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Home My WebLink AboutAgenda Packet 1998/09/01 Tuesday, September I, 1998 4:00 p.m. '" declare under penalty of perju~y that 1 am m "0 e' b' "e t i"! of Chula VIsta In tha e', "':," ",.. " 'n t I osted O,,;ce~L .,0 .I;c L".."n,lt.a P t,. ".,,~, '1 i ,"- ",'1 -;-':0 C:.1l1etin Board at ....t5 "\ ",,'l " . - - ..... ~. t~e i"u':.:;lC Sd'J~CeZ Bu L:in_: tn t Ci Hall on OATED,Y-.;;7,9"tt SIGNED Council Cbambers Public Services Building R ular Meetin nf the Cit of Chula Vista Cit CALL TO ORDER 1. ROLL CALL: Councilmembers Moot_, Padilla_, Rindone_, Salas_, and Mayor Horton_, 2, PLEDGE OF ALLEGIANCE TO THE FLAG. MOMENT OF SILENCE 3, APPROVAL OFM1NUTES: June 23,1998, July 14, 1998, July 28, 1998, August 4, 1998, and August 11, 1998 4. SPECIAL ORDERS OF THE DAY: none CONSENT CALENDAR (Items 5 through 13 ) 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 pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. Items pulled from th19145e 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 August 11, 1998, 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. B. Letter of Resignation from the Youth Commission - Angela S. Kodicek. It is recommended that Angela Kodicek's resignation from the Youth Commission be accepted with regret and thattbe City Clerk be directed to post immediately according to the Maddy Act in the Clerk's Office and the Public Library, 6. 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 A V AILABLE FUND BALANCE IN THE GENERAL FUND FOR RELATED SALARY AND BENEFIT COSTS - 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, Staff recommends approval of the resolution. (Director of Finance) 4/5ths vote reauired. 7, RESOLUTION 19146 APPROVING A THREE YEAR CONTRACT WITH UNISYS CORPORATION FOR THE MAINTENANCE OF HARDWARE AND SOFTWARE FOR THE Agenda -2- September 1, 1998 UNlSYS COMPUTER AIDED DISPATCH SYSTEM - In March, 1997, Council approved a contract with Unisys Corporation for a Police and Fire Computer Aided Dispatch System. The System went live on August 16 and is functioning well. In order to keep the system running at peak efficiency, a maintenance contract with Unisys Corporation is necessary. The proposed contract includes features such as an annual rate cap and several performance thresholds which must be met by Unisys. Staff recommends approval of the resolution. (Director of Management and Information Systems) 8. RESOLUTION 19147 APPROVING A FIVE YEAR CONTRACT WITH DATA GENERAL CORPORATION FOR HARDWARE AND SYSTEM SOFTWARE MAINTENANCE OF THE SYSTEM WHICH WILL OPERATE THE FINANCIAL SOFTWARE - In March, 1998, Council approved an agreement with Data General Corporation to provide hardware and system software to operate the new fmancial management software from Bi-Tech Corporation. This hardware and system software, which is proprietary in nature, must be maintained in good working order to allow the City to operate all of its fmancial applications in a timely manner. Staff recommends approval of the resolution. (Director of Management and Information Systems) 9. RESOLUTION 19148 WAIVING THE BIDDING PROCESS AND APPROVING AGREEMENT WITH UNISYS CORPORATION FOR THE RENEWAL OF SOFTWARE LICENSE FOR THE UNISYS MAINFRAME COMPUTER FOR EIGHTEEN MONTHS - In September of 1990, the City of Chula Vista installed a new mainframe computer, the Unisys V-430. Included as part of the purchase agreement was a five year lease of the system software. The system software includes the operating system, COBOL compiler, and the data base management system. All of these software products are proprietary products from Unisys and are licensed directly from Unisys. In August 1995, Council approved an extension of the license agreement for an additional three years. The license agreement will expire in August and must be renewed. The charge for extending the license for eighteen months is $62,674 and is due upon renewal. Staff recommends approval of the resolution. (Director of Management and Information Systems) lOA. RESOLUTION 19149 APPROVING FINAL MAP OF CHULA VISTA TRACT NO. 93-03, TELEGRAPH CANYON EST A TES, NEIGHBORHOOD 3, UNIT 4, AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT - On January 19, 1993, by Resolution 16960, the City Council approved the Tentative Subdivision Map for Chula Vista Tract 93-03, Telegraph Canyon Estates. On October 19, 1993 by Resolution 17278, the City Council amended certain conditions of the previously approved Tentative Map. The last remaining final maps for said Tentative Map are now before Council for approval. The Final Map, the Subdivision Improvement Agreements and the Supplemental Subdivision Improvement Agreement are now before Council for consideration and approval. Staff recommends approval of resolutions. (Director of Public Works) B. RESOLUTION 19150 APPROVING FINAL MAP OF CHULA VISTA TRACT NO. 93-03, TELEGRAPH CANYON ESTATES, NEIGHBORHOOD 3, UNIT 5, AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION AND AUTHORIZING THE MAYOR TO EXECUTE SAID . AGREEMENT C. RESOLUTION 19151 APPROVING FINAL MAP OF CHULA VISTA TRACT NO. 93-03, TELEGRAPH CANYON ESTATES, NEIGHBORHOOD 3, UNIT 6, AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT D. RESOLUTION 19152 APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 93-03, TELEGRAPH CANYON ESTATES, Agenda -3- September I, 1998 NEIGHBORHOOD 3, UNITS 4, 5, AND 6, REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION NO. 16960 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT 11. RESOLUTION 19153 GRANTING AN UNDERGROUND ELECTRIC EASEMENT TO SDG&E TO ERECT, CONSTRUCT, CHANGE THE SIZE OF, IMPROVE, RECONSTRUCT, RELOCATE, REPAIR, AND/OR MAINTAIN SDG&E FACILITIES AND APPURTENANCES ALONG CITY- OWNED PROPERTY LOCATED ON LOT "A" OF CHULA VISTA TRACT 97-01, UNIT 2, RANCHO DEL REY, SPA III, (BOLERO 2) - Chula Vista Tract 97-01, Unit 2, Ranch Del Rey, Spa III (Bolero 2) is a 177 condominium project located north of Telegraph Canyon Road, south of East "J" Street, and west of Buena Vista Way. SDG&E proposes to construct underground communication facilities, natural gas pipelines and appurtenances under a City emergency access road and is requesting an easement for all purposes, together with the right of ingress thereto and egress therefrom over said easement and over other practical routes across City's land. Staff recommends approval ofthe resolution. (Director of Public Works) 12. 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 prqjects as a condition of the proposed vacation ofJefferson Avenue. Staff recommends approval of resolution. (Director of Public Works) 4/5ths vote reouired. 13A. RESOLUTION 19155 CERTIFYING THE RESULTS OF THE ELECTION FOR COMMUNITY FACILITIES DISTRICT (CFD) NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW 11]) - At the Council meeting of August 4, 1998, the City Council held the public hearing for the formation of Community Facilities District No. 98-3. This district will fund the perpetual operation and maintenance of open space slopes, drainage channels, detention basins, medians and parkways of Sunbow II. Tonight's Council action will certify the results of this special election at which the qualified electors of the District were asked whether the levy of this special tax should be authorized and authorize staff to begin the process of determining the collectible amount for Fiscal Year 1998/1999 and Fiscal Year 1999/2000. Staff recommends approval of the resolution and placing the ordinance on first reading. B. ORDINANCE 2745 AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW 11]), (first readine:) 13-1 ORDINANCE 2742 AMENDING THE ZONING MAP OR MAPS ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIPAL CODE BY REZONING PART OF PARCEL LOCATED AT 619 EAST MANOR AVENUE AND 600 BROADWAY AVENUE FROM R-l (SINGLE FAMILY RESIDENTIAL) TO CT (COMMERCIAL THOROUGHFARE) (secnnd readine: and adoption) 13-2 ORDINANCE 2743 AMENDING THE MUNICIPAL CODE, TITLE 19, CHAPTER 19.62.100 OF CHANGING THE TIME PERIOD FOR "TEMPORARY" PARKING FROM SIX MONTHS TO TWELVEMONTHS AND ADDING THE PAVEMENT STANDARDS FOR PRIVATE VEHICULAR AREAS (second readinl! and adontion) 13-3 ORDINANCE 2744 AMENDING THE MUNICIPAL CODE BY ADDING CHAPTER 2.17 ESTABLISHING THE PLANNING AND BUILDING DEPARTMENT (second readinl! and adontion) * * * END OF CONSENT CALENDAR * * * Agenda -4- September I, 1998 ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council's jurisdiction that is not an item on this agendn for public discussion. (State WW, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the "Request to Speak Under Oral Communications Form" avaiwble in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, pleasefill out the "Request to Speak Form" avaiwble in the lobby and submitit to the City Clerk prior to the meeting. 14A. PUBLIC HEARING - INTENT TO CONSIDER GRANT OF AN EXCLUSIVE GAS AND ELECTRIC UTILITY FRANCHISE TO SDG&E - This is a grant of a five-year franchise (from July I, 1998 through June 30, 2003) of the City's exclusive Gas and Electric Utility Franchise ('Franchise") to San Diego Gas & Electric (SDG&E). Staff recommends Council place these ordinances on first reading. (City Manager and City Attorney) B. ORDINANCE 2746 - GRANTING TO SAN DIEGO GAS & ELECTRIC COMPANY, ITS SUCCESSORS AND ASSIGNS, THE FRANCHISE TO CONSTRUCT, MAINTAIN AND USE, POLES, WIRES, CONDillTS 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 (first readinll) C. 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 (first readinll) 15A. PUBLIC HEARING - REGARDING THE ADJUSTMENT OF THE TELEGRAPH CANYON SEWER DEVELOPMENT IMPACT FOR GRAVITY FLOWS - On October 27 , 1992, Council adopted Ordinance 2533 establishing the Telegraph Canyon Sewer Development Impact Fee. This fee was established to provide sewer improvements within the Telegraph Canyon Sewer Basin to handle the incremental increases in sewage flow anticipated within the Basin. The established fee is $184 per Equivalent Dwelling Unit (EDU). It is time to revisit this fee and update it in accordance with the ordinance which requires inflationary adjustment based on the Engineering News Record (ENR) "Construction Cost Index'. Any increase in this fee must have Council approval. The subject resolution, if approved, will increase the fee to $216.50 per EDD. It is important to note that this fee increase is necessary to cover cost increases to build the originally proposed facilities. Staff recommends approval of the resolution. (Director of Public Works) B. RESOLUTION 19156 - APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR THE TELEGRAPH CANYON SEWER DEVELOPMENT IMPACT FEE AS PROVIDED FOR IN ORDINANCE NO. 2533. 16A. PUBLIC HEARING - REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE Agenda -5- September I, 1998 MAINTENANCE DISTRICT [OTAYRANCH -SPA ONE, VILLAGES 1 & 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 -OnJuly28, 1998, Council approved the Resolution of Intention 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 of Otay Ranch SPA I, Villages I and 5. Tonight's action will continue the formal proceedings leading to the establishment of CFD No. 97-1. Staff recommends approval of the resolutions. (Director of Public Works) 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 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. Staff recommends approval of the resolutions. (Director of Public Works) 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 EST ABLISHING 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 ESTABLISH 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 I, 1998. This district will fund tbe perpetual operation and maintenance of open space slopes, drainage channels, detention basis, 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 Agenda -6- September 1, 1998 will continue the formal proceedings leading to the establishment of Community Facilities Districts Nos. 98- 1. Staff recommends approval of the resolutions. (Director of Public Works) 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 I WEST, 2, 2 WEST, 6, 7, & PLANNING AREA 12]). C. RESOLUTION 19162 - 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 CERT AIN SERVICES TO THE QUALIFIED ELECTORS. 19A. 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 CERT AINPUBLIC 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 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 tot he establishment of Community Facilities District Nos. 98-2. Staff recommends approval of the resolutions. (Director of Public Works) B. RESOLUTION 19163 - 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. RESOLUTION19164 - FORMlNG AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OT A Y - SPA TWO, VILLAGES 6 & 7]) AND AUTHORIZING THE SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one ofthe City's Boards, Commissions, and/or Committees. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantiol discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" foml avaikible in the lobby and submit it to the City Clerk prior to the meeting. None Submitted. Agenda -7- September I, 1998 ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removedfrom the Consent Calendnr. Agendn items pulled at the request of the public will be considered prior to those pulled by Councilmembers. OTHER BUSINESS 20. CITY MANAGER'S REPORTlS) A. Scheduling of meetings. 21. MAYOR'S REPORT(S) Ratification of appointments: Growth Management Oversight Commission - Gustavo Perez (to till a vacancy created by Commissioner Peter, whose term expired on June 30, 1998). Economic Development Commission - William Tunstall (to fill a vacancy created by Commissioner Reynolds, whose term expired on June 30, 1998). International Friendship Commission - Oscar Garcia (to fill a vacancy created by Commissioner Schlegel, whose term expires June 30, 2000) Library Board of Trustees - Maryel1ene Deason (to fill a vacancy created by Commissioner Alexander, whose term expired on June 30, 1998). Design Review Commission - Cheryl Mestler (to fill a vacancy created by Commissioner Spethman, whose term expired on June 30, 1998). Child Care Commission - Samuel Russo (to fill a vacancy created by Commissioner Hartman, whose term expired on June 30, 1998) and Emerald Randloph, Ex-Officio (to fill a vacancy created by Commissioner Robinson, whose term expired on Juoe 30, 1998). 22. COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to (a closed session and thence to) the regular City Council meeting on September 15, 1998 at 6:00 p.m. in the City Council Chambers. August 27, 1998 TO: The Honorab1e,Mayor and City Co~, David D, Rowlands, Jr., City Mana~ FROM: SUBJECT: City Council Meeting of September 1, 1998 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, September 1, 1998. Comments regarding the Written Communications are as follows: 5a. 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 8/11/98, 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. IT IS RECOMMENDED THAT ANGELA KODICEK'S RESIGNATION FROM THE YOUTH 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. DDR:mab "I declaro tinder j~naltY ~f p~rj~.ry t~Dt I am emnioye'1 b~J t','(.l:' i,:rtv of Chu~a vista In the II',,.. .;-. .>.'r-. ii \:~,;.\-t, :';;j""'!"1 tiv!t I posted . Tuesday, September I, 1998 o,~.e o. ""';;., !;."in Bo~rd at Council Chambers 4:00 p,m, thl~" .,. " " " ,'" y Hail ori'ub 'c Services Building (immediately following the City cotli\@.it'M'~i;ttngt;o,'o9'" i/<' , .., ) " DAll:.D,2L~_.L4- ~,_..-. CHULA VISTA CITY COUNCIL CLOSED SESSION 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 permitted by low 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 action taken in closed session, and the votes taken, However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the 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) I. Granite Construction Company v. City of Chula Vista 2. Fritsch v. City of ChuJa Vista, et a!. 3. Davis v. Authdet . Significant exposure to litigation pursuant to Government Code Section 54956.9(h) - 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 . None ~Vt~ ~ ~~~~ CllY Of (HUlA VISTA OFFICE OF THE CITY A TIORNEY Date: August 12, 1998 From: The Honorable Mayor and City Council John M. Kaheny, City Attorney ~ Report Regarding Actions Taken in Closed Session for the Meeting of 8/11/98 To: Re: The City Council met in Closed Session on 8/11/98 to discuss: Existing litigation pursuant to Government Code Section 54956.9: Fritsch v. City of Chula vista and Busalacchi v. city of Chula Vista. 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: 19k C:\lt\clossess.no WRITTEN COj9AMU~~ICA TIONS 5-~ 276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (119) 691-5037 . FAX (619) 585-5612 @1'oII.c.rur.1'lIc\dIII"- RECEIVED "98 AIil 18 AlO:1 0 CITY OF CHWLA VIST i\ CITY CLERK'S OFFICE August 17, 1998 The City of Chula Vista Beverly A. Authelet, City Clerk 276 Fourth Avenue Chula Vista, CA 91910 Dear Ms. Authelet: I hereby resign my appointment to the Youth Commission ofthe City of Chula Vista as of August 17, 1998. The reason for my resignation is the beginning of my college career at the University of Arizona in Tucson. It has been an honor and a privilege to serve on the Youth Commission these past four years. I can only hope, that in some small way, my contribution as a Commissioner has helped to make our city a better place in which to live and work. You have my best wishes for the continued success of the Youth Commission in the years to come. Sincerely, ~~cxI ~h Angela S. Kodicek 517 Manzanita Street Chula Vista, CA 91911 619-421-2061 WRITTEN CO/i.l\',,\U~JICA TIONS 5-'0 COUNCIL AGENDA STATEMENT #~7 Item Meeting Date 09/01/98 ITEM TITLE: fq l'-l~ RESOLUTION A Approving a three year contract with the Unisys Corporation for the maintenance of hardware and software for the Unisys Computer Aided Dispatch System. SUBMITTED BY:. Director OfManag~\\~t and Information services}tJ REVIEWED BY: City Manager ~R. , M\ (4/5ths Vote: Yes_No...xJ In March, 1997, Council approved a contract with the Unisys Corporation for a Police and Fire Computer Aided Dispatch System. The System went live on August 16 and is functioning well. In order to keep the system running at peak efficiency, a maintenance contract with the Unisys Corporation is necessary. As part of the contract to purchase the system, Unisys was required to provide the City of Chula Vista with maintenance of the equipment for the first three years. The proposed maintenance contract includes features such as an annual rate cap and several performance thresholds which must be met by Unisys. RECOMMENDATION: That Council adopt the resolution approvmg the three-year maintenance agreement with Unisys Corporation. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: In March, 1997, Council approved a contract with the Unisys Corporation for a Police and Fire Computer Aided Dispatch System. This system operates on a set off our Unisys servers to control the computer aided dispatch functions for Police and Fire, to handle inquiries to ARJIS and SUN as well as other functions. In addition to the servers, the system contains many other pieces of equipment to allow various computers in the Police and Fire Departments to connect to the CAD to perform their work. This hardware is manufactured by the Unisys Corporation and has warranties associated with the many parts of the system. Some parts have a three year on-site warranty and as such are covered at no charge. Some parts have a one year on-site and a two year depot warranty associated with them and this contract upgrades the last two years of the warranty to on-site. The remainder of the equipment has varying lengths of time for the warranty and this contract will increase the maintenance to three years on-site. Since this equipment is manufactured by Unisys, they are the most familiar with the equipment and they are the most qualified to service the equipment as well. They have technicians who have been trained specifically on our hardware and will maintain it at optimum efficiency. Staff feels that this contract best meets the interest ofthe City and has provisions for such features as an annual rate cap as well as performance standards. The proposed contract is for the Unisys "Comprehensive Platinum" service which is the highest service offered by Unisys. This will ensure that the Police and Fire Dispatch System will continue to operate at peak efficiency 24 hours per day, seven days per week. In addition, this contract assures the City that the equipment will be maintained to a level such that the system will function properly after the turn of the millennium. This contract also protects the City should Unisys fail to perform their duties as stated in the contract, one item of consequence should be noted. The City has the right 7-/ Page 2 Item 'If-1 Meeting Date 09/01198 to cancel this contract at any time if Unisys fails to perform, the City discontinues use of the equipment, or the City lacks the funds to pay the contract. If, however, the City cancels the contract for any reason other than the three reasons stated above, the City would be required to pay a cancellation fee equal to 20% ofthe remaining maintenance charges from the termination date to the end of the term of the contract. Staff foresees no reason why the City would cancel the contract before the end of the term and does not feel that this clause poses a significant risk to the City. FISCAL IMPACT: The cost for the maintenance contract for FY 1998-99 will be $30,068.04. This amount has been included in the FY 1998-99 budget for Management and Information Services. This cost will increase at the beginning of years 2 and 3 by CPI up to a maximum of 5% each year as part of the contract. 1~~ RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE YEAR CONTRACT WITH THE UNISYS CORPORATION FOR THE MAINTENANCE OF HARDWARE AND SOFTWARE FOR THE UNISYS COMPUTER AIDED DISPATCH SYSTEM WHEREAS, in March, 1997, Council approved a contract with the Unisys Corporation for a Police and Fire Computer Aided Dispatch System, which system went live on August 16 and is functioning well; and WHEREAS, in order to keep the system running at peak efficiency, a maintenance contract with the Unisys Corporation is necessary; and WHEREAS, the proposed contract includes features such as annual rate cap and several performance thresholds which must be met by unisys. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby approve a three year contract with the Unisys Corporation for the maintenance of hardware and software for the Unisys Computer Aided Dispatch System, a copy of which shall be kept on file in the office of the city Clerk as Document No. (!f)C(;:?, (2..? BE Chula vista contract for IT FURTHER RESOLVED that the Mayor of the city of is hereby authorized and directed to execute said and on behalf of the City of Chula vista. Presented by Approved as to form by Louie Vignapiano, Director of Management and Information Services H:\home\lorraine\rs\unisys.cad ;;.3 . UNISYS Supplemental Schedule Order IAgr::~t ;::;~ Client CITY OF CHULA VISTA Description of Products/Services ADDITIONAL SURETY SERVICES This Order consists of the Products and/or services described on the forms listed and checked below: . Check if Number Tota! oollars Description applicable of pages o ~ o o ~ ~ o o o Equipment Sale Supplemental Schedule 3 1,149.00 SURETY Support Services Supplemental Schedule Software Licenses Supplemental Schedule Information Services Supplemental Schedule SURETY Support Services Supplemental Schedule 2 1,356.67 N/A ADDITIONAL TERMS AND CONDITIONS 3 This Supplemental Schedule Order is subject to Unisys acceptance, is placed under the Agreement identified by the Agreement Number above, and is governed by its terms and conditions. If there is no Agreement Number above at the time Client signs the Order, the governing Agreement is identified immediately below by titie and form number (if any), is attached to this Order, and will be assigned an Agreement Number upon Unisys acceptance. Agreement title and ioon number (complete only if there is no Agreement Number in the block above) Agreed and Accepted Unisys Corporation Client ~~,.~~~;.. CONTRACTS MANAGER UNISYS CORPORATION (PTlntectlyped name) (SignahKe) gj.r/le (Dale) (Signature) (Date) (Printe<llyped name) (Td~) (Tdle) {!..b 9t,/:2<;f 4305S2~O/(~{lq \? 1,/ .. UNlSYS SURETY Support Services Supplemental Schedule IAgr::::toN8u9mber Equipment Location 999999-9998 CITY OF CHULA VISTA Bill To Location 999999-9998 CITY OF CHULA VISTA Administrator Administrator Telephone nll11ber Service Level (C) Comprehensive Platinum (G) Comprehensive Gold (P) Perlormance Gold (S) Perlormance Silver (A) Partner Silver (B) Partner Bronze Telephone number Initial term (Check jf more than one year) o 2 years 0 3 years 0 Other: Service Access (Check one) o Standard 0 Premium Annual rate increase cap(3.year initial term or longer) SURETY Support Services Commencement Date 5.00% 08-16-98 Billing period (Check one) o Quarterly 0 Annual 0 Other: MONTHLY years List of Products Applicable to This Agreement level Style Description (Indude vendor name and mode! if non Unisys product) Quantity Monthly Service Warranty Upgrade Period Unit charge Total dlarge Mmly SURETY Unit charge Total charge CHULA VISTA MAIL/REPORT/BACKUP SERVER C SDR600081-BAS SYS:BASE SYS RACKMOUNT 1 36 89.00 SDR600081-Z SYS:P6 Z-BOX RACKMOUNT 1 CAG61-ADV ACC:DRIVE CAGE 6SVC DR 1 C SDP6166-512 PROC:166MZ 512KB VRM SNK 1 36 20.00 C SDP621-SIM MEM:SDP/SDR SIM MEM CARD 1 36 4.00 C MTP6-16M MEM:60NS PARITY/TIN/72P 8 D@@ C PCI300-SUW CTRL:ULTRA WIDE SCSI 1 D@@ WARRANTY UPGRAI TO EQUIPMENT ON-CALL REME IAL lAIN ENANCE. $144.00 PREPAII FOR 36 MONTHS. C HDS4000-WC7 DISK:4GB U-WIDE SCA 7200 2 D@@ WARRANTY UPGRAIP;; TO EQUIPMENT ON-CALL REME IAL ~IN' ENANCE . $1224.00 PREPAI~ FOR 36 MONTHS. C CDR1200-S1 DISK:12-SP INT SCSI CDR 1 D@@ Charges If Client is ordering SURETY Support Services for equipment which has a Monthly Service Warranty Upgrade Period ("Period"), the following applies. This Period is the number of months, if any, indicated for each item of equipment commencing on the item's installation Date. During any portion of this Period in which the ordered SURETY Support Services are in effect for the equipment, the then-applicable Monthly Service Warranty Upgrade charge will apply insfead of the Monthly SURETY charge. Services Services, including SURETY Support Services, apply only to properly configured Products at the minimum hardware and software levels designated by Unisys for support of the applicable Product specification. If the Unisys Product specification for the release level being used by Client explicitly includes time and date functionality, such as time and date functionality for Year 2000, Unlsys will repair or correct material deviations that prevent the Unisys Product from conforming substantially to the specification. Except as provided in the immediately preceding sentence, all Services provided by Unisys exclude repair of damage or correction of errors related to: (i) time and date functionality, including time and date functionality for Year 2000; and, (ii) defects in the design, manufacture, materials or workmanship related to non Unisys products and services. 112220 89.00 155.00 155.00 20.00 34.00 34.00 4.00 8.00 8.00 INCL. 6.00 6.00 29.00 58.00 8.00 8.00 Page subtotal. Upgrade charges $ 113.00 Total upgrade charges Page subtotal. Moothty charges $ 269.00 Tau; monthly charges $ 1149.00 Olhar $ Grand Total $ Other 437.00 $ Upgrade Grand Total $ $ lof 3 ~ .I}- S- 4305 6274-L04 (4198) SURETY Support Services Supplemental Schedule List 01 Products Applicable to This Agreement (Continued) Level Style Description Quantity (Inducle vendor name and model n non Unisys product) WARRANTY UPG TO EQUIPMENT ON-CALL REME IAL $180.00 PREPAI FOR 36 MONTHS. C ETH101006-PCI C NTS40-L COMM HW:SMC 10/100TX ADP O/S: NT 4.0 SERVER CHULA VISTA S PRO CADLINK SERVER C CWP50033-ZFA CWP50033-ZA CWP5003-0K1 WARRANTY UPG $1026.00 PREPAI C PRC575-P54 C MPM4-4M C HDI1200-4 WARRANTY UPG $144.00 PREPAI C PCK104-SKB C ETH101006-PCI C WIN95001-LOD C PWM1-PS2 C B25-LC CHULA VISTA MD C SDR600081-BAS SDR600081-Z CAG61-ADV C SDP6166-512 C SDP621-SIM C MTP6-16M C HDS4000-WC7 WARRANTY UPG $1224.00 PREPAI C CDR1200-SI WARRANTY UPG $180.00 PREPAI C ETH101006-PCI C NTS40-L C PCT4000-INT WARRANTY UPG 540.00 PREPAI 112220 SYS:CWP 3SLT BASE SYSTEM SYS:AQUANTA CWP 3SLT ZBX ACC:CWP 3SLT OP KIT TO EQUIPMENT ON-CALL REME IAL FOR 36 MONTHS. PROC:INTEL 75 MHZ P54C MEM:4MB EDO SIMM, 60NS. DISK:1.2GB 4500RPM IDE TO EQUIPMENT ON-CALL REME IAL FOR 36 MONTHS. KEYBD:SPACE SAVER COMM HW:SMC 10/100TX ADP 0/S:WIN95 PRELOAD SW MOUSE:2 BUTTON MOUSE/PS2 PWR CORD:LINE CORD MESSAGE SWITCH SYS : BASE SYS RACKMOUNT SYS:P6 Z-BOX RACKMOUNT ACC:DRIVE CAGE 6SVC DR PROC:166MZ 512KB VRM SNK MEM:SDP/SDR SIM MEM CARD MEM:60NS PARITY/TIN/72P DISK:4GB U-WIDE SCA 7200 TO EQUIPMENT ON-CALL REME IAL FOR 36 MONTHS. DISK:12-SP INT SCSI CDR TO EQUIPMENT ON-CALL REME IAL FOR 36 MONTHS. COMM HW:SMC 10/100TX ADP 0/5: NT 4.0 SERVER TAPE: 4GB INTERNAL TAPE TO EQUIPMENT ON-CALL REME IAL FOR 36 MONTHS. Monthly Service Warranty Upgrade Period Unit charge Total charge IN ENANCE. 1 D@@ 1 1 36 1 1 1 D@@ 2 D@@ 1 D@@ IN ENANCE. 1 D@@ 1 D@@ 1 1 D@@ 1 1 36 1 1 1 36 1 36 8 D@@ 2 D@@ 89.00 89.00 15.00 4.00 15.00 4.00 IN ENANCE. 1 D@@ I ENANCE. 1 D@@ 1 1 D@@ Agreement Number I 95070~89 ---- L____.__ Monthly SURETY UnM charge Total charge INCL. 19.00 19.00 40.00 40.00 INCL. INCL. 7.00 7.00 INCL. INCL. INCL. INCL. INCL. 155.00 155.00 34.00 8.00 INCL. 29.00 34.00 8.00 58.00 8.00 8.00 INCL. 19.00 26.00 19.0C 26.0C Page subtolal . Upgrade charges Page .sulKotal . Monthly charQes $ 108.00 $ 374.0r -2of~ 7-t;, 4305 62.74-L04 (4i 1."'\ ' SURETY Support Services Supplemental Schedule Agreement Number 95070089 List of Products Applicable to This Agreement (Continued) Level IStyle Description (Include vendor name and model n non Unisys producl) Quantity Monthly Service Warranty Upgrade Period Unit charge Total charge Monthly SURETY Unit marge Total marge CHULA VISTA CAr SERVERS C SDR600081-BAS SYS: BASE SYS RACKMOUNT 2 36 89.00 178.00 155.00 310.00 SDR600081-Z SYS:P6 Z-BOX RACKMOUNT 2 CAG61-ADV ACC:DRIVE CAGE 6SVC DR 2 SDR600081-LBN ACC:SDR LABEL FOR NT 2 C SDP6166-512 PROC:166MZ 512KB VRM SNK 2 36 15.00 30.00 34.00 68.00 C SDP621-SIM MEM:SDP/SDR SIM MEM CARD 2 36 4.00 8.00 8.00 16.00 C MTP6-16M MEM:60NS PARITY/TIN/72P 16 D@@ INCL. C HDS4000-WC7 DISK:4GB U-WIDE SCA 7200 2 D@@ 29.00 58.00 WARRANTY UPGRAI E TO EQUIPMENT ON-CALL REME IAL !lAIN' ENANCE. $1224.00 PREPAID FOR 36 MONTHS. C CDR1200-SI DISK:12-SP INT SCSI CDR 2 D@@ 8.00 16.00 WARRANTY UPGRAI 1:; TO EQUIPMENT ON-CALL REME IAL !lAIN' ENANCE. $360.00 PREPAI[ FOR 36 MONTHS. C ETH101006-PCI C NTS40-L COMM HW:SMC 10/100TX ADP O/S: NT 4.0 SERVER 2 D@@ 2 INCL. 19.00 38.00 "D@@" designatE equipment receives the Service Warrant~ remaining on the Unisys system unit to ~hich initially attached, but not less tt~ "D12" service. 112220 1~f-2 Page subtotal. Upgrade chaJges Page _ . Monthly cIlaJges $ 216.00 $ 506.00 4305 6274-L04(4198) . UNISYS SURETY Support Services Supplemental Schedule Equipment Location VARIOUS Bill To Location CITY OF CHULA VISTA Mninistrator Telephone number Actninistratcr T etephena number rgreeme;~:;::~ Service Level (C) Comprehensive Platinum (G) Comprehensive Gold (P) Performance Gold (S) Performance Silver (A) Partner Silver (B) Partner Bronze Inn~llerm (ChscIr if mom than one yearj o 2 years 181 3 years 0 Other. years Service _ (ChscIr one) o Standard 181 Premium Annual rate increase cap (~ysarinilial term orlonger) SURETY Support Services Commencement Dale 5.00 % 08-16-98 Billing peliod (ChscIr one) o Quarterly 0 Annual 181 Other. MONTHLY Ust of Products Applicable to This Agreement lsvel style OescripIion (Include vendor name and IT\Cldel if non Unisys product) Quantity Monthly Service Warranty Upgrade Monthly SURETY UnHcharge Total charge Un~charge Total charge C 549303931 CISCO 4700M MODULAR PTR 1 109.65 109.65 C 534016951 CISCO 4500/4700 10S/IPX 1 33.54 33.54 C 545426934 CISCO 6 ETH PORT 10-BASET NP 1 77.40 77.40 C OM323000- YI CISCO 8 PORT ISDN BRI NP MOD 1 20.64 20.64 C OM266000- YI CISCO 4 SER PORT NP MOD 1 59.34 59.34 C 545385932 8MB UPG REPL 4MB FLASH 1 9.03 9.03 C 545386930 8MB UPG REPL 4MB SHARED MEM 1 9.03 9.03 C 545428930 32MB UPG REPL 8MB MAIN MEM 1 38.70 38.70 C 531010957 766 ENET ISDN Nil IP/IPX 7 10.31 72.17 C 549860930 CISCO 760 SER REMOTE OFF FEAT 1 3.87 3.87 C OM96000-HO MOTOROLA ISDN TERMINATOR 8 2.91 23.28 C 370032936 ISCA SDLC BORD (ISA) 1 10.86 10.86 C TD473338 10BASET TO 10BASEFL 4 5.79 23.16 C OM237000-YI 2504 TR DUAL SER ISD BRI RTR 1 28.32 28.32 C OM235000- YI 2502 TOKEN RING DUAL SER RTR 2 19.29 38.58 C 545977936 4MB TO 8MB FLASH UPGRADE 2 5.16 10.32 C OM306000-YI OPT. 16MB OF DRAM MEMORY 2 19.35 38.70 C 534126958 CISCO 2500 SER. 10S IP/IPX IBM 2 24.51 49.02 C 542920939 MALE DTE V.35 10' 2 1.29 2.58 C OM21000-8AF 10/100 ET SWITCH 2 148.44 296.88 C OM25000-A8F 10BASET HUB 12 PORT 4 10.95 43.80 C 861735926 10BASET MDI MEDIA ADAPTER 8 1.67 13.36 Charges Page subtotal ~ Upgrade charges Page subtotal. Monthly charges If Client is ordering SURETY Support Services for equipment which also has a Service $ $ 1012.23 Warranty period, the following applies. During the Service Warranty period, or any portion T etal upgrade charges Total monthly charges of this period, the equipment receives the SURETY Support Services ordered. The Monthly $ $ SURETY charge for equipment will not apply during the Service Warranty period; however, other Other the Monthly Service Warranty Upgrade charge will apply. $ $ Services Upgrade Grand Total Grand Total Services, including SURETY Support Services, apply only to properly configured Products $ $ 1356.67 at the minimum hardware and software levels deSignated by Umsys for support of the applicable Product specification. If the Unlsys Product specification for the release level being used by Client explicitly includes time and date functionality, such as time and date functionality for Year 2000, Unisys will repair or correct material deviations that prevent the Unisys Product from conforming substantialty to the specification. Except as provided in the immediately preceding sentence, all Services provided by Unisys exclude repair of damage or correction of errors related to: (i) time and date functionality, inciuding time and date functionality for Year 2000; and, (ii) defects in the design, manufacture, materials or workmanship related to non Unisys products and services. 1~Y 1 of 2 - - 4305 6274-003 (9/97)) , \) " SURETY Support Services Supplemental Schedule rgmem::o~:::~ List of Products Applicable to This Agmement (Continued) Level Style Desaiption (Include \I9l1dor name and model if non Unisys product) Quantrty Monthly Service Warranty Upgrade Monthly SURETY Unit charge T olal charge Unrtcharge Total charge C 861737922 BAY ADVANCED SNMP NMM 1 9.02 9.02 C 861739928 BAY CABLE FOR BAYSTACK 3 .89 2.67 C OM18000-A8F 100BASET HUB 12 PORT 2 30.65 61.30 C OM19000-8AF 100BASET HUB NMM 1 25.74 25.74 C 860873926 100BASET HUB CASCADE CABLE 1 1.34 1.34 C OM1000-A8F REDUNDANT POWER SUPPLY 3 40.44 121.32 C OM11900-SZ MANAGED 8 PORT HUB 8 10.31 82.48 C ONS153-1 1 PORT T1 DSUlCSU 2 15.54 31.08 C OM96000-HO MOTOROLA IDSN TERMINATOR 1 2.91 2.91 C OM13000-BX US ROBOTICS 28.8 DATA FAX EXT 2 3.29 6.58 ~/9 Page subtotal - Upgrade charges Page subtotal. Monthly charges $ $ 344.44 2 of 2 - - 4305 6274-(l03 (9/97)) . -UNlSYS Consolidated Agreement State and Local Government Unlsys Corporation (Unlsys) wiD sell and license Products and services and Client agrees to purchase and license those Products an. services under the following terms and condlllons: 1. Dellnitlons 1.1 Software means the object code version of computer programs and Iny releted documentation, excluding mlintanance dilgnostics. Softwara IIso means !he source code version whera provided by Unisya. Software Ilso meana miaocode, not embedded in I circuit element, lhat eneblee !he equipment to function Iccording to ils published specifications. 1.2 Products means equipmen~ Softwlra, documentation (includ- ing IIlIIlUllIs and education material8) and Software maintenance relea_ and updltes. 1.3 Software Processing Unit rSPU") mllns equipment which controls and executes Software. 1.4 SURETY Support Services meana VlriOUS forms of instellltion Ind support for !he Products. 1.5 Proprietary Informellon menna Softwlra, dilgnostics, docu- mentation, including manuals, and any other informltion confidentill to Unisys or ils licensors. 1.6 Informltlon Services means aU technicel and consultativl services other Ihan SURETY Support Services. 1.7 Installallon Data meana !he dete Unisya completes installltion (IS determined by Unisys) or, n equipment or Softwlre is 10 be inslaDed by Clien~ thl IlIIth day following shipment 2. Effective Date ThIs Agreement willlleoolM effective when signed by duly IUtho- rized raprasenllltives of both parties and wiU continue in effect until terminated according to ilIlennlI. 3. Schedules. Ordering Procedure 3.1 Unisys will furnish to C&ent and CUent wUI accept and pay for !he Products and 8IIVices itemized on !he following Schedulee which, together with !he lennlI on !he Schedules, are an integral pert of this Agreement SeIIedu" naml ~ment Sale SURETY Support Services SoItWlInI Licen_ Inlonnetion Servicee AD raferences 1Il Products and 8IIVices in this Agreement are to the Products and 8IIVices Iiated on the Schedules and on Iny Schedules umltted to and ecoepted by Unisys pursuant 1Il Section 3.2 and 1Il any Products and 8IIVices 8lIpprllld by Unisya with such rlSted Products and lIlVices. 3.2 Client may order edditlonal Products Ind services under this Agreement by submitting properly completed Unisya Supplemental Schedule Orderw raferlllCing this Agreement All Orders wUl refer to this Agreement by number and wiU be signed by Client AU education lecturl courves must be ordered on I Client Education Enrollment Application. 3.3 AD orderw era subject 1Il ecoepten.ce by Unisys. Acceptanca by . /7_ t:J /. ,/. 2.114 . Unisya will be effective when communicated in writing to Client Th.: receipt or deposit by Unisys of I Client down plyment wiU no constitute Icceptance of In order. Any down payment received frotT Client wUI be returned n thl order is not accepted by Unisye. 3.4 Unisys may substitute Products of equivalent or 8lIperioi functionality and performance in the lVent thet any of the ProdU<l(;o ordered arl not IVlilable It the time of shipment ~', 4. Delivery and Install allan 4.1 Unisys wUl enange for detivery of Products and Client will PlY for transportation in Iccordlnce with !he Unisya plblished transpor~ tation charges in effect It the tima of detivery or, if Unisya has no. published eny such charges, Client wiU pay Unisys for Iran: portation charges Ictullly incurrad. Client wiU also pey for aU cable;; end site-specific installltion materiels requirad to insleU !he equip- mentlt Cnents site. 4.2 Unisys wUl provide Client with one copy of the then-current U8If documentation, in paper or eleclronic form It the option 01 Unisys, for use with !he Products ordered and enviranmental specificetion-~ for equipmen~ where applicable. Prior to delivery of equipmlll~ Cnenl will prepera the installation site and wiU continue 1Il mainteir the insteJlltion site in Iccordlnce with such specificetione. 4.3 Client will install III items of equipmlllt with the designation "Y~ in the 'Client instelleble' column whlll thera is no instalIetiol' charge listed on the Equipment SIIe Schedule. Unisya wiD install III other items of equipment Client will insleU aU items of Software other than those for which I fixed instalIetion charge 18 indJceted on the Soflwere Ucen_ Schedull. All Products to be installed by Unisya will be insleUed during Unisya normel working hours, unless otherwise provided in this Agreement 4.4 Client may arrange for InsleUetion by Unisys of Client installeble Products, subject to the therH:Umlnt standard Unisya charges and conditione. 4.5 If edditionellebor and rigging is required for InstalIalIon due to Client. speciel silll requirements, Client wi pay those costa including costs to meet union or locaIlew requirements. 5. Payment 5.1 Charges for Products wUl be invoiced upon shipment 5.2 Chlrgea for SURETY Support Services wiD be invoiced in Idvance, monthly, lMuslIy, or al other pariodJc intervels; otherwise, charges wiD be invoiced eIIer the services era perfonnecl. Hourly use, plge and remolll service charges will be invoiced monthly lUllesI otherwise Indiceted. Uniays racognizes thet some goverr:- ment entitiea era prohibited from paying in edvence and theref~ wiU not PlY until the services Ira renderad. 5.3 Cherges for Information Services will be invoiced 8S th: services ere performed. 5.4 All chlrges must be paid no lIter Ihan 30 dlYs from the dete 0, the invoice. Unisys may impose I lIte payment charge equal to th: lesser of (I) 1-1/2% per month or (b) the maximum rate allowed by Ilw. aJ5 6lO7412 (1lW5; S.5 Additional chargeo may apply to services rendered outside con- - tracted hours or beyond normal cov8l1lge at CUanrs reques~ a.g.. travel axp_, premium end minimum chergeo. 6. Taxes 6.1 Client will pay any tex UniBya becomes obUgated to pay by virtue of this Agreemen~ exclusive of texes based on tha net income of Uniays. 6.2 All personal property and similar texes assessed after shipmant will be paid by CDent 7. Price Protec:tIon 7.1 The chergeo for Produclll in any accepted order will remain firm through delivery. unless through no fault of Uniays shipment takeo place more than one y_ after the data of the order. If Uniays notifies Cnent thet an increase in chargeo will apply to ita order. Client may I8nninata the affected pari of ita order by giving wriften nolice to Uniaya within Ian deya of the data of notificetion of the increase. 7.2 SURETY Support S8/Yices charges will not b. incr.ased during the firat twelve montha following the comm.ncem.nt of those services. The charges may b. increesed th.reafter on each anni- versary of the commencement data following 90 days prior writt.n notice to CDen~ unIesa otherwise noted on the SURETY Support S8/Yices Schedule. 7.3 Charges for Softwere Ucensea and Information S8/Yices wiU not b. increased during any one-y_ l8nn, but may b. increased prior to any subsequent Iann upon 90 days prior written notice to CDent If Software or services are contracted on a month-to-month basis the charges may be increased at any time following 90 days prior writtan notice. a. Security Interest UniBya ~es a purchau money security intarest in equipment unlll payment in fuU Is received for aU equipment delivered to Client end. for thet purpoae. lhIa Agreement is a security agreement By signing lhIa Agreemen~ CDent authorizes Uniays or ita agent to sign on behalf of Client the ~ financing stalamanta. or to fil. a reproduction of a financing statement Alternatively, UniBya may file this Agreement or a copy of lhIa Agreement to perfect ita aacurity intareel If lhIa Agreement or a copy of ft is filed, information concerning the security inlllraat may be obtained fnxn UniBya at the eddrea stated in Section 17. 9. Clients Operational Rasponsibilllles 9.1 Client ac:kMwIedges ft '- indapendantly del8nnined that th. Producta and aerviceI ordered under lhIa Agreem.nt meat ita requirementa. 9.2 Client '- sole reeponamllity for use of the ProducIlI, includ- . ing opereting procedures. audit controls, accuracy end security of input end output data. restarI end recovery routines. and other procedures neellllry for Clienrs intended use of the Producta. 9.3 CDent will 8lIIurII that fta personnel ere. at aU times. educated end trained in the proper use end operetion of the Producta and that tha ProducIlI ere used in acoordance with appUcabl. Unisya manuall and inatructionl. 9.4 CDent wiD maintain back-up data necessary to replace critical Client data in the event of loss or damage to such data from any cause. . 9.5 If Unisys is providing SURETY Support S8/Yices. cUent will (s) maintain tha op.reting environment in aocordance wfth Unisys specifications. (b) provide adequate working end atorege spece for use by Uniaya personnel near the equipmen~ (c) provide Unlsya fuU aCC888 to the equipm.nt and auflicient computer time. subject only to CIi.nrs security rules. (d) follow UniBya procedures for placing service requests end determining if r.medial service is required. (e) follow Unisya instructions for operetor maintanenoa end obtaining sarvices, (f) provide a memory dump end additional data in machine readable form if request.d. (,g) reproduce suspected errors or malfuncliona in Softwar., and (h) instaU aU error conectiona and maintenance rei..... supplied by Uniaya. 9.6 Information S.rvices suppUed by UniBya under lhIa Agreement ar. provided to .saist Client CDen~ not UniBya, wiD be responsible for determining objectives and obtaining S!-. desired resulta. 10. Protecllon of Proprle!.aly Information 10.1 CUent wiD keep in confidence end prol8cl Proprietary In- formation from disclosure to third parties end restrict fta use ea provided in this Agreemant CDent acknowledges that lIII8Uthorized disclosur. of Proprietary Information may ceuse BstanDeI economic Ioaa to Unisya or ita 1ican8cn. AD materiala contain- ing Proprietary Information wiU be marked with "Proprietary'. 'ConfidenDeI'. or in a manner which gives notice of fta proprietary natur.. Proprietary Information will not b. copied. in whole or in part, except when essential fei correcting, genareting or modifying Proprialaly Inform.tion for CUanrs .uthorized use. Each copy, in- cluding ita storeg. media. will b. marked by eDent wfth aI nolicea which app_ on th. original. . 10.2 Upon I8nnination or canceUation of any license granted under thit Agreeman~ Client wiH destroy (and, in writing, certify deatruction) or return to Unisya aU copies of the Software the license for which has been 80 terminated or canceled and any other ralated Proprietary Information in CUenr. poIImicn fmcluding Proprielaly Information incorporated in other aoftware or writings). 10.3 Any id.... concepta. know-how. data processing techniques. Softwar., docum.ntation, diagrams, schematics or blueprinta developed by UniBya p.rsonnel (alone or jointly wfth CUent) in connection with Information S8/Yices provided to Client wi be the .xclusiv. property of Uniay.. UniBya granta to Client a non- .xclusiv., royalty-free license to use any of tha foregoing in accor- dance with the terma of this Agreement. 10.4CUent acknowledges that aI support matariala.1ncIuding with- out limitation, diagnostic 8Oftwere, are the property of and incIud. Proprielaly Information of Unisya. CDent aaauraa that such materials wiD b. used only by UniBya maintenance peraonnel, and that Unlsya has the right to remove such materiela fnxn Clients facility at any time. This provision applies even though auch malal..... may be lialad in the UniBya prices Dsta, cataloga, invoices or contraclll. 10.5 CDent wiD inform ita .mploy_ of their obUgetiona under lhIa Section 10 end instruct them 80 as to ensure such obligations are mat 10.6 This Section 10 will survive termination or canceUation of this Agreement 11. Ucens. , 11.1 Uniaya granta to Client . personal. IlO/Hlxclusive end non- transferabl. licens. to use Soflwere end reJeted documentation according to th. terms and conditions of this Agreeman~ solely for CD.nrs intarnal dall processing requirementa on the Unlsya SPU in /}~t{ QI5B<<IT.QQ2(11l'95) the United Stalel on which Software is initially installed. Clients use -of Software will_ be governed by IlIlY Iddilional conditions which Unisys may provide on at prior to delivllY of Softwlrl. CUent agrees that UnisyI may periodiclllly inspect the compullr site in order to ludit SoItwerIlUppHed by Uniays installed at Clients site et mutually agreed upon timea. In tha event that I separate license agreement accompllliel multivendor (non Unisya) commodily Soft- ware, then the separate lioenII egreement tenns wUl supersede the above license grant for that Software. 11.2 Client may modify any Unisys epplicetion Software Ind may combine such with other programs at materials to fonn an updated worX, provided that upon di1oontinuanoe at termination of the license, the Unisylepplicltion Software will be removed from the updated worX end returned to Unisya. 11.3 Client will not decompile at di8lssemble any Software provided under thle Agreement at modify Soflwlre which bears I copyright notice of any third party. Fat Software designeted "LO" (Ucense Only) by UnisyI, rather than ship an Idditionel copy, Unisys luthorizes CHent to make one copy, es required,for each license granted. Otherwise, Clilnt will malte and mainllin no more than one archival copy (for backup purposes) of each item of Software, and eech copy will oontain aU legends and notioes and will be subject to tha same oonditions and restrictions as the original. 11.4 If the SPU on which any iIem of Software is licensed beoomes temporarily W18V8iIebIe, use of such Softwara may bl temporarily lransferred to an alternative SPU until the original SPU beoomes available. 11.5 No license is granted to Ctient III use any Unisya proprietary operating system Software III _, lest or devalop any hardware producta llt device handler IllItwarI or operating system software . that will be marketed by C&ent or others fat compenSltion. This license restriction does not epply III MSJOOS, UNIX and CTOS operating sysllrns. Client may develop other softwara programs and may lest fuUy devaloped, oonunercially available third party hardware producta or aoftwarl programs where such testing is solely intended for Clienrs inllrnalevaluation of the fitness of such product at progrem for C6enfs own inllrnal dalll prooessing purposes. 11.6 If Client desInls Ill: (a) use Software in a sarvice bureau mode, (b) use SoltwerI at IIIOther location, (c) usa Software as restricted in Seclian 11.5, at (d) lranslIr oparetional use of tha Soflwlre III I third pIIIy; than C&ent shd request prior pennission in writing from Unisys. UniIyI will than advise Clilnt whether, end under what terms end conditions, UniIyI wiD license the Software as requested. AI RllItrictiana appBcabIe III CHent wiD also epply to any permitted service b_llt third party users. 11.7 This Agreement does not transfer to CBent tiUe to any intel- lectual proparty oontained in IlIlY Software, documentation or Pro- . prietary Information. 11.8 No party shall be antitled to use any Softwara unless the party has a valid wrillln IicensI to use such Softwara end aU eppUcable charges for tha use of such Software hIVe been paid, except that Client may authorize ~ use of Software by a third party, only for Clienfs benefit, to _, lest llt develop software pro- grams to the extent authorized by Section 11.5 or to perform c0n- sulting services and 1Iluclia, provided such third party agrees. in writing to be bound by the provisions of this Agreemant regarding Proprietary Information end Software. 12. Warranlles and Disclaimers 12.1 EXCEPT AS EXPRESSLY STATED IN 1llIS AGREEMENT, THERE ARE NO WARRANTIES, EXPRESS OR IIIPUED, BY OPERA TlON OF LAW OR OTHERWISE. UNISYS DISClAIIIS TIlE IIIPUED WARRANTIES OF MERCHAHTABUJTY AND FITNESS FOR A PARTICULAR PURPOSE AS TO BOTH UNISYS AND MULTlVENDOR PRODUCTS AND SERVICES. UNISYS WARRAN- TIES EXTEND SOLELY TO CUENT. 12.2 Equipment (a) Unisys warrants that equipment will be free from defecll in matariai and workmanship and wili substantiaUy conform III relevln - Unisys published specifications for a period of twelve months from its InstaUation Date. Equipment (i) may be newly manufeclured, (i) may be assembled from new or servictlllle ueed par1s that .. equivalant to new parts in performance, or (Iii) may have b_ previously instaUed. During this twelve month Wllmlrlty period, Unisys wiU repair or replace any defective item of equipment at pert or component of equipment prompUy reported or sent to Unisys by CDent which UnisyI detennines was defective due III flulty material or wor1unanship. CUent wUl pay transportation end inswence cosIs to ship equipment if an off-site repair looetion is designeted by Unisys; Unisys wili pay the return ooata if the equipment _ de- fective. Labor oasts of diagnosis are not included in this warranty. (b) Because equipment requireS on-going rneintenenoe, the pre- ceding warranty Is not a substitute for SURETY Support Services, which are available to Client for a charge. (c) Unisys maltes no representation at warranty as to multivendor equipment provided to CDan~ all of which is aoId llt licensed to CUent "AS IS". CUent agrees to Ioolt solely III the WlIIIlIIlties and remedies, if any, provided by the manufacturer. 12.3 Softwere: (a) Each item of Software with the designetion "W" Is, in its \lit- alllred form, WlIIIlIIlted for 90 days from ill InstalIlItion Data III oonform substantiaUy to the then-<:utrant published functional spec;. fications, provided such Software is ueed in a manner consistent with any eppUcable UnisyI minimum equipment end aoftware c0n- figuration specifications. Unisys will maltI raaonable ellorlll to correct such errors reftecting significant deviations from the !uno- tiona! specifications as are reported by CBent III UnisyB during sucII Wllmlrlty period. (b) Because not aU errotI in Software can or need be COIIIcIad, UnisyI does not warrant that aU Software defIlllI wiD be oorrected. Similarly, UnisyI does not WlIIIlIIlt that the functions oontained in the Software wiD meet Clients requirements or thet the SoItwanI wUl operate in combinations aaIectad for use by Client. (c) AU other Software delivered is not WlIIIlIIltad by UniIyI end is licensed "AS IS'. In the case of multivendor Software, CDent agrees to look solely to the warranties and remedias, if any, provided by the Unisys licensor or vendor. 12.4 SURETY Support Service.: (a) Unisys warranlll that equipment and Softwa,re will be supp~ in accordance with the specifIC SURETY ServtC8 selected. Umsys sole and exclusive obUgations under this werranty will be to conform to the Service Descriptions. Equipment par1s which Ire removed for replacement by Unisys beoome the property of Unisys. (b) To datermine eligibUily and prerequisites for SURETY Support Sarvices, Unisys may require inspection, at Client expense, of ~:0 4305 SW-002 (llW5l equipment which (I) hu not blll1 IlllinIlinBd cOntinuously by - UnisyB from the dele at pun:hue by CliBnt or (b) hll bllll rBlOClIed. (e) AD equip/llllll, inllroonnectad by signelll1d pOll/er CBbI8a, II1d non-epplic8tion SoItw8rll, Ioc8Ied III the 8l1l\I site IIld which Ire subjBct to SURETY Support Slrvicn IIrB required to be supportld It thl 8l1l\I SIIYic8 Level II the SPU. LOCII IIrIl nltworks, WOrKsIIltions Ind rlmota dell communicetion Producls Irl not required to bllt the 11l1li SIIYic8 LIVelli thl SPU. (d) SURETY Support Servica do not cover the PWlnd service required to repllir cIlImege ItlribulllblB to m 1I1111tions, out-of. _ spBCificlltion eupp6Bs, or delICta in dl8ign, mlllrill or worltmenship of multivlndor producbl end sIIYic8e, (ii) BCCidlnll, misUSl, negJi.. glllCl 0( fIilo of CIiInt to loIIow instructions lor proplr USl, CIII and clIIning of equiplllll1~ (iii) IXI8mII IIclorI (I.g., f8ilure or flllC> Iu8tion of BlIctriCBI pOlII" 0( IIir conditioning, firl, flood), 0( [IV) IIUo by CliBnt to comply with Unitya anvironmanlal spBCificlltiona. 12.5 InlormatloR SINlc..: (I) UniIya wiD enduvor to provide Information Sarvicea on I timlly blsia aubject to lIV8iIability of qU8lified plnlOnnelll1d thl difficulty end acope of the servicea to be provided. (b) UnisyB may uaign, reassign Ind substilull plrsonnellt Iny tillllll1d may provide the'SIDlI 0( similar services and materills to other clienll. 13. AIteratIona ad AlIachIlllllla 13.1 If UniIya is providing SURETY Support Sarvices, Clilnt wUl give Unilys prior written notice 01 Iny propoald IIlarations 0( Itlllchmenll III equipment. UniIya haa no OOUgltion to provide SURETY Support SIrvicn for multivandlK ItlacIvnenll, lltared . equipment 0( modified SoItw8rll. Should UnisyB Igree to maintain, support 0( corracllltared ProdUcls, Unitya mlY impose Idditionll chargee. 13.2 UniIya is not IIIpOII8ille fO( any malfunction. nonparfonnance or deglldltion at perforIIIII1ce of Producla, supp6es 0( maintanlllCl Ruppert mallrilla ClIUIed by 0( reauIling directly or indiractly from any IlIaration 0( allllchment unlesa UnisyB is maintaining the IlIaration 0( allllchmantthat CIUII8 the malfunction. 13.3 UniIya __ wil not apply if allllchment of multivandlK equipment 0( IIlen1tion of ProducIa directly 0( indirectly resuJlI in any malfunction, nonparformanoa 0( dagradation of perfonnance of UniIya ProducIa; in addition, CIiInt wil be aoI8Iy reaponaillB fO( rl8lllling infring~ peraoneI injury 0( damage to property II1d Producla. 13.4 FO( p~ of lhla Agraemen~ "IlIarationa" includes, but ia not Umited to, the Incorponalion of multivendor componenll, boerds end aubuaembliaa into ~~ II weU II modifications to SoItw8rll. "Atlachmenla" indudaa, but is not fimiled to, any multivandor equipman~ lOIIwara, componenll 0( dlvices which lire . connected to UniIya Producla. 14. Umftalfon of Uablllty 14.1 UnIeII further Iimiled elHwhere in thia Agreemen~ thelntirl liability of UniIya end Cllenta axcIuaivl remedy 10( damagll Irom any ce_ rIlaled III 0( arialng out 01 this Agraemen~ regardJass 01 the form at action, whether in conlract 0( in tort, wiU not IXCBId IllI graatar 01 (a) $100,000 or (b) the charges paid to Unisys during the 24-mon1ll period Irnmedialaly prior to CUlnts notice pursulnt to Section 18.5 10( the Producla or services which lire 1111 subjact ~ mallar 01 0( diractly relaled to the C8lISII of action 1SSII"Ied. This Section 14.1 dOlI not apply to cIairns covered by Section 15. 14.2 In no evant will Unilys be liable fO( (a) any incidanlal, indiract, special 0( conaequantiaJ damages, including, but not limited to, 10II of USI, revlnUes, profill 0( SlYinga, even if UniIya knew 0( ahouId haVI known 01 the possibitity of auch damages, (b) cIairns, dlmanda or Ictione agains! CUant by any PllllOl1, 8XCIpt .. provided in Saction 15, or (e) lOBI of or damaglto Crl8llt dall from any ceUSl. 14.3 Thl Intirl liability 01 Unisya and Clianta axcIusive remedy for any delactive multivendor Producla provided under lhiI Agraement is Umitad to their relum to UniIys within 90 daya afIar ~menl for refund of thl amount paid to UniIya for auch Producls (not including any amounll paid fO( rBlaled SIIVices). 14,4 Unisya may diracl Crlll\tto third ~ having producla 0( services which may be of intaralllto Client for USI in conjunction with thl Producla. Notwithstanding any UniIya recommand8tion, refarral 0( introduction, Ctient wiD indepandJenlty investlgalllll1d lest third-party producls end services end wiD havl aoIe reaponsibilily fO( determining auitability for _ of third-party producIa II1d llIIYices. UniIys haa no liability with respact to c1airna rIlating to 0( lrising from use 01 third-party producla and servica. 15. Patent, Copyright and Tradl S-.llndamnlflcatfon 15.1 Unisya, at ill own IXplnse, wiD defend end indemnify Ctiant Igainst cIairns that Producls lumiahed under lhiI Agraemant infringl a Uniled Statas patant 0( copyright 0( miaapprapriate lradl SICIIII protactad under Uniled Slataa law, proVided Client (a) gives UnisyB prompt wrillen notice of IUch cIairns purauantlD Section 17, (b) plnnill UniIys to defend 0( SlIlIe tha cIairns, end (e) providaa eU raasonable anialance to UniIya in dafllnding 0( SllIIing the cIairns. 15.2 As to any Producl which ia aubject to a claim of infringlment or misappropriation, Unilys may elect to (a) OOIllin the right 01 continued USI of auch Product for Client 0( (b) rap_ 0( modify auch Produclto avoid auch claim. If neither a1ternativl is available on cornmarcially reaaonable tanna, than, in the CISI of equip~ at the request of UniIya, Client wiD diacontinua use and ilium auch equiprnantend UniIya wiD glint a credit for the price paid to UniIya, Iesa a I'll8SOII8bIe offaet fO( use II1d ooa__; in the CISI of SoItw8rll, the applicable license wiI be terminated end no further charges wiD accrue. 15.3Unisya wiD not defend 0( indemnify CIlent if any claim of infringement 0( misappropriation (a) ia -ned by a pllrBn~ subsidiary 0( afIiIiata 01 CUIn~ (b) raaulll from CUanta dl8ign 0( altelltion 01 any Proclu~ or (e) resuJla from USI of any Product in combination with any multivendor producta. 15.4 This Section 15 sIIltas thl antire IiabDlty of UniIya II1d CUlnts sole and axcIuaivl remedies for pelant 0( copyright infringamant II1d lradl secret misappropriltion. 16. Termination and Cancellation 16.1 Unisya may SUSPlnd SURETY Support Services if any payment for such SllVice under lhiI Agreemlnt is past dUI mora than 30 daya. 16.2 Unisys may terminlta SURETY Support Servicn or changl support to Clilnt lor a Product upon aix months wriUan notioa or at IllI lXpiration of the Illln-currant Iarm lor SURETY Support Services, whichlVer occurs aarlier. :7,/.3 50114 QIl5 BW.Q02 (llW5) 16.3 Either party IIIlIY terminate any ticense fO( Software or eny - SURETY -Support Services upon expiration of Ihe applicable term by providing 30 deya prior writI8n notice. Feilure to give such notice will result in a ~ III exI.enU of Ihe license or sarvice in aooordence wilh the provisions of IhiI Agreemenl The tioenses fO( any SoftwarlI euIoI\.eticeIIy IIlrminal8 ~ Clientl di8continuance of UlI8 of the SPU on which the SoIIwwe wealicensed, et which time Client must either deIioy or rellm .. SoIlwere end documentation to Unisys. Upon terminetion or calloelatiOl, of SURETY SLqlOIt Services, aI diagnoslics will be reIImed III Unisys. 16.4 Without prejudice to other remedies, UniIyI may cancel IhiI Agr8llll18llt or any order pieced under it, for default end rep_ - Productl (excluding only equipment for which Ihe purchase price hsl been fully paid), ii, upon written notice, Ctient faill to (i) make any peyment identified al delinquent (including payment of chargllS for services) within ten deya or (bl cure any default relating to Sections 10 or 11 within 30 deyI. 16.5 Unmy. mey terminata SURETY Support Servicel on 30 deya prior written notice iI UniIyI determines lhet any elteretions, attachments, Client Softwere modific:ation 0( failure to inltaU a meintenance relau will intarfere with the provision of such aervicel. computer business, and etl88st one of Ihe erlli1nllorl selected wi be an attorney. 18.2 The arbitratOll will have no euthority to ewerd punitiv damages nor any other damages not IIl8lIIUIlld by Ihe prevaiJin. party's ac:tual damages, end mey not in any event make any rulino2 fmding or award that does not conform to the terma and conditiOi' of this Agreemenl 18.3 Either party, before or during any arbi1nltion, may apply to coUll having jurisdiction for a temporery rllStraining order c pretiminary injunction where such relief is .-.y to pralecl j: interesla. pending completion of the arbitration prac:aedjn.~ Arbitration wiD not be required fO( actions for recovery of Ip8Cil!- property, such as actions for raplavin. 18.4 Neither party nor Ihe arllitralorllllllll-diacIose Ihe existence c results of any arbitration hereunder without Ihe prior written conaen of both parties. 18.5 Prior to initiation of arbitration III any other form of legal (: equitable proceeding, the aggrieved party will give the other Part: writtan notice in accordance with Section 17 describing the claill and amount as to which it intends to initiata ection. 16.6 If the government ~ that appropriates Ctienfs funds for 19. Other Provisions deta plDC8Sling dOllS not aIklcata IUch fundi beyond the then- 19.1 All risk of loss or damage to Products will pass to Client upo, current fiscal period, Ctient may tanninate aU or any portion of this delivery to Ctienfs location. Agreement Ctiant wiU be liable fill any accurnuleted payments due prior to Ihe effective deta of the new fiscal y_. Ctient is not 19.2 Neither party wUl be liable fO( faDure to fuIfiD Ita Cbfigetiot-F permitted to obtain any IIimiIar de.. processing equipment loftware whsn due to ceU881 beyond ita reasonabte conlrol. 0( I8IYice from any third party following luch termination notice to 19.3 Any faDure III delay by either party in exercising any right (: Unisya. remedy will not constiluta a waiver. 16.7 Termination 0( cencallation of this Agreement wiD not affect. 19.4 THIS AGREEMENT WILl BE GOVERNED BY THE LOC,l.1 any righta 0( dutial BriIing under II with respect to Proprielllry LAW OF THE STATE OR COMMONWEALTH IN WHICH CUBu Information or II8alrity interest IS LOCATED. 17. NotIces 19.5 ThiI Agreement conatitulellhe entire agreement between th- partias with respect to the ProductI and I8IYicIIS provide- 17.1 AI notic:el required by IhiI Agreement to be given to Ctient wUl hareunder and .uperaedas aU prior prcpcllall end agreemenll, boil be IBIllIllIll eddreSI on the cover page of IhiI Agreemenl written end oral, end aU other written end cnI COIIIlIlWlicatio,-,c 17.2 AI notic:eI required by Sections 15 and 18.5 and aU requests between Ihe parties. The tarma end condifionI of IhiI Agreemen fill inforIIIlItion under Section 8 wiD be lent by certified or registered wiD supersede aU other terms end concIilIonI aubmitted by Client mail end, when given III UnisyI, eddrassed to: including any praprinted terms on any Client purchase orders. Oftice III General CCUISII 19.6 UniIyI may assign IhiI Agr.nent or III inlereIt in an; UniIyI Corporation equipment, III assign the right to receive peymenll, without Clienf- Township Line and Union Meeting Roeds COIlIenl Any such assignment however, wi not change li'c: Blue Bell PA 19422 obligations of Unisya to Ctienl Ctiant wiI not assign III transfer j:: righta or ob&getionl- under thia Agreement without prior wri\lei cc: Group VIce Pr8licla.il COIlIent 01 UniIyI. Any assignment or transIar prahIlIted by tI!i: 17.3 AI other noticeIlD lJniayI wiI be IBnlto Ihe Unisya oflica provision wiD be volcl. UniIyI may Ucontracl any 1lIIVio~ which has been servicing Client. described in IhiI Agreement to third partiallBlected by UniIys. 11. Arbitration 19.7 The terms and conditions of IhiI A~ may be modifi.. only by a writing signed by a Unisya Va Prasident Genera 18.1 Subject to SectIon8 18.2 through 18.5 hare.fler, any ManagerorContractaManager. controvarIY or claim BriIing out of III raleting to thia Agreement 0( 19.8 No arbitration proceeding or legal action, regerdl811 of it-: Ihe breach thereof wil be ..\lied by arlli1nltion before three form, related to or arising out of thia Agreement may be brought b) arlli1nllorl in aooordence with Ihe Ru1811 of Ihe American Arbitration either party more than two Y8Brl attar Ihe ceUS8 of action firs AlSOCiation (.AM.) then in effeel and judgment upon the award rendered by Ihe arllIlrelorl may be entered in any court having accrued. juriscflction. Any such arllIlretion wil be conducted in Ihe city 19.9 Each peregreph end provision of thia Agreement illBVarable n_est Clienra main U.S. office having an AM regional ollice. The end iI one 0( mOIl paragraphs or provisions ere declared invalid arbitralorl wiU be I8Ieclad from a panel of personl hsving the remaining provisions of thia Agreement will remain in IuD fOo'"(:-: axperience wilh end knowIedga of electronic computera and the end effect. ~{j/' -- oI3lI5&.o1.(KJ2(llM: 1,.'- 1",\1) y' j}efinitions and Service Descriptions A. Delinillolll PrincIpal PorIod of _ ("PPII' __ 8:00 IN. to 5:00 PM, ChnrlloCll Iino, ......., IInlugh FridoIy, uducIng lMiaya" 'j, _11aidlIyL 011 Hou.. __ 01-. __... PflM. ClIont Oporallonal Hou.. ("COIl' __ 01_ _ CIonl_'" PnxI-. FaIIocI Un. __ . urit 01 """,monl_ undor SURElY Suppat ~ wtich io _ oigibIo by lMiaya lor oxd1onge. lI10I io idonIiIod by CIonl . not in -*int anIw, ExdIongo Ud __ _ ropoAd. ..........., 1Md oqIipmont in ....... anIw lI1oIlJriIyo ......,. to CIonl...., . ..-01 lor . FIiIod IJrit. Tho FIiIod lhil..... -...... ~ 01 lJriIyo _ CIontI rocoipt 01... Ex"-'Il" lhil.... ,_. _ rocoipt 01... FIiIod Utit by UriIJa. CIonI....all1ol fto to ... F_1Jrit. ... \Jrisyo ....a lI10I .. to ... Ex"-'Il" IJrit. ..... be Iroo ... _ 01 01 ....... -. ... ----.g 1OCIriy....... Somo !lor _ __ lMiaya ... ...... ...., __ _ to roapond to CIontI ~ lor _ SURElY _ _ br (4) -. ~... .. quool iI _ no _ _ lour (4) -. prior to ... ... '" CIontI -. 01 -- - !lor - -- UnioyI'" ...... ...., __ _to roapond to CIontII'lqUOllIor _ SURElY _ _ dwing . PPM no _ _ ... _PflM. a Service Descriptions lWoso ......... ... ... SchodIM ... in IIio SdIOI. ... ImII T... lor SURElY Suppat Sonicoo... be 12.......... ... _..._... ......1oIsr "'...1_ Oslo 0I"'~ ~...... _ U..,.ICCoplI'" Sonicoo anIw. UnIoa ............... SchodlM,...1mII T... 01 SURETY Suppat Sonicoo lor PnxIudI - to . ..... .... _ undor SURETY Suppat _ ... be .................... J. . II _ 01... _ ...lI1oI.........1or p_ oi ~ to SURE1Y Suppat Sonico ct..goo, ... be _ to ..... ... _ " ......__.-ll_....lfP' ~. _oI..._...lI1oI......F-.g ...1niliII T..... SURE1Y Suppat Sonicoo ... canIinuo ... on ..... _ boIiI IIlMiaya ___ priooo unII ........- ... ....... ICCOI'Cing to ... _ 01 IIio ~ Tho...-.......Ior _ Sonico ~.. idonIiIod......_ -. 1. Suppolt c.. ....... ~ '. _ by ....... ... _ CIIIIIIIIIicoIi dIIing ... PPU ... --.v ... PraducII, .....,illl PnxIuct omn ...1lIIIIunclians ond odoiIing ... _ ........ ~ .".... ~ .. . u... CamuicoIian Fann (UCF). ond ......,;,..... ... nood lor _ romodioI ....... Suppat ConIIr Sonicoo dIIing OIl Hoon...... 01 "'P .1ili.00 __ to -....ond.,...IIIIIrgIIl<ioo.Scmo~ ~..nal~ in 1Iio..... 2. IIHr <:0 ... n ....... ~ lor ~ 01 ""'PlChi PnxIuct omn ... .......... ... - _ . . _ ....... chongos. UnioyI .. ...... , ...... - to...- dolouro... _."""'.Ior lMiaya ~ ... mulIivwIdar PnlducII , _ to l.ftaya . no ....... m.go ..... ... vondar. CIonl ... inIIII.. tmr _, "' J 3. EIHD1IoI Englo..... ClIoagoo .. ~ .-- by lMiaya lor .., ~ ... ~ l.ftaya ... . II .. -.101 to ... ...1...._... 01 "1",....11. ~ ... be ~ II ........, , . bd!b. ... dIOing ... 'fr" L', haIn alCCIMWfL fao'.....ndar ~mIIC. Urisp wi inIbII EIIriII -. Enginooring ~.... _ .... . . "'r 01 NqIbd __ . no ... to - UniIyI ond _ lobar Ngos ... oppIy lor SoMco ~ _ _ Co"""...__ Gold ond__ 4. EqulpnlOl1t .~ _ .. p.m l'IqIhd lor repon macIe by U..,. --- 5. ...... _ ..... CIon!, ... ....... ond rioIc, to Ihip ... to bring . Foiod Utit to ... lMiaya "--4, ."....... _ 7 b..-.- cloys 01 rocoipt. U..,. ropon'" FIiIod Utit... givII CIonl.. Ex"-'Il" IJrit. 8. SofIw... .~ __ _ _ ........... ond ~ ,.... lI10I ..... _ ."..pod "'1"V'idod by IJniIyI. Thoon ,.... ..... be - only lor - ... ... dooig.- __ syslom(l) undor ... ....... _1gI"._1l CIonI"'_ oI_...'.......ond____ 7. EIIclnInlc So. -. pnIVidoa CIonl....l-8DO ~ _ by. ~ - to piKO CIonl' '. _ R~ (CARl) ond to got ~......... ... UIiIyI PnxIudI ond........ 8. Advon.. Excbongo Selvlco..... CIonltonalily'" UIiIyI" ",... poinIlI _01 . FIiIod lhil_ ir>... SorviCo. ~ . r~ . . UIiop"'1hip on ElI1:hongo Utit to ... CIonl UIing . _ ..., ......, ..... CIoIl... inoIoI ... ElI1:hongo Utit.... ... .......- ond riot. slip ... FIiIod IN III tw.,sllilio 14 cloys"" CIontI rocoipl 01... Ex"-'Il" Unit. Aona ElI1:hongo sn.o io iIiIod to IIIodId ........ 9. EquIpnIOI1t 0n-C0lI RomodIoI ............. ... _ ropoir... ElI1:hongo lhil -. II U..,. option, 01 oquipmoot, . . "'*""' ....... ...- .... CIonI.... _ SuppatC..... ~...._...... 10. EIIclnIIIIc On.SIlo SoIvIc. ..... ... Suppart ~ to...... sy-. _ Inm CIonI ond porIorm ....... foiIn IIIIIiyIiI. CIonl ..... .. ... ""'..... -. ond ClllIIIUIIicoIi __ID_..........~.... , .7. "'... ~. outInod in... u..,."'-...,partplon. 11. Equ~ "-onllve .1In1onon... -.g ... i . . . . "'1llOo-inII chongto - --..- by UniIyI, ... be .......-d II CIontI ..... eccaning to 1hI mII11act\n"1 rKGftlll,_ .... . III . mutuIIy r bdJ .. dIIing'" oppicobIo -.01__ " 12. ~ 0p0r0II0n RovIow pnIllidoo thoI lMiaya .. _ 1IiIIl CIooI'I ...- .... 1RIIIIIIy. . . ......., . Ild!I>. IacIIian ond .... III _ _uI1r...... --. J1NitM.... NIpIClto...1'ludul:lL CIonIiI..... ,ill for acIIodIling ... --. This _ oppito to...... if ,....6d by tw.,s. ~""''''1I1IinfrlInon. 13. SoIIw... 0n-C0lI SuP\lOll ~ _ _ r llIiIyI......._.... -. "'*""' ....... IIIN1ClM.d .... CIoIII bon uIiztd 8Iwmt c.. Sonicoo. JlI-J..4. 0IIi<Illp products ..lllIlindudod in 1Iio-. 14. Equ~ 0n-C0lI Romtdlll .1In1ounco ~ RtIpoaM __ lI1oI1 CIonI illocIIM .... . 60 ........... ... _ 01. UIiop " ~ ...city.lMiaya........to_.citnl_...._......_. CIontsIilo IIiIio tIoo (2)-' dIOing PPU ond wiIllln --(3) -. ouIIido 01 PPIl ~ is _Inm... ...lI1oIlMiaya.............Ior........ CIoII.. lMiaya 1IIino. CIontI_ .lMiaya _ ila... . .... city... CIoIIr-..- ila .. .. lI10I CIontI .. iI no Iangtr wiIllln . 110 ... .... .... .. _ d. UIiIyI...--. city, llIiIyI-... rillhIlII ... ... ....... ... Sonica lIwtI. 15. Suppart ConIor Gu.....1Hd l1oi_ (......... only dIIing ... PI'UI ~ lI10I \Jrisyo ... roapond to CIontI dodInd ....._ no ___ (1) ......... rocoipl 01 CIont. ..... .... CIonl _.parte:...' '. . ... laIyI. . C. Descriptions of SeJVice Access Sludond Aocou to Suppart ConIIr Sonicoo pnIllidoo CIonl1lilll riIiIId _ d EItcRtio Stf Sonicoo. Vaico _ .. ..... .. 011....... _1I1l1iop lIlon-amnt-. ~ Aocou to Suppart c.. Sonicoo pnIllidoo CIonl1lilll riIiIId _ d EItcRtio Stf _ ond on unIiniIod ........ 01 _ ...- 1IiIIlll1o IlIiop Suppat CtnIIrI. D. Descriptions of Response to On-CaII ServIce Requests PoIfOllRlll.. SDvtl pnIVidoa Nul 011)' Sonico lor Equipmont 0l>C0I _ IoIoinlononct. PoIfOllRlll.. Gold ond Comprohonllvo Gold prINido SImo 0., sn.o lor Equipmonl 0n-C0I Rorntcisl....oIoI....... Comprlllonliv. Platlnu. pnIVidoa E~ 0n-C0I Rorntcisl ....... ~~ 7,./ S- 90114 a156<<l1.(lJ2(11111t Unisys SURETY Support Service Levels The Service L8Y8Ia 81 desailed beklw 818 am.daliV8 (e.g., Ihe seIVices defined under Performance are in adcition to those defined under Partne. Not IlII santlces 8IId Selv/ce L.8V8/$ In availabl. on all Products; please see tII. Setvlce DesCliptions tor additional details. The hours . ClMII'lIg8 for Par1ner III1d Performance Service Levels 818 ciJring Ihe PPM. The hours of CDYlllllg8 for Coo;xahensive Service L8Y8Ia 818 cUing if COH, unless designated PPM arty. IncfWilaI Unisys SURETY Sl4'POrt S8IVices contained in a higher S8Nice Level than contracted are prwided Client ~ as available, at Ihen-curent Unisys condlions and charges. ServicI Levels Comprehensive - Platinum ...4, Equipment On-Call Remedial Maintenance Guaranteed Response Support Center Guaranteed Response (PPM only) Comprehensive. Gold Systems Operations Review Software On-CaII Support Per10nnancI - Silver/Gold Equipment On-CaIl Remedial Maintenance 8ectronic On-Sile Services . Equipment Preventive Maintenance Partner. SlIver Advance Exchange Service Partner - Bronze Support Center Services User Communication Services Essential Engineering Changes Equipment Maintenance Parts MaiI-In Service Software Maintenance Releases 8ectronic Self SelVices ')~~ 10"'14 43056lO7.(X)2(l~- rgreement Number . UNISYS Consolidated Agreement State and Local Government Client Name and Mailing Address . Client acknowledges it has read and understands this Agreement Oncluding all attached schedules and amendments) and is not entering into this Agreement on the basis of any representations not expressly set forth in it Agreed and Accepted Unisys COIpOI'lltion Client (Sigtlatln) (Dalal (S~nallnl (Date) (PrinIedIIypod......) ~......) (T1Ilo) (T1Ilo) 1,-1/ <305~7-002(10195) . UNlSYS Agreement number Additional Tenns and Conditions 9507 (J()g,! ~ustomer uate City of Chula Vista Unisys and Customer hereby amend the above-referenced Agreement by adding the following terms and conditions. consisting of paragraphs I through 11-, on pages I through~. I. These added terms and conditions shall apply only to the Products and/or Services ordered on Schedules concurrent with the Effective Date of the Agreement and not to any other order for Products and/or Senices unless specifically agreed upon in the subsequent written order. 2. Senice RequirementS Unisys shall exercise all reasonable efforts to maintain the continuous normal operational capacity of Customer's equipment covered hereunder. All "Down Times" must not exceed the following durations: . A Down Time of twenty four (24) or more consecutive hours: . An occurrence of two (2) or more Down Times of twelve (12) or more consecutive hours during any consecutive twelve (12) month period: . An occurrence of two (2) or more Down Times during any thirty (30) day period totaling twenty-four (24) or more hours: . A total Down Time exceeding eighty eight (88) hours during any consecutive twelve (12) month period. regardless of the number or individnal Down Times. "Down Time" is defined as the computer system's inability to function at it's normal and designed operational levels. The "Down Time" begins to run when Customer. by verbal or written notice. notifies Unisys that its computer system is not functioning at its normal and designed operational levels and will end when Unisys and Customer agree that the computer system is functioning at its normal and designed operational levels. 3. Compensation The annual rate for maintenance of the individual components of hardware and software are set forth in the Unisys SURETY Service Support Agreement. It is agreed by both parties that Unisys may increase the annual cost of maintenance by an aggregate amount not to exceed five (5) percent on the first day of the second and third year anniversary of said agreement commencing. from the date of execution by the Customer. Customer may, at its sole discretiolL remove any individual component no longer in use from coverage afforded by this Agreement at any time. with 30 days prior written notice. during the term of this Agreement, with a prorated reduction in the amount of the monthly maintenance charge. 4. Termination for Cause If. through any fault ofUnisys. Unisys shall fail to fulfilL in a timely and proper manner Unisys' obligations under this Agreement. or ifUnisys violates any of the covenants. agreements or stipulations. Customer shall have the right to terminate this Agreement after giving ninety (90) days prior written notice to correct and if not corrected, Customer may give a thirty (30) day notice of termination. rJ"IY I } Additional Terms and Conditions (Continued) 5. Early Termination If Customer terminates the Support Services covered by the Unisys SURETY Service Support Agreement prior to the end of the three (3) year term for reasons other than discontinued use of equipment or for cause (see paragraph 5 above) or lack of appropriate funds. Customer agrees to pay an early termination charge equal to twenty percent (20%) of the remaining maintenance changes from the date of termination until the end of the original term of the services, at the rates then in effect. 6. Guaranteed Response Time Credits Should Unisys fail to respond within the guaranteed response times. the Customer is entitled to receive a credit that may be applied against their nex1 Unisys SURETY invoice. Maintenance response time credit is equal to 25% of the monthly charges for the particular product(s) which required service and any other products which are rendered unusable due to a particular product(s) failure. Claims for credits must be filed by the Customer, in writing on or before the last day of the month following the month in which the applicable service call was received by Unisys. A claim will be deemed filed as of the date it is received by the applicable'Unisys CS servicing district. No credits "ill be issued if at any time the Customer payment for Unisys SURETY Support Services are more than thirty (30) days past due. 7. Paragraph Headings The paragraph headings used herein are only for convenience and shall not be deemed to limit the subject of the paragraphs of this agreement. or be considered in their construction. 8. Construction of Agreement The agreements contained herein shall not be construed in favor of or against either Customer or Unisys. but shall be construed as if both Unisys and Customer prepared this Agreement. 9. Hold Harmless Unisys agrees to defend. indemnitY and hold harmless Customer. its elected officials and appointed officers and employees. from and against all claims and demands resulting from or connected to Unisys performance under this Agreement for damage to tangible property or injury or death to any person due to and to the extent of the negligence of Unisys, so long as Customer promptly notifies Unisys of such claim or demand. 10 . Year 2000 Compliance Supplier warrants that each hardware, software and firmware product delivered under this contract when used in accordance with the applicable product documentation provided by Supplier. shall be able to accurately process date data (including. but not limited to. calculating, comparing and sequencing) from. into and between the 20th and 21st centuries 1999 and 2000. including leap year calculations. provided that all third party product and Customer's own exchange date data with it. and provided further that Cnstomer has not made any unauthorized modification to such product. The duration of this warranty and the remedies available to Customer for breach of it shall be as set forth in and subject to the terms and limitations of Suppliers general product warranties contained in this agreement. provided. that, nornithstanding any provision to the contrary in such general warranties. the remedies available to Customer under this warranty shall consist solely of repair or replacement of any product provided hereunder whose failure to function as above provided is discovered and made known to Supplier, whether by Customer or otherwise. by March 3 L 2000. Nothing in this warranty shall be construed to limit any ?'i7 rights or remedies Customer may otherwise have under this agreement with respect to defects other than date data functionality. Customer understands that the foregoing does not address the incorporation of any customer modifications into the Year 2000 capable release of any such products and that the parties must contract separately for the incorporation of any custom modifications. Services. including Surety Support Services. apply only to properly configured products at the minimum hardware and software levels designated by Unisys for support of the applicable product specification. If the Unisys product specification for the release level being used by client explicitly includes time and date functionality for year 2000. Unisys will repair or correct material deviations that prevent the Unisys product from conforming substantially to the specification. Except as provided in the immediately preceding sentence. all services provided by Unisys exclude repair of damage or correction of errors related to: (I) time and date functionality. including time and date functionality for year 2000 and. (II) defects in the design. mannfacture. materials or workmanship related to non-Unisys products and services. Unless otherwise specifically agreeed to by Unisys hereunder. Services shall not include correction or repair of defects in the desigu. mannfacture. materials or workmanship of non-Unisys products and services. Notwithstanding the foregoing. if the Product being services hereunder is a non-Unisys profuc!. Unisys shall have no obligation to correct any failures in such Product related to time and date functionality unless the original mannfacturer of the Product provides. at no charge tio Unisys. the parts. upgrades or corrections necessary to correct such failures. Unisys may charge Client to correct time and date functionality problems at Unisys then current demand service rates. I I. Entire Agreement Section 19.5 of the Unisys SURETY Service Support Agreement shall be amended by adding the words "including these Additional Terms and Conditions" between the words "Agreement" and "constitutes" in the first line of the paragraph. 12. Inconsistencies To the extent that any inconsistencies may result between these Additional Terms and Conditions and the Unisys SURETY Service Support Agreement. such inconsistencies shall be governed by the provisions of these Additional Terms and Conditions. J--?/J ,; "--\ /' Addnional Terms and Conditions (Continued) 13. Standard of Care Unisys in performing any Services under this agreement shall perform at a minimum. in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions in similar locations. 14. Governing law This Agreement will be governed by the local law of the State of California. Agreed and Accepted Client Unisys Corporation City of Chula Vista By ~~A~~~~~ CONTRACTS MANAGER Nam~lfJRX~ ctlRl'llRATION tl/-t'18 Date By Date Name (Print) Title Title 7'~/ 4 COUNCIL AGENDA STATEMENT Item Meeting Date 09/01/98 & SUBMITTED BY: /9/l/7 RESOLUTION A Approving a five year contract with the Data General Corporation for hardware and system software maintenance of the system which will operate the financial software. Director of Management and Information service~ ITEM TITLE: REVIEWED BY: City Manager (4/5ths Vote: Yes_No...xJ In March 1998, Council approved an agreement with the Data General Corporation to provide hardware and system software to operate the new financial management software from the Bi- Tech Corporation. This hardware and system software, which is proprietary in nature, must be maintained in good working order to allow the City to operate all ofits financial applications in a timely manner. As part ofthe contract to purchase the equipment, Data General was required to provide maintenance of the equipment for a period of 3 - 5 years after installation. RECOMMENDATION: That Council adopt the resolution approving a five-year maintenance agreement with the Data General Corporation. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: In March 1998, Council approved an agreement with the Data General Corporation to provide hardware and system software to operate the new financial management software from the Bi- Tech Corporation. This hardware and system software, which is proprietary in nature, must be maintained in good working order to allow the City to operate all of its financial applications in a timely manner. As part of the contract to purchase the equipment, Data General was required to provide maintenance of the equipment for a period of3 - 5 years after installation at rates specified in that contract. These rates are much lower during the first year since much of the equipment would still be under warranty, with increases built in for the remaining years. The Data General equipment will be used to operate most of the applications currently running on the Unisys mainframe. These applications include all of the automated accounting, payroll, business license, fixed assets, utility billing and others. Once all ofthe applications are fully implemented, the Data General system will be used as the replacement for the City's current Unisys mainframe. The hardware is manufactured by the Data General Corporation and is proprietary in nature. Data General has technicians who have been trained specifically on our hardware and will maintain it at optimum efficiency. Stafffeels that this contract best meets the interest ofthe City and has provisions for such features as an annual rate cap as well as performance standards. 8"-/ Page 2Item Meeting Date 09/01198 FISCAL IMPACT: The cost for the maintenance contract forFY 1998-99 will be $20,053.85. This amount increases to $23,869 (14%) for year 2 since the equipment will no longer be under warranty. The cost for year 3 would be $23,060 (0.8% increase) year 4 would be $23,372 (1.3% increase) and year 5 would be the same as year 4 (no increase) The $20,053.85 for the first year has been included in the FY 1998- 99 budget for Management and Information Services. €'. :;)- RESOLUTION NO. /9/ f/7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIVE YEAR CONTRACT WITH THE DATA GENERAL CORPORATION FOR HARDWARE AND SYSTEM SOFTWARE MAINTENANCE OF THE SYSTEM WHICH WILL OPERATE THE FINANCIAL SOFTWARE WHEREAS, in March, 1998, Council approved an agreement with the Data General Corporation to provide hardware and system software to operate the new financial management software from the Bi-Tech Corporation; and WHEREAS, this hardware and system software, which is proprietary in nature, must be maintained in good working order to allow the City to operate all of its financial applications in a timely manner. NOW, THEREFORE, BE IT RESOLVED the city Council of the city of Chula vista does hereby approve a five year contract with Data General Corporation for hardware and system software maintenance of the system which will operate the financial software, a copy of which shall be kept on file in the office of the city Clerk as Document No.("t')1'F'~/;L9 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 Louie Vignapiano, Director of Management and Information Services H:\home\lorraine\rs\datagen.5yr 8'-3 , , ~ t. Data General Form No. 303 Data Gl'neraJ Cl'lf1)OTalion. Wellborn. MMNochusetts 01580 Rey. 7/98 On-Call Service Agreement DGC Agreement No. Sales Order No. Customer No. Customer P.O. No. INVOICE TO: (CUSTOMER) Company Name _City of Chula Vista Street 276 Fourth Ayenue City ChulaVista State~ ZIP91910_ Contact _Louis Vignapiano TeL (619 ) 476 - 5319 INSTALLATION LOCATION Company Name Street City Contact State ZIP TeL ( . Term Selected: 0 Single year. X Multi-year. 2- Years MOD - Fri Start Date: Mon - Sat ,199_ MOD - SUD Principal Period of Maintenance (PPM) (Y-hour period hetween 8 AM. and 6 P.M Contracted Period of Maintenance (CPM) (Total ofPPM and Customer-selected c>..1ension) 8:30am - 5:30pm N/A N/A C Relaxed Response Option. Ne,,1 Business Day (Customer-selected for reduced rate per Paragraph 4.Aji) Note~: (A) For some products. Ne:>..1 Business Day response is the only response mode offered. (See Paragraph 4.A.iii) (8) For !>ome product... Expr~<; Swap is the only service mode offered. (See Paragraph 4.Aiv) On-Line Remote Assistance (See Paragraph 4.B)' User Port Communications Interface for On-Line Remote Assistance (choose only one): ::: RS232 0 Current Loop 0 RS422 Load Device (tape or diskette) Model · IF CUSTOMER DECLINES ON-LINE REMOTE ASSISTANCE, CUSTOMER SHALL PAY A SURCHARGE OF TWENTY PERCENT (20%) OF THE BASIC MONTHLY CHARGE. 1. ELIGIBILITY A computer hardware device is eligible for service under this Agreement if it is a DGC product or a product accepted under DGCs Multi-Vendor Service Program ("MVS Product") and is part of a System located in the fifty United States or the District of Columbia. A "System" is a combination of computer hardware devices connected by power or signal connections which includes a Central Process- ing Unit, peripheral devices meeting DOC standards for loading, running and printing the output of diagnostic software, and minimum memory based on CPU type, in accordance with DOC policy at the time the System is accepted for service. 2. COVERED EQUIPMENT A. "Covered Equipment" means the computer hardware devices listed in a schedule incorporated into this Agreement. DOC quotations for service under this Agreement are provided for reference. After installation and pre-contract inspection, DOC will make available to Customer a schedule specifYing the actual installed devices which it will maintain under this Agreement. Completed schedules shall be incorporated into this Agreement. B. Pre-contract inspection is required for all devices except those covered by DOC warranty or maintained by DOC immediately before their inclusion under this Agreement. Coverage may be withheld or delayed for any device if pre-contract inspection reveals that the device is not the same device quoted or is in need of refurbishment. or if the lead time indicated in the quotation for a MVS Product has not expired. Customer agrees to pay DOC's charges for any required pre-contract inspection. ~()18'- (d--q KI~\11 8~1 3. HOURS OF SERVICE DOC will provide service during the "Principal Pcriod of Maintenance" (PPM). which is a Customer-selected consecutive nine-hour period between 8 A.M. and 6 P.M. Monday through Friday excluding locally-observed legal holidays. The "Contracted Period of Maintenance" (CPM) is the PPM together with any extended hours of coverage beyond the PPM purchased by Customer. SCOPE OF SERVICES DOC will provide all parts and labor necessary to maintain the Covered Equipment in good operating condition. Parts removed for replacement shall be DOC's property. Replacement parts supplied by DOC shall be Customer's property. Replacement parts shall be new or functionally equivalent to new. DOC shall have the right, at no additional charge, to modifY Covered Equipment to improvc operation and reliability, or to meet legal requirements. A. ON-SITE SERVICE. Except for products excluded under sub-paragraph iv of this paragraph, maintenance is provided at the installation site. Remedial maintenance is performed during the CPM. Scheduled maintenance is performed during the PPM at the intervals specified in DOC's policy. Scheduled maintenance may be performed concurrently with remedial maintenance. Customer shall give DOC unobstructed access to the Covered Equipment, adequate working space and facilities near the Covered Equipment in accordance with DOC site specifications, and use of any machines, attachments, features, user ports or other materials necessary for maintenance services. i. 4-Hour Response. DOC will normally arrive within the ne,,'! four CPM hours following Customer's request for remedial maintenance if the Installation Location is within fifty miles of a DOC Service Center. ii. Relaxed Response Option. Customer may select a Next-Business-Day response in lieu of 4-hour response, for devices which are eligible under DOC's policy and are within fifty miles from a DOC Service Center. While this option remains in effect, Customer will receive DOC's discounted Relaxed Response rate. Q, 5-- On-Call S~c~ Agreement Customer may changc to or from 4-Hour or Relaxed Response at any time during the Term upon 60 days written noticc to DOC. iii. Ne,,'! Day Response Program. For certain products, Next Day Response is the only on-site service offered. Those products are identified as such in DOC's service price list and quotations, and are priced accordingly. Discounts for selecting the Relaxed Response Option do not apply to Next Day Response products. iv. Express Swap Program. For certain products, Express Swap is the only maintenance service offered. Under this program, DOC responds to Customer's call for service by shipping a replacement unit or component for ne,,'!-day delivery. Customer's responsibility is to installs the replacement, and return the replaced unit to DOC in the packaging supplied by DOC within three business days after receiving the replacement. Express Swap products are identified as such in DOC's service price list and quotations, and are priced accordingly. Discounts for selecting the Relaxed Response Option do not apply to Express Swap products. B. REMOTE DIAONOSTlC SERVICE. 4. 1. V oice-only Remote Assistance is the only remote diagnostic service available for stand-alone PC-type systems, Express Swap products and other products for which on-line remote assistance is not offered. Voice-only remote assistance is also use for Systems for which Customer has waived on-line remote assistance. Customer agrees to load and run DOC-proprietary diagnostic programs under DOC direction and report the output to CSC by telephone, to facilitate problem identification before dispatch of service personnel or shipment of replacements. ii. On-Line Remote Assistance is mandatory for PC-LAN Systems; Customer shall provide the necessary on-site modem. For other System types, unless Customer has waived On-Line Remote Assistance and incurred the waiver surcharge, Customer agrees to provide a designated I MB (measured business) telephone line and an RJ4lS data wall jack and make them available full time for Form 303 Page 2 remote diagnosis and correction, including machine-initiated functions on Systems equipped with that feature. iii. Customer Assistance. Customer shall provide on-line storage for DGC diagnostic programs and PC-LAN remote access software, supply DGC with user passwords as needed for system access, and comply with DGC requests to load diagnostic program media. DGC normally employs On-Line Remote Assistance through its Customer Support Center (CSC) whenever possible but in its discretion DGC may proceed immediately with on-site service in any instance. 5. TERM OF AGREEMENT The Term of this Agreement shall be as noted above, but not less than one (I) year. CHARGES A. TOTAL MONTHLY CHARGE. The Basic Monthly Charge (BMC) is the sum of the monthly maintenance charges for all Covered Equipment. exclusive of applicable surcharges and discounts. Total Monthly Charge (TMC) is the BMC, less applicable discounts on the BMC, plus applicable surcharges on the BMC. No discount shall be allowed on any item of Covered Equipment which is subcontracted by DGC for service, as indicated by the suffix "SCS" or "SUB" in the model number of the device. 6. B. PRICE CHANGES. Service prices for the Covered Equipment on the Start Date shall not be increased during the first twelve months of the Term. Thereafter, the prices in DGC's then current Price List shall apply, subject to the conditions stated in this paragraph. DGC shall notify Customer at least sixty (60) days in advance of any price increase taking effect after the twelfth month of the Term. In no event shall the BMC at the new prices (adjusted for configuration changes) exceed the BMC immediately after the previous increase (or the Effective Date, if more recent) by a percentage greater than five percent (5 %). C. SURCHARGES. Circumstances in which surcharges apply include, but are not necessarily limited to. e"1ended hours of cover- age, waiver of on-line remote assistance, use of certain printers and, in Alaska, Hawaii and Form 303 ~'0 On-Call Service Agreement certain locations in the lower 48 states. surcharges based on the distance between the Installation Location and the nearest DGC Service Center. D. MULTI-YEAR DISCOUNT. DGC will discount the TMC throughout the Term at the multi-year discount rates in effect on the start date of the Term. Fulfillment of Customer's commitment for a multi-year Term is an essential consideration for any multi-year discounts granted. Therefore. if Customer terminates this Agreement before the end of the Term for any reason other than a material breach by DGC, Customer agrees to pay DGC's invoice for the amount, if any, by which the aggregate discounts allowed under this Agreement before its termination exceed the aggregate discounts which would have been allowed if the Term had run from the Start Date to the actual date of termination. Customer shall also pay, as liquidated damages and not as a penalty, an additional sum equal to six (6) times the largest TMC established prior to termination: provided, however. that DGC shall abate the liquidated damages by one-sixth (1/6) for each full month of advance notice of premature termination received by DGC. E. PAYMENT TERMS. DGC shall invoice monthly in advance unless the TMC is less than $1,000 per month, in which case DGC shall invoice quarterly in advance. Invoices are due thirty days after invoice date. Interest shall accrue on past due amounts at 1.5% per month or the highest lawful rate, whichever is less. 7. F. NON-COVERED SERVICE. Charges for services which are not covered by this Agreement shall be paid upon invoice at DGC's non-contract rates in effect when the service is performed. G. TAXES. Charges are exclusive of all sales, use and like taxes, which are the responsibility of Customer. When invoiced, such taxes will be stated as separate line items. PROPRIETARY ITEMS DGC may store diagnostic and maintenance programs, modems, communications switches and other hardware, software and related docu- Page 3 11. EXCLUSIONS A. DGC shall not be obligated under this Agreement to perform any repair or adjustment required as a result of: (i) repair, adjustment or modification made or attempted by Customer unless authorized by DGC representatives (excluding repair or adjustments performed by the original manufacturer of the device; (ii) accessories, alterations, attachments or other devices not maintained by DGC; (iii) unsuitable environment including failure of air-conditioning, electrical power, or humidity control; (iv) misuse or accident not caused by DGC, including unusual physical or electrical stress; (v) improper programming or improper installation by Customer or Customer's end user; (vi) relocation of devices not performed or supervised by DGC: (vii) use of operating supplies not within DGC's specifications; (viii) other causes beyond DGC's control. including accidents and disasters of natural or human origin. B. Unless otherwise approved in writing by DGC, devices which are neither DGC products nor MVS Products shall not be maintained under this Agreement even though on-call~cZreement mentation useful for thc performance of this Agreement at the Installation Location. These "Proprietary Items" and all updates and additions thereto shall remain the exclusive property of DGC or its suppliers. Customer agrees (i) not to copy Proprietary Items in whole or in part; (ii) not to disclose or use Proprietary Items or make them available to any person, except as authorized by DGC in the course of maintaining the Systems for which the materials were provided; (iii) upon DGC's request or upon the termination of this Agreement, to surrender all such materials to DGC and at DGC's request to destroy all such software and documentation and certify to DGC in writing that all copies thereof have been returned to DGC or destroyed. A copy- right notice on any Proprietary Item does not constitute or evidence a publication or public disclosure. 8. INSTALLATION PREPARATION At Customer's expense, Customer shall prepare the Installation Location according to DGC site specifications and provide all labor needed to put the components in place. Devices to be installed by DGC shall be unpacked and positioned by Customer under DGC supervision. Customer agrees to notify DGC if any Covered Equipment is used in an environment which poses a potential health hazard to DGC personnel. DGC may require such devices to be maintained by Customer under DGC supervision. MOVEMENT OF INSTALLATION If the Covered Equipment is moved to another location within the 50 United States or the District of Columbia, coverage will continue upon the following conditions: (i) Customer shall notify DGC in writing at least thirty (30) days before the System is dismantled; (ii) DGC reserves the right to supervise the dismantling, packing and unpacking of the equipment and to inspect and install it at the new location. This c~rvice will be charged at DGC's then current non-contract rates and terms; (iii) DGC will suspend the TMC as of the date the equipment is dismantled and resume the TM C (with applicable adjustments, if any) sixty (60) days later or as of the date DGC accepts the Covered Equipment at tlle new Installation Location. whichever occurs first. 10. CONFIGURATION CHANGES A. ADDITIONS. Every device which becomes part of a System must be covered under this Agreement unless excluded under the pre-contract inspection requirement in the section entitled "Covered Equipment" or the section entitled "Exclusions". Charges shall begin upon installation, or upon expiration of the DGC warranty, whichever is later. The charge shall be the rate in effect at the time of installation. B. DELETIONS. Customer may delete from coverage any device which ceases to be part of a System with at least siAiy (60) days written notice, provided the remainder of the System meets the minimum configuration requirement in the section entitled "Eligibility". Customer agrees to separate such devices from the Covered System not later than the date coverage ends. MVS Products must be covered for at least one (1) year. Page 4 9. Form 303 g--~8' On-Call Service Agreement interconnected or integral to a Covered System. DGC reserves the right to terminate coverage of a System immediately if, in DGC's reasonable judgment, any such device adversely affects DGC's ability to maintain the System and Customer declines to remove the device from the System. C. Coverage of a MVS Product under this Agreement does not guarantee compatibility of the device with any System. DGC may cancel coverage of a MVS Product if any diagnostic program, test equipment, special tool, documentation or other maintenance aid needed by DGC to maintain the device ceases to be available to DGC, or iff or any reason the device ceases to conform to its former specifications because of changes by its vendor to internal software or microcode. D. DGC shall not be required to maintain any device in which microcode is not at current revision level. E. If DGC determines that a device can no longer be adequately and economically maintained due to deterioration or wear, DGC may cancel coverage of the device upon sixty (60) days notice to Customer, unless the device is refurbished to its manufacturer's specifications at Customer's expense before the cancellation date stated in the notice. DGC reserves the right to inspect devices refurbished by other than DGC prior to re-acceptance under this Agreement. F. Services under this Agreement do not include electrical work external to the Covered Equipment, network fault diagnosis, operating supplies or accessories including media, refinishing the Covered Equipment, or furnishing materials for these purposes. 12. LIMITATION OF LIABILITY AND WARRANTY A. No express warranties apply to services and materials provided under this Agreement. DGC disclaims any implied warranties of merchantability and fitness for particular pur- pose with respect to services and materials provided under this Agreement. B. In no event shall DGC be liable for any special, incidental, indirect or consequen"tial damages, including lost profit and damages Form 303 resulting from loss of use or lost data, however caused, and regardless of the form of action, even if DGC has been advised. knew or should have known of the possibility of such damages. C. DGC's liability shall not exceed the amount paid to DGC for services under this Agreement for the twelve months preceding the cause of action. D. Any action against DGC must be commenced within three years after the cause of action accrues. 13. INCORPORATION OF TERMS If Customer is a Value Added Reseller (V AR) or Distributor who is reselling a Covered System to its end user customer. the V AR's or Distributor's contracts with its end users shall incorporate for DGC's benefit all the information, obligations and limitations set forth in the sections entitled "Scope of Services" and "Limitation of Liability and Warranty. " 14. TERMINATION Either party has the right to terminate this Agreement if any of the following events occurs and is not remedied to the other party' s reasonable satisfaction within twenty (20) days after the injured party gives notice of termination to the other party: (i) Either party fails to perform any material obligation to the other party, including the timely payment of any sums due to DGC and compliance with the section entitled "Incorporation of Terms"; (ii) Either party admits in writing its inability to pay its debts as they become due or executes an assignment for the benefit of creditors or similar document; (iii) a receiver, trustee in bankruptcy or similar officer is appointed regarding either party's property; (iv) Either party transfers a majority interest in its equity or assets, or attempts to assign this Agreement, without the other party' s prior written consent. Termination shall not be either party' s exclusive remedy and shall not adversely affect any claim, right, action, or remedy which either party may have for damages or otherwise against the other party regarding any failure of either party to perform its obligations to the other party. Page 5 ]5. GENERAL This Agrecment shall be governed by the laws of the state in which the Installation Location is situated. Customer may not assign this Agreement or the services without DGC's prior written consent. Any notice under this Agreement shall be deemed properly given if mailed postage prepaid to Customer at the invoice address shown above or to Data General Corp.. Attn.: Customer Order Fulfillment G-231. 2400 Computcr Drivc. Westboro MA 01580. This Agrecment is thc completc and exclusive statement ofthe contract between the parties and supersedes all prior oral or written communications. agrce- ments and understandings between the parties and shall prevail notwithstanding any different, conflicting or additional terms and conditions which may appear on any document submitted by Customer. DATA GENERAL CORPORATION CITY OF CHULA VISTA by Q-~ printe~m::;;:' ~~::SZ::A "~/::;;;s h_~ue by: Printed Name: Title: Date Signed: Form 303 5~? On-Call Service Agreement Page 6 ~..-l - '" ~ .. C:l i .. ~ ~ 8 ~ N ~ ~ j .:. ... ... - 'D N , ... ~_~~_~~~~N~~~N_I~ ~~~~"''"~~t~I~~'"~~:~ 8~~~~~0 ~ ~..~-~.o i'dkl~!B- i,~iii;;l~ifi!l!I ~ &.o.lS ~._ n..n '" ~~_~_~~<~~~r~r~:~ S~~=8=8~g!~~=tl:~ ;MD~r;~r;~~---..~~t:~ ->- ~n~.~~ S''" i=rn",~mn..a .;,.~~c:~. ::; ~~am8 1-.. neln~:= ~ m>~~.~5wc~.znlo an _ng~~~n_~ -i!!'. 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Data General Dalll General Corporation, Wesfboro, Mil55arhuselb 01511U Form 60] 013-] 55-04 Rev. 7/98 Software Support Services Agreement DGC Agreement No. Sales Order No. INVOICE TO: (BUYER) Company Name _City of Chula Vista Street 276 Fourth Avenue City Chula Vista State CA ZIP _919]0_ Contact _Louis Vignapiano Tel. ( 619 ) 476-53]9 Designated Caller: Telephone: . Term Selected: 0 Single year. x Multi-year. i years Customer No. Customer P.O. No. INSTALLATION LOCATION Company Name Street City Contact Tel. ( First Alternate: Second Alternate: Start Date: State ZIP .199 DATA GENERAL CORPORATION (DGC) SUPPORTS CERTAIN DGC LICENSED PROGRAMS AND CERTAIN THIRD PARTY PROGRAMS LICENSED OR SUB-LICENSED BY DGC, BOTH REFERRED TO COLLECTIVELY AS "SUPPORTED PROGRAMS". THOSE SOFTWARE SUPPORT SERVICES ("SUPPORT") FOR WIDCH BUYER SUBSCRIBES WILL BE PROVIDED BY DGC IN ACCORDANCE WITH THIS AGREEMENT THROUGH THE DGC CUSTOMER SUPPORT CENTER ("CSC"). A SEPARATE SCHEDULE IS REQUIRED FOR EACH SYSTEM RUNNING DGC-SUPPORTED PROGRAMS. A. SCOPE OF SERVICE Support offered by DGC for a Supported Program may include or consist of Software Subscription Service described in Section B. or Support Plus™ described in Section C. or Hotline Support Services described in Section E. B. SOFTWARE SUBSCRIPTION SERVICE /. Under Software Subscription Service (SSS). updates and revisions for Supported Programs arc provided during the subscription term. Each SSS subscription for a Supported Program conveys the right to use the updated software on the one designated CPU on which Buyer is licensed to use the Supported Program under a DGC Program License Agreement (PLA. Form 5(0) or a DGC-approved sublicense. Information regarding software enhancements. programming notes and documentation corrections to DGC Licensed Programs is also provided from time to time by on-line newsletter. 2. Right To Copy. When purchasing SSS for a Supported Program licensed on multiple systems. Buyer shall purchase SSS for the Supported Program on the system with the highest class CPU. and shall purchase a Right to Copy (RTC) for each other system located at an Installation Location within the United States on which Buyer is licensed to use. and nses. the Supported Program. RTC conveys to Buyer the right to use the SSS update on the other systems. without requiring DGC to supply duplicate media and documentation. 3. Software Troub]e Reporting. DGC will accept Software Trouble Reports (STRs) for the current revision of DGC Supported Programs. STRs for the last previous revision will also be accepted as late as one hundred eighty (180) days after the shipment date of the current revision. For all STRs accepted. DGC will: (i) acknowledge each STR by mail and assign an STR control number to cacho (ii) provide status information on each STR in the newsletter provided under Section B.I: and (iii) provide either an interim fix under TSS (subsection C.2). a permanent fix in the DGC Licensed Program or documentation through SSS. or provide one of the following responses as appropriate: "problem not reproducible." "user error" or lito be considered in future revisions. " C. SUPPORT PLUS Support Plus is comprised of the services enumerated in sub-sections C.I through C. 7. and any Support Plus options to which Buyer elects to subscribe. /. Software Subscription Service. See Section B above. g-r3 2. Telephonc Software Support (TSS). Toll-free tclcphone assistance is made available to Buyer's Dcsignated Caller or eithcr of two (2) designated altcrnates Monday through Friday. excluding holidays observed at the CSc. during the nine consccutive hours from 8 a.m. to 5 p.m. [6 a.m. to 3 p.m. in Alaska and Hawaii] Buyer's local time. TSS includes: (i) software problcm diagnosis consisting of problem isolation and dcfinition: (ii) preparation of software problem report: and (iii) assistance with the proper operation of the Supported Programs. In critical situations, DGC will attempt to provide an emergency bypass or temporary work-around. 3. Remote Software Support (RSS). With the cooperation of Buyer's Designated Caller. DGC utilizes communications devices in conjunction with TSS for remote problem diagnosis and assistance with the operation of Supported Programs. 4. DASH Plus. Direct Access to Support Help (Dash) Plus is an electronic Bulletin Board accessible to subscribers by telephone 24 hours per day, 7 days per week except for normal mainienance shut-downs. Dash Plus may be used to access the Bulletin Board, customer- to-customer E-mail, the Electronic Search Program. Problem Submission and Patch Order features. Buyer must provide any terminal and communications devices needed for access. DGC will provide instructions on how to use Dash Plus, and Buyer shall be governed by DGC's published rules governing such use. Information provided to Buyer under Dash Plus is subjcct to DGC's Program License Agreement. 5. On-Site Assistance (OSA). DGC will provide on-site assistance when. in its sole judgment. DGC deems such assistance necessary or appropriate to accomplish problem diagnosis and assistance with the operation of Supported Programs. OSA is provided between 9 a.m. and 5 p.m. Buyer's local time, Monday through Friday, excluding locally-observed legal holidays. 6. Additional Systems Support. When purchasing Support Plus for a Supported Program licensed on multiple systems, Buyer shall purchase Support Plus for the Supported Program on the system with the highest class CPU, and shall purchase Additional System coverage for all other systems located at Installation Locations within the United States on which Buyer is licensed to use, and uses, the Supported Program. Additional Systems coverage extends Support Plus to such other systems, but does not increase the number of Designated Callers above the number fixed under subsections C.2 and D.1. D. SUPPORT PLUS OPTIONS I. Additional Caller Option. Additional designated CSC callers may be added to Support Plus for a fixed monthly fee per caller. 2. Proactive Software Support (PASS) is a Support Plus option under which DGC assigns an Account Specialist to be Buyer's primary contact for software support matters. The Account Specialist will visit Buyer's Installation Location to fantiliarize himself with Buyer's operatio," initiate contacts with Buyer to advise concerning known problems, patches, forthcoming revisions. and similar matters relevant to Buyer's operation, and send quarterly reports summarizing service actions taken during the preceding quarter. 3. As additional support options become available for Supported Products licensed to Buycr. Buyer may subscribe to them for a period equal to the remainder of the Term of this Agreement. at the priccs in effect when the subscription is entered. E. HOTLINE SUPPORT SERVICE 1. Hotline Support Service (HSS) includes the services described in sub-sections C.2 through C.6 of this Agreement. Additional Caller Option, as described in sub-section D.I is available as an optional Hotline Support Service. 2. Additional Systems. When purchasing HSS for a Supported Program licensed on multiple systems. Buyer shall purchase HSS for the Supported Program on the system with the highest class CPU. and shall purchase Additional System coverage for all other systems located at Installation Locations within the United States on which Buyer is licensed to use the Supported Program. Additional Systems coverage ex1ends HSS to such other systems. but does not increase the number of Designated Callers above the numbcr fixed under sub-sections C. 2 and D.1. F. EXCLUSIONS Support provided under this Agreement shall not include (i) operating supplies or accessories: (ii) service due to failure of software not supplied by DGC and/or not included on a Schedule: (iii) Service provided when the reported problem is caused by hardware. firmware or media not supplied by DGC. by operator error. by Buyer's negligence or improper use of tlle system, or by Buyer's failure to perform its responsibilities under Section I. G. ELIGffiILITY 1. Support provided under this Agreement is lintited to Supported Programs running at Installation Locations within the United States. 2. Each Supported Program for which Support is requested must be licensed under DGC's PLA or a valid DGC sub-license agreement (Form 502 or equivalent ~r(t.j Form 601 Software Support Services Agreement Pagc 2. acceptable to DGC) on eacb CPU on which Buyer runs thc Supported Program. 1 In its discretion. DGC may make a pre- conlr~ct on-site inspection and audit of up to four (4) hours. at no charge. 4. Any system repairs. adjustments and installation of Engineering Change Orders (ECOs). or installation of revisions and updates to DGC Supported Programs deemed necessary by DGC must have been made before Support is provided. Such servIces may be ordered under the applicable DGC hardware maintenance contract. H. TERM OF AGREEMENT I. The Term of this Agreement shall be as noted above. but not less than one (ll.ycar. 2. DGC may discontinue Support on any Supported Program upon a minimum of sixty (60) days wrillen notice. In that evenL Buyer may tenmnate this Agreement in its entirety upon wrillen notice given to DGC within thirty (30) days after receipt ofDGC's notice of discontinuance. I. RESPONSIBILITIES OF BUYER I. Buyer agrees that the use of any and all updates. changes. improvements. revisions. patches. data or documentation furnished by DGC in connection ",th Supported Programs shall be governed by the terms and conditions ofthe relevant Program License Agreement or sub-license agreemenL and this Agreement 2. Buyer shall provide full and free access to the system and the use of all necessary machines. ;ommunications facilities. features and other equipment as may be required by a DGC Customer Service representative providing on-site assistance, at no charge to DGC Buyer also agrees to provide secure storage space. scratch media (including spare tapes and disk packs). paper and other miscellaneous supplies. a designated work area. and access to a local telephone. at no charge to DGC Buyer's representative shall be available on site while the DGC representative is present 3. While this Agreement is in effect, Buyer agrees to maintain the systems on which the Supported Programs are running at the prescribed DGC revision levels. and also agrees to maintain a current back-up copy of the Supported Programs as well as any other programs and data used on the system. All software updates and/or revisions furnished to Buyer hereunder must be installed on the system within one hundred eighty (180) days from the date they are shipped by DGC to Buyer. 4. Buyer shall provide DGC with the name and telephone number of Buyer's Designated Caller along with the names of two (2) designated alternates. and any additional callers designated under sub-section D.I. Buyer shall update this information when appropriate. J. CHARGES I. Prices. Prices for Support subscribed for as of the Start Date shall not be increased during the first twelve (12) months of the Term. Thereafter. the prices in DGC's then current Price List shall apply. subject to the conditions stated in this paragraph. DGC shall notifY Buver at least si:\1y (60) days in advance of any price in;rease taking effect after the twelfth month of the Term. In no event shall the new price (adjusted for configuration changes) exceed the price of the corresponding services immediately after the previous price increase (or the Effective Date. if more recent) by a percentage greater than five percent (5%). 2. Payment Terms. SSS and RTC when purchased separately from Support Plus are invoiced annually in advance. Support Plus and Hotline Support Services are invoiced monthly in advance or. if the monthly charge is less than $1000. quarterly in advance. Invoices are due thirty (30) days after invoice date. Interest shall accrue on past due amounts at 1.5% per month or the highest lawful rate. whichever is less. 3. Multi-vear Discount DGC will discount its charges under this Agreement at the Multi-year discount rates in effect on the start date of the Term. Fulfillment of Buyer's commillnent for a multi-year Tenn is an essential consideration for any multi-year discounts granted. Therefore. if Buyer terminates this Agreement before the end of the Term for any reason other than a material breach by DGC or a termination permilled under sub-sections H.2. Buyer agrees to pay DGC's invoice for the amount. if any, by which the aggregate discounts allowed under this Agreement before its termination exceed the aggregate discounts which would have been allowed if the Term had run from the Start Date to the actual date of termination. Buyer shall also pay. as liquidated damages and not as a penalty, an additional sum equal to six (6) times the largest monthly invoice established prior to termination; provided. however. that DGC shall abate the liquidated damages by one-si:\1h (116) for each full month of advance notice of premature termination received by DGC 4. Taxes. Buyer shall be responsible for any federal. state or municipal taxes levied on or in respect of services and materials furnished under this Agreement. including sales. use and excise taxes and duties. except taxes based on DGC's income. 5. Exclusions. Labor and material charges for services resulting from: (i) Buyer's order for services not covered under this Agreement or any related Service agreement. such as charges associated with the movement of equipment (Section K): or (ii) Buyer's failure to comply with Section L "Responsibilities of ~- IS- Software Support Services Agreement Form 601 Page 3. Buver." shall be invoiced to Buyer at DGC's non.contract rat~s and terms in effect when such services are performed. K. MOVEMENT OF EQUIPMENT I. Buyer shall give DGC at least thirty (30) days prior written notice of its intent to move any system from one Installation Location to another. The dismantling of a system and its reinstallation at a new Installation Location shall be Buyer's responsibility. subject to any maintenance agreement with DGC then in effect. The system shall be subject to inspection and to repair ~harges by DGC as specified in Paragraphs G.3 and GA. 2. DGC shall have no further obligation under this Agreement with respect to any system moved to a location outside the United States. L LICENSED INTERNAL CODE Certain items of hardware sold or leased by DGC use Licensed Internal Code which is identified as such by DGC when supplied with or for the hardware item. If any updates or replacements of Licensed Internal Code are provided to Buyer. their use shall be governed by the Licensed Internal Code provision of DGC's Standard Terms and conditions of Sale (Rev. 7/92 or later) or other agreement under which the Buyer acquired the hardware. M. DISCLAIMER OF WARRANTY DGC DISCLAIMS ALL W ARRANTlES. EXPRESS OR IMPLIED. WIlli REGARD TO TIlE SERVICE AND MATERIALS PROVIDED HEREUNDER. INCLUDING ALL WARRANTIES OF MERCHANT ABILITY AND FITNESS FOR PARTICULAR PURPOSE ARISING OUT OF TIlE PERFORMANCE OF TIllS AGREEMENT. N. LIMITATION OF LIABILITY I. IN NO EVENT SHALL DATA GENERAL CORPORATION OR ITS SUPPLIERS OR SUBCON- TRACTORS BE LIABLE FOR ANY SPECIAL. INCIDENTAL. INDIRECT OR CONSEQUENTIAL DAMAGES WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFIT AND DAMAGES RESULTING FROM LOSS OF USE OR LOST DATA) HOWEVER CAUSED. INCLUDING NEGLIGENCE. AND REGARDLESS OF THE FORM OF ACTION. WHETIlER IN CONTRACT OR TORT. EVEN IF DGC HAS BEEN ADVISED. KNEW OR SHOULD HAVE KNOWN OF TIlE POSSIBILITY TIlEREOF. DGC WILL NOT BE LIABLE FOR ANY FAILURE OR DELAY IN PERFORMANCE DUE IN WHOLE OR IN PART TO ANY CAUSE BEYOND DGC'S REASONABLE CONTROL. 2. SHOULD DGC INSTALL ANY UPDATES AND/OR REVISIONS TO TIlE SUPPORTED PROGRAMS. IT SHALL DO SO ONLY ON TIlE CONDITION THAT DATA GENERAL CORPORATION AND ITS SUPPLIERS AND SUBCONTRACTORS SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY EFFECT SUCH UPDATE AND/OR REVISION MAY HAVE ON BUYER'S USE OF TIlE SYSTEM(S) AND/OR THE SUPPORTED PROGRAMS. 3. IN NO EVENT SHALL DGC'S TOTAL LIABILITY FOR DAMAGES UNDER TIllS AGREEMENT EXCEED TIlE TOTAL NET CHARGES PAID BY BUYER TO DGC FOR SERVICES DURING TIlE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING A CLAIM UNDER THIS AGREEMENT. O. BUYER REPRESENTATION When the Installation Location is Buyer's customer's location. Buyer represents and agrees that its contract with its customer (End User) shall incorporate. as a minimum. all the information. obligations and limitations set forth in Section I above as well as DGC's warranty disclaimer and liability limitations as set forth in Sections M and N. P. TERMINATION Notwithstanding Section H. Term of Agreement. either party shall have the right to terminate this Agreement upon the occurrence of any of the following events: (i) Either party fails to perform or observe any material obligations to the other party under this Agreement including. but not limited to. the timely payment of any sums due DGC. and compliance with Buyer's representations and promises contained in Section I. "Responsibilities of Buyer" and Section O. "Buyer Representation": (ii) Either party admits in writing its inability to pay its debts generally as they become due, or executes an assignment or similar document for the benefit of creditors: (iii) the appointment of a receiver. trustee in bankruptcy or similar officer regarding either party's property: (iv) there is a transfer of a majority interest of the equity or assets of either party or an assigument of this Agreement without the prior written consent of the other party and such event is not remedied to the reasonable satisfaction of the injured party within twenty (20) days aficr either party has sent written notice to the other party. Termination shall not be either party's exclusive remedy and no such termination shall adversely affect any claim, right or action which either party may have for damages or otherwise against the other party regarding any failure of either party to perform or observe its obligations to the other party. t6~/b Form 601 Sofiware Support Services Agreement Page 4. Q. GENERAL A valid contract binding upon DGC will come into being only when DGC accepts this Agreement. This Agreement will be governed by the laws of the Commonwealth of Massachusetts excluding its conflict of law rules. Neither this Agreement nor the Support to be provided under it are assignable and any attempted assignment shall be void. Any notice required or allowed under this Agreement shall be deemed properly given if mailed postage prepaid to Buyer at the invoice address shown above or to DGC at 4400 Computer Drive. BUYER: CITY OF CHULA VISTA by: signature date printed name title Fonn 601 Attention: Contracts Administration. Westboro MA 01580. Any action by Buyer under this Agreement must be commenced within three (3) years after the cause of action accrues. This Agreement is the complete and exclusive statement of the contract between the parties pertaining to the subject matter. supersedes all prior oral or written communications. agreements and understandings between the parties and shall prevail not- withstanding any different. conflicting or additional terms and conditions contained in any order or other document submitted by Buyer. DA TA GENERAL CORPORA nON by ~~ 7/~9% # signature date 71,..., gDR&~ hA7iU2 cPhl2n."'Tlz.s MI1NMfle printed name title !J~/7 Software Support Services Agreement Page 5. ~".--' ^ .. m c ~ C> o j;; l2 ~ ~ CO C> ::! ... ~ ... .. .::1 '" ! .0 .. :!l oo-t=.J ceo o"c ~ r .. ~ :; " ~ .. !l' D .... --------....- .... .....~.,g8g;gIJl::~ gi!.c:t:i!".........oo"".o iiiJlUi~i!i!~ ~.,.l~O'Doi..o.;. - --------.......... gggggOI:lc:JIOZ ~'llE~~~~~:il~ lii=llliliiliiliSla i-im!!~C'HI= l"):zl;,.~="~. - ,..gp--VOI" =!i:I-;:CZ-:P1ft1 r'UDD~ !lill'ls!l ....~'".-im r""mill mOO "'I z," ~CfJ"~ -t '!i", !;inr-o. v ~ ="'=m~E;!::; c::S~!l 1I.r-p_ tali .......... :....0 1ft .-I"'CD~a:ltZ "l!!.!l!5i~ . "Id + c::z ~b._""""_CII~"!IIIUI OONQ~NgV1""O 8:888888;8 I I 1'"'"' .. . .." ijH~ijHii~Ui;;,";:;u\ :.. ":tt:MJlllICilC:ac:.c:.cMI ir":In . .... ~ ;;; 2 t :::21.111_WOO...O'!:O'.... ct...o,pNG0t5NN ceNe:aNQ~:Ou. oOOCtDGQUlgg - - DO s: ... 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'..- ,....- ~...... , .. :8:5 :5. l.gln U).....tI : o~ ;:- ~ 8:! :;. !C~N ! : .;' '" .. '" : e , , .. co 8 i .....n.nVJotn !!.g; ;:;:;-:; 8, , ;;-<:111 n ...."..:;s n .. .. i. .. ~ r .. ~ ii '8 <> - """ .. D ..." 'j', ~ ii o o C> , .. <> g N. ;; .. D " .. ... , . .. . ~ ",I ... . '".. 5 I- II no ~Q 0- _0 nO' -^ Eii ~i .. .. ;2 .. .. - - EO .. .. .. '"~ m" ~~ _z -.. ..... m,. ..~ l:<., loll! - ~~ ~i ;; .. r e ;; .. ~.... "Iii ..ilii ,.~ .. ~~a _n_ -&F~ "f~ I! Y:r19 ~.J _OOC J CICCI nf'l__. COUNCIL AGENDA STATEMENT SUBMITTED BY: 1911~ RESOLUTION'" Waiving the bidding process and approving agreement with Unisys Corporation for the renewal of software license for the Unisys mainframe computer. Director of Management and Information Services p Item Meeting Date 09/01/98 9 ITEM TITLE: REVIEWED BY: City Manager (4/5ths Vote: Yes_No..xJ In September of 1990, the City of Chula Vista installed a new mainframe computer, the Unisys V- 430. Included as part of the purchase agreement was a five year lease of the system software. The system software includes the operating system, COBOL compiler, and the data base management system. All ofthese software products are proprietary products from Unisys and are licensed directly from Unisys. In August 1995, Council approved an extension of the license agreement for an additional three years. The license agreement will expire in September and must be renewed. The charge for extending the license for eighteen additional months is $62,674 and is due upon renewal. RECOMMENDATION: That Council adopt the resolution approving the renewal of the software license agreement with Unisys for eighteen months. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: The City of Chula Vista operates a Unisys mainframe computer to process many of the City's large computer applications such as Payroll, Automated Accounting, Business License, Land Use Inventory, and others. The operating system used to run the system is a proprietary product developed by Unisys and licensed through Unisys for use on their mainframe computers. The City's mainframe computer will not operate without the system software. Since this software is proprietary to the Unisys Corporation and licensing is only offered through Unisys, the bidding process must be waived. Unisys does not sell the system software but leases it to organizations who have purchased their mainframe computers. As part of the original agreement with Unisys to purchase the current mainframe in September 1990, a five year lease of the system software was included. That lease expired and in August 1995, Council approved an extension of the license agreement for an additional three years. The license agreement will again expire in September and must be renewed. Discontinuing the use ofthe software would effectively make the mainframe not usable, therefore the City must renew the license agreement. The cost for the eighteen month renewal is $62,674. This amount would be payable by the City upon renewal of the license agreement. If the City is still utilizing the system at the end of eighteen months, the City would have the option to renew the contract again or pay the license fee each month until the system is no longer needed. Although Council approved a contract with the Bi-tech Corporation for the purchase and installation of a new fiscal management system, that system will not be fully in place for another 12-18 months. 9-1 Page 2 Item Meeting Date q 09/01/98 Until such time as the conversion is complete, the City must operate the Unisys mainframe to process these applications. FISCAL IMPACT: The cost for the license agreement is $62,674 which has been included in the FY 1998-99 budget for the Management and Information Services Department. Cf~cr RESOLUTION NO. /q / 'Ii RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BIDDING PROCESS AND APPROVING AGREEMENT WITH UNISYS CORPORATION FOR THE RENEWAL OF SOFTWARE LICENSE FOR THE UNISYS MAINFRAME COMPUTER FOR EIGHTEEN MONTHS WHEREAS, in September of 1990, the City of Chula vista installed a new mainframe computer, the Unisys V-430; and WHEREAS, included as part of the purchase agreement was a five year lease of the system software; and WHEREAS, the system software includes the operating system, COBOL compiler, and the data base management system; and WHEREAS, all of these software products are proprietary products from Unisys and are licensed directly from Unisys; and WHEREAS, in August 1995, Council approved an extension of the license agreement for an additional three years; and WHEREAS, the license agreement will expire in September, 1998 and must be renewed; and WHEREAS, the charge for extending the license for eighteen months is $62,674 and is due upon renewal. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby waive the bidding process as impractical in accordance with Section 2.56.070 of the Chula vista Municipal Code and approve the Agreement with Unisys Corporation for the renewal of software license for the Unisys mainframe computer for eighteen months. Presented by Approved as to form by Louie Vignapiano, Director of Management and Information Services H:\home\lorraine\rs\software.ren CJ-3 Resolution 19 / l( 9 Approving Final Map of Chula Vista Tract No. 93-03, Telegraph Canyon Estates, Neighborhood 3, Unit 4, and Approving the Subdivision Improvement Agreement for the Completion of Improvements Required by Said Subdivision and Authorizing the Mayor to Execute Said Agreement Resolution I C; / 5' /) Approving Final Map of Chula Vista Tract No. 93-03, Telegraph Canyon Estates, Neighborhood 3, Unit 5, and Approving the Subdivision Improvement Agreement for the Completion of Improvements Required by Said Subdivision and Authorizing the Mayor to Execute Said Agreement Resolution ! '1 (5" ! Approving Final Map of Chula Vista Tract No. 93-03, Telegraph Canyon Estates, Neighborhood 3, Unit 6, and Approving the Subdivision Improvement Agreement for the Completion of Improvements Required by Said Subdivision and Authorizing the Mayor to Execute Said Agreement Resolution , 9 (~d...Approving Supplemental Subdivision Improvement Agreement for Chula Vista Tract No.93-03, Telegraph Canyon Estates, Neighborhood 3, Units 4, 5, and 6, Requiring Developer to Comply with Certain Unfulfilled Conditions of Resolution No. 16960 and Authorizing the Mayor to Execute Said Agreement SUBMITTED BY: Director of Public Works~ REVIEWED BY: City Manager~ ~ @ (4/5ths Vote: Yes_No X) On January 19, 1993, by Resolution 16960 (Attachment A), the City Council approved the Tentative Subdivision Map for Chula Vista Tract 93-03, Telegraph Canyon Estates. On October 19, 1993 by Resolution 17278, (Attachment B), the City Council amended certain conditions of the previously approved Tentative Map. The last remaining final maps for said Tentative Map are now before Council for approval. The Final Map, the Subdivision Improvement Agreements (Attachment C) and the Supplemental Subdivision Improvement Agreement (Attachment D) are now before Council for consideration and approval. ITEM TITLE: A) B) C) D) COUNCIL AGENDA STATEMENT Item I CJ Meeting Date 9/1/98 RECOMMENDATION: That Council adopt the resolutions approving: (A) the Final Maps, and Subdivision Improvement Agreements, and (B) the Supplemental Subdivision Improvement Agreement. It} -/ Page 2, Item -/...!2 Meeting Date 9/1/98 BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: The project is generally located on the northerly side of Otay Lakes Road and adjacent to the western side of the proposed alignment for State Route 125. It consists of 111.7 acres which are proposed to be subdivided into 344 residential lots and 7 open space lots. The fIrst thirteen units of the development, which were previously approved by Council, consist of a total of 284 numbered single family residential lots and a total of six (6) lettered lots for open space and other public purposes totaling approximately 97.35 acres. The Final Maps now before Council for approval are the last three maps of the development. These three maps consist of a total of 60 numbered single family lots and one lettered lot totaling approximately 14.3 acres (Attachment E). Approval of the maps brings the total number of approved lots for the development to 344 numbered residential lots and 7 lettered lots for open space and other public purposes. An agreement with the previous developer, Baldwin Builders, regarding affordable housing and a community purpose facility site was approved on November 22, 1994, by Council Resolution No 17737, (Attachment F). The Final Maps for Neighborhood 3, Unit 4, Unit 5 and Unit 6 of Telegraph Canyon Estates have been reviewed by the Department of Public Works and found to be in substantial conformance with the approved Tentative Map. Approval of the maps constitutes acceptance, on behalf of the City, of Lot "A" for open space and other public purposes and acceptance of all sewer, drainage, and street tree planting and maintenance easements within the subdivision, all as shown on the Final Maps. Pursuant to Section XI of Resolution 16960 (Attachment A),the street names and portions of Chateau Court, Creekwood Way, Genevieve Avenue and Lafayette Place are accepted on behalf of the City. At a City Council meeting held 9/24/98, several concerns with Baldwin Builder's St. Claire development (Telegraph Canyon Estates) were brought to the attention of the Council. Those concerns included the decline in the condition of the landscaping within Open Space District No. 31, a lack of completion of some public improvements, and problems associated with suspension of construction of partially built homes. All concerns summarized in that Council Agenda Statement entitled, "Report: Status of Telegraph Canyon Estates (St. Claire Estates)", (Attachment G) have been satisfIed. The Council Report brought up various issues concerning the following issues: CONCERN NO. I - LANDSCAPED AREAS The issues of overall deterioration of the landscaping in Open Spaces and medians; lack of water due to the water meters being padlocked by the water district for non-payment; and vandalism/lack of maintenance of the irrigation system have been ameliorated to City standards. If}' 2- Page 3, Item Li::? Meeting Date 9/1/98 CONCERN NO.2 - SUSPENSION OF CONSTRUCTION OF HOUSES Housing construction on unfinished homes has been completed. CONCERN NO.3 - INADEOUATE WATER LINE AND ROADWAY Waterlines have been installed and activated. UnfInished roads have been completed, providing vehicular circulation to completed homes. The developer has executed three (3) Subdivision Improvement Agreements and has provided bonds to guarantee construction of the required public improvements and the subdivision monumentation as shown on Chula Vista drawings 94-01 through 92-20. In addition, the developer has paid all applicable fees related to the development. The developer has executed a single Supplemental Subdivision Improvement Agreement in order to satisfy the following unfulfIlled conditions of Resolution 16960 approving the Tentative Map for Telegraph Canyon Estates. In satisfaction of Condition 1 of Resolution 16960, Developer agrees to install public facilities in accordance with the Public Facilities Financing Plan (PFFP) as amended or as required by the City Engineer to meet threshold standards adopted by the City of Chula Vista. In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan as may be amended in accordance with the fmal HNTB SR-125 Financing Study adopted by the City. The City Engineer and Planning Director may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. In satisfaction of Condition 4 of Resolution 16960, Developer agrees, unless otherwise conditioned, to comply with, remain in compliance with, and implement, the terms, conditions and provisions of the Telegraph Canyon Estates General Development Plan, Sectional Planning Area Plan, Master Plan of Reclaimed Water, Water Conservation Plan, Air Quality Improvement Plan and the Public Facilities Financing Plan approved by the Council ("Plans") as are applicable to the property which is the subject matter of this Tentative Map, prior to approval of any Final Map, or shall have entered into an agreement with the City, providing the City with such security (including recordation of covenants running with the land) and implementation procedures as the City may require, assuring that, after approval of all Final Maps, the developer shall continue to comply with, remain in compliance with, and implement such Plans. In satisfaction of Condition No. 28 of Resolution No. 16960, Developer agrees to determine the amount of and deposit all costs potentially incurred from retrofItting the reclaimed water system in all areas to be ultimately publicly maintained, when reclaimed water becomes available, the amount of said deposit subject to approval of the City Engineer. Such deposits shall be made within 30 days of request by the City Engineer. In satisfaction of Condition No. 29 of Resolution No. 16960, the Developer agrees to install reclaimed water lines as outlined in the Public Facilities Financing Plan as amended from time to /pJ~3 Page 4, Item / d Meeting Date~ time, when the associated road improvements are constructed or when the City Engineer determines in his or her discretion, that the facilities are necessary to provide a link to a live system. In satisfaction of Condition No. 30 of Resolution No. 16960, the Developer agrees and acknowledges that the City may withhold building permits for any units in the project if anyone of the following occur: a. Regional development threshold limits set by the Eastern Chula Vista Transportation Phasing Plan have been reached. b. Traffic volumes, levels of service, public utilities and/or services exceed the adopted City threshold standards. In satisfaction of Condition No. 31 of Resolution No. 16960, the Developer agrees to comply with the requirements of the revised Eastern Chula Vista Transportation Phasing Plan and Transportation Development Impact Fee Program or as said documents may be revised based on the conclusions of the H.N.T.B. State Route 125 financing study. In satisfaction of Condition No. 54 of Resolution No. 16960, the Developer agrees to construct a block wall between the retaining walls indicated on the Tentative Map along the south side of Gotham Street adjacent to the Otay Water District property. The parties to this Agreement agree to negotiate in good faith those details needed to fulfill Condition No. 54 of this Resolution pertaining to the installation of said block wall. Should the parties fail to reach an Agreement regarding the details, the City Director of Planning shall determine all details regarding construction of the wall. Developer acknowledges and agrees that the new wall or any other proposed structure shall be subject to the approval of the Director of Planning and construction shall be commenced prior to issuance of building permits for Lots 1-7 of Unit 4 and construction shall be completed prior to issuance of certificates of occupancy for Lots 1-7 of Unit 4. In satisfaction of Condition No. 55 of Resolution No. 16960, the Developer agrees to construct the pedestrian path between Lots 148, 149 and 150 (Tentative Map Designations) in Lot C. Construction and installation shall be in accordance with Landscape and Irrigation plans and shall be completed prior to issuance of certificates of occupancy for Lot 148,149 of 150. In satisfaction of Condition No. 69 of Resolution No. 16960, the Developer agrees to comply with all applicable sections of the Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Telegraph Canyon Estates Tentative Map, Tract 93-03 established by Resolution 16960 approved by City Council on January 19, 1993 and shall remain in compliance with and implement the terms, conditions and provisions of the Agreement. City agrees that the execution of this Agreement constitutes satisfaction of developer's obligation of Conditions 1, 4, 28, 29, 30, 31, 54, 55,and 69 of the Resolution. /C/-~ ~ Page 5, Item ~ Meeting Date 9/1/98 A Supplemental Subdivision Improvement Agreement applicable to these maps has been previously approved by Council with the first three maps by Resolution 17279 (Attachment H ) and the Developer's Disclosure Statement, is attached as (Attachment I). FISCAL IMPACT: All staff costs associated with processing of improvement plans and final maps will be reimbursed from developer deposits. Attachment~. Attachment A: Chula Vista Tract 93-03, Resolution 16960 Attachment B: Chula Vista Tract 93-03, Resolution 17278 Attachment C: Subdivision Improvement Agreements Attachment D: Supplemental Subdivision Improvement Agreement for Telegraph Canyon Estates Attachment E: Location Map/Subdivision Plat for Telegraph Canyon Estates Attachment F: Chula Vista Tract 93-03, Resolution 17737 Attachment G: Council Agenda Statement, "Report: Status of Telegraph Canyon Estates (Sl. Claire Subdivision) Attachment H: Chula Vista Tract 93-03, Resolutionl7279 Attachment I: Developer's Disclosure Statement EY4lO, EY414, EY415 AUGUST 27,1998 8:05AM H:IHOMElENGINEERILANDDEVICASTCE.DEK H:IHOMEIENGlNEERILANDDEVICASTCE.DEK /6-S;- RESOLUTION NO. /9/cf? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 4, AND APPROVING SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 4, and more particularly described as follows: BEING A DIVISION OF THE SOUTH QUARTER OF SECTION 34, TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORING TO THE OFFICIAL PLAT THEREOF. Area: 4.165 acres Numbered Lots: 16 No. Of Lots: 16 Lettered Lots: 0 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the public the public street, to-wit: portions of Creekwood Way and Chateau Court (as shown on the final map) and said streets are hereby declared to be public streets and dedicated to the public use. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the City of Chula Vista the easements tendered with the right of ingress and egress for the construction and maintenance of storm drain facilities and for street tree planting and maintenance, all as granted and shown on said map within said subdivision, subject to the conditions set forth thereon. BE IT FURTHER RESOLVED that the City Clerk of the City of 1 IO/t-1 Chula Vista be, and she is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that said public streets are accepted on behalf of the public as heretofore stated and that those certain easements with the right of ingress and egress for the construction and maintenance of storm drain facilities and for street tree planting and maintenance, as granted thereon and shown on said map within said subdivision is accepted on behalf of the City of Chula Vista as hereinabove stated. BE IT FURTHER RESOLVED that the City Clerk be, and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. coQ..75-J3i) BE IT FURTH R RESOLVED ~t the certain Subdivision Improvement Agreement ated the ~ day of -:L, ~, 199:8" , for the completion of improvements in said subdivisio~, a copy of which is attached hereto and by reference made a part hereof, the same as though fully set forth herein, be and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and she 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 /f!larJtr'~ ~.~ Ci ttorney 0 John P. Lippitt Director of Public Works c:\cbs\cvcity\reso\tcen3u4 2 It/I!. 2- RESOLUTION NO. /91? d RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 5, AND APPROVING SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 5, and more particularly described as follows: BEING A DIVISION OF THE SOUTH QUARTER OF SECTION 34, TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORING TO THE OFFICIAL PLAT THEREOF. Area: 3.306 acres Numbered Lots: 15 No. Of Lots: 15 Lettered Lots: 0 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the public the public streets, to-wit: portions of Chateau Court and Genevieve Avenue (as shown on the final map) and said streets are hereby declared to be public streets and dedicated to the public use. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the City of Chula Vista the easements tendered with the right of ingress and egress for street tree planting and maintenance, all as granted and shown on said map wi thin said subdivision, subject to the conditions set forth thereon. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista be, and she is hereby authorized and directed to 1 /tfJ/3-/ endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that said public streets are accepted on behalf of the public as heretofore stated and that those certain easements with the right of ingress and egress for construction and maintenance of street planting, as granted thereon and shown on said map within said subdivision is accepted on behalf of the City of Chula Vista as hereinabove stated. BE IT FURTHER RESOLVED that the City Clerk be, and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. I C-DCf 8' ~ / g BE IT FURT~OLVED &hat the certain Subdivision Improvement Agreementl~;t:~~~he ~ day of ')~ ~, 199~, for the completion of improvements in said subdivisio~ a copy of which is attached hereto and by reference made a part hereof, the same as though fully set forth herein, be and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and she 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 (fj~'3i1'1 cz;.J;Jif C' ttorney c:\cbs\cvcity\reso\tcen3u5 2 lpg, ;;;L RESOLUTION NO. 14I/~;' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 6, AND APPROVING SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES NEIGHBORHOOD 3, UNIT 6, and more particularly described as follows: BEING A DIVISION OF THE SOUTH QUARTER OF SECTION 34, TOWNSHIP 17 SOUTH, RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORING TO THE OFFICIAL PLAT THEREOF. Area: 6.826 acres Numbered Lots: 29 No. Of Lots: 30 Lettered Lots: 1 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the public the public streets, to-wit: Lafayette Place (as shown on the final map) and said street is hereby declared to be a public street and dedicated to the public use. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the City of Chula Vista Lot "A" for open space and other purposes and the easements tendered with the right of ingress and egress for construction and maintenance of sewer and drainage facilities and for street tree planting and maintenance, all as granted and shown on said map within said subdivision, subject to the conditions set forth thereon. BE IT FURTHER RESOLVED that the City Clerk of the City of 1 I ~(! - / Chula Vista be, and she is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that said Lot "Au is accepted for open space and other purposes; and that said public street is accepted on behalf of the public as heretofore stated and that those certain easements with the right of ingress and egress for construction and maintenance of sewer and drainage facilities and for street tree planting and maintenance, as granted thereon and shown on said map within said subdivision is accepted on behalf of the City of Chula Vista as hereinabove stated. BE IT FURTHER RESOLVED that the City Clerk be, and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. ~ C.Oq-o-I,]."t.- BE IT FURT1~ RESOLVED ~t the certain Subdivision Improvement Agreement dated the ~ day of ~ ~~' 199~, for the completion of improvements in said subdivisio , a copy of which is attached hereto and by reference made a part hereof, the same as though fully set forth herein, be and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and she 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 @~!Jft?rlF 4, fu ~'f) Ci~ ttorney c/ John P. Lippitt Director of Public Works c:\cbs\cvcity\reso\tcen3u6 2 //J{! - 2- RESOLUTION NO. ~~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT 93-03, TELEGRAPH CANYON ESTATES, NEIGHBORHOOD 3, UNITS 4, 5, AND 6 REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION NO. 16960 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer for Chula Vista Tract No. 93-03, Telegraph Canyon Estates, Neighborhood 3, Units 4, 5, and 6 has executed a Supplemental Subdivision Improvement Agreement (SSIA) in order to satisfy Conditions 1, 4, 28, 29, 30, 31, 54, 55, 69 of Resolution No. 16960. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 93-03, Kaufman and Broad Coastal, Inc., Telegraph Canyon Estates, Neighborhood 3, Units 4, 5, and 6 a copy of which is on file in the office of the City Clerk as Document No. 0/)c:rf?-/~3 BE Chula Vista Agreement. IT FURTHER RESOLVED that the Mayor of the City of is hereby authorized and directed to execute said Presented by Approved as to form by John P. Lippitt Director of Public Works g .'" /'" /' II (J}/::!l:IJ;: ',J ~ 7 (G--t1W<-<'Lr;- h J J . Ka eny City Attorney c: \cbs\ordinanc\reso\tcen3u456. sup /1/1)-1 COUNCIL AGENDA STATEMENT ITEM TITLE: ItemJL Meeting Date 9/1/98 Resolution / 9/ ~ting an underground electric easement to SDG&E to erect, construct, change the size of, improve, reconstruct, relocate, repair, and/or maintain SDG&E facilities and appurtenances along City-owned property located on Lot "A" ofChula Vista Tract 97-01, Unit 2, Rancho Del Rey, Spa III, (Bolero 2). SUBMITTED BY: Director of Public Workt ~I\ REVIEWED BY: City Manage1)\l ~ V>J~j (4/5thsVote:Yes_ NoX) Chula Vista Tract 97-01, Unit 2, Rancho Del Rey, Spa III, (Bolero 2) is a 177 condominium project located north of Telegraph Canyon Road, south of East "J" Street and west of Buena Vista Way. SDG&E proposes to construct underground communication facilities, natural gas pipelines and appurtenances under a City emergency access road and is requesting an easement for all purposes, together with the right of ingress thereto and egress therefrom over said easement and over other practical routes across City's land. RECOMMENDATION: That Council adopt the subject resolution granting a ten foot wide underground electric easement across City-owned property and have the Mayor execute the easement on behalf of the City. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The easement site is located in Open Space Lot "A" of Rancho Del Rey, SPA III and is scheduled for construction, in part, as a 20' wide emergency access road (Exhibit A). It is SDG&E's intention to construct underground facilities from Buena Vista Way to the subdivision boundary by utilizing a 10' underground easement under the eastern half of the proposed 20' wide access road. The access road is scheduled to be constructed with 6" of Portland Cement Concrete. By granting this access easement, SDG&E and its successors in interest will be guaranteed continuous use of the City's property for underground facilities. The language in the easement has be reviewed by the City's Engineering Division and approved by the City Attorney's office. FISCAL IMP ACT: There is no cost to the General Fund. Staff time is being reimbursed from the deposit by Bolero Unit 2 because the easement services the subdivision. Staff recommends that no fees be required from SDG&E for the easement or its processing since the access road and SDG&E easement are both designed to serve the same development. Attachments: Exhibit "A" showing location of easement. Engineering Division File No. RR~314 H:\HOMEIENGINEERILANDDEV\CASSDGE.DEK 1/-/ August 25, 1998 (2:52pm) EXHIBIT "A" - - - - - - - . .~'\~ co '\. .~ ;0 "v v ~ It '" , , ....OD;) :'CC ..,oll:i -....'" 01/ h ....Cl::-' n ... . . . E SEMENT LOT I ~I ~110' ~'" + \ \ \ "A" ~ 4~7\ .k'/;/ 10' .k";/ '/;~/ ..s,7 \ :1-.. ..... <'I' ..,~ . . ~-' N Bj~3'01!(!!J_-- - ------ co'- .,,"'- ......,\ ...; ..., co O. '" ..,,,, I Ie ll:: -' I \ 10' - \ \ \ \ <> ~ ~'lB'39"!(!) A,> _----., /r..~ \ . ':i. ~r:o 1 ",-:,,01k (\r~ __ '0-;..5:'.. \. OO.~'/; ......... - l.. ~O'9'/ /' ' R ~ .,. /. 0 ,~~\.. ~-- /jJ~' ......... 'v /' / I\; ~s IS.,. '/..fPS'~ ..fa- ~~ \ \ - 2-- ~ ~ ~ tI:l ~ ~ ~ ~ ~ RESOLUTION NO. / 9 I. <) -3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING AN UNDERGROUND ELECTRIC EASEMENT TO SDG&E TO ERECT, CONSTRUCT, CHANGE THE SIZE OF, IMPROVE, RECONSTRUCT, RELOCATE, REPAIR, AND/OR MAINTAIN SDG&E FACILITIES AND APPURTENANCES ALONG CITY-OWNED PROPERTY LOCATED ON LOT "A" OF CHULA VISTA TRACT 97-01, UNIT 2, RANCHO DEL REY, SPA III, (BOLERO 2) WHEREAS, Chula vista Tract 97-01, unit 2, Rancho Del Rey, Spa III, (Bolero 2) is a 177 condominium project located north of Telegraph Canyon Road, south of East "J" Street and west of Buena vista Way; and WHEREAS, SDG&E proposes to construct underground communication facilities, natural gas pipelines and appurtenances under a City emergency access road and is requesting an easement for all purposes, together with the right of ingress thereto and egress therefrom over said easement and over other practical routes across city's land. C Dc:;'?) - /31 , THEREFORE, BE IT RESOLVED the city Council of the ula vista does hereby grant an underground electric easemen to SDG&E to erect, construct, change the size of, improve, reconstruct, relocate, repair, and/or maintain SDG&E facilities and appurtenances along city-owned property located on Lot "A" of Chula vista Tract 97-01, unit 2, Rancho Del Rey, Spa III, (Bolero 2). BE IT FURTHER RESOLVED that the Mayor of the city of Chula Vista is hereby authorized to execute the easement on behalf of the City of Chula vista. Presented by Approved as to form by John P. Lippitt, Director of Public Works 5/; Joh ". ~Th~ { . ,/ ".J,4t\. 'UA4' Kaheny, city torney H:\home\lorraine\rs\bolero2.eas 1/; 3 ~ . 'Recording Requested by San Diego Gas & Electric Company When recorded, mail to: San Diego Gas & Electric Company P,O. Box 1831 San Diego, CA 92112 Attn: Real Estate Transactions - CP41 06 SPACE ABOVE FOR RECORDER'S USE Project No.: Const. No.: APN No.: 834251-02 1558320 Por. 640-090-26, 27 Transfer Tax None SAN DIEGO GAS & ELECTRIC COMPANY EASEMENT TIIE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "Grantor", grants to SAN DIEGO GAS & ELECTRIC COMPANY, a corporation, "Grantee", an easement and right of way to erect, construct, change the size of, improve, reconstruct, relocate, repair, maintain and use facilities consisting of:(1) Underground communication facilities, and appurtenances, (2) Pipelines and appurtenances for any and all purposes, together with the right of ingress thereto and egress therefrom over said easement and over other practical routes across Grantor's land situated in the County of San Diego, State of California. Lot "A" ofChula Vista Tract 97-01, Unit 2, Rancho Del Rey Spa Ill, according to Map thereof No. 13570, filed in the office of the County Recorder of said County of San Diego, The easement in the above described property shall be the Easterly 10.00 feet of that certain 20.00 foot wide access easement lying within said Lot "A", shown and delineated on said Map 13570 as "Emergency Access Easement to the City of Chula Vista Granted Hereon". SDG&E shall defend, indemnify and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including but not limited to attorney's fees) arising out of the conduct of SDG&E, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this easement, except those claims arising from the sole negligence or sole willful conduct of the City, its officers or employees. SDG&E's indemnification shall include any and all costs, expenses, attorney's 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, SDG&E, at its own expense shall, upon written request of the City, defend any suit or action brought against the City, its officers, agents or employees arising out of the conduct of SDG&E, or any agent or employee, subcontractor, or others in connection with the execution of the work covered by this easement, except those claims arising from the sole negligence or sole willful conduct of the City, its officers or employees. SDG&E's indemnification of the City shall not be limited by any prior or subsequent declaration by SDG&E. \ \- q 009~~/31 ~~\~158 lland\dalalzulauj\distrib\chulaOJ.doc . Grantor will exercise only such reserved rights in said land as will not interfere with or prohibit the free and complete use and enjoyment by Grantee, its successor or assigns, of the rights hereby granted. Grantee shall have the right to assign any or all rights granted in this easement in whole or in part to other companies providing utility or communication services. THE CITY OF CHULA VISTA, a municipal corporation By: Prepared by: Zulauf Date: 6/17/98 rev. 8/11/98 llandldalalzulaufidistrib \chuloO 1. doc \ \-~ COUNCIL AGENDA STATEMENT Item-f.2--, Meeting Date 9/1/98 ITEM TITLE: Resolution 11! ~ '-/ 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). SUBMITTED BY: Director of Public wor~\\1\ City Manage1\)\<. ~ ~'\ (4/5ths Vote: Yes...x.. No-> REVIEWED BY: On January 7,1997, the City Council approved Resolution 18544 ordering the conditioned street vacation ofa portion of the 100 block of Jefferson Avenue. 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-DE1277 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 conjunctioq 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 /d-/ Page 2, ItemL.2- Meeting Date 9/1198 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). Prevai1in~ Wa~e 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 Ag:reement 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 IMPACT: 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). Attachment: Exhibit A - Resolution No. 18544 File No: TF-258 H:\HOME\ENGINEER\AGENDA\TF258.RDJw I~';;L, RESOLUTION NO. 18544 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE CONDITIONED VACATION OF A PORTION OF THE 100 BLOCK OF JEFFERSON AVENUE WHEREAS. the Chula Vista Elementary School District has applied to the City to vacate the portion of Jefferson Avenue from Flower Street to approximately 300 feet south. along the frontage of Feaster Elementary School; and WHEREAS. in accordance with Part 3. Chapter 3. of the California Streets and Highways Code. Council must hold a public hearing in order to consider the vacation request; and WHEREAS. in order to vacate. Council must.adopt a resolution ordering the vacation. and that resolution may contain conditions to be met by the applicant prior to its recordation; and WHEREAS. on 12/10/96, Council adopted Resolution No. 18516. setting the public hearing for 1/7 /9 7 . NOW. THEREFORE. BE IT RESOLVED the City Council of the City of Chula Vista does hereby order the conditioned vacation of a portion of the 100 block of Jefferson Avenue. more particularly described in Exhibit . A.. with the following mitigation that the School District pay to: 1. Add eastbound to southbound right turn lane at Flower Street/Broadway intersection by restriping and prohibiting parking near the intersection. Cost: $1,000. 2. Adding a permissive/protected left turn signal.fof"ME" Street traffic:ia:~~; adjusting traffic signal phasing at .BroadwayrE" Street to extend eastbound to northbound left turn phase plus Installing south bound to west bound free right turn phase to overlap with east-west left turn phase at Broadway/"E" Street. 'Cost: $30.000. 3. Removing at least one fan palm tree on the west side of Broadway north of Flower Street to improve sight distance to the north. Cost: $500 - $1.000. 4. Construct an appropriate cul-de-sac closure on Jefferson Avenue at its terminus north of "E" Street. The cost of this work has not been estimated. 5. Subject to City of Chula Vista City Council approval. dedicate and improve as necessary a walkway adjacent to and west of the School that will provide safe access for residents to be able to walk to the stores on ME" Street. 6. Should the School site be partially or fully sold. the City of Chula Vista shall be compensated. based on an appraisal done by a certified real estate appraiser. for that portion of Jefferson Street under present ownership by the City of Chula Vista. I I;} .3 ",1)' Resolution 18544 Page 2 7. The School District shall submit to the City of Chula Vista for review and approval the plans to correct existing drainage problems at the westerly side of the School. 8. All easements for all existing utilities within the vacated right of way shall be retained by those companies. 9. Gates provided for pedestrian traffic through the School campus shall be left unlocked during non-school hours to provide alternatives available for pedestrians. 10. Final design of the pedestrian walkway shall be subject to the approval of the Chula Vista City Council. BE IT FURTHER RESOLVED that the vacation take effect only after conditions required by the City Council have. been satisfied and the City Clerk is instructed thatthe resoluti~l):ot'"' . ,._c, ~",;.,., -',. ,',' ",. "'-,".,i_."t...- '.:.-..,.'" .,' vacation not be recorded until notified by the City Engineer that the conditions. enumerated . -a60vEr-tiaVelbeBri~,r-atiSfi~dli}:':'~;f' - -'--'~--"-~o"~.'_.~M~"~~__W'~~~k'~ :~.;,~. -' , Presented by Approved as to form by ~}i~l JOhtcP. Lippitt Pub ic Works Director . ,-;7",-- ~C:;' ~ n M. Kaheny ity Attorney /~-1 Resolution 18544 Page 3 - . " . ~ ....,. -..... , __.1......--'_"'- ~. DESCRIPTION OF STREET VACATION FOR A PORTION OF JEFFERSON A VENUE P4RCEL"A" T:'..ATPORTION OF THE SOUTHWEST QDf.Ri;oR Or TrlESOUTHE.<.ST QU.L.RTER OF QUJ..Ri;oR SECTION 161 OF RANCHO DE LA NAClON IN T.>1E CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ACCORDING TO MAP THEREOF MAP NO. J66 FILED IN TrlE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUN1Y MAY ll, l869 DESCRlBED AS FOLLOWS: BEGINNlNGAT THE NORTIi"..AST CORNER OF SAID SOUTHWEST QUARTER OF THE SOUTHEAsT QUARTER OF SAID QUARTER SECTION ]61; THENCE IN A SOUTHERLY DIRECTION ALONG THE EAST LINE OF SAID QUARTER SECTION ]61, A DISTANCE OF 30:00 FEET TO A POINT 30.00 FEET SOUTHERLY, MEASURED ATRlGHT ANGLES FROM THE NORTHERLY LINE OF SAID QUARTER SECTION] 61, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE CONTINUING IN A SOUTHERLY DIRECTION ALONG SAIDEASTLINEADISTANCE0F300.00 FEET TO A POINT330.00 r=.J NORTHERLY, MEASURED AT RlGHT ANGLES FROM THE SOUTHERLY LlNE OF SAID QUARTER SECTION J6J; TIiENCELEAVING SAID LINE AJ-.'D COKTINUING IN A v,'ESTERLY DIRECTION ALONG A LINE PARALLEL \>,'lTrl AND DISTANT THElU;,O, 30.00 FE..."T FROM SAID SOUTHERLY LINE OF SAID QUARra. SECTION 16J, A DISTANCE OF 40.46:-=.J TO A POINT 40.46 r=l WESTERLY MEASURED ATRlGHT ANGLES FROM TrlE EASTERLY LINE OF SAID QUARTER SECTION] 61; TIiENCE ALONG A LINE PARALLEL WTIH AND DISTANT TIlER...."TO 40.46 r;.r.l FROM SAID EASTERLY LINE MEASURED AT RlGHT ANGLES A DISTANCE 0F27S.00 rLLl, MORE OR LESS TO THE BEGINNlNG OF A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 25.00 FEET, THE POINT OF INTERSECTION OF THE SEMJ-TANGENTS OF SAID CURVE BEING COINClDENTV,'111l THE POINT OF INTERSECTION OF THE LASTNAMED PARAI.LELLINE WI1H A LINE 1HAT IS PARAI..LEL \l,'1'J1l AND DISTANT THERETO 30.00 r:'!;'l MEASURED AT RlGh"T ANGLES, SOlJTHERLY FROM THE NOR1HERLY LINE OF SAID SOUTHWEST QUARTER; THENCE NORTHVr'r.STERL Y ALONG THE ARC OF SAID CURVE TO A POINT OF TANGENCY IN A LINE \VIDCH IS PARALLEl. W1TH AJ-.'D 30.00 FEET SOUTHERLY MEASURED AT RlGHT ANGLES TO SAID NORTrlERL Y LINE OF SAID SOU1H\VEST QUARTER; TI1"'ENCE EASTERLY ALONG AFORESAID PARALLEL LINE TO SAID NORTHERLY LINE A DISTANCE OF 6S.46 FEET TO TrlE TRUE POlJ\"T OF BEGINNING. PARCEL .'B'" 1HATPORTION OFTHESOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF QUARTER SECTION 16J OF RANCHO DE LA NAClON IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE ell' CALIFORNIA ACCORDING TO MAP 1HEREOF, NO. J66 FILED IN THE OFFlCE.OF THE COUN"TY RECORDER OF SAN DIEGO COUNTY MAY J I, J 869 AND DESCRlBED AS FOLLOWS: BEGINNING ATTrlE SOLTrl\\'EST COR."lER Or PARCEL J ACCORDING TO PARCEL MAP NO. l484E FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY JUNE J J, J9&7; TrlENCE CONTINUING SOUTrl70.S9>&" WEST ALONG A PROJECTION OF THE SOUTHERLY LINE OF SAID PARCEL ] A DISTANCE OF 20.00 FEET TO AN D-'1ERSECTION \l,'1'J1l THE WEST LINE OF SAID SOUTHEAST QUARTER OF TrlE SOUTHEAST QUARTER OF SAID QUARTER SECTION J6J; TIiENCE NORTHERLY ALONG SAID \lr::.STLINE A DISTANCE OF 302.26 FEe, TO A POINT 30.00 FEET SOUTHERLY, MEASURED A TRlGHT ANGLES FROM THE NORTHERLY LINE OF SAID QUARTER SECTION J 6J; TIiENCE EASTERLY ALONG A LINE WHICH IS PARALLEL WlTrlAND 30.00 FEET SOUTHERLY MEASURED A TRlGHT ANGLES TO SAID NORTHERLY LINE OF SAID SOUTHW"'~T QUARTER A DISTANCE OF 29.9& F""cl;1' TO A POD-'T OF CUSP v.'111l A J 0.00 FOOT RADIUS CURVE CONCAVE SOUTHEASJa-L Y, TrlE RADIUS POD--rTO SAID POD-'T OF CUSP BEING PERPENDlCULAR W1TIl SAID POD-'T OF CUSP AS SHOWN PER SAID PARCEL MAP trill-rE' Resolution 18544 Page 4 J4848; Th;oNCE CONTINUING IN A WESTERLY AND SOUTHERLY DIRECTION ALONG THE ARC OF SAID CURVE AS SHOWN PER SAID PARCEL MAP 14848 THROUGH A CENTRAL ANGLE OF 89053'50' AN ARC LENGTn OF J5.69 F&./TO AN INTERSECTION WITH THE WEST LINE OF PARCEL] AS SHOWN PER SAID PARCEL MAP 14848; TrlENCE IN A SOUTHERLY DIRECTION PARALLEL WITH THE WEST LINE OF SAID SOUTHEAST QUARTER OF THE SOUTrlEAST QUARTER OF SAID QUARTER SECTION 16] A DISTANCE OF 292.28 no=. j TO THE POINT OF BEGINNING. EXCEPTING THEREFROM TnE FOLLOWJNG EASEMENTS: TO: SWEETWATER AUTHORITY . RESERVING AND EXCEPTING FROM VACATION AND ABANDONMENT, TO THE SWEETWATER AUTHORITY, AN EASEMENT FOR. AND THE RIGHT TO INSTALL. MAINTAIN, REPLACE AND REPAlR WATER FAClLlTlES AND THE RIGHTS OF INGRESS AND EGRESS FOR SUCH PURPOSES IN THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNlA, AND MORE PARTICULARLY DESCRIBED AS ALL OF THE ABOVE DESCRIBED PARCELS U A ~ AND uB~ NO BUI!..DNGS ANDIOR STRUCTURES WilL BE ERECTED, WALLS CONSTRUCTED. FENCES BUll. TNOR TREES PLL'};"TED ljPON THE E..SEMENT HEREIN DESCRIBED. TO: COX COMMUNICATIONS. RESERVING AND EXCEPTING FROM VACATION AND ABANDONMENT, EASEMENT AND RIGHTS TO COX COMMUNlCATlONS, A CORPORATION, PURSUM"TTO ANY EXISTING FRANCIDSE OR RENEWALS THEREOF, OR OTHERWISE, AT ANY TIME, OR FROM TIME TO TIME TO CONSTRUCT, MAINTAIN, OPERAE, REPLACE AND REMOVE AERIAL AND UNDERGROUND COMMUNlCATlON STRUCTlJRES CONSISTING OF CONDUlTS, CABLES, WIRES, POLES AND OTHER NECESSARY A}.TI) APPURTENANCES TOGETrlER WITH THE RIGHT OF INGRESS A}.TI) EGRESS TO PROTECT THE PROPERTY FROM ALL HAZARDS IN, UNDER AND UPON ALL OF THE ABOVE-DESCRIBED P ARCELS "A~ AND "B" ", Ie:;-~ Resolution 18544 Page 5 EXHIBIT "A" .0 o :;; ,.., --;I,' R=2S.00 ..--- o_~ .'ffi' '" . ~ ' . 0 o 0 ~ . o . N ;< SCALE: 1 ~.= , DO" NDRTHS'-ST CORNER OF SDUTHW::ST DUARTER OF SDUTHSASTDUARTCR OF DUARTER SECTION 151 - RANCHO DE LA NACIDN. '.', TA=3lJl .:..~ DATA Ii' ?O 90' \V--. :;:. t6! R=10.00" .6=89'S3'SO- L=1S.59' ----f------------------ .0 o D ,.., ,.., ...J <: ~ w o w w Vl 40.45' SOUTHERLY UNE OF OUARTER SSCTlON 151 THIS PLAT WAS PREPARED UNDER MY DiRECT SUPERVISION. M~~:';4~30 DAlE: /7'7- '/7 EEl PP..EClSlDN I SURVEY t lU~rnG IN 95-1091 951091S4.ciwg 1/17/97 B14 Mo:-cno' Blvd.. Suite .)03 San Die90. CA 92110-2633 (6'9)294-2727 r J-X(619)294-3335 , I ;:, N N 0> N DETAIL nAn NO SCALE SOUTHW::ST CORNER OF PARCEL 1 PER PM 1454B-POINT cr. BEGINNING PARCEL B. .J;;; 7 Resolution 18544 Page 6 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of January, 1997, by the following vote: AYES: Councilmembers: Moot, Padilla, Rindone, Salas, and Horton NA YES: Councilmembers: None ABSENT: Council members: None ABSTAIN: Councilmembers: None A-ILAh ~/M/Ci1 Shirle~Horton, Mayor ATTEST: yZ4 t? d-;;d;~ Beverly . Authelet, City Clerk -. STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 18544 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 7th day of January, 1997. Executed this 7th day of January, 1997. 'Lga (btrll Beverly . Authelet, City Clerk /;;2- ~ I OJ f~ f ~-- ~ ~ C//(C;Jl!! COUNCIL AGENDA STATEMENT ITEM TITLE: A. Item~ Meeting Date 9/1/98 Resolution /9/55 certifying the results of the election for Community Facilities District (CFD) No. 98-3 (Open Space Mainte- nance District #35 [Sunbow II]). B. Ordinance Z / If 5 :Jf 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]). SUBMITTED BY: Director of Public Work~ ~ REVIEWED BY: . City Manag~ ~ ~ (4/Sths Vote: Yes_NoX) At the Council Meeting of August 4, 1998, the ~ity Council held the public hearing for the formation of Community Facilities District No. 98-3. This district will fund the perpetual operation and maintenance of open space slopes, drainage channels, detention basins, medians and parkways of Sunbow II. Tonight's Council action will certify the results of this special election at which the qualified electors of the District were asked whether the levy of this special tax should be authorized and authorize staff to begin the process of determining the collectible amount for Fiscal Year 1998/1999 and Fiscal Year 199912000. RECOMMENDATION: That Council: 1) Approve the resolution certifying the election results for CFD No. 98-3, and 2) Introduce and waive the first reading of the ordinance authorizing the levy of a special tax in Community Facilities District No. 98-3 (Open Space Maintenance District No. 35 [Sunbow II]). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: At the Council Meeting of August 4, 1998, the City Council held the public hearing for the formation of Community Facility District No. 98-3 (Open Space Maintenance District #35 [SUNBOW II]) 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. The City Council also approved the resolutions establishing CFD No. 98-3, the authorization to levy a special tax to finance certain services and accepted a "Report" for this CFD. Ooen Soace District #35 Boundarv The boundary of CFD No. 98-3 encompasses all parcels located within the Sunbow II, which includes a total acreage of 602 acres. At buildout, the district will contain an estimated total of 1,946 dwelling units (1128 Single Family Residences, 818 Multifamily Residences), 11. 0 acres of commercial, an 11. 0 acre elementary school site, and a 46.0 acre industrial site. The boundary map, was 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, in Book 32, Page 34 of the Book of Maps of /3--( (' 01 Page 2, Itemn Meeting Date 9/1/98 Assessment and Community Facilities Districts for said County. A reduced copy of the boundary map is included as Attachment 1. Descriotion of Facilities CFD No. 98-3 will fund the operation and maintenance of the public landscaping improvements (Le., medians, parkways, landscaped and irrigated slopes, natural non-irrigated open space and certain drainage channels and detention basins, walls and fences, trails, and tree trimming) within the Sunbow II Open Space District #35. Cost Estimate The estimated annual budget for CFD No. 98-3 in 1998 dollars is approximately $803,562. Attachment 2 contains a detailed annual budget for the district at buildout. 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. Maximum Soecial Tax Rates The rate of special tax levy broken down by land use for this district for a typical dwelling matrix for Fiscal Year 1998/1999 is as follows: Land Use Cost!EDU/Year Cost! Acre/Y ear Single Family Detached $347.86 N/A Multi-family $334.90 N/A Commercial N/A $3,035.50 Industrial N/A $2,711.45 Undeveloped Land N/A $2,078.54 Public Parcels - (EXEMPT) N/A N/A Comoarison to other Ooen Soace Maintenance Districts The total estimated budget for CFD No. 98-3 at buildout is $803,562 (in base year 1998 dollars) with an annual maximum tax of $347.86 for a single family residence located in Sunbow II. As a comparison, the single family home in Sunbow 1, Open Space District # 18 had an assessment of $312.32 for FY97/98 and is proposed to be assessed at $315.77 for FY98/99. In addition, the 1997-98 total assessment for the existing 24 districts (total of 12,559 parcels) in the City was $1.9 million with the highest homeowner annual assessment at $535 for the 40 unit Canyon Views subdivision. 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 Undeveloped Land. The buffer of having the undeveloped 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. / .3' 2- Page 3, Item / ~ Meeting Date 9/1/98 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 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 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, the inflation adjustment, and the Extraordinary Tax to minimize future problems. Election Results On August 11, 1998, the special election was held at the City Clerk's office. Staff has tallied the ballots cast in this special election with the results showing 556 votes cast for each of the propositions on the ballot. There were no ballots cast in opposition for either of these two propositions: Proposition A: "Shall COMMUNITY FACILITIES DISTRICT NO.98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) be authorized to levy special taxes pursuant to the rate and method of apportionment of special taxes set forth in Resolution 19130 to finance authorized services?" Proposition B: "Shall COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO.35 [SUNBOW 11]) establish an Article XIIIB appropriations limit equal to $1,000,000?" Attachment 3 is the Certificate of Compliance with Notice Requirements completed by the City Clerk and attachment 4 is the Certificate of Election Official and Statement of Votes Cast. Resolution #19130 is attached as Attachment 5. Resolution and Ordinance There is a resolution and ordinance on tonight's agenda which, if adopted, will accomplish the following: The RESOLUTION CERTIFYING THE RESULTS OF THE ELECTION FOR CFD No.98-3 is the formal action of the City Council approving the results of the election to form the district. /3.3 Page 4, Item / ::<) Meeting Date 9ii"i9f' The ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFOR- NIA, AUTHORIZING THE LEVY OF A SPECIAL TAX IN COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO.35 [SUNBOW m) is the formal action authorizing the levy of special taxes within the district. Future Actions . Staff will be returning with a report on the amount of the special tax to be levied for Fiscal Year 1998/1999 and will ask the City Council to adopt a resolution setting the special tax for Fiscal Year 1998/1999. FISCAL IMPACT: 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 district formation and district administration in perpetuity . Attachment: I-Boundary Map 2-S11mmary of Facility Maintenance Costs 3-Certificate of Compliance with Notice Requirements 4-Certificate of Election Official and Statement of Votes Cast 5-Resolution # 19130 August 12, 19983:ooPM H:\HOME\ENGlNEERIAGENDAISUNBOWDELECflONCERT.FXR CFD #98-3 (File:0725-30-0SD35) /3-- .y (OPEN BOUNDARY MAP COMMUNITY FACIUTIES DISTRICT NO. SPACE MAINTENANCE DISTRICT NO. 35 A TT ACHMENT 1 98-3 [SUNBOW II]) CITY OF CHULA VISTA COUNTY OF SAN DI~GO STATE OF CAlIFORNIA _ TELEGRAPH CANYON ~QIoll - WAF' NO. 13423 I..OlS ITtflU J32 641-11c.-5e \-~=-,,\ \~ \ \ ---.."",,\ \..-... \ \ , -~ ..-- -\ , , \ \ \ 641-azc-1S1 \ , , \ , , _---I , , \ 841-122-(11 \ -..- ..-- ....."...... S :0 e ."......., , , \ , ~ r/-- \ , , . 641-122-03 ...-0"...., \ , , \ \ \ \ I401-02O-01 \ , , \ \ , , ---____.....l ~ "'1:-0 :..--\ ~~~~ l()\."'" , , I I f>44.-0n-G2 , I l.________ FILED IN 1H[ OFACE OF' THE 0T'l' ClERK OF mE CflY Of'CtIlAJ,.YIS1'A.1MlS_Da'OF_'H- .,. I J.EW!Q cny CURK ~y A.. AIJJHEllT Cl1Y OF CHlU 'f'ISTA srAlEOF~ t HE1lfBT comFY THAT 1HE BCUCWt'l" w.P stfOWING PROPClSEIlBOl.lNClMlESOFCFDNQ.ll&-JlNlHECfTYor CtfULA VISTA. COUNtY or SNrrl DGO, STATE OF ~F'ORNIof" WASN'PRl::MIlB't'TMEClIYCOOICI..OF'TMECfTYOF' CHUl.A VISTA IJ A REClJLAR MED>>C HEREDF. HElD ON THE _ MY Of 11111_ En'rrs IlfSOL11TICIH NO. ~T.s. -.-..-..-DISTRlCT8OI..IH:llNr'l' ASSESSOR'S PARCEL UNE 641-122-03 ASSESSDR"$ PARCEL NUIoIBER .,. CITY ClERK IIIE't'ERl..T A.. AlffilEU:T CITY Of CHl.lA YlSTA STATE OF CAl.F'OIIfIM FUDlHIS_MYOf_'"_ ATTI1EtcllIlOF' 0"a.D0<-N. IHBOOI(_PADE_DFt.W'SOf ASSESSIIEHT AND COMNUNm' FAamES DISTRICTS IN THE omc:t or THE COUN1Y RECOIIDER OF THE COUNTY OF SolIN 0IEt:0. ~ '"' :3-.) lX>UHIYRECllRllER COUN1Y or SN<I CEr:o STATE Of C#.l.JF'tlRrM SHEET 1 OF 1 ATTACHMENT 2 Cost Estimate The estimate of the fair and reasonable annual cost of the proposed maintenance services for Open Space Maintenance District No. 35 - Sunbow II including incidental expenses in connection with providing said services, and all other related costs is shown-iJi Table I below. The total annual cost is estimated to be $803,562 (1998 Dollars) and is based on build out of the Sunbow II community with all the facilities that will be maintained complete and in place. - TABLE 1 OPEN SPACE MAINTENANCE DISTRTCT NO. 35 - SUNBOW n SUMMARY OF FACILITY MAINTENANCE COSTS AT BUILD OUT MAINTAINED FAOLITY ESTIMATED llm:r COST PER TOTAl. COST OUANTITY UNITIYR PER YR 1. Street Medians and 640,863 Sq. Foot SO.295 SI89,0: Parkways 2. Landscaped and 2,548,817 Sq. Foot SO.205 S522,5( lIrigated Slopes 3. Natural nOD irrigated open space A Biological 1 Lump Sum S17,500 S17,5C -- Monitoring and Reporting B. Revegetated Non- 621,900 Sq. Foot $0.0217 S13,4~ Irrigated Slopes C. Native Open Space 5,176,670 Sq. Foot SO.oo844 $43,69 Land - . 4. Poggi Canyon 1 Lump Sum $2,000 S2,OO Drainage Channels and Basins 5. Telegraph Canyon I Lump Sum S1,350 S1,35 Drxinage Channel 6. Community Walls 16,824 Linear Feet SO.83 $13,96 . Total Cost 5803,56 Open Space Maintenance District No. 35 - Sunbow II /.3~?::> ATTACHMENT 3 CERTIFICATE OF COMPLIANCE WITII NOTICE REQUIREMENTS crrY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW 11]) STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA The undersigned, under penalty of perjury, CERTIFIES AS FOLLOWS: The undersigned is now, and at all times mentioned herein was, the duly appointed, qualified and acting CITY CLERK of the CITY OF CHULA VISTA, CALIFORNIA, and as such, accomplished the notice requirements in connection with the referenced Community Facilities District, as noted: BALLOT PRESENTATION The VOTER PACKAGE was presented, to all qualified electors within the boundaries of Community Facilities District No. 98-3 (Open Space ),.1aintenance District No. 35 [Sunbow m), said presentation being accomplished on the ?+h day of HUt] uc;f- ' 1998. EXECUTED this (f2+0 day of .4A~Uc;o. f ,1998, at Chula Vista, California. ~~C~~ CITY CLE CITY OF CHULA VISTA STATE OF CALIFORNIA ! 3~1 CERTIFICA TE OF ELECTION OFFICIAL AND STATE.ME!\'T OF VOTES CAST ATTACHMENT 4 STATE OF CALIFORNIA ) COID."'TY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DO HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACll.ITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW TI]) SPECIAL ELECTION in said City, held August 11, 1998. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said District in said City, and the whole number of votes cast for the Measures in said District in said City, and the totals of the respective columns and the totals as shown for the Measures are full, true and correct. I. TOTAL NUMBER OF VOTES CAST: ff~0 ll. VOTES CAST ON PROPOSmON A: YES ."",1)'(, NO n ill. VOTES CAST ON PROPOSmON B: YES .-;. ~ C, NO 0 ,1998. WITNESS my hand and Official Seal this r J -n EXHIBIT "A" /:3-'6 A-I ATTACHMENT 5 RESOLUTION NO. 19130 RESOLCTION OF THE CITY COLJl"CIL OF THE CITY OF CH1.;-LA VISTA ESTABLISHING COM.lvfl.JN1TY FACILITIES DISTRlCT NO. 93-8 (OPEN SPACE M.t>JNTENA"iCE DISTRlCT NUMBER 35 (SUNBOW II) Al\!D AlITHORIZING THE SUBMITTAL OF LEVY OF A SPECLtU. TA_X H1EREIN TO FINA....l\JCE CERTAIN SERVICES TO THE QU:\LIFIED 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 proce"'...d with the establishment of.a community facilities district, pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of1982" , being Chapter 2.5, Pan 1, Division 2, Title 5 of tile Government Code of the Stare of California (the' Act") and the City of Chula Vista Community Faciiities District Ordinance enacted plh-suant 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 refeIT"'...d to collectively as the "Community Facilities District Law"). Such Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MATh'TE.l\JANCE DISTRICT NO. 35 [SUNBOW ll)) (the "District'); and, WHEREAS, this legislative body has further dedared its intent that the authorized publlic services be fmanced througiJ the levy of special taxes; and, WHEREAS, at any time before or after the formation of the District, this legislative body may a=pt 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 ll"a-reement 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 rare and method of apporJonment 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; and, WHEREAS, inasmuch as there are less than twelve (12) registered voters residing within the territory of the District, and have been 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: RECITALS SECTION 1. The above recitals are all true and correct. /3,-<J PROTESTS 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. FINAL REPORT SECTION 3. The Community Facilities District Report, as now submitted, shall stand as the Community Facilities District 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. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m)". BOUNDARIES OF DISTRICT . SECTION 5. The boundaries and parcels of land in which the public service and public facilities 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: AIl property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m), 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 31I 1 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 3'1 of Book 3;< 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: Maintenance of medians, parkways, landscaped and irrigated slopes, natural non- irrigated open space, certain drainage channels, detention basins, walls and fences, trails and street trees, including furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of any improvement ordappurtenant 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, I J,/t?J 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. For a full and complete description of the public services, reference is made to the fmal Community Facilities District Report, a copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to said Community Facilities District 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 for the authorized public services. Said special tax shall be utilized to pay for authorized services. 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. This legislative body further authorizes that special taxes may be prepaid and satisfied pursuant to the provisions for the prepayment of special taxes set forth in the Special Tax Formula. 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: /'3-/1 FINANCE DEPARTMENT CITY OF CHULA VISTA 276 FOURTH AVENUE CHULA VISTA, CA 91910 FINDING OF VALIDITY SECTION 9. It is hereby further determined by this legislative body that all proceedings prior hereto were valid and taken in conformity with the requirements of the law, and specifically the provisions of1he Community Facilities District Law, and that this fmding and determination is made pursuant to the provisions and authorization of Section 53325.1 of the Government Code of the State of California. APPEALS AND INTERPRETATION PROCEDURE SECTION 10. Any landowner or resident who feels that the amount or formula of the special tax 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, meet with the applicant. If the fmdings of the Appeals Board verify that the tax should be modified or changed, a recommendation at that time will be made to the City Council and, as appropriate, the special tax levy shall 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 11. 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 (1) 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 relating to the incurring of a bonded indebtedness and establishing 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 11 TH DAY OF AUGUST, 1998, 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. I '3 - I 7- BALLOT SECTION 12. Tne ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: PROPOsmON A Shall COMMUNITY FACIUTIES DISTRICT NO. 98-3 (OPEN SPACE MAlNTENANCE DISTRICT NO. 35 rSUNBOW m) be authorized to levy special taxes pursuant to the rate and method of apportionment of special taxes set forth in Resolution No./'f/3D to fmance authorized services? PROPOsmON B Shall COMMUNITY FACIUTIES DISTRICT NO. 98-3 (OPEN SPACE MAlNTENANCE DISTRICT NO. 35 rSUNBOW m) establish an Article XllIB appropriations limit equal to $1,000,000? VOTE SECTION 13. 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 14. 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. Son and assemble the election material and supplies in preparation for the canvassing of the returns. /3, /3 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: ~ () J · ~XJ1/JjAU)~ -fV-r Jo I. Lippitt Difector of Public Works ~~~ ~, ~Kaheny ~ / . Attorney / / j~I'I ,/ ORDINANCE No.2 74-5 .- 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 "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"). This Community Facilities District is designated as COMMUNITY F ACILfITES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. :)5 [SUNBOW II]) (the "District"). BE IT ORDAINED AS FOLLOWS: SECTION I. The above recitals are 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 only 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 collected in the same manner as ordinary ad valorem taxes are collected 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 continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in 1 ~ /j-! ~1 , ~ 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 1 ~/3 --2--- ,,-<.\o~ ORDINANCE NO. 2747 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) : 1 y /8-3 ~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 thereof on the following dates, to-wit: 9/5 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 5 day of September ,19 ~ Signature_ c - " . I "- PRINCIPLE CLERK ) f 13-1 1!...2 /3 --,3 - 1.1J/} P.1tt$G .... .).. I.... ... ./.. .. This space is for the County Clerk's filing stamp Proof of Publicaton of: CV 11405 -------------------------------------------------- SfCOIVD /2.. ? J / ? Rf.4DI/v,G ORDINANCE NO. 7'cX. -4/VD -4DQ AN ORDINANCE OF THE CITY OF CHULA VISTA CITY COUNCIL AMENDING 'PrION THE ZONING MAP OR MAPS ESTABLISHED BY SECTION 19.18.010 OF THE CITY OF CHULA VISTA MUNICIPAL CODE BY REZONING A PORTION OF PARCEL LOCATED AT 619 EAST MANOR AVENUE AND 600 BROADWAY AVENUE FROM R-l (SINGLE FAMILY RESIDENTIAL) TO CT (COMMERCIAL THOROUGHFARE) WHEREAS, a duly verified application for a rezone was filed with the City of Chula Vista Planning Department; and WHEREAS, said application requests approval to rezone a portion of a parcel from R1 to CT for purposes of incorporating said areas to bring into cornformance with the Zoning Ordinance and Zoning Map, Chapter 19, Section 19.18, prior to processing parcel map as depicted on Attachment 1 attached hereto; and WHEREAS, the Environmental Review Coordinator has determined that the proposed project is a Class 5 exemption; and WHEREAS, on June 24, 1998 the City Planning Commission voted 5-0-1-1 to recommend that the City Council approve the rezoning in accordance with Resolution PCZ-98- 01; and WHEREAS, the City Clerk set the time and place for a hearing on said rezoning application and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners within 500 feet of the exterior boundaries of the property at least ten days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely on August 11,1998, at 7:00 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 ofChula Vista does hereby find, determine, and ordain as follows: SECTION 1: the City Council hereby fmds that the rezoning provided for herein is consistent with the City of Chula Vista General Plan and that the rezoning is supported by public necessity, convenience, general welfare and good zoning practice. SECTION 11: that the portion ofland areas at 619 East Manor, as shown on Attachment 1 is hereby rezoned from R1 to CT. INFORMATION PACKET SCANNED AT FIRST READING OF THIS ORDINANCE ON: RUG- /1 1998' 13-/-/ SfCOND READ ORDINANCE NO. J. 7?1 .J ING A.ND ADo 'PliON AN ORDINANCE OF THE CITY OF CHULA VISTA CITY COUNCIL AMENDING THE MUNICIPAL CODE, TITLE 19, CHAPTER 19.62.100 CHANGING THE TIME PERIOD FOR "TEMPORARY"P ARKING FROM SIX MONTHS TO 12 MONTHS AND ADDING THE PAVEMENT STANDARDS FOR PRIVATE VEIDCULAR AREAS. WHEREAS, the City initiated this proposal of the Zoning Code text amendment of Chapter 19.62.100, addressing Temporary Parking time limitation from six months to 12 months and inclusion of the adopted Pavement Standards for Private Vehicular Areas and hereby referred to as Sections 19.62.100(a) and 19.62.100(b) respectively; and WHEREAS, this amendment brings the changes into conformance with the City of Chula Vista Zoning Code; and WHEREAS, this amendment brings the adopted policy and the City's parking surfacing requirements into compliance with the City of Chula Vista Standard Special Provisions, and State and Federal regulations per the Standard Specifications for Public Works Construction, and San Diego Regional Supplement Amendments; and WHEREAS, the Environmental Review Coordinator determined that the Project is a Class 5 Categorical Exemption pursuant to the California Environmental Quality Act; and WHEREAS, on June 24,1998 the City Planning Commission voted 6-0-1 recommending that the City Council approve the Zoning Code text amendment to Section 1 9.62.1 OO(a) and (b) in accordance with Resolution No. PCA-98-06; and WHEREAS, the City Clerk set the time and place for a hearing on said Zoning Code Amendment application and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city least ten days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely on August 11, 1998, at 7:00 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 ofChula Vista does hereby find, determine, and ordain as follows: SECTION 1: The City Council hereby [rods that the Zoning Code amendment provided for herein is consistent with the City of Chula Vista General Plan and that the amendment is supported by public necessity, convenience, general welfare and good zoning practice. 13- 2-1 INFORMATION PACKET SCANNED AT FIRST READING OF THIS ORDINANCE ON: t<'}Vtf- II l&f&fg, ORDINANCE NO. StcOND rrE:AD/~ J ?'/'I G AND ADo 'PilON AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE CHULA VISTA MUNICIPAL CODE BY ADDING CHAPTER 2.17 ESTABLISHING THE PLANNING AND BUILDING DEPARTMENT The City Council of the City of Chula Vista does hereby ordain as follows: SECTION I: The Chula Vista Municipal Code is hereby amended to add Chapter 2.17 to read as follows: Chapter 2.17 PLANNING AND BUILDING DEPARTMENT Sections: 2.17.010 2.17.020 2.17.030 2.17.040 2.17.050 Established-Scope. Effect on existing employees Abolition of Position of Director of Building and Housing and designation of Position of Building Official. Director-Limitation on authority and duties. Director-Duties and responsibilities. 2.17.010 Established-Scope. There is established a planning and building department which shall combine the services and facilities of the existing planning department and department of building and housing. The planning and building department shall prepare and maintain the City's General Plan, guide its implementation and ensure buildings and facilities are constructed and maintained in accordance with adopted fire and life-safety codes under the direction of a director of planning and building, and as hereinafter provided. 2.17.020 Effect on existing employees. No employee who is presently employed and classified in the presently existing planning department and department of building and housing shall be penalized in any way by reason of the adoption of this chapter. , INFORMATION PACKET SCANNED AT FIRST READING OF THIS ORDINANCE ON: flu&- /1 /"1Qg J3-3-J RESOLUTION NO. I 'f I ,cj 6' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING THE RESULTS OF THE ELECTION FOR COMMUNITY FACILITIES DISTRICT (CFD) NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT #35 [SUNBOW II]) WHEREAS, the CITY COUNCil. of the CITY OJ:: CHULA VISTA, CALIFORNIA (the "Legislative Body"), has previously declared its intention and held and conducted proceedings relating to the levy of special taxes in a community facilities district, as authorized 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"), said Community Facilities District designated as COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m) (the "District"); and, WHEREAS, this Legislative Body did call for and order to be held an election to submit to the qualified electors of the District a proposition relating to the levy of special taxes and the establishment of an appropriations limit for such community facilities district; and, WHEREAS, at this time said election has been held and the measures voted upon and each such measure did receive the favorable 2/3' s vote of the qualified electors, and this legislative body does desire to declare the favorable results of the election in accordance with. the provisions of the Elections Code of the State of California. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m), AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. This legislative body hereby receives and approves the CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST, as submitted by the City Clerk, acting in her capacity as the Election official, said Statement setting forth the number of votes cast in the election, the measures voted upon, and the number of votes given for and/or against the measures voted upon. A copy of said Certificate and Statement is attached hereto, marked Exhibit "A", referenced and so incorporated. /3/J -/ I SECTION 3. The City Clerk is hereby directed, pursuant to the provisions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said STATEMENT OF VOTES CAST. PREPARED BY: APPROVED AS TO FORM BY: ~~1"-- c &'-1/U-f.-~ John eny (j City Attorney John P. Lippitt Director of Public Works /31+ ~~ 2 CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DO HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II)) SPECIAL ELECTION in said City, held August 11, 1998. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said District in said City, and the whole number of votes cast for the Measures in said District in said City, and the totals of the respective columns and the totals as shown for the Measures are full, true and correct. I. TOTAL NUMBER OF VOTES CAST: 6~;;' II. VOTES CAST ON PROPOSmON A: YES .-'J~(. NO n m. VOTES CAST ON PROPOSmON B: YES 6'. t) e- NO 0 WITNESS my hand and Official Seal this /!} t k day of ,1998. ELECTION OFFICIAL CITY OF C A VISTA STATE OF CALIFORNIA EXHIBIT "A" /3tt-3 A-I ~~~~ CJj A7~S F /J~~ ~ C ~~~ p~/6 {lfC/V ~ ~ . accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the legislative body of the local Agency in the manner provided in Section 53330.5 of said Government Code. SECTION 7. This Ordinance and special tax shall be applicable for the referenced District, as well as any future annexations. SECTION 8. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of Chula Vista, California, on September 1 , 1998; AND THEREAFTER ADOPTED at a regular meeting of the City Council of the City of Chula Vista, California, held on the day of , 1998, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Presented by Approved as to form by John P. Lippitt, Director of Public Works . ,/t\~^ / .-' ',~ / / (4- John Kaheny, City Attorney 2 ( 3}3- ::2-. EXHIBIT A -' COMMUNITY FACILITIES DISTRICT NO. 98-3 SUN BOW II OPEN SPACE MAINTENANCE DISTRICT Facilitv Maintenance Costs and Spread Method%av The estimated annual budget amounts for each of the types of facilities that will be maintained, operated, and managed and to which services will be furnished must be distributed to the parcels within the boundary of the District based on an equitable methodology. There are a number of different methods for apportioning the costs including size of parcel, number of people being served, traffic trips generated by parcel, etc. The method that most equitably distributes the costs taking into account the type of facility and how it serves the population is the method that is used. In each case, the method that is used is converted to a basic unit called an Equivalent Dwelling Unit IEDUl. The single family detached dwelling unit is one EDU and other land uses are a ration relating to this base measure. The value of an EDU is based on EDU factors for which support data is available from the City of Chula Vista and/or SANDAG. For the Sunbow II Open Space District. two spread methods were utilized to distribute the costs of the services provided. For the Landscaped Medians and Parkways. the spread method utilized was the Trip Generation Method. For all other types of services, the Population Method was utilized. Proposed Maximum Special Tax Rates The rate of special tax levy broken down by land use for this District for a typical dwelling matrix is as follows: Land Use Cost/EDU/Year Cost/Acre/Year Single Family Detached $350 N/A Multi-family $340 N/A Commercial N/A $3,040 Industrial N/A $2,720 Undeveloped Land N/A $2,470 Public Parcels - (EXEMPTI N/A N/A ! 3B- 3 ! D'TJ Item Title: Submitted by: Approved by: Council Agenda Statement Item: !!I Meeting Date: September 1, 1998 A. Public Hearing - To Consider Granting an Exclusive Gas and Electric utility Franchise to SDG&E t4.7'1fp B. Ordinance No. .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 . ~*'14'1 C. Ordinance No. Granting to San Diego Gas & Electric Company, .lts Successors and Assigns, the Franchise to Install, Maintain and Use Pipes and Appurtenances for 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 sid Morris, Assistant City Manager . Glen R. Googins, Assistant city Attorney~\ ^ David D. Rowlands, Jr., City Manage~ I?O~J 4/Sths Vote: Yes___No~) The City's gas and electric utility franchises with San Diego Gas and Electric (SDG&E) expired on November 30, 1997. The city Council approved two extensions of the franchise, most recently until June 30, 1998. City and SDG&E staff have now concluded negotiations for a five-year renewal of the franchise. This item requests that the city Council approve the proposed franchise on the terms and conditions described herein, below. RECOMMENDATION: That Council approve the ordinances granting five year gas and electric utilities franchises to SDG&E from July 1, 1998 through June 30, 2003. N/A BOARD/COMMISSION RECOMMENDATION: /4-/ If Meeting Date: 9/1/98 Page 2 DISCUSSION: SDG&E has held the city's gas and electric franchise since 1972. The initial 25 year term has now expired. City staff and SDG&E representatives have negotiated the terms for an extension of the gas and electric franchises through June 30, 2003. A summary of the proposed terms and conditions follows: 1. Franchise Fee: levels of 1.1% gross receipts Franchise fees will remain at their present of gross receipts for electricity and 2% of for gas. These rates are comparable to those charged by other cities in SDG&E's service area, with the exception of the City of San Diego which charges 3% of gross receipts for its electric franchise. Notably, however the Public utilities commission (PUC) requires that 1.9% of such fee be passed through directly to City of San Diego ratepayers as a surcharge on their electric bills. 2. Term: From July 1, 1998 through June 30, 2003. A five year term was agreed to by the parties as a "bridge" agreement during which deregulation of the electric industry will be fully implemented. staff evaluated the possibility of a longer term franchise but felt that this relatively short term will allow both parties to better evaluate the impacts of deregulation on franchise agreements while at the same time afford some stability to the parties and the city's ratepayers. In 2003, when the impacts of deregulation will be more clear, city staff believe we will be in a better position to evaluate what additional substantive changes or extensions would be appropriate, who else might better provide such services, or even whether or not the City itself should consider taking over the distribution of gas and/or electricity within its territory. 3. utility Users Tax (UUT): To the extent allowed by law where SDG&E is providing the billing services, SDG&E shall agree to collect UUT from other electricity providers, for remittance to the City. 4. System Enhancements: SDG&E shall include Chula vista in early implementation of system-wide enhancements (e.g. infrastructure upgrades and ancillary services) to the /I.('~ Meeting Date: 9/1/98 Page 3 extent it is consistent with SDG&E's policy to prioritize and construct such system enhancements based on need. 5. Franchise Fee Applicabilitv: SDG&E shall not take a position to oppose the applicability of franchise fees to "direct access" electric or gas sales. SDG&E shall implement the state mandated surcharge provisions and remit surcharges collected to the City. This provision is intended to assure that the city collects a franchise fee equivalent "in lieu" payment from gross revenues of "direct access" energy provider's using SDG&E's distribution system in the city's right of way. 6. Customer Service: SDG&E shall provide customers with education materials regarding utility restructuring, options for selection of an energy retailer, service options, "slamming" (i.e. unauthorized switching of energy service providers), default provider regulations, the City's role in the deregulated industry and related energy issues. 7. Rule 20A - Underqroundinq: SDG&E commits to spend, over the next 6 years, at least $13.141 million dollars towards the completion of specific pending and proposed overhead utility under-grounding projects. (These projects are identified on Exhibit A attached hereto.) If these projects cost more than $13.141 million, SDG&E must still complete them. If these projects cost less than $13.141 million, SDG&E commits to spend the balance on additional undergrounding projects identified by the City. In addition, new allocations of utility undergrounding monies, that may be drawn down by the City for future undergrounding projects (but which SDG&E is not obligated to spend during the term of the franchise), shall be made at the rate of $2 million per year. This item became the focus of franchise negotiations. The City felt that SDG&E had not been as committed as they should have been under previous agreements to implement utility under-grounding projects within the City. This provision basically commits SDG&E to spend the City's existing "allocation balance" (accrued over the previous 10 years) to complete high priority under-grounding projects over the next 6 years. /4.3 Meeting Date: 9/1/98 Page 4 The usefulness of the new allocations of $2 million per year is unclear at this point. SDG&E has not committed to spend the monies during the term. And the useability of the monies (or the continuing existence of the undergrounding program beyond the franchise term) is unclear. However, while SDG&E is under no obligation to do so, the City hopes to work with SDG&E during the Franchise term to use these monies to further accelerate the agreed upon under-grounding program, or to convert unspent monies to cash at some agreed upon rate. SDG&E has previously approved an approach where cities could "cash out" unused under-grounding allocations at the rate of 8 cents on the dollar. 8. Economic Development: SDG&E shall agree, to the extent recovery of the expense through rates is allowed by CPUC Regulations, 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, or offering of power incentives to companies that meet city- defined economic development or employment criteria. The actual franchise ordinances containing these terms (and other general terms and conditions kept and/or updated from the previous franchise agreements, are attached to this report as Exhibits B (gas) and C (electric). side AGreement ReGardinG IDBs. Another agreement to be considered concurrent with the proposed final adoption of the Franchises on September 15, 1998 is an exclusive right for the City to process SDG&E's industrial development bond issues and re-financing. 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 up front (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 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. /1- '! Meeting Date: 9/1/98 Page 5 FISCAL IMPACT, If the City Council elects to approve the proposed franchise, there will be the following projected fiscal impacts: 1. Franchise Fees. The city currently receives approximately $1 million per year in gas/electric franchise fees. Under the proposed franchise, the City's franchise fee rate will remain the same. However, due to the reduced prices brought on by deregulation, based on a recent regional government study, it is projected that through 2002, the City's franchise fees may decrease by 4% ($40,000) per year. After 2002, due to additional price reductions, these revenues may decrease by up to 27% per year. In 2002, the City's franchise collections should drop from approximately $1,054,500 to $891,000 --- a decrease of $163,500. However, city energy costs should drop at the same time by approximately $463,000. Comparing these figures to 1997 totals, the city would at this point be receiving $365,000 in net new revenues. A maxtrix of this information is set forth below: Franchise Fee City Elec. Balance Change Revenues Expenses Versus 1997 1997 $ 946,559 -$1,724,561 -$778,002 N/A 2001 $1,054,533 -$1,766,963 -$712,430 +$ 65,572 2002 $ 891,034 -$1,303,772 -$412,738 +$365,264 Change -$ 163,499 +$ 463,191 After 2002, franchise fees would continue to increase in relation to new development. City electric costs would rise by about 1.77% per year, with additional increases as major new facilities are built (e.g. Rancho del Rey library, new fire stations and a new police facility) . staff projections show that the combination of franchise fees and city electric cost savings should continue to provide a net gain over 1997 levels. However, as development slows and approaches build out after 2015, franchise fee revenues will become flat. If city electric costs continue to rise, there may eventually be a decrease in net revenues as compared to the current year. It is more likely that these costs would flatten with build out and the drop in net revenues would not come to pass. Given the number of years before this would occur, these projections would need to be updated as actual data becomes available. /~-s- Meeting Date: 9/1/98 Page 6 2. utility User's Tax. The City currently receives approximately $1,707,930 per year in utility User's Tax (UUT) revenues. city approval of the gas and electric franchise would not change the City's UUT which is imposed on gas and electricity users, not providers like SDG&E. since the Utility Users Tax is based on the number of kilowatts and therms used rather than their price, UUT for electric and gas service should continue to increase at its historical rate (approximately 2% per year) as the city continues to grow.' Using these figures and the City's projected EDU absorption totals, and even allowing for an increase in City energy consumption of 2.5% per year (generally equating to the increase in EDUs) , Chula vista's combined franchise fees and utility savings should remain in a positive position throughout the electric industry restructuring process. 3. IDB Revenues. 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. H:\shared\attorney\sdge.wp 'For Council's information the telephone portion of UUT has declined in recent years due to the number of new companies and technologies (e.g. cellular, PCS) which have so far not been subject to the tax. /.,y- ~ - CITY OF CHULA VISTA UTILITY UNDERGROUNDING PROGRAM UTILITY UNDERGROUNDING PROJECTS TO BE COMPLt: I :::D BY END OF 1999: DISTRICT STREET LIMITS NUMBER E Street Broadway to T oyon Lane 123 Main Street IndustMal Boulevard to Third Avenue 126 Clay Lakes Road Ridgeback to Apache DMve 129 Palomar Street 1-5 to IndustMal Boulevard 127 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE C.OMPLETED IN 2000: ESTIMATED STREET LIMITS COST Broadway "C" Street to "E" Street $513,000 Fourth Avenue "H" Street to "L" Street $1,000,000 Oranoe Avenue Palomar Street to Fourth Avenue $440,000 TOTAL $1,953,000 FUTURE UTILITY UNDERGROUNDlNG PROJECTS TO BE COMPLETED IN 2001: STREET kes cad ESTIMATED COST , 0, $2,250,000 LIMITS anrta Dad to amino el rro rande TOTAL FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2002: ESTIMATED STREET LIMITS COST Fourth Avenue OIL" Street to Orange 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 Dtay Lakes Road Camino Del Cerro Grande to Ridaeback Road $2,100,000 TOTAL $2,100,000 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2004: I ESTIMATED STREET LIMITS COST 'J"Street East af Broadway to Third Avenue I $700,000 'J" Street East of Nacion Avenue to West of LaM Lane $290,000 'J" Street Third Avenue to First Avenue $475,000 TOTAL $1,465,000 (home\...\aovplan'wudist\UUDSCHEO.WB1) JULY 27.1998 11-7 EXHIBIT A to Staff Report ELECTRIC FRANCHISE ORDINANCE NO. d.. 7 '! 0 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 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 1 It.t8-1 (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 ,..,. G-cl 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. (hI 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. (al Franchise Fees. The grantee of said franchise 3 I*G-.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 for 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 ,..,. G-'" 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 I t.f. B-~ (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 gr~nting 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 I &of. -B G, (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 Projects") . (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, 1994. 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 , .., 6- 1 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 with 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 amounts as Grantee's only commitment to spend or otherwise dispose of 20A funds during the terms 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. 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 8 , &.I-G-O 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. 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 9 ,&.1 e,-q 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 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, 10 , &rf. G-'O " , 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. Presented by Approved as to form by sid Morris, Assistant city Manager , H:\shared\attorney.sdge.frn 11 ,..,. a-II ). , EXHIBIT A TO ELECTRIC FRANCHISE AGREEMENT CITY OF CHULA VISTA UTILITY UNDERGROUNDING PROGRAM UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED BY END OF 1999: DISTRICT STREET LIMITS NUMBER EStreet Broadway to T oyon Lane 123 Main Street Industrial Boulevard to Third Avenue 126 :)tay 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 "C" Street to "E" Street $513,000 Fourth Avenue "H" Street to "L" Street $1,000,000 ::lranoe Avenue Palomar Street to Fourth Avenue $440.000 TOTAL $1,953,000 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2001: ESTIMATED STREET LIMITS COST Jlay lakes t(oa tjonlta t(oaa to Liamlna uel l..Ierro brande ~2,,"O,Ouu TOTAL $2,250,000 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2002: ESTIMAI ED STREET LIMITS COST Fourth Avenue "L" Slreet to Orange Avenue $1,150,000 'Lit Street Monserate Avenue to Nacion Avenue $340,000 'L"Street Broadway to Third Avenue $700,000 TOTAL $2,190,000 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2003: ESTIMATED STREET LIMITS COST Olay Lakes Road Camino Del Cerro Grande to Ridgeback Road $2,100,000 TOTAL $2,100,000 FUTURE UTILITY UNDERGROUNDING PROJECTS TO BE COMPLETED IN 2004: E::; IIMATED STREET LIMITS COST 'J" Street East of Broadway to Third Avenue $700,000 'J"Street East of Nadon Avenue to West of Lori Lane $290,000 'J" Street Third Avenue 10 First Avenue $475,000 TOTAL $1.465,000 (home\...\advplan\uudist\UUDSCHED.W81) JULY 27,1998 1-+6-'~ - .J EXHIBIT B TO ELECTRIC FRANCHI AGREEMENT UTILITY UNDERGROUNDING PROGRAM NEW PROJECTS TO ADD TO THE UTILITY UNDERGROUNDING LIST lENGTH ESTIMATED STREET LIMITS (Miles) COST "J" Street First Avenue to e/o Nolan Avenue 1.08 $950,000 "C"Street Broadway to Fourth Avenue 0.50 $625,000 "D"Street West End to Second Avenue 1.34 $1,680,871 "F" Street Second Avenue to Hilltop Drive 0.50 $625,000 'G" Street West End to Hilltop Drive 1.86 $2,324,811 '1" 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 $1,775,568 Naples Street Industrial Blvd. to e/o Oleander Avenue 3.26 $4,071,970 Oxford Street West End to Broadway 0.32 $402,462 w/o Fifth Avenue to Neptune Drive 2.20 $2,746,212 Fifth Avenue North End to "H" Street 1.40 $1,751,894 ~-- .' "I" Street to Orange Avenue 1.89 $2,367,424 Second Avenue n/o Bavview Way to "l" Street 2.56 $3,196,023 Naples Street to OranQe Avenue 0.97 $1,207,386 First Avenue Flower Street to "l" Street 1.93 $2,414,773 ~,,~,.. Naples Street to South End 1.00 $1,254,735 TOTAL 26.31 $32,484,091 NOTE: VERIFICATION OF COST ESTIMATES TO BE APPROVED BY SDG&E AT A LATER DATE. OUR COST ESTIMATES ARE BASED ON $1,250,000 PER MilE. (H:\HOME\ENGINEER\ADVPLAN\UTllUND.WB1 ) ,.... B-1..3 GAS FRANCHISE ORDINANCE NO. _ ~ 7 q 7 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 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) : 1 III ~ - I (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 ,&.4 C-~ 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 for 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 ,.., C-~ 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 ,... c- c..J 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 ,"c-~ (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 '4C-~ 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. ACOUISITION 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 'f..#.C-7 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. Presented by Approved as to form by sid Morris, Assistant city Manager " h:\SHARED\ATTORNEY\SDG&E.GAS 8 lt4e-~ COUNCIL AGENDA STATEMENT ItemL.5 Meeting Date 09/1/98 ITEM TITLE: Public Hearing regarding the adjustment of the Telegraph Canyon Sewer Development Impact Fee for gravity flows Resolution/9/5?APproving an amendment to the Master Fee Schedule for the Telegraph ~~n Sewer Development Impact Fee as provided for in Ordinance No. 2533 SUBMITTED BY: Director of Public worksf REVIEWED BY, Ci<y "'""''''DR , ~ (4ISth. Vo", y" ~ NoX) On October 27,1992, Council adopted Ordinance 2533 establishing the Telegraph Canyon Sewer Development Impact Fee. This fee was established to provide sewer improvements within the Telegraph Canyon Sewer Basin to handle the incremental increases in sewage flow anticipated within the Basin. The established fee is $184 per Equivalent Dwelling Unit (EDU). It is time to revisit this fee and update it in accordance with the Ordinance which requires inflationary adjustment based on the Engineering News Record (ENR) "Construction Cost Index". Any increase in this fee must have Council approval. The subject resolution, if approved, will increase the fee to $216.50 per EDU. It is important to note that this fee increase is necessary to cover cost increases to build the originally proposed facilities. RECOMMENDATION: That the Council hold the public hearing and approve the resolution adjusting the Telegraph Canyon Sewer Development Impact Fee as provided in Ordinance No. 2533 to $216.50 per EDU. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: In 1990, the engineering firm Willdan and Associates was hired to prepare a "Basin Plan" for the Telegraph Canyon Sewer Basin. The Basin Plan included estimates of ultimate sewer flows anticipated within the basin, recommended improvements to handle the increases of sewage flow and established a fee payable by all future dwelling units discharging into the basin and benefitting from the trunk sewer improvements. Ordinance No. 2533 established the Telegraph Canyon Sewer Basin Development Impact Fee to finance the necessary Improvements. The fee is required to be paid upon the issuance of building permits. /s-!l-/ Page 2, Item Meeting Date 09/1/98 /~ Section 7 of the Ordinance included the provision that: The initial amount of the fee shall be $184 per EDU. The City Council shall annually review the amount of the fee. The City Council may adjust the amount of the fee as necessary to reflect changes in the cost ofthe facilities as may be reflected by such index as the Council deems appropriate, such as the Engineering News Record Construction Index, or such other basis; or changes in the type, size, location or cost of the facilities to be financed by the fee, changes in land use on approved tentative maps or specific plan amendments, and upon other sound engineering, financing and planning information. Adjustments to the above fee may be made by resolution amending the Master Fee Schedule. The surge of development within the basin, and the proportionate increase in sewage during the past year, has prompted staffto undertake a more comprehensive review of the fee beyond its adjustment due to inflation. However, we have concluded that no increase in the fee would be justified beyond that due to inflation. Since it is anticipated that the trend of development will be maintained for at least the next five years, Staff will continue to annually evaluate the need to adjust the fee. The ENR Construction Cost Index is a monthly composite figure of the cost of various construction material and labor costs as measured by Engineering News Record magazine. As such, it is a much more accurate predictor of the effects of inflation on a typical construction project than the CPI or other measure of inflation. . The following shows the methodology in adjusting the fee based on the ENR index: ENR Construction Cost Index - August, 1992 ENR Construction Cost Index - July, 1998 Increase in Index (5921.00 + 5032.16) Revised Fee ($184.00 x 1.1766) 5032.16 5921.00 1.1766 $216.50 This represents an increase of 17.66%. All affected property owners within the basin boundary have been notified of tonight's meeting. FISCAL IMPACT: An increase of$32.50 per EDU within the current boundary of the Telegraph Canyon Sewer Basin with an estimated 8340 EDUs remaining to be developed will generate an additional $271,050 for sewer improvements within the Basin at ultimate build out. The DIF revenue account has so far collected $205,528 for these improvements. The total estimated cost of these improvements is $2,011,328 (based on July, ] 998 ENR Index), including funds for administration, design and contingencies. The improvements consist of over] 5,000 feet of new sewer maills. Attachments: 1) Ordinance No. 2533 2) Plat showing District boundary Ho\HOME\ENGINEERIAGENDA \ TCSEWDIF .DCD /511iL Dept. File: 0790-85-ST002 ,. " ORDINANCE NO. 2533 AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA ESTABLISHING THE TELEGRAPH CANYON SEWER DEVELOPMENT IMPACT FEE TO PAY FOR PARALLEL SEWER IMPROVEMENTS AS A CONDITION OF ISSUANCE OF BUILDING PERMITS FOR CONSTRUCTION IN THE TELEGRAPH CANYON SEWER BASIN WHEREAS, the City's General Plan Land Use and Public Facilities elements require that adequate public facilities be available to accommodate increased population created by new development; and, WHEREAS, the Telegraph Canyon Sewer Basin (.Basin.) is that ar~a of land within the City of Chula Vista on which wastewater, if deposited in sufficient quantities, would flow downstream to a cODlllon point, which area is shown on the map attached hereto as Exhibit .A"; and, WHEREAS, on January 23, 1990 the City Council passed Resolution No. 15449 approving,the Telegraph Canyon Basin Sewer Monitoring and Gravity Basin Usage Agreement, which required the City to prepare the Telegraph Canyon Basin Improvement and Financing Plan. Said Basin Plan was to include an estimate of ultimate sewer flows anticipated within the Basin; recolllllend improvements to handle the incremental increases of sewage flow anticipated within the Basin; and establish a fee payable by all dwelling units discharging into the Basin and benefiting from trunk sewer improvements; and, WHEREAS, on July 24, 1990 the City Council passed Resolution No. 15760, approving an agreement between the City of Chula Vista and Willdan Associates for, preparation of said Basin Plan; and, WHEREAS, pursuant to said agreement, Willdan Associates have prepared said Basin Plan which is contained and more fully articulated in a document entitled: "Telegraph Canyon Sewer Basin Improvement and Financing Plan" dated July 31, 1992 ("Original Plan") and the subsequent addendum entitled "Addendum to Telegraph Canyon Sewer Basin Plan" dated September 25, 1992 ("Addendum"), which documents are incorporated herein by reference ("Basin Plan"); WHEREAS, the Basin Plan has determined that new development within the Telegraph Canyon Sewer Basin will create adverse impacts on the City's existing sewer facilities--to wit, that the sewage expected to be generated from new development within the Basin will exceed the capacity of the current sewer system to handle said additional sewage--which must be mitigated by the financing and construction of certain sewer facilities identified in this ordinance; and, WHEREAS, sewer improvements and a fee to be levied on new developpient in the Telegraph Canyon Sewer Basin have been justified in the Basin Plan;'and, WHEREAS, developers of land within the City should be required to mitigate the burden created by development through the construction or improvement of sewer facilities within the boundaries of the development, the construction or improvement of sewer facilities outside the boundaries of the development which /5~-3 ~#"/ Ordinance No. 2533 . Page 2 Jre needed to provide service to the development in accordance with the City standards and the payment of a fee to finance a development's portion of the total cost of the public facilities; and, WHEREAS, all development within the City contributes to the cumulative burden on various sewer facilities in direct relationship to the amount of population generated by the development or the gross acreage of the commercial or industrial land in the development; and, WHEREAS, on September 22, 1992 the Ci ty Counci 1 passed .Reso 1 uti on No. 16819 setting a public hearing to approve the Telegraph Canyon Sewer Basin Plan and establish the Telegraph Canyon Sewer Development Impact Fee; and, WHEREAS, on October 20, 1992 City Council held a duly noticed hearing at .which oral or written presentations could be made; and, WHEREAS, the City Council determined, based upon the evidence presented at the hearing, including, but not limited to, the Basin Plan and the various reports and other information received by the City Council in the course of its business, that imposition of the sewer facilities development impact fee on all developments within the Telegraph Canyon Sewer Basin east of Interstate 805 in the City of Chula Vista for which building permits have not yet been issued is necessary in order to protect the pub 1 i c safety and welfare and to ensure effective implementation of the City's General Plan; and, WHEREAS, the City Council has determined that the amount of the fee levied by this ordinance does not exceed the estimated cost of providing the public faci lities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOI.LOWS: SECTION I. Facilities. The facilities which are the subject matter of the fee herein established are fully described in the Original Plan at page 13 thereof, .and in the Addendum at page I, and the locations at which they will be constructed as are more fully described in the Ori gi na 1 Pl an on fi 1 e in the Offi ce of the Ci ty Engi neer at Plates 1 through 14 under the section thereof entitled "Improvement Locations", summaT1zed on the attached Exhibit "A" for the purposes of convenience only, all of which facilities may be modified by the City Council from time to time by resolution ("Facilities"). The City Council may modify or amend the list of projects herein considered to be part of the Facilities by written resolution in order to maintain compliance with the City's Capital Improvement Program or to reflect changes in land development and estimated and actual wastewater flow. ., /5111 SECTION I I. SECTION III. SECTION IV. SECTION V. SECTION VI. Ordinance No. 2533 Page 3 Territory to Which Fee Applicable. The area of the Ci ty o.f Chu 1 a Vi sta to whi ch the Fee herei n established shall be applicable shall be within the Telegraph Canyon Sewer Basi n east of Interstate 805. The Telegraph Canyon Sewer Basin is defined as that territory shown on a map on file in the Office of the City Engineer entitled "Telegraph Canyon Sewer Basin" and dated October 20, 1992, which area is shown for conveni ence only and wi thout 1 ega 1 preci si on on the attached Exhibit "B" ("Territory"). Establishment of Fee. A de vel opment impact fee ("Fee"), to be expressed on a per Equivalent Dwelling Unit ("EDU") basis, and payable on the issuance of a building permit for a development project within the Territory, is hereby established. Determination of Equivalent Development Units. Each single family detached dwelling or single family attached dwelling shall be considered one EDU for purposes of this Fee. Each unit within a multi-family.dwelling shall be considered .75 EDU. Every other commercial, industrial, non-profit, public or quasi-public, or other usage shall be charged at a rate calculated in accordance with the method for estimating EDUs set forth in the Master Fee Schedule for the purpose of estimated Sewer Capacity Charges currently located in Chapter XII ("Engineering - Sewer), Section A.3. or successor thereto, as same may from time to time be modified by the City Council. Time to Determine Amount Due; Advance Payment Prohibited The Fee for each development shall be calculated at the time of building permit issuance and shall be the amount as indicated at that time and not when the tentative map or final map was granted or applied for, or when the building permit plan check was conducted, or when application was made for the building permit. Purpose and Use of Fee. The purpose of the Fee is to pay for the p 1 anni ng, desi gn, construction, repair, maintenance, and/or financing (including the cost of interest and other financing costs as appropriate) of the Facilities, or reimbursement to the City or other third parti es for advanci ng costs actually incurred for p 1 anni ng, designing, constructing, or financing the Facilities. Any use of /5pS- 9rdinance No. 2533 . '"age 4 the Fee shall receive the advance consent of the City Council and be used in a manner consistent with the purpose of the Fee. SECTION VII. Amount of Fee. The initial amount of the Fee shall be $184 per EDU. The City Council shall annually review the amount of the Fee. The City Council may adjust the amount of this Fee as necessary to reflect changes in the costs. of the Facilities as IIIiIY be reflected by such index as the Counci 1 deems appropri ate, such as the Engineering-News Record Construction Index, or such other basis; or changes in the type, size, location or cost of the Facilities to be financed by the Fee, changes in land use on approved tentative maps or Specific Plan Amendments, and upon other sound engineering, financing and planning information. Adjustments to the above Fee may be made by resolution amending the Master Fee Schedule. SECTION VIII. Authority for Accounting and Expenditures The proceeds collected from the imposition of the Fee shall be deposited into a public facility financing fund ("Telegraph Canyon Sewer Basin Development Impact Fee Fund", or alternatively herein "Fund") which is hereby created and shall be expended only for the purposes set forth in this ordinanco. The Director of Finance is authorized tJ establish various accounts within the Fund for the Facilities identified in this ordinance and to periodically make expenditures from the Fund for the purposes set forth herein in accordance with the facilities phasing plan or capital improvement plan adopted by the City Counci 1. SECTION IX. , SECTION X. Fi ndi ngs. The City Council finds that collection of the Fees established by this ordinance at the time of the building permit is necessary to ensure that funds will be available for the construction of facilities concurrent with the need for these facilities and to ensure certainty in the capital facilities budgeting for growth impacted public facilities. ' ":...; Fee Additional to other Fees and Charges. The Fee estab 1 i shed by thi s secti on is in addi ti on to the requirements imposed by other City laws, policies or regulations relating to the construction or the financing of the construction of public improvements within subdivisions or developments. I Sft~ urOlnance No. Z~33 Page 5 SECTION XI. Mandatory Oversizing of Facility; Duty to Tender Reimbursement Offer. Whenever a developer of a development project is required as a condition of approval of a development permit to cause a portion of the sewer system which is the subject matter of a Facilities enhancement . planned for improvement under the Basin Plan .("Cri ti ca 1 Sewage Constri cti on Work") to be enl arged to accommodate the sewage flow created by the development, the City may require the developer to install the Facilities according to design specifications approved by the City, that being with the supplemental size or capacity in order to accommodate estimated ultimate flow as indicated in the Basin Plan and subsequent amendments. If such a requirement is imposed, the City shall offer to reimburse the developer from-the Fund either in cash or over time as Fees are collected. at the option of the City. for costs incurred by the developer for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Fee. The City may update the Fee calculation as City deems appropri ate pri or to maki ng such offer. Thi s duty to offer reimbursement shall be independent of the developer's obligation to pay the Fee. SECTION XII. Voluntary Construction of a Portion of the Facilities; Duty of City to Tender Reimbursement Offer. If a developer proposes to design and construct a portion of the Facilities in conjunction with the prosecution of a development project within the Territory. or is required by Section 11 "Mandatory Oversizing" to design and construct a portion of the Facilities ("Work"). the City shall offer to reimburse the developer from the Fund either in cash or over time as Fees are collected, at the option of the City, for costs incurred by the developer for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Fee. SECTION XIII. Procedure for Entitlement to Reimbursement Offer. The City's duty to extend a reimbursement offer to a developer pursuant to Section 11 or 12 above shall be conditioned on the developer complying with the terms and conditions of this section: a. Wri tten authori zati on shall be requested by the developer from. the City and issued by the City Council by written resolution before deve 1 oper may incur any costs e 1 i g; b 1 e for reimbursement relating to the Work. / 5f1 ~ Ordinance No. 2533 . Page 6 b. The request for authorization shall cDntain the. following information, and such other information as may fr~m time to time be requested by the City: (1) Detailed descriptions of the Work with the preliminary cost estimate. c. If the Council grants authorization, it shall be by written agreement with the Developer, and on the following conditions among such other conditions as the Council may from time to time impose: Developer shall pay all City fees and costs. The City shall be held harmless and indemni iied, and upon tender by the City, defended by the dey~loper for any of the costs and 1 i abi 1 i ti es associ ated wi th the construction of the project. The developer shall advance all necessary funds to design and construct the project. The developer shall secure at least three (3) qualified bids for work to be done. The construction contract shall be granted to the lowest qualified bidder. Any claims for additional payment for extra work or charges during construction shall be justified and shall be documented to the sati sfacti on of the Di rector of Pub 1 i c Works. (9) The developer shall provide a detailed cost estimate which itemizes those costs of the construction attributable to the Work. The estimate is preliminafy and subject to final determination by the Director of Public Works upon completion of the Public Facility Project. (1) (2) (3) (4) (5) (6) (7) (8) Developer shall prepare all plans and specifications and submit same to the City for approval; Developer shall secure and dedicate any right-of-way required for the Work; Developer shall secure all required permits and environmental clearances necessary for construction of the project; Developer shall provide performance bonds in a form and amount, and with a surety satisfactory to the City; '. (10) The agreement may provide that upon determination of satisfactory incremental completion of a Facility, as approved and certified by the Director of Public Works, 15fig' OrOlnance No. 2533 Page 7 the City may pay the developer progress payments in an amount not to exceed 75 percent of the estimated cost of the construction completed to the time of the progress payment but shall provi de in such case for the retenti on of 25% of such costs until issuance by the City of a Notice of Completion. . (11) The agreement may provi de that any funds owed to the deve 1 oper as reimbursements may be app 1 i ed to the developer's obligations to pay the Fee for building permits to be applied for in the future. (12) When all worK has been completed to the satisfaction of the City. the developer shall submit verification of payments made for the construction of the project to the City. The Director of Public WorKs shall make the final determination on expenditures which are eligible for reimbursement. (13) After final determination of expenditures eligible for reimbursement has been made by the Public Works Director. the parties may agree to offset the developer's duty to pay Fees required by this ordinance against the City's duty to reimburse the developer. (14) If. after offset if any. funds are due the developer under this section. the City shall reimburse the developer from the Fund either in cash or over time as Fees are collected. at the option of the City. for eligible costs incurred by the developer for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Fee; or the developer may waive reimbursement and use the amount due them as credit against future Development Impact Fee obligations. SECTION XIV. Procedure for Fee Modification , Any developer who. because of the nature or type of uses proposed for a development project. contends that application of the Fee imposed by this ordinance is unconstitutional or unrelated to mitigation of the burdens of the development. may apply to the City Council for a IIOdification of the Fee and the manner in which it is calculated. The application shall be made in writing and filed with the City Clerk not later than ten (10) days after . notice is given of the public hearing on the development permit application for the project. or if no development permit is required. at the time of the filing of the building permit application. The application shall state in detail the factual basis for the claim of modification. and shall provide an engineering and accounting report showing the overall impact on /Sft~ Ordinance No. 2533 , Page 8 . the DIF and the ability of the City to complete construction of the Facilities by maleing the modification requested by the applicant. The City Council shall IIIillee reasonable efforts to consider the application within sixty (60) days after its filing. The decision of the City Council shall be final. The procedure provided by this section is additional to any other procedure authorized by law for protection or challenging the Fee imposed by this ordinance. SECTION XV. Fee Applicable to Public Agencies Development projects by public agencies, including schools, shall not be exempt from the provisions of the Fee. SECTION XVI. Assessment District. If any assessment or special taxing district is established to design, construct and pay for any or all of the Facilities ("Worle Alternatively Financed"), the owner or developer of a project may apply to the City Council for reimbursement from the Fund in an amount equal to that porti on of the cost i nc 1 uded in the calculation of the Fee attributable to the Worle Alternatively Financed. In this regard, the amount of the reimbursement shall be based on the costs included in the Basin Plan, as amended from time to time, and therefore, will not include any portion of the financing costs associated with the formation of the assessment or other special taxing district. SECTION XVII. Expiration of this Ordinance. This ordinance shall be of no further force and effect when the City Council determines that the amount of Fees which have been collected reaches an amount equal to the cost of the Facilities. SECTION XVIII. Time Limit for Judicial Acti~n. Any judicial action ~r proceeding to attacle, review, set aside, void or annul this ordinance shall be brought within the time period as established by Government Code Section 54995 after the effective date of this ordinance. . SECTION XIX. CEQA Findings for Statutory Exemption. The City Council does hereby find that the Fee herein imposed is for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. The Council finds that the proposed Facilities are in existing rights of way / 5R lL1 .~, 't". Ordinance No. 2533 Page 9 parallel to or replacing existing sewer lines. Therefore, the City finds that the adoption of this Ordinance is statutorily exempt under the provi si ons of Pub 1 i c Resources Code Secti on 21080 (b) (8) and CEQA Guidelines Section 15273. SECTION XX. Other Not Previously Defined Terms. For the purposes of this ordinance, the following words or phrases shall be construed as defined in this Section, unless from the context it appears that a di fferent meani ng is intended. (a) "Building Permit" means a permit required by and issued pursuant to the Uni form Bui 1 di ng Code as adopted by reference by this City. (b) "Deve 1 opera means the owner or developer of a development. (c) "Development Permit" means any discretionary permit, enti t 1 ement or approval for a development project issued under any zoning or subdivision ordinance of the City. (d) "Deve 1 opment Project" or "Deve i opment" means any acti vity descri bed in Secti on 65927 and 65928 of the State Government Code. SECTION YY' ^^_. Effective Date. This ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by UI Z" J,hn P. LiPPit~ Director of Public Works Bruce M. Boogaard U City Attorney /s~/I Ordinance No. 2533 .. Page 10 I I dL...: gfiSIIIIR ., w Jt ~-z_ ; i - /5A/.;L . :s~g ~I' < ~ ~if ltl:l! <I~ z & 911 =1- ~..5 z - In < =:l e::: U.l 3: U.l In Z o >- z < u "'T'" c: < e::: o UJ ..J U.l E- , ~ - l:: . . > ...~ Ordinance No. 2533 Page 11 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 10th day of November, 1992, by the following vote: AYES: Councilmembers: Horton, Mal co 1 m, Moore, Ri ndone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None '" G_ 4h Tim Nader,-Mayor ATTEST: . -) '/i -' / . '0'i..:.JLr~ ~.~ / I 1- _ {,' '- ~~-~~~~-::.. Beverly A. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City or Chula Vista, California, do hereby certify that the foregoing Ordinance No. 2533 had its first reading on November 3, 1992, and its second reading and adoption at a regular meeting of said City Council held on the 10th day of November, 1992. Executed this 10th day of November, 1992. } ,/-. 1-' 'Jj/ I, f '. ..// . /. . I J:-t1J.j..;.{ !./ ".,...1'..>.: 0('. Beverly A. Authelet, City Clerk /5ff13 en CI') r~ 0: 0, W w;::, E- z ~ z < -< < '.' . _ ~ 8 u Q ~ o z z < < UJ rn 6 r:na::!i >- <:: ~ ~ 0: >- <( z - 0: 0 E~ <( z w 0 :> ~ Z z. 0 z 0 in ",0 Z :> <D = - ;, -< C)G 0 ~ W <D 0: w w w w 0 o z" <:) w V> !:1 !:1 !:1 0 - z W >- '< <( r -:J 1-...... ~ w r r r r u ....w --' U V> "- "- "- "- V> ..J " . Ill" - z.... 3: 0 ~ " ~ ~ ~ :z Vl <( CD . 0::: . W :s: f w en :z " ;;:: :z <( ,...) ::;: D- ; <( 0::: C) w 1 ---' w r- ~-z- w ~ <( u V> o ~ ~ o z - /SfJ:I~ ':J c;: ~ #':A RESOLUTION NO. /1/' ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR THE TELEGRAPH CANYON SEWER DEVELOPMENT IMPACT FEE AS PROVIDED FOR IN ORDINANCE NO. 2533 WHEREAS, on October 27, 1992, Council adopted Ordinance 2533 establishing the Telegraph Canyon Sewer Development Impact Fee (The "Fee") to provide sewer improvements within the Telegraph Canyon Sewer Basin to handle the incremental increases in sewage flow anticipated within the Basin; and WHEREAS, the established Fee is $184 per Equivalent Dwelling Unit (EDU) and it is time to revisit this Fee and update it in accordance with the Engineering News Record (ENR) "Construction Cost Index"; and WHEREAS, the City Council may adjust the amount of the Fee to reflect changes in the construction of the facilities as reflected by the Engineering News Record (ENR) "Construction Cost Index"; and WHEREAS, staff recommends increasing the Fee to $216.50 per EDU because this fee increase is necessary to cover cost increases to build the originally proposed facilities; and WHEREAS, the following methodology was used in adjusting the Fee based on the ENR index: ENR Construction Cost Index-October, 1992 ENR Construction cost Index-July, 1998 Increase in Index (5921.00 + 5032.16) Revised Fee ($1,84.00 x 1.1766 5032.16 5921.00 1.1766 $216.50 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve an amendment to the Master Fee Schedule to increase the Telegraph Canyon Sewer Development Impact Fee to $216.50 as provided for in Ordinance No. 2533. Presented by Approved as to form by John P. Lippitt, Director of Public Works l-^-~~. John M. Kaheny, City Attorney H:\home\lorraine\rs\sewdif.amd /.5;3-/ COUNCIL AGENDA STATEMENT Item..L6 Meeting Date 9/1/98 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 1915' 7 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 I & 5]) . C. Resolution /9/ c f!'" of the City Council of the City ofChula Vista, California, fo?ft<ing 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 Work~~ REVIEWED BY: City Managey~ ~ @1 (4/5ths Vote: Yes_NoX) On July 28, 1998, Council appproved the Resolution 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 ofCFD No. 97-1. ITEM TITLE: 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. 97-1 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. /~-IJ~/ Page 2, Item / ~ Meeting Date 9ii"%8 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 of the map is presented in Exhibit I. 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 follows: /t/1~2- Page 3, Item / b Meeting Date~ . 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 ofCFD 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 of the building. . Non-Residential Developed Parcels (commercial and community purpose facilities) are taxed based on acreage of the 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 /~fJ- - 3 Page 4, Item~ Meeting Date 9/1/98 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 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 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 /6p':7prove an increase in the tax Page 5, Item~ Meeting Date 9!1/98 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, 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 annual 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 annual 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 the later of I) September 8, /6A--S- Page 6, Item I d, Meeting Date=m 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 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: I) 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 Landscaping Improv List offacilitie Special Co Attachments A- Special Tax Report CFD 97-1 August 20, 1998 H:\HOME\ENGINEER\agenda\97~ IPH.wpd OSD-034 /t/l-0 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 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. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 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 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 District, 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 (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 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. 1 /013-/ 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. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]). " 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--- ~~k- John P. Lippitt Director of Public Works John Kaheny City Attorney 2 l?g~2 RESOLUTION NO. 19/5'! RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA 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 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 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. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTA Y RANCH - SPA ONE, VILLAGES I & 5]) (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 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 DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTA Y RANCH - SPA ONE, VILLAGES I & 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 Special Tax Report for I /~{! -I 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. 97-1 (OPEN SPACE MAINTENANCE DISTRlCT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5])." 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 DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY 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 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 2 / ~cJ' 2- 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 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 (1) 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 / ~C - 3 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 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 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 DISTRlCT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT lOT A Y RANCH - SPA ONE, VILLAGES 1& 5]) of the City ofChula 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 Shall COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTA 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: 1. Prepare and furnish to the necessary election supplies for the conduct of the election. 4 I~C.~ 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. PREPARED BY: APPROVED AS TO FORM BY: ~~ John P. Lippitt Director of Public Works John Kaheny City Attorney H:\HOME\ENGINEER\LANDDEV\OT A YRNCH\CFD97- - I.DOC 5 It{!-~ 'I'E Community Facility District No. 97-1 July 1,1998 Page 1 Special Tax Report EXfflBIT If;:;" 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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OiO:::~.:~ S;i;.::b~ :::l;";"::::-,~ ~:;;~~~ ==o8i5tJ ~:<::15U:::l; ~b:t5~5 lo..Vl .;;I).. ....O~!;!~'<::t:i ~hirli 155 '0'0( ~ ;>.: u:J::::c::Vi ..., l::l ~~~~S!e!~ t=O'O(Vl:5I:=: !;!&~~2:z).. :!fu Uo::! < ~ ~ ~~~ s6 ..::~ :r:~~ CUa oa... )..)..:( 00;;; /~e -1 \~~\l \ .:=' Is it, , ~ ~ \ ", !:: \~\~ N. ,.... '.:..l. \"1'. i 1 -> uo g~E~ V"'~"::2 :::oi3~ VlQ""lo.. ==2'i::"'-' ;:::-2: .~~t~ :::5:::;'0( -:..:2:0 ~::~~~ ~-~=:<:: c~~~S: u U~"l; ~Vl... U -o-c~ ;:g:::~~ b~~~~ VI......:: . ~oi....~b ~~iS~i g::...::iS* Ql-,5;)..:z -'. :z~ ~~~~~ ~ , . . ~1 . . ~I . I ~ 1 ~i ~ ! . ! "': Ea Community Facility District No. 97-1 July 1, 1998 Page 3 Special 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. It?(!-~ M:/$projecUchulavista/97 -1 rpt.doc Community Facility District No. 97-1 July 1, 1998 Page 4 Special Tax Report Reserve Fund means a fund that shall be maintained for each Special 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 comprising specific Parcels as shown 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. CateQories 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"). M:/$projectlchulavista/97 -1 rpt.doc Itt! - r Community Facility District No. 97-1 July 1, 1998 Page 5 Special Tax Report · 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 amount 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 $2,538 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax rates shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose M:/$projectlchulavistaf97 -1 rpt.doc / ~{! ,.I/J Community Facility District No. 97-1 July 1, 1998 Page 6 Special Tax Report 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. 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 $2,870/Acre Assiqnment to Cateqories of Special Taxes On or about July 1 of each year (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the District to the Residential Category, Non-Residential Category, Exempt Category, or Vacant Land Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levv and Apportionment of Special Taxes The City shall determine the Special Tax Liability of each Special Tax Area in each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel assigned to the Residential Category, M:I$projecUchulavista/97-1 rpt,doc / ~{! - / / 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 Tax Liability not related to delinquent Special Taxes to be collected from Parcels in M:/$projectJchulavistaJ97~ 1 rpt.doc /tf,C-/:;A Community Facility District No. 97-1 July 1, 1998 Page 8 Special Tax Report the Vacant Land Category according to the procedure set forth in the preceding paragraph. Step 4: The total Special Tax for each Parcel shall be the sum of the Special Taxes for each Special Tax Area in which a Parcel is located. /6{!-13 M:/$projecUchulavista/97.' rpt.doc COUNCIL AGENDA STATEMENT Hemd Meeting Date 9/1/98 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 /~ /59 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 19/?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.t~~e~;o the qualified electors. SUBMITTED BY: Director of Public Works ~ C\ 1\ REVIEWED BY: City Manage~ ~ ~~ I (4/5ths Vote: YecNoX) 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. RECOMMENDATION: That Council: 1) 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: / 7/J-/ Page 2, Item-.12 Meeting Date 9/1/98 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 1). 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 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 1 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 ofthe 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: 17/),2- Page 3, Item /7 Meeting Date=m . Implementation of an annual biota monitoring 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 final 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: 1) maintenance oflands that have been conveyed to the preserve at final "8" 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/l- 3 Page 4, Item / '7 Meeting Dat~=m 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 (Le., 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 ofOtay Ranch SPA One. This Area will be responsible for (1) 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 I includes all Developed Parcels for which a building permit has been issued, and include the following: (1) 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 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 /;7/?-1/ Page 5, Item /7 Meeting Date~ 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 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 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 100% 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. / 7"f7, S Page 6, Item / 1 Meeting Dat~~ . 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 / CPF ( I acre) $128.53 $80.96 Final Mapped Land (I acre) $128.53 $80.96 Vacant Land (I acre) $8\.30 $51.18 $51.18 1) It is assumed that only area "A" will be developed and that Area "B" will remain 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 oflaw. . 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 17/?~~ Page 7, ItemLZ Meeting Date 9/1/98 levy of special tax to the qualified electors of the district on the later of 1) 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 IMP ACT: All costs of fonnation 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 fonnation (staff cost estimated at $12,000), and 2) district administration (estimated annual staff cost of $25,000) Exhibits: 1- Attachments A - August 20, 1998 H:\HOME\ENGINEER\AGENDA\97-2PH.WPD /7;;;-7 RESOLUTION NO. /9/SCj 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. 97-2 (PRESERVE MAINTENANCE DISTRICT) 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 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 D1STRlCT) (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 District, 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 (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 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 1 of 2 /78;/ 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. PREPARED BY: APPROVED AS TO FORM BY: (A~~~ John Kaheny City Attorney John P. Lippitt Director of Public Works 20f2 1782- RESOLUTION NO. /9 / ~LJ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) 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 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 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 DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT)" 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 Special Tax Report for all future proceedings and all terms and contents are approved as set forth therein. 1 /?L!- -j 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 DISTRICT). 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. The boundary map of the proposed District has been filed pursuant to Sections 3 I I I and 31 I3 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 ofland 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. 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 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. For all particulars, reference is made to said Special Tax Report. 2 / 7C- - 2- 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 such 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, 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 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, 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 AVENUE 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, 3 17~-3 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 (I) 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 II 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 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. 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 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 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 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 "B" 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 4 / 7t?--jL , . 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 XIIIB 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: 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. 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 P. Lippitt Director of Public Works ~~~ John Kaheny City Attorney H: \shared\attorney\CFD97 - 2 5 I 7C! - s- Community Facilities District No. 97-2 July 1, 1998 Page 1 Special Tax Report ~ "L),l cK.H'J5tr n 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. / 7C! -~ M:\Sproject\chu lavis\CDF97 - 2A o 0.. CP oc x ttl I- ttl 'C:S CP 0.. 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",.. e3 Community Facilities District No. 97-2 July 1, 1998 Page 3 Special 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 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. I ?e-g/ M :\$project\chu lavis\CDF97 - 2A Community Facilities District No. 97-2 July 1, 1998 Page 4 Special Tax Report Preserve Operations and Maintenance means those activities defined in Part 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 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. I ?C!. - ~ M:\$project\chulavis\CDF97 -2A Community Facilities District No. 97-2 July 1,1998 Page 5 Special Tax RepDrt 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. 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. Cateoories 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 $0.0049 per sq. ft. $0.0078 per sq. ft. Non-Residential Parcels $80.96 per Acre $128.53 per Acre Category II I ?e-IO M:\$projecl\chulavis\CDF97 - 2A Community Facilities District No. 97-2 July 1,1998 Page 6 Special Tax Report 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. Category III TABLE 2 Maximum Special Tax Category II Resource Operation & Monitoring Maintenance $80.96 per Acre $128.53 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 $51.21 per Acre $81.30 per Acre Exempt Category / 7C- -1/ M:\$project\chulavis\CDF97 - 2A Community Facilities District No. 97-2 July 1, 1998 Page 7 Special Tax Report 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 Special 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. ! 7C! -/L M:\Sproject\chulavis\CDF97 -2A Community Facilities District No. 97-2 July 1, 1998 Page 8 Special Tax Report 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: /7(2 -13 M:\$project\chulavis\CDF97 -2A Community Facilities District No. 97-2 July 1, 1998 Page 9 Special Tax Report (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, 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. Improvement Area S 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 S, 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 S 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 / 7C! -/1 M:\$project\chulavis\CDF97 - 2A Community Facilities District No. 97-2 July 1, 1998 Page 10 Special Tax Rep:xt collected from all Parcels in Category III according to the procedure set forth In the Step 1 and Step 2 above. /7C!- -IS- M:\$project\chu lavis\CDF 97 - 2A COUNCIL AGENDA STATEMENT Item~ Meeting Date 9/1/98 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 I 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 19! ~! 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 J1' / (/; :z... of the City Council of the City of Chula 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. 98-1 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 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 3) Approve the resolution making preliminary findings, passing upon protests and approving the CFD No. 98-1 report. / S' IJ./ Page 2, Itemff Meeting Date 9/1198 4) Approve the resolution establishing CFO No. 98-1 and submitting the levy of a special tax to finance certain services to the qualified electors of CFO 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 CFO 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. CFO 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 CFOs, 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 CFO No. 98-1 encompasses all parcels located within the Otay Ranch, Villages I West, 2, 2 West, 6 and 7 owned by the Otay Ranch Company (total acreage =1,265, see Exhibit I). Description of facilities The proposed CFO 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 CFO 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 CFO administration by the Engineering Division (preparing reports, levying and collecting taxes, and public assistance) . / ff/l- 2- Page 3, Item~ Meeting Date 9/1198 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. Pro.posed Special 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. 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 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 (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 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. /0'#5 Page 4, Item.d 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 1) 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 fust 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 $10,896 for the Operations Division (Parks Maintenance staft) and $1,200 for the Engineering Division staft). Exhibits: 1- 2- 3 - Boundary Map ~j~\)aintained Special Tax Report CFD 98-1 Attachments A- August 20, 1998 H:\HOME\ENGINEER\AGENDA\98-1PH _i.LOT / c! /l-rL 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 [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 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 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. 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 ]) (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 District, 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 (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. 1 /f?6 - / 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 ])". 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: G.- ,,^,!2r\.c:y,. 0 John Kaheny City Attorney \-<~ John P. Lippitt Director of Public Works 2 /g6,Z RESOLUTION NO. /9 / ~ ~ 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 [OTA Y PROJECT, LLC- OVP-SPA ONE, VILLAGES 1 WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 ]) 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 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. 98-1 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1,2,2 WEST, 6,7 AND PLANNING AREA 12]) (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 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 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 ])" 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 Special Tax Report for / ~~I.JI 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 [OTA Y PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST, 2, 2 WEST, 6, 7 AND PLANNING AREA 12 D." 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 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 PLANNING AREA 12 D 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 )~{! .? 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 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 (1) 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. /~(! . 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 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. 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 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. 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 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 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 Article XIIIB appropriations limit equal to $151,633.90? 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: /?t! -7 ^ it 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. 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: c^---- ~~ John Kabeny City Attorney John P. Lippitt Director of Public Works 5 / Fe . s- Community Facility District No. 98-1 July 1, 1998 Page 1 Special Tax Report ,f /)}I E){.HIS/t n 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. M:\$projects\chulavista\CDF98-1 A Ige,~ Community Facility District No. 98-1 July 1,1938 Page 2 Special Tax Report 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 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. 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. I ffe - 7 M:\Sprojecls\chulavistaICDF98- 1 A Community Facility District No. 98-1 July 1, 1998 Page 3 Special Tax Report 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 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. 18(!-~ M:\Sprojects\chulavista\CDF98-1 A , Community Facility District No. 98-1 July 1,1998 Page 4 Special Tax Report Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levy 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). 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 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. / t"t!--j M:\Sprojects\chulavista\CDF98- 1 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. Resolution /9/68 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]). Resolution 19 !?L.I of the City Council of the City ofChula Vista, California, formji(g 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 workf ~ REVIEWED BY: CitYManage~ ~~ (4/5thsVote: Yes_NoX) On July 28, 1998, Council approved the resolu~n of intention 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. ITEM TITLE: A. COUNCIL AGENDA STATEMENT Item / q Meeting Date ~ B. C. 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. r BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. /9//-/ Page 2, HemE Meeting Date 9/1198 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. Pronosed Special 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 /94' 2- Page 3, Item I q Meeting Date 9Ii7ts 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 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 (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 CDF 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 later of 1) September 8, 1998, or 2) ten (10) business days after the City is notified of the close of the land exchange between /9;J~ 3 Page 4, Itemb Meeting Date 9/1/98 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 staff) and $1,200 for the Engineering Division staff). Exhibits: 1 - 2- 3 - Boundary Map ~;f~ntmned Special Tax Report CFD 98-2 Attachments A- August 20. 1998 H:\HOME\ENGINEER\AGENDA\98M2PH.WPD /'l/l--~ RESOLUTION NO. /9/ /;..E . 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 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. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7]) (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 District, 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 (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. 1;98- / , 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 "COMMUNI1Y FACILITIES DISTRlCT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRlCT [MCMILLIN - D.A. AMERlCA, OTA 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 pf 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: ~~~ John Kaheny ~ City Attorney John P. Lippitt Director of Public W orles 2 /9,8-2- RESOLUTION NO. /9 / ~ '7' 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 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. 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, 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 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 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 /f(} - / 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. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - SPA TWO, VILLAGES 6 & 7])." 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 DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, OTAY - 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 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 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 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 2 19~-L 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, departtnent 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 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 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. 3 /ge - 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 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. 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 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. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [MCMILLIN - D.A. AMERICA, 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 Shall COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE MAINTENANCE DISTRICT [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: 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 /q~- 'I 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 P. Lippitt Director of Public Works ~~~ John Kaheny City Attorney H:\HOMEIENGINEERILANDDEVIOTA YRNCHlCFD98- - 2.DOC 19 e - S- 6 Community Facility District No. 98-2 July 1,1998 Page 1 Special Tax Report "An EXf-I/3/T 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. Iqc '~ M:\Sprojects\Chulavista\CFD9B-2A Community Facility District No. 98-2 July 1, 1998 Page 2 Special Tax Re;::>Clrt Facilities means thClse 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 3D. Maximum Special Tax means the maximum special tax that can be levied Within CFD No. 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 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. /9~-7 M:\$projects\Chuiavisla\CF09~2A Community Facility District No. 98-2 July 1, 1998 Page 3 Special Tax Repo;"! Special Tax means the special tax or special taxes actually levied within CFD !~o 98-2. Special Tax Liability for any Fiscal Year is an amDunt determined sufficient to pay the costs of the District, including: (i) the amount required tD be depDsited 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 Dr Parcels within the bDundaries Df the District which are not exempt from the Special Tax pursuant to law, or which are not classified or assigned tD the Exempt Category as defined herein. Cateqories 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 $47.52 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the les$er 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 tD 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"). Assiqnment to Cateaories Df 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. /q{! .r ~:\Sprojects\Chulavista\CFD98-2A Community Facility District No. 9B-2 July 1, 199B Page 4 Special Tax Report Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levv 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). Special Taxes shall then be levied on each Parcel within the District as follDws: 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, (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 tD 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. /qd-9 M:\Sprojects\Chulavista\CF098-2A Tuesday, September I, 1998 4:00 p.m. (immediately following the City Council Meeting) DRAFT COpy Council Chambers Public Services Building CHULA VISTA CITY COUNCIL CLOSED SESSION AGENDA Effective AprU 1, 1994, there have been new amendments to the Brown Act. Unless the City Attorney, 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 permitted by law to be the subject of a closed session discussion, and which the Council is advised shoultl 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 action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so thai the Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the 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) I. Granite Coostruction Company v. City of Chula Vista 2. Fritsch v. City of Chula Vista. et al. 3. Davis v. Authelet . 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 . None