shall be the aggregate sum of the Special Tax for each Special Tax Area
within which the Parcel is located.
All Special Taxes applicable to Parcels shall be collected in the same manner and at the
same time as ordinary ad valorem property taxes, and the SpeCial Taxes so levied will be """""
subject to the same penalties and procedures, sale and lien priority in case of delinquency
as is provided for ad valorem taxes.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the
Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such
Assessor's maps, the area as shown on a current recorded subdivision map, parcel map,
record of surveyor other recorded document creating or describing the Parcel. If the
preceding maps are not available, the area shall be determined by the City Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City in
carrying out its duties with respect to the District (including, but not limited to, the levy and
collection of the Special Taxes) including the fees and expenses of its counsel. Any fees
of the County related to the District or the collection of Special Taxes, an allocable share
of the salaries of City staff directly related thereto, any amounts paid by the City from its
general fund with respect to the District, and expenses incurred by the City in undertaking
actions to foreclose on properties for which the payment of Special Taxes is delinquent,
and all other costs and expenses of the City related to the District.
Building Square Foot or Square Footage means the square footage as shown on the
Parcel's building permit(s), excluding garages or other structures not used as living """""
space
City means the City of Chula Vista.
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Community Facility District No 97-1
July 1, 1993
Page 3
Spec;al Tax Report
~
Developed Parcel means Taxable Property for which a foundation bUilding
permit or other form of building permit has been issued as of March 1 of the
preceding Fiscal Year.
District means the Open Space Maintenance District - SPA One (Villages 1 & 5)
of the Community Facilities District No. 97-1 of the City of Chula Vista.
Facilities means those improvements defined in Part II of the Special Tax
Report dated July 1, 1998 for Community Facilities District No. 97-1 of the City
of Chula Vista.
Fiscal Year means the period starting on July 1 and ending the following June
30.
Maximum Special Tax means the maximum special tax that can be levied within
CFD No. 97-1 by the City Council in any Fiscal Year for each Parcel of Taxable
Property.
Non-Residential Uses shall include all Developed Parcels which are not zoned
for Residential Uses including commercial, industrial, and community public
facility (CPF) uses. .
"""\
Operating Fund means a fund that shall be maintained for each Special Tax
Area within the District for any Fiscal Year to pay for the actual costs of
. maintenance, repair, and replacement of the Facilities, and the Administrative
Expenses.
Operating Fund Balance means the amount of funds in the Operating Fund at
the end of the preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount for each
Special Tax Area equal to the budgeted costs of the maintenance, repair and
replacement of the Facilities which have been accepted and maintained by the
District or are reasonably expected to be accepted and maintained by the
District during the current Fiscal Year plus the budgeted Administrative
Expenses of the District for the current Fiscal Year in which Special Taxes are
levied.
Parcel means any San Diego County Assessor's Parcel or portion thereof that is
within the boundaries of the District designated on a map of the San Diego .......,
County Assessor and which has been assigned a discrete identifying number on
the equalized tax rolls of the County
/~e-r?'
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.
Community Facility Distnct No 97-1
July 1, 1998
Page 4
Spe::,ai Tax Repo~
Reserve Fund means a fund that shall be maintained for each Spe::ial Tax Area
to provide necessary cash flow for operations and maintenance for the first six
months of each Fiscal Year, working capital to cover maintenance and repair
cost overruns and delinquencies that may arise in connection with the collection
of Special Taxes and a reasonable buffer against large variations in annual
special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the
end of the preceding Fiscal Year.
Reserve Fund Requirement means the required balance in the Reserve Fund
equal to up to 100% of the Operating Fund Requirement.
Residential Uses shall include those residential uses as permitted in the City
zoning ordinance.
Special Tax means the special tax or special taxes actually levied within CFD
No. 97-1. ' .,
.
Special Tax Area means one of the two specific areas compnslng specific
Parcels as sho,wn' in Exhibit B of the Special Tax Report dated July 1, 1998 for
Community Facilities District No, 97-1 of the City of Chula Vista.
Special Tax Liability for any Fiscal Year is an amount determined for each
Special Tax Area sufficient to pay the costs of the District, including: (i) the
amount required to be deposited into the Operating Fund to meet the Operating
Fund Requirement, less the Operating Fund Balance, and (ii) the total amount
required to be deposited into the Reserve Fund if any, to meet the Reserve Fund
Requirement, less the Reserve Fund Balance.
Taxable Property is all real property or Parcels within the boundaries of the
District which are not exempt from the Special Tax pursuant to law, or which are
not classified or assigned to the Exempt Category as defined herein.
Cateaories of Special Taxes
Residential Category:
The residential category includes each Developed Parcel within the District
which is zoned for Residential Uses by the City ("Residential Category"),
.
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'I'
Community Facility District No. 97-1
July 1, 1998
Page 5
SpeCial Tax Repart
'""'"
. The Maximum Special Tax that may be levied Within Special Tax Area A for
Fiscal Year 1998/99 on each Developed Parcel assigned to the Residential
Category shall be $0.0844 per Building Square Foot.
· The Maximum Special Tax that may be levied within Special Tax Area B for
the Fiscal Year 1998/1999 on each Developed Parcel assigned to the
Residential Category shall be $0.1977 per Building Square Foot.
Said Maximum Special Tax Rates shall be increased or decreased each Fiscal
Year thereafter by a factor which shall be the lesser of the annual percentage
change in the January to January San Diego Metropolitan Area All Urban
Consumer Price Index (All Items) or the annual percentage change in the
estimated California Fourth Quarter Per Capita Personal Income as contained in
the Governor's budget published every January.
Non-Residential Category
The non-residential category includes all Developed Parcels in the District which
are not zoned by the City for Residential Uses ("Non-Residential Category").
· The Maximum Special Tax that may be levied within Special Tax Area A for
the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non-
Residential Category shall be $1,143 per Acre (said amour'lt to be levied pro
rata for any portion of an Acre).
~
. The Maximum Special Tax that may be levied within Special Tax Area B for
the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non-
Residential Category shall be $2,538 per Acre (said amount to be levied pro
rata for any portion of an Acre).
Said Maximum Special Tax rates shall be increased or decreased each Fiscal
Year thereafter by a factor which shall be the lesser of the annual percentage
change in the January to January San Diego Metropolitan Area All Urban
Consumer Price Index (All Items) or the annual percentage change in the
estimated California Fourth Quarter Per Capita Personal Income as contained in
the Governor's budget published every January.
Exempt Category
The exempt category includes each property owned by, conveyed or irrevocably
offered for dedication to a public agency, land which is in the public right-of-way,
unmanned utility easements which make utilization for other than the purpose -.....
M}$proJe2ti:;nUlaV'.sta';i., rp: 00::
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e
Community Facility District No 97-1
July 1, 1998
Page 6 '
Speclai Tax RepClri
set forth in the easement impractical, common areas, private streets and parks
and open space lots ("Exempt Category")
Vacant land Category
The vacant land category includes each Parcel of Taxable Property assigned to
the District not subject to a Special Tax under any other category described
above ("Vacant Land Category").
The Maximum Special Tax which may be levied on each Parcel within the
Vacant Land Category for Fiscal Year 1998/99 shall be the rates set forth in
Table 1 below (said amount to be levied pro rata for any portion of an Acre)
Said Maximum Special Tax shall be increased or decreased each Fiscal Year
thereafter by a factor which shall be the lesser of the annual percentage change
in the January to January San Diego Metropolitan Area All Urban Consumer
Price Index (All Items) or the annual percentage change in the estimated
California Fourth Quarter Per Capita Personal Income as contained in the
Governor's budget published every January.
e
TABLE 1
Vacant land Category
Maximum Special Tax Rate per Acre.
Special Tax Area
Special Tax Area A
Special Tax Area B
Maximum
Special Tax Rate
$1,293/Acre
$2,870/Acre
Assianment to Cateaories of Special Taxes
On or about July 1 of each year (but in any event in sufficient time to include the
levy of the Special Taxes on the County's secured tax roll) the City shall assign
each Parcel within the District to the Residential Category, Non-Residential
Category, Exempt Category, or Vacant Land Category, Parcels subject to levy
shall be determined based upon the records of the San Diego County Assessor
Levv and Apoortionment of Soecial Taxes
e
The City shall determine the Special Tax Liability of each Special Tax Area in
each Fiscal Year on or about every July 1 (but in any event in sufficient time to
include the levy of the Special Taxes on the County's secured tax roll). Special
Taxes shall then be levied on each Parcel assigned to the Residenti.al Category,
rJ,:,'Spro!e:tlchUlavls,a,'9i'.1 rpt.Ooc
/ ~{! - II
Community Facility District No 97-1
July 1, 1998
Page 7
Special Tax Report
"""\
Non-Residential Category, and Vacant Land Category within each Special Tax
Area in the following order of priOrity
Step 1: Determine the maximum revenue which could be generated in each
Special Tax Area by multiplying the total Building Square Footage of all
Developed Parcels assigned to the Residential Category in each
Special Tax Area by the Maximum Special Tax per Building Square Foot
and adding to that the maximum Special Tax revenue which could be
generated by multiplying the total Acreage of all Developed Parcels
assigned to the Non-Residential Category in each Special Tax Area by
the Maximum Special Tax per Acre.
Step 2: If the total Special Tax revenue as calculated in Step 1 for the Special
Tax Area is greater than the Special Tax Liability of such Special Tax
Area, reduce the Special Tax for each Parcel proportionately so that the
Special Tax levy for the Fiscal Year is equal to the Special Tax Liability
for the Fiscal Year.
Step 3: If the total Special Tax revenue as calculated in Step 1 is less than the
Special Tax Liability of such Special Tax Area, a Special Tax shall be
levied upon each Parcel assigned to the Vacant Land Category. The
Special Tax for the Vacant Land Category shall be calculated as the
lessor of:
~
(i) The Special Tax Liability for each Special Tax Area, less the total of
funds generated for all Parcels within that Special Tax Area under
Step 1 above, divided by the total Acres for all Parcels assigned to
the "Vacant Land Category" within that Special Tax Area.
OR,
(ii) the Maximum Special Tax rate for Parcels within that Special Tax
Area.
However, in the event it is determined that the Special Tax Liability for
Special Tax Area A includes delinquent Special Taxes from Parcels in
the Vacant Land Category from the prior Fiscal Year, the City shall
determine the amount of such delinquent Special Taxes that arose from
such Parcels and identify the owner(s) The amount of delinquent
Special Taxes, if any, that arose from each owner shall first be divided
by the total Acres owned by such owner(s), and collected from the
respective owner with the remaining portion of the Special lax Liability
not related to delinquent Special Taxes to be collected from Parcels in
"""\
M:/SprO.le:;t/chu;avls:aS:- -1 rot 00(:
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.
Community Facility District No 97-1
July 1, 1998
Page 8
Special Tax Re:>or1
the Vacant Land Category according to the procedure set forth In tn:
preceding paragraph.
Step 4: The total Special Tax for each Parcel shall be the sum of the Special
Taxes for each Special Tax Area In which a Parcel is located.
.
.
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Exhibit 3
List of Facilities
J:1: prDposed services include all dire::t, adrnini::;i.t::::.ij~e, and in::!:1entaf ann~31 ::Jsts ;
e;-:--enses relai.ed to providing ror the maim~nance and servicing of DubHc ~Clciiities inciu,.
i;;i~atiDn, cultivation, installation and reDiacement :;f Dlant m=:erial, tree trimming ;
,..----sary -"---I!~S' D=>~~-jJ~1 U!I""ITy" an" ~~,,"-m=>nt -~~-, c-nrra' ..... -"'-'II'=>- w'jJ=>-- --DJ'I'-a'
.:=-=:::. ::...;.:-'~ - , . _1::;';"'111 -', ~ _"'!""" ~ _ w._;;:'~, io.J _L. :::'_J v........:::. j _::: c:-r: ... I
mai,,~enance and servicing of parks, parkway landsc-:ping and medians, diainage faciliti
D=de:.L;an bridges and open space slopes, trails and v..-af!S, including:
5::>:daJ Tax Area A
Parkway Landscaping and Medians and Regional Trails which includes:
a) Tne fneqian along Telegraph Canyon Road b::-tween P2seo Ranchero and Ot
Lakes Road~
b) Tne median along Otay Lakes Road betwean Telegra;Jh Canyon road and ti
eQ-rem boundary of Otay Ranch SPA One'"
c) The southerly parkway along Telegiaph Canyon Road from P2seo Ranchero to Qt.
Lakes Road
d) The southerly parkway along Otay Lakes Road between Telegraph C2nyon Roo
and me eastern boundary of Otay Ranch SPA One
e) The easterly parkv.'2Y of Paseo Ranchero D:tween Telegi2Dh Canyon Road ar
Olympic Parkway
f) The northerly parkway along Olympic Parkv.'2Y between Paseo Ranchero and th
east:m boundary of Otay Ranch SPA One
g) The median along East Palorr.ar Street b:tw-':::ei1 Paseo Ranchero and Olymp
Paricv.'2Y .
. h) The median along Olympic Parkway between Paseo Ranchero and the centerline I
flltur: SR12S'"
D The median along Paseo Ranchero between Telegraph Canyon Road and Olympi
Paricv.'2Y'"
j) The median and parkways along La Media ?oad between Oray Lakes Road an
Olympic Parkway
k) Regional trails along Paseo Ram:hero, La Media, Telegraph Canyon Road, ora
Lakes Road, and Olympic Parkway
I) Tne northerly and southerly parkv.'2Y along East Palomar b::-tween Paseo Rancher,
and Olympic Paricv.'2Y_
'" S~e:;;al Tax Area A will c::mtribute
maintenance_
an ai71::>unt not t::l exceed 50 ;r.;rcent of t'1e costs 0
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a) F. ;Jr:-.-afa shE;= of the o=!e"ti:::m basin a:1:: ::hannel in t'1e Te!egoa:Jh Cany:
doaioa2= areE ~,om Paseo R.anchero to the ea:,;em boun::ary of S? A On=
b) A pr:::-oata share or the detention basin and ::hannel in the Poggi Canyon :;i:-air,age
area ;, om east of Paseo Ran::hero to the eastern boundary of S? A One
- . .' -" .. " . .
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a) 1;,= bridge between Villages One and Fwe
b) A p~-ata share of the bridge between Villages One and Two
ct A pro-iatashare-Ofme bridge b:-tween Villages rIVe and Six
5::lacial Tax Ar:2 3
Open Spa::e, Slopes, Trails and Walls whi::h include:
a) Connector trails within open space slopes along Teleg;-aph Canyon Roa~nd
Olympic Parkway which are within me public right-of-way or dedicated open _. .ce
and b"",ied within the boundariesOf'fhe Distri."i.
b) Slope areas adjacent to Telegraph Canyon Road, Paseo Ranchero, =ast Palomar
Su::=t and Olympic Parkway which are within public open space areas and located
within the boundaries of the District.
c) Penm:;er walls or fences adjacent to Teleg;-aph Canyon Road, pzseo Ranchero,
Olympic Parkway and East Palorr.ar Street whi::h are: within public open space araes
or within the pubiic right-of-way and located within the boundaries of the District.
. .
Maintenance shall..include the furnishing of services and materials fur the ordinary and usual
operaiion, maintenance and servicing of any improvement or appurtenant facilities, including
rapair, removal or replacement of all or any part of the improvement or appurtenant facilities,
providing for. the fIfe, growth, health and beauty of the landscaping, including cultivation,
ir.igEiion, trimming, spraying, fertilizing and tr:ating fur disease or injury; the removal of
. trimmings, rubbish, debris and other solid waste. Mairrenance also means the furnishing of
W::3 for the irrigation of the landscaping, the installation of planting or landscaping, or the
installation or c:mstruction of supplemental facilities incluclng any faClTIties which are necessary
or convenient fur the maintenance of eligible facilities. ~
The foregoing services shall be provided by the City, eiiher with its own forces or by contract
with third pars, Dr any combination thereof, 2S determined by the City. -.
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Exhibit 5
CFD 97-1
Annual Cost Estimate Summary
-.,
lone "F," (CT..ay ?anch ?;J:1i:m)
Water
Eie:tri::ity
Materials & SU:lpiies
Si:lpes, medians, parkvv-a)'s, tails, othei
Channels and Detention basins
?edestrain Brid.ges
City Staff Overhead
,,!;.5;sessmen: =n9ineer
SUDlDtal
75.580
1 D.599
~3,-491
275.DD2
jE.E37
~.800
22.320
,-. ,..--
::..~:)o
<:35.585
. lone "A" (McMiliin Dray Ranch ?ortion)
Vllater
3e:tricity
Materiais & Supplies
Slopes, parkways, t'aiis, other
Trees
Channels and Detention basins
?athway Lighting Maintenance
?edest;ain Bridges
City Staff Dver!Jc-ad
pssessment Engineer
Subtotal
272-49
1,482
5,190
81,031
10.980
8258
-,,-
:>-:>
2,400
12,468
8.033
157,676
""""
Total Zone "A"
O~.j~L
Zone "B" (Dray Ranch)
Vi.'a!er
EJD..::tricity
fv'.aterials & supprles
Slopo..s, traiis,basins, channels, petio..si;ain bridges and other
Trash Colle::tion
City Staff Over!Jc-ad
Subtotal
7?~.3B3
2,070
43,081
514,100
1,120
-j~5.E74
1.D2~.528
District Total
, ,t>2LI,!!!lll
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ATTACHMENT fJ- "l-
"
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 97-1
Open Space Maintenance District
(Otay Ranch - SPA One, Villages 1 & 5)
FOR THE
CITY OF CHULA VISTA
Prepared By
Berryman & Henigar
JULY 1, 1998
Project No. 14358.00
.q- / bt - ,J.rJ
'/Ii
/1/' .'
. 1,-
COMMUNITY FACILITIES DISTRICT NO. 97-1
Open Space Maintenance District
City of Chula Vista
.-.
TABLE OF CONTENTS
Introduction.................... .... .............................................................
. . . . . . . . . I
Description of District ......................... ............................................................................1
Description of Facilities ........................................... ... ........... ..... ... ........ ..... ... ........... ......3
Cost Estimate .. .................. ....... ... ....................... ............................................................ 5
Rate and Method of Apportionment............................................. ... ........ ..... ... .......... ......6
APPENDIX A - Estimated Budget Zone A McMillian
.-.
APPENDIX B - Estimated Budget Zone A Otay Ranch
APPENDIX C - Estimated Budget Zone B Otay Ranch
APPENDIX D - Calculation of Special Tax for Open Space Maintenance
.-.
g:-- / b (! -J/
.
.
.
Community Facility District No. 97-1
July 1,1998
Special Tax Report
COMMUNITY FACILITIES DISTRICT NO. 97-1
Open Space Maintenance District (Otay Ranch - SPA One)
City of Chula Vista
INTRODUCTION
The City ofChula Vista (City) has been requested to iJiitiate proceedings to establish a
Community Facilities District to include that property commonly known as "Otay Ranch
- SPA One, Villages One and Five" for the purpose of providing services of the
maintenance of medians, drainage facilities, parkways, perimeter slope areas, trails,
community gardens and pedestrian bridges which will be constructed with the Otay
Ranch - SPA One, Villages One and Five to meet increased demand upon the City as a
result ()f devel9pment within the boundaries of the proposed Community Facilities
District (District).
The proposed District is located in the City of Chula Vista, County of San Diego, State
of California, as depicted on a reduced map of the boundaries thereof, Exhibit A,
Boundary Map, included herein.
The City Council adopted a resolution entitled "Resolution of Intention to Establish a
Community Facilities District", Resolution No. declaring its intention to form the
District and ordered the preparation of a report describing the proposed services to be
financed by the District if it is formed. The proceedings are being conducted in
accordance with the provisions of the "Mello Roos Community Facilities Act of 1982,"
being Chapter 2.5, Part 1, Division 2, Title 5, commencing with Section 53311, of the
Government Code of the State of California (the Act) and the City of Chula Vista
Community Facilities District Ordinance (the "Ordinance") being Ordinance No. ,
enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of
Article XI of the Constitution of the State of California and the Charter of the City. The
report has been prepared by, or under the direction of the Director of Public Works and
other such officers responsible for the providing of the services to be financed by the
proposed District. The report has been prepared in accordance with Section 53321.5
of the Act and includes among other information:
a) A description of the maintenance services which are required to adequately
meet the needs of the District. (Part II)
b) An estimate of the fair and reasonable cost of providing maintenance
services and all other related costs as provided in Section 53345.3 of the Act.
(Part III)
/
M:JSprojectlchulavista/97 -1 rpt.doc
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"
Community Facility District No. 97-1
July 1,1998
Page 1
Special Tax Report
.--.
Part I - Description of District
The proposed District Community Facilities District No. 97-1, (Open Space Maintenance District
- Otay Ranch SPA One, Villages 1 & 5) as shown in Exhibit A and is generally described as
Tract 96-04 and 97-02, as they may be amended from time to time, and includes the following
Assessor's Parcel Numbers:
Assessor's Parcel Number Owner Acreaqe
595-070-33-00 Otay Project, LLC-OVP 15.39
641-080-01-00 (portion of)1 Otay Project, LLC-OVP 68.96
642-060-11-00 fI!IcMillLn - DA Arl!erica, 140.79
Otay Ranch LLC
642-071-01-00 DMB/AEW Land Holdings 23.09
Two/LLC-OVP
642-071-02-00 Standard Pacific Corp. -OVP 13.40
642-071-03-00 Centex Homes-OVP 10.59
642-071-04-00 DMB/AEW Land Holdings 19.69
Two/LLC-OVP
642-071-05-00 Standard Pacific Corp.-OVP 14.84 -..,
642-071-06-00 South Bay Project, LLC-OVP 6.53
642-071-07-00 Otay Project, LLC-OVP 72.48
642-071-08-00 Centex Homes-OVP 12.13
642-071-09-00 Otay Project, LLC-OVP 13.74
642-071-10-00 Otay Project, LLC-OVP 7.16
642-071-11-00 Otay Project, LLC-OVP 10.35
642-071-12-00 (portion of) 1 Otay Project, LLC-OVP 212.31
642-080-01-00 (portion of) 1 McMillin - DA America, 146.28
Otay Ranch LLC
642-090-01-00 (portion of) 1 Otay Project, LLC-OVP 37.48
642-100-01-00 (portion of)1 Mc Millan DA 4.11
643-010-03-00 Otay Project, LLC-OVP 19.92
643-010-09-00 Otay Project, LLC-OVP 51.63
643-020-10-00 (portion of) 1 Otay Project, LLC-OVP 60.07
643-020-32-00 Otay Project, LLC-OVP 99.62
TOTAL 1,060.56 Acres
-..,
1
Only the acreage of the area within the boundaries of the District is shown.
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OTAY RANCH-V,llag. 1 and 5 aon. '~'.Par1<ways. Median, and Trail,)
eFD/Open Spa", Maml.nance DIstrict
Revised 6/24/98
Preparecl by BurtDn Associates
oTA Y RANCH
COMMUNITY FACILITY DISTRICT (CFD) I OPEN SPACE (o.S.) MAINTENANCE DISTRICT COSTS (PER YEAR)
VILlAGE ONE & FIVE (ZONE 'A'I: CFD I O.S. SUMMARY
5254 WATER (and senice fees)
Water Usaze Volume Costs
CODE I-ParkwaylMedian ($2,4IO/acre less 15%)
CODE 2-Turf Areas ($2,670/acre less 15%)
17,81 ACRE $2,048,50
5.71 ACRE $2,269.50
Subtotal of Water Volume Only:
Water Meter Service Fee
Water meters
41.75 EA $650,00
Subtotal of Water Meter Service Fee:
Total of Water Fees:
.. 5251' _ ELEClRlCI1Y (utilities)
Electric MeterS
38.75
$120.00
Total Electricity:
., .53~.~ MATERIALS TO MAINTAIN BUILDINGS. SlRUClURES AND GROUNDS (irrilation system repairs)
Water Volume Subtotal x 0.12 49,442,64 0.12
Total Materials to Maintain BUl7dings. Structures and Brounds:
EACH
5262 SERVICE TO MAINTAIN BUILDINGS SlRUClURES AND GROUNDS
California Health Code certification of backflow preventers
Water meter count 38.75 EA $40.00
Total Seroce to Maintain Buildings. Structures and Brounds:
'.... 5298 'C. OTHER CONTRAC1UA1. SERVICES
~-_.~~ - ----
Landscape Maintenance Costs
CODE 1: Ornamental & High Maintenance Landscape Areas
CODE 2: Lawn Areas
17,81 $5,750,00
5.71 $17.140,00
Subtotal Contractor Landscape Maintenance Costs:
MisceDaneous Landscape Maintenance Costs
Trail Maintenance
Wall Maintenance
E1SR Emergency Irrigation System Repairs
Fire Clearances
Revegetation
19,850.00 LF,
nla
nla
nla
Subtotal Misc. Landscape Maintenance Costs:
Miscellaneous Maintenance Costs
Pedestrian Bridge
Pedestrian light
Tree Trimming
Telegraph Channel
Telegraph Detention Basin
Poggi Channel
Poggi Detention Basin
Subtotal Misc. Maintenance Costs:
Misc. Landscape Maintenance Costs:
/6C?-Q2-7
c:<:5
96.033
Pnnt Oat., 7/15/98
Pag., I oj 8
$36,483.79
$12,958,85
$49,442.64
$27,137 .50
$27.137.50
$76.580.14
$10,599.27
$10.599.27
$5,933.12
$5,933.12
$1,550.00
$1.550,00
$102,407.50
$97,869.40
$200,276.90
$13,454.33
$0.00
$3,460.98
$0.00
$0.00
$16,915,31
$4,800.00
$10,350.00
$44,130,00
$3,330.21
$9,904,20
$3,791.26
$5,141.57
$81,447,24
$298,639.45
OTAY RlJeH--VIJla2f J anl:l5 (lon~ '~'..partways, Medians and Trails)
CFD/O~r: Space Mamtenance Dlstnct
ReVlsel! 6/24/98
Prepared 11f Burton Associates
%.033
Pnnt Oat" 71J519B
Pag" 2 of B
5351 LANDSCAPE SUPP1I6
(Plant material for revegetation of bare areas or enhanced supplemental plantings. Averages 3% of the
landscape maintenance contract cost)
-,
$200.276.90 $0.03
Subtotal landscape Supplies:
$6.008.31
$6.008.31
5253 TRASH COllECTION UII DISPOSAl.
(40 cubic yard roll off dumpsters to facilitate fire clearances, trail clearances. general large scale clean up
projects. Averages one dumpster per every 7 non-irrigated acres of slope area.)
CODE 4 +COOE 5 (0.00+0.00) = 0.00 acresn 0.00 EA $280.00 $0.00
Subtotal Trash Collection and Disposal: $0.00
SRAND SUBTOTAl OF AU THE ABOVE LINE ITEMS:
$399,310.29
. '- 520e. PROFESSIONAl. SERYICfS .
(outside (the City) consultant services, historically used by the assessment engineer for the spread of assessments.
The services of other experts typically outside the realm of routing landscape maintenance).
N/A $0.00 $0.00
Subtotal Professional Services: $0.00
:~I~ CITYSTAFfSERVlC6
(City overhead for staff services).
The services of other experts typically outside the realm of routing landscape maintenance).
$23,290.00
Sltbtotal City Staff ServicllS:
SRANO SUBTOTAl OF AU THE ABOVE LINE ITEMS:
$399,310.29
~
$23,290.00
$23,290.00
Engineering mal rate-lIdistrictlyear)
Management Information Systems (Rat rale- I/districtiyear)
0.50
$16,056.06
$60.00
Total City Staff Services:
$16,056.06
$30.00
$39,376.06
GRANO TOTAl-VILlAGE ONE & FIVE CFD IO.S. (ZONE 'A') MAlI1ID1AHCE COSTS (PER YEAR>:I $438,686.35 I
..........
'?- (; /6C!'-.;-<8'
DTAY RAJCH--Villagt 1 and 5 (lone 'A'.Parkway:;., Medians and TraIls) 96.033
CFD/Dt>ol1 Space Ma'"tenance Dlstric1 PnOl Oat' )1J519E
Revis..: 6/24/98 f'age: 3 of B
PrepaT!(j by Burton Associat!S
~ VILLAGE ONE AND FIVE (ZONE 'A'): CFO I O.S.landscape Maintenance
5254 WATER (and service fees)
Water Volume Costs Quantity Unit CDS! Total
VILLAGE ONE-lONE :4' (PARKWAYS & MEDIANS)
COOE 1: Ornamental and high maintenance landscape areas
Telegraph Canyon Road
Ranch Entry (southeast comer) 0.96 ACRE $2.048.50 $1.966.56
Parkway (south side street only) 2.30 ACRE $2.048.50 $4.711.55
Median (50% of planting area only) 1.10 ACRE $2.048.50 $2.253.35
Ranch Entry (Tree orchard-Southeast comer) 0.46 ACRE $2.048.50 1942.31
Paseo Ranchero:
Parkway (east side of street only) 0.94 ACRE $2.048.50 $1.925.59
Median (50% of planting area only) 0.32 ACRE $2.048.50 $655.52
Village Entry (Tree orchard-Southeast & Northeast). 1.40 ACRE $2.048.50 $2.867.90
East Palomar Street:
Median 4.00 ACRE $2.048.50 $8.194.00
Olympic Parkway
Parkway (north side of street only) 1.50 ACRE $2.048.50 $3.072.75
Median (50% of planting area only) 0.70 ACRE $2.048.50 $1.433.95
VILLAGE FIVE-lONE 'A' (PARKWAYS & MEDIANS)
COOE 1: Ornamental and high maintenance landscape areas
Otay Lakes Road:
.r" Parkway (south side street only) 0.80 ACRE $2.048.50 $1,638.80
Median (50% of planting area only) 0.37 ACRE $2,048.50 $757.95
Olympic Parkway:
Parkway (north side of street only) 0.94 ACRE $2,048.50 $1.925.59
Median (50% of planting area only) 0.72 ACRE $2,048.50 $1,474.92
Village Entry (Tree orchard-Northwest & Northeast comer) 1.30 ACRE $2.048.50 $2.663.05
CODE I--Subtotal Parkway/Median: 17.81 ACRE $2.048.50 $36.483.79
VILLAGE ONE-lONE :4' (PARKWAYS & MEDIANS)
COOE 2: Turf areas
East Palomar Street:
Median 2.00 ACRE $2,269.50 $4.539.00
Parkway 2.76 ACRE $2,269.50 $6,263.82
VILLAGE FIVE-loNE:4' (PARKWAYS & MEDIANS)
East Palomar Street:
Median 0.40 ACRE $2.269.50 $907.80
Parkways 0.55 ACRE $2,269.50 $1.248.23
CODE 2-Subtotal Turf: 5.71 ACRE $2,269.50 $12,958.85
TOTAl WATER VOLUME COSTS $49,442.64
~
-9:(
/6 c-;:<?
OTAY RANCH-Vlllag, J and 51Zo", 'A'.Parl<ways, Medians and TrailS! 95.033
efO/Open Space Mamtenance O1stnc1 Pnnt Date, 7I1om
RevISed 5/24198 Page, 4 of 8
Prepared by Bunon Associates
.-.
WATER METER SERVICE FEES (Fixed Costs)
-
VILLASE ONE-lONE~' (PARKWAYS & MEDIANS)
Telegraph Canyon Road - Paseo Ranchero to Villafe One Subdividision Boundary
Parkway Water Meter Service Fee 1.00 EACH $650.00 $650.00
Median Water Meter Service Fee (1/2 of existing meters) 2.00 EACH $650.00 $1.300.00
Paseo Ranchero - Telegraph Canyon Rd. to E. Palomar St
Parkway Water Meter Service Fee 0.25 EACH $650.00 $162.50
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
Paseo Ranchero - E. Palomar st to OIypic Parkway
Parkway Water Meter Service Fee 0.50 EACH $650.00 $325.00
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar st - Paseo Ranchero to Santa Helena
Median Water Meter Service Fee 4.00 EACH $650.00 $2,600.00
E. Palomar st - Santa Helena to Bradbury
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar St - Bradbury to Filmore
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar St - Filmore to Belmont
Median Water Meter Service Fee 1.00 EACH $650.00 . $650.00
E. Palomar st - Belmont to Santa Alicia Or.
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar st - Santa Alicia Dr. to Santa Madera Dr.
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar st - Santa Madera Dr. to Santa Flora Dr.
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar st - Santa Flora Dr. to Santa Delfin Ave.
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
E. Palomar st . Parkways (North and South) 8.00 EACH $650.00 $5,200.00
Olympic Parkway - Paseo Ranchero to Villafe One Subdivision Boundary
Parkway Water Meter Service Fee (south edge) 0.50 EACH $650.00 $325.00
Parkway Water Meter Service Fee (north edge) 0.50 EACH $650.00 $325.00
Median Water Meter Service Fee 1.00 EACH $650.00 $650.00
VlLLASE FIVE-lONE ~. (PARKWAYS & MEDIANS)
Olay Lakes Road - West SUbllivision Boundary to East Subdivision Boundary
Median Water Meter Service Fee (1/2 of existing) 2.00 EACH $650.00 $1,300.00
Parkway Water Meter Service Fee 0.50 EACH $650.00 $325.00
E. Palomar St.- West Subdivision Boundary to East Subdivision Boundary
Median Water Meter Service Fee 2.00 EACH $650.00 $1,300.00
Parkway Water Meter Service Fee 8.00 EACH $650.00 $5,200.00
Olympic Parkway - West Subdivision Boundary
to East Subdivision Boundary
Median Water Meter Service Fee 2.00 EACH $650.00 $1,300.00
Parkway Water Meter Service Fee 0.50 EACH $650.00 $325.00
TOTAL WATER METER SERVICE FEES: 41.75 meters $27,137.50
TOTAL WATER VOLUME COSTS & METER SERVICE FEES, $76,580.14
-cQ~' /bt:! -~CJ
OTAY RANCH-VIllage 1 and 5 (lone '~'-Parkways. MedIans and Trails) 96.033
CFDlOpeJ1 Spa" Mamlenan" Olslnct rnn: Dale, 7115/98
Revisell 6/24198 rage 5 of 8
Prepared by Burton Associates
.-. 5251 ElECTRIC ITY (utilities)
VlllASE oNE-IoNE:4' (PARKWAYS & MEDIANS)
TeleEf1lph Canyon Road - Paseo Ranchero to Village One Subdividision Boundary
Parkway Waler Meier Service Fee 1.00 EACH $120.00 S120.00
Median Waler Meier Service Fee (1/2 of exisling melers) 2.00 EACH $120 00 S240.00
Paseo Ranchero - Telegraph Canyon Rd. to E. Palomar Sl
Parkway Waler Meier Service Fee 0.25 EACH $120.00 S30.00
Median Meier Service Fee 1.00 EACH $120.00 $120.00
Paseo Ranchero - E. Palomar Sl to E. OIypic Parkway
Parkway Waler Meier Service Fee 0.50 EACH $120.00 S60.00
Median Meier Service Fee 1.00 EACH SI20.00 S120.00
E. Palomar Sl - Paseo Ranchero to Santa Helena
Median Meier Service Fee 4.00 EACH $120.00 $480.00
E. Palomar Sl - Santa Helena to Bradbury -
''Median MeleTServite Fee ' 1.00 EACH $120.00 S120.00
E. Palomar Sl - Bradbury to Filmore
Median Waler Meier Service Fee 1.00 EACH $120.00 $120.00
E. Palomar St - Filmore to Belmont
Median Waler Meier Service Fee 1.00 EACH $120.00 S120.00
E. Palomar St - Belmont to Santa Alicia Dr.
Median Waler Meier Service Fee 1.00 EACH $120.00 $120.00
.-. E. Palomar St - Santa Alicia Dr. to Santa Madera Dr.
Median Waler Meier Service Fee 1.00 EACH $120.00 $120.00
E. Palomar St - Santa Madera Dr. to Santa Flora Dr.
Median Waler Meier Service Fee 1.00 EACH $120.00 $120.00
E. Palomar St - Santa Flora Dr. to Santa Dellin Ave.
Median Water Meier Service Fee 1.00 EACH $120.00 $120.00
E. Palomar St - Parkways (North and South) 8.00 EACH $120.00 $960.00
E. Palomar St
Pedestrian Lights (eleclricty cost) 2.00 EACH $2,103.09 $4,206.18
Monarche Drive
Pedeslrian lights (electricly cost) 1.00 EACH $2,103.09 $2,103.09
Olympic Parkway - Paseo Ranchero to Village One Subdivision Boundary
Parkway Waler Meter Service Fee (south edge) 0.50 EACH $120.00 $60.00
Parkway Waler Meier Service Fee (north edge) 0.50 EACH $120.00 $60.00
Median Water Meter Service Fee 1.00 EACH $120.00 $120.00
VlllASE FIVE-IoNE:4' (PARKWAYS & MEDIANS)
Olay lakes Road - West Subdivision Boundary to East Subdivision Boundary
Median Water Meier Service Fee (1/2 of existing) 2.00 EACH $120.00 $240.00
Parkway Water Meter Service Fee 0.50 EACH $120.00 $60.00
E. Palomar St - West Subdivision Boundary to East Subdivision Boundary
Median Waler l4eIer Service Fee 2.00 EACH $120.00 $240.00
Parkway Waler Meier Service Fee 2.00 EACH $120.00 $240.00
,,-...
. Olympic Parkway - West Subdivision Boundary to East Subdivision Boundary
Median Water Meier Service Fee 2.00 EACH $120.00 $240.00
Parkway Waler Meter Service Fee 0.50 EACH $120.00 $60.00
TOTAL ElECTRICITY FEES 38.75 meters $10,599.27
-27- /6C- ::3-/
OlAY RAHCH-Vlliage 1 ant! S (Zone '/..'-Pai'kway:;, Medians and Trails)
CFDIOP!fl Space Mamtenam:e Dlstnct
R'VlSe<I 6/W98
Prepared by Burton Assoclat~
%.033
Pllnt Oat" 7!l5198
Page, 6 of 8
.-
5362 MATERIAlS TO MAINTAIN BUILDINGS. STRUCTURES AIID GRDUNDS (Irri~alion system repair)
Water Volume Subtotal x 0.12 49,442.64 $0.12
Total Materials to Maintain Buildints. Structures and Grounds:
-
$5.933.12
$5.933.12
5262 SERVICE TO MAINTAIN BUILDINGS STRUCTURES AND GROUNDS
Caliiomia Heatth Code certification of backflow preventers
Water meter count 38.75 EA $40.00
Total Service to Maintain Bui/dints. StructJJres and Grounds:
$1.550.00
$1.550.00
- 5298 OTHER CONTRACTUAl SERVICES
(Landscape maintenace costs, emergency irrigation system repairs. county probation department inmate work crews
for revegetation projects, fire clearances. trail and wall maintenance)
EISR Emergency Irrigation System Repairs
Water volume costs x .07 49.442.64 0.07 $3,460.98
Sub/oul EISR Emergency Irrigation System Repairs:
VILLAGE ONE-lONE 'A' (PARKWAYS & MEDIANS)
CODE 1: Ornamental and hi~ maintenance landscape areas
Tele~aph Canyon Road
Ranch Entry (southeast comer)
Parkway (Slluth side street only)
Median (50% of planting area only)
Ranch Entry (Tree orchard-Southeast comer)
Paseo Ranchero:
Parkway (east side of street only)
Median (50% of planting area only)
Village Entry (Tree orchard-Southeast & Northeast)
East Palomar Street:
Median
Olympic Parkway:
Parkway (north side of street only)
Median (50% of planting area only)
VILLAGE FIVE-lONE 'A' (PARKWAYS & MEDIANS)
CODE 1: Ornamental and hi~ maintenance landscape areas
Otay Lakes Road
Parkway (Slluth side street only)
Median (50% of planting area only)
Olympic Parkway
Parkway (north side of street only)
Median (50% of planting area only)
Village Entry (Tree orchard-Northwest & Northeast comer)
Subtotal Village One & Frve Code 1:
~
$3.460.98
0.96 ACRE $5.750.00 $5.520.00
2.30 ACRE $5,750.00 $13,225.00
LIO ACRE $5.750.00 $6.325.00 -
0.46 ACRE $5.750.00 $2.645.00 -
0.94 ACRE $5.750.00 $5,405.00
0.32 ACRE $5.750.00 $1.840.00
1.40 ACRE $5,750.00 $8.050.00
4.00 ACRE $5,750.00 $23.000.00
L50 ACRE $5,750.00 $8.625.00
0.70 ACRE $5.750.00 $4.025.00
0.80 ACRE $5,750.00 $4.600.00
0.37 ACRE $5,750.00 $2.127.50
0.94 ACRE $5.750.00 $5,405.00
0.72 ACRE $5.750.00 $4,140.00
1.30 ACRE $5,750.00 $7,475.00
17.81 ACRE $102,407.50
/t::.e- 32-
OTAY RAICH--Vlila,! 1 and 5110n. 'A-Par1<waY'. flle<jIaOS and Trails) 9c.0"
CFD/O~ Space Maintenance District Print Qat!, 7I!5!9~
Revised i>!2419E Page: 707 E
Pl'!:pared by Burton Associat~
. CODE 2: lawn areas
VILlAGE ONE-lONE 'A' (PARKWAYS & MEDIANS)
East Palomar Stree~
Median 2.00 ACRE $17,140.00 $34.280.00
Parkway 2.76 ACRE $17.140.00 $47,306.40
VILlAGE FIVE-lONE ~' (PARKWAYS & MEDIANS)
East Palomar Stree~
Median 0.40 ACRE $17,140.00 $6,856.00
Parkway 0.55 ACRE $17.140.00 $9.427.00
Subtotal Village One Code 2: 5.71 ACRE $97.869.40
Subtotal Contractor Landscape Maintenance Costs: $200,276.90
VILlAGE ONE-lONE 'A' (SLOPES, TRAILS & WAllS)
Trail Maintenance
~ TelegrapfCimyon Road (fO' wide trail along channel) 6,200 LF. $0.6778 $4,202.36
Paseo Ranchero (l0' wide trail) 3,350 LF. $0.6778 $2,270.63
Olympic Parkway (l0' wide trail) 5,100 l.F. $0.6778 $3.456.78
Subtutal Village One Trail Maintenance Cos~ 14,650.00 LF. $0.6778 $9,929.77
VILlAGE FIVE-IONE~' (SLOPES, TRAILS & WALLS)
. Trail Maintenance
Telegraph Canyon Road (lO' wide trail along channel) 2,900 l.F. $0.6778 $1,965.62
Olympic Parkway (10' wide trail) 2,300 l.F. $0.6778 $1,558.94
Subtotal Village Five Trail Maintenance Cost: 5,200.00 LF. $0.6778 $3,524.56
Total Village One & Five Trail Maintenance Co~ 19,850.00 LF. $13,454.33
Wall Maintenance
Fire Clearances
Revegetation
nla
nla
nla
Subtotal Mise. Landscape Maintenance Costs:
$16,915_31
Miscellaneous Maintenance Costs
Pedestrian Bridge
Pedestrian Ught
Tree Trimming
Telegraph Channel
Telegraph Detention Basin
Poggi Channel
Poggi Detention Basin
Subtotal Misc. Maintenance Costs:
$4,800.00
$10,350,00
$44,130.00
$3,330.21
$9,90420
$3,791.26
$5,141.57
$81,447.24
.
TOTAL MISC. LANDSCAPE COSTS
$298,639.45
3;-
/6{'- 3~
01AY RAH:H..Vlilag, I and 51Zo11t 'A'.Parkways, Media"' and lr,,'s)
eFO/O",," S.ace Marnt,nance Orslnc1
Revrsed 6/24/98
Prepared by Burton Associates
535] LANDSCAPE SUPPLIES
(Plant material for revegetation of bare areas Dr enhanced supplemental plantings. Averages 3% of the
landscape maintenance contract cost)
5253
$200.276.90 $0.03
Sul1total Landscape Supplies:
TRASH COllECnON AND DISPOSAl
(40 cubic yard roll off dumpsters to facilitate fire clearances, trail clearances, general large scale clean up
projects. Averages one dumpster per every 7 non-irrigated acres of slope area.)
CODE 4 +CODE 5 (O.OG+O.OOl = 0.00 acres/7 0.00 EA $280.00
Subtotal Trash Collection and Disposal:
520]
PRDFESSIONAl SERVICES
(outside (the City) consultant services. historically used by the assessment engineer for the spread of assessments.
The services of other experts typically outside the realm of routing landscape maintenance).
N1A $0.00
Subtotal Professional Services:
SRAND SUBTOTAl OF AU THE ABOVE LINE ITEMS:
529]
CITY STAFF SERVICES
(City overhead for staff services).
The services of other experts typically outside the realm of routing landscape maintenance).
$23.290.00
Subtotal City Staff Services:
Engineering (Flat rate-lIdistricVyear)
Management Infurmation Systems (Flat rate-lIdistricVyear)
0.50
$16.056.06
$60.00
Total City Staff Services:
~6.033
Print Oat" 7115/98
Pag, ,of 8
-,
$6.008.3]
$6.008.31
$0.00
$0.00
$0.00
$0.00
$399.310.29
$23.290.00
$23,290.00 ~
$16.056.06
$30.00
$39.376.06
GRAND TOTAl-VILLAGE ONE I FIVE (ZONE~? CFD/O.S. MAINTENANCE COSTS (PER YEAR): I $438.686.351
g-z: /6 (' - .J.tf
-,
.
.
.
DTAY RANCH"V,llage 1 ana 5 Ilone 'e'.Slopes. Trail, and Wallsl
CfD/Dpen Space Maintenance Distlct
Rewec 5/'0/98
PIellOrelI by Bu~on AsSOCIal!s
5351 LANDSCAPE SUPPUES
(Plant material for revegetation of bare areas Dr enhanced supplemental plantings. Averages 3% of the
landscape maintenance contract cost)
$570.100.80 $0.03
SuMotal Landscape Supplies:
5253 11lASH COUECTIDN AND DISPOSAl.
.-..
(40 cubic yard roll off dumpsters to facilitate fire clearances. trail clearances. general large scale clean up
projects. Averages one dumpster per every 7 non-irrigated acres of slope area.)
CODE 4 +CODE 5 (0.00+25.20) = 25.20 acrest7 4.00 EA $280.00
Subtotal Trash Collection and Disposal:
SRANO SUBTOTAL OF AU THE ABOVE LINE ITEMS:
96.033
P,mt Date, 7/15198
Page, 2 of 7
$17.103.02
$17.103.02
$1.120.00
$1.120.00
$888,754.14
F 52ll1' PROFESSIONAL SERVICES
-.....- ---
(outside (the City) consultant services. historically used by the assessment engineer for the spread of assessments.
The services of other experts typically outside the realm of routing landscape maintenance).
NlA $0.00 $0.00
SuMotal Professional Services: $0.00
SRAND SUBTOTAL OF AU THE ABOVE LINE ITEMS:
5291; CITY STAFF SERVICES
(City overhead for staff services).
The services of other experts typically outside the realm of routing landscape maintenance).
$135,844.00
Subtotal City Staff Services:
Engineering (flat rate-1/districtlyear)
Management Information Systems (Flat rate-1/districtlyear)
nla
0.50
$0.00
$60.00
Total City Staff Services:
$888,754.14
$135,844.00
$135,844.00
$0.00
$30.00
$135.874.00
GRAND TOTAl-VILlAGE ONE" FIVE (lONE '81 CFO I O.S. MAlNrn1A1fCE COSTS (PER YEAR):I $1.024.628.14 I
/6{'- 3~
DlAY R'''O..Vrllal' 1 and 5 CZ"", 'e'.Slop", irails and Walls) %.03':
CFD/Ot>er. S..ct Marnl,nalJCf Drllre! rnm Dat, ) 11519!
R""sed "'"'!Ie raid of)
Prepar!t! by Burton Associates
VIllAGE ONE AND FIVE (ZONE '8'): CFD I 0.5. Landscape Maintenance ~
5254 WATER (and service fees)
Water Volume Costs Quantity unn Cost Total
VlUASE ONE-lONE '8' (SLOPES, TRAILS & WALLS)
CODE 3: Irrigated and erosion control slopes
Slopes (2:1 slope factor included) 102.00 ACRE $1.649.00 $168.198.00
VlUASE FIVE-lONE '8' (SLOPES, TRAILS & WALLS)
CODE 3: Irrigated and erosion control slopes
Slopes (2.5:1 slope factor included) 29.28 ACRE $1,649.00 $48,282.72
CODE 3--Subtotal Slopes: 131.28 ACRE $1,649.00 $216,480.72
TOTAL WATER VOLUME COSTS $216,480.72
WATER METER SERVICE FEES lFIxed Costs)
VlUASE ONE-lONE '8' (SLOPES, TRAILS & WALLS)
Telegraph Canyon Road - Paseo Ranchero to Village One Subdividision Boundary
Slope Water Meter Service Fee 5.00 EACH $650.00 $3,250.00
Paseo Ranchero - Telegraph Canyon Rd. to E. Palomar Sl
Slope Water Meter Service Fee 0.75 EACH $650.00 $487.50
Paseo Ranchero - E. Palomar Sl to E. Orange Ave.
Slope Water Meter Service Fee 1.50 EACH $650.00 $975.00 ~
Olympic Parkway. Paseo Ranchero to Village One Subdivision Boundary
Slope Water Meter Service Fee (south edge) 1.50 EACH $650.00 $975.00
Slope Water Meter Service Fee (north edge) 4.50 EACH $650.00 $2,925.00
VlUASE FIVE-lONE '8' (SLOPES, TRAILS & WALLS)
Olay Lakes Road - West Subdivision Boundary to East Subdivision Boundary
Slope Water Meter Service Fee 2.50 EACH
Olympic Parkway - West Subdivision Boundary to East SubalVision Boundary
Slope Water Meter Service Fee 1.50 EACH
TOTAL WATER METER SERVlCfFEES: 17.25 meters
$650.00
$1,625.00
$650.00
$975.00
$11.212.50
TOTAL WATER VOLUME COSTS & METER SERVICE FEES:
$227,69322
-
/6(7. 3~
OTAY RAN:I<-.Village 1 and 51Zone 'B'.Slopes, Trails and Walls)
CfO/Open Space Maintenance Disbct
Revised 51[,:'98
Prepared bry Burton Associates
95,033
rmr. Date, 11l5!9!
rage, 4 o! I
. 5251 ElECTRICITY (utilities)
VIllAGE ONE-lONE '8' (SLOPES, TRAILS & WALLS)
Telegraph Canyon Road - Paseo Ranchero 10 Village One Subdividision Boundary
Slope Water Meter Service Fee 5,00 EACH $120.00 $600.00
Paseo Ranchero - Telegraph Canyon Rd. 10 E. Palomar St
Slope Water Meter Service Fee 0.75 EACH $120.00 $90.00
Paseo Ranchero - E. Palomar St to E. Orange Ave.
Slope Water Meter Service Fee 1.50 EACH $120.00 $180,00
Olympic Parkway - Paseo Ranchero 10 Village One Subdivision Boundary
Slope Water Meter Service Fee (south edge) 1.50 EACH $120.00 $180.00
Slope Water Meter Service Fee (north edge) 4.50 EACH $120.00 $540.00
VIllAGE FIVE-lONE 'B' (SLOPES, TRAILS & WALLS)
Olay Lakes Road - Wesl Subdivision Boundary to East Subdivision Boundary
Slope Water Meter Service Fee 2.50 EACH
Olympic Parkway - West Subdivision Boundary to East Subdivision Boundary
Slope Water Meter Service Fee 1.50 EACH
$120.00
$300.00
$120.00
$180.00
$2,070.00
TOTAL ELECTRICITY FEES
17.25
melers
.
5362 . MATERIALS TO MAINTAIN BUILDINGS, STRUCTURES AII0 GROUNOS (Irrigation system repair) (VILlAGE ONE & FIVE)
Water Volume Subtotal x 0.12 216,480.72 $0.12 $25,977.69
Total Materials to Maintain Buildings, Structures and Grounds: $25,977.69
F 52~. SERVICE TO MAINTAIN BUILDINGS STRUCTURES AIID GROUNDS (VILlAGE ONE & FIVE)
California Health Code certification of backflow preventers
Water meter count 1725 EA $40.00
Total Serrice to Maintain Buildings, Strucllres and Grounds:
$690.00
$690.00
.
/6e~ 37
'\
.
OTAY RAlCH--Vlllage I and 5 (ZonE 'a-Slopes, TraIls and Wallsl
CFD/Operl Space Mamtenance Oishct
RevIsed 51619E
Prepared by Burton Associates
96.033
Print Date, 7115/98
Page,50f7
5298
OTHER COKTRACTUAl SERVICES (VILlAGE ONE & FIVE)
(Landscape maintenace costs, emergency irrigation system repairs, county probation department inmate work crews
for revegetation projects, fire clearances, trail and wall maintenance)
EISR Emergency Irrigation System Repairs
Water volume costs x .07
--.
216,480.72 0.07
Subtotal EISR Emergency Irrigation System Repairs:
$15.153.65
$15,/53.65
VILLAGE ONE-lONE '8' (SLOPES)
CODE 3: Irrigated and erosion control slopes
Slopes (2:1 slope factor included) 102.00 ACRE $4,310.00 $439,620.00
VILLAGE FIVE-lONE '8' (SLOPES)
CODE 3: Irrigated and erosion control slopes
Slopes (2.5:1 slope factor included) 29.28 ACRE $4.310.00 $126.196.80
Subtotal Village One & Five Code 3: 131.28 ACRE $565,816.80
VILLAGE ONE-lONE '8' (SLOPES)
CODE 5: Undisturbed nalive habitat
Slopes (2:1 slope factor included) 25,20 ACRE $170.00 $4,284.00
Subtotal Village One Code 5: 25.20 ACRE $4,284.00
Subtotal Village One & Five Contractor Landscape Maintenance Costs: $570,/00.80
-"
VILLAGE ONE-lONE '8' (SLOPES, TRAILS & WALLS)
Trail Maintenance
Telegraph Canyon Road (6' wide connection trails on slope) 900 LF. $0.4067 $366.03
Paseo Ranchero (6' wide connection trails on slope) 0 LF. $0.4067 $0.00
Olympic Parkway (6' wide connection trails on slope) 1,200 LF. $0.4067 $488.04
Subtotal Village One Trail Maintenance Cost: 2.100.00 LF. $0.4067 $854.07
VILLAGE FIVE-lONE '8' (SLOPES, TRAILS & WALLS)
Trail Maintenance
Telegraph Canyon Road (6' wide connection trails on slope) 550 LF. $0.4067 $223.69
Olympic Parkway (6' wide connection trails on slope) 0 LF. $0.4067 $0.00
Subtotal Village five hail Maintenance Cost: 550.00 LF. $0.4067 $223.69
Total Village One & FlI'e Trail Maintenance Cost: 2,650.00 LF. $1,077.76
.-.,
Ibc-31
OTAY RANCH--Villag, 1 and 5llon, 'B'-Slopes.Trails and Walls) Si.u33
CFDlOpen Space Mamtenance DJstlct Pnm Date: 7/l5/9E
RevISed 51D/98 Pag~ b Dn
Prepared by Burton Associates
. VIllAGE ONE-lONE '8' (SLOPES, TRAILS: WAllS)
Wall Maintenance
Perimeter Wall 11,170 LF. $0.69 $7.707.30
Theme Wall 5,300 LF. $0.69 $3,657.00
Subtotal Village One Wall Maintenance Cosl: 16,470.00 LF. $0.69 $11,364.30
VIllAGE FIVE-lONE '8' (SLOPES, TRAILS: WAllS)
Wan Maintenance
Perimeter Wall 13.730 LF. $0.69 $9.473.70
Subtotal Village Five Wall Maintenance Cost: 13.130.00 LF. $0.69 $9,473.70
Total Village One: Five Wall Maintenance Cost: 30,200.00 LF. $20,838.00
.
VIllAGE ONE-lONE 'B' (SLOPES)
Fire Clearances
(avg. 1 dayD acres of non-irrigated slope @ $330.00 cosVcrew day)
COOE 4 +COOE 5 (0.00+25.20) = 25.2 acres 4
Subtotal Village One Are Clearances: 4
VIllAGE FIVE-lONE 'B' (SLOPES)
Fire Clearances
(avg. 1 dayD acres of non-irrigated slope @ $330.00 cosVcrew day)
COOE 4 +CODE 5 (0.00+0.00) = 0.00 acres 0
Subtotal Village One Are Clearances: 0
Total Village One I. Fwe Fire Clearances Cost: 4
$330.00
$330.00
DAYS
DAYS
$330.00
$330.00
DAYS
DAYS
VIllAGE ONE: F1VE-ZoNE '8' (SLOPES, TRAILS I. WALLS)
Revegetation
(avg.l day/every $lK plant materal in landscape supplies section @ $330.00 cosVcrew day)
= $17,103.02 17 DAYS $330.00
Total Village One I. Fife Revegetation Cost: 17
Subtotal Misc. Landscape Maintenance Costs:
TOTAL MISC. LANDSCAPE COSTS
t':"535r-lAHOSCAPE SUPPUES MllAGE ONE & AVE)
~-.-..- .. -
(Plant material for revegetation of bare areas or enhanced supplemental plantings. Averages 3% of the
landscape maintenance contract cost)
$570,100.80 $0.03
Subtotal Landscape Supplies:
.
~,.;5253 ." TRASH COllECTION AND DISPOSAl (VIllAGE ONE & FIVE)
~..__.- (40 cubic yard roll off dumpsters to facilitate fire clearances, trail clearances, general large scale clean up
projects. Averages one dumpster per every 7 non-irrigated acres of slope area.)
CODE 4 +COOE 5 (0.00+25.20) = 25.20 acresD 4.00 EA $280.00
Subtotal Trash Collection and Disposal:
/t[?- 31
$1.320.00
$1,320.00
$0.00
$0.00
$1,320.00
$5,610.00
$5,610.00
$43,999.41
$614,100.21
$17,103.02
$17,103.02
$1,120.00
$1,120.00
.-.
APPEND 0
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Continued from 9/1/98
COUNCIL AGENDA STATEMENT
Item 17
Meeting Date 9/15/98
ITEM TITLE:
A.
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 97-2 (Preserve
Maintenance District) pursuant to the provisions of the "Mello-Roos
Community Facilities Act of 1982", for the purpose of financing certain
public services through the levy of a special tax to pay for all or a
portion of such public services and the intent to authorize a special tax
to pay for all or a portion of such public services.
B. Resolution 19159 of the City Council of the City ofChula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Special Tax Report for Community Facilities
District No. 97-2 (Preserve Maintenance District).
C. Resolution 19160 of the City Council of the City ofChula
Vista, California, forming and establishing Community Facilities
District No. 97-2 (Preserve Maintenance District) and authorizing the
submittal of levy of special taxes to the qualified electors.
SUBMITTED BY: Director of Public Works ~
REVIEWED BY: City Manager~ ~{ 8~ "\ (4/5ths Vote: Yes_NoX)
On July 28, 1998, Council approved the resolut~f intention to form Community Facilities District
No. 97-2 and set the public hearing for September I, 1998. This district will fund the perpetual
operation, maintenance and monitoring of the Otay Ranch Habitat Preserve. Tonight's action will
continue the formal proceedings leading to the establishment of Community Facilities District No. 97-2.
RECOMMENDATION: That Council:
I) Open the hearing, take testimony, close the public hearing;
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 97-2 or the owners ofland within CFD No. 97-2
3) Approve the resolution making preliminary findings, passing upon protests and
approving the CFD No. 97-2 report.
4) Approve the resolution establishing CFD No. 97-2 and Improvement Areas "A" and "B"
and submitting the levy of special taxes within each respective Improvement Area to
finance certain services to the qualified electors of such Improvement Areas.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
I ~f-!
COUNCIL AGENDA STATEMENT
I""'"
Herod
Meeting Date 9/1/98
ITEM TITLE:
I""'"
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 97-2 (preserve
Maintenance District) pursuant to the provisions of the "Mello-Roos
Community Facilities Act of 1982", for the purpose offmancing certain
public services through the levy of a special tax to pay for all or a portion
of such public services and the intent to authorize a special tax to pay for
all or a portion of such public services.
B. Resolution I ~ /5"9 of the City Council of the City of Chula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Special Tax Report for Community Facilities
District No. 97-2 (Preserve Maintenance District).
C. Resolution /9/?D of the City Council of the City ofChula
Vista, California, forming and establishing Community Facilities District
No. 97-2 (preserve Maintenance District) and authorizing the submittal
of levy of special.:ejo the qualified electors.
SUBMITTED BY: Director of Public W orles r CL ^
REVIEWED BY: City Manage~ ~ ~~ I (4/5ths Vote: Yes_No.XJ
On July 28, 1998, Council approved the resolution of intention to form Community Facilities District No.
97-2 and set the public hearing for September I, 1991l.: Thi, n;ctFiet ";Y.fnnd the. pAFfletlial ~pAl:3!i.2.n,
maintenance and monitoring of the Otay Ranch Habitat Preserve. Tonight's action will continue the
formal proceedings leading to the establIshment ot Community Facilities District No. 97.2.
A.
RECOMMENDATION: That Council:
I) Open the hearing, take testimony, close the public hearing;
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 97.2 or the owners of land within CFD No. 97-2
3) Approve the resolution making preliminary findings, passing upon protests and
approving the CFD No. 97-2 report.
4) Approve the resolution establishing CFD No. 97-2 and Improvement Areas "A" and "B"
and submitting the levy of special taxes within each respective Improvement Area to
finance certain services to the qualified electors of such Improvement Areas.
I"""- BOARDS/COMMISSIONS RECOMMEl'I'DATION: Not applicable.
DISCUSSION:
/7//-/
Page 2, Item 17
Meeting Date 9/15/98
On July 28,1998 Council declared its intention to establish Community Facilities District 97-2 (CFD
97-2) and ordered the preparation of a report describing the service which CFD 97-2 will provide and
the estimated cost. The district is consistent with the City's CFD Policy, adopted January 13, 1998 and
modified July 28, 1998. The district is also consistent with CFD Ordinance adopted April 28, 1998.
An important goal of the Otay Ranch Project is the establishment of a permanent preserve to protect
and enhance biological, paleontological, cultural and scenic resources, maintain biological diversity,
and promote the survival and recovery of native species and habitats. The management of the
preserve will be the joint responsibility of the County of San Diego and the City of Chula Vista (see
Exhibit I). Both jurisdictions will act as the Preserve Owner Manager (PaM). The areas of the
preserve which will be maintained by the proposed CFD will be dedicated incrementally as final
maps are approved.
The proposed district differs in many respects from the traditional landscaping districts within the
City. The most notable differences are that it provides for the maintenance and biota monitoring of
lands that are owned both by the City and the County and even lands that are privately owned and
outside of the City boundary. At Otay Ranch buildout, a total of 11,375 acres would be dedicated
as permanent preserve. It is anticipated that approximately 2,700 acres of the preserve would be in
the City of Chula Vista, 8,300 acres would be under County of San Diego jurisdiction, and the
remainder would be within the City of San Diego boundaries.
Community Facilities Districts will provide the necessary funding for the operation and maintenance
of public landscaping improvements by levying an annual "special tax", which will be collected from
the property owners in conjunction with the property taxes. The annual tax collection (excepting the
amount budgeted for CFD administration by the City) will be made available to the paM for
funding the maintenance and monitoring activities of the Preserve. There is no direct cost to the City
unless, after buildout, the resource agencies require a level of maintenance higher than the estimated
maximum tax. All expenses related to the district administration (including levying and collecting
the special taxes) are funded by the district.
Both the Otay Ranch Company and the McMillin Otay Ranch have requested greater accountability as
to the annual tax to be levied on developer (vacant) land and asked for greater involvement in preparing
the annual district's budgets. These issues will be addressed in an "implementation agreement" which
is anticipated to be brought to Council for consideration in the near future.
Area of Benefit
The proposed boundary of CFD No. 97-2 encompasses all the ownership of the Otay Ranch Company
and McMillin Otay Ranch within the Otay Valley Parcel (3,140 acres). It is assumed that only SPA
One, Villages 1 and 5 will be fully developed and that areas outside SPA One would remain
undeveloped. At buildout, SPA One will contain a total of 2,758 Single Family Residences, 2,300
Multifamily Residences, 7.9 acres of commercial, lOA Acres for Community Purpose Facilities
(churches, day care, etc.). The remaining parcels (outside of SPA One) have a total area of2,094 acres.
A reduced copy of the map is presented in Exhibit 2.
Description of Activities
The Resource Management Program (RMP) Phase II approved by the City and the County dictates
that the following activities must be performed to effectjxely ~anage and maintain the preserve:
17 It- iZ
Page 2, ItemE
Meeting Date 9/1198
On July 28, 1998 Council declared its intention to establish Community Facilities District 97-2 (CFD 97- e
2) and ordered the preparation of a report describing the service which CFD 97-2 will provide and the
estimated cost. The district is consistent with the City's CFD Policy, adopted January 13, 1998 and
modified July 28, 1998. The district is also consistent with CFD Ordinance adopted April 28, 1998.
An important goal of the Otay Ranch Project is the establishment of a permanent preserve to protect
and enhance biological, paleontological, cultural and scenic resources, maintain biological diversity,
and promote the survival and recovery of native species and habitats. The management of the
preserve will be the joint responsibility of the County of San Diego and the City of Chula Vista (see
Exhibit I). Both jurisdictions will act as the Preserve Owner Manager (paM). The areas of the
preserve which will be maintained by the proposed CFD will be dedicated incrementally as final
maps are approved.
The proposed district differs in many respects from the traditional landscaping districts within the
City. The most notable differences are that it provides for the maintenance and biota monitoring of
lands that are owned both by the City and the County and even lands that are privately owned and
outside of the City boundary. At Otay Ranch buildout, a total of 11,375 acres would be dedicated
as permanent preserve. It is anticipated that approximately 2,700 acres of the preserve would be in
the City of Chula Vista, 8,300 acres would be under County of San Diego jurisdiction, and the
remainder would be within the City of San Diego boundaries.
Community Facilities Districts will provide the necessary funding for the operation and maintenance
of public landscaping improvements by levying an annual "special tax", which will be collected from
the property owners in conjunction with the property taxes. The annual tax collection (excepting the
amount budgeted for CFD administration by the City) will be made available to the POM for funding
the maintenance and monitoring activities of the Preserve. There is no direct cost to the City unless,
after buildout, the resource agencies require a level of maintenance higher than the estimated
maximum tax. All expenses related to the district administration (including levying and collecting
the special taxes) are funded by the district.
-
-
Both the Otay Ranch Company and the McMillin Otay Ranch have requested greater accountability as
to the annual tax to be levied on developer (vacant) land and asked for greater involvement in preparing
the annual district's budgets. These issues will be addressed in an "implementation agreement" which
is anticipated to be brought to Council for consideration in the near future.
Area of Benefit
The proposed boundary ofCFD No. 97-2 encompasses all the ownership of the Otay Ranch Company
and McMillin Otay Ranch within the Otay Valley Parcel (3,140 acres). It is assumed that only SPA One,
Villages I and 5 will be fully developed and that areas outside SPA One would remain undeveloped. At
buildout, SPA One will contain a total of2,758 Single Family Residences, 2,300 Multifamily Residences,
7.9 acres of commercial, 10.4 Acres for Community Purpose Facilities (churches, day care, etc.). The
remaining parcels (outside of SPA One) have a total area of 2,094 acres. A reduced copy of the map
is presented in Exhibit 2.
--
Description of Activities
-
The Resource Management Program (RMP) Phase II approved by the City and the County dictates
that the following activities must be performed to effectively manage and maintain the preserve:
/7/l~z-
Page 3, Item 17
Meeting Date 9/15/98
. Imnlementation of an annual biota monitorinl1 which shall identify changes in quality and
quantity of onsite biological resources, including sensitive wildlife species, sensitive plant
species, and sensitive habitat types. CFD No. 97-2 will initially provide the funding for
performing the monitoring program over the entire area of the preserve (11,375 acres) which
includes lands located within the County of San Diego, City of San Diego, and the City of
Chula Vista. In addition, CFD No. 97-2 would fund the monitoring of private properties that
in the future would be dedicated to the preserve. As additional areas of the Otay Ranch
Project (beyond the district boundary) are developed, they will be required to provide for
their proportional share of the monitoring cost, which in turn may reduce the tax collected
from CFD No. 97-2 properties.
. Maintenance of the areas conveyed to the preserve. These areas will be dedicated
incrementally as [mal map are approved. The maintenance activities are directed to protect,
maintain, and enhance the natural resources in perpetuity. CFD No. 97-2 only includes the
maintenance of 1,243 acres corresponding to the estimated conveyance obligation of SPA
One according to the Resource Management Program Phase II. It should be noted that some
of the land dedicated to the preserve may be located outside of the City of Chula Vista's
jurisdiction. The Otay Ranch Preserve will be built incrementally as future final maps over the
whole Otay Ranch Project are approved. CFD No. 97-2 is only the first step towards providing
the necessary funding for maintaining the overall Otay Ranch Preserve. Additional
maintenance obligations will require modification of existing CFDs and/or formation of new
financing districts.
A detailed description of these activities is presented in Exhibit 3.
It should be noted that the "Chula Vista Community Facilities District Ordinance" only authorizes
funding of the maintenance, operation and management of public property in which the City has a
property interest. Therefore, services on property conveyed to another public agency (i.e., US Wildlife
Service) in which the City does not have a property interest are not eligible for funding by CFD No. 97-
2. In addition, the resolution establishing CFD 97-2, which is before Council tonight, expressly
excludes the maintenance, operation, and management of federal lands from the activities to be
financed by CFD No. 97-2
Cost Estimate
The estimated annual budget for CFD No. 97-2 is $157,466. This budget includes a total of $34,550 for
maintenance, $72,000 for monitoring, $25,916 for administration by the Preserve Owner Manager, and
$25,000 for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.)
by the Engineering Division. City and County Staff have reviewed and approved the proposed budget.
Exhibit 4 contains a detailed annual budget for the district at buildout of SPA One. There are two
components to the cost of the district: I) maintenance oflands that have been conveyed to the preserve
at final "B" map approval, and 2) monitoring of the entire area of the preserve.
The budget for the maintenance component is based on a comparably sized preserve (the Santa Rosa
Plateau Ecological Preserve located in Riverside County, west of Temecula) with an annual maintenance
cost of $37.06 per acre. This includes an administration cost component (by the Preserve Owner
Manager) estimated at 25.6% of said cost ($9.49 per acre). This unit cost is also consistent with the
Multi Species Conservation Program which proposes a cost of $36.50 per acre for similar activities.
1719--3
Page 4, Item 17
Meeting Date 9/15/98
The monitoring component is based on estimates prepared by Dudek and Associates in accordance with
the Resource Monitoring Program Phase II, for the following species/activities:
. Coastal Sage Scrub
. Wetland / Riparian Habitat
. Valley Needle grassland
. Woodlands
. Sensitive Species
. Wildlife Corridor Monitoring
. Annual Monitoring Reports
The expenses for the district may vary substantially from year to year due to certain studies and surveys
occurring less frequently than an annual basis. For purposes of calculating the tax rates, a uniform
annual cost has been assumed. Staff considers that those fluctuations can be provided for by including
in the annual budget a proportional cost of those activities. The taxes collected will be earmarked for
future funding of said specific activities when required by the POM.
The CFD administration cost (i.e., preparing report, levying and collecting taxes, and public assistance)
is estimated at $25,000. CFD administration will be performed by the City.
Improvement Areas
This district has been set up with two improvement areas (see Exhibit 5), as follows:
. Area "A" consists of Otay Ranch SPA One. This Area will be responsible for (I) the
maintenance of the areas conveyed to the preserve during development of SPA One, and (2) a
pro-rata share of the overall monitoring program.
. Area "8" consists of all lands within the district outside of SPA One. This Area will only be
responsible for a pro-rata share of the monitoring component. It has been assumed that this area
will remain undeveloped (no conveyance obligations).
Proposed Special Tax
The district has four categories of taxation, as follows:
. Category I includes all Developed Parcels for which a building permit has been issued, and
include the following: (I) Residential Parcels (single and multi family residences) which will
be taxed based on the square footage of the house and (2) Non-Residential Parcels (commercial
and community purpose facilities) which will be taxed based on acreage of the parcel.
. Category II includes all parcels for which a Final Map has been recorded but no building permit
has been issued. These parcels will be taxed based on the acreage of the parcel.
. Category III (Vacant Land) includes all the parcels for which neither a final map has been
recorded or a building permit has been issued. The tax on Vacant Land is based on the total
acreage ofthe parcel.
. The Exempt Category includes all public parcels within the district.
The maximum rate ofthe tax on all developed parcels is determined by dividing the estimated annual
budget of Area "A" (plus a reserve allocation of 10% of the annual budget) by the total estimated square
footage of construction. The apportionment methodology assumes that one acre of Non-Residential
properties is equal to 6 single family residences. The special tax consultant considers this a reasonable
assumption which has been used in other CFDs throughout California. This ratio is corroborated by data
17 ft ~ "(1
,.-...
Page 3, Item /7
Meeting Date~
.
Implementation of an annual biota monitorini1 which shall identify changes in quality and
quantity of onsite biological resources, including sensitive wildlife species, sensitive plant
species, and sensitive habitat types. CFD No. 97-2 will initially provide the funding for
performing the monitoring program over the entire area of the preserve (11,375 acres) which
includes lands located within the County of San Diego, City of San Diego, and the City of
Chula Vista In addition, CFD No. 97-2 would fund the monitoring of private properties that
in the future would be dedicated to the preserve. As additional areas of the Otay Ranch
Project (beyond the district boundary) are developed, they will be required to provide for
their proportional share of the monitoring cost, which in turn may reduce the tax collected
from CFD No. 97-2 properties.
I""'"
. Maintenance of the area. conveved to the preserve. These areas will be dedicated
incrementally as final map are approved. The maintenance activities are directed to protect,
maintain, and enhance the natura1 resources in perpetuity. CFD No. 97-2 only includes the
maintenance of 1,243 acres corresponding to the estimated conveyance obligation of SPA
One according to the Resource Management Program Phase II. It should be noted that some
of the land dedicated to the preserve may be located outside of the City of Chula Vista's
jurisdiction. The Otay Ranch Preserve will be built incrementally as future final maps over the
whole Otay Ranch Project are approved. CFD No. 97-2 is only the first step towards providing
the necessary funding for maintaining the overall Otay Ranch Preserve. Additional maintenance
obligations will require modification of existing CFDs andlor formation of new financing
districts.
A detailed description of these activities is presented in Exhibit 3.
It should be noted that the "Chula Vista Community Facilities District Ordinance" only authorizes funding
of the maintenance, operation and management of public property in which the City has a property
interest Therefore, services on property conveyed to another public agency (i.e., US Wildlife Service)
in which the City does not have a property interest are not eligible for funding by CFD No. 97-2. In
addition, the resolution establishing CFD 97-2, which is before Council tonight, expressly excludes
the maintenance, operation, and management of federal lands from the activities to be financed by
CFD No. 97-2
Cost Estimate
The estimated annual budget for CFD No. 97-2 is $157,466. This budget includes a total of $34,550 for
maintenance, $72,000 for monitoring, $25,916 for administration by the Preserve Owner Manager, and
$25,000 for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.)
by the Engineering Division. City and County Staff have reviewed and approved the proposed budget.
Exhibit 4 contains a detailed annual budget for the district at buildout of SPA One. There are two
components to the cost of the district: I) maintenance of lands that have been conveyed to the preserve
at final "B" map approval, and 2) monitoring of the entire area of the preserve.
,....
The budget for the maintenance component is based on a comparably sized preserve (the Santa Rosa
Plateau Ecological Preserve located in Riverside County, west of Temecula) with an annual maintenance
cost of $37.06 per acre. This includes an administration cost component (by the Preserve Owner
Manager) estimated at 25.6% of said cost ($9.49 per acre). This unit cost is also consistent with the
Multi Species Conservation Program which proposes a cost of $36.50 per acre for similar activities.
/7/7- 3
Page 4, Item4
Meeting Date 9/1798
The monitoring component is based on estimates prepared by Dudek and Associates in accordance with .
the Resource Monitoring Program Phase II, for the following species/activities:
. Coastal Sage Scrub
. Wetland / Riparian Habitat
. Valley Needle grassland
. Woodlands
. Sensitive Species
. Wildlife Corridor Monitoring
. Annual Monitoring Reports
The expenses for the district may vary substantially from year to year due to certain studies and surveys
occurring less frequently than an annual basis. For purposes of calculating the tax rates, a uniform annual
cost has been assumed. Staff considers that those fluctuations can be provided for by including in the
annual budget a proportional cost of those activities. The taxes collected will be earmarked for future
funding of said specific activities when required by the POM.
The CFD administration cost (i.e., preparing report, levying and collecting taxes, and public assistance)
is estimated at $25,000. CFD administration will be performed by the City.
Improvement Areas
This district has been set up with two improvement areas (see Exhibit 5), as follows:
.
Area "A" consists of Otay Ranch SPA One. This Area will be responsible for (I) the maintenance
of the areas conveyed to the preserve during development of SPA One, and (2) a pro-rata share
of the overall monitoring program.
-
-
. Area "B" consists of all lands within the district outside of SPA One. This Area will only be
responsible for a pro-rata share of the monitoring component. It has been assumed that this area
will remain undeveloped (no conveyance obligations).
Proposed Special Tax
The district has four categories of taxation, as follows:
. Category 1 includes all Developed Parcels for which a building permit has been issued, and
include the following: (I) Residential Parcels (single and multi family residences) which will be
taxed based on the square footage of the house and (2) Non-Residential Parcels (commercial and
community purpose facilities) which will be taxed based on acreage of the parcel.
. Category II includes all parcels for which a Final Map has been recorded but no building permit
has been issued. These parcels will be taxed based on the acreage of the parcel.
. Category III (Vacant Land) includes all the parcels for which neither a final map has been
recorded or a building permit has been issued. The tax on Vacant Land is based on the total
acreage of the parcel.
. The Exempt Category includes all public parcels within the district.
The maximum rate of the tax on all developed parcels is determined by dividing the estimated annual
budget of Area "A" (plus a reserve allocation of I 0% of the annual budget) by the total estimated square
footage of construction. The apportionment methodology assumes that one acre of Non-Residential
properties is equal to 6 single family residences. The special tax consultant considers this a reasonable
assumption which has been used in other CFDs throughout California. This ratio is corroborated by data
/;? /P-7"
-
Page 5, Item 17
Meeting Date 9/15/98
published by the San Diego Area Association of Governments (SANDAG) which provides that the
"people generation" of one acre of commercial property is approximately 5.6 times the number of people
in a single family residence.
The maximum tax rate for Category II, Final Map, has been estimated by dividing the estimated annual
budget of each area (plus a reserve allocation of 10% of the annual budget) by the estimated total
acreage of all taxable parcels in future final maps.
The maximum tax rate on Category III, Vacant Land, has been estimated by dividing the estimated
annual budget of each tax area (plus a reserve allocation of 10% of the annual budget) by the total gross
acreage of all parcels within the district.
Collection of Taxes
At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability
(budget plus reserve) of each Improvement Area. In Area "A", the special taxes will first be levied on
the developed parcels (Residential and Non-Residential). If this pool of funds is not enough to meet the
annual need, the district will levy a tax on the Category II (Final Maps). Next, if the collection still is
not enough, the district will levy a tax on the Category III (Vacant Land). The vacant land tax will
disappear once the area has been fully developed. Area "B" contains only vacant land and only
Category III tax rates would be levied. If the annual need is less than the collectible tax, the special
taxes to be levied in that specific year would be reduced accordingly.
Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment
ofthe Special Taxes" :
. The maximum special taxes may be adjusted each year by a factor equal to the lesser of the
annual change of the San Diego Consumer Price Index or the California Fourth Quarter Per
Capita Personal Income.
. The "City of Chula Vista Community Facilities District Ordinance" requires that the developer
maintain lands within the preserve for a minimum period of one year. The developer, at the time
of each final "B" map, will be requested to provide irrevocable offers of dedication of preserve
lands. It is anticipated that the City and County would not accept the offer of land for a
minimum of one year. During this period, the Developer will be expected to maintain such land
so that the City can collect the special taxes with the purpose of building up an operating reserve
not to exceed I 00% of the annual budget. The special tax formula provides that the annual
budget for any year may include an allocation for replenishing the reserve fund.
. The maximum tax rates are based on the best estimate by the developers ofthe square footage
of residential buildings and acreage of non-residential parcels at buildout with a 15% reduction
so that there would be some margin for error in the event that the developers do not build the
projected total square footage. This margin raises the maximum allowable tax so that if a lower
amount of development occurs (up to a 15% reduction) the City will still be able to cover the
expenses with a 10% reserve.
. The special tax formula provides that any cost due to delinquent taxes on vacant land shall be
apportioned to the project (Otay Ranch Company or McMillin) where the delinquent parcels are
located. This will eliminate any crossed-collateralization issues between the two developers by
making the delinquent developer solely responsible for co~cting any delinquency originating
from their project. 17 A -,:)
\ ~
e
.
.
Page 5, Hemn
Meeting Date 9/1(98
published by the San Diego Area Association of Governments (SANDAG) which provides that the
"people generation" of one acre of commercial property is approximately 5.6 times the number of people
in a single family residence.
/
The maximum tax rate for Category II, Fina] Map, has been estimated by dividing the estimated annual
budget of each area (plus a reserve allocation of 10% of the annual budget) by the estimated total
acreage of all taxable parcels in future final maps.
The maximum tax rate on Category III, Vacant Land, has been estimated by dividing the estimated
annual budget of each tax area (plus a reserve allocation of 10% of the annual budget) by the total gross
acreage of all parcels within the district.
Collection of Taxes
At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability
(budget plus reserve) of each Improvement Area. In Area "A", the special taxes will first be levied on
the developed parcels (Residential and Non-Residential). If this pool of funds is not enough to meet the
annual need, the district will levy a tax on the Category II (Final Maps). Next, if the collection still is
not enough, the district will levy a tax on the Category III (Vacant Land). The vacant land tax will
disappear once the area has been fully developed. Area "B" contains only vacant land and only
Category III tax rates would be levied. If the annual need is less than the collectible tax, the special
taxes to be levied in that specific year would be reduced accordingly. . .
Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment
of the Special Taxes" :
. The maximum special taxes may be adjusted each year by a factor equal to the lesser of the
annual change of the San Diego Consumer Price Index or the California Fourth Quarter Per
Capita Personal Income.
. The "City ofChula Vista Community Facilities District Ordinance" requires that the developer
maintain lands within the preserve for a minimum period of one year. The developer, at the time
of each final "B" map, will be requested to provide irrevocable offers of dedication of preserve
lands. It is anticipated that the City and County would not accept the offer of land for a
minimum of one year. During this period, the Developer will be expected to maintain such land
so that the City can collect the special taxes with the purpose of building up an operating reserve
not to exceed I 00% of the annual budget. The special tax formula provides that the annual
budget for any year may include an allocation for replenishing the reserve fund.
. The maximum tax rates are based on the best estimate by the developers of the square footage
of residential buildings and acreage of non-residential parcels at buildout with a 15% reduction
so that there would be some margin for error in the event that the developers do not build the
projected total square footage. This margin raises the maximum allowable tax so that if a lower
amount of development occurs (up to a 15% reduction) the City will still be able to cover the
expenses with a 10% reserve.
.
The special tax formula provides that any cost due to delinquent taxes on vacant land shall be
apportioned to the project (Otay Ranch Company or McMillin) where the delinquent parcels are
located. This will eliminate any crossed-collateralization issues between the two developers by
making the delinquent developer solely responsible for correcting any delinquency originating
from their project. I 7~' S
Page 6, Item / 1
Meeting Date~
.
The annual budgets used to calculate the tax rates are only the best "estimates"of the cost of
maintenance at district buildout. There is always a risk that actual expenses in future years may
be higher than the total maximum collectible taxes. This may result in reduced levels of
maintenance of the landscaping, unless the property owners approve an increase in the tax rates
(213 voter's approval is required) which is considered unlikely. Staff believes, however, that the
proposed tax rates contain enough of a cushion in the reserve, inflation adjustment, and the
Extraordinary Tax to minimize future problems.
-...
-..
-....
Proposed Maximum Taxes
The rate of special tax levy broken down by Improvement Area for this district for a typical dwelling
matrix is as follows'
Estimate of Annual Special Tax
Area "A" Area "B" I)
Maintenance Monitoring Maintenance Monitoring
Single Family Detached (2000 SF) $15.63 $9.85
Single Family Detached (1200 SF) $9.38 $5.91
Attached (I I 00 SF) $8.60 $5.42 .
Multi Family (1000 SF) . $7.82 $4.92
Commercial / CPF ( I acre) $128.53 $80.96
Final Mapped Land (1 acre) $128.53 $80.96
Vacant Land (1 acre) $81.30 $5 l.l 8 $51.18
1) It is assumed that only area "A" will be developed and that Area "B" WIll remalD vacanl Area "B"
is only responsible for a pro.rata share of the monitoring program.
Resolutions
There is one public hearing and two resolutions on today' s agenda which, if adopted, will
accomplish the following:
.
The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
.
The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements of law.
. Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CDF 97-2.
. Passing on any protest received.
. Approving the report.
.
The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the district and authorizing the submittal of the
/7/;'-C::>
Page 6, Item 17
Meeting Date 9/15/98
. The annual budgets used to calculate the tax rates are only the best "estimates"of the cost of
maintenance at district buildout. There is always a risk that actual expenses in future years may
be higher than the total maximum collectible taxes. This may result in reduced levels of
maintenance of the landscaping, unless the property owners approve an increase in the tax rates
(213 voter's approval is required) which is considered unlikely. Staff believes, however, that the
proposed tax rates contain enough of a cushion in the reserve, inflation adjustment, and the
Extraordinary Tax to minimize future problems.
Proposed Maximum Taxes
The rate of special tax levy broken down by Improvement Area for this district for a typical dwelling
matrix is as follows:
Estimate of Annual Special Tax
Area "A" Area "B" I)
Maintenance Monitoring Maintenance Monitoring
Single Family Detached (2000 SF) $15.63 $9.85
Single Family Detached (1200 SF) $9.38 $5.91
Attached (1100 SF) $8.60 $5.42
Multi Family (1000 SF) $7.82 $4.92
Commercial 1 CPF ( 1 acre) $128.53 $80.96
Final Mapped Land (1 acre) $128.53 $80.96
Vacant Land (1 acre) $81.30 $51.18 $51.18
1) It IS assumed that only area "A" will be developed and that Area "B" wIll remam vacant. Area "B"
is only responsible for a pro.rata share of the monitoring program.
Resolutions
There is one public hearing and two resolutions on today's agenda which, if adopted, will
accomplish the following:
* The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
* The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements of law.
. Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CFD 97-2.
. Passing on any protest received.
. Approving the report.
* The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the 17f?!. ~~UthOriZing the submittal of the
Page 7, Item 17
Meeting Date 9/15/98
Ie of s ecial tax to the ualified electors of the district on the ._i!I!i!lillli1illii)\!llIi!mii'Jiiiiii_W'
vy P q m.MMlMmlim1lm~1~It!Im!mIm;~1ffi_j1JJ~
811 2) ten (10) business days after the City is notified of the close of the land exchange
between the Otay Ranch Company and McMillin Otay Ranch, or 3) such other date as the
qualified electors and the City Clerk may mutually agree. A resolution certifying the results
of the election would be brought before Council on the first available Council meeting
following this election.
FISCAL IMPACT: All costs offormation of the district are being borne by the developers and the on-
going administration will be funded entirely by the district. The City will receive the benefit of full cost
recovery for staff costs involved in the following activities: 1) district formation (staff cost estimated
at $12,000), and 2) district administration (estimated annual staff cost of $25,000)
Exhibits:
1-
2-
3 -
4-
5 -
Otay Ranch Preserve J
Map of the District J
List of Activities J
Cost Estimate J j
Improvement Areago.l
Special Tax Report CFD 97-2 J
Attachments
A-
September 10, 1998
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Exhibit 3
List of Acthities
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;.- ?reseiVe Dp:iafions and Mainter.an:e
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Te;tiiiziil9, :Ji E"'l"lent if, Diseas:: or injury; removal if, trimmiilgS; rubbish, ciebr!s,
ail:! oin:, ':;:Jid w2"le; ...ainteilan::e if, t;::i!s; rem:Jv31 and contiDI Df exotic plants
",E::ie:; (w:==j:;); an:! ::Jni;DI if, c:Jwbi,ci:; thwugh L"'2::Jpiilg eITo;'""
2 Se::uritv: DavelDp 3Jld implement se:::mty piDgi3iT;5 to: emoi::e "no tresp2ssing"
mles; C!li".3il a~iivities kat deQi3de resoUiCes, such :s giaZing, 5hoofing, and iliega!
dumping; ;:move iP-5h, Illier, and other debris; . c:Jrrtrol access; prohibit on-road
""..lie; a-d waintain fen::es and trails.
3. ?reseiVe jm::;mvements: Acquire (throlJ;1h lease Oi p!JiCh2se) equipment Dr in"taIl
improvelTS,c'" ne::essai)' tD peiform uP- maintenan::e, monib;tng and security
7:...71::tioi5 ti::~;"'J ib:d n3rem.
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3.. Resource Monitoring ?rogiam
1. 3ioTa Monibiina: Implement me anm,1al biota m:lilibring and reporting program
c:Jn5i"<=lll with me RM? to identify cn2nges in the quality and quantity of jxeserve
iesou;::::; in:llJciing wildlife species, sensitive pIa,,:':' aild sensitive habitat types.
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Exhibit 4
Cost Estimate
Maintenance 3udget I
Maill~",iEin=e 'of 1 ?43 :le,:s - Imorov:rn;nt Area .A. I S34.550
I F'r=-ss;v: Atiministrafion I ;;:11.516
I A1lo::abl3 Portion of District Adinini:oi.. :::luon (36.5%) I 59.135
I Subtof3] Maintenance 3udget I t:::- ?OI
--~-
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I Monitoring 3udget I
I AnT1!lalci!d CD:oi.s I 572.000
I Col1t1:_i Administration I $14,400
I A11o::able Portion of District Admini"i.. "iion (63.5%) I S15.aS5
Subtotal Monitortng 3udget I SI02.2c5
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I Total 3uoget I S'157,456
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ATTACHMENT A ~ ..\.
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 97-2
PRESERVE MAINTENANCE DISTRICT
FOR THE
CITY OF CHULA VISTA
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ClN OF
CHUIA VISTA
Prepared By
Berryman & Henigar
JULY 1, 1998
Project No. 14358.00
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F
COMMUNiTY FACILITIES DISTRICT NO. 97-2
Preserve Maintenance District
City of Chula Vista
---.
TABLE OF CONTENTS
Introduction.......................................................................... .
. . . . . . . . . I
Description of District .... ........... ................. ........ .......... ..........
.....1
Description of Facilities .............................................
........3
Cost Estimate ...........................................................
.......... .............
....5
Rate and Method of Apportionment..
..................5
APPENDIX A - Calculation of Special Tax for Preserve Maintenance & Monitoring .-.,
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Community Facilities District No. 97-2
July 1, 1998
Page i
Special Tax Re::>or1
PRESERVE MAINTENANCE DISTRICT
Community Facilities District No. 97-2
City of Chula Vista
INTRODUCTJON
The City of Chula Vista (City) has been requested to initiate proceedings to establish a
Community Facilities District for the purpose of maintaining areas which have been
conveyed to the preserve in accordance with the Otay Ranch Resource Management
Plan to protect and enhance biological, paleontological, cultural and scenic resources,
maintain biological diversity and promote the survival and recovery of native species
and habitat; and to establish an annual biota monitoring program for the preserve in
order to identify changes in quality and quantity of on-site biological resources,
including sensitive wildlife species, sensitive plants species and sensitive habitat types.
The Preserve Owner/Manager (POM) will oversee the day-to-day and long-range
activities within the resource preserve. The POM will take an active role in the
maintenance and enhancement of biological resources, the development of educational
programs and the implementation of Resource Management Plan policies related to
management of the resource preserve.
The proposed District is located in the City of Chula Vista, County of San Diego, State
of California, as depicted on a reduced map of the boundaries thereof, Exhibit A,
Boundary Map, included herein.
The City adopted a resolution entitled "Resolution of Intention to Establish a Community
Facilities District", Resolution No. declaring its intention to form the District and
ordered the preparation of a report describing the proposed services to be financed by
the District if it is formed. The proceedings are being conducted in accordance with the
provisions of the "Mello Roos Community Facilities Act of 1982," being Chapter 2.5,
Part 1, Division 2, Title 5, commencing with Section 53311, of the Government Code of
the State of Califomia (the Act) and the City of Chula Vista Community Facilities District
Ordinance (the' "Ordinance") being Ordinance No. enacted pursuant to the
powers reserved by the City under Sections 3, 5 and 7 of Article XI of the Constitution
of the State of California and the Charter of the City. The report has been prepared by,
or under the direction of the Director of Public Works and other such officers
responsible for the providing of the services to be financed by the proposed District.
The report has been prepared in accordance with Section 53321.5 of the Act and
includes among other information:
a) A description of the maintenance services which are required to adequately
meet the needs of the District (Part II).
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Community Facilities District No. 97-2
July 1,1998
Page ii
Special Tax Report
b) An estimate of the fair and reasonable cost of providing maintenance
services and all other related costs as provided in Section 53345.3 of the Act
(Part III).
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Community Facilities District No. 97-2 Special Tax Report
July 1,1998
. Page 1
Part I - Description of District
The proposed District (Preserve Maintenance District) Community Facilities District No.
97-2 as shown in Exhibit A includes the following Assessor's Parcel Numbers:
Assessor's Parcel Owner Acreaae
Number
595-070-33-00 Otay Project LLC 15.39
641-020-15-00 Otay Project LLC 21.89
641-020-18-00 Otay Project LLC 10.00
641-030-16-00 Otay Project LLC 16.50
641-060-04-00 Otay Project LLC 8.16
641-060-06-00 Otay Project LLC 17.91
641-070-01-00 Otay Project LLC 87.86
641-080-01-00 Otay Project LLC 88.89
642-060-11-00 McMillin D. A. America Otay Ranch LLC 140.79
642-071-01-00 DMB/AEW Land Holdings Two/LLC-OVP 23.09
642-071-02-00 Standard Pacific Corp. -OVP 13.40
642-071-03-00 Centex Homes-OVP 10.59
. 642-071-04-00 DMB/AEW Land Holdings Two/LLC-OVP 19.69
642-071-05-00 Standard Pacific Corp.-OVP 14.84
642-071-06-00 South Bay Project, LLC-OVP 6.53
642-071-07-00 Otay Project, LLC-OVP 72.48
642-071-08-00 Centex Homes-OVP 12.13
642-071-09-00 Otay Project, LLC-OVP 13.74
642-071-10-00 Otay Project, LLC-OVP 7.16
642-071-11-00 Otay Project, LLC-OVP 10.35
642-071-12-00 Otay Project, LLC-OVP 275.39
42-080-01-00 McMillin D. A. America Otay Ranch LLC 157.09
642-090-01-00 Otay Project LLC 92.78
642-100-01-00 McMillin D. A. America Otay Ranch LLC 91.29
643-010-03-00 Otay Project LLC 19.92
643-010-09-00 Otay Project LLC 51.63
643-020-10-00 Otay Project LLC 159.37
643-020-28-00 Otay Project LLC 48.13
643-020-32-00 Otay Project LLC 99.62
643-05.0-01-00 Otay Project LLC 58.24
643-060-03-00 McMillin D. A. America Otay Ranch LLC 637.73
643-060-04-00 Otay Project LLC 268.55
644-030-01-00 Otay Project LLC 311.03
. 644-030-06-00 Otay Project LLC 255.85
TOTAL 3,138.01
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Community Facilities District No. 97-2
July 1,1998
Page 3
Part II - Description of Facilities/Services
The proposed services include all direct, administrative and incidental annual costs and
expenses related to the maintenance, operation and management of public or private
property required by the Preserve OwnerlManager (POM) to be maintained within the
Otay Ranch Preserve as open space or habitat preservation or both. Such property
may be located outside the boundaries of the applicable community facility district and
outside the jurisdictional boundaries of the City.
The Otay Ranch Phase 2, Resource Management Plan (RMP) dated June 4, 1996,
describes the POM functions that may be funded through land secured financing
(pages 77-82), including this CFD. The document also identifies those POM functions
that may not be funded through land secured financing, including this CFD. Revenues
from this CFD may not be used for enhanced preserve functions such as: the
maintenance of more lands than contemplated in the initial preserve boundaries;
instructional or educational programs; and expanded or new management programs.
Revenues from this CFD may not be used to fund the maintenance, operation or
improvement of a regional park located in the preserve.
Revenues from this CFD may be used for preserve maintenance, operation and
management, biota monitoring, and preserve security including ordinary and necessary
administrative expenses and reserve fund requirements. Such services shall include
the following:
A. Preserve Operations and Maintenance
1. Preserve Maintenance: Develop and implement programs to maintain, operate and
manage preserve habitat values through: cultivation, irrigation, trimming, spraying,
fertilizing, or treatment of disease or injury; removal of trimmings, rubbish, debris,
and other solid waste; maintenance of trails; removal and control of exotic plants
species (weeds); and control of cowbirds through trapping efforts.
2. Security: Develop and implement security programs to: enforce "no trespassing"
rules; curtail activities that degrade resources, such as grazing, shooting, and illegal
dumping; remove trash, litter, and other debris; control access; prohibit off-road
traffic; and maintain fences and trails.
3. Preserve Improvements: Acquire (through lease or purchase) equipment or install
improvements necessary to perform the maintenance, monitoring and security
functions described herein.
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Community Facilities District No. 97-2
July 1, 1998
Page 4
B. Resource Monitoring Program
1. Biota Monitorina: Implement the annual biota monitoring and reporting program
consistent with the RMP to identify changes in the quality and quantity of preserve
resources including wildlife species, sensitive plants and sensitive habitat types.
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Community Facilities District No. 97-2
July 1,1998
Page 5
Part III - Cost Estimate
The estimate of the fair and reasonable cost of the proposed services for Resource
Monitoring, and Preserve and Maintenance Operations including in connection with
providing said services, and all other related costs is deemed to be not greater than
$157,466 if all development if all services and facilities were required for the fiscal year
ending June 30, 1999 as shown below:
Maintenance Budget
Maintenance of 1,243 acres - Improvement Area A $34,550
Preserve Administration $11,516
Allocable Portion of District Administration (36.5%) $9,135
Subtotal Maintenance Budget $55,201
Monitoring Budget
Annualized Costs $72,000
Contract Administration $14,400
Allocable Portion of District Administration (63.5%) $15,865
Subtotal Monitoring Budget $102,265
Total Budget $157,466
Each Fiscal Year thereafter, the City shall cause to be prepared annually a budget
showing the estimate of cost for the Resource Monitoring Program, and Preserve
Operations and Maintenance for the coming year for Improvement Area A and B of the
District. The costs for the Resource Monitoring Program shall be allocated to
Improvement Areas A and B in proportion to the gross Acres within each Improvement
Area (34% and 66%, respectively). The costs for the Preserve Operations and
Maintenance shall be allocated to Improvement Area A only. The budget for each
Fiscal Year may show the proportional cost of those maintenance and/or monitoring
activities which occur less frequently than on an annual basis. Said budget shall also
account for any funds collected from other parcels within the Otay Ranch General
Development Planning Area such that the "fair share" costs for Resource Monitoring as
determined by the City shall be allocated to this District.
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Community Facilities District No. 97-2
July 1,1998
Page 6
-.,
Part IV - Rate and Method of Apportionment of Special Taxes
ANNUAL TAX
A Special Tax shall be levied annually on each Parcel of land within the Preserve
Maintenance District, Community Facilities District No. 97-2 of the City of Chula Vista
(the "District"), and collected according to the Special Tax Liability determined by the
City of Chula Vista (the "City") through the application of the following procedures. All
of the property within the District, unless otherwise exempted by law or the express
provisions of the rate and method of apportionment expressed below, shall be taxed to
the extent and in the manner provided below.
All Parcels within the District are included within either Improvement Area A or
Improvement Area B. A map of the Improvement areas is included as Exhibit B.
All Special Taxes applicable to Parcels be collected in the same manner and at the
same time as ordinary ad valorem property taxes, and Special Taxes so levied will be
subject to the same penalties and procedures, sale and lien priority in case of
delinquency as is provided for ad valorem taxes.
DEFINITIONS
----.
Acre or Acreage means the area of a Parcel as shown on the latest maps of the
Assessor of the County of San Diego, or if the area of such Parcel is not shown on such
Assessor's maps, the area as shown on a current recorded subdivision map, parcel
map, record of surveyor other recorded document creating or describing the Parcel. If
the preceding maps are not available, the area shall be determined by the City
Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City
in carrying out its duties with respect to the District (including, but not limited to, the levy
and collection of the special taxes) including the fees and expenses of its counsel, any
fees of the County related to the District or the collection of special taxes, an allocable
share of the salaries of City staff directly related thereto and a proportionate amount of
the City's general administrative overhead related thereto, any amounts paid by the City
from its general fund with respect to the District, and all other costs and expenses of the
City related to the District.
Building Square Foot or Square Footage means the square footage as shown on a
Parcel's building permit, excluding garages or other structures not used as living space.
-.
City means the City of Chula Vista. .
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Community Facilities District No. 97-2
July 1, 1998
Page 8
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Developed Parcel means Taxable Property for which a foundation building permit or
other form of building permit has been issued as of March 1 of the preceding Fiscal
Year.
District means the Preserve Maintenance District Community Facilities District
No. 97-2 of the City of Chula Vista.
Final Map means a recorded Tract Map or Parcel Map.
Fiscal Year means the period starting on July 1 and ending the following June 30.
Improvement Area means one of the two specific areas as shown in Exhibit B.
Maximum Special Tax means the maximum special tax that can be levied within each
Improvement Area within CFD No. 97-2 by the City Council in any Fiscal Year for each
Parcel of Taxable Property.
Non-Residential Parcels shall include each Parcel within the District which is zoned
for other than Residential Uses by the City.
Non-Residential Uses shall include all Developed Parcels which are not zoned for
Residential Uses including commercial, industrial, and Community Public Facilities
(CPF).
-.,
Operating Fund means a fund that shall be maintained for each Improvement Area
within the District for any Fiscal Year to pay for Resource Monitoring and/or Preserve
Operations and Maintenance activities and Administrative Expenses.
Operating Fund Balance means the amount of funds in the Operating Fund for each
Improvement Area at the end of the preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount for each
Improvement Area equal to the Resource Monitoring Fund Requirement and the
Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in
which Special Taxes are levied.
Parcel means any San Diego County Assessor's Parcel or portion thereof that is within
the boundaries of the District designated on a map of the San Diego County Assessor
and which has been assigned a discrete identifying number on the equalized tax rolls of
the County.
---.
Preserve Operations and Maintenance means those activities defined in Part" A. of
the Special Tax Report dated July 1,1998 for Community Facilities District No. 97-2 of
the City of Chula Vista.
-#- /7/J -2~
M:\Soroiect\c::hulavis\osrvmain8. d""
.
Community Facilities District No. 97-2
July 1,1998
Page 9
Preserve Operations and Maintenance Fund Requirement means for any Fiscal
Year an amount equal to the budgeted costs for Preserve Operations and Maintenance
plus a pro-rata share of the budgeted Administrative Expenses of the District for the
current Fiscal Year in which Special Taxes are levied.
Residential Parcels shall include each Parcel within the District which is zoned for
Residential Uses by the City.
Residential Uses shall include those residential uses as permitted in the City zoning
ordinance.
Reserve Fund means a fund that shall be maintained for each Improvement Area to
provide necessary cash flow for the first six months of each Fiscal Year, working capital
to cover monitoring, maintenance and repair cost overruns and delinquencies that may
arise in connection with the collection of Special Taxes and a reasonable buffer against
large variations in annual special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of
the preceding Fiscal Year.
. Reserve Fund Requirement means an amount equal to up to 100% of the Operating
Fund Requirement for any Fiscal Year.
Resource Monitoring Program means those activities defined in Part II B. of the
Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-2 of the
City of Chula Vista.
Resource Monitoring Fund Requirement means for any Fiscal Year an amount for
each Improvement Area equal to the Improvement Area's fair share of the budgeted
costs of the Resource Monitoring Program plus a pro rata share of the budgeted
Administrative Expenses of the District for the current Fiscal Year in which Special
Taxes are levied. An Improvement Area's ''fair share" shall be based upon the
Improvement Area's percentage of the total acreage within the Otay Ranch General
Development Plan Planning Area for which a Resource Monitoring Program funding
mechanism has been established.
Special Tax means the special tax or special taxes actually levied within CFD No. 97-2
each Fiscal Year.
.
Special Tax Liability for any Fiscal Year is an amount sufficient to pay the costs of an
Improvement Area within the District equal to: (i) the Resource Monitoring Fund
Requirement, and Preserve Operations and Maintenance Fund Requirement, less the
Operating Fund Balance, and (Ii) the Reserve Fund Requirement, less the Reserve
Fund Balance.
,
~ /711;2..5
M:\Sproiecl\chulavislPsrvmain8. doc
Community Facilities District No. 97-2
July 1,1998
Page 10
""""
Tax Categories are those Categories I, II and III described in the body hereof.
Taxable Property is all real property or Parcels within the boundaries of the District
which are not exempt from the Special Tax pursuant to the law or which are not
classified or assigned to the Exempt Category as defined herein.
Cateaories of Special Taxes
Category I
Category I includes each Developed Parcel within the District. (Category I)
The Maximum Special Tax for Resource Monitoring, and Preserve Operations and
Maintenance that may be levied for Fiscal Year 1998/99 on each Developed Parcel
shall be at the rates set forth in Table 1 below. For Residential Parcels the Special Tax
shall be levied based upon Building Square Footage and for Non-Residential Parcels
shall be levied based on Acreage. The Maximum Special Tax shall be increased or
decreased each Fiscal Year thereafter by a factor which is the lesser of the annual
percentage change in the January to January San Diego Metropolitan Area All Urban
Consumer Price Index (All Items) or the annual percentage change in the estimated"""".
California Fourth Quarter Per Capita Personal Income as contained in the Governor's
budget published every January.
TABLE 1
Maximum Special Tax
Category I
Resource Operation &
Monitoring Maintenance
Residential Parcels SO. 004 9 per sq. ft. SO.0078 per sq. ft.
Non-Residential Parcels S80.96 per Acre 5128.53 per Acre
Category II
Category II includes each Parcel of Taxable Property within the District for which a Final
Map has been recorded, but which is not classified as a Developed Parcel (Category II).
The Maximum Special Tax for Resource Monitoring, and Preserve Operations and
Maintenance that may be levied for Fiscal Year 1998/99 on each Parcel in Category II
shall be as shown in Table 2 below (said amount to be levied pro rata for any portion of
an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal
Year thereafter by a factor which is the lesser of the annual percentage change in the
January to January San Diego Metropolitan Area All Urban Consumer Price Index (All
Items) or the annual percentage change in the estimated California Fourth Quarter Per
Capita Personal Income as contained in the Governor's budget published every
January.
--.
;20
/74-2b .
M :\Sproiect\ch ulavis \osrvmalnB. d DC
.
.
.
Community Facilities District No. 97-2
July 1,1998
Page 11
TABLE 2
Maximum Special Tax
Category II
Resource Operation &
Monitoring Maintenance
$80.96 per Acre $128.53 per Acre
Category III
Category III includes each Parcel of Taxable Property within the District not subject to a
Special Tax under any other category ("Category III").
The Maximum Special Tax which may be levied for Fiscal Year 1998/99 on Taxable
Property within Category III shall be as shown in Table 3 below (said amount to be
levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be
increased or decreased each Fiscal Year thereafter by a factor which is the lesser of
the annual percentage change in the January to January San Diego Metropolitan Area
All Urban Consumer Price Index (All Items) or the annual percentage change in the
estimated California Fourth Quarter Per Capita Personal Income as contained in the
Governor's budget published every January.
TABLE 3
Maximum Special Tax
Category III
Resource Operation &
Monitoring Maintenance
$51.21 per Acre I $81.30 per Acre
Exempt Category
The Exempt Category includes each property owned, conveyed or irrevocably offered
for dedication to a public agency, or land which is in the public right-of-way, unmanned
utility easements which make utilization for other than the purpose set forth in the
easement impractical, common areas, private streets and parks, and open space lots
("Exempt Category").
Assianment to Cateaories of Soecial Tax
On or about July 1 of each year, (but in any event in sufficient time to include the levy of
the Special Taxes on the County's secured tax roll), the City shall assign each Parcel
within the District to Category I, Category II, Category III or the Exempt Category.
Parcels subject to levy shall be determined based upon the records of the San Diego
County Assessor.
l\II:\Sproject\chu lavis\psrvmain8. doc
;zr /7/l ~:J-7.
Community Facilities District No. 97-2
July 1, 1998
Page 12
~,
Levv and Apportionment of Special Taxes
The City shall determine the Special Tax Liability for each Improvement Area in each
Fiscal Year on or about every July 1. Special Taxes shall then be levied on each
Parcel classified as the Category I, Category II, or Category III in the following order of
priority:
Improvement Area A
Step 1: Determine the revenue which could be generated by Parcels assigned to
Category I by multiplying the Building Square Footage for Parcels classified as
Residential Parcels by the Maximum Special Tax per Building Square Foot for
Resource Monitoring, and Preserve Operations and Maintenance for Parcels
and adding to that the maximum revenue which could be generated by
multiplying the total acres for Parcels classified as Non-Residential Parcels by
the Maximum Special Tax per Acre for Resource Monitoring and Preserve
Operations and Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated
Special Tax Liability for Improvement Area A, reduce the Special Tax for each .-."
Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal
to the Special Tax Liability for the Fiscal Year.
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability
for Improvement Area A, a Special Tax shall be levied upon each Parcel within
Improvement Area A, classified as Category II. The Special Tax for Parcels
assigned to Category II shall be calculated as the lessor of:
(i) The Special Tax Liability for Improvement Area A as determined by the City,
less the total revenue generated for all Parcels under Step 1 above, divided
by the total Acres for all Parcels within Improvement Area A assigned to
Category II,
OR
(ii) the Maximum Special Tax rate for Parcels assigned to Category II
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax
Liability, for Improvement Area A, a Special Tax shall be levied upon each
Parcel within Improvement Area A classified as Category III. The Special Tax
for Parcels assigned to Category III shall be calculated as the lessor of:
........
(i) The Special Tax Liability for Improvement Area A as determined by the City,
less the total revenue generated for all Parcels under Step 1 and 3 above,
;;&7
/74-2%
M :\Soroiect\ch ulavis\osrvmainB. doc
.
Community Facilities District No. 97-2
July 1,1998
Page 13
divided by the total Acres for all Parcels within Improvement Area A
assigned to Category III,
OR
(ii) the Maximum Special Tax rate for Parcels assigned to Category III and
within Improvement Area A.
However, in the event it is determined that the Special Tax Liability for Improvement
Area A includes delinquent Special Taxes from Parcels in Category III from the prior
Fiscal Year, the City shall determine the amount of delinquent taxes that arose from
such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if
any, that arose from the applicable owner(s) shall first be divided by the total Category
III Acres owned by such owner(s) and collected from the applicable owner(s) with the
remaining portion of the Special Tax Liability not related to delinquent Special Taxes to
be collected from all Parcels in Category III according to the procedure set forth in the
preceding paragraph.
Imorovement Area B
. Step 1: Determine the revenue which could be generated by Parcels assigned to
Improvement Area B for Resource Monitoring by multiplying the total Acres for
Parcels assigned to Category III by the Maximum Special Tax for Category III.
Step 2: If the total revenue as calculated in Step 1 is greater than the Special Tax
Liability for Improvement Area B, reduce the Special Tax for each Parcel
proportionately so that the Special Tax levy for the Fiscal Year is equal to the
Special Tax Liability for Improvement Area B for the Fiscal Year.
However, in the event it is determined that the Special Tax Liability for Improvement
Area B includes delinquent Special Taxes from Parcels in Category III from the prior
Fiscal Year, the City shall determine the amount of delinquent taxes that arose from
such Parcels and identify the owner(s), The amount of delinquent Special Taxes, if
any, that arose from the applicable owner(s) shall first be divided by the total Category
III Acres owned by such owner(s) and collected from the applicable owner(s) with the
remaining portion of the Special Tax Liability not related to delinquent Special Taxes to
be coll~cted from all Parcels in Category III according to the procedure set forth in the
Step 1 and Step 2 above.
.
~ /l,4~2--9
M:\Sproject\chulavis\psrvmainB.doc
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.
C::>mmunlty Facilities D'SlflC, N::> S7-2
Jwly 1,1998
Page 1
S::>eclal Tax Re::>::>~
_ "./::1"
CK..H I~II tl
Rate and Method of Apportionment of Special Taxes
ANNUAL TAX
A Special Tax shall be levied annually on each Parcel of land within the Preserve
Maintenance District, Community Facilities District No. 97-2 of the City of Chula Vista
(the "District"), and collected according to the Special Tax Liability determined by the
City of Chula Vista (the "City") through the application of the following procedures All
of the property within the District, unless otherwise exempted by law or the express
provisions of the rate and method of apportionment expressed below. shall be taxed to
the extent and in the manner provided below.
All Parcels within the District are included within either Improvement Area A or
Improvement Area B. A map of the Improvement areas is included as Exhibit B.
All Special Taxes applicable to Parcels be collected in the same manner and at the
same time as ordinary ad valorem property taxes, and Special Taxesso levied will be
subject to the same penalties and procedures, sale and lien priority in case of
delinquency as is provided for ad valorem taxes.
.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the
Assessor of the County of San Diego, or if the area of such Parcel is not shown on
such Assessor's maps, the area as shown on a current recorded subdivision map,
parcel map, record of surveyor other recorded document creating or describing the
Parcel. If the preceding maps are not available, the area shall be determined by the
City Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City
in carrying out its duties with respect to the District (including, but not limited to, the
levy and collection of the special taxes) including the fees and expenses of its counsel,
any fees of the County related to the District or the collection of special taxes, an
allocable share of the salaries of City staff directly related thereto and a proportionate
amount of the City's general administrative overhead related thereto, any amounts paid
by the City from its general fund with respect to the District, and all other costs and
expenses of the City related to the District.
Building Square Foot or Square Footage means the square footage as shown on a
Parcel's building permit, excluding garages or other structures not used as living space.
.
City means the City of Chula Vista.
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Community Fa::ilities Distnct No 97-2
July 1,1993
?age 3
So:::,al Tax ",:0:J-:
Developed Parcel means Taxable Property for which a foundakln ::>;.11101:<;
permit or other form of building permit has been issued as of Iular::h " of In:
preceding Fiscal Year.
District means the Preserve Maintenance District Community Facilities
District No. 97-2 of the City of Chula Vista.
Final Map means a recorded Tract Map or Parcel Map.
Fiscal Year means the period starting on July 1 and ending the following June
30.
Improvement Area means one of the two specific areas as shown in Exhibit B.
Maximum Special Tax means the maximum special tax that can be levied within
each Improvement Area within CFD No. 97-2 by the City Council in any Fiscal
Yeer for each Parcel of Taxable Property.
.
Non-Residential Parcels shall include each Parcel within the District whi::h is
zoned for other than Residential Uses by the City.
Non-Residential Uses shall include all Developed Parcels which are not 'Zoned
for Residential Uses including commercial, industrial, and Community Publi::
Facilities (CPF).
Operating Fund means a fund that shall be maintained for each Improvement
Area within the District for any Fiscal Year to pay for Resource Monitoring and/or
Preserve Operations and Maintenance activities and Administrative Expenses
Operating Fund Balance means the amount of funds in the Operating Fund for
each Improvement Area at the end of the preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount for each
Improvement Area equal to the Resource Monitoring Fund Requirement and the
Preserve Operations and Maintenance Fund Requirement for the current Fis::al
Year in which Special Taxes are levied.
.
Parcel means any San Diego County Assessor's Parcel or portion thereof that is
within the boundaries of the District designated on a map of the San Diego
County Assessor and which has been assigned a discrete identifying number on
the equalized tax rolls of the County.
~ /7/l-,.J5
Community Facilities District No. 97-2
July 1, 1933
Page 4
Spec;al Tax Ke::l::ln
""'"
Preserve Operations and Maintenance means those activities defined in Pan II
A. of the Special Tax Report dated July 1, 1998 for Community Facilities District
No. 97-2 of the City of Chula Vista.
Preserve Operations and Maintenance Fund Requirement means for any
Fiscal Year an amount applicable to Improvement Area A equal to the budgeted
costs for Preserve Operations and Maintenance plus a pro-rata share of the
budgeted Administrative Expenses of the District for the current Fiscal Year In
which Special Taxes are levied.
Residential Parcels shall include each Parcel within the District which is zoned
for Residential Uses by the City.
Residential Uses shall include those residential uses as permitted in the City
zoning ordinance.
Reserve Fund means a. fund that shall be maintained for each Improvement
Area to provide necessary cash flow for the first six months of each Fiscal Year.
working capital to cover monitoring, maintenance and repair cost overruns and ""'"
delinquencies that may arise in connection with the collection of Special Taxes
and a reasonable buffer against large variations in annual special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fur'ld at the
end of the preceding Fiscal Year.
Reserve Fund Requirement means an amount equal to up to 100% of the
Operating Fund Requirement for any Fiscal Year.
Resource Monitoring Program means those activities defined in Part II B. of
the Special Tax Report dated July 1,1998 for Community Facilities District No.
97-2 of the City of Chula Vista.
Resource Monitoring Fund Requirement means for any Fiscal Year an
amount for each Improvement Area equal to the Improvement Area's fair share
of the budgeted costs of the Resource Monitoring Program plus a pro rata share
of the budgeted Administrative Expenses of the District for the current Fiscal
Year in which Special Taxes are levied. An Improvement Area's "fair share"
shall be based upon the Improvement Area's percentage of the total acreage
within the Otay Ranch General Development Plan Planning Area for which a
Resource Monitoring Program funding mechanism has been established.
Special Tax means the special tax or special taxes actually levied within CFD
No. 97-2 each Fiscal Year.
""'"\
~ /7/J-3h
.
Community Facilities District No 97-2
July 1, 1998
Page 5
Soe:,a: Tax =:eo:>-
Special Tax Liability for any Fiscal Year is an amount sufficient to ;:Jay the cos:s
of an Improvement Area within the District equal to: (i) the Resource MonJtonn~
Fund Requirement, and Preserve Operations and Maintenance Fun::
Requirement, less the Operating Fund Balance, and (ii) the Reserve Fun::
Requirement, less the Reserve Fund Balance.
Tax Categories are those Categories I, II and III described in the body hereof.
Taxable Property is all real property or Parcels within the boundaries of the
District which are not exempt from the Special Tax pursuant to the law Dr which
are not classified or assigned to the Exempt Category as defined herein.
Cateoories of Soecial Taxes
Category I
Category I includes each Developed Parcel within the District. (Category I)
.
The Maximum Special Tax for Resource Monitoring, and Preserve Operations
and Maintenance that may be levied for Fiscal Year 1998/99 on each Developed
Parcel shall be at the rates set forth in Table 1 below. For Residential Parcels
the Special Tax shall be levied based upon Building Square Footage and for
Non-Residential Parcels shall be levied based on Acreage. The Maximum
Special Tax shall be increased or decreased each Fiscal Year thereafter by a
factor which is the lesser of the annual percentage change in the January to
January San Diego Metropolitan Area All Urban Consumer Price Index (All
Items) or the annual percentage change in the estimated California Fourth
Quarter Per Capita Personal Income as contained in the Governor's budget
published every January.
TABLE 1
Maximum Special Tax
Category I
Resource Operation &
Monitoring Maintenance
Residential Parcels $0.0049 per sq. ft. I 50.0078 per sq. ft.
Non-Residential Parcels $80.96 per Acre I 5128.53 per Acre
Category II
.
~/O /711-'2;; 1
f.J. .\S~roiect\:::hu12vic:;\CD~97 - 2 t:.
/.1
Community Facilities Dlstrlc: No S7-2
July 1, 19?5
Page 6
SD:c:al Tax ReDo:'
-....
Category II includes each Parcel of Taxable Propeny within the District for wnIC~,
a Final Map has been recorded, but which is not classified as a Deveiopej
Parcel (Category II).
The Maximum Special Tax for Resource Monitoring, and Preserve Operations
and Maintenance that may be levied for Fiscal Year 1998/99 on each Parcel in
Category II shall be as shown in Table 2 below (said amount to be ievied pro
rata for any portion of an Acre). Said Maximum Special Tax shall be increased
or decreased each Fiscal Year thereafter by a factor which is the lesser of the
annual percentage change in the January to January San Diego Metropolitan
Area All Urban Consumer Price Index (All Items) or the annual percentage
change in the estimated California Fourth Quarter Per Capita Personal Income
as contained in the Governor's budget published every January.
Category III
TABLE 2
Maximum Special Tax
Category II
I Resource I Operation &
Monitoring Maintenance
I 580.96 per Acre I 5128.53 per Acre
-...
Category III includes each Parcel of Taxable Property within the District not
subject to a Special Tax under any other category ("Category III").
The Maximum Special Tax which may be levied for Fiscal Year 1998/99 on
Taxable Property within Category III shall be as shown in Table 3 below (said
amount to be levied pro rata for any portion of an Acre). Said Maximum Special
Tax shall be increased or decreased each Fiscal Year thereafter by a factor
which is the lesser of the annual percentage change in the January to January
San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the
annual percentage change in the estimated California Fourth Quarter Per Capita
Personal Income as contained in the Governor's budget published every
January.
TABLE 3
Maximum Special Tax
Category III
Resource Operation &
Monitoring Maintenance
551.21 per Acre 581.30 per Acre
-....
Exempt Category
'..'e..,..,..,:c--'" _'"-.,1_ .-__'~"""_"":" ....
-I--7C -1/ J71l- ~ 3 g
e
Communily ;:acilltles Dislnct No. 97-2
July i. i 933
Page 7
Specia, Tax Re:o:-:
The Exempl Category includes each property owned, conveyed Dr Irrevoca:;"y
offered for dedication to a public agency, or land which is in the public rlgnt-o;-
way, unmanned utility easements which make utilization for other than t;)e
purpose set forth in the easement impractical, common areas. private sVeets
and parks, and open space lots ("Exempt Category").
Assionment to Cateoories of Soecial Tax
On Dr about July 1 of each year, (but in any event in sufficient time to include the
levy of the Special Taxes on the County's secured tax roil), the City shall assign
each Parcel within the District to Category I, Category II, Category III or the
Exempt Category. Parcels subject to levy shall be determined based upon the
records of the San Diego County Assessor.
e
e
t..,~___ __'-_0.. _ _ ,..._=-':'-~.
/ 7{! -/2-
,
17 /l ~ 3 7'
J}
Community F acililies District No 97-2
July 1, 1993
?age 8
S:J=:;ai Tax Re::>:x:
~
Levv and ADDDrtiDnment Df SDeclal Taxes
The City shall determine the Special Tax Liability fDr each Improvement Area in
each Fiscal Year on Dr about every July 1. Special Taxes shall tnen be levied
on each Parcel classified as the Category I, Category II, or Category III in the
fDllowing order of priority:
ImprDvement Area A
Step 1: Determine the revenue which could be generated by Parcels assigned
to CategDry I by multiplying the Building Square FDotage fDr Parcels
classified as Residential Parcels by the Maximum Special Tax per
Building Square Foot for Resource Monitoring, and Preserve Operations
and Maintenance for Parcels and adding to that the maximum revenue
which could be generated by multiplying the total acres for Parcels
classified as Non-Residential Parcels by the Maximum Special Tax per.
Acre for Resource Monitoring and Preserve Operations and
Maintenance.
Step 2: If the total revenue as calculated in Step 1 is greater than the estimated
Special Tax Liability for Improvement Area A, reduce the Special Tax for
each Parcel proportionately so that the Special Tax levy for the Fiscal
Year is equal to the Special Tax Liability for the Fiscal Year.
~
Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax
Liability for Improvement Area A, a Special Tax shall be levied upon
each Parcel within Improvement Area A, classified as CategDry II. The
Special Tax for Parcels assigned tD Category II shall be calculated as
the lessor of:
(i) The Special Tax Liability for Improvement Area A as determined by
the City, less the total revenue generated for all Parcels under Step
1 above, divided by the total Acres for all Parcels within
Improvement Area A assigned to Category II,
OR
(ii) the Maximum Special Tax rate for Parcels assigned to Category II
Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special
Tax Liability, for Improvement Area A, a Special Tax shall be levied ........
upon each Parcel within Improvement Area A classified as Category III.
The Special Tax for Parcels assigned to Category III shall be calculate.:j
as the lessor of
! 7r' -1-:3
17/l- t10
.
Community Facilities D:stnct No 97-2
July 1, 1998
Page 9
Special Tax "e:,::;-'
(i) The Special Tax Liability for Improvement Area A as determined :JY
the City, less the total revenue generated for all Parcels under Ste::;
1 and 3 above, divided by the total Acres for all Parcels witnln
Improvement Area A assigned to Category III,
OR
(ii) the Maximum Special Tax rate for Parcels assigned to Category III
and within Improvement Area A.
.
However, in the event it is determined that the Special Tax Liability for
Improvement Area A includes delinquent Special Taxes from Parcels in
Category III.from the prior Fiscal Year, the City shall determine the amount of
delinquent taxes that arose from such Parcels and identify the owner(s). The
amount of delinquent Special Taxes, if any, that arose from the applicable
owner(s) shall first be divided by the total Category III Acres Owned by such
owner(s) and collected from the applicable owner(s) with thE! remaining portion
of the Special Tax Liability not related to delinquent Special Taxes to be
collected from all Parcels in Category III according to the procedure set forth In
the preceding paragraph.
ImDrovement Area B
Step 1: Determine the revenue which could be generated by Parcels assigned
to Improvement Area B for Resource Monitoring by multiplying the total
Acres for Parcels assigned to Category III by the Maximum Special Tax
for Category III.
Step 2: If the total revenue as calculated in Step 1 is greater than the Special
Tax Liability for Improvement Area B, reduce the Special Tax for each
Parcel proportionately so that the Special Tax levy for the Fiscal Year is
equal to the Special Tax Liability for Improvement Area B for the Fiscal
Year.
.
However, in the event it is determined that the Special Tax Liability for
Improvement Area B includes delinquent Special Taxes from Parcels in
Category III from the prior Fiscal Year, the City shall determine the amount of
delinquent taxes that arose from such Parcels and identify the owner(s). The
amount of delinquent Special Taxes, if any, that arose from the applicable
owner(s) shall first be divided by the total Category III Acres owned by such
owner(s) and collected from the applicable owner(s) with the remaining portion
of the Special Tax Liability not related to delinquent Special Taxes to be
/ 7~ -/1
/7/1 - '-/1
Community Facilities DistrICt No 97-2
July 1. 1998
?age 10
SD€::;a i ax r-:::::)-:
""""
collected from all Parcels in Category III according to the proceou-e set b:;;-, ,_
the Step 1 and Step 2 above.
"""\
"""\
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-/ 7~ -/S-
/7/f-J/2-
RESOLUTION NO. 19159
RESOLUTION OFTHE CITY COUNCIL OF THE CITY OF CHULA
VISTA. MAKING CERTAIN PRELIMINARY FINDINGS. PASSING
UPON PROTESTS AND APPROVING THE SPECIAL TAX REPORT
FOR COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT)
WHEREAS. the City Council of the City of Chula Vista (the "City Council"). has
previously declared its intention and ordered the preparation of a Special Tax Report relating
to the initiation of proceedings to create a Community Facilities District pursuant to the terms
and provisions of the "Mello-Roos Community Facilities Act of 1982." being Chapter 2.5. Part
1. Division 2. Title 5 of the Government Code of the State of California (the" Act") and the
City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers
reserved by the City of Chula Vista under Sections 3. 5 and 7 of Article XI of the Constitution
of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to
collectively as the "Community Facilities District Law"). This Community Facilities District
shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) (the "District"); and
WHEREAS. notice of a public hearing relating to the establishment of the District. the
extent of the District. the furnishing of certain services and all other related matters has been
given. and a Special Tax Report. as ordered by this City Council. has been presented to this
City Council and has been made a part of the record of the hearing on the Resolution of
Intention to establish said District; and
WHEREAS. all communications relating to the establishment of the -oistrict. the
proposed services and the proposed rate and method of apportionment of special tax have
been presented. and it has further been determined that a majority protest as defined by law
has not been received against these proceedings; and
WHEREAS, the Special Tax Report as now submitted further containing changes and
modifications to the proceedings. as applicable. is hereby approved; and
WHEREAS, inasmuch as there have been less than twelve (12) registered voters
residing within the territory of the District for at least the preceding ninety (90l days. this
legislative body is desirous to submit the levy of the required special tax to the landowners
of the District. said landowners being the Qualified electors as authorized by law.
NOW. THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The written protests received, if any, do not represent a majority protest
as defined by the applicable provisions of the Community Facilities District Law.
SECTION 3. The Special Tax Report, as now submitted. shall stand as the Special Tax
Report for all future proceedings and all terms and contents are approved as set forth therein.
/713-/
,
/' \
').
Resolution 19159
Page 2
SECTION 4. It is hereby determined by this legislative bOdy to proceed with the
formation and establishment of the District, formally known and designated as "COMMUNITY
FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT)."
SECTION 5. It is hereby further determined by this legislative body that all
proceedings prior hereto were valid and taken in conformity with the requirements of law, and
specifically the provisions of the Community Facilities District Law, and this finding is made
pursuant to the provisions and authorization of Section 53325.1 of the Government Code of
the State of California. It is further determined by this legislative body that the District as
proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding
the Establishment of Community Facilities Districts, as amended.
SECTION 6. It is determined by this legislative body that less than twelve (12)
registered voters have resided within the territory of the District for each of the ninety (90)
days preceding the close of the public hearing. Consequently this legislative body further
determines that pursuant to the Community Facilities District Law the qualified electors shall
be the landowners of the District and each landowner who is the owner of record as of the
close of the public hearing. or the authorized representative thereof, shall have one vote for
each acre or portion of an acre of land that she or he owns within the District.
SECTION 7. It is determined by this legislative body that the time limit specified by
the Community Facilities District Law for conducting an election to submit the levy of the
special taxes to the qualified electors of the District and the requirements for impartial analysis
and ballot arguments have been waived with the unanimous consent of the qualified electors
of the District. It is further determined by this legislative body that the City Clerk, acting as
the election official, has consented to conducting any required election on a date which is less
than 125 days following the adoption of any resolution forming and establishing the District.
SECTION 8. It is hereby further determined by this legislative body that the proposed
public services are necessary to meet increased demands placed upon the City as a result of
development and/or rehabilitation occurring in the District.
Presented by
Approved as to form by
John
Publi
/76,2-
Resolution 191 59
Page 3
~,
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of September, 1998, by the following vote:
AYES:
Councilmembers:
Padilla, Rindone, Salas and Horton
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ABSTAIN:
Councilmembers:
Moot
J'-Mhff;,/~
Shirley Ho on, Mayor
ATTEST:
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 19159 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 15'" day of September, 1998.
Executed this 15'" day of September, 199B.
'i::JAgJl~t!!-
/ ;/3-.3
,-....
RESOLUTION NO. 19160
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, FORMING AND ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT lAND
AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO
THE QUALIFIED ELECTORS
WHEREAS, a public hearing has been held and concluded. and the City Council of the
City of Chula Vista (the "City Council"), is desirous at this time to proceed with the
establishment of a community facilities district, pursuant to the terms and provisions of the
"Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title
5 of the Government Code of the State of California (the "Act") and the City of Chula Vista
Community Facilities District Ordinance enacted pursuant to the powers reserved by the City
of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of
California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the
"Community Facilities District Law"). Such Community Facilities District shall hereinafter be
referred to as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT) (the "District"); and
WHEREAS, this legislative body has further declared its intent that the authorized
public services be financed through the levy of special taxes; and
,"-
.
WHEREAS, at any time before or after the formation of the District, this legislative
body may accept advances of funds and/or work in kind from any source; however, no
reimbursement and/or repayment shall be made for said advances until expressly set forth by
agreement and/or Resolution of this legislative body setting forth the amount, terms and
conditions for any reimbursement and/or repayment; and
WHEREAS, all communications relating to the establishment of the District, the
proposed services and the proposed rate and method of apportionment of the special tax have
been presented, and it has further been determined that a majority protest as defined by law
has not been received against these proceedings.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
RECITALS
SECTION 1. The above recitals are all true and correct.
FINDINGS AND DETERMINATIONS
,
,_J
SECTION 2. All findings and determinations of this legislative body made in that
certain Resolution entitled "RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND
APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY FACILITIES DISTRICT NO. 97-2
(PRESERVE MAINTENANCE DISTRICT)" are incorporated herein as if set forth at this point.
/7t!.-1
.)
Resolution 19160
Page 2
FINAL REPORT
SECTION 3. The Special Tax Report, as now submitted, shall stand as the Special Tax
Report for all future proceedings and all terms and contents are approved as set forth therein.
NAME OF DISTRICT
SECTION 4. This legislative body does hereby establish and declare the formation of
the Community Facilities District known and designated as COMMUNITY FACILITIES
DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICTI. Within such District this
legislative body does hereby further establish two improvement areas known and designated
as Improvement Area "A" and Improvement Area "B".
BOUNDARIES OF DISTRICT AND IMPROVEMENT AREAS
SECTION 5. The boundaries and parcels of land in which which special taxes will be
levied in order to pay the costs and expenses for said public services are generally described
as follows:
All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO.
97.2 (PRESERVE MAINTENANCE DISTRICT). as shown on a boundary map as
previously approved by this legislative body, said map designated by the name
of this Community Facilities District, a copy of which is on file in the Office of
the City Clerk, known as Document No. C098-142, Exhibit A. The boundary
map of the proposed District has been filed pursuant to Sections 3111 and
3113 of the Streets and Highways Code of the State of California in the Office
of the County Recorder of the County of San Diego, at Page 50 of Book 32 of
the Book of Maps of Assessment and Community Facilities Districts for said
County.
The boundaries and parcels of land within Improvement Area "A" and Improvement Area "B"
are generally described as follows:
All property within the boundaries of each respective Improvement Area as
shown on the Improvement Areas Map of COMMUNITY FACILITIES DISTRICT
NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), a copy of which is included
in the Special Tax Report and is on file in the Office of the City Clerk, known
as Document No. C098-142.
DESCRIPTION OF SERVICES
SECTION 6. The proposed services to be provided to serve the District are generally
described as follows:
The monitoring, maintenance, operation and management of public property in
which the City has a property interest and which conforms to the requirements
of the Ordinance or private property within the Otay Ranch Preserve which is
required by the Preserve Owner/Manager to be maintained as open space or for
habitat maintenance or both. Such property may be located outside the
boundaries of the District and outside the jurisdictional boundaries of the City
/7r! -2-
Resolution 19160
Page 3
.---.
of Chula Vista. Such services shall not include the maintenance, operation
and/or management of any property owned, maintained, operated and/or
managed by the federal and/or state government as open space, habitat
maintenance and/or for any other purpose.
For a full and complete description of the public services, reference is made to the final
Special Tax Report, a copy of which is on file in the Office of the City Clerk, known as
Document No. C098-142. For all particulars, reference is made to said Special Tax Report.
SPECIAL TAX
,-.,
SECTION 7. Except where funds are otherwise available special taxes, secured by
recordation of a continuing lien against all non-exempt real property in the respective
Improvement Areas of the District, are hereby authorized. subject to voter approval, to be
levied annually within the boundaries of said Improvement Areas of suc~ District. The
proposed special taxes to be levied within the Improvement Areas of said District has not been
precluded by majority protest pursuant to Section 53324 of the Government Code of the State
of California. For particulars as to the rate and method of apportionment of the proposed
special taxes (the "Special Tax Formula") which is on file in the Office of the City Clerk,
known as Document No. C098-142. Section 4, which sets forth in sufficient detail the
method of apportionment to allow each landowner or resident within each respective
Improvement Area to estimate the maximum amount that said person will have to pay. Said
special taxes shall be utilized to pay for the Special Tax Liability of the District as such term
is defined in the Special Tax Formula.
The special taxes herein authorized shall be collected in the same manner as ad
valorem property taxes and shall be subject to the same penalties, procedure. sale and lien
priority in any case of delinquency, as applicable for ad valorem taxes; however, !IS applicable.
this legislative body may, by resolution, establish and adopt an alternate or supplemental
procedure as necessary. Any special taxes that may not be collected on the County tax roll
shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista,
acting for and on behalf of the District.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the
Streets and Highways Code of the State of California, a continuing lien to secure each levy
of the special tax shall attach to all non-exempt real property in the District and this lien shall
continue in force and effect until the special tax obligation is prepaid and permanently satisfied
and the lien canceled in accordance with law or until collection of the tax by the legislative
body ceases.
PREPARATION OF ANNUAL TAX ROLL
SECTION 8. The name. address and telephone number of the office, department or
bureau which will be responsible for preparing annually a current roll of special tax levy
obligations by Assessor's parcel number and which shall be responsible for estimating future
special tax levies pursuant to Section 53340.1 of the Government Code of the State of
California. are as follows:
FINANCE DEPARTMENT
CITY OF CHULA VISTA
276 FOURTH AVENUE
CHULA VISTA, CA 91910
/7t~g
Resolution 19160
Page 4
APPEALS AND INTERPRETATION PROCEDURE
SECTION 9. Any landowner or resident who feels that the amount of the special tax
levied against his or her property or the Special Tax Formula as applied to his or her property
is in error may file a notice with the City Council appealing the levy of the special tax. An
appeals panel of three members, as appointed by the City Council, will then meet and
promptly review the appeal, and if necessary in the determination of the appeals panel, such
panel may meet with the appellant. If the findings of the appeals panel verify that the special
tax should be modified or changed, a recommendation at that time will be made by the
appeals panel to the City Council and, as appropriate, the City Council may order that the
special tax levy be corrected, and if applicable in any case, a refund shall be granted.
Interpretations may be made by the City Council by Resolution for purposes of
clarifying any vagueness or ambiguity as it relates to any category. zone, rate or definition
applicable to these proceedings.
ELECTION
SECTION 10. This legislative body herewith submits the levy of the special taxes
to the qualified electors of each Improvement Area within the District, said electors being the
landowners of each respective Improvement Area, with each landowner having one (1) vote
for each acre or portion thereof of land which he or she owns within each respective
Improvement Area of the District.
This legislative body hereby further directs that the ballot propositions relating to the
levy of the above referenced special taxes within each respective Improvement Area be
combined and consolidated with the proposition set forth in Section 11 below relating to the
establishment of an appropriations limit for the District.
The proposition related to the levy of the special tax shall, together with a proposition
to establish an appropriations limit for the District, shall be submitted to the qualified voters
at a special election to be held on THE EARLIEST OF THE FOllOWING: (a) DECEMBER 1,
1998; (b) THE TENTH BUSINESS DAY FOllOWING THE DATE UPON WHICH THE CITY IS
NOTIFIED OF THE CLOSE OF THE EXCHANGE OF A CERTAIN PORTION OF ASSESSOR'S
PARCEL NO. 642-071-12 FROM OTAY PROJECT, llC-OVP TO McMilLIN - D.A. AMERICA
AND A CERTAIN PORTION OF ASSESSOR'S PARCEL NO. 642-100-01 FROM McMllLlN-
D.A. AMERICA TO OTAY PROJECT, llC-OVP, OR (c) SUCH OTHER DATE AS THE
QUALIFIED ELECTORS AND THE CITY CLERK MAY MUTUAllY AGREE and said election shall
be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election
Official"). If the proposition for the levy of the special tax receive the approval of more than
two-thirds (2/3) of the votes cast on the proposition the special tax may be levied as provided
for in this Resolution.
BAllOT
SECTION 11. The ballot proposals to be submitted to the qualified voters at the
election shall generally be as follows:
PROPOSITION A
Shall COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) of the City of Chula Vista be authorized to levy
special taxes within Improvement Area" A" thereof pursuant to the rate and
/ ?e ~ ~
Resolution 19160
Page 5
,/"""'
method of apportionment of special taxes (the "Special Tax Formula") set forth
in Resolution No.19160' to finance the Special Tax Liability as defined in the
Special Tax Formula?
PROPOSITION S
Shall COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE
MAINTENANCE DISTRICT) of the City of Chula Vista be authorized to levy
special taxes within Improvement Area "s" thereof pursuant to the rate and
method of apportionment of special taxes (the "Special Tax Formula") set forth
in Resolution No.19 160 to finance the Special Tax Liability as defined in the
Special Tax Formula?
PROPOSITION C
Shall COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT) of the City of Chula Vista establish an Article XIII B appropriations
limit equal to $173,212.60?
VOTE
SECTION 12. The appropriate mark placed in the voting square after the word "YES"
shall be counted in favor of the adoption of the proposition, and the appropriate mark placed
in the voting square after the word "NO" in the manner as authorized, shall be counted against
the adoption of said proposition.
ELECTION PROCEDURE
SECTION 13. The Election Official is hereby authorized to take any and all steps
necessary for holding the above election. The Election Official shall perform and render all
services and proceedings incidental to and connected with the conduct of the election,
including but not limited to. the following:
1. Prepare and furnish to the necessary election supplies for the conduct of the
election.
2. Cause to be printed the requisite number of official ballots, tally sheets and
other necessary forms.
3. Furnish and address official ballots for the qualified electors of the Community
Facilities District.
4. Cause the official ballots to be mailed and/or delivered, as required by law.
5. Receive the returns of the election and supplies.
6. Sort and assemble the election material and supplies in preparation for the
canvassing of the returns.
7. Canvass the returns of the election.
8. Furnish a tabulation of the number of votes given in the election.
9. Conduct and handle all other matters relating to the proceedings and conduct
of the election in the manner and form as required by law.
/ 7f ~5"
Resolution 19160
Page 6
Presented by
Approved as to form by
- ,
g~c
J Kaheny =--.J
ity Anorney ~
/7t ~.b
Resolution 19160
Page 7
r.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 15th day of September, 1998, by the following vote:
AYES:
Councilmembers:
Padilla, Rindone, Salas and Horton
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ABSTAIN:
Council members:
Moot
AkAhf&bDi
Shirley Ho on, Mayor
ATTEST:
,,_..
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Beverly A. Authelet. City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 19160 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 15'" day of September, 1998.
Executed this 15'" day of September. 1998.
/ ?{' ,. 7
Revised A-113
Continued from 9/1/98
COUNCIL AGENDA STATEMENT
Item 18
Meeting Date 9/15/98
ITEM TITLE:
A.
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 98-1 (Interim
Open Space Maintenance District [Otay Project, LLC-OVP-SP A One,
Villages 1 West, 2, 2 West, 6, 7, & Planning Area 12]) pursuant to the
provisions of the "Mello-Roos Community Facilities Act of 1982", for the
purpose of financing certain public services through the levy of a special
tax to pay for all or a portion of such public services and the intent to
authorize a special tax to pay for all or a portion of such public services.
B. Resolution 19161 ofthe City Council of the City ofChula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Community Facilities District Report for
Community Facilities District No. 98-1 (Interim Open Space Mainte-
nance District [Otay Project, LLC-OVP-SPA One, Villages 1 West, 2,
2 West, 6, 7, & Planning Area 12]).
C. Resolution 19162 of the City Council of the City ofChula
Vista, California, establishing Community Facilities District No. 98-1
(Interim Open Space Maintenance District [Otay Project, LLC-OVP-
SPA One, Villages 1 West, 2, 2 West, 6, 7, & Planning Area 12]) and
authorizing the submittal of levy of a special tax therein to finance
certain services to the qualified electors.
SUBMITTED BY: Director of Public Works ~
REVIEWED BY: City Manager ~ ~ ~ '\ (4/5ths Vote: Yes_NoX)
On July 28,1998, Council approved the resolutUofintention to form Community Facilities Districts
No. 98-1 and set the public hearing for September 1, 1998. This district will fund the perpetual operation
and maintenance of open space slopes, drainage channels, detention basins, medians and parkways built
in conjunction with Otay Ranch SPA One, Villages 1 and 5 but providing benefit to areas located outside
SPA One. Tonight's action will continue the formal proceedings leading to the establishment of
Community Facilities Districts No. 98-1.
RECOMMENDATION: That Council:
1) Open the hearing for CFD 98-1, take testimony, close the public hearing;
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 98-1 or the owners of land within CFD No. 98-1
3) Approve the resolution making preliminary findings, passing upon protests and approving
the CFD No. 98-1 report.
Icgft~ t
Page 2, Item 18
Meeting Date 9/15/98
4) Approve the resolution establishing CFD No. 98-1 and submitting the levy of a special
tax to finance certain services to the qualified electors of CFD No. 98-1.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The proposed district would provide the necessary funding for the operation and maintenance of public
landscaping improvements by levying an annual "special tax", which is collected from the property
owners in conjunction with the property taxes. There is no direct cost to the City. All expenses related
to the district administration (including levying and collecting the special taxes) are funded by the district.
The purpose of CFD No. 98-1 is to guarantee developer payments for the landscaping improvements
being constructed with SPA I but that are within future projects. For example, the slopes on the west side
of Pas eo Ranchero are being constructed now and will require landscaping. CFD 98-1 will provide for
the maintenance of this area until development occurs west of Paseo Ranchero. When the western parcel
develops, a new or modified permanent district will have to be created to maintain the open space for the
new entire Village.
The developers propose to deposit with the City, at the beginning of each fiscal year, the amounts required
to maintain said facilities during that year. They also agree to the formation of the proposed CFDs, which
include areas outside SPA One, as a backup funding mechanism. In the event any of the developers
default in their obligation, the City will levy and collect special taxes for funding said activities.
Staff, the legal counsel, and the special tax consultant have reviewed the proposed taxing methodology
and consider it ready for Council approval.
Area of Benefit
The proposed boundary of CFD No. 98-1 encompasses all parcels located within the Otay Ranch, Villages
1 West, 2, 2 West, 6 and 7 owned by the Otay Ranch Company (total acreage =1,265, see Exhibit 1).
Descriotion of facilities
The proposed CFD 98-1 will fund the fair share of operating and maintaining the public landscaping
associated with facilities to be constructed in conjunction with the development of the Otay Ranch SPA
One but that provide benefit to areas beyond the SPA One boundaries. Such improvements include the
pro-rata share of Telegraph Canyon Channel, Poggi Canyon Channel, and medians and parkways along
Olympic Parkway and Paseo Ranchero. A complete list of the facilities to be maintained by the district
is presented in Exhibit 2.
Cost Estimate
The estimated annual budget for CFD No. 98-1 is $137,849. This budget includes a total of$125,753
for maintenance, $10,896 for administration by Parks and Open Space and $1,200 for CFD administration
by the Engineering Division (preparing reports, levying and collecting taxes, and public assistance).
Staff (Parks, Open Space, and Engineering) has reviewed and approved the proposed budget. Exhibit
3 contains a detailed annual budget for the district. The unit prices used in determining the budget are
based on historical costs of maintenance of similar improvements within existing Open Space Districts
in the City.
!~A-.:z
COUNCIL AGENDA STATEMENT
I"'"'"
Item~
Meeting Date 9/1198
ITEM TITLE:
A.
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 98-1 (Interim
Open Space Maintenance District [Otay Project, LLC-OVP-SP A One,
Villages 1 West, 2, 2 West, 6, 7, & Planning Area 12]) pursuant to
the provisions of the "Mello-Roos Community Facilities Act of 1982", for
the purpose of financing certain public services through the levy of a
special tax to pay for all or a portion of such public services and the intent
to authorize a special tax to pay for all or a portion of such public
services.
I"'"'"
B. Resolution! 9/ <f;! of the City Council of the City ofChula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Community Facilities District Report for
Community Facilities District No. 98-1 (Interim Open Space Mainte-
nance District [Otay Project, LLC-OVP-SPA One, Villages 1 West,
2,2 West, 6, 7, & Planning Area 12]).
C.' Resolution J? / ctJ.2... of the City Councii"ofthe City ofChula
Vista, CalifornIa, establishing Community Facilities District No. 98-1
(Interim Open Space Maintenance District [Otay Project, LLC-OVP-
SPA One, Villages 1 West, 2, 2 West, 6, 7, & Planning Area 12])
and authorizing the submittal of levy of a special tax therein to.finance
certain services to the qualified electors.
SUBMITTED BY: Director of Public Work~
REVIEWED BY: City Manag~ ~ ~ (4/5ths Vote: Yes_NoX)
On July 28, 1998, Council approved the resol~on of intention to form Community Facilities Districts
No. 98-] and set the public hearing for September I, 1998. This district will fund the perpetual operation
and maintenance of open space slopes, drainage channels, detention basins, medians and parkways built
in conjunction with Otay Ranch SPA One, Villages I and 5 but providing benefit to areas located outside
SPA One. Tonight's action will continue the formal proceedings leading to the establishment of
Community Facilities Districts No. 98-1.
RECOMMENDATION: That Council:
I) Open the hearing for CFD 98-1, take testimony, close the public hearing;
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 98-1 or the owners of land within CFD No. 98-1
r-
3)
Approve the resolution making preliminary findings, passing upon protests and approving
the CFD No. 98-1 report.
/0 III
Page 2, Item~/
Meeting Date 9/1198
4)
Approve the resolution establishing CFD No. 98-1 and submitting the levy of a special
tax to finance certain services to the qualified electors of CFD No. 98-1.
.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
The proposed district would provide the necessary funding for the operation and maintenance of public
landscaping improvements by levying an annual . special tax", which is collected from the property
owners in conjunction with the property taxes. There is no direct cost to the City. All expenses related
to the district administration (including levying and collecting the special taxes) are funded by the
district.
The purpose of CFD No. 98-1 is to guarantee developer payments for the landscaping improvements
being constructed with SPA I but that are within future projects. For example, the slopes on the west
side of Paseo Ranchero are being constructed now and will require landscaping. CFD 98-1 will provide
for the m.intp.n.n"e of this area until development occurs west of Paseo Ranchero. When the western
parcel develops, a new or modified permanent district will have to be created to maintain the open space
for the new entire Village.
The developers propose to deposit with the City, at the beginning of each fIScal year, the amounts
required to maintain said facilities during that year. They also agree to the formation of the proposed
CFDs, which include areas outside SPA One, as a backup funding mechanism. In the event any of the
developers default in their obligation, the City will levy and collect special taxes for funding said
activities.
......
-
Staff, the legal counsel, and the special tax consultant have reviewed the proposed taxing methodology
and consider it ready for Council approval.
Area of Benefit
The proposed boundary of CFD No. 98-1 encompasses all parcels I ated within the Otay Ranch,
Villages 1 West, 2,2 West, 6 and 7 owned by the Otay Ranch Comp y (total acreage = 1,265, see
Exhibit I).
Description of facilities
The proposed CFD 98-1 will fund the fair share of operating and maintaining the public landscaping
associated with facilities to be constructed in conjunction with the development of the Otay Ranch SPA
One but that provide benefit to areas beyond the SPA One boundaries. Such improvements include the
pro-rata share of Telegraph Canyon Channel, Poggi Canyon Channel, and medians and parkways along
Olympic Parkway and Paseo Ranchero. A complete list of the facilities to be maintained by the district
is presented in Exhibit 2.
Cost Estimate
The estimated annual budget for CFD No. 98-1 is $137,849. This budget includes a total of $125,753
for maintenance, $10,896 for administration by Parks and Open Space and $1,200 for CFD
administration by the Engineering Division (preparing reports, levying and collecting taxes, and public
assistance) .
-
--
/ %,,/1- 2-
Page 3, Item 18
Meeting Date 9/15/98
Proposed Soecial Tax and Collection
CFD No 98-1 has only one category of taxation ($108.95 per acre of vacant land). At the beginning of
each fiscal year, the City will calculate and notify the developers of the amount of the annual budget
(maintenance cost plus reserve). The developers have the option of depositing said amount with the City,
prior to July 15, in which case the tax will not be levied. Ifthe deposit is not received by that date, the
City will proceed to levy and collect the corresponding tax.
The maximum tax rate has been estimated by the dividing the estimated annual budget at buildout (plus
a reserve allocation of 10% of the annual budget) by the total acreage of all parcels within the district.
Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment of
the Special Taxes":
. The maximum special taxes may be adjusted each year for inflation using a factor equal to the
lesser of the annual change of the San Diego Consumer Price Index or the California Fourth
Quarter Per Capita Personal Income.
. The "City of Chula Vista Community Facilities District Ordinance" requires that the developer
maintain the landscaping improvements for a minimum period of one year. During this period,
the City will collect the special taxes with the purpose of building up an operating reserve not to
exceed 100% of the annual budget. The special tax formula provides that the annual budget for
any year may include an amount deemed necessary to maintain an adequate level of reserve fund.
. The annual budgets used to calculate the tax rates are only the "best estimates" of the cost of
maintenance. There is always a risk that actual expenses in future years may be higher than
the total maximum collectible taxes. This may result in reduced levels of maintenance of the
landscaping, unless the developers provide for the deficit or approve an increase in the tax
rates (213 voter's approval is required) which is considered unlikely. Staff believes, however,
that the proposed tax rates contain enough of a cushion in the reserve and the inflation
adjustment to minimize future problems.
Resolutions
There is one public hearing and two resolutions in today's agenda which, if approved, would
accomplish the following:
*
The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
*
The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements oflaw.
. Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CFD 98-1.
. Passing on any protest received.
. Approving the report.
IS-Ar- 3
Page 4, Item 18
Meeting Date 9/15/98
*
The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the district and authorizing the submittal of the
levy of special tax to the qualified electors of the district on the IS~RI!ll1l~~I!I~_I!I!
~III, 2) ten (10) business days after the City is notified of the close of the land exchange
between the Otay Ranch Company and McMillin Otay Ranch, or 3) such other date as the
qualified electors and the City Clerk may mutually agree. A resolution certifying the results
of the election would be brought before Council on the first available Council meeting
following this election.
FISCAL IMP ACT: All costs of formation of the district are being borne by the developers and
included in the cost for the companion CFD No. 97-1 (SPA One). The ongoing administration would
be funded entirely by the district. The City will receive the benefit of full cost recovery for staff cost
involved in district administration (estimated annual staff cost of $1 0,896 for the Operations Division
(Parks Maintenance staff) and $1,200 for the Engineering Division staff).
Exhibits:
1-
2-
3 -
Boundary Map
List of facilities to be maintained
Cost Estimate
Attachments
A-
Special Tax Report CPD 98-1
September 10, 1998
H:\HOME\ENGINEER\AGENDA \98.1PH _1.LDT
t1i-A -1
~
Page 3, Itemd
Meeting Date 9/1/98
Staff (Parks and Engineering) has reviewed and approved the proposed budget. Exhibit 3 contains a
detailed annual budget for the district. The unit prices used in determining the budget are based on
historical costs of maintenance of similar improvements within existing Open Space Districts in the City.
Prooosed Soecial Tax and Collection
CFD No 98-1 has only one category of taxation ($108.95 per acre of vacant land). At the beginning
of each fisca1 year, the City will calculate and notify the developers of the amount of the annual budget
(maintenance cost plus reserve). The developers have the option of depositing said amount with the
City, prior to July 15, in which case the tax will not be levied. If the deposit is not received by that
date, the City will proceed to levy and collect the corresponding tax.
The maximum tax rate has been esrimotl'd by dividing the estimated annual budget at buildout (plus a
reserve allocation of 10% of the annual budget) by the total acreage of all parcels within the district.
Following is a brief discussion of some key issues regarding the MRate and Method of Apportionment
of the Special TaxesM:
. The maximum special taxes may be adjusted each year for inflation using a factor equal to the
lesser of the annual change of the San Diego Consumer Price Index or the California Fourth
Quarter Per Capita Personal Income. .
.
The MCity of Chula Vista Community Facilities District Ordirulnr.e" requires that the developer
m.inUlin the I.ntl<r'lping improvements for a minimnm period of one year. During this period,
the City will collect the special taxes with the purpose of building up an operating reserve not
to exceed 100% of the annua1 budget. The special tax formula provides that the annual budget
for any year may include an amouot dPeIned necessary to maintain an adequate level oheserve
fund.
~
. The annual budgets used to calculate the tax rates are only the Mbest estimates" of the cost
of maintenance. There is always a risk that actual expenses in future years may be higher
than the total maximum collectible taxes. This may result in reduced levels of maintenance
of the landscaping, unless the developers provide for the deficit or approve an increase in
the tax rates (213 voter's approval is required) which is considered unlikely. Staff believes,
however, that the proposed tax rates contain enough of a cushion in the reserve and the
inflation adjustment to minimi71' future problems.
Resolutions
There is one public hearing and two resolutions in today's agenda which, if approved, would
accomplish the following:
.
The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
.
The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements ofJaw.
~
/0#3
Page 4, Hemd
Meeting Date 9/1/98
.
Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CDF 98-1.
Passing on any protest received.
Approving the report.
~
.,
.
.
.
The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the district and authorizing the submittal of the
levy of special tax to the qualified electors of the district on the later of I) September 8, 1998,
or 2) ten (10) business days after the City is notified of the close of the land exchange between
the Otay Ranch Company and McMillin Otay Ranch, or 3) such other date as the qualified
electors and the City Clerk may mutually agree. A resolution certifying the results of the
election would be brought before Council on the first available Council meeting following this
election.
FISCAL IMPACT: All costs of formation of the district are being borne by the developers and
included in the cost (or the companion CFD No. 97-1 (SPA One). The ongoing admini<tration
would be funded entirely by the district. The City will receive the benefit of full cost recovery for
staff cost involved in district administration (estimated annual staff cost of $10,896 for the
Operations Division (parks Maintenance staff) and $1,200 for the Engineering Division staff).
Exhibits:
1-
2 -
3-
BoundaIy Map
List of facilities to be maintlli~d
Cost Estimate
....
-
Attachments
A - . Special Tax Report CFD 98-1
AuJUSl20. 1998
H:\HOME\ENGINE.ER\AGENDA\98-1PH_t.lJ)T
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Exhibit 2
List of Facilities to be Maintained, CFD 98-1
Part Ii - Jescription of Facilities and Services
.......,
Sectio:1 53311.5 of the Act and the provisions of the Ordinance provide br alternate k;ancing
of cer..ain services in developing areas. Since there are no other means of financing available
to the City, and sirlce the services are required to meet additional deman:::!s on the City as a
result of development occurring adjacent to and within the proposed District, the fina:1cing of
the pro:J:lsed services is in accordance with Section 53313.5 of the Act and the provisions of
the Ordinance.
The :Jicposed services include all direct, administrative, a:1:i incidental annual costs and
expenses related to providing for the maintenance and servicing of public facilities including
irrigation, cultivation, installation and replacement of plant material, tree trimming and
necessary supplies; personnel,utility and equipment costs; contract services where applicable;
. maintenance and servicing . of parks, parkway landscaping and medians, drainage facilities,
pedestrian bridges and open space slopes,.trails and walls, including:
Parkway Landscaping and Medians which includes:
a). Median.inTelegraph Canyon Road between the western property boundary of Village
One West and PasE!O Ranchero (not to exceed 50% of maintenance cost).
b) Parkway in Telegraph Canyon Road (southern side) between the western propertY"""'\
boundary of Village One West and Paseo Ranchero.. .
c) Median in Paseo Ranchero between Telegraph Canyon Road and Olympic Parkway
- __On .(noLto exceed 50% of maintenance cost).
d) Parkway in Paseo Ranchero (western side) between Telegraph Canyon Road and
Olympic Parkway. .
e) A pro-rata share of the median in Olympic Parkway between Paseo Ranchero and
the eastern Otay Project, LLC property boundary (not to exceed 50% of maintenance
cost). . _ _. _ _ .. . ..
. f) Apro-rafashare of the Parkway in Olympic Parkway (southern side) between Paseo
Ranchero and the eastern Otay Project, LLC property boundary. _
.-Dpen Space SlopeS-Include:"
a) . Temporary Open Space Slopes west of 'paseo Ranchero between Telegraph
Canyon Road and Olympic Parkway (within Village One WeSt).
b) Temporary Open Space Slopes south .of Olympic Parkway between Paseo
Rancher.o and La Media Road (withinVillage Two)...
Drainage Facilities which include:
- ~ .--_. - - --.-,--. .... -. ~- --- --.. .- - - - .--
a) A pro-rata share of the detention basin and channel in the Telegraph Canyor"'"'.
. drainage area between the western property boundary in Village One West and
Paseo Ranchero (within Otay Project, LLC ownership).
M:/$proje::tlchulavistafCFD98-1.doc
$ /6'/}- 0
.
.
.
/51</-1115''- Z (c.oo>4-.)
:.) A prc.-:-a:a share OT the detention basin an:J =ha:""i~:el in the ?:J;di Ca;'1YD~ :J~2j:l::2e
area be:ween the western property boundary in Village TW:J west and the eastern
property b:J:.Jndary (within Otay Proje:;!, LLC owne~ship).
Pede~ian Bridges Which include:
8) A pro-ra~a share of the bridge between Villages One and Two
Mainte:;ance shall include the furnishing of services and materials for the ordinary an:! usual
operaii:J:1, mainte;-,a:1ce and servicing of any improvement O~ appurtenant facilities, including
repair, removal or replacement of all or any part of the improvement or appurtenant facilities,
providing for the life, growth, health and beauty of the landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of
trimmings, rubbish, debris and other .solid waste. Maintenance also means the furnishing of
water for the irrigation of the landscaping, the installation of planting or landscaping, or the
installation or construction of supplemental facilities including any facilities which are necessary
. or convenient for the maintenance of eligible facilities.
The foregoing sen'icesshali be provided by the City, either with its own forces or by contract
with third parties, or any combination thereof, as determined by the City.
..~ -_._~...- - ---_.-- ~-.---
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ATTACHMENT A ~ .'\"
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 98-1
Interim Open Space Maintenance District
(Otay Project, LLC-OVP-SPA One, Villages 1 West &
FOR THE
CITY OF CHULA VISTA
~~~
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CI1Y OF
CHUlA VISfA
Prepared By
Berryman & Henigar
JULY 1, 1998
Project No. 14358.00
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COMMUNITY FACILITIES DISTRICT NO. 98-1
Interim Open Space Maintenance District
City of Chula Vista
"""'"
TABLE OF CONTENTS
Introduction.... ..... ........... ................ ........ ... ......................................................... ...1
Description of District .............................................. '" .............. ........................ ..... ........1
Description of Facilities .................................... .................................... ...... ... ... ..3
Cost Estimate ....................................................... ... ... ..................... .... ........ .. ... ...5
Rate and Method of Apportionment............................................................. ...........6
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Community Facility District No. 98-1
July 1, 1998
Page i
Special Tax Report
COMMUNITY FACILITIES DISTRICT NO. 98-1
Interim Open Space Maintenance District (Otay Ranch)
City of Chula Vista
INTRODUCTION
The City of Chula Vista (City) has been requested to initiate proceedings to establish a
Community Facilities District to include that property commonly known as all or portions
of Otay Ranch, Villages One West, Two West, and portions of Villages Two, Six, Seven
and Planning Area 12 for the purpose of providing services for the maintenance of its
proportionate share of medians, drainage facilities, parkways, perimeter slope areas,
and trails, which will be constructed with the Otay Ranch - SPA One, Villages One
West and Two until a permanent financing plan is established for the maintenance of
those facilities.
The proposed District is located in the City of Chula Vista, County of San Diego, State
of California, as depicted on a reduced map of the boundaries thereof, Exhibit A,
Boundary Map, included herein.
The City Council adopted a resolution entitled "Resolution of Intention to Establish a
Community Facilities District", Resolution No. declaring its intention to form the
District and ordered the preparation of a report describing the proposed services to be
financed by the District if it is formed. The proceedings are being conducted in
a=rdance with the provisions of the "Mello Roos Community Facilities Act of 1982,"
being Chapter 2.5, Part 1, Division 2, Title 5, commencing with Section 53311, of the
Government Code of the State of California (the Act) and the City of Chula Vista
Community Facilities District Ordinance (the "Ordinance") being Ordinance No.
enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of
Article XI of the Constitution of the State of California and the Charter of the City. The
report has been prepared by, or under the direction of the Director of Public Works and
other such officers responsible for the providing of the services to be financed by the
proposed District. The report has been prepared in accordance with Section 53321.5
of the Act and includes among other information:
a) A description of the maintenance services which are required to adequately
meet the needs of the District. (Part II)
b) An estimate of the fair and reasonable cost of providing maintenance
services and all other related costs as provided in Section 53345.3 of the Act.
(Part III)
M:I$projecVchulavistalCFD 98-1.2
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Community Facility District No. 98-1
July 1,1998
Page 1
Special Tax Report
Part I - Description of District
-,
The proposed District Community Facilities District No. 98-1, (Interim Open Space Maintenance
District - Otay Ranch) as shown in Exhibit A and includes the following Assessor's Parcel
Numbers:
Assessor's Parcel Number Owner Acreaqe
643-020-28 Otay Project, LLC-OVP 48.13
641-080-01 (portion of)' Otay Project, LLC-OVP 19.93
641-020-15 Otay Project, LLC-OVP 21.89
641-020-18 Otay Project, LLC-OVP 10.00
641-071-12 (portion of)' Otay Project, LLC-OVP 6308
641-060-04 Otay Project, LLC-OVP 8.16
641-060-06 Otay Project, LLC-OVP 17.91
641-070-01 Otay Project, LLC-OVP 87.86
641-030-16 Otay Project, LLC-OVP 16.50
642-090-01 (portion of)' Otay Project, LLC-OVP 55.30
643-050-01 Otay Project, LLC-OVP 58.24
643-020-10 (portion of) 1 Otay Project, LLC-OVP 99.30
643-060-04 Otay Project, LLC-OVP 268.55 -,
644-030-01 Otay Project, LLC-OVP 311.03
644-030-06 Otay Project, LLC-OVP 255.85
Total Acreage 1,341.73
-,
, Only the acreage within the boundaries of the District is shown above.
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Community Facility District No. 98-1
July 1,1998
Page 3
Special Tax Report
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Part II - Description of Facilities and Services
Section 53311.5 of the Act and the provisions of the Ordinance provide for alternate financing
of certain services in developing areas. Since there are no other means of financing available
to the City, and since the services are required to meet additional demands on the City as a
result of development occurring adjacent to and within the proposed District, the financing of
the proposed services is in accordance with Section 53313.5 of the Act and the provisions of
the Ordinance.
The proposed services include all direct, administrative, and incidental annual costs and
expenses related to providing for the maintenance and servicing of public facilities including
irrigation, cultivation, installation and replacement of plant material, tree trimming and
necessary supplies; personnel, utility and equipment costs; contract services where applicable;
maintenance and servicing of parks, parkway landscaping and medians, drainage facilities,
pedestrian bridges and open space slopes, trails and walls, including:
Parkway Landscaping and Medians which includes:
a) Median in Telegraph Canyon Road between the western property boundary of Village"",,
One West and Paseo Ranchero (not to exceed 50% of maintenance cost).
b) Parkway in Telegraph Canyon Road (southern side) between the western property
boundary of Village One West and Paseo Ranchero.
c) Median in Paseo Ranchero between Telegraph Canyon Road and Olympic Parkway
(not to exceed 50% of maintenance cost).
d) Parkway in Paseo Ranchero (western side) between Telegraph Canyon Road and
Olympic Parkway.
e) A pro-rata share of the median in Olympic Parkway between Paseo Ranchero and
the eastern Otay Project, LLC property boundary (not to exceed 50% of maintenance
cost).
f) A pro-rata share of the Parkway in Olympic Parkway (southern side) between Paseo
Ranchero and the eastern Otay Project, LLC property boundary.
Drainage Facilities which include:
a) A pro-rata share of the detention basin and channel in the Telegraph Canyon
drainage area between the western property boundary in Village One West and
Paseo Ranchero (within Otay Project, LLC ownership).
b) A pro-rata share of the detention basin and channel in the Poggi Canyon drainage
area between the western property boundary in Village Two west and the eastern
property boundary (within Otay Project, LLC ownership).
-.....
M:I$projectlchulavistalCFD98-1.2.doc
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Community Facility District No. 98-1
July 1,1998
Page 4
Special Tax Report
Pedestrian Bridges which include:
a) A pro-rata share of the bridge between Villages One and Two
Maintenance shall include the furnishing of services and materials for the ordinary and usual
operation, maintenance and servicing of any improvement or appurtenant facilities, including
repair, removal or replacement of all or any part of the improvement or appurtenant facilities,
providing for the life, growth, health and beauty of the landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of
trimmings, rubbish, debris and other solid waste. Maintenance also means the furnishing of
water for the irrigation of the landscaping, the installation of planting or landscaping, or the
installation or construction of supplemental facilities including any facilities which are necessary
or convenient for the maintenance of eligible facilities.
The foregoing services shall be provided by the City, either with its own forces or by contract
with third parties, or any combination thereof, as determined by the City.
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Community Facility District No. 98-1
July 1, 1998
Page 5
Special Tax Report
Part III - Cost Estimate
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The estimate of the fair and reasonable cost of the proposed services for Open Space
Maintenance including Administrative Expenses in connection with providing said services, and
all other related costs is deemed to be not greater than $137,849 if all facilities were complete
for the fiscal year ending June 30, 1999.
A detailed breakdown of the estimated cost is included in the appendix of this report.
Each Fiscal Year the City shall cause to be prepared an annual budget showing the estimated
costs of maintenance services, including administration for such Fiscal Year. The budget for
each Fiscal Year may show the proportional annual cost of those maintenance activities which
occur less frequently than on an annual basis.
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Community Facility District No. 98-1
July 1.1998
Page 5
Special Tax Report
Part IV - Rate and Method of Apportionment of Special Taxes
ANNUAL TAX
A Special Tax shall be levied annually on land within Community Facilities District No. 98-1
(Interim Open Space Maintenance District) of the City of Chula Vista (the "District"), and
collected according to the Special Tax Liability determined by the City of Chula Vista (the
"City") through the application of the following procedures. All of the property within the District,
unless otherwise exempted by law or the express provisions of the rate and method of
apportionment expressed below, shall be taxed to the extent and in the manner provided below.
All Special Taxes applicable to Parcels shall be collected in the same manner and at the same
. time as ordinaryad valorem property taxes, and that Special Taxes so levied will be subject to
the same penalties and procedures, sale and lien priority in case of delinquency as is provided
for ad valorem taxes.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of
the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps,
the area as shown on a current recorded subdivision map, parcel map, record of surveyor
other recorded document creating or describing the Parcel. If the preceding maps are not
available, the area shall be determined by the City Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City in
carrying out its duties with respect to the District (including, but not limited to, the levy and
collection of the Special Taxes) including the fees and expenses of its counsel. Any fees of the
County related to the District or the collection of Special Taxes, an allocable share of the
salaries of City staff directly related thereto, any amounts paid by the City from its general fund
with respect to the District, and expenses incurred by the City in undertaking actions to
foreclose on properties for which the payment of Special Taxes is delinquent, and all other
costs and expenses of the City related to the District.
City means the City of Chula Vista
District means the Interim Open Space Maintenance District - SPA One (Villages 1 West, 2, 2
West, 6 & 7) of the Community Facilities District No. 98-1 of the City of Chula Vista.
Facilities means those improvements defined in Part II of the Special Tax Report dated July 1,
1998 for Community Facilities District No. 98-1 of the City of Chula Vista.
Fiscal Year means the period starting on July 1 and ending the following June 30.
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Community Facility District No. 98-1
July 1, 1998
Page 7
Special Tax Report
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Maximum Special Tax means the maximum special tax that can be levied within CFD No. 98-,
by the City Council in any Fiscal Year for each Parcel of Taxable Property.
Operating Fund means a fund that shall be maintained within the District for any Fiscal Year to
pay for the actual costs of maintenance, repair, and replacement of the Facilities, and the
Administrative Expenses.
Operating Fund Balance means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount equal to the budgeted
costs of the maintenance, repair and replacement of the Facilities which have been accepted
and maintained by the District or are reasonably expected to be accepted and maintained by
the District during the current Fiscal Year plus the budgeted Administrative Expenses of the
District for the current Fiscal Year in which Special Taxes are levied.
Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the
boundaries of the Dist~ict designated on a map of the San Diego County Assessor and which
has been assigned a discrete identifying number on the equalized tax rolls of the County.
Reserve Fund means a fund that shall be maintained to provide necessary cash flow fc..........
operations and maintenance for the first six months of each Fiscal Year, working capital to
cover maintenance and repair cost overruns and delinquencies that may arise in connection
with the collection of Special Taxes and a reasonable buffer against large variations in annual
special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to
100% of the Operating Fund Requirement.
Special Tax means the special tax or special taxes actually levied within CFD No. 98-1.
Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of
the District, including: (i) the amount required to be deposited into the Operating Fund to meet
the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount
required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement,
less the Reserve Fund Balance.
Taxable Property is all real property or Parcels within the boundaries of the District which ar~
not exempt from the Special Tax pursuant to law, or which are not classified or assigned to th
Exempt Category as defined herein.
M:/$projectlchulavista/CFD98-1.2.doc
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Community Facility District No. 98-1
July 1, 1998
Page 8
Special Tax Report
Cateoories of Special Taxes
Taxable Category
The taxable land category includes each Parcel of Taxable Property assigned to the District
(Taxable Category).
The Maximum Special Tax which may be levied on each Parcel within the Taxable Category for
Fiscal Year 1998/99 shall be $103 per Acre (said amount to be levied pro rata for any portion of
an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year
thereafter by a factor which shall be the lesser of the annual percentage change in the January
to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the
annual percentage change in the estimated California Fourth Quarter Per Capita Personal
Income as contained in the Governor's budget published every January.
Exempt Category
The exempt category includes each property owned by, conveyed or irrevocably offered for
dedication to a public agency, land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots (Exempt Category).
Assionment to Cateoories of Special Taxes
On or about July 1 of each year (but in any event in sufficient time to include the levy of the
Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the
District to the Taxable Category, or Exempt Category. Parcels subject to levy shall be
determined based upon the records of the San Diego County Assessor.
Levv and Apportionment of Special Taxes
The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about
every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the
County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District
as follows:
Step 1: The Special Tax per Acre for Parcels assigned to the Taxable Category shall be
calculated as the lessor of:
(i) The Special Tax Liability for the District as determined by the City, divided by the
total Acres for all Parcels assigned to the Taxable Category,
OR,
(ii) the Maximum Special Tax rate for Parcels assigned to the Taxable Category
M:/$projectlchulavistalCFD98-1.2.doc
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Community Facility District No. 98-1
July 1,1998
Page 9
Special Tax Report
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Step 2: The City shall advise the owner of Parcels within the District of the Special Tax Liability
for the next Fiscal Year.
Step 3: The owner(s) of Parcels within the District, may at its election, deposit funds with the
City prior to July 15 each Fiscal Year, in an amount equal to the Parcel's Special Tax
which shall be deposited into the Operating Fund and Reserve Fund of the District.
Step 4: If the funds deposited with the City is less than the Parcel's Special Tax for the Fiscal
Year, then a Special Tax shall be levied equal to the Parcel's Special Tax as
determined in Step 1 minus any funds deposited for the current Fiscal Year pursuant to
Step 3.
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M:/$projeclJchulavislalCFD9B-l.2.doc
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RESOLUTION NO. /9/6/
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY
FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE MAINTENANCE DISTRICT
[OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST, 2, 2 WEST, 6, 7 AND
PLANNING AREA 12])
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City
Council"), has previously declared its intention and ordered the preparation of a Special Tax Report relating
to the initiation of proceedings to create a Conununity Facilities District pursuant to the terms and provisions
of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the
Government Code of the State of California (the "Act") and the City of Chula Vista Conununity Facilities
District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5
and 7 of Article XI of the Constitution of the State of California (the . Ordinance" ) (the Act and the
Ordinance may be referred to collectively as the 'Conununity Facilities District Law"). This Conununity
Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 98-1
(INTERIM OPEN SPACE MAINTENANCE DISTRICT [OTA Y PROJECT, LLC-oVP-SPA ONE,
VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLANNlNG AREA 12 ]) (the "District"); and,
WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the
District, the furnishing of certain services and all other related matters has been given, and a Special Tax
Report, as ordered by this City Council, has been presented to this City Council and has been made a part
of the record of the hearing on the Resolution of Intention to establish said District; and,
WHEREAS, all conununications relating to the establishment of the District, the proposed services
and the proposed rate and method of apportionment of special tax have been presented, and it has further been
detertnined that a majority protest as defined by law has not been received against these proceedings; and,
WHEREAS, the Special Tax Report as now submitted further containing changes and modifications
to the proceedings, as applicable, is hereby approved; and,
WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the
territory of the District for at least the preceding ninety (90) days, this legislative body is desirous to submit
the levy of the required special tax to the landowners of the District, said landowners being the qualified
electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION I. The above recitals are all true and correct.
SECTION 2. The written protests received, if any, do not represent a majority protest as defined
by the applicable provisions of the Conununity Facilities District Law.
1
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SECTION 3. The Special Tax Repon, as now submitted, shall stand as the Special Tax Repon for
all future proceedings and all terms and contents are approved as set forth therein.
,.....",
SECTION 4. It is hereby determined by this legislative body to proceed with the formation and
establishment of the District, formally known and designated as "COMMUNITY FACILITIES DISTRICT
" NO. 98-1 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [OTAY PROJECT, LLC-OVP-SPA
\ONE, VILLAGES 1 WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ])".
~
SECTION 5. It is hereby further determined by this legislative body that all proceedings prior
he' to were valid and taken in conformity with the requirements of law, and specifically the provisions of
the mmunity Facilities District Law, and this finding is made pursuant to the provisions and authorization
of Se . on 53325.1 of the Government Code of the State of California. It is further determined by this
legislati body that the District as proposed conforms with the City of Chula Vista Statement of Goals and
Policies arding the Establishment of Community Facilities Districts, as amended.
SEC ON 6. It is determined by this legislative body that less than twelve (12) registered voters
have resided w in the territory of the District for each of the ninety (90) days preceding the close of the
public hearing. nsequently this legislative body further determines that pursuant to the Community
Facilities District the qualified electors shall be the landowners of the District and each landowner who
is the owner of reco "f5 of the close of the public hearing, or the authorized representative thereof, shall
have one vote for each re or ponion of an acre of land that she or he owns within the District.
SECTION 7. It is termined by this legislative body that the time limit specified by the Community
Facilities District Law for co cting an election to submit the levy of the special taxes to the qualified ~
electors of the District and the irements for impartial analysis and ballot arguments have been waived
with the unanimous consent of the ified electors of the District. It is further determined by this legislative
body that the City Clerk, acting as election official, has consented to conducting any required election
on a date which is less than 125 days fo wing the adoption of any resolution forming and establishing the
District.
. ned by this legislative body that the proposed public
aced upon the City as a result of development and/or
SECTION 8. It is hereby further de
services are necessary to meet increased demand
rehabilitation occurring in the District.
PREPARED BY:
John P. Lippitt
Director of Public Works
John Kaheny
City Attorney
2
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SECTION 3. The Special Tax Report, as now submitted, shall stand as the Special Tax Report for
all future proceedings and all terms and contents are approved as set forth therein.
SECTION 4. It is hereby determined by this legislative body to proceed with the formation and
establishment of the District, formally known and designated as "COMMUNITY FACILITIES DISTRICT
NO. 98-1 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [OTAY PROJECT, LLC-OVP-SPA
ONE, VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ]l".
SECTION 5. It is hereby further determined by this legislative body that all proceedings prior
hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of
the Community Facilities District Law, and this finding is made pursuant to the provisions and authorization
of Section 53325.1 of the Government Code of the State of California. It is further determined by this
legislative body that the District as proposed conforms with the City of Chula Vista Statement of Goals and
Policies Regarding the Establishment of Community Facilities Districts, as amended.
SECTION 6. It is determined by this legislative body that less than twelve (12) registered voters
have resided within the territory of the District for each of the ninety (90) days preceding the close of the
public hearing. Consequently this legislative body further determines that pursuant to the Community
Facilities District Law the qualified electors shall be the landowners of the District and each landowner who
is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall
have one vote for each acre or portion of an acre of land that she or he owns within the District.
SECTION 7. It is determined by this legislative body that the time limit specified by the Community
Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified
electors of the District and the requirements for impartial analysis and ballot arguments have been waived
with the unanimous consent of the qualified electors of the District. It is further determined by this legislative
body that the City Clerk, acting as the election official, has consented to conducting any required election
on a date which is less than 125 days following the adoption of any resolution forming and establishing the
District.
SECTION 8. It is hereby further determined by this legislative body that the proposed public
services are necessary to meet increased demands placed upon the City as a result of development and/or
rehabilitation occurring in the District.
PREPARED BY:
APPROVED AS TO FORM BY:
0-- "^-f2l<.."'" 0
John Kaheny
City Attorney
v~
John P. Lippitt
Director of Public Works
2
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e
RESOLUTION NO. /9 / ~ ;J-..
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 98-1 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [OT A Y PROJECT, LLC-
OVP-SPA ONE, VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ])
AND AUTHORIZING SUBMm AL OF LEVY OF SPECIAL TAXES TO THE
QUALIFIED ELECTORS
WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY
OF CHULA VISTA, CALIFORNIA (the "City Council"), is desirous at this time to proceed with the
establishment of a community facilities district, pursuant to the terms and provisions of the "Mello-Roos
Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code
of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance
enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Anicle XI
of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred
to collectively as the "Community Facilities District LaW"). Such Community Facilities District shall
hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE
MAINTENANCE DISTRICT [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES I, 2, 2 WEST, 6, 7
AND PLANNING AREA 12]) (the "District"); and,
WHEREAS, this legislative body has fuITher declared its intent that the authorized public services
be financed through the levy of special taxes; and,
WHEREAS, at any time before or after the formation of the District, this legislative body may accept
advances of funds and/or work in kind from any source; however, no reimbursement and/or repayment shall
be made for said advances until expressly set foITh by agreement and/or Resolution of this legislative body
setting foITh the amount, terms and conditions for any reimbursement and/or repayment; and,
. WHEREAS, all communications relating to the establishment of the District, the proposed services
and the proposed rate and method of apponionment of the special tax have been presented, and it has further
been determined that a majority protest as defined by law has not been received against these proceedings.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS;
RECITALS
SECTION I. The above recitals are all true and correct.
FINDINGS AND DETERMINATIONS
SECTION 2. All findings and determinations of this legislative body made in that cenain Resolution entitled
"RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, MAKING
CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE SPECIAL TAX
REPORT FOR COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE MAINTENANCE
DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLAJ\'NING
AREA 12 ])" are incorporated herein as if set foITh at this point.
FINAL REPORT
SECTION 3.
The Special Tax Repon, as now submitted, shall stand as the Special Tax Rep20rt for
c.:Dq8~/t.f:
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all future proceedings and all terms and contents are approved as set forth therein.
""'"
NAME OF DISTRICT
SECTION 4. This legislative body does hereby establish and declare the formation of the
Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 98-1
(INTERIM OPEN SPACE MAINTENANCE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE,
VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ])."
BOUNDARIES OF DISTRICT
SECTION 5. The boundaries and parcels of land in which the public service are to be provided and
on which special taxes will be levied in order to pay the costs and expenses for said public services and public
facilities are generally described as follows:
All property within the boundaries of COMMUNITY FACILITIES DISTRJCT NO. 98-1 (INTERIM
OPEN SPACE MAINTENANCE DISTRICT [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES
1 WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ]) as shown on a boundary map as
previously approved by this legislative body, said map designated by the name of this Community
Facilities District,.a copy of which is on file in the Office of the City Clerk. The boundary map of
the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways
Code of the State of California in the Office of the County Recorder of the County of San Diego, at
Page 51 of Book 32 of the Book of Maps of Assessment and Community Facilities Districts for said
County.
DESCRIPTION OF SERVICES
"""'"
SECTION 6. The proposed services to be provided to serve the District are generally described as
follows:
The maintenance and servicing of public facilities including irrigation, cultivation, installation
and replacement of plant material, tree trimming and necessary supplies, personnel, utility
and equipment costs; contract services where applicable; maintenance and servicing of parks,
parkway landscaping and medians, drainage facilities, pedestrian bridges and open space
slopes, trails and walls.
For a full and complete description of the public services, reference is made to the final Special Tax Report,
a copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to said
Special Tax Report.
SPECIAL TAX
SECTION 7. Except where funds are otherwise available a special tax, secured by recordation of
a continuing lien against all non-exempt real property in the proposed District, is hereby authorized, subject
to voter approval, to be levied annually within the boundaries of said District. The proposed special tax to
be levied within said District has not been precluded by majority protest pursuant to Section 53324 of the
Government Code of the State of California. For particulars as to the rate and method of apportionment of
the proposed special tax, reference is made to the attached and incorporated Exhibit "A" (the "Special Tax
Formula"). which sets forth in sufficient detail the method of apportionment to allow each landowner or
resident within the proposed District to estimate the maximum amount that said person will have to pay. Said ""'"
special tax shall be utilized to pay for the Special Tax Liability of the District as such term is defined in the
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Special Tax Formula.
The special taxes herein authorized shall be collected in the same manner as ad valorem property
taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency,
as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish
and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected
on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of
Chula Vista, acting for and on behalf of the District.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and
Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach
to all non-exempt real property in the District and this lien shall continue in force and effect until the special
tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until
collection of the tax by the legislative body ceases.
PREPARATION OF ANNUAL TAX ROLL
SECTION 8. The name, address and telephone number of the office, department or bureau which
will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel
number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1
of the Government Code of the State of California, are as follows:
FINANCE DEPARTMENT
CITY OF CHULA VISTA
276 FOURTH A VENUE
CHULA VISTA, CA. 91910
APPEALS AND INTERPRETATION PROCEDURE
SECTION 9. Any landowner or resident who feels that the amount of the special tax levied against
his or her property or the Special Tax Formula as applied to his or her property is in error may file a notice
with the City Council appealing the levy of the special tax. An appeals panel of 3 members, as appointed by
the City Council, will then meet and promptly review the appeal, and if necessary in the determination of the
appeals 'panel, such panel may meet with the appellant. If the fmdings of the appeals panel verify that the
special tax should be modified or changed, a recommendation at that time will be made by the appeals panel
to the City Council and, as appropriate, the City Council may order that the special tax levy be corrected,
and if applicable in any case, a refund shall be granted.
Interpretations may be made by the City Council by Resolution for purposes of clarifying any
vagueness or ambiguity as it relates to any category, zone, rate or definition applicable to these proceedings.
ELECTION
SECTION 10. This legislative body herewith submits the levy of the special tax to the qualified
electors of the District, said electors being the landowners of the proposed District, with each landowner
having one (I) vote for each acre or portion thereof of land which he or she owns within the Community
Facilities District.
This legislative body hereby further directs that the ballot proposition relating to the levy of the above
referenced special tax be combined and consolidated with the proposition set forth in Section II below
relating to the establishment of an appropriations limit for the District.
/Y'C! 3
The proposition related to the levy of the special tax shall, together with a proposition to establish an
appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held
on THE EARLIEST OF THE FOLLOWING: (a) DECEMBER 1,1998, (b) THE TENTH BUSINESS DAY ~
FOLLOWING THE DATE UPON WHICH THE CITY IS NOTIFIED OF THE CLOSE OF THE
EXCHANGE OF A CERTAIN PORTION OF ASSESSOR'S PARCEL NO, 642-071-12 FROM OTAY
PROJECT, LLC-OVP TO McMILLIN - D.A. AMERICA AND A CERTAIN PORTION OF ASSESSOR'S
PARCEL NO. 642-100-01 FROM McMILLIN - D.A. AMERICA TO OTA Y PROJECT, LLC-OVP, OR
(c) SUCH OTHER DATE AS THE QUALIFIED ELECTORS AND THE CITY CLERK MAY
MUTUALLY AGREE and said election shall be a special election to be conducted by the City Clerk
(hereinafter referred to as the "Election Official"). If the proposition for the levy of the special tax receive
the approval of more than two-thirds (2/3) of the votes cast on the proposition the special tax may be levied
as provided for in this Resolution.
BALLOT
SECTION II. The ballot proposals to be submitted to the qualified voters at the election shall
generally be as follows:
PROPOSITION A
Shall COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE
MAINTENANCE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST, 2,
2 WEST, 6,7 AND PLANNING AREA 12]) of the City ofChula Vista be authorized to levy special
taxes thereof pursuant to the rate and method of apponionment of special taxes (the "Special Tax
Formula") set fonh in Resolution No. to finance the Special Tax Liability as
defined in the Special Tax Formula?
PROPOSITION B
.~
Shall COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE
MAINTENANCE DISTRICT [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES 1,2,2 WEST,
6, 7 AND PLANNING AREA 12 ]) of the City of Chula Vista establish an Anicle xlIm
appropriations limit equal to $15I,633.90?
VOTE
SECTION 12. The appropriate mark placed in the voting square after the word "YES" shall be
counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after
the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition.
ELECTION PROCEDURE
SECTION 13. The Election Official is hereby authorized to take any and all steps necessary for
holding the above election. The Election Official shall perform and render all services and proceedings
incidental to and connected with the conduct of the election, including but not limited to, the following:
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3.
4.
5.
6.
7.
8.
9.
PREPARED BY:
Prepare and furnish to the necessary election supplies for the conduct of the election.
Cause to be printed the requisite number of official ballots, tally sheets and other necessary
forms.
Furnish and address official ballots for the qualified electors of the Community Facilities
District.
Cause the official ballots to be mailed and/or delivered, as required by law.
Receive the returns of the election and supplies.
Sort and assemble the election material and supplies in preparation for the canvassing of the
returns.
Canvass the returns of the election.
Furnish a tabulation of the number of votes given in the election.
Conduct and handle all other matters relating to the proceedings and conduct of the election in
the manner and form as required by law.
APPROVED AS TO FORM BY:
C'A- ~~
John Kaheny
City Attorney
.
John P. Lippitt
Director of Public Works
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Community Fa:::i1ity Distrd No 95-1
July 1, 1998
Page 1
S:Je:::ai Tax Re~:J~
Ey..HI8/i
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Rate and Method of Apportionment of Special Taxes
ANNUAL TAX
A Special Tax shall be levied annually on land within Community Facilities
District No. 98-1 (Interim Open Space Maintenance District) of the City of Chula
Vista (the "District"), and collected according to the Special Tax Liability
determined by the City of Chula Vista (the "City") through the application of the
following procedures. All of the property within the District, unless otherwise
exempted by law or the express provisions of the rate and method of
apportionment expressed below, shall be taxed to the extent and in the manner
provided below.
All Special Taxes applicable to Parcels shall be collected in the same manner
and at the same time as ordinary ad valorem property taxes, and that Special
Taxes so levied will be subject to the same penalties and procedures, sale and
lien priority in case of delinquency as is provided for ad valorem taxes.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the
Assessor of the County of San Diego, or, if the area of such Parcel is not shown
on such Assessor's maps, the area as shown on a current recorded subdivision
map, parcel map, record of surveyor other recorded document creating or
describing the Parcel. If the preceding maps are not available, the area shall be
determined by the City Engineer.
~
Administrative Expenses means the direct and indirect expenses incurred by
the City in carrying out its duties with respect to the District (including, but not
limited to, the levy and collection of the Special Taxes) including the fees and
expenses of its counsel. Any fees of the County related to the District or the
collection of Special Taxes, an allocable share of the salaries of City staff
directly related thereto, any amounts paid by the City from its general fund with
respect to the District, and expenses incurred by the City in undertaking actions
to foreclose on properties for which the payment of Special Taxes is delinquent,
and all other costs and expenses of the City related to the District.
City means the City of Chula Vista
District means the Interim Open Space Maintenance. District _ SPA One
(Villages One West, Two West, and portions of Villages Two, Six, Seven and
Planning Area 12) of the Community Facilities District No. 98-1 of the City of
Chula Vista.
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Community Facility District No 98-1
July 1,1933
Page 2
Spec:al Tax Re;::>:J"
Facilities means those improvements defined in Part II of the Special Tax
Report dated July 1, 1998 for Community Facilities District No. 98-1 of the City
of Chula Vista.
Fiscal Year means the period starting on July 1 and ending the following June
3D.
Maximum Special Tax means the maximum special tax that can be levied within
CFD No. 98-1 by the City Council in any Fiscal Year for each Parcel of Taxable
Property.
Operating Fund means a fund that shall be maintained within the District for
any Fiscal Year to pay for the actual costs of maintenance, repair, and
replacement of the Facilities, and the Administrative Expenses.
Operating Fund Balance means the amount of funds in the Operating Fund at
the end of the preceding Fiscal Year.
.
Operating Fund Requirement means for any Fiscal Year an amount equal to
the budgeted costs of the maintenance, repair and replacement of the Facilities
which have been accepted and maintained by tl:1e District or are reasonably
expected to be accepted and maintained by the District during the current Fiscal
Year plus the budgeted Administrative Expenses of the District for the current
Fiscal Year in which Special Taxes are levied.
Parcel means any San Diego County Assessor's Parcel or portion thereof that is
within the boundaries of the District designated on a map of the San Diego
County Assessor and which has been assigned a discrete identifying number on
the equalized tax rolls of the County.
Reserve Fund means a fund that shall be maintained to provide necessary cash
flow for operations and maintenance for the first six months of each Fiscal Year,
working capital to cover maintenance and repair cost overruns and
delinquencies that may arise in connection with the collection of Special Taxes
and a reasonable buffer against large variations in annual special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the
end of the preceding Fiscal Year.
.
Reserve Fund Requirement means the required balance in the Reserve Fund
equal to up to 100% of the Operating Fund Requirement.
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W.:\Soro.ie=tSl.::huta'l!St3~O=98-'A
Community Facility District No. 98-1
July 1, 1933
Page 3
Special Tax Repo~
-,
Special Tax means the special tax or special taxes actually levied within CFD
No. 98-1.
Special Tax Liability for any Fiscal Year is an amount determined sufficient to
pay the costs of the District, including: (i) the amount required to be deposited
into the Operating Fund to meet the Operating Fund Requirement, less the
Operating Fund Balance, and (ii) the total amount required to be deposited into
the Reserve Fund if any, to meet the Reserve Fund Requirement, less the
Reserve Fund Balance.
Taxable Property is all real property or Parcels within the boundaries of the
District which are not exempt from the Special Tax pursuant to law, or which are
not classified or assigned to the Exempt Category as defined herein.
Cateoories ofSoecial Taxes
Taxable Category
The taxable land category includes each Parcel of Taxable Property assigned to
the District (Taxable Category), ~
Tne Maximum Special Tax which may be levied on each Parcel withih the
Taxable Category for Fiscal Year 1998/99 shall be $103 per Acre (said amount
to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall
be increased or decreased each Fiscal Year thereafter by a factor which shall be
the lesser of the annual percentage change in the January to January San Diego
Metropolitan Area All Urban Consumer Price Index (All Items) or the annual
percentage change in the estimated California Fourth Quarter Per Capita
Personal Income as contained in the Governor's budget published every
January.
Exempt Category
The exempt category includes each property owned by, conveyed or irrevocably
offered for dedication to a public agency, land which is in the public right-of-way,
unmanned utility easements which make utilization for other than the purpose
set forth in the easement impractical, common areas, private streets and parks,
and open space lots (Exempt Category).
Assianment to Cateoories of Soecial Taxes
On or about July 1 of each year (but in any event in sufficient time to include the -,
I")vy of the Special Taxes on the County's secured tax roll) the City.shall assign
each Parcel within the District to the Taxable Category, or Exempt Category.
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Community Facility District No. 98-1
July 1, 1993
Page 4
Spe:::ial Tax Ke;J:l~
Parcels su:,ject to levy shall be determined based up:m the recoras of the San
Diego County Assessor.
Lew and Aooortionment of Soecial Taxes
The City shall determine the Special Tax Liability for the District in each Fiscal
Year on or about every July 1 (but in any event in sufficient time to include the
levy of the Special Taxes on the County's secured tax roll). Spe:::ial Taxes shall
then be levied on each Parcel within the District as follows:
Step 1: The Special Tax per Acre for Parcels assigned to the Taxable Category
shall be calculated as the lessor of:
(i) The Special Tax Liability for the District as determined by the City,
divided by the total Acres for all Parcels assigned to the Taxable
Category,
OR,
.
(ii) the Maximum Special Tax rate for Parcels assigned to the Taxable
Category
Step 2: The City shall advise the owner of Parcels within the District of the
Special Tax Liability for the next Fiscal Year.
Step 3: The owner(s) of Parcels within the District, may at its election, deposit
funds with the City prior to July 15 each Fiscal Year, in an amount equal
to the Parcel's Special Tax which shall be deposited into the Operating
Fund and Reserve Fund of the District.
Step 4: If the funds deposited with the City is less than the Parcel's Special Tax
for the Fiscal Year, then a Special Tax shall be levied equal to the
Parcel's Special Tax as determined in Step 1 minus any funds
deposited for the current Fiscal Year pursuant to Step 3.
.
tl:'S::lr~:ts\.:;nulavs:a\:D::'9S-' A
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Revised A-113
Continued from 9/1198
COUNCIL AGENDA STATEMENT
Item 19
Meeting Date 9-15-98
ITEM TITLE:
A.
Public Hearing regarding the declaration by the City Council of its
intention to establish Community Facilities District No. 98-2 (Interim
Open Space Maintenance District [McMillin - D.A. America, Otay -
SPA Two, Villages 6 & 7]) pursuant to the provisions of the "Mello-
Roos Community Facilities Act of 1982", for the purpose of financing
certain public services through the levy of a special tax to pay for all or
a portion of such public services and the intent to authorize a special tax
to pay for all or a portion of such public services.
B. Resolution 19163 of the City Council of the City ofChula
Vista, California, making certain preliminary findings, passing upon
protests and approving the Special Tax Report for Community Facilities
District No. 98-2 (Interim Open Space Maintenance District [McMillin -
D.A. America, Otay - SPA Two, Villages 6 & 7]).
C. Resolution 19164 of the City Council of the City ofChula
Vista, California, forming and establishing Community Facilities District
No. 98-2 (Interim Open Space Maintenance District [McMillin - D.A.
America, Otay - SPA Two, Villages 6 & 7]) and authorizing the
submittal of levy of special taxes to the qualified electors.
SUBMITTED BY: Director of Public Works ~
REVIEWED BY: City Manager--lA?- \~ ~\ (4/5thsVote: YeCNoX)
On July 28, 1998, Council approved the resolution Wntention to form Community Facilities Districts
Nos. 98-2 and set the public hearing for September I, 1998. This district will fund the perpetual operation
and maintenance of open space slopes, drainage channels, detention basins, medians and parkways built
in conjunction with Otay Ranch SPA One, Villages I and 5 but providing benefit to areas located outside
SPA One. Tonight's action will continue the formal proceedings leading to the establishment of
Community Facilities District Nos. 98-2.
RECOMMENDATION: That Council:
I) Open the hearing for CFD 98-2, take testimony, close the public hearing.
2) Direct staff to tally all protests from other registered voters residing within the proposed
CFD No. 98-2 or the owners of land within CFD No. 98-2.
3) Approve the resolution making preliminary findings, passing upon protests and approving
the CFD No. 98-2 report.
4) Approve the resolution establishing CFD No. 98-2 and submitting the levy of a special
tax to finance certain services to the qualified electors of CFD No. 98-2.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. /i'ft - r
Page 2, Item 19
Meeting Date 9/15/98
DISCUSSION:
The proposed district would provide the necessary funding for the operation and maintenance of public
landscaping improvements by levying an annual "special tax", which is collected from the property
owners in conjunction with the property taxes. There is no direct cost to the City. All expenses related
to the district administration (including levying and collecting the special taxes) are funded by the
district.
The purpose of CFD No. 98-2 is to guarantee developer payments for the landscaping improvements
being constructed with SPA I but that are within future projects. For example, the slopes on the south
side of Olympic Parkway are being constructed now and will require landscaping. CFD 98-2 will
provide for McMillin's fair share of maintaining this area until development occurs south of Olympic
Parkway. When the southern parcel develops, a new or modified permanent district will have to be
created to maintain the open space for the new entire Village.
The developers propose to deposit with the City, at the beginning of each fiscal year, the amounts
required to maintain said facilities during that year. They also agree to the formation of the proposed
CFDs, which include areas outside SPA One, as a backup funding mechanism. In the event any of the
developers default in their obligation, the City will levy and collect special taxes for funding said
activities.
Staff, the legal counsel, and the special tax consultant have reviewed the proposed taxing methodology
and consider it ready for Council approval.
Area of Benefit
The proposed boundary of CFD No. 98-2 encompasses all parcels within Otay Ranch Village 6 and 7
owned by the McMillin Company (total acreage =401, see Exhibit 1).
Description of facilities
The proposed CFD 98-2 will fund the fair share of operating and maintaining the public landscaping
associated with facilities to be constructed in conjunction with the development of the Otay Ranch SPA
One but that provide benefit to areas beyond the SPA One boundaries. Such improvements include the
pro-rata share of Poggi Canyon Channel, and medians and parkways along Olympic Parkway. A
complete list of the facilities to be maintained by the district is presented in Exhibit 2.
Cost Estimate
The estimated annual budget for CFD No. 98-2 is $19,073. This budget includes a total of $16,669
for maintenance, $1,204 for administration by Parks and Open Space and $1,200 for CFD administra-
tion by the Engineering Division (preparing reports, levying and collecting taxes, public assistance,
etc).
Staff (Parks and Engineering) has reviewed and approved the proposed budget. Exhibit 3 contains a
detailed annual budget for the district. The unit prices used in determining the budget are based on
historical costs of maintenance of similar improvements within existing Open Space Districts in the City.
Prqposed SJ)ecial Tax and Collection
CFD No 98-2 has only one category of taxation ($47.53 per acre of vacant land). At the beginning of
each fiscal year, the City will calculate and notify the developers of the amount of the annual budget
(maintenance cost plus reserve). The developers have the option of depositing said amount with the
)9Ft~A
Page 3, Item 19
Meeting Date 9/15/98
City, prior to July 15, in which case the tax will not be levied. If the deposit is not received by that
date, the City will proceed to levy and collect the corresponding tax.
The maximum tax rate has been estimated by the dividing the estimated annual budget at buildout (plus
a reserve allocation of 10% of the annual budget) by the total acreage of all parcels within the district.
Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment
of the Special Taxes":
. The maximum special taxes may be adjusted each year for inflation using a factor equal to the
lesser of the annual change of the San Diego Consumer Price Index or the California Fourth
Quarter Per Capita Personal Income.
. The "City of Chula Vista Community Facilities District Ordinance" requires that the developer
maintain the landscaping improvements for a minimum period of one year. During this period,
the City will collect the special taxes with the purpose of building up an operating reserve not
to exceed l()()% of the annual budget. The special tax formula provides that the annual budget
for any year may include an amount deemed necessary to maintain an adequate level of reserve
fund.
. The annual budgets used to calculate the tax rates are only the "best estimates" of the cost
of maintenance. There is always a risk that actual expenses in future years may be higher
than the total maximum collectible taxes. This may result in reduced levels of maintenance
of the landscaping, unless the developers provide for the deficit or approve an increase in
the tax rates (2/3 voter's approval is required) which is considered unlikely. Staff believes,
however, that the proposed tax rates contain enough of a cushion in the reserve and the
inflation adjustment to minimize future problems.
Resolutions
There is one public hearing and two resolutions in today's agenda which, if adopted, would
accomplish the following:
* The Public Hearing is for the purpose of receiving testimony from any member of the public
on the formation of the district.
* The resolution making findings, passing on protests, and approving the report is the formal
action accomplishing the following:
. Declaring that all proceedings to form the district were valid and taken in conformity
with the requirements oflaw.
. Declaring that the proposed services are necessary to meet increased demands upon
the City as a result of development within CDP 98-2.
. Passing on any protest received.
. Approving the report.
* The resolution establishing the district and authorizing the levy of a special tax is the formal
action required to complete the formation of the district and authorizing the submittal of the
levy of special tax to the qualified electors of the district on the _!l.~_"1
ililillRJIII' 2) ten (10) business days after the City is notified of the close of the land exchange
fflimHml. R fi -:3
Page 4, Item 19
Meeting Date 9/15/98
between the Otay Ranch Company and McMillin Otay Ranch, or 3) such other date as the
qualified electors and the City Clerk may mutually agree. A resolution certifying the results
of the election would be brought before Council on the first available Council meeting
following this election.
FISCAL IMPACT: All costs of formation of the district are being borne by the developers and
included in the cost for the companion CFD No. 97-1 (SPA One). The ongoing administration
would be funded entirely by the district. The City will receive the benefit of full cost recovery for
staff cost involved in district administration (estimated annual staff cost of $1,204 for the
Operations Division (Parks Maintenance staft) and $1,200 for the Engineering Division staff).
Exhibits:
1-
2-
3 -
Boundary Map
List of facilities to be maintained
Cost Estimate
Attachments
A-
Special Tax Report CFD 98-2
September 10. 1998
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Exhibit Z
List of Facilities to be Maintained, CFD 98-2
Part Il - Description of Facilities and Services
-.,
Sectio:'1 53311.5 of the Act and the provisions of the Ordinan::e provide for alternate fI:";an::ing
of cer.ain services in developing areas. Since there are no other means of financing available
to the City, and sin::e the servi::es are required to meet additional demands on the Cicy as a
result of development occurring adjacent to and within the proposed Distri::t, the fina:'1::ing of
the proposed servi::es is in a:;::ordance with Se::ti:>n 53313.5of the Act and the provisi::ms of
the Ordinance.
The pr::::::Jsed services in:;lude all direct, administrative, and incidental annual costs and
expenses related to providing for the maintenance and servi::ing of public facilities in:;luding
irrigation, cultivation, installation and replacement of plant material, tree trimming and
necessary supplies; personnel, utility and equipment costs; contract services where applicable;
maintenance and servicing of parks, parkway landscaping and medians, drainage facilities,
pedestrian bridges arid open space slopes, trails and walls, including:
Parkway Landscaping and Medians which includes:"
a) Apro-raia share of the median in Olympic Parkway along the boundary with Special
Tax Area C, CFD No. 97-1 (not to exceed 50% of maintenance cost).
b) A pro-rata share of the Parkway in Olympic Parkway (southern side) al::Jng th-...
boundary with SpeciaL Tax Area C, CFD 97-1.
Open Space Slopes include: _
a) Temporary Open Space Slopes south of Olympic Parkway along the boundary of
Special Tax Area C, CFD 97-1.
Drainage Facilities which include:
__ a) A pro-rata share of the detention basin and channel in the_Poggi Canyon drainage
area; - .- :- -c -
Maintenance shall include the furnishing of services and materials for the ordinary and usual
operation, maintenance and servicing of any improvement or appurtenant facilities, including
repair, .removal or replacement of all or any part of the improvement or appurtenant facilities,
providing for the life, growth, health and beauty of the landscaping, including cultivation,
. irrigation, _trimming, . spraying, - fertilizing and - treating for disease or injury;. the removal of
trimmings, rubbish, debris and other solid waste. Maintenance also means the furnishing of
water for the irrigation of the landscaping, the installation of planting or landscaping, or the
installation or construction of supplemental facilities including any facilities which are necessary
. or convenient for the maintenance of eligible facilities. '-\.
The foregoing services shall be provided by the City, either with its own forces or by contract
with third parties, or any combination thereof, as determined by the City.
M:/$projectlchulavista/CFD98-1.doc
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Annual Cost :=stimate S~;7Jmary
C~D 98-2 (McMiliin o-..ay Ranch Interim)
Medians, si:l:es, basins, :::hanne!s & other
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Ciiy Staff Overhead
.L.ssessment =ngine=ring
Subtotal
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.15,559
1.204
1.200
19,073
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ATTACHMENT A
SPECIAL TAX REPORT
COMMUNITY FACILITIES DISTRICT NO. 98-2
Interim Open Space Maintenance District
(McMillin - D.A. America, Otay - SPA Two, Villages 6 & 7
FOR THE
CITY OF CHULA VISTA
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ClW Of
CHUlA VISTA
Prepared By
Berryman & Henigar
JULY 1,1998
?5 FltfJ{j
Project No. 14358.00
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COMMUNITY FACILITIES DISTRICT NO. 98-2
Interim Open Space Maintenance District
City of Chula Vista
TABLE OF CONTENTS
Introduction........................................ .
......................................
Description of District ....:.....................
Description of Facilities .......................
Cost Estimate.............................. ...............................................
. . . . . . . . . . . . I
.........1
........3
............................4
Rate and Method of Apportionment.......................
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Community Facility District Interim No. 98-2
July 1,1998
Page i
Special Tax RepClrt
COMMUNITY FACILITIES DISTRICT NO. 98-2
Interim Open Space Maintenance District (Otay Ranch - SPA Two)
City of Chula Vista
INTRODUCTION
The City of Chula Vista (City) has been requested to initiate proceedings to establish a
Community Facilities District to include that property commonly known as all or pClrtions
of Otay Ranch - SPA Two, Villages Six and Seven for the purpose of providing services
for the maintenance of its proportionate share of medians, drainage facilities, parkways,
perimeter slope areas, and trails, which will be constructed with the Otay Ranch - SPA
Two, Villages Six and Seven until a permanent financing plan is established for the
maintenance of those facilities.
The proposed District is located in the City of Chula Vista, County of San Diego, State
of California, as depicted on a reduced map of the boundaries thereof, Exhibit A,
Boundary Map, included herein.
The City Council adopted a resolution entitled "Resolution of Intention to Establish a
Community Facilities District", Resolution No. declaring its intention to form the
District and ordered the preparation of a report describing the proposed services to be
financed by the District if it is formed. The proceedings are being conducted in
accordance with the provisions of the "Mello Roos Community Facilities Act of 1982,"
being Chapter 2.5, Part 1, Division 2, Title 5, commencing with Section 53311, of the
Government Code of the State of California (the Act) and the City of Chula Vista
Community Facilities District Ordinance (the "Ordinance") being Ordinance No.
enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of
Article XI of the Constitution of the State of California and the Charter of the City. The
report has been prepared by, or under the direction of the Director of Public Works and
other such officers responsible for the providing of the services to be financed by the
proposed District. The report has been prepared in accordance with Section 53321.5
of the Act and includes among other information:
a) A description of the maintenance services which are required to adequately
meet the needs of the District. (Part II)
b) An estimate of the fair and reasonable cost of providing maintenance
services and all other related costs as provided in Section 53345.3 of the Act.
(Part III)
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Community Facility District No. 98-2
July 1,1998
Page 3
Special Tax Report
Part II - Description of Facilities and Services
Section 53311.5 of the Act and the provisions of the Ordinance provide for alternate financing
of certain services in developing areas. Since there are no other means of financing available
to the City, and since the services are required to meet additional demands on the City as a
result of development occurring adjacent to and within the proposed District, the financing of
the proposed services is in accordance with Section 53313.5 of the Act and the provisions of
the Ordinance.
The proposed services include all direct, administrative, and incidental annual costs and
expenses related to providing for the maintenance and servicing of public facilities including
irrigation, cultivation, installation and replacement of plant material, tree trimming and
necessary supplies; personnel, utility and equipment costs; contract services where applicable;
maintenance and servicing of parks, parkway landscaping and medians, drainage facilities,
pedestrian bridges and open space slopes, trails and walls, including:
Parkway Landscaping and Medians which includes:
a) A pro-rata share of the median in Olympic Parkway along the boundary with Special
Tax Area C, CFD No. 97-1 (not to exceed 50% of maintenance cost).
b) A pro-rata share of the Parkway in Olympic Parkway (southern side) along the
boundary with Special Tax Area C, CFD 97-1.
Drainage Facilities which include:
a) A pro-rata share of the detention basin and channel in the Poggi Canyon drainage
area.
Maintenance shall include the furnishing of services and materials for the ordinary and usual
operation, maintenance .and servicing of any improvement or appurtenant facilities, including
repair, removal or replacement of all or any part of the improvement or appurtenant facilities,
providing for the life, growth, health and beauty of the landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of
trimmings, rubbish, debris and other solid waste. Maintenance also means the furnishing of
water for the irrigation of the landscaping, the installation of planting or landscaping, or the
installation or construction of supplemental facilities including any facilities which are necessary
or convenient for the maintenance of eligible facilities.
The foregoing services shall be provided by the City, either with its own forces or by contract
with third parties, or any combination thereof, as determined by the City.
M:I$projectlchulavista/CFD98-2.1.doc
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Community Facility District No. 98-2
July 1,1998
Page 5
Special Tax Report
Part IV - Rate and Method of Apportionment of Special Taxes
'""'\
ANNUAL TAX
A Special Tax shall be levied annually on land within Community Facilities District No. 98-2
(Interim Open Space Maintenance District) of the City of Chula Vista (the "District"), and
collected according to the Special Tax Liability determined by the City of Chula Vista (the
"City") through the application of the following procedures. All of the property within the District,
unless otherwise exempted by law or the express provisions of the rate and method of
apportionment expressed below, shall be taxed to the extent and in the manner provided below.
All Special Taxes applicable to Parcels shall be collected in the same manner and at the same
time as ordinary ad valorem property taxes, and that Special Taxes so levied will be subject to
the same penalties and procedures, sale and lien priority in case of delinquency as is provided
for ad valorem taxes.
DEFINITIONS
Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of
the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps,
the area as shown on a current recorded subdivision map, parcel map, record of surveyor .-,
other recorded document creating or describing the Parcel. If the preceding maps are not
available, the area shall be determined by the City Engineer.
Administrative Expenses means the direct and indirect expenses incurred by the City in
carrying out its duties with respect to the District (including, but not limited to, the levy and
collection of the Special Taxes) including the fees and expenses of its counsel. Any fees of the
County related to the District or the collection of Special Taxes, an allocable share of the
salaries of City staff directly related thereto, any amounts paid by the City from its general fund
with respect to the District, and expenses incurred by the City in undertaking actions to
foreclose on properties for which the payment of Special Taxes is delinquent, and all other
costs and expenses of the City related to the District.
City means the City of Chula Vista
District means the Interim Open Space Maintenance District - SPA Two (Villages 6 & 7) of the
Community Facilities District No. 98-2 of the City of Chula Vista.
Facilities means those improvements defined in Part II of the Special Tax Report dated July 1,
1998 for Community Facilities District No. 98-2 of the City of Chula Vista.
Fiscal Year means the period starting on July 1 and ending the following June 30.
.-,
M:/$projec:tlchulavista/CFD98-2.1.doc
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Community Facility District No. 98-2
July 1, 1998
Page 5
Special Tax Report
Maximum Special Tax means the maximum special tax that can be levied within CFD ND. 98-2
by the City Council in any Fiscal Year for each Parcel of Taxable Property.
Operating Fund means a fund that shall be maintained within the District for any Fiscal Year to
pay for the actual costs of maintenance, repair, and replacement of the Facilities, and the
Administrative Expenses.
Operating Fund Balance means the amount of funds in the Operating Fund at the end of the
preceding Fiscal Year.
Operating Fund Requirement means for any Fiscal Year an amount equal to the budgeted
costs of the maintenance, repair and replacement of the Facilities which have been accepted
and maintained by the District or are reasonably expected to be accepted and maintained by
the District during the current Fiscal Year plus the budgeted Administrative Expenses of the
District for the current Fiscal Year in which Special Taxes are levied.
Parcel means any Sail Diego County Assessor's Parcel or portion thereof that is within the
boundaries of the District designated on a map of the San Diego County Assessor and which
has been assigned a discrete identifying number on the equalized tax rolls of the County.
Reserve Fund means a fund that shall be maintained to provide necessary cash flow for
operations and maintenance for the first six months of each Fiscal Year, working capital to
cover maintenance and repair cost overruns and delinquencies that may arise in connection
with the collection of Special Taxes and a reasonable buffer against large variations in annual
special tax amounts.
Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the
preceding Fiscal Year.
Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to
100% of the Operating Fund Requirement.
Special Tax means the special tax or special taxes actually levied within CFD No. 98-2.
Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of
the District, including: (i) the amount required to be deposited into the Operating Fund to meet
the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount
required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement,
less the Reserve Fund Balance.
Taxable Property is all real property or Parcels within the boundaries of the District which are
not exempt from the Special Tax pursuant to law, or which are not classified or assigned to the
Exempt Category as defined herein.
M:/$projectlchulavista/CFD98-2.1.doc
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Community Facility District No. 98-2
July 1,1998
Page 7
Special Tax Report
Cateaories of Special Taxes
-'.
Taxable Category
The taxable land category includes each Parcel of Taxable Property assigned to the District
(Taxable Category).
The Maximum Special Tax which may be levied on each Parcel within the Taxable Category for
Fiscal Year 1998/99 shall be $47.52 per Acre (said amount to be levied pro rata for any portion
of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year
thereafter by a factor which shall be the lesser of the annual percentage change in the January
to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the
annual percentage change in the estimated California Fourth Quarter Per Capita Personal
Income as contained in the Governor's budget published every January.
Exempt Category
The exempt category includes each property owned by, conveyed or irrevocably offered for
dedication to a public agency, land which is in the public right-of-way, unmanned utility
easements which make utilization for other than the purpose set forth in the easement
impractical, common areas, private streets and parks, and open space lots ("Exemp..........
Category").
Assionment to Cateoories of Special Taxes
On or about July 1 of each year (but in any event in sufficient time to include the levy of the
Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the
District to the Taxable Category, or Exempt Category. Parcels subject to levy shall be
determined based upon the records of the San Diego County Assessor.
Levv and Apportionment of Special Taxes
The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about
every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the
County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District
as follows:
Step 1: The Special Tax for Parcels assigned to the Taxable Category shall be calculated as
the lessor of:
(i) The Special Tax Liability for the District as determined by the City, divided by the
total Acres for all Parcels assigned to the Taxable Category, -,
OR,
M:/$projectlchulavista/CFD98-2.1..doc
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Community Facility District No. 98-2
July 1,1998
Page 8
Special Tax Report
(ii) the Maximum Special Tax rate for Parcels assigned to the Taxable Category
Step 2: The City shall advise the owner of Parcels within the District of the Special Tax Liability
for the next Fiscal Year.
Step 3: The owner(s) of Parcels within the District, may at its election, deposit funds with the
City prior to July 15 of each Fiscal Year, in an amount equal to the Parcel's Special
Tax which shall be deposited into the Operating Fund and Reserve Fund of the
District.
Step 4: If the funds deposited with the City are less than the Parcel's Special Tax obligation for
the Fiscal Year, then a Special Tax shall be levied equal to the Parcel's Special Tax as
determined in Step 1 minus any funds deposited for the current Fiscal Year pursuant to
Step 3.
M:/$projectlchulavista/CFD98-2.1.doc
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RESOLUTION NO. /9/6 B
.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON
PROTESTS AND APPROVING THE SPECIAL TAX REPORT FOR COMMUNITY
FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT
[MCMILLIN - D.A. AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7])
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City
Council"), has previously declared its intention and ordered the preparation of a Special Tax Repon relating
to the initiation of proceedings to create a Community Facilities District pursuant to the tenns and provisions
of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, Division 2, Title 5 of the
Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities
District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5
and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the
Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community
Facilities District shall hereinafter be referred to as COMMUNITY FACIT..ITIES DISTRICT NO. 98-2
(INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMIT..LIN" D.A. AMERICA, OTAY - SPA
TWO, VILLAGES 6 & 7]) (the "District"); and,
WHEREAS, notice of a public hearing relating to the estal1lishment of the District, the extent of the
District, the furnishing of certain services and all other related matters has been given, and a Special Tax
Report, as ordered by this City Council, has been presented to this City Council and lias been made a pan
of the record of the hearing on the Resolution of Intention to establish said District; and,
WHEREAS, all communications relating to the establishment of the District, the proposed services
and the proposed rate and method of apportionment of special tax have been presented, and it has funher been
determined that a majority protest as defined by law has not been received against these proceedings; and,
WHEREAS, the Special Tax Repon as now submitted funher containing changes and modifications
to the proceedings, as applicable, is hereby approved; and,
WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the
territory of the District for at least the preceding ninety (90) days, this legislative body is desirous to submit
the levy of the required special tax to the landowners of the District, said landowners being the qualified
electors as authorized by law.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION I. The above recitals are all true and correct.
SECTION 2. The written protests received, if any, do not represent a majority protest as defined
by the applicable provisions of the Community Facilities District Law.
1/9 er /
SECTION 3. The Special Tax Repon, as now submitted, shall stand as the Special Tax Repon for all ~
future proceedings and all terms and contents are approved as set forth therein.
SECTION 4. It is hereby determined by this legislative body to proceed with the formation and
establishment of the District, formlllly known and designated as "COMMUNlTY F ACIL1TIES DlSTRJCT NO.
98-2 (INTERIM OPEN SPACE MAINTENANCE DlSTRJCT [MCMILLIN - D.A. AMERJCA, OT A Y _ SPA
TWO, VilLAGES 6 & 7]).
SECTION 5. It is hereby further determined by this legislative body that all proceedings prior hereto
were valid and taken in conformity with the requirements of law, and specifically the provisions of the
Community Facilities District Law, and this finding is made pursuant to the provisions and authorization of
Section 53325.1 of the Government Code pfthe State ofCalifomia.lt is further determined by this legislative
body that the District as proposed conforms with the City of Chula Vista Statement of Goals and Policies
Regarding the Establishment of Community Facilities Districts, as amended.
SECTION 6. It is determined by this legis1ative body that less than twelve (12) registered voters have
resided within the territory of the District for each of the ninety (90) days preceding the close of the public
hearing. Consequently this legislative body further determines that pursuant to the Community Facilities District
Law the qualified electors shall be the landowners of the Dis1rict and each landowner who is the owner of record
as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre
or portion of an acre of land that she or he owns within the DistricL
SECTION 7. It is determined by this legislative body that the time limit specified by the Community'
Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors _
of the District and the requirements for impartial analysis and ballot arguments have been waived with the 1
unanimous consent of the qualified electors of the DistricL It is further determined by this legislative body that
the City Clerk, acting as the election official, has consented to conducting any required election on a date which
is less than 125 days following the adoption of any resolution forming and establishing the District.
SECTION 8. It is hereby further determined by this legislative body that the proposed public services
are necessary to meet increased demands placed upon the City as a result of development and/or rehabilitation
occurring in the District.
PREPARED BY:
APPROVED AS TO FORM BY:
Ov.- ~~ ~
John Kaheny
City Attorney
John P. Lippitt
Director of Public Works
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RESOLUTION NO. /9 / ~ f
RESOLUTION' OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT
NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A.
AMERICA, OTAY - SPA TWO, VILLAGES 6& 7]) AND AUTHORIZING SUBMITTAL
OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS
WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY
OF CHULA VISTA, CALIFORNIA (the "City Council"), is desirous at this time to proceed with the
establishment of a community facilities district, pursuant to the tenns and provisions of the "Mello-Roos
Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code
of the State of California (the" Act") and the City of Chula Vista Community Facilities District Ordinance
enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article Xl
of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred
to collectively as the "Community Facilities District Law"). Such Community Facilities District shall
hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE
MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7]) (the
"District"); and,
WHEREAS, this legislative body has further declared its intent that the authorized public services
be financed through the levy of special taxes; and,
WHEREAS, at any time before or after the formation of the District, this legislative body may accept
advances of funds and/or work in kind from.any source; however, no reimbursement and/or repayment shall
be made for said advances until expressly set forth by agreement and/or Resolution of this legislative body
setting forth the amount, tenns and conditions for any reimbursement and/or repayment; and,
WHEREAS, all communications relating to the establishment of the District, the proposed services
and the proposed rate and method of apponionrnent of the special tax have been presented, and it has. further
been determined that a majority protest as defined by law has not been received against these proceedings.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
RECITALS
SECTION 1. The above recitals are all true and correct.
FINDINGS AND DETERMINATIONS
SECTION 2. All findings and determinations of this legislative body made in that cenain Resolution entitled
"RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, MAKING
CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE SPECIAL TAX
REPORT FOR COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE
DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7]) are incorporated herein as if
set forth at this point.
FINAL REPORT
1 IC/(}- /
SECTION 3. The Special Tax Repon, as now submitted, shall stand as the Special Tax Repon for
all future proceedings and all tenns and contents are approved as set fonh therein. L (! 0 0 C'~/dL! -."
NAME OF DISTRlCT (0. 7 /
SECTION 4. This legislative body does hereby establish and declare the formation of the
Corrununity Facilities District known and designated as "COMMUNITY FACILITIES DISTRlCT NO. 98-2
(INTERlM OPEN SPACE MAINTENANCE DISTRlCT [MCMILLIN - D.A. AMERlCA, OTAY _ SPA
TWO, VILLAGES 6 & 7])."
BOUNDARlES OF DISTRlCT
SECTION 5. The boundaries and parcels of land in which the public service are to be provided and
on which special taxes will be levied in order to pay the costs and expenses for said public services and public
facilities are generally described as follows:
All propeny within the boundaries of COMMUNITY FACILITIES DISTRlCT NO. 98-2 (INTERlM
OPEN SPACE MAINTENANCE DISTRlCT [MCMILLIN - D.A. AMERlCA, OT A Y - SPA TWO,
VILLAGES 6 & 7]) as shown on a boundary map as previously approved by this legislative body,
said map designated by the name of this Corrununity Facilities District, a copy of which is on file in
the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to
Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of
the County Recorder of the County of San Diego, at Page 52 of Book 32 of the Book of Maps of
Assessment and Community Facilities Districts for said County.
DESCRIPTION OF SERVICES
SECTION 6. The proposed services to be provided to serve the District are generally described as
follows:
"""
The maintenance and servicing of public facilities including irrigation, cultivation, installation
and replacement of plant material, tree trimming and necessary supplies, personnel, utility
and equipment costs; contract services where applicable; maintenance and servicing of parks,
parkway landscaping and medians, drainage facilities, pedestrian bridges and open space
slopes, trails and walls.
For a full and complete description of the public services, reference is made to the final Special Tax Repon,
a copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to said
Special Tax Report.
SPECIAL TAX
SECTION 7. Except where funds are otherwise available a special tax, secured by recordation of
a continuing lien against all non-exempt real propeny in the proposed District, is hereby authorized, subject
to voter approval, to be levied annually within the boundaries of said District. The proposed special tax to
be levied within said District has not been precluded by majority protest pursuant to Section 53324 of the
Government Code of the State of California. For paniculars as to the rate and method of apportionment of
the proposed special tax, reference is made to the attached and incorporated Exhibit "A" (the "Special Tax
Formula"), which sets forth in sufficient detail the method of apportionment to allow each landowner or
resident within the proposed District to estintate the maximum amount that said person will have to pay. Said
special tax shall be utilized to pay for the Special Tax Liability of the District as such term is defined in the -."
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Special Tax Formula.
The special taxes herein authorized shall be collected in the same manner as ad valorem property
taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency,
as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish
and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected
on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of
Chula Vista, acting for and on behalf of the District.
Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and
Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach
to all non-exempt real property in the District and this lien shall continue in force and effect until the special
tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until
collection of the tax by the legislative body ceases.
PREPARATION OF ANNUAL TAX ROLL
SECTION 8. The name, address and telephone number of the office, department or bureau which
will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel
number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1
of the Government Code elf the State of California, are as follows:
FmANCEDEPARTMENT
CITY OF CHULA VISTA
276 FOURTH A VENUE
CHULA VISTA, CA. 91910
APPEALS AND INTERPRETATION PROCEDURE
SECTION 9. Any landowner or resident who feels that the amount of the special tax levied against.
his or her property or the Special Tax Formula as applied to his or her property is in error may file a notice
with the City Council appealing the levy of the special tax. An appeals panel of 3 members, as appointed by
the City Council, will then meet and promptly review the appeal, and if necessary in the determination of the
appeals panel, such panel may meet with the appellant. If the findings of the appeals panel verify that the
special tax should be modified or changed, a recommendation at that time will be made by the appeals panel
to the City Council and, as appropriate, the City Council may order that the special tax levy be corrected,
and if applicable in any case, a refund shall be granted.
Interpretations may be made by the City Council by Resolution for purposes of clarifying any
vagueness or ambiguity as it relates to any category, zone, rate or definition applicable to these proceedings.
ELECTION
SECTION 10. This legislative body herewith submits the levy of the special tax to the qualified
electors of the District. said electors being the landowners of the proposed District, with each landowner
having one (I) vote for each acre or ponion thereof of land which he or she owns within the Community
Facilities District.
This legislative body hereby funher directs that the ballot proposition relating to the levy of the above
referenced special tax be combined and consolidated with the proposition set fonh in Section I I below
relating to the establishment of an appropriations limit for the District.
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The proposition related to the levy of the special tax shall, together with a proposition to establish an
appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held
on THE EARLIEST OFTHE FOLLOWING: (a) DECEMBER I, 1998, (b) THE TENTH BUSINESS DAY '"'""
FOLLOWING THE DATE UPON WHICH THE CITY IS NOTIFIED OF THE CLOSE OF THE
EXCHANGE OF A CERTAIN PORTION OF ASSESSOR'S PARCEL NO. 642-071-12 FROM OTAY
PROJECT, LLC-OVP TO McMILLIN - D.A. AMERJCA AND A CERTAIN PORTION OF ASSESSOR'S
PARCEL NO. 642-100-01 FROM McMILLIN - D.A. AMERJCA TO OTAY PROJECT, LLC-OVP, OR
(c) SUCH OTHER DATE AS THE QUALIFIED ELECTORS AND THE CITY CLERK MAY
MUTUALLY AGREE and said election shall be a special election to be conducted by the City Clerk
(hereinafter referred to as the "Election Official"). If the proposition for the levy of the special tax receive
the approval of more than two-thirds (2/3) of the votes cast on the proposition the special tax may be levied
as provided for in this Resolution.
BALLOT
SECTION 11. The ballot proposals to be submitted to the qualified voters at the election shall
generally be as follows:
PROPOSITION A
Shall COMMUNITY FACILITIES DlSTRJCT NO. 98-2 (INTERJM OPEN SPACE
MAINTENANCE DlSTRJCT (MCMILLIN - D.A. AMERJCA, OTAY - SPA TWO, VILLAGES 6
& 7]) of the City of Chula Vista be authorized to levy special taxes thereof pursuant to the rate and
method of apportionment of special taxes (the "Special Tax Formula") set forth in Resolution No.
to finance the Special Tax Liability as defined in the Special Tax Formula?
PROPOSITION B
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Shall COMMUNITY FACILITIES DlSTRJCT NO. 98-2 (INTERJM OPEN SPACE
MAINTENANCE DlSTRJCT [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]) of the
City of Chula Vista establish an Article XIIIB appropriations limit equal to $20,980.30?
VOTE
SECTION 12. The appropriate mark placed in the voting square after the word "YES" shall be
counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after
the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition.
ELECTION PROCEDURE
SECTION 13. The Election Official is hereby authorized to take any and all steps necessary for
holding the above election. The Election Official shall perform and render all services and proceedings
incidental to and connected with the conduct of the election, including but not limited to, the following:
I. Prepare and furnish to the necessary election supplies for the conduct of the election.
2. Cause to be printed the requisite number of official ballots, tally sheets and other necessary
forms .
3.
Furnish and address official ballots for the qualified electors of the Community Facilities
District.
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4. Cause the official ballots to be mailed and/or delivered, as required by law.
5.
Receive the returns of the election and supplies.
6.
Sort and assemble the election material and supplies in preparation for the canvassing of the
returns.
7. Canvass the returns of the election.
8. Furnish a tabulation of the number of votes given in the election.
9. Conduct and handle all other matters relating to the proceedings and conduct of the election
in the manner and form as required by law.
PREPARED BY:
APPROVED AS TO FORM BY:
~~~~
John Kaheny
City Attorney
John P. Lippitt
Director of Public Works.
H:\HOME\ENGINEER\LANDDEV\OT A YRNCH\CFD98- - 2.DOC
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6
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CITY COUNCIL AGENDA STATEMENT
Item: :? r1
Meeting Date: 9/15/98
ITEM TITLE:
Public Hearing: PCA-98-08 & PCM-98-37, City-initiated proposal to
amend the Growth Management Ordinance; the Growth Management
Program; and the Threshold/Standards and Growth Management Oversight
Commission Policy, to enact a revised Air Quality Threshold Standard.
a) Ordinance No~7~ending Section 19.09.040 J of the Chula
Vista Municipal Code.
Resolution No.' '1 gJding Section 3.11.1 of the City's Growth
Management Program, and the Air Quality Threshold Standard of
the City's Threshold/Standards and Growth Management Oversight
Commission Policy.
SUBMITTED BY: Director of Planning and BU~~n,g~(
REVIEWED BY: City Manager1){C ~ MJ\ (4/5ths Vote: Yes_NoX)
In 1996, the Air Pollution Control District (APCD) recommended to the Growth Management
Oversight Connnission (GMOC) that the City's Air Quality Threshold Standard be changed from
an annual assessment of local growth impacts on regional air quality, to an assessment of local
air quality management activities. The proposed amendment to the Air Quality Threshold Standard
was initially presented to the City Council at the April 25, 1996, GMOC workshop. The
proposed amendment was approved in concept by Council, and staff was directed to return the
item for formal public hearing and adoption. Staff has since worked with the APCD, through the
GMOC annual review process, to define reporting requirements, and the GMOC also agreed to
receive air quality reports during the 1996 and 1997 annual reviews under the spirit of the
proposed, revised Air Quality Threshold. Staff is returning the amendment for formal public
hearing and adoption which requires amendments to the Growth Management Ordinance (Exhibit
A of the attached Ordinance) and to the Growth Management Program (Exhibit A of the attached
Resolution) and the Threshold/Standards Policy (Exhibit B of the attached Resolution).
b)
RECOMMENDATION: That Council:
1. Find that the proposed amendments are exempt from environmental revie under General
Rule 15061 (b) (3) of the CEQA guidelines,
2. Adopt the attached Ordinance amending the Growth Management Ordi nce to enact a
revised Air Quality Threshold Standard (Exibit A of the attached Ordin ce), and
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Page 2, Item: ..Ji:J-
Meeting Date: 9/15/98
3. Adopt the attached Resolution amending Section 3.11.1 of the Growth Management
Program (Exhibit A of the attached Resolution), and the Air Quality Threshold Standard
of the Threshold/Standards Policy (Exhibit B of the attached Resolution), to enact a
revised Air Quality Threshold Standard.
BOARDS/COMMISSIONS RECOMMENDATION: The proposed amendment to the Air
Quality Threshold Standard was previously reviewed and approved in concept by the Planning
Commission and the City Council at a joint GMOC workshop meeting on April 25, 1996. On,
August 12, 1998, the Planning Commission held a public hearing and voted unanimously (5-0-2)
to recommend that the City Council approve the proposed amendment. The Planning
Commission's Resolution and minutes are presented in Attachment 1.
DISCUSSION:
ProJ>osal
Revisions to the Air Quality Threshold Standard address prior APCD comments that the present
standard is impractical in its call for APCD to review the City's 12-18 month growth forecast and
provide comments regarding that forecast's impacts on current and future air quality manag ement
programs. By law, APCD relies on SANDAG's regional "Series" growth forecasts for their air
quality planning and monitoring efforts. The GMOC and APCD concur that the proposed,
revised standard is well-reasoned, and forms a workable and logical foundation for annual
progress/compliance reporting on air quality improvement efforts at the local and regional level.
The revised Threshold Standard directs staff to provide the GMOC with a report encompassing
the following:
. An overview and evaluation of air quality management and improvement efforts associated
with major development projects approved within the last year,
. Identification of the City's development regulations and whether they are consistent with
Federal, State, and regional air quality regulations, and
. Identification of the City's non-development related activities and programs aimed at
compliance with Federal, State, and local air quality regulations.
Additionally, under the amended Threshold Standard, a copy of the report is forwarded to the
APCD for review. The APCD reports to the GMOC on:
. The overall regional and local air quality conditions,
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Page 3, Item: J.l)
Meeting Date: 9/15/98
. The status of regional air quality improvement implementation efforts under the Regional
Air Quality Strategy (RAQS), and
. The status of regional air quality improvement implementation efforts under Federal and
State programs and the effects of those programs/efforts on the City of Chula Vista and
local planning and development activity.
Conclusion
The revised Air Quality Threshold Standard results in a more practical approach for evaluating
growth effects on air quality management and improvement at the local level. Through the
GMOC review process, the proposed revisions have been reviewed and conceptually approved
by the City Council, Planning Commission, and APCD. Furthermore, the procedures within the
proposed, amended Threshold Standard have successfully been applied in spirit as part of the
GMOC's 1996 and 1997 annual reviews.
FISCAL IMPACT: The proposed amendment to the Air Quality Threshold Standard does not
require additional staffresources or analysis as part of the GMOC reporting process, and therefore
has no new fiscal impact.
Attachments
I. Planning Commission Resolntion & Minntes
(H:\ HOMEI PLANNING\ BDAUAOGICM0C98\AMDMTS\CCAGNSTMT_AIR)
de -3
RESOLUTION PCA-98-08/ PCM-98-37
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
CHULA VISTA RECOMMENDING THE CITY COUNCIL ADOPT AN
ORDINANCE TO AMEND CHAPTER 19.09.040. J, OF THE CHULA VISTA
MUNICIPAL CODE; AND RECOMMENDING THE CITY COUNCIL ADOPT
A RESOLUTION AMENDING SECTION 3.11.1 OF THE GROWTH
MANAGEMENT PROGRAM, AND THE AIR QUALITY THRESHOLD
STANDARD OF THE CITY'S THRESHOLD/ STANDARDS AND GROWTH
MANAGEMENT OVERSIGHT COMMISSION POLICY, TO REVISE THE
AIR QUALITY THRESHOLD STANDARD.
WHEREAS, at the initial request of the San Diego Air Pollution Control District (APCD),
the City's Growth Management Oversight Commission (GMOC) has evaluated the need for
amendment of the Air Quality Threshold Standard as part of its annual review process; and,
WHEREAS, the GMOC, with the APCD's concurrence, presented a revised Air Quality Threshold
Standard as part of its' 1995 Annual Report; and,
WHEREAS, at the April 25, 1996,joint meeting with the GMOC, the Planning Commission
and City Council accepted the draft, revised Threshold Standard in concept, and directed staff to
finalize the revisions and return them for formal public hearing and adoption; and,
WHEREAS, on August 12, 1998 the Planning Commission voted unanimously (5-0) to
recommend that the City Council enact the amendment in accordance with its Resolution PCA-98-
08/ PCM-98-37; and
WHEREAS, the City Clerk set the time and place for a public hearing on said amendment
and notice of said hearing, together with its purpose, was given by its publication in a newspaper of
general circulation in the City at least ten days prior to the hearing; and,
WHEREAS, the Commission found that the amendment is exempt from environmental
review pursuant to General Rule 15061 (b) (3) of the California Environmental Quality Act
guidelines.
NOW, THEREFORE, BE IT RESOLVED THAT FROM THE FACTS PRESENTED AT
THE HEARING, THE PLANNING COMMISSION recommends City Council adoption of
amendments to Section 19.09.040. J, of the Municipal Code as shown in Exhibit "A" of the attached
draft Ordinance, and amendments to the Growth Management Program as shown in Exhibit "A" of
the attached draft Resolution, and amendments to the Threshold Standards and Growth Management
Oversight Commission Policy as shown in Exhibit "B" of the attached draft Resolution.
cJ6 -1
ATTACHMENT 1
BE IT FURTHER RESOLVED THAT a copy of this resolution be transmitted to the City Council.
PASSED AND APPROVED BY THE PLANNING COMMISSION OF CHULA VISTA,
CALIFORNIA, this 12th day of August, 1998 by the following vote, to-wit:
AYES:
Davis, Willett, Tarantino, Thomas and O'Neill
NOES:
ABSENT:
Aguilar, Ray
ABSTENTIONS:
Patty Davis, Chairperson
D~:~~;:::~
H:\HOME\PLANNING\EDALIA \GMOC98\AMDMTS\PCM9808.RES
&6 ~ ~
MINUTES OF THE
CITY PLANNING COMMISSION OF
CHULA VISTA, CALIFORNIA
7:00 p.m.
Wednesday, August 12, 1998
Council Chambers
Public Services Building
276 Fourth Avenue, Chula Vista
ROLL CALL/ MOTIONS TO EXCUSE:
Present:
Chair Davis, Commissioners Willett, Tarantino, Thomas, O'Neill
Commissioner Aguilar and Ray
Robert Leiter, Director of Planning and Building
Duane Bazzel, Principal Planner
Frank Herrera-A., Associate Planner
Edalia Olivo-Gomez, Associate Planner
Ed Batchelder, Senior Planner
Absent:
Staff Present:
MSC (O'NeilllWillett) (5-0-2) to excuse Commissioners Aguilar and Ray, who called in.
Motion carried.
PLEDGE OF ALLEGIANCE/SILENT PRAYER
INTRODUCTORY REMARKS:
Read into the record by Chair Davis
ORAL COMMUNICATIONS:
None
1. PUBLIC HEARING: PCA 98-08 & PCM 98-37; City-initiated proposal to amend the
Growth Management Ordinance; the Growth Management Program;
and the Threshold/Standards and Growth Management Oversight
Commission Policy, to enact a revised Air Quality Threshold
Standard.
Background: Edalia Olivo-Gomez, Associate Planner, reported that the proposed amendment
to the Air Quality Threshold Standard was a recommendation of the Growth Management
Oversight Commission as part of their annual reporting process. Through this process, the
proposed revisions have been reviewed and conceptually approved by the City Council,
Planning Commission and the Air Pollution Control District.
The procedures within the proposed amended threshold standards have been successfully
applied in spirit as part of the GMOC's 1996-97 annual review. At this time, staff is following
through with the previous City Council and Planning Commission recommendation to finalize
the amendment for final adoption, which requires amendments to the Growth Management
Ord i nance, program, and threshold standards pol icy docu ment.
ATTACHMENT 1
O({) -6
Planning Commission Minutes
- 2-
Wednesday, August 12, 1998
Revisions to the Air Quality Threshold Standard address prior APCD comments that the present
standard is impractical in its call for APCD to review the City's 12-18 month growth forecast
and provide comments regarding that forecast's impacts on current and future air quality
management programs. By law, APCD relies on SANDAG's regional "Series" growth forecasts
for their air quality planning and monitoring efforts, and indicated that they had no practical
basis to evaluate such a local growth forecast. The GMOC and APCD concur that the proposed
revised standard is well-reasoned and forms a workable and logical foundation for annual
progress/compliance reporting on air quality improvement efforts at the local and regional
level.
Staff Recommendation: That the Planning Commission adopt Resolution 98-08/PCM-98-37
recommending that the City Council adopt the Draft City Council Ordinance amending Section
19.09.040) of the Chula Vista Municipal Code and draft Council Resolution amending Section
3.11.1 of the City's Growth Management Program, Threshold/Standards, and Growth
Management Oversight Commission Policy, to enact a revised Air Quality Threshold Standard
Commission Discussion:
. Commissioner Tarantino stated that having served on the GMOC, he witnesses a lot
of undirected discussions primarily due to a lack of guidance and commended staff on
the work they did in tightening up the growth standards because this will facilitate
discussion and give a quantitative measure on what the GMOC is suppose to be doing.
Public Hearing Opened 7:10
No public input.
Public Hearing Closed 7:10
MSC (Willett/O'Neill) (5-0-2) to adopt Resolution 98-08/PCM-98-37 recommending that the
City Council adopt the Draft City Council Ordinance amending Section 19.09.0401 of the
Chula Vista Municipal Code and draft Council Resolution amending Section 3.11.1 of the
City's Growth Management Program, Threshold/Standards, and Growth Management
Oversight Commission Policy, to enact a revised Air Quality Threshold Standard. Motion
carried.
CJ.() - 7
ORDINANCE NO. ;<? 11 ff
AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION
19.09.040. J, OF THE CHULA VISTA MUNICIPAL CODE TO ENACT A
REVISED AIR QUALITY THRESHOLD STANDARD.
WHEREAS, at the initial request of the San Diego Air Pollution Control District (APCD),
the City's Growth Management Oversight Commission (GMOC) has evaluated the need for
amendment to the Air Quality Threshold Standard as part of its' annual review process; and,
WHEREAS, the GMOC, with the APCD's concurrence, presented a revised Air Quality
Threshold Standard as part of its' 1995 Annual Report; and,
WHEREAS, at the April 25, 1996,joint meeting with the GMOC, the Planning Commission
and City Council accepted the draft, revised Threshold Standard in concept, and directed staff to
finalize the revisions and return them for formal public hearing and adoption; and,
WHEREAS, on August 12, 1998 the Planning Commission held a duly noticed public
hearing, and voted unanimously (5-0-2) to recommend that the City Council enact the amendment
in accordance with its Resolution PCA-98-08/ PCM-98-37; and,
WHEREAS, the City Clerk set the time and place for a public hearing on said amendment
to the Municipal Code, and notice of said hearing together with its purpose was given by its
publication in a newspaper of general circulation in the City at least 10 days prior to the hearing; and,
WHEREAS, the hearing was held at the time and place as advertised, namely September 15,
1998, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the City Council and said
hearing was thereafter closed.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby find,
determine, and ordain as follows:
SECTION I: That the amendment is exempt from environmental review pursuant to General
Rule 15061 (b) (3) of the California Environmental Quality Act guidelines.
SECTION II: That the proposed, revised standard is well-reasoned, and forms a workable
and logical foundation for annual progress/compliance reporting on air quality improvement
efforts at the local and regional level.
SECTION III: That the City Council hereby adopts the proposed amendments to Section
19.09.040 J of the Chula Vista Municipal Code, as shown on Exhibit "A" attached hereto and
incorporated herein by this reference.
026 &-1
SECTION IV: This ordinance shall take effect and be in full force and effect on the thirtieth
day from and after its second reading and adoption.
Presented by
Approved as to form by
Robert A. Leiter
Director of Planning and Building
Ov- 'Y\A ACh\h.Q
John M. Kaheny
City Attorney
~
(H :\shared\attomey\aq-amdmt.doc)
&D A~~
Chapter 19.09
Growth Management
Section 19.09.040 Qnality of Life Threshold Standards
Subsection J thereto is proposed to read as follows:
J. Air Quality
The Gity ~iMQI~ shall anRually ~~ provide!;! tt'lc EaR Diego ArGO with a 12 to 18 ff10nth
de,'clol'lfflcRt forecast aReI rCClucst aR evaluation of its iffll'laet OR curreRt aRd future air
Quality R9aRa~cffleRt I'lrograffls, aloR~ ',vilt'l reeeRt air Quality data. Tlge ~fo'Nth forecast
aReI ArGO resp6Rsc Ictters shall bc previeleel to the GMOG for inclusioR iR it3 re'1ie'N.
~im~J1!I"1I]Ii1lI"1!.!i!!!ilt!i!~m!l'miMt!!lilillil;
Prl!!vides an ,overview, and evaluation of lqeal dev~IQpmerit prole~s>appro~r;l
dl.lrlnSililhe li!tior year to determine to Whate~entmhe~lmplemenled me~1;lres
designelllill:/ fosler air ql:!ali~improvemer1tP'lrsl:!alitto relevant regional,anfjlocal
airqualj~ imprl!!\lemenlstrategies.
2. Idi:lotifles Whether the City's deveklpment M5illillalions,palicie~and prooedures
relate 10, aM/or ,are consiSlent with .current. applicable Federal. State and
regional air qualily regulations and programs,
3. Idenllfies nOO..(jevelopmetlt specific aeti;ilitli:l1iJ being l:!ndel1a~!ln> by the City
towatdcompliancewitlil relevant Fed~rali State am:llo!:illregul;jitjorls regatdil11g
airqusliml1; al11d whether the Ci~ has a<;hiEllled Clj3mpliarl~.
The Cihl sM11 "tovide a COp" of Said rennrtto tl'leI!.DC,'D' .fl""lrevieW'arld oO""ment 'In
:i,.:'<"""'y",....'f1Li";'.<.'d'''.,iii~,,';,,<,+''''''''';+,,y,,<",' ..;;1;.,;,,,;.:!,,,.,,.,,,,>,,+<;,,,rr;~,,,,)>',,,!!:k,!'''',,,,,,<:,~mL,,,+,,,,,b~';!?,,i,,d:"j:k!ih>',, ,:"L",)i!"y":";Ii~,!i,:,':,,,L,,'t'!i!<':::
addiUOl:l,tt:leI!.IJiICO $/'lall report on o)/erall reg~lilnai an.dlo<lalalr i:l!:l$ntye"l11ditiOf;i~\ttle
status of regional.air quauty improvement impIElrT1el11t!illtIQ(1efforts LInder the' R.~ll/ll11all!.ir
QI'I "'II "an" 'ItdF"'''eral ""'tt 'p"""""'msn"th ".. "I .. '1"0"
ual Y ",rllli!..Y'" u rli!ae, "",, , ,anu '" a:e: ,..,""'.....1 "!ill u e.,,,.,e,,.O., iii ",Ill
efforts/programs on the City of Ghula Vista and local planrling aM developOllill'1t
activities.
EXHIBIT A
at> A ~3
.,
j
'J
RESOLUTION NO.
/9/:7:5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA AMENDING SECTION 3.11.1 OF THE CITY'S GROWTH
MANAGEMENT PROGRAM, AND THE AIR QUALTIY THRESHOLD
STANDARD OF THE CITY'S THRESHOLD/ STANDARDS AND GROWTH
MANAGEMENT OVERSIGHT COMMISSION POLICY
WHEREAS, at the initial request of the San Diego Air Pollution Control District (APCD),
the Growth Management Oversight Commission (GMOC) has evaluated the need for amendment
of the Air Quality Threshold Standard as part of its annual review review process; and,
WHEREAS, the GMOC, with the APCD's concurrence, presented a revised Air Quality
Threshold Standard as part of its' 1995 Annual Report; and,
WHEREAS, at the April 25, 1996,joint meeting with the GMOC, the Plarming Commission
and City Council accepted the draft, revised Threshold Standard in concept, and directed staff to
finalize the revisions and return them for formal public hearing and adoption; and,
WHEREAS, on August 12, 1998 the Planning Commission voted unanimously (5-0-2) to
recommend that the City Council enact the amendment in accordance with its Resolution PCA-98-
08/ PCM-98-37; and
WHEREAS, the City Clerk set the time and place for a hearing on said amendment to the
Growth Management Program, and notice of said hearing together with its purpose was given by its
publication in a newspaper of general circulation in the City at least 10 days prior to the hearing; and,
WHEREAS, the hearing was held at the time and place as advertised, namely September 15,
1998, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the City Council and said
hearing was thereafter closed; and,
NOW, THEREFORE, the City Council of the City ofChula Vista does hereby find,
determine, and ordain as follows:
SECTION I: That the amendment is exempt from environmental review pursuant to General
Rule 15061 (b) (3) of the California Environmental Quality Act guidelines.
SECTION II: That the proposed, revised standard is well-reasoned, and forms a workable
and logical foundation for annual progress/compliance reporting on air quality improvement
efforts at the local and regional level.
SECTION III: That the City Council hereby adopts the proposed amendments to Section
3.11.1 of the City's Growth Management Program as shown on Exhibit "A", and to the Air Qualitx.
Threshold Standard of The City's Threshold! Standards and Growth Management Oversight
0(6 B-2
(,
o
)
Commission Policy as shown on Exhibit "B" attached hereto, and incorporated herein by this
reference.
Presented by
Approved as to form by
Robert A. Leiter
Director of Planning and Building
~ ~jt ~
John M. Kaheny
City Attorney
(H:\shared\attorney\aq-amdmt.doc)
c{b 8 - &...
/
3.11 Air Quality
3.11.1 Existin~ Threshold Policy
Goal
To maintain and improve the ambient air quality enjoyed by the citizens of Chula Vista.
Obiective
Recognizing that air quality is a 16eal aoo rcgiGl'lal i~8t1e, an issu~which ne~s to he
addressed at 1;loth the loc!1l andregionall~vels the City shall ellij.eavlilrto implement the-
Utctie8 e8tabli8flea ift the Regioftal Air Quality Maifttefi!lfiec Plaft (AQMP) aIld ift additioft,
addre88 air fttlality iJ8ue~ aJ86ei!tted witll fiC... ele, eI6flmell:t. aPpl:ic!l1;lle air qulllj.ty
improvlilmll1\t . strategies and prograPJ~ that meet or ellp~d th~. established thro1;!,gll <lhe
currently adQpt~ l,{egil:!nat Air Qnatily$trategy<. (RAQS) aIldt:heRAQS's subseqiAAlt
implementation measures,
Threshold
The €fty ~~Q~ shall _ally ~~ providelil the Saft Diego i.PCD ',vitll a12 to 18 lflell:tfl
elevdoplflCll:t fereea~t aIld refttle~t aft evaluatioft of its impact Oft etlffeftt fiftel future air
fttlfilit} ffi!lftagemell:t progralflJ, along .. itll rceell:t air fttlalit} clata. The gr6'.vth foreea8t aIld
l.PCD resp6fi8c letters shall bc ]lro, ided to thc CMOC f'8r ifielusioft in it3 re, ie... NI\!1,!:l
~"~\!l~..~~l!!l1i!'tii~h!~~:
Provides an. overview and ev!1luatioll of locaJ.devlIlopmeJ:lt projects approved
d 'rith 'ar "od'" ,.." ","..t -tth ., .....IATn.IlI"-d a...""s
llrm.. e rhOI' .ye .' ",.ermJ]Je .y' Y''''''' e",.ll1\ . ey: :m1.y ...~e .'1" . .rne""~,, .
deSig1l~ to foster air quality iPJprov~mentpiJ.i'suant 10 relevant regIDu.al $d loj::al
air. qUality' hnproven1.ll1\t strategies.
Identifies whetIl.er the City's development rl(g\l~ons, policies !lIld procedures
tIt t anlil/"+' . t t 'th t !;"'a"le Fedlilflil 'Statend it H' I
e iii e 0, "". are co!lS1.S en Wi, curren app w". ,. . a", r glOna
air q1illllity regulations and programs.
ldeutifjes ~-.development specific activitiil$ beUlg l~~erti;lkel!by the City toward
complilluce with relevant Federal, State and loc!1l regulations Tegllfding air ,qulility,
and whether the City hilS achiev~ complimce.
The City nkaJlprovl"de a copy of soidrennrt to the ApCD fOor revieW and comment. In
:""':"..":"'.0';": ,. ::::~~":,,::::,, .:.0'''0:.::..;:,,,.:.',,,,,:::,,:..,,: <::<::o:;o::;:::":tt:"",,,<:,,~~:~:,,o:o:,,,, .:..:,.:.:::;::;",';;:":100'::::0':0:0:;:;::..,,:;..:;.::;.';;.;/<:,,:;:::000"""'0"00.:0:......:.::;,:;+:;:"
..00""00"'" .0000.0..00........ ,', ... :0...0.....:........ ..:....O.M:.:..O.......... ::. .000.'..0:.0:.00.0....0.......... . ::0.00:.:0:....................
Ilddition, ~ APCpshall report on overall teglbnalafld l"caJai:l'~lllityconditiollSjme
status of regioIlal air quality improvement implementatiOon efforts \!lOOetthe. RegiollaJ
.Air Quality'Strlltegy !lIld related Federlll and State.prQgrarns,md the affect of those
efforts/progran1.S QIl the City of Chulll Vista and 10caJplatlDii1lg aIld'developPJ,elltactivities,
~o.B - 3
EXHIBIT A
page 1 of2
AIR QUALITY
(Rms~ by City Couneil Sept<lmber 1, 199~)
,-"..pd..............""...................."...',.................................... ....
GOAL:
To maintain and improve the ambient air quality enjoyed by the citizens of Chula Vista.
OBJECTIVE:
Recognizing that air quality is an re@ieRal issue which cannot BC cffectivcly needs to. be
addressed BY CRula Vista, at both the regional .and kl<;allev~$, the City shall endeavor to
implement thc tactics estaBlisRee iR tlge currcntly adof}tcd I1cgional Air Quality MainteRaRce
rlaR (AQMr) lil-Iilplicablealr quallly Improvement strategle$ and lllrogramsthat meel. or e~oeeli1
th bb6.ta"II'"h'''d.th"''''' "'tht'Hd"nf~"'''^ionalAiQ ..,.ty "t.....l-(RAQ"'\dt..
os.""", "I q .,'" ."",9'" e<;urren'1.a "1""." .""g . r U..,I. '" ,.. ",,,y. ""an ",e
RAQS's subsequent implementation measures.
THRESHOLD:
The Gity @Nl~~ shall annually !!>~ provide!i tlge SaR Oic@e ArCO '...itl9 a 12 Ie 18 ftleRtl9
dcvclopftleRt fflreesst aRe rCflucst aR cvaluation of its iftlpact on currcnt and futurc air fluality
ffi8RagcffieRt prograffis, aleR@ v/itR rcecRt air fluality data. Tnc gfCWtl9 fflrceast aRd ArCO
rl'lSf}eRsc lettcrs shall BC pfC",idee te Ilge CMOC fer iRcll:lsieR iR its review. \l\!ill!l<1lflrli!flr:!~<1IWm~~Iil~
Whi!lill'l:
1. Provides an oYetllleW and eVlilll,latlon ofrloClilld~veIOl:lmeIitPrOje<;l$lilpproVeQ
during the prior year to determilile to,~at ~~nUhey ,implemented m~utelii
designeQ t(l fOaterairqualityimplrOvi:lment pur$uant to. rele\llil~t regional anQ I~I
air quality imProvement strategies.
2, Idel'ltifi h the th c't". d el nt.. It'. . 1'.' and ro. dres
. es.W ere. .I....S ev opme .roill",u a IQns, po laJe~ pee. .L/ .
relat~ to, and10r areoon$lstli\nt wilh CUfrent appllcableFiederal, State .!!lnd
regional air quality regulations and programs.
3. Identifies non-development $pecificaotivitle$ l;>eing und~rtaken' l)y the ~ity
toward compliance with relevant feder~l, State and l<:loal. regulallliWistill91ll(QIJilg
air qW!llity, an!i whether the City has achieVed compliance,
The Cll" shall "'11"Nidl;l a .l;lony of sak:! renort ~ol"a. Aofil.CD..fOt reVieW "'1'1" c"""mal1'+ In a!:ltiilloo.
":::!'>::<<::.:;::::il'!::""::L::::":"::tj{j!i~,,:>:::,,,,:,,:,,.,,!:":";,,:rn1'YLd::L:<,,,,:::,,:!:,i>,,In><><I{"/'::.:~::IJi?::f:\;,;:::::;":/1;+"+L:L>>d:k/:i)",~~+:~:L,,:~;r;:L:::,,~!~~~>i:,,,,L:L:,,/,:.,:,,1.:+.::,.,";1'
th APCD ~h II e rt "Iii'''' """"Ilil d I I' or: l4 I'n, d'lI Ii Ih . ....'t f'" I
e . .. . ",.a .r jill:l '!. ",'I...", tag on.a.an . (lea al ',l:!. al~:T'COI'l 1.0 ,e". .e'.$~..l!so 'fel!l!Qf;la
alrnuali'" Im"roveml;lntimnlementliition efforts under theflleg.lonal PsirQualihrStrateg:.r Q...A
:. ,'.: ,';"1:.,::,.;...);;1' ........ ..J;!':.:...":.":""nn.:::..":.:";:;:,,,,:~:~:.,,.::.,,..:: .,..... ...........:. .'...;."'.'.:.'."., ....<. <..."..,..".','<........""",",.,".,..'''."..,.. ..'''''''',',."",,,,,''.,'''' ,.,..,..."""",.,,,,~':,,..,,....,,,,,,,,.o,,, :1:i,.~:~
related Federal';!lr!dState programs, aM the affect of thl3seeffl3nslprograms on the City Qf
Chula Vista andlocli!l plan (ling and development acllll!ities.
IMPLEMENTATION MEASURE:
Should the GMOC determine that a potentially serious problem exists with respect to !ii11lW.~!tl1!e
I;l~li!~!!t air quality i!m!~K!!li\~flil!ilflt.,!!tf1iIil!'l!l,!3m!;i!ij!ilemrtl:!~!I.I!j!l~,t~g!.li!fl<1ll.m~~~I,ij,rlilm!l1!l!!tI'l, it may adopt
a formal "Statement of Concern" within its annual report. Such a "Statement" requires the City
Council to consider the adoption of a resolution reflecting that concern during the public hearing
on the GMOC's report;CQ~i.!il$!li!.!t!il~"~tli!t~mer1~'~!illi!II..!iiI~ ffi be directed to tfte ~J1~..QtI'l~~
responsible public agency(ilil~) with follow up to assure appropriate response by that
agency(ilil$). cQ) B ,- A.
- r EXHIBIT B
Imulementation Measnre
Should the GMOC determine that a potentially serious problem exists with respect to ~)'
~,fi~I:..~~N!~ air quality ~~Yi~~!ilt"ll:ffq~~~,ll!l.ti~!~~'~,i~!!~~'i~,i~~!!l#I~I:Yi~~i,'~~i~Ii!~l,
it may adopt a formal "Statement of Concern" within its annual report. Such a
"Statement" requires the City Council to consider the adoption of a resolution reflecting
that concern during the public hearing on the GMOC's report,ilRl!tli!i~~..~l~I:.."\'ilt!!~I:!i\~m
!ll;)~]lil~~llq ffi be directed to the a~)'ilil~~~ responsible public agencY~~I:~~ with follow up to
assure appropriate response by that agency~ie~~.
EXHIBIT B
page 2 of 2
eJrDB -5
Questbn:
Response:
Question:
Response:
, ,
i. '\.,-~
,
~J)X
J
BOARD/COMMISSION/COMMITTEE APPLICATION
SupplernenYAttachrnent
Wtat are your priq)al areas of i1terest n our city gJverrment CI1d Vvl1at
experience(s) or special knowledge can you bmg to those areas?
I am particularty interested i1 5ervng on the Human Rela1ions Commission, I am
cognizant of the many e1hnicities, cultures and heritages which abolJ'ld n ourfair city.
Protecti1g the 00 riglts of ea;h incflVdual, whle simultar1eously helpng 10 ensure
thai our city engenders withn others a respect for and tolerCl1Ce of difference, is
extremely i11portant to me.
With respecllo any experience of special knowledge thai I might have on these
issues, I feel thai I am wel~versed in mailers of this nature. For twelve (12) years, I
wori<ed i1 higler e<iJcation, assisti1g students with the development of skills thai
would afford them the opportunity to move i1to the comnlllbes n whd1they decided
to reside and to become active, cari1g, and productive members theren. The last
three (3) years of my experiences i1 higher education pennitted me to serve as the
Director of Student Affirmative Action & Human Relations Programs at the
University of Califomia, San Diego. The very issues addressed the city's Human
Relations Commission were the very same ones that I had to respond to at UCSD. I
developed and facilitated training programs, infonnational sessions, did individual
counseling, developed and instituted a myriad of programs and systems-all designed
to assist the entire university community in managing and dealing with issues of
diversity and difference.
What would you hope to accomplish by your participation?
I would hope to lend some assistance to what I consider to be an important mission
for our city. Chula Vista continues to grow and continues to change. How we
choose to deal with this growth in development and the changes that are forthcoming
will be quite crucial to our sustenance as a community. Having respect for others is a
leamed process that starts with having respect for yourseif. The protection of each
individual's civil rights in Chula Vista will allow us a foundation to develop
communities in which we are each comfortable and of which we are happy to be a
part.
:J SA f) ~ .2.
September 10, 1998
TO: Chula Vista City Council
FROM: Shirley Horton, Mayor ~
SUBJECT: Border-Free Telecommunications Zone Proposals
The International Center for Communications (ICC) at San Diego State University is
promoting a proposal for a Border-Free Telecommunications Trade Zone encompassing a
major portion of the border region, including the metropolitan San DiegolTijuana region.
The proposal is being made to foster the free flow of information between the
interdependent economies along the US/Mexico border.
Currently, the Public Utilities Commission (PUC) regulates utilities within California, and the
Federal Communications Commission (FCC) regulates the interstate transmission of
information within the United States. In Mexico, the Secretaria de Comunicaci6n y
Transporte (SCT) regulates information transmission. Experts in business and academia
generally agree that formidable barriers exist to every kind of information flow across the
international border. They also agree that easing regulations on both sides of the border
would greatly lead to an improved business climate in the region.
The ICC's proposal would ask the FCC, Secretary of Commerce, and the Secretary of State
to take steps to establish a telecommunications trade zone on an experimental basis using
one of two models. The Free Trade Zone model would establish a zone which is
essentially regulation-free. The Joint Powers Zone model, on the other hand, would retain
significant regulation by both countries by creating a collaborative agency with members
appointed by the FCC and the SCT to oversee the telecommunication needs of the zone.
The concept of the Border-Free Telecommunications Trade Zone is "rooted in the notion
that 'cities of the future' are not cities at all in the usual sense, but rather regional
economies with strong cities at their core; and that the onset of an information economy
makes physical borders and boundary lines less important than geopolitical and economic
ties."
I would like Council's support in sending letters to the FCC, Secretary of Commerce and the
Secretary of State, asking that they look into the establishment of a telecommunications
trade zone on an experimental basis using one of the two models.
SH:ab
dl~ 8 - )
,
,.)
SUBJECT:
rrul~ & m u w ~ ,~:
August 17, 1998 till U I 7 1998 I
Shirley Horton, Mayor i ~~! '''rl ~-_.i
Louie Vignapiano, Director of Manage~~~;&--inf~~~atio~-servi~
Border-free Telecommunications Zone
DATE:
TO:
FROM:
As a follow-up to our conversation on Friday I thought I would summarize the
proposal for the borderfree Telecommunications Zone which you will discuss on
Friday with John Eger from the International Center for Communications at San Diego
State. Mr. Eger is also a member of the San Diego/Baja Communications Council.
In conjunction with the North American Free Trade Agreement (NAFTA) it is being
proposed to create a means to foster the free flow of information between the United
States and Mexico. Currently the PUC regulates utilities within California, the FCC
regulates interstate transmission of information and the Secreta ria de Comunicacione
y Transporte (SCT) regulates information transmission in Mexico. This proposal
attempts to change that for an area encompassing San Diego and Imperial Counties
in California and an area called the Tijuana/Ensenada/Tecate/Mexicali triangle in Baja
California.
Over 40% of the total number of maquiladoras along the entire United States/Mexico
Border are in the proposed area of Baja California. Currently, these companies need
to apply to the SCT for all of there communications needs for trans border
communications. Easing the regulations associated with this communication could
greatly improve the business climate in the proposed region.
Specifically, the proposal would ask the FCC, Secretary of Commerce and the
Secretary of State to take steps to establish a telecommunications free trade zone on
an experimental basis in the area mentioned above. This would be created from one
of two models, either the free trade zone model or the joint powers zone model.
The free trade zone model would establish a telecommunications zone which is
regulation-free. This model would obviously need to be approved by the FCC and the
FCC. The joint powers zone model would retain significant regulation by both
countries by creating a collaborative agency with members appointed by the SCT and
the FCC to oversee the telecommunications needs within the zone.
If you have any questions, please let me know.
CC: Dave Rowlands
cP~B - :2..
F'
JUL-21-98 02:18 PM ICC
619~944488
P.E14
,
1111l5AN DIEGO UNION.1l\JUUNEI SUNDAY. JULY 19, 1998
- [
itht Ian tJitgo
ltnion.liibunc~
W. JRFF GATEWOOD
Fmmdl" Vet. 10, 18&1
JOHN D. SPRECKELS
Pdlj.sher. lR.f'JrrI926
eoL. IRA C. COPLEY
P1Jbl~hrr, 1928-1947
JAMES S. COPLEY
hhflrllt/; 1947-19'13
.
A CoPley !.Ii e~p.c; ., ~
\II, J/II"./l/. ,-
- '//:....
..~';/
HELEN K. COPLEY
Cltt;lrma" aftll hli/iJ),,,,
KARIN E. WINNER
Bd,ll)r
RO R ERT A. KITTLE
J!JitlOr {(lil. t,'d.ftorlal PQ6f
"Th, Hi., "I T,.",'
Cross-border information
A deregulated zone would boost eC01wmies
I the industrial age,com-
n merce in goods was tbe
prime source of wealth.
In the emer&i.llg infor-
mation age. wealth in-
creasingly will be created by COmmerce
in data -- a bOUl~dle.~ flow of voice,
electronic and digitized communica-
tions thllt will form the bedrock of 1I
knowledge-based economy,
With this rea1it~' In mind. a cadre 0:
business, government alld academic
leaders from .San Diego and Tijuana
have joined together in a pronti.ing ini-
tiative to promote the free flow of
cross-border communications. The aim
is to spur economic expansion through-
out our binational' regIon by clearlllll
away the thicket of ~
government regu- "\ q
lations both I"'.
Mexican and Amer- ~. .;)
lean - that ham- . .
per commerce in
information.
Just as NAFTA
stimulated wealth
creation in the San
Diego-B,lja California region by lifting
barriers to trade in goods and services,
the plan for a border-free telecommuni-
cations zone would spark growth in m-
- formation-based industries. These In.
c1ude Bl<ch rapidly expanding fields as
wireless communications, a corner-
stone of San Diego's economic future.
.....-...-. .
ao and Baja. It would mean, for exam-
ple, lower costs for cross-border phone
calls. including the explosion of cellular
phone service, and for Internet transac-
tions, cable television, direct broadcast
. 1iatl:llltc TV and nearly every other
form of electronkcommullications.
By making it easier tu tranafer data
electronically across the border, the dp.-
regulated zone also' would ease vehJcu-
lar congestion at the San Ysidro and
Olay Mesa port. of entry. People would
be able to conduct business more cheap-
ly by telecommuting.
As envisioned by the SDSU -based In-
~rn8tional . Communications Council,
the borderless telecommunications
zone. would roughly encompass an n rea
frtJrn Oceanside to Ensenada. It would
serv~ as an experiment - and, ulti-
mately, a Rlodel - for liftirlg impedi-
ments to electronk communications all
across the Soutllwest border. It would
become, ill effect. a NAFT A of the
Internet and the airwaves.
Who would object to such an enlight-
ened idea? The likeliest opponents are
government bureaucracies in Mexico
City and Washington, as well as en-
trenched private Interests on both sides
of the border that profit fr.OITl the status
quo. 'The. Federal Communications
Commission and its Mexican Cowlter-
part. the Secretaria de Cornunicacione y
Transporte. would have to approve the
plan.
j '\
&JB3
""!:1.U:Ul;;Qmm .5 alUlounccment last week
of a $650 million cOlltract te supply
equipment for a wireless network in
Mexico underscores the potential for
San Diego to cal>itall~e Oil cross-border
telecommunications growth.
In addition to promoting bvestment
and job cteatinl\, a border-free telecom-
munications zone would yield importsllt
benefits for consumers In both San Die-
For that to happen, there must be
solid support from bolh San Diego and
Tijuana. Mayor Susan Golding and Ti.
juana's incoming mayor, Francisco Ve.
ga de la Madrid, can Illve the proposal a
jwnp start by' endorsing it and urging
action in Washlni:ton and Mexico City.
This is one r~form that Clearly would
give our .binationa! economy a competi.
tive edge in the information age,
o?c1.B -1
I
Insight
mucnoNI
How CNN', tenUtiOhlI
, __ of aIIqed..,.. au
. : IIItduriDltbeVietnamWti
tamed into. journahstic
debade for the network ucl
. T..............
-.
..- .__:'
---."'0'- __._..____:_._ _".....;,_._...........
Border cities
need to dial up
common zone
for tele-links
1,_M.lpr
T brauPout biItar)'..... cities bave
been bon> IIId auboequentIy pn>oo
perecI beca... oflheir IocaIion Ikm8
Wlterwlys, railroUI a: in JDOft: recent
timesintemlte ~ Cities 01 the
lut..... ... _ told. will DOl ooIJ be built
lions I ..... kind 01 trade rautC. "tho ill-
lormatiao IliIbWIY." bat willaua:eed or
IaiI buecI UJlClO the -~..."'>' each dti-
&en within the reaion bas to the emerJinl
ne..' ,1obal information biahwly, the
Intemet.1lllI ill Jl'OII'lll'.the World Wide
Web. For illformatiao is DOl ooIJ the
name of the aae in wbic:b we bYe, it is the
life-blood 01 ClllIUIleTCe IIId the fabric 01
cMIlOCielJ.
It is Ipinat this~ IlllI ill the
belief that San Dieao IJlCI T..... bave
the....liaI m,redienu IlllIthe wiIIt.
lorm I pclWeriul.... rqiooaI ecoeomy,
that the SDSU Inten>ationll Commtimca-
Ii... CouociI recently IauDcbed I bina-
tional effort to knit the two cities toaeth-
er with the power of telecommunications
Of CleJ.tini. border.free telecommunica-
tions lODe.
Cityscbooll
need maintenance.
IIt'I'DRIIL:PAIIl2
Tbe power 01
presidential diplomacy.
.....
- ---.:.- ..-.:.-~ - ..-.:..,..-.. ... ;~~JOlt G
den, 1Uch.. the.... San DieJo bas wi!'
Tijuua. 0earIy the_.......... 01_1
IJlCI the cooduct 01 """"- do DOl recc-
DiJletbelearbitnryJellf .lit' .1bc;q-luQ~
Author Neil Pienle relIIllIII,"Aa it ~
comesever more dear tbltuaiaoll
......-.n"",,"- eIIeDtiaDy are !-n.t!o1O'-
oIreaioIIIl-"'__I~'
city at ita core. . . cities lib SIll Dieao
play an...,. ;.......;..,... . 4biv JIIie .
abapiaa the eolire ......."r_ he
poiDted lllIl, aItbou8I> in MaX:o, -_:
falls _the orbit 011 SIll DieJo.n,.;
ltate. divided ooIJ by.... 01 the warId'a
- iDteruatioaa1 aoaaiocpoiDla."
Today. ... _that SIll Dieaoand Ti-
juaua are mutaaDy ink.. '. ~~ ad
togetherform the core of aD ew:o lti'i~
ectIIlOIlIil: reii=
Not that D&tioD<<ate& are IciDc to dC
appear, Pierce continues, ... Deed ~
lor multiple critical..........._
air aafety to baDkiDi rquIatioaa to ill-
......rediatributioolor_peopIe.l
the thIiu:d _.Itate ....~..........
withtbeiTorijrioaJpoweraolTaDtion..
regulatiao... remain",-",",," Son
DieJo. if it ia to be I "City 01 TIle FIIl1lre.
the committee r-n-~ JDUIt fW..
low the eumpie 01 tile city<<aTe IIId I;::
come. powerful DeW rePm iD ita own
ript.
But the CllIIlIIlittee . . Iiou
Ieft_tothefreemarbtandto""
it beIieYed would be the__
oIthe Nortb American F... Trade
AareemeDt. aimed at c:ratiDa- opeD
_lllI' the free flow of .....1lllI..-
vicea betwoeo MeDco. the tlDiIed Sla!-
ad Canada. T.... :-.w- how
ever, ....DOl....tIy_bJNAF.
TA. aItbou8I> the__cer-
tIiDly allowed for more au. ~.
betwoeolllll......tbe_........
ries. Nor baa tl:~ebband flow 01 vade
THE SAN DIEGO UNION.TRIBtJNE . SUNDAY, JULY 12, 1998
Tbe =pt ola border.free__
mUDicati0D6aone -. critical component
01 the 1994 "City 01 the Fut...." report to
Mayor S.... GoIdin1- ia elepntly....
p1elllllaboulcl opeo_opponu-
_ lor eoormoua IIOW1h 01 the re....
The concept is rooted in the notion
that -dtieI of the future- are not cities at
aD ill the usual 1eDIe. but rather reaUmal
--.nrno- with strDDI cities at their
core: and that the OIlIet of an information
_y makea physical bcmIera IlllI
boImdary linea leu imporTantTban reo-
poIilicaJ IlllI economic lies. Importantly.
members IlllI frionda 01 the COUIlCiI firmly
believe that San Diq.and T....._
well positioned tDforge such. bieh tech
accord and muster the support uec:euary
to give birtb to . powerful new region.
Two weeb Igoat the councille iorum
ClIlllegulatiaolllllPublic PoIic:y.JuIie
Me;.,. Wrigbt. preaident and CEO 01 the
San Diq. ROJional Economic Develop-
....t Corp. (EDCl. Rudy Fernandea. cfi.
rector of California-Mexico Affain for
the state. Anemiu Fernandez Pinto de
Zapata 01 TV Aztea. Adolfo Guerrero
CClacbo, ct)' manager ofTijuana, and
Harvey White, president 01 Qualcomm,
alone with an.impressive Dumber of civic
leaden !rim> the relkm. diac:uued the
idea of lUeb . teIecommuniCltioDs free
trade zone.
Nutll1UJlliaiDily. there.... &eoeraI
AIIllaDCIlt that the wDU. world is tru.
Iy a aymbol 01 the bonIerleu OCOIIOIII)';
That the _ledae-bued iDfarmatiao
ealIlllIIIY ia here; and That tile time to P\ll"
aue IUCb aD iDitiatiYe iI DDW.
In the lut fewyars there baa been a
dlllmatic abift in tile IIIture and atruclUre
oIour_,. Where ODCejoba and
waI1h..... creaTed by qricuIture.1lllI
tbenimlomy.lOdaJ botbjoba and waI1h
are the byproducta of t..r+m.n"w:J_
......Jedae-bued ~ and aervioes
that fuol the ..,me. 01 ecooomic IIOW1h
for iodmduaIeotrepreoeura. bigb-tech
~--lDdtbe t'nmfthmit'-tbatnur_
ture llllIaupportlUch creativity.
Aa -Iedae IIId illformation _ eo-
aenliaI iDIredienta tojobo, _ and
quality oIlife.5O too _ illformation tech-
DOlaIies - _--mt_*-ticm&and .
__-the_oI_=- .
alioll. Thill ill the reuon Sioppore. a
~te of 3 million people. ill wiriDa the
_ COUDtry with fiber-optica eobaocod
bJ _ wireleu iDfIutructurea.Japau
recently IaUDched I 11450 biIIiClIlpropam
to dolor all oIJapan wbat Sioppore ill do-
iDi lor ita relatively amaIlDltion. and
wba1 Germany did - in IIODYe to 1IIlify
....andweal -1O",buildand~.
IiR Eaat and W... BerlinfollowiDa the
SiDppore eampIe.
In a 1994 report to Mayor GoIdioa. the
City 01 the FIIl1lre Committee_
meoded the aame apprDlch lor Son Die-
10. "'Blur the borden: the .......-m_
urred.llllliDathat..... of the _ clio-
llIrIliDa problema about the deveIoJlmeot
of communit:ywide ...'-"--.-'-tiODI
........ 01_ kind is that they tend to
....,. at poIiticaJ bouJIlIarier., whether tbey
be municipUtiea or irtematioDaJ bar.
cQ~B -5
;J,JS~~ h i (C ~i; AJueof- t~ i)
and commerce worn away the bonien
that teplJ'l.te people with a common vi~
1100.
While.... boundarv lilies between Illl'
tiOO-ttatabave _ cenaiDly eroded ill
many wayo. 1lIberinI in alnlly bonler_
world eamomy. diIIereDt Illltional teJe.
communiClticms rWes and reJUlations.
and iDtematicmal telecommunications
treaties have etched mort 5:rm)y in ItODe
.... aiItini Illltional boundary lilies of ....
Illl............ T oaelher. they IWId Iiko .
piclret feace or """" poeciaoIy.. brick
and mortar aymboI of.... real border
wbieh aim to contn>l.... n.... of iIlepI
soods and people and to proIeCllllltional
oecurilY and preoene public order.
O. ' pen borden to c:ommUDications
! pooeD._tbreats.bther,....
lack of .... . bonler.fRe telea1m-
mUDicatioDs aaae aIoW5 the pace of c:oJD.
merce. iDhibiu humID commUDiclticms.
and aeverelr........... deveIopmeDt of
.... kind and quality m JmDwIed,...t>ued
proclUd$and _.......,wd .ther.
.... eI\ioy. and tbat oureIy NAFTA..vi-
liDDed.
1mqiDe, lor UllIIIPle.. rePmwbere.
.."Ie teieplHme caD from SaD Die", to
Tijuaoa ia .1ac:aI caD; wIlere DO jIumniJlI
of....airwa_ _to_wireIeu
cam.municationl: or where 1mlimited net-
worD....m,.... oeed6 ofbusiDeso or
,...,..,..t, Ia.,_t, health
care or......_ -wbether by
fiber or cable. wire orwireleu -... al-
l....d to prolifera.. without an overly
reJUlated, _ maze of rules and
restrietiODl.
M..t aureIy.... deftIopmeDt of .och
lYlI.....of _1iDkiDI SaD
Dier' and Tijuaoa ....,wd Imit the ..tire
San Die",ITijlWll CODlIlIODity into. DeW
and esc!!i.DI reJioll.
One wayt. do this WDDId be for....
U.s. Federal v--,tni,..tioas Commit-
aioo and the 'Ma:icID Secrewiat for
CommllllicatioDll and Tnoaponatioo to
permit an _....t: to let ..Ibift....
bouodary lilies. for .....pIe, 30 miles
Dorth of.... aiItini bonier and 30 miles
IOUth. thereby cratiDa._free
tRdesonefor...~,lftit"StiouL
With both Cll1lIItriespumliDa_
live _of dereJUlatioo in ....field.
an ....JUlated. bot carefoIly_.
free market ezperimeDt JDiIbt oene...
mocIelDDloalyforthe United s.....and
Mezico, but for the world.
More imponantIy. _.. eIIort to al-
l.... SaD Die", and Tijuaoa to lOIler ita
..... _ of. "joint........ telea1m-
mllllicatioDa valley" -Iiko.... "Joint
V...... SiliCOD Valley" tD = north-
should spur ~.~t in the re,um and
with it II1IcteIIItD!y for bath our c0un-
tries, the....... and the ..... world ......
omy bDllpy for .... mocIeIa of IIobal co-
opentioa ad irmovatiaaa in aovemance-
SaD Die", and T"\iuIDI already repro-
IeDt the 1iDa)e larpst ~.ticm of
COlIllIlerCiaIactMty betweeD.... UDited
S.......d_. We......thebuai-
eot pbyaical border cr-m, in !be world.
with Sl! milIioo peopie IIld 21 milIioo_
bicles projected to travel DOrtbbowld this
year. AccordiDi tD the SaD Diero ReaioD-
al Economic DeveIopmeDt Cory.; the SaD
Die",ITijuaoa _uiIa iDdumy...., 13
percent from !be lourth _ of 1996
tD!be IIIIIe period in 1997. Ooe-tbird of
thelemaquiladoru iI_tedin~ CaJi.
lomiI. iDdodiDa-""'" by 5DDJ.
SaD,.. Ma-. SImaIIDa and
Hewlett.Padwd, wbieh b..e oi8Dificu>t
iDtereItIllD both lidos of !be border. The
poleDtiIllor__cillaetivi-
ty wooId be eoitaDced ....tJy by relazinr
unnecessan" restrictiooa on electronic:
commUDicltions in this area.
But to fully capitalize OD the inherent
streqtbs of our two cities, and to allow
11& to work toward creating Dot only a
powerful new economic region, but a
plewal'for the free now of goods and
aerW:es that NAFTA promiaed. ... need
to opgrade and IignifiCllltly ellbaD<:e !be
CODlIlIlIIlicati0n5 iDfrutnu:ture of the eo-
tire rqioD.; liDk the two economic com-
IlllIDities toJetber; ellbaD<:e!be ~
ties of bomaD interletiDD; and lay the
I......tioo for the development of . reo
Iional iDIormation economy to oerve both
our COUDt:rieIlDd our;oiot communitie&..
0..,. .... .... aeveraI mootbl;. the
SDSU lD.....tional CommllllicatioDll
CouDciI will be 1lIlcIertakiDg a Domber m
criticaJ taski iDcludiDg;
. RefiDiDa its proposal lor. bonler.
free telecommUDicatioosZODe;
.ldel1til)oiDl.... banien to its.ccep-
tIDce;
. More fuUy ODderaWllliDa IIld doa>-
IIIeDtiDi .... opportllDitieo preaeoted;
. Briefina key leaders in !be CDIlllDom-
'Y. c...r-0Dd!be CIiDtoD and ZediII.
admiDiatrItioDa;1Ild
. Aakini San Die,. and T"\iuIDI iDati-
totiDDo. iDdUltrieo..d iDdMduaJa lor
tbeirODpJlClrt.
We believe 'ft &tIDdltl crucil1;unc..
ture in the history of our twO oatiODS and
= "';00 to aitape = fotore ODd that of
= cbiIdreD. We hope ODd believe tbat
ow:ryooe witbin=...... -!be clirec1
beDeficiIrieo of this oiD,roIarIy imponIDt
eIIort to boiId . powerlDl.... relional in-
formatioa ec:oDOIDy - will take cnmer~
obip of this initiative tbal will help lead os
iDto I DeW era of proIperity.
6(~8-~
EtEl. LIOnel Van Deenm Endowed
Professor of CommuntCl.tlon& and Public.
PoliCY at SDSu,IS president 01 the
Inteme1101'l81 Communications Council.
Communications Zone
A tett'communiations zone with
common systems and regulations
extending 30 miles in each direct:~
from the international border wcMd
eNt~ San Diego andnjuana to
fully panicipue in todey's knowtedge-
based economy.
.'.-,:.,......; ~.',~~".<:.~
~_.r.c.-~~Ai1~_ ~
.~.:';5 ~ ~ l...~.:t~... _~~ ~
....._:.u..::~~; ~-:._,......_....-~~,..,~.
.........-.. .... -- ,-~.~........_-~-
'~...:~....t;:::U:~:::~' ~~~
.':''':-:'.t--~.~~~
.~~~~ :.~'2f~-'.!-- ~'s-.._~
':D'" --,,~~ tJ: -
'~~i~~~~~
\,,: DiI!gii"?i;. '.~ \~,:;;..;~t
i'::"'o....-..~~,oui!l.II!
~ '-." ~...~"~~:.~~u::,,.~.;::;-i-.:
\..'OtuIl~.CT...,......'
>'1 ..;>'-~~'..~.
... : '"&n\.~..-:.JuncDoir-:
~-r;~':~~; ~~'~J.:.~
. '__' _ -..r_.
Pacific . ~'O~~~~~~
OCeDlI . @'-.d-'lI~l
"~:'i"'~-
\. .,.;.",...;...~.:
.. I,' J;'~;;,r~
N ..~ to ; ill;;..:-
.......... ..-. '\:.\._':R;.~.~
_ "".;:;~ ;:W.~_
10...... . ~.....~~;"O.~i
--
~;.o,.__
UN!tIO-T;
~
152:00_ ~ SAN DIEGO CDUiIrITY'S AWARD-WlNNINQ WEEKLY VOL. t8. NO. 28
otUneZll,lWII
SAN DIEGO BUSINESS JOURNAL
Border-Free
Telecom
Zone for
San Diego?
BY ANDREA SIEDSMA
SlQUWritcr
Telccommuntc:atioDs and ecDIIOtnic
leaders are fuelilll dJorts to blvr Ute
U.s.-Mexico border lAing telecommu-
nicaticms..
The SDSlJ..based Intemational
Communications Council bas. fonned
a comminee to fiDe-lube a proposal
for a model telecommunicatiolG zone
for lhe San Diqo- Tijuaoa rqion.
The commiuec.made up of indUStry
leaders from both sides of the border,
is expected to meel the first week in
July.
Leader.; DV the benefits of a bor-
der-free te~rnunications zone in-
clude better service and lower COSIS
for le1epboae.cabk TV,Internet. cellu-
lar phone.. broadcast radio, direct broad-
casl Dtellitc 'TV .lAd btoadCUI TV Kr.
vices in San Diego and Tijuana.
The zone is expected 10 not only
impro~ communicalions services in
lhe region but aiso c:rcate a truly inle-
B!'aled economy_
For the past several decades. heavy
communications rcplalions in Mexi-
co have impeded such a free trade
ZOM.
Now, with the privatization of
Mexico's telecommunications indus..
try,the timing couldn't be better, lead-
efSUY.
The first step will be to develop a
"test"' area 10 make sure a concept is
feasible.
To Rudy Fernandez. the reaso1I$ for
a border-free telccommunicationszone
are obvious. He firsl pointed to
Tijuana's 600 maquiladoras.
"Mosl oftheir parent companies are
PI~tln ,,,rtl I" TeLECOM tM Ptlr.r Jj
in Southcm Califomia,"' said Femandcz. direc-
tor of Gov. Pete Witmo's off~of Califor.
ft~-Mexieo Affairs iD Sata Dieao. -They need
10 have COftSWIt communications for pur-
cbasing decisioas. for anapncies. for stow-
downs. II rally maDs a. bis. bi& dif'femK:e
from an economics........ to blvc a. border-free
zont....
Poillt No. 2: A borda-free telecommunica-
tions zcme wouLd be another enticement for
firms to fdocaIe to San Diego.
"When you S\art talkin, to companies
around the work! and by to get lhem to se! up
shop in California because of the unique fea.
tures we haw - dIe..-qailadm&, the Nor1h
American F... Trade Agreemcbt - 1ben it
makes a heclt of a lot more sease for them to
come heie." Femandc:z said.
""Time is fIIODty for businesses and so if
you have a system of telec:ommunications that
allows them to dial ae.. numbers at less costs,
that's jUSlanother plus fortbl: tql:Mm."
While Ieadas are excited about the poss~
bilitia of a border.free tda:ommunicauons
zone, they are noljumpmg into it blindly.
"We do have to be cardul how we do this,"
Fernandez saieL "'WheD you're tallting about
-. binational relationships, you ha~ to be very,
very eardul and very, very UDdastandinc
about each other's cutunes as well as laws
and regulalions.. -
The proposed ZOIIC would hive to win ap.-
proval hy both the Fedenl Communicaions
Commission and the Sectretaria de
Comunic;acionc y Transporte, Ute communi-
cations and lIllnsponation regulatory body in
'Mexico. That approval prl)C2SS could take up
to 18monlhs.
Zone ~nenlSsay klbbyinr;5UpporI from
sovemmeftt- offic~1s in Mexico CilY and
Washington, D.C., is also a mUSt.
While ii's uncertain hov,' WashinglOn will
respond, Mexican officials are expected to
emhrace the border-free telecommunications
zonc.
"We have al",'ays told Mexico Cit). thai
thi~ region of Mexico is ~ry, very special
hecause: it presenlS a different profile of de-
vclnpmentthan tM rest of the count~.,,, said
Adolpho Guerrero Camacho, Tijuana's city
mana~r. "And in these days. telecommuni-
cations will be a VCI)' JlllSilive factor in ec0-
nomic developmCftt of this region.
"We just have to chcr.;1; OUI all the details of
this project to see whal action should be:
taken."
He uid the city is working c1osel~' '.:ilh
Tijuana's economic developmenl depanmenl
to study the effedS of the proposed tele.
communications zone.
Meanwhile., tbe: idea has cauBbt the atten-
lion of the region's business c:cmmunily.
Qualcomm I.~ president Hal'YCy White
couldn't be happier about tbe idea.
Qualcomm. a pioneer in code division mul-
tiple access technolog)', has been doing busi-
ness in Mexico since abouI 1990. In May,
Oualcomm's eonsonium, Pegno
Comunic:aciones v Sistemas. received licens-
es 10 provide ~bile personal communica-
lions serVic:es and ",'ircless local loop services
throughout Mexico.
The consortium is a pannershipwith Mexi-
co Cit).,s Grupo Pepso, a private equity
investment group.
"From Oualcomm'5 standpoint, obviously
wc are major investors in a wireless earn-
munications S)'Stcm in Mexico," WhilC said.
"W~ have an economie interest in how Tijuana
grows economically.
"From a pragmatie point of view,
Oualcomm is always interested in telecom-
munications. so it has the opponunity 10 scH
more equipmenL From a San DieJo staneS.
point, I think there is a reasonable amoum of
mopcratton between San Diego and Mexico
and we should capillilia on that. The lcd1-
aotogy is here, the demand is here.-
While Did settinc up the fim border.free
selecommuniQlions zone would give San Oi-
. a c:ompeIitiw edge over other regions.
-If we're not the leader, someone else will
be the leader," he said. "'It would be a semble
shame if we let that happen somewhere else."
Meanwhile, White binled companies like
Oualcomm may have a tough time recruiting
beltevers in tM proposed telecommunical.ions
zon~
"'It's harder for Qualcomm as an industrial
firm than it is for probably some people who
will not be perceived as having just .Ill ceo-
nomi~ gain out of it,.. he said.
"People like John Eger (president of the
International Communications Council)ortbe:
political bodies on either sid~ of the border
would have a higher probability of having the
ear of Sac:ramenlo and Washingtun."
That's where the San Dieao Economic
Development Corp.(EDC) comes in.
"'think we can help create economi~ justi.
ficatton," said Julie Mei~r Wright, EJ)C's
president and CEO. "San Diego has a very
high investment in advanced telecommunica-
tions infl'UlrDcaure. As we look al the attrib-
utes of a eross-border, binational region, we
need to eonsiclertelecommunicalions-stase-
of-tbe-an telecommunications - as a key
c:omponenl of what makes this economic re-
gionsucc:cssful.
"'I pay my bills e1CC1ronically and t have
done so for the past 10 years. If I moved 10
Tijuana. I'd slill wanl 10 be able to do that.
Now, think aboul c:ompanies who want that
kind of process to be simple, secure and cost
effi~ient."
1be idea of the border-frcc.lelccommunica.
tion.~ zone bas been kicked around by the
communications council for Ibe past five years.
In 1996, the couneil e~n passed a rcsoluliOfl
urging regulalory and governmenl agenci~
on bolh sides of tbe harder 10 ereat~ sueh a
zonc. The idCII received linle response.
"People were confusing a concern over jJ-
I~ga' immigration with trade," Eger said.
uWc're saying. Ihi!; is nOllbout tllegll immi-
gration, this is nOI about money Ilundering:
ii'S about building a strong economic region."
Eger 5aid a t~lc:communicalians %On~ wnuld
also help alleviate congestion .II the U.S.-
Mexico horder.
Nearly 60 percenl of the border CTOSSers
Ire people who cross regularly, according to
San Diego Dialogue, a UCSD.based think
Link thai examines the border.
uV'e could probably eliminate thai amount
of people with telecommunications." Eger
said. "People c:ould telecommule."
Eser also suggested the proposed zone
c:ould relieve the region's shonap:e of 1ti~h-
tech workers.
"If there's a need for high.leeh worker;.
who's 10 sa} you can't employ them in M~x;-
co through telecommunications:''' M said.
"Vall don'l hav~ to Bet tbem a gre~n card.-
Whilc tbere are lllill many hurdles to jump,
Ege!, one of tbe fordathen. of a borde,-free
telecommunications zone. is delighted tM idea
is finall~' gelling the attention it descl'VCS.
"Vean. ago, there wall nn ph~ical hordel
(belween San Diego and Mexico)." he said.
--rbis is I way 10 knit San Diego and Tijuana
~'k'~~'g+-7
SDSO
INTERNATIONAL COMMUNICATIONS COUNCIL
In affiliation withlhe
College of Professional Studies
and Fine Arts
San Diego Slale University
San Diego, CA 92182-4522
(6191594.6900
Proposal
OFFICERS
Ed Quinn, Chair
KGTV Channell 0
John Eger,Presidenl
Professor,SDSU
Joyce Gattas, Secretary/Treasurer
Dean,SOSU
fora
CORPORATE MEMBERS
Copley Newspapers
Cox Communications
Daniels Cablevision
Ferris, Britton & Proctor, P.C,
FirstWorld Communications
General Instrument
Gray Cary Ware & Freidenrich
Grupo Uniradio
IBM San Diego
leG Telecom Group
KFMB TV Channel 8
KGTV Channel 10
K$WB 5
Maxwell Technologies
Motorola
Pacific Bell
Oualcomm Incorporated
SAle
Borderfree Telecommunications Zone
Background and Resolution
San Diego Business Journal
San Diego Data ProcesslngCorpofation
5ifi Diego Economic DlNeIorI'lent Corp.
San Diego Supercomputer Center
SANYO North America Corporation
Scripps Health
Sony Electronics
Southwestern Cable
Telecab
Teleport Communications Group
World Trade Center San Diego
XETV FOX Channel 6
XEWT TV Channel 12
Adopted
PUBLIC MEMBERS
Former Van Oeerlin Chairs,
Herman Land
Sig Mickelson
Former Governor of Samoa,
Governor H. Rex Lee
Former Congressman,
Lionel Van Oeerlin
February 20, 1996
HONORARY MEMBERS
Mayor Susan Golding
San Diego, CA
Mayor Jose Osuna Milian
Tiluana, B.C.
~-B- '6
.
A program of SDSU'S International Center for Communications
TOWARD A TELECOMMUNICATIONS FREE TRADE ZONE
Creating an Open Border for Information Flow
1
01~ g -- ?
Agreement ("NAFTA") and establishing the North American Free Trade
Zone. Despite this first step, the three countries are years if
not decades from the creation of a truly integrated economy.
Nevertheless, NAFTA represents the framework inside which a gradual
integration of the economies may take place. As such, it will be
the authority under which free trade experiments among the three
nations will be conducted.
It is submitted that an ideal starting point for creating a
free trade model under the aegis of NAFTA is the free flow of
information. As the United States moves from the Second Industrial
Revolution into what has been termed the Information Age, it has an
urgent need to secure open markets for information. The free flow
of information in turn is best accomplished by creating a free
market in telecommunications infrastructure and operation of that
infrastructure. To some extent this infrastructure already exists
between the United States and Canada. It is however,. in a truly
nascent state between the United States and Mexico. Differences in
language, history, culture and governmental structure have resulted
in the creation of generally greater barriers to the free flow of
information between the United States and Mexico than between the
United States and Canada. For the economic well being of the
peoples of all three countries of NAFTA, it is time for those
barriers to be reduced and gradually disappear.
The following discussion and proposal for a model
"telecommunications free trade zone" for the region state of San
DiegojTijuana is submitted to the Board of Directors of the San
2
dcQB -IZJ
Diego-Baja Communications Council by its Legal Affairs Committee.
THE PROBLEM
Currently there are formidable barriers to every kind of
information flow in both directions across the international border
between Mexico and the United States.
Generally, the greater restrictions have been on the Mexican
side. In Mexico the Secretaria de Comunicacione y Transporte
("SCT") has until recently had a government created monopoly over
almost all forms of electronic information creation and flow
within, into and out of Mexico. This was regardless of whether the
creation or transmission was in the form of voice, audio, video,
text, graphic or multi-media. Recent privitizations in the
telephone and other industries, however, are changing that picture
radically and permitting greater foreign investment in Mexico.
Nevertheless there has been no such thing as freedom of entry to
foreign investors and companies in the same sense that there is in
large sections of the United States telecommunications industries.
In the United States, the bulk of regulation of telecommu~ications
falls on the shoulders of the Federal Communications Commission
(" FCC") insofar as interstate and some intrastate creation and
transmission of information is concerned. In addition, significant
intrastate regulation is left in the hands of state public
utilities commissions. This is the case in California. The FCC
and state public utilities agencies historically have been intense
regulators, both acting as traffic cops and rate regulators.. On
3
JJti?-- J I
the whole, however, Mexican regulation of telecommunications has
been more centralized and government oriented than in the United
States and has been coupled with tough foreign investment
regulations which are only now being loosened.
Nevertheless, both Mexico and the United States have
considerable experience with creating and approving, on an ad hoc
basis, two-way telecommunication services, principally for the
maquiladora industry in the border areas. According to a technical
paper issued by the United Nations in 1991, entitled Transborder
Data Flows and Mexico, Baja California Norte in 1992 possessed over
40% of the total number of maquiladoras along the entire United
States/Mexico border. Of those maquiladoras in Baja California
Norte, the electronics manufacturing industry represented 53% of
total production, followed by electrical appliances with 10%. The
SCT has made serious efforts to provide the telecommunication
services needed by the maquiladora industry. For example, by 1989,
over 280 private microwave teleprocessing networks had been
approved by SCT and in excess of 60 private telephone networks. In
addition, both Telmex and Telnor have been authorized by SCT to
install various systems for private cross-border hard lines.
Transborder microwave links comprise an increasingly popular
communication system among the maquiladoras. For example, as of
August 1987, SCT had granted 21 microwave communication system
installation permits in coordination with the FCC. Private
teleprocessing and data transmission networks have been routinely
approved. Hardwired transborder lines tying into the public
4
J?~B - J~
switched networks on both sides of the border have recently become
the preferred telecommunication links of maquiladora firms
operating on both sides. Permits of all sorts by SCT number in the
low thousands. Private telephone networks are also supplied
together with cross-border lines. International telephone lines
are made up mainly of private switching systems, and permits for
those lines are obtainable through the SCT. The final option for
transborder information flows between US firms and their
subsidiaries in Mexico has been the increasing use of satellite
ground stations for communication with the parent company or for
plant to plant communication in Mexico. Again firms have had to
obtain permits from SCT. An interested company has to purchase the
ground station itself and then donate it to the government. The
company must then rent lines from the government, which reserves up
to 50% of the ground station's capacity. Once permission for the
ground station has been approved, the appropriate satellite system
is chosen. Preference must be given to the Mexico's Morelos One
Satellite System, unless it is deemed inadequate, in which case the
Intel Sat System or other systems can be considered. Finally Telex
Services have long been available to use in both directions.
Thus, there has been a long precedent of transborder
information flow, but hardly under conditions of free trade or
freedom from regulation or excess regulation.
THE NAFTA TREATY
NAFTA provides an opportunity to both reduce regulation and
5
c:X>t(B - 1.3
gradually dissipate the effects of long entrenched government
monopoly and interference in private business. It can be indeed
the frame work for a model free trade telecommunications zone
between Baja California Norte and San Diego and Imperial Counties
in Alta California.
Chapter 13 of the NAFTA Treaty states the intent of all three
nations with respect to facilitating telecommunications and
reducing barriers to entry and investment. While the chapter
applies mainly to the regulation by one country of access to and
use of "public communications, transport networks or services" by
nationals of the other country, it also by its terms encompasses:
(1) regulations adopted by one country covering "provision of
enhanced or value added services" by the nationals of the other
country in the territory or across the borders of the first country
and (2) regulations adopted by one country governing the
attachments to the "public telecommunications transport networks"
of the other country. Article 1302.1 of Chapter 13 of NAFTA
requires each country to insure that the nationals of the other
country have access to and use of telecommunications transport
networks services, including private leased circuits, in the
territory of the first country or across its borders for the
conduct of the business of the foreign nationals on "reasonable and
nondiscriminatory terms and conditions". Furthermore, Article
1303.1(a) states that each country shall insure that any licensing,
permitting, registration or notification procedures adopted or
maintained which in any way relate to the provision of "enhanced or
6
J1JtB -- Ji'
value added services" be "transparent and nondiscriminatory" as to
the nationals of the other country and that all applications be
"processed expeditiously". Moreover, any information required
under the first country's procedure is to be "limited to that
necessary to demonstrate that the applicant has the financial
solvency to begin providing services" and also the information
necessary "to assess conformity of the applicant's terminal or
other equipment with the first country's "standards or technical
regulations". There are other equally broad statements of
limitation or regulation of the activities of foreign nationals
contained in Chapter 13, subject of course to a numcer of important
exceptions not relevant for our current purposes. There are
further provisions against discrimination in favor of government
monopolies contained in Article 1305 of Chapter 13. An excensive
definition of "transparency" is contained in Article 1306 of
Chapter 13.
Finally, in Article 1309, there are requireme~ts for
extensive cooperation and other consultations between the ~aticnal
parties and their designated agencies to work out problems and to
"(determine) the feasibility of further liberalizing trade in all
telecommunications services.".
It would not be an overstatement to analogize the approval of
NAFTA by the three principal countries of North America as the
opening of a door into what is a free trade terra incognita. Thus,
the stage is set for many voyages of exploration in open borders.
It is submitted that the region state of San Diego/Tijuana is
the prime candidate on the United States/Mexico border for creation
7
&~-B --)5
of a model telecommunications free market.
POSSIBLE SOLUTIONS
This experiment could take a number of forms.
Two possible
alternative approaches stand out which may be referred to as: (1)
the free trade zone model and (2) the joint powers zone model.
In the n free trade zone n model, all legal impediments to
cross-border communications would be lifted in the zone. The zone
could be more or less extensive, but it is submitted that a
practical definition of the zone initially might be San Diego and
Imperial counties and an approximately equal area encompassing the
Tij uanajEnsenadajTecatejMexicali triangle south of the border.
This zone would encompass approximately equal populations and equal
geographical areas adjacent to each other.
The zone also is a
natural one, both economically and from a local government
standpoint.
In effect,
in the free trade zone medel,
a
telecommunications regulation-free zone would be created. Such a
model would need to be approved by both SCT and the FCC, and might
in fact require legislation in both countries though it is
arguable, under Chapter 13 of NAFTA, that there is ample authority
for the regulatory agencies to act on their own.
From the United
States legal perspective, the FCC possibly could grant an
experimental license creating the free trade zone pursuant to
section 214 of the Federal Communications Act of 1934. The
existence of comparable authority on the Mexican side needs to be
explored with Mexican legal experts.
In order to control the chaos
8
r1l.c03--; ~
\
"
that might otherwise be created by complete abandonment of any
regulation, the following should be required at a minimum:
1. Registration of frequencies.
2. Requirement of notice to companies or agencies which
might be adversely affected by such actions.
3. A holding or "cooling off" period which would allow
established companies and agencies to reorganize or act to protect
their interests and meet the competition.
4. Allowing abusers to be sued directly for damages by the
affected parties if they violate the law of the host country or the
cross-border country.
The "joint powers zone" model would retain significant
regulation by both countries, and joint regulations would need to
be adopted. However, any such regulation would be implemented
jointly through a single agency formed by the collaborative efforts
of the appropriate agencies of both countries. A possible scenario
is that the FCC and SCT would create a new cross-border =egulatory
agency for this purpose. Legislation might be required, but
arguably Chapter 13 of NAFTA supplies sufficient authority for
creation of the agency. The joint powers approach would be a more
intensely regulatory regime and, from that perspective, more
consistent with history in both countries. However, it would not
necessarily be a move toward free markets or significantly less
regulation. The creation of the j oint powers free trade zone
likely would require a period of study and negotiation by both
countries in order to create and implement a joint set of
9
02W- }?
regulations to be administered by the new joint powers agency.
The objective for either model would be to create the largest
possible zone of nondiscriminatory free entry and the smallest
possible zone of "vital" national interests which are off limits or
restricted in some way to the nationals of the other country.
The identification of possible "barrier areas" for elimination
or substantial lowering by creation of the model free trade zone is
an absolute requirement of any effective experiment.
The follow
areas are identified as currently subject to substantial barriers
to cross-border telecommunication:
1. Local and long distance telephone service.
2. Cellular service (including roami~g featu=es)
3. Personal Communications service.
4. Broadcast television.
5. Cable television.
6. Direct Broadcast Satellite television.
7. Broadcast radio.
8. Microwave transmissions.
9. MMDS.
10. Interconnection of all of the above.
11. Interconnection of governmental emergency services.
12. Internet access.
13. Localnet access.
The foregoing are not meant to exhaust the list of barrier
areas which, due to the pace of technological development, are
likely to be far more extensive than the few that are listed.
10
~~-~
~,
,
A PROPOSED RESOLUTION
The
fragmentation
of
the
region
state
market
for
telecommunications networks and services is but a microcosm of the
fragmentation of the total economic market between the three
nations of NAFTA. This fragmentation highlights the inadequacy of
existing regulatory frameworks in the three countries for dealing
with
the
latest
technological
developments
and
market
opportunities.
In the face of increasing globalization of trade,
the environment for telecommunication networks and services is
becoming ever more competitive. Decisive measures must be taken if
the telecommunication industries of the three NAFTA countries wish
to avoid being left behind by their advanced competitors in Europe
and East Asia.
Accordingly, it is suggested that the Board of Directors of
the San Diego Baja Communication Council adopt the following
resolution, or some variation thereof, whic~ will be communicaced
by the Council to the U.S. Federal Communications Commission, the
U.S. Secretary of Commerce and the U.S. Secretary of State, on the
one hand, and the Secretaria de Comunicacione y Transporte and the
Foreign Ministry of Mexico, on the other hand [and such other
executive,
administrative
and legislati ve
agencies of
the
respective governments as appears appropriate or necessary to the
Board] :
"RESOLVED that the Federal Communications
Commission, the Secretary of Commerce and the
Secretary of State take all necessary and
proper steps pursuant to Section 13 of the
NAFTA Treaty to establish a telecommunications
free trade zone on an experimental basis,
11
&&.B-) '(
designated the "San Diego/Tijuana
Telecommunications Free Trade Zone,
encompassing San Diego and Imperial counties,
California, in the United States and a
comparable geographic area in Baja California
Norte, Mexico, encompassing the municipalities
of Tijuana, Ensenada, Tecate and Mexicali.
RESOLVE, FURTHER, that the Zone be created for
a minimum period of five (5) years from the
effective date of administrative regulation or
legislation creating the Zone.
RESOLVED, FURTHER, that the Zone be based on
one or the other of the following two models
or variations thereof.
l. The "free trade zone" model. This model
which would be based loosely upon the European
Community approach would lift substantially
all legal impediments to entry and investment
in cross-border telecommunications within the
Zone in effect creating a regulatory free Zone
for the flow of information of all types.
This Zone would, however, at a minimum,
require the following:
(a) Registration of frequencies.
(b) Notice to companies or agencies
which might be adversely affected by
such action.
(c) A holding or "cooling off" period to
allow established companies or agencies
adversely effected competitively to
reorganize or act to protect their
interests and plan to compete effectively
in the new free trade atmosphere.
(d) An action for damages be allowed
against abusers violating the laws of
either the host country or the cross-
border country.
2. The joint powers zone model. This model
would continue to permit regulation by both
countries. Such regulation would be
absolutely transparent as to the nationals of
both countries and implemented jointly through
the collaborative efforts of the appropriate
regulatory agencies from both countries, for
l2
b<~-O(Q
example, the FCC and the SCT. These agencies
would create a new agency or "joint powers
authority" to administer the regulations.
RESOLVED, FURTHER, that the following "barrier
areas" at
limitation,
regulations
a minimum be identified for
elimination or standardization of
on both sides of the border.
1. Local
service.
and
long
distance
telephone
2. Cellular service (including roaming)
3. Personal Communications service.
4. Broadcast Television.
5. Cable Television.
6. Direct Broadcast Satellite television.
7. Broadcast Radio.
8. Microwave transmissions.
9 . MMDS .
10. Interconnection of the above.
11. Interconnection of Governmental Emergency.
Services.
12. Internet Access.
13. Local Net Access.
14. All other information services carried by
any medium of telecommunications.
RESOLVED FURTHER that the respective agencies
of the Governments of the United States and
Mexico designated to create the Zone appoint
and utilize the services of appropriate
business, communi ty, industry and legal
advisory groups to help identify all legal and
technical barriers to be lowered or removed
through the creation of such a Zone.
RESOLVE FURTHER that
Governments of the united
designated to create such a
agencies of the
States and Mexico
Zone have as their
13
dld(,B - d-./
goal the implementation of the Zone pursuant
to Section 13 of the NAFTA Treaty no later
than January 1, 1997.
CONCLUSION
In order to compete effectively in the new global Information
Age, barriers to the free flow of information between the nations
of NAFTA must be lowered or eliminated, and the border must become
transparent for the nationals of all three countries to invest in
and provide telecommunications services of all sorts among these
nations.
It is not too early to begin the process here in the
"region state" of San Diego/Tijuana.
Indeed, if San Diego is to
become the much touted "City of the Future" and assume a role as
one of the great international telecommunications centers in the
21st century, these barriers must fall. Sheer numbers alone would
indicate that a metropolitan center of 6 million will wield more
influence and economic clout than one of 3 million. The historical
events which led to the separation of this region politically need
not impede the flow of telecommunications in an Information Age.
14
c:<cP.B- ~~
'1
COUNCIL AGENDA STATEMENT
Item~C
Meeting Date 9-15-98
ITEM TITLE: Report on Appointment ofMTDB Representative for City ofChula Vista
SUBMITTED BY: Mayor Horton -MY
(4/5ths Vote: Yes_No.x..)
Councilman Rindone's term as Representative to the Metropolitan Transportation Development
Board (MTDB) will expire in December 1998. Mr. Rindone's Council term will also expire in
December of 1998. This will present my recommendation for representation on the MTDB
Board for the next term.
RECOMMENDATION:
That the City Council appoint Mr. Jerry Rindone as the City's continuing representative on the
MTDB Board of Directors for a four year term from December 1998 thru December 2002.
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION:
Councilman Rindone has been the City's representative on the MTDB Board of Directors since
January 1991 and is currently serving as Vice Chairman of the MTDB Board and Chairman of
the Finance Committee. This is an important Board that could have major impacts on Chula
Vista's apportionment of Transit money in the future. During the many years on the Board
Councilman Rindone has gained a wealth ofknowlenge and experience in transit issues on both a
local and regional perspective. I believe he has done an exemplary job for the City of Chula
Vista as well as for the San Diego Region. Other members on the MTDB Board are not
currently elected officials. In fact the chairman, Mr. Leon Williams, formerly a County
Supervisor, is not now an elected official.
I believe that Mr. Rindone will continue to do an excellent job for the City during the next four
year term and hereby place his name in nomination.
FISCAL IMPACT:
There is no direct impact on the City Budget.
H:\SHAREOIMA YORIMTOBREP.1PL.
~~Q. - \
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~
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I
September 9, 1998
TO: Chula Vista City Council
FROM: Shirley Horton, Mayor
SUBJECT: Border-Free Telecommunications Zone Proposals
The International Center for Communications (ICC) at San Diego State University is
promoting a proposal for a Border-Free Telecommunications Trade Zone encompassing a
major portion of the border region, including the metropolitan San DiegofTijuana region,
The proposal is being made to foster the free flow of information between the
interdependent economies along the US/Mexico border.
Currently, the Public Utilities Commission (PUC) regulates utilities within California, and the
Federal Communications Commission(FCC) regulates the interstate transmission of
information within the United States, In Mexico, the Secretaria de Comunicaci6n y
Transporte (SCT) regulates information transmission. Experts in business and academia
generally agree that formidable barriers exist to every kind of information flow across the
international border. They also agree that easing regulations on both sides of the border
would greatly lead to an improved business climate in the region.
The ICC's proposal would ask the FCC, Secretary of Commerce, and the Secretary of State
to take steps to establish a telecommunications trade zone on an experimental basis using
one of two models, The Free Trade Zone model would establish a zone which is
essentially regulation-free. The Joint Powers Zone model, on the other hand, would retain
significant regulation by both countries by creating a collaborative agency with members
appointed by the FCC and the SCT to oversee the telecommunication needs of the zone.
The concept of the Border-Free Telecommunications Trade Zone is "rooted in the notion
that 'cities of the future' are not cities at all in the usual sense, but rather regional
economies with strong cities at their core; and that the onset of an information economy
makes physical borders and boundary lines less important than geopolitical and economic
ties."
I would like Council's support in sending letters to the FCC, Secretary of Commerce and the
Secretary of State, asking that they look into the establishment of a telecommunications
trade zone on an experimental basis using one of the two models.
SH:ab