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HomeMy WebLinkAboutAgenda Packet 1998/08/04 I I I I '1 Tuesday, August 4, 1998 ~OO~~ . .' (immediately following the City Counc,l Meetmg) Council Chambers Public Services Building Citv of Chula Vista Citv Council CLOSED SESSION AGENDA b amendments to the Brown Act. Unless the City Attorney, the City ::{:~~ ~:;::/Ci~~~:::~es~~;: ot~:",;:: at this time, the Council will discuss ~nd ~~Iiber~te on t~e f~~;;~~; items of business which are permitted by Inw to be the subject of a closed sessIOn ISCussI.on, an ~ I '1' Council is advised should be discussed in closed session to best protect,the intere~ts of thde C'IJ.. The d ~tC~t;~ . 0 en session issue any reports of final actIOn taken In close seSSIOn, an e v re:Ulre~:w~;/od;:~:t~~ ;icallength of time taken up by closed sessions, the videotaping will be t~mlin:ted : t~~; point in :rder to save costs so that the Council's return from ciflofised ;ess:?n, ;:f:::~{ Z:~~::~:.~ t~n ~;~ and adjournment will not be videotaped. Nevertheless, the report 0 Ina ac IOn minutes which will be availnble in the City Clerk's Office. 1. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 In Re: Whitewater Canyon LLC. Case No. 98-08520-A11 . . Fritsch v. City of Chula Vista 2. Anticipated litigation pursuant to Government Code Section 54956.9 2. REPORT OF ACTIONS TAKEN IN CLOSED SESSION Agend2 -3- August 4. 199~ CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permitted by law to be the sabject of a closed session disCUSsion, and which the Agency is advised should be discussed in closed session 10 best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of iklEl 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 Agency's return from closed session, reports of iklEl 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 Office of the Secrerary to the Redevelopment Agency and the City Clerk's Office. 7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LmGATIO!\ _ Pursuant to Government Code Section 54956.9(c), Initiation of Litigation One case. 8. COlI/FERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 Propenyl 340-368 Bay Boulevard (5 parcels totaling 3.65 acres): 567-022-35 567-022-17 567-022-31 567-022-33 567-022-28 340 Bay Boulevard 350 Bay Boulevard 360 Bay Boulevard 364 Bay Boulevard 368 Bay Boulevard 1. 02 acres 0.65 acres 0.73 acres 0.63 acres 0.62 acres Negotiating Parries: Redevelopment Agency (Chris Salomone); San Diego Unified Por: District: B.F. Goodrich Under Negotiations: Purchase!!ease terms and conditions Agenda -3- AUgUSI4. 1998 CLOSED SESSION Unless Agency CormseI, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following item(s) of business which are permitted by law 10 be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session 10 best protect the interests of the City, The Agency 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 laken up by closed sessions, the videotaping will be terminated at Ihis point in order to save COSIS so that the Agency's return from closed session, reports of.fkl!!l action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minules which will be available in the Office of the Secretary 10 the Redevelopment Agency and the City Clerk's Office. 7. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LmGATIO!\ - Pursuant to Government Code Section 54956.9(c), Initiation of Litigation One case. 8. COl'lTERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres): 567-022-35 567-022-17 567-022-31 567-022-33 567-022-28 340 Bay Boulevard 350 Bay Boulevard 360 Bay Boulevard 364 Bay Boulevard 368 Bay Boulevard L 02 acres 0.65 acres 0.73 acres 0.63 acres 0.62 acres Negotiating Panies: Redevelopment Agency (Chris Salomone); San Diego Unified Pon Dislricl: B.F. Goodrich Under Negotiations: Purchasellease terms and conditions Tuesday, August 4, 1998 4:00 p.m. "I declare un1er penalty of perjury that I am em)Io 'ej b',' e:e '.:i~:'/0[ "~:~~lIJa Vista in the Oi'"dce c' (~ i~' ". .":' that I posted this '\::;l ".1 '.~ ~~\.,ihr(in Board at ~~T~~'~,3 /~;~;~D c at i Hall on Council Chambers ublic Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Moot_, Padilla_, Rindone_, Salas_, and Mayor Horton_. 2. PLEDGE OF ALLEGIANCE TO THE FLAG. MOMENT OF SfLENCE 3. APPROVAL OF MINUTES: None submitted. 4. SPECIAL ORDERS OF THE DAY: None. CONSENT CALENDAR (Items 5 through J J) 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 Fonn" avaiwbLe in the lobby and submit it to the City CLerk prior to the meeting. Items pllLLed from the Consent Calendar will be discussed after Board and Commission Recommendations and Action Items. Items pulled by the public will be the first items of bllsiness. 5. WRITTEN COMMUNICATIONS: A. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on July 28, 1998, there were no actions taken which are required under the Brown Act to be reported. It is recommeoded that the letter be received and filed. B. Letter of resignation from the Cultural Arts Commission - Thomas J. Erhardt. It is recommended that the resignation be accepted with regret and the City Clerk be directed to post immediately according to the Maddy Act in the Clerk's Oftice aod the Public Library. C. Letter from Virgil Pina, Vice Chair, Human Relations Commission, requesting that a traffic signal be installed at the intersection of Broadway and Flower Street. It is recommended that statf be instructed to infonn Mr. Pina that the City Council awarded a contract tor the installation of a tramc signal at Broadway and Flower Street on July 14, 1998 and that construction will be.gin shortly. D. Letter from Hilltop High School Cbeerlellder Booster Club requesting a $500 donation to help sponsor a Celebrity Basketbllll gllme. They bope to raise $2500 toward travel and competition expenses for the USA National Competition to be beld in either Texlls or Florida. Since the request does not meet the criteria for funding organizations established in Council Policy 159-02, as there is "no tangible bendit to the City," it is recommended that the request be denied. In past years, requests to attend national tournaments from Miss Softball America, the Chula Vista Girls Amateur Softball Association, the Swed Revenge Softball Team, the A YSO All Star Team, and the San Diego County Boys Baseball Organization have been denied. Agenda -2- August 4, 1998 6. RESOLUTION 19121 APPROVING CITY -WIDE ETHICS STATEMENT - The Board of Ethics is proposing a City-Wide Ethics Statement for Council's consideration and approval. Once approved, the Board of Ethics proposes that the City-Wide Ethics Statement be disseminated to all City employees and officials and that it be included in new City employee orientation materials packets. Further, the Board proposes that the City-Wide Ethics Statement be made available to the public. The purpose of the City- Wide Ethics Statement is to encompass into one statement the City's commitment to standards set forth in the Statement. Staff recommends approval of the resolution. (Deputy City Attorney Gross) 7. RESOLUTION 19122 APPROVING REQUEST FROM THE BONITA BUSINESS AND PROFESSIONAL ASSOCIATION TO CONDUCT THE BONITA FEST AND BONITAFEST PARADE - The Bonita Business and Professional Association is requesting permission to conduct the 26th Annual Bonitafest and Bonitafest Parade on Saturday, September 26, 1998. They are also requesting a temporary street closure of Bonita Road for the parade. The street closure would involve Bonita Road between Willow Street and Central Avenue. Staff recommends approval of the resolution. (Chief of Police) 8. RESOLUTION 19123 W AIVlNG THE BIDDING PROCESS AND APPROVING AN AGREEMENT WITH FRANK CHABOUDY FOR PROVISION OF PROFESSIONAL TENNIS SERVICES AND FOR OPERATION OF THE CHULA VISTA TENNIS CENTER - Tbe Cbula Vista Tennis Center bas been operated by Frank Chaboudy under a series of agreements with the City since November of 1985. A new agreement has been prepared to continue his professional tennis services for an additional three and one-half years. Staff recommends approval of the resolution. (Library and Recreation Director) 9.A. RESOLUTION 19124 APPROVING FINAL "A" MAP NO.1 FOR CHULA VISTA TRACT NO. 96-04, OT A Y RANCH SPA ONE VILLAGE 5, REJECTING ON BEHALF OF THE PUBLIC EAST PALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES; ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA THE PUBLIC DRAINAGE EASEMENTS AND ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS GRANTED ON SAID MAP WITHIN SAID SUBDIVISION: ACKNOWLEDGING ON BEHALF OF THE PUBLIC THE IRREVOCABLE OFFERS OF DEDICATION OF FEE INTEREST OF EAST PALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES, LOT "G" FOR PUBLIC PARK PURPOSES, LOT "H" FOR OPEN SPACE AND LOT "1" FOR PUBLIC IMPROVEMENTS - On November 19, 1996, Council approved a portion of the Tentative Subdivision Map for Tract 96-04, Otay Ranch SPA One (Otay Ranch Villages One and a portion of Village Five, excluding 288 acres located in a portion of Villages One and Five). On March 25, 1996, Council approved a portion of the Tentative Subdivision Map 96-04 (Otay Ranch Village Five, Neighborhoods 28, 29, 30, 31 and 39). Condition Number 117 of the resolutions require the developer to submit and obtain City approval of a master final map ("A" Map) over the portion of the tentative map within each Village area showing "super block" lots. All "super block" lots created are also required to have access to a dedicated public street. Staff recommends approval of the resolutions. (Director of Public Works) B. RESOLUTION 19125 APPROVING "A" MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NUMBER 96-04, OT A Y RANCH SPA ONE PORTION OF VILLAGE 5 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT 10. RESOLUTION 19126 DECLARING THE INTENT TO ANNEX PARCEL NUMBER 639-160-32 AND THE RIGHT-OF-WAY FOR EAST NAPLES STREET ON THE SOUTHERN BOUNDARY TO OPEN SPACE DISTRICT NUMBER 18 AND SETTING THE Tl1\1E AND PLACE FOR THE PUBLIC HEARING FOR 6:00 P,M. ON SEPTEMBER 22, 1998 - The tinal parcel map to subdivide Parcel Number 639-160-32 is currently in process. The parkway along East Naples Street to the south of Agenda -3- August 4, 1998 this parcel, which is part of the right-of-way for East Naples Street, is adjacent to Open Space District Number 18 but has not yet been officially annexed to the District. Staff recommends approval of the resolution. (Director of Public Works) 11. REPORT CITIZEN PARTICIPATION ON THE COORS AMPHITHEATER EVENTS PLANNING AND COORDINATION TASK FORCE - The Events Planning and Coordination Task Force for the Coors Amphitheater was formed to develop and monitor the Events Management Plan to insure the smooth operation of the amphitheater and minimize negative impacts on the community. At the time of approval of the amphitheater project, Council discussed citizen participation and feedback, particularly concerning impacts to residential developments bordering Brandywine A venue since they aTe the closest residential community to the amphitheater (at least until Dennery Ranch is completed). Staff proposes to facilitate citizen participation by inviting two representatives from these communities to participate in future meetings of the Events Planning and Coordination Task Force. Staff recommends Council accept the report and authorize the Mayor to select two representatives from the Point Rohinhood and Brandywine Townhomes to represent the community on the Events Planning and Coordination Task Force. (Director of Community Development) * * * END OF CONSENT CALENDAR * * * ADJOURNMENT TO REGULAR AND/OR JOINT MEETING OF THE REDEVELOPMENT AGENCY ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject mailer within the Council'sjurisdiction that is not an item on this agenda for public discussion. (State law, 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 Fonn" available 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, please fill out the "Request to Speak Font'" available in the lobby and submit it to the City Clerk prior to the meeting. 12. PUBLIC HEARING TO CONSIDER PLACING DELINQUENT SEWER CHARGES ON THE RESPECTIVE PROPERTY TAX BILLS FOR COLLECTION - Council shall consider placing delinquent sewer charges on the respective property tax bills for collection at the time set for hearing together with any objections or protests by interested parties. At the conclusion of the hearing, Council shall either approve the account as submitted or as modified or corrected by Council. Council shall then approve a resolution assessing such amounts as liens upon the:: re::spe::ctive parcels of land as they are shown upon the last available assessment roll. The amounts shall be charged to the property owners on the next regular tax bill. Staff recommends approval of the resolution. (Director of Finance) Continued from tbe meeting of July 28, 1998. RESOLUTION 19127 ASSESSING DELINQUENT SEWER SERVICE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL * * * Staff will be availahle in Conference Room 1 to respond to any concerns * * * Agenda -4- August 4, 1998 13. PUBLIC HEARING ADJUSTMENT OF THE TELEGRAPH CANYON DRAINAGE FEE - The fees established in 1990 for the Telegraph Canyon Drainage Basin improvements were last updated on April 21, 1998 using the Engineering News Record "Construction Cost Index." The fee was increased by 16.75 % to $4,579 per acre. The last update using revised cost estimates and benefit areas as a basis was in 1992. At that time, however, due to various factors, the fee remained unchanged at $3,922 per acre. Since a public hearing is not warranted at this time, stan recommends that the item be tabled. (Director of Public Works) Continued from the meeting of' July 14, 1998. 14. PUBLIC HEARING DECLARING THE INTENT TO INCREASE THE OPEN SPACE DISTRICT NUMBER 10 ASSESSMENT ON THE BELLA NEVONA SUBDIVISION - On May 26, 1998, Council approved the proposal to: (1) subdivide a parcel consisting of 5.25 gross acres into 28 lots for the Bella Nevona subdivision ranging in size from 5,000 square feet to 8,300 square feet; (2) amend the development standards contained in the Ranchero Sectional Planning Area to allow a reduction in minimum lot sizes and set back requirements; (3) order the initiation of assessment ballot procedures applicable to the parcel for which it is proposed that the Open Space District Number 10 assessment will be increased; and (4) schedule a public hearing on the intent to increase the Open Space District Number 10 assessment on this subdivision. Staff recommends approval of the resolution. (Director of Public Works) Continued from the meeting of July 28, 1998. RESOLUTION 19128 APPROVING AN INCREASE ON THE OPEN SPACE DISTRICT #10 ASSESSMENT FOR THE BELLA NEVONA SUBDIVISION IS.A. PUBLIC HEARING REGARDING THE DECLARATION BY THE CITY COUNCIL OF ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NUMBER 98-3 (OPEN SPACE MAINTENANCE DISTRICT NUMBER 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 AND THE INTENT TO AUTHORIZE A SPECIAL TAX TO PAY FOR ALL OR A PORTION OF SUCH PUBLIC SERVICES - The Ayres Land Company has requested the City to conduct proceedings for the formation of Community Facilities District Number 98-3. This district will fund the perpdual operation and maintenance of open space slopes, drainage channels, detention basins, medians and parkways of Sunbow II. The City has retained the services of Dick Jacobs Associates as special tax consultant and Brown, Diven, Hessel & Brewer as legal counsel to provide assistance during the proceedings. Staff recommends approval of the resolutions. (Director of Public Works) Continued from the meeting of July 28, 1998. B. RESOLUTION 19129 MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE COMMUNITY FACILITIES DISTRICT REPORT C. RESOLUTION 19130 ESTABLISHING COMl\fUNITY FACILITIES DISTRICT NO. 93-8 (OPEN SPACE MAINTENANCE DISTRICT NUMBER 35 (SUNBOW II) AND AUTHORIZING THE SUBMITTAL OF LEVY OF A SPECIAL T AX THEREIN TO FINANCE CERT AIN SERVICES TO THE QUALIFIED ELECTORS 16.A. PUBLIC HEARING TO CONSIDER GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL THROUGH SEPTEMBER 4, 2002 TO PACIFIC WASTE SERVICES - This public hearing is to approve the agreement for solid waste collection, processing and disposal services, and to establish a rate schedule for services provided under the agreement to be effective September 1, 1998 which: (1) includes a freeze on current rates through June 30, 1999; (2) provides a reduction in rates for commercial fiber recycling and multi-family recycling for dwellings of nine units and under; and (3) establishes fixed rates for industrial "roll-off," compactor and optional services. Staff is further requesting Agenda -5- August 4, 1998 the amendment of Chapter 8.23 of the Municipal Code to rdlect the adjustments made into the franchise agreement. Staff recommends Council place the ordinances on first reading and approve the resolution. (Deputy City Manager and Conservation Coordinator) ORDINANCE 2740 AMENDING CHAPTERS 8.23, 8.24 AND 8.25 OF THE MUNICIPAL CODE TO MOVE THE SOLID WASTE AND RECYCLING FRANCHISE TERMS AND CONDITIONS OUT OF THE MUNICIPAL CODE INTO A SEPARATE FRANCHISE AGREEMENT, AND MAKING TECHNICAL CHANGES (first readin,,) ORDINANCE 2741 GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVICES THROUGH SEPTEMBER 4, 2002 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME (first readin,,) RESOLUTION 19131 ADOPTING THE SCHEDULE OF MAXI~mM RATES FOR SOLID WASTE, RECYCLING, AND GREEN WASTE COLLECTION AND DISPOSAL OR PROCESSING SERVICES AS SUBMITTED BY THE CITY'S SOLID WASTE FRANCHISE AGENT (PACIFIC WASTE SERVICES) EFFECTIVE SEPTEMBER 1,1998 B. RESOLUTION 19132 AMENDING FISCAL YEAR 1998/99 BUDGET TO INCLUDE THE RECYCLING EDUCATION PROGRAM AND ADD TWO TEMPORARY, FULL-TIME POSITIONS IN UNCLASSIFIED SERVICE IN THE CONSERVATION PROGRAM AND APPROPRIATING FUNDS THEREFOR - The California Integrated Waste Management Act of 1989 (AB 939) requires that cities develop and implement an Integrated Solid Waste Management Plan. The plans commit cities to implement programs that will reduce or divert 25 % of their annual waste generation from landfills by 1995 aod 50% by the year 2000. A failure to develop plans or make a good faith effort to meet diversion goals is suhject to civil penalties of up to $10,000 per day. Staff recommends approval of the resolution. (Deputy City Manager and Conservation Coordinator) 4/5th's vnte required. This is a related item. but dnes "nt reuuire a Duhlic hearilU!. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one of the City's Boards, Commissions, and/or Committees. None submitted. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff. or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. 17lOse who wish to speak, pLease Jill out a "Request to Speak" fonn available in the lobby and submit it to the City Clerk prior to the meeting. 17.A. RESOLUTION 19133 APPROVING THE HIRING OF ADDITIONAL TEMPORARY EXPERT PROFESSIONALS AND APPROPRIATING FUNDS - On March 31. 1998. Council autborized the Mayor to execute a contract for engineering plan review services. On May 26, 1998, Council approved the hiring of a temporary Expert Professional to supplement City staff efforts to respond to the ongoing land development activities. Staff recommends approval of the resolutions. (Director of Public Works) B. RESOLUTION 19134 APPROPRIATING FUNDS FOR LAND DEVELOPMENT PLANS REVIEW SERVICES - 4/5th's vote required. Agenda -6- August 4, 1998 18. RESOLUTION 19135 APPROVING AN AMENDMENT AND RESTATEMENT OF THE EASTLAKE GREENS AFFORDABLE HOUSING AGREEMENT WHICH INCORPORATES THE EASTLAKE GREENS HOME OWNERSHIP PROGRAM - On July 25, 1995, Council approved the Affordable Housing Agreement for the Planned Community of EastLake. On December 12, 1995, Council adopted the EastLake Greens SPA Plan. In accordance with that Agreement, EastLake was to have under construction no later than June I, 1998, 112 qualitled low income housing units. EastLake was unable to meet the June 1, 1998 deadline but made a good faith effort to comply with the Agreement. EastLake continued to meet with City staff and was issued building permits with the premise that an acceptable affordable housing project would be forthcoming. The Amendment to the EastLake Greens Affordable Housing Agreement incorporates the changes to the original Agreement and includes the EastLake Greens Home Ownership Program. Staff recommends approval of the resolution. (Director of Community Development) ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers. OTHER BUSINESS 19. CITY MANAGER'S REPORTCS) A. Scheduling of meetings. 20. MA YOR'S REPORT(S) 21. COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to (a closed session and thence to) lhe regular City Council meeting on August 11, 1998 at 6:00 p.m. in the City Cotmcil Chambers. A meeting of the Redevelopment Agency will be held immediately following the City Council meeting. July 30, 1998 TO: The Honorable Mayor and City Council David D. Rowlands, Jr., City Manage~ ~tt Ml City Council Meeting of August 4,1998 J---z FROM: SUBJECT: This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, August 4,1998. 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 7/28/98, 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 THOMAS ERHARDT'S RESIGNATION FROM THE CULTURAL ARTS COMMISSION BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE CLERK'S OFFICE AND THE PUBLIC LIBRARY. 5c. This is a letter from Virgil Pina, Vice Chair ofthe Human Relations Commission, requesting that a traffic signal be installed at the intersection of Broadway and Flower Street. IT IS RECOMMENDED THAT STAFF BE INSTRUCTED TO INFORM MR. PINA THAT THE CITY COUNCIL AWARDED A CONTRACT FOR THE INSTALLATION OF A TRAFFIC SIGNAL AT BROADWA Y AND FLOWER STREET ON JULY 14, 1998, AND THAT CONSTRUCTION WILL BEGIN SHORTLY. 5d. This is a letter from Karl Bunker, President of the Hilltop High School Cheerleader Booster Club, requesting a donation of $500 for the cheerleading team to attend a National Competition in Dallas, Texas, or Orlando, Florida. This request does not meet the criteria for funding organizations established in Council Policy 159-02, as there is "no tangible benefit to the City." THEREFORE, IT IS RECOMMENDED THAT THE REQUEST BE DENIED. In past years, requests from Miss Softball America, the Chula Vista Girls Amateur Softball Association, the Sweet Revenge Softball Team, the A YSO All Star Team and the San Diego County Boys Baseball Organization to attend national tournaments were denied. ~~f?- ~ ~~~~ ""'-~"t....... CllY OF CHUlA VISTA OFFICE OF THE CITY ATTORNEY Date: July 29, 1998 From: The Honorable Mayor and City coun~ John M. Kaheny, City Attorney ~ Report Regarding Actions Taken in Closed Session for the Meeting of 7/28/98 To: Re: The City Council met in Closed Session on 7/28/98 to discuss: Anticipated litigation pursuant to Government Code Section 54956.9: Significant exposure to litigation pursuant to subdivision (b) : One cases 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 .5;-/ 276 FOURTH AVENUE. CHULA VISTA' CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 <tJ"'''''"'''-''''' RECEIVE:O ,!,r~- ~lPIii- 1";,, f~ ! " - ' ---- . , 1,_ I JUl 2 J 'G08 ~:il~'ii'._~h ___ n~" 'I I I ! July I, 1998 '98 Jl 23 AlO :36 crTY OF CHULA VISTi~ cm CLERK'S OFFICf Effective as of this date, I hereby resign my position as Cultural Arts Commissioner. Having attended four Cultural Arts Commission meetings and one City Council meeting I have come to the sad conclusion that I will not be able to make a positive impact on the City of Chula Vistas cultural arts agenda. There are no real "funds" available for the Cultural Arts Commission and no real support from the city. To be where they are at this time after so many years of existence is a travesty at best. It is a toothless council with a City determined to keep them that way. I hope that as the City matures they will come to understa..~d that art and high culture are more th.an \vaterslides, concerts under the stars and sport facilities. Dear City of Chula Vista: Disappointed, Ihtuwr -2-- ~ t..lt... J.j- Thomas John Erhardt E-mail: terhardt@access1.ne1 cC-~ WRITTEN COMMUNICATIONS :J;;; ('i) r sj >/j 'I zr '7 .~~ 5.8-/ /" To: The Honorable Mayor and Honorable City Council Members of Chula Vista. Ifo'i [ @ ~J \0 [i ._~j JUL 2 \ lqaP _ . L-_:III"CC~'~'" ~ Dear Mayor and members of the Council, I would like to bring to your attention a very important issue and need. As you may already be aware of classes will soon resume again for many of our city's school children. Emory elementary located near the north-west area of our city will begin classes on August 4th. In order to come to and from school many of Emory's school children must cross at Broadway Ave. Most of this crossing is done at the intersection of Broadway and Flower street. Traffic is heavy at this intersection and not long ago a young boy was struck by a vehicle on his way home. I believe the community and children would be well served by the installation of a pedestrian activated signal device at this comer. Please consider the added safety benefits of such a device and let me know if we can move forward with this idea. Thank you. ~~ Virgil Pina j;L" f.27- s<tS-.6 Vice Chair Human Relations Commission. 7-.2.:7- 7g o.c: CotXlc.; \ c.;+y M~ J,hn Lippi+! 'Y,c:u ph Ley" v.. /"' J'--. (' / J WRITTEN COMMUNICATI~~ cc: ~&:- ~) r 8/~9if 0~ ~PJ/ S'e- I - ,,;;;_ ~'':;::l;' . _p...._ ;:,,;, ,;..j;,..; ..,,'" ...."i .....;,;..;;,,;,- ~",'MO '"H~.'Q~''' r~~,~Lu~"1 ~~' Hilltop Higb Scbool Ubeerleader Booster Ulub Karl BUlker, PresideD! U3 TwiD Oab Uircle Cbula VIsla, CA 91910-U30 IN.. . To the Honorable Mayor and City Council; The Hilltop High School Cheer sql.Uild is compnsed of thirty talented young ladles who support the school athletic programs, They practice at least six hours a week, cheer at football games, boys and gins basketball games, wrestling matches, boys and girls soccer games, perform at assemblies and compete. The last two years they have won 1" place at the Sweetwater District Competnion, were finalists both years at Magic MIn. (a state competition) and this past year they qualified to compete at the USA National Competition In An~helm, Fifteen of the thirty girls are returning, so they oxpect to be very competitive this YllIIr as 1Nll1I. .~ ~ . Cheet1eadlng Is ~nsive. Last year, n cost approximately $1500.00 per gin. Although the girls do work to eam money to pay for unlfomns, more Is needed. The cheerleaders will be competing In a '. National Connpetnlon in Dallas, TX, or Onando, FL. This year the Hllnop High School Cheerleader Booster ~. . Club (HHSCBC) is organizing a Celebrity Basketball game to help with the travel expenses and competition fees. David Mirlsch Enterprises will produce the event. We are requesting your suppolt in sponsoring the game. Our goal is $2500.00. We hope that you will donate $500. The City of Chula Vista will be listed in the program as a spopsor. The girls will be excellent representatives of the cny of Chula Vista. The date of the game has not yet been set, anhough n will take place at the Hilnop High School Gym on a Saturday night in the Fall. We expect to filllhe 1300 seats available for the game, We will begin advertising as soon as possible. We hope you will support our girls by sponsoring the Celebrity Faculty Basketball game, !'Iease contact myself or my wife, Leslie, as soon as possible, at 426-3617. Thank you, Karl P BUllkcr President . II ( ,-C':, o/r ~~~ ''f?oW(~ (~ e fit. 'Yr1~ e~ ....-< -<-< nO r"TI rnC') :Q:x: ~c:: v>r 0:1> "TI<: ...,,- -V> n-l ,'-:J:> :if ~ ::0 ITI C') ITI < ITI o ~ -0 W - ...... IJItrreN COMMUNICATIONs -JD-/ CITY COUNCIL AGENDA STATEMENT Item: Meeting Date: ~ August 4, 1998 ITEM TITLE: Resolution ~ approving City Wide Ethics statement SUBMITTED BY: Deputy city Attorney, Ellen F. Gros~~ 4/sths Vote: Yes_No....z; The Board of Ethics is proposing a City Wide Ethics statement which is presented for Council's consideration and approval. Once approved, the Board of Ethics proposes that the City Wide Ethics statement be disseminated to all City employees and officials and that it be included in new City employee orientation materials packets. Further, the Board proposes that the city Wide Ethics Statement be made available to the public. The purpose of the City wide Ethics Statement is to encompass into one statement the City of Chula vista's commitment to standards set forth in the Statement. BOARDS/COMMISSION ACTION: The Board of Ethics, at its February 23, 1998 approved the proposed city Wide Ethics Statement. RECOMMENDATION: Approve the resolution. FISCAL IMPACT: N/A '-J RESOLUTION NO. ~ RESOLUTION OF CHULA VISTA STATEMENT THE CITY COUNCIL OF THE CITY OF APPROVING CITY WIDE ETHICS WHEREAS, the Board of Ethics has drafted and proposed a City Wide Ethics Statement for the Council's approval; and WHEREAS, the purpose of the City Wide Ethics Statement is to encompass into one statement the City of Chula vista's commitment to the ethical standards set forth in the statement; NOW THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the city Wide Ethics Statement as set forth in Exhibit "An and further orders that said statement be disseminated to all City employees and officials; that it be included in new City employee orientation materials packets; and, that it be made available to the public. Presented and Approved as to form by ,,-~ CITY WIDE ETHICS STATEMENT The City of Chula vista aspires to set the highest legal, ethical and moral standards for its elected officials, appointed officials, and all city employees in all aspects of city government and thereby provide a model for all residents of the city of Chula vista to follow. All individuals shall be treated with courtesy and fairness in their dealings with the city of Chula vista. The public trust is a sacred trust and activities by officials of the city government that are incompatible with such trust will not be tolerated by the city of Chula vista. Every effort shall be made to ensure that, in the daily exercise of their duties, officials and employees of the City of Chula vista uphold the Constitution of the united states, the Constitution of the state of California and the Charter of the City of Chula vista. The practice of legal, ethical and moral conduct in the performance of one's public duty is critical to the proper discharge of the duties of office. All residents of the City of Chula vista shall be secure in the belief that they will be treated honestly and fairly by their city government. c: \cbs\ethics\stmt2. fin EXHmlT '-3 ~~JI Board of Ethics Minutes June 1, 1998 Page 2 Mr. Rowlands addresses the Board regarding the Ethics Statement. Chai onzales reiterates to Mr. Rowlands that the proposed E ics Statemen was a suggestion and not a mandate and further e ained that it ma ave been misinterpreted in the way it was tten. Mr. Rowlands fee the intent of the Ethics Statement appropriate and explained to he Board his personal philoso regarding this issue. Mr. Rowlan stated to the Board tha t is his job, not the Board's, to enfo e those standards nternally. Richard Schulman explains the Boa's position an advisory role to the City Council. Mr. Rowlands r 'terates s feelings that the Board's mission and objective are app r e and that he fully supports it. Mr. Rowlands also feels t the Board is coming in at the right time with the prese ation f the Ethics Statement to Council. Susan Herney e sses her ttl ghts regarding the Code in that it gives the Boa investigative a hority when there is a violation of the Co of Ethics and the Boa's responsibility to advise the Coun' and promote the cause of hics in the City through an edu ional component. Mr. Rowlands fee that the Board is coming i t the right time with the presentation f the Ethics Statement 0 Council. Mr. Rowlands distributes a handou outlining his ma ement philosophy; how he will relate to Departmen Heads; and at he expects from Department Heads. Susan Herney note the ndards" by which new and old employees can know th 'r pectations. The Board thanks Dave Rowlands for his time an presentation. 4.' OrF.ll r.ommlln1CF.lt;ons. None 5. FolJow IIp diRcllssionR rE"garding C'ity WidE" Ethi"R StatE"mE"nt and its PrP-RPntatinn to rounril. Member Schulman suggests the Board discuss this item prior to the new City Manager's arrival. Ellen Gross explains to Board Members why this item was not going before Council on the date the Board previously anticipated. She further explained that Assistant City Manager, Sid Morris requested Ms. Gross obtain additional historical background regarding past attempts to have an Ethics Statement go before Council prior to the presentation of this one '-1 Board of Ethics Minutes June 1, 1998 Page 3 to Council. Ms. Gross offered to share information with Members regarding the prior Agenda and Ordinance of 1989 regarding the Board of Ethics' duties and responsibilities. Members further discuss the issue of the Ethics Statement as merely being a proposal or recommendation and that the Board is not asking or seeking to regulate employees behavior. Member Gibert further states for the record that each department was developing their own Ethics Statement which varied and this Board took the initiative to develop a "City Wide Ethics Statement" that everyone, including employees could be aware of. Chair Gonzales comments how pleased he is with the tone and direction the Board will receive from Mr. Rowlands. Members discuss leaving the "City Wide Ethics Statement" as it currently reads and that Chair Gonzales be present at the Council meeting when this goes before on the Council Agenda. 6. Training rnnrdinatnr Repnrt Ms. McKean has not done any ethics training in two months and therefore has nothing to report. Chair Gonzales and Members discuss those very problems regarding ethics training. It was also noted that the Board Members themselves with the exception of Members Schulman, Herney and Carson have not had any ethics training. Chair Gonzales feels that the Board should address what their own goals are at a future meeting. 7. MpmhprR' romments Richard Schulman comments on the publication he received from Brian Bilbray, Mr. Cox and David Malcolm for endorsement of Mayor Horton and has questions of whether people who were appointed to Boards and Commissions could support political candidates who would participate in the decision to put them on the Board or Commission. The Board discusses the ramifications of proposition 208 as it relates to this and Ms. Gross explains there was an adverse decision, this proposition was unconstitutional and would still be going before the Ninth Circuit. ,-5 COUNCIL AGENDA STATEMENT oks Item Meeting Date: 08 4/98 REVIEWED BY: Resolution 19/ :I.t Approving Request from the Bonita Business and Professional Association to Conduct the Bonitafest and Bonitafest Parade. Chief of pOlice~ Risk Manager~ /~ City Manage1X(~ ~\\ (4/5ths Vote: Yes _ NolU ITEM TITLE: SUBMITTED BY: The Bonita Business and Professional Association is requesting permission to conduct the 26th Annual Bonitafest and Bonitafest Parade on Saturday, September 26, 1998. RECOMMENDATION: That City council adopt the resolution approving a temporary closure of portions of Bonita Road subject to staff conditions. BOARDS ICOMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: The Bonita Business and Professional Association (BBPA) is requesting permission to conduct the 26th Annual Bonitafest and Bonitafest Parade on Saturday, September 26, 1998. They are also requesting a temporary street closure of Bonita Road to stage the parade. The street closure would involve Bonita Road between Willow Street and Central Avenue. Both Willow and Central will remain open at all times during the closure. Streets intersecting Bonita Road between these points would also be affected during the parade. The parade is scheduled to take place between 10:00 AM and 12:30 PM; the street closure would be in effect from approximately 8:00 AM and 1 :00 PM to allow for staffing and dispersion of the parade participants. A diagram of the area is attached (Attachment A). The BBPA is also requesting use of the vacant City-owned lot that is adjacent to and immediately west of the parking lot to the Municipal Golf Course, for staging and dispersal of the equestrian units participating in the parade. The parade will consist of marching units, marching bands, floats, and other motor driven units, as well as equestrian units. All horses will be ridden by their owners, and streamers, balloons and noise making devices will not be permitted along the parade route. The route will be marshaled by sponsor volunteers and the police. The street closures would have an impact on City bus service in the area. Transit would need to cancel or re-route bus service in the area during the parade. Transit has indicated they will erect signs advising of interrupted service. 7-1 Item: -1- Meeting Date: Page --2- 08/04/98 Staff is recommending the BBPA be required to comply with the following conditions if approval of the event is granted: 1. Prior to the event, both the BBPA (the Bonitafest sponsor) and Rotary District 5340 (sponsor of the parade) provide evidence of insurance for their respective sponsorships in the form of a Certificate of Insurance and Policy Endorsement in the amount of $2 million naming the City of Chula Vista as additional insured, and their insurance as primary. 2. Provide adequate traffic control equipment and no parking signs as specified by the Police Department. This would include provision of adequate signage, barricades, and traffic control equipment as specified by the County of San Diego and the Sheriffs Department. 3. Provide adequate Police coverage at the event as determined by the Chula Vista Police Department through coordination with the Chula Vista Police Department and the County of San Diego. 4. Return all City-owned property to pre-use condition including arrangements for professional street sweeping and adequate trash control and disposal throughout the affected area within twenty-four (24) hours after the event. 5. Provide a letter acceptable to the City Attorney from the BBPA in which the BBPA agrees: (A) Not to sue the City, its agents and employees for any act arising from Bonitafest; or (B) To hold the City harmless and to release the City, its agents and employees from any and all liability arising from Bonitafest, excluding only that liability which may arise from the sole negligence or sole willful conduct of the City. FISCAL IMPACT: The amount of $2,410 has been allocated in the City's FY 98-99 Community Promotions budget to offset the cost of the Chula Vista Transit shuttle bus services and police staffing of the event. The BBPA would be responsible for all additional costs incurred in conducting the parade, including provisions for traffic safety equipment, street sweeping services, and other related and required services and supplies. No additional fiscal impact is anticipated. Attachment: "A" - Parade Diagram '7- ~ /- "... . '. .' -' ....... " .,/ '. / ~ , \ ., . . ( ex:. w' -' ....":r. . ',~"'~~ /~ o .~ .<? o 'i \ t-'---~' \ .:,......r .1 ./" \ \. . . - - . \ v' I \ , ,> , \...- " ,~ ?: .'4. . lP: -:t. \-' ~.. '0 '1/) __\.1 - , ',. I _\ t > - --.. .-. ,. .-- (':"'~" , . . , ",\'. . , .' ' '. .' '.. -. -' .' ~.." ):. CD c: ~ . ... . 0 ...---..=...-..-. " ~Th ,. " 7--3 I w .- ~ o a: w o < a: -< ~ .- en w u.. < .- - Z o a:l ~ \- '7. \ll t :t '-' ~~ - l=<t .> en / ,\ , , r, RESOLUTION NO.~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING REQUEST FROM BONITA BUSINESS AND PROFESSIONAL ASSOCIATION TO CONDUCT BONITAFEST AND BONITAFEST PARADE WHEREAS, the Bonita Business and Professional Association (BBPA) will be conducting the Bonitafest event on Saturday, September 26, 1998; and NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the request from the BBPA to conduct the Bonitafest and Bonitafest parade on Saturday, September 26, 1998 subject to the following conditions: 1. Prior to the event, both the BBPA (the Bonitafest sponsor) and Rotary District 5340 (sponsor of the parade) provide evidence of insurance for their respective sponsorships in the form of a Certificate of Insurance and Policy Endorsement in the amount of $2,000,000, naming the City of Chula Vista as additional insured, and their insurance as primary. 2. Provide adequate traffic control equipment and no-parking signs as specified by the Police Department. This would include provision of adequate signage, barricades, and traffic control equipment as specified by the County of San Diego and the Sheriff's Department. 3. Provide adequate Police coverage at the event as determined by the Chula Vista Police Department through coordination with the Chula Vista Police Department and the County of San Diego. 4. Return all City-owned property to pre-use condition, including arrangements for professional street sweeping and adequate trash control and disposal throughout the affected area within twenty-four (24) hours after the event. 5. Provide a letter acceptable to the City Attorney from the BBPA in which BBPA agrees: (A) Not to sue the City, its agents and employees for any act arising from Bonitafest; or (B) To hold the City harmless and to release the City, its agents and employees from any and all liability arising from Bonitafest, excluding only that liability which may arise from the sole negligence or sole willful conduct of the City. Presented by to form by Richard P. Emerson, Chief of Police ,,,/ C:\rs\bonitafs 7-1..( COUNCIL AGENDA STATEMENT Item:~ Meeting Date: 08/04/98 ITEM TITLE: Resolution Iql t3 waiving the bidding process, and approving an agreement with Mr. Frank Chaboudy for provision of professional tennis services and for operation of the Chula Vista Tennis Center SUBMITTED BY: David J. Palmer, Library and Recreation Director~ REVIEWED BY: City Manage~,~ (415ths Vote: Yes _ No Xl The Chula Vista Tennis Center has been operated by a tennis professional, Mr. Frank Chaboudy, since November of 1985, under a series of agreements with the City. A new agreement has been prepared to continue his professional tennis services. STAFF RECOMMENDATION: That the Council approve the Resolution: 1, Waiving the bidding process; and 2. Approving the agreement with Mr. Chaboudy for the continuation of his services as the City's Tennis Professional. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The City constructed a tennis facility on the campus of Southwestern College in 1970, under an agreement with the Sweetwater Junior College District (now known as Southwestern College). Following completion of the project, the City opened and began to operate the Chula Vista Tennis Center at Southwestern College in late 1971, in conjunction with a 30 year joint powers agreement with the College District that delineated respective rights for use of the facility. The Tennis Center has been managed through contractual agreements with tennis professionals since the facility opened. The primary responsibilities of the contractor have been to: 1. Develop and conduct a comprehensive tennis program, including instructional classes for youth and adults. 2. Coordinate City-sponsored tennis tournaments and clinics. 3. Maintain the four tennis courts at the Tennis Center on a daily basis. [h:\home\park8rec\A 113\tennla.pro] 1 ~-I Item: lJ Meeting Date: 08/04/98 During the first 12 years of operations, the City entered into agreements with several tennis professionals. All of them requested termination of their agreements mid-term, citing financial difficulties as the primary reason for termination. In November of 1985, City Council approved an agreement with Mr. Frank Chaboudy to operate the Tennis Center. Since that time, and for the past 12 years, Mr. Chaboudy has successfully operated the Center, and has kept it financially solvent and programmatically sound. His success in developing and maintaining a strong youth tennis curriculum is especially noteworthy, as is his overall programming and management approach, which addresses a variety of demands from a growing community. Mr. Chaboudy has also been very successful as the City's unofficial liaison with Southwestern College, negotiating issues related to the use of campus tennis facilities which are located adjacent to the Tennis Center. Staff believes that Mr. Chaboudy will continue to provide quality services at the Center throughout the course of the new agreement. Mr. Chaboudy is responsible for all expenses related to the day-te-day operations of the Tennis Center. These expenses include utilities (gas, electricity , telephone, water), and all expenses incurred in maintaining the tennis courts including replacement of tennis nets. Additional expenditures include insurance, dues, furniture, advertising and promotion, mileage, office supplies, and instructional materials. These expenses are offset by revenue generated by Mr. Chaboudy through the collection of fees for instructional programs, tournaments, and other specialized programs. The Tennis Professional also collects the revenue from light meter coin boxes at the four night lighted courts. Revenues reported by the Professional in 1997 totaled $32,480. The expenses reported by the Tennis Professional in 1997 totaled $7,625 Major capital improvements at the facility, required by the contract, such as the resurfacing of the courts, are accomplished by the City. The City also collects revenues from the parking permits that are sold to tennis participants. These revenues total approximately $8,000 per year. Cost Benefit to the Citv Staff believes it is more cost effective to contract professional tennis services rather than have an in-house program. Actual facility maintenance costs, along with the costs of supplies and services to operate the Tennis Center would likely be similar to the costs incurred by the Tennis Professional at the current time, approximately $7,600 per year; however, the City would need to purchase office fumiture, office equipment, telephones, and other basic office amenities at an unknown cost. The Tennis Center is open on a year-round basis, 6 days/week, for approximately 8-10 hours/day. This converts to over 2,500 staff hours per year, or 1.20 FTE. In order to maintain quality programming and to provide adequate oversight of the facility, it would be recommended to staff the facility with a full-time staff position (with tennis teaching ability), with additional support being provided by part- time staff. The general maintenance and upkeep of the building would also necessitate a relatively small number of hours of custodial care. Based on staffing including a full-time Recreational Specialist, 450 hours of Recreation Leader, and 150 hours of Custodian I, staff salary and benefit costs would be approximately $36,000. The Tennis Professional currently generates approximately $32,500 in revenue from lessons and other fees, which would offset some City costs. P1:\home\parksrec\A 113\tennis.pro) 2 '8-~ Item: Meeting Date: 08/04/98 f5 Staff is recommending a new 3~ year agreement, which will expire on November 2, 2001. This date coincides with the expiration of the City's 30-year agreement with the Community College District for use of the facilities on the campus. Should the City choose to negotiate an additional use agreement with the College extending the City's use of the facility, the Tennis Professional's contract could be renewed again at that time. In the draft proposed agreement, staff has added recommended language to facilitate the continuation of professional tennis services as needed during any future negotiation period with the College District regarding renewal of facility use. The proposed agreement is essentially unchanged from previous multi-year agreements that the City has entered into with Mr. Chaboudy. Both staff and Mr. Chaboudy concur with the terms contained in the agreement, a copy of which is attached. Waivina the BiddinQ Process Staff is recommending the award of the contract without a formal RFP, since the current Tennis Professional's performance during the last 12 years has been stable and commendable. The award of the contract has no direct fiscal impact on the City, and the programs that the Tennis Professional has developed throughout the years is satisfying the public demand. The Tennis Professional often has waiting lists for certain programs, based on the physical constraints of the facility, and he has successfully balanced the desire for formal programming with the demand for open tennis play. Mr. Chaboudy has complied with all the specifications of the agreements in the past, and there is no reason to believe that he will not continue to do so throughout the term of the new agreement. It should be noted that the City does have the right to terminate the contract if the Tennis Professional is not fully complying with the terms of the agreement. Southwestern Colleae District Aareement Exoiration On November 2, 2001, the 30 year joint use agreement between the City and the College District expires, and the City forfeits any and all formal rights to the use of the Tennis Center facility. The current agreement does not include any re-opening language, nor does it contain any provisions for the negotiation of a new agreement between the two parties. Should the City be interested in pursuing a new agreement with the District for continued use of the facilities, negotiations will need to be initiated by the City. Tennis facilities will be evaluated as part of the revision of the Parks Master Plan. FISCAL IMPACT: There is no fiscal impact associated with the approval of the resolution and agreement. Mr. Chaboudy is compensated for his services directly from revenue he generates through tennis lessons and the operation of the Pro Shop. Attachment: Agreement for Tennis Services {h:\home\parksrec\A 113\tennls.pro] 3 ~'3 ,""t." }"' RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BIDDING PROCESS, AND APPROVING AN AGREEMENT WITH FRANK CHABOUDY FOR PROVISION OF PROFESSIONAL TENNIS SERVICES AND FOR OPERATION OF THE CHULA VISTA TENNIS CENTER, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, the Chula Vista Tennis Center has been operated by a tennis professional, Frank Chaboudy, since November, 1985, under an agreement with the City; and WHEREAS, based on the history of this program and because of the nature of the services provided by Mr. Chaboudy, advertising for bids would be impractical; and WHEREAS, a new agreement has been prepared to continue his professional tennis services for an additional 3 -1/2 years until November of 2001 with an option to continue services during the period of contract negotiations between the City and Southwestern Community College. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the bidding process and approve an Agreement with Frank Chaboudy for Professional Tennis Service and for Operation of the Chula Vista Tennis Center, a copy of which is on file in the office of the City Clerk as Document No. r 095<'-1.1-0 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 c:\rs\tennis.pro David J. Palmer Library Director S-Jf AGREEMENT FOR TENNIS SERVICES AND PERMIT FOR USE OF THE CHULA VISTA TENNIS CENTER THIS AGREEMENT, made and entered into in the City of Chula Vista, California, this by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "CITY", and FRANK CHABOUDY, Tennis Professional, hereinafter referred to as "PROFESSIONAL"; WITNESSETH: WHEREAS, the City is the owner of four tennis courts ("Courts") and a small ancillary structure currently housing a pro shop, lounge, restrooms ("Pro Shop") located at the Southwestern Community College campus in the City of Chula Vista (the courts and Pro Shop and related ancillary grounds, including the parking shall herein be referred to as "Tennis Complex" or "Complex"); and, WHEREAS, particular the good quality services; andl City desires that the general public, and in residents of the City of Chula Vista, should have a of municipally provided tennis facilities and WHEREAS, Professional represents and warrants that he is to provide tennis instruction and complex management maintenance according to the terms of this agreement; able and NOW, THEREFORE, in consideration of the terms and conditions contained herein, Professional agree as follows: premises and upon the the City and the I. License to Occupy and Use. For the Term of this Agreement, City hereby grants a revocable license to Professional to occupy and use the Tennis Complex for the purposes of permitting the public to learn, enjoy and play the sport of tennis, and in the manner herein specified: II . TERM A. The nominal term of this agreement, subject to special termination or extension as herein below provided, shall be for forty-one (41) months beginning on June 8, 1998, and ending at midnight on November 2, 2001 ("Nominal Term") . B. Special Extension. Notwithstanding the preceding subsection, City and Professional upon mutual written agreement may extend the nominal term of this Agreement so that the Professional may continue operations at the Tennis Complex as specified herein 1 %..s cD9g.(~O '1<t~(~3 during the time that contract negotiations by City and Southwestern Community College for use of the site are occurring. C. Special Termination. Notwithstanding subsection A, and in addition to the other remedies provided by City within the terms of this agreement, City shall have the right, upon thirty (30) days notice to the Professional to cancel this agreement if, in the opinion of the City Manager, the operations conducted by Professional are unsatisfactory and, after Professional has been granted thirty (30) days to correct same, they have not been corrected. In the event of such cancellation, the replacement Professional obtained by the City shall purchase from Professional his non-returnable inventory of merchandise for sale at Professional's cost and his equipment at its fair market value. In the event of disagreement on values, the City Manager shall establish a value which shall be binding upon the parties to this agreement. D. Definition: Term. As used herein, "Term" shall refer to the period of time during which this agreement is actually in effect which shall be the Nominal Term unless specially terminated as herein provided. E. At the conclusion of the Term of this agreement, the City reserves the right to solicit and advertise for new proposals to operate and manage the tennis facilities. F. Upon the expiration of the agreement, the Professional shall be expected to put the premises in as good a condition as at the beginning of said contract, ordinary wear and tear excepted. G. During the last thirty (30) days of the Term of this agreement, or within thirty (30) days of any cancellation or other expiration, Professional shall remove at his own expense his own furniture, furnishings, equipment and fixtures. Should Professional fail to remove said items within said thirty (30) day period, he shall lose all rights, title and interest in said items, and City may elect to keep same upon the premises or to sell, remove or demolish them. In the event of such sale, removal or demolition, Professional shall reimburse City for any cost in excess of any consideration received by City as a result of said sale, removal or demolition. III. FINANCIAL MATTERS A. Accounting Matters. 1. The Professional shall keep adequate books and records, make all tax returns and pay all taxes required in connection therewith in his own name. Such books and records shall be the property of the Professional but shall be open to the inspection of the City by and through its City Manager or other 2 ~-~ duly authorized agent at reasonable times during business hours. The Professional shall be required to maintain a method of accounting of all the receipts and disbursements received or made by said Professional from the operation of said concession. 2. The bookkeeping records installed and maintained by the Professional shall be approved as to form by the City and shall permit the preparation of statements of profit and loss and balance sheet. The Professional shall submit to the City, on a semi-annual basis, a financial statement indicating all profits, losses, and balances of the operation of said Tennis Center. The City may inspect and audit books and accounts and records of the Professional at all times. B. Responsibility for Utilities. The Professional shall pay all charges for gas, electrical utilities, telephone service, and court washing expense necessary to carryon the operations of the tennis complex unless otherwise specified in the permit. IV. CONSIDERATION FOR PROFESSIONAL. As consideration for the services and the services of all additional understood and agreed by the parties may retain the following revenue provisions of this Agreement: rendered by the Professional employees, it is expressly hereto that the Professional charged according to the 1. All revenues from tennis lessons. 2. All revenues from the sale and/or repair of tennis equipment. A. All fees collected at the Tennis Complex shall be the exclusive property of the Professional. These fees shall be based upon a posted fee rate and must be consistent with those charges being made at other facilities within San Diego County. Any change in these charges will be made only upon prior approval of the Director of Public Works. V. DUTIES OF THE PROFESSIONAL A. Operation of Pro Shop. 1. Supplies and Equipment. The Professional shall at his discretion keep and maintain for sale an inventory of supplies and equipment in keeping with the demand of the Tennis Complex and shall keep these items at prices recommended by the manufacturers of said merchandise. The Professional shall operate all concessions as an independent 3 ~-7 contractor. He shall purchase and pay for all materials and merchandise used or sold in the operation of said concession in his name, and at his own responsibility, and receive and retain all income derived from the operation as his own and for sole use and benefit. 2. Maintenance of Pro Shop Premises. The Professional shall keep the Pro Shop premises assigned by this agreement in a clean and sanitary condition and free from rubbish at all times and shall assume complete responsibility for janitorial services for said premises. 3. Equipment Servicing. The Professional shall be required to provide all maintenance, repair and service required on all equipment used at the Complex, or sold at the Pro Shop. a. City Equipment. In the event City owned equipment is used, the City shall have the right to prescribe in detail the type and frequency of maintenance and repair to be performed by the Professional. Because of the City's interest in preserving its equipment and providing clean and sanitary conditions in the event the Professional fails to perform the work prescribed pursuant to the above on City or Professional owned equipment, the City Manager or Director of Public Works shall have the right, after ten (10) days written notice to correct the deficiency, to cause the prescribed work to be performed in an efficient manner and to charge the Professional for the cost thereof. Cost shall be equal to the sum of the cost of the direct labor and materials necessary to perform the work in an efficient manner plus overhead cost. No equipment provided by the City shall be removed or replaced by the Professional without prior written consent of the City Manager and if consent is secured, such removal and/or replacement shall be to the sole cost and expense of the Professional. 4. Furniture and Furnishings. The Professional shall furnish and install at his own expense in the Tennis Pro Shop building, all necessary furniture, furnishings and equipment required in order to render sufficient and adequate service, as determined by the City. Professional further agrees that all furniture, furnishings and equipment will be maintained and kept intact by repair or replacement as required at Professional's expense. B. Maintenance and Operation of Tennis Complex. The Professional shall provide necessary materials and 4 9"-~ personnel at his own expense to adequately cover the operation of the Tennis Complex, including specifically the Pro-Shop and four (4) tennis courts, during the operating hours hereafter referred to. 1. Courts. Professional shall be required to clean the four (4) City-owned tennis courts daily before 9:00 a.m., cleaning to including picking up of rubbish on courts, emptying trash containers, sweeping off excessive dirt from courts; washing of said courts must be on a regular weekly schedule prior to 8: 00 a.m., except during drought conditions, in which case, they should be washed in accordance with a schedule approved by the Director of Public Works. 2. Nets. all tennis nets. The Professional shall maintain and replace 3. Parking Permits. The Professional shall distribute parking permits for City-owned tennis facilities. Permits shall be provided by the City. 4. Light Coin-Meters. The Professional shall collect all revenues from City-owned light meters. 5. Help. The Professional shall employ any and all assistants that may be necessary to carry out the terms and provisions of this agreement and shall pay their salaries and such other and further sums as may be required of them for tax and other purposes. If these assistants collect or handle any money due the City of Chula Vista, they shall be approved as provided herein by the City before being employed by the Professional. If, for any reason, any of said assistants shall display flagrant misconduct, he/she shall be dismissed at the request of the City Manager. 6. Staffing and Hours of Operation. a. Except as may be otherwise provided by the City, the Professional or a similarly qualified assistant shall be present at the Tennis Complex during all hours in which the complex is open to operate, supervise, promote and manage the functions authorized by this agreement. b. The Professional, his agents or employees in sufficient number to handle Tennis Complex activities, shall be on duty daily at the Tennis Complex, Monday through Saturday, weather permitting, from 9:00 a.m. to 5:00 p.m., excluding Sunday and holidays. Provisions shall be made to provide a method in receiving telephone calls while on the court giving lessons. The Pro Shop may be kept open additional hours at the discretion of the Tennis Professional to meet the needs of the public. 5 )S--~ c. The Professional shall not be absent from the Tennis Complex for an excessive period in any week unless he is representing the City of Chula Vista by performing in a tennis tournament. Such attendance must have the consent of the Director of Public Works, except in instances of illness or during vacation periods. 7. Maintenance of a Health-Conscious Environment. Professional shall take such steps as are necessary to create a health-conscious environment at the Tennis Complex. The determination of such steps to take shall be made in the discretion of Professional except that such steps shall include the prohibition against smoking and against the consumption of alcohol and illegal drugs at the Tennis Complex. C. Tennis Lessons. It is agreed that in addition to his other duties hereunder, the Professional shall cause instruction to be given in the game of tennis. Tennis instruction shall be given only to bona fide instructees, with individual lessons confined to one court at a time (exception see Premises). Adult group lessons may be conducted provided prior written approval is obtained from the City both as to the hours during which group lessons may be conducted and the location of courts which shall use only one court if five (5) or less persons undertake group lessons and two (2) courts if six (6) or more persons undertake instruction. Fees for such instruction shall be in keeping with accepted custom and practices in the tennis profession. Classes will be completely self-sustain- ing. All proceeds will go to the Tennis Professional. 1. Professional shall be entitled to physically occupy one (1) and, with the City's advance consent, possibly two (2) courts at the Tennis Complex for the purpose of providing tennis lessons to members of the public according to the following times, days and rules: a. The professional may be permitted the use of a second court at the tennis center in accordance with the following conditions: (1) A second teaching court may be used with prior written approval from the Director of Public Works. Times and day must be included in any such request. (2) If the Professional is using a second court at times and days not approved, the following condition for usage must be adhered to: (a) No player may be asked to relinquish his court in order to provide additional usage for the Professional 6 )J--.Il> to make up canceled lessons. (b) Professional must relinquish the additional court to waiting players after completion of the lesson in progress or after thirty (30) minutes. D. Tennis Events. 1. The Tennis Professional will area-wide open tennis tournaments annually, one for Chula Vista residents only. also coordinate of which shall be 2. The Professional shall coordinate, promote and schedule such tennis events sponsored by, by way of illustration but not limitation, the City of Chula Vista, convention type organizations, and such other recognized organizations as may from time to time request scheduling of tennis events. 3. Youth Tennis Program. The Professional shall utilize all four (4) tennis courts at the tennis center Monday-Friday between the hours of 3:30 p.m. and 7:00 p.m.; and Saturday between the hours of 1:00 p.m. and 3:00 p.m. for the Youth Tennis Program. In addition, Professional shall utilize two (2) tennis courts at the center on Sundays between the hours of 1:00 p.m. and 5:00 p.m. for the Youth Tennis Program. Chula Vista residents shall receive priority over non-residents in this program. 4. Adult Doubles Program. The Professional shall util- ize two (2) tennis courts at the center from 6:30 p.m. to 7:00 p.m., and all four (4) tennis courts from 7:00 p.m. to 8:00 p.m. on Wednesday for an open-enrollment adult doubles program. Chula Vista residents shall receive priority over non-residents if par- ticipation reaches maximum levels in this program. 5. in the Junior average of at Access to Youth Tennis Program. Tennis Program must maintain an least 2.0. Youth participating academic grade point E. Complex Promotion. Under the direction of the City, the Professional shall advertise and promote the Tennis Complex and shall be responsible for such promotional functions. The Director of Public Works or his/her designee shall approve all promotional material prior to distribution. F. Signage. No signs or advertising matter shall be displayed outside such premises without prior consent of the City. 7 ~-II G. City's Inspection Rights. The City shall have the right to enter upon said premises at any and all reasonable times during the term of the permit for the purpose of inspection and observation of the Professional's operations. It is further agreed that the inspections may be made by City employees, or may be made by independent contractors engaged by the City. The City shall have the right to inspect for the purposes set forth below; however, the enumerations below shall not be construed to limit the City's right of inspection for any purpose incidental to the right of the City Manager: 1. To determine if the terms and conditions of this permit are being complied with. 2. To observe transactions between the Professional and patrons in order to evaluate the quality and quantities of other items sold or dispensed, the courtesy extended to and method of dealing with the public, the performance and caliber of the Professional's employees, and the methods of recording receipts. It is understood that the information gathered on these inspections will be used to evaluate the Professional to provide a basis for any action by the City Manager or Director of Public Works or City for the removal or denial or renewal of this permit. H. Indemnity Provisions. The Professional shall indemnify and hold harmless the City, its officers, employees, or agents from any claims arising from the use of the premises or from the operation of the Tennis Professional Shop. I. Insurance. The Professional shall provide and maintain throughout the term of this Agreement a policy of general liability and property damage insurance approved by the City Attorney with limits of $300,000 for injury to anyone person and anyone accident, $500,000 to two or more persons from anyone accident or occurrence, and $50,000 for property damage or $500,000 combined single limit and shall also carry a policy for Worker's Compensation Insurance covering any and all employees. Certificates evidencing coverage and a policy endorsement for the general liability policy which names the City of Chula Vista as additional insured shall be filed with the City Clerk, 276 Fourth Avenue, Chula Vista, CA. J. Alterations or Additions. It is further understood and agreed that the Professional shall not make any alterations or additions to the Pro Shop or to 8 l- - J" any equipment belonging to the City without first having the consent of the City to such change or alteration. 1. The Professional shall be fully aware of the material conditions of the Tennis Complex and tennis facilities at all times, and as the conditions dictate, make specific recommendations to the City for corrective actions as the City deems necessary. The Professional shall not be held responsible for work performed or lack of same by the City. VI. City's Duties Regarding Professional and Tennis Complex. A. Exterior Pro Shop Maintenance. City agrees to maintain and repair the exterior and related portions of the Pro Shop building, excluding repairs of major proportion which are subject to coverage by Professional's insurance. VII. Assignability. It is expressly understood and agreed that the Professional may not sign or transfer any of the rights, licenses, or privileges or any part thereof of this agreement without the written consent of the City Council having been obtained. The agreement cannot be assigned involuntarily or by operation or process of law and should the Professional be adjudged bankrupt or become insolvent or make a general assignment for the benefit of his creditors or fail to obtain the release of any levy of attachment or execution upon his payment within ten (10) days after such levy is made, the City may consider such to be a breach of the agreement and may cancel and terminate same. [NEXT PAGE IS SIGNATURE PAGE] ~1j;1J ~~C~ ~O'" 9 ~-J3 ITEM TITLE: Item :tQ Meeting D;{; 8/4/98 Resolution)" ~ I/- Approving Final "A" Map No.1 for Chula Vista Tract No. 96-rJ. Otay Ranch SPA One Village 5, Rejecting on Behalf of the Public East Palomar Street, Olympic Parkway and the Easement for Street and Public Purposes. Accepting on Behalf of the City of Chula Vista the Public Drainage Easements and the Assignable and Irrevocable General Utility and Access Easements Granted on Said Map within Said Subdivision. Acknowledging on behalf of the Public the Irrevocable Offers of Dedication of Fee Interest of East Palomar Street, Olympic Parkway and the Easement for Street and Public Purposes Lot "G" for Public Park Purposes, Lot "H" for Open Space and Lot "I" for Public Improvements. Resolution 1 q \ 1-.6 Approving "A" Map Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 96-04, Otay Ranch SPA One Portion of Village 5 and authorizing the Mayor to Execute Said Agreement . .. / SUBMITTED BY: Director of Public W orkr)f QN'V REVIEWED BY: City Manage~ \.)Ji~ (4/5ths Vote: Yes_No...x) On November 19, 1996, by Resolution No. ~398, the City Council approved a portion of the Tentative Subdivision Map for Chula Vista Tract 96-04, Otay Ranch SPA One (Otay Ranch Villages One and a portion of Village Five, excluding 288 Acres located in a portion of Villages One and Five). On March 25, 1997, by Resolution No. 18613, the City Council approved a portion of the Tentative Suddivision Map 96-04 (Otay Ranch Village Five, Neighborhoods 28, 29, 30, 31 and 39). Condition No. 117 of the Resolutions require the developer to submit and obtain approval of the City of a master fmal map (" A" Map) over the portion of the tentative map within each Village area showing "super block" lots. The "A" map is also required to show the backbone street dedications and utility easements required to serve the "super block" lots. All "super block" lots created are also required to have access to a dedicated public street. The fIrst fInal "A" Map and associated agreement for Otay Ranch SPA One Village 5 are now before Council for approval. COUNCIL AGENDA STATEMENT RECOMMENDATION: That Council approve the Resolution approving the Final "A" Map and the "A" Map Supplemental Subdivision Improvement Agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The project is generally located south of Telegraph Canyon Road, north of future Olympic Parkway, and east of the McMillin Otay Ranch Project. 9-1 Page 2, Item ,. Meeting Date ~ The fInal "A" Map No.1 for Chula Vista Tract 96-04, Otay Ranch SPA One Village 5, consists of a total of 21 "Super Block" lots, (which will be further subdivided), two lettered lots to be reserved for future SR 125 right-of-way, and one City Park lot. A plat of the subdivision is attached herewith as Attachment 2. The fInal map for said subdivision has been reviewed by the Public Works Department and found to be in substantial conformance with the approved Tentative Map. Approval of the map constitutes acceptance by the City of all assignable and irrevocable general access and utility easements and all public drainage easements within the subdivision. Approval of the map constitutes rejection on behalf of the public of East Palomar Street, Olympic Parkway and the street easement for street and other purposes between the Otay Water District parcels. Approval of the map also constitutes acknowledgment on behalf of the public of Irrevocable Offers of Dedication of East Palomar Street, Olympic Parkway and acknowledgment on behalf of the City of Irrevocable Offers of Dedication of Fee Interest for Lots "G" for Public Park Purposes, "H" for Open Space and "I" for public improvements. The latter two lots are being reserved for State Route 125. The dedicated streets are being rejected because the developer does not have an obligation to guarantee construction of the public streets until future phases of the project are considered for approval in accordance with the conditions of approval of the tentative map. However, under the Subdivision Map Act, such offers of dedication are to remain open subject to future acceptance by the City Council. When the improvements for each of these streets have been completed, staff will prepare a resolution proposing acceptance of the streets for public use and maintenance. Construction of access improvements in the easement between the Otay Water District parcels will be guaranteed in conjunction with future development. Irrevocable Offers of Dedication are being made for Olympic Parkway and a portion of East Palomar which are not required to be constructed until a later phase of development. Under Section 7050 of the Government Code, such irrevocable offers of dedication may be accepted at any time. Irrevocable Offers of Dedication of Fee Interest are being made for the City Park Lot "G" because the developer does not have an obligation to guarantee improvement of the Park until the first fInal "B" Map is considered for approval. Condition No. 29 of Resolution Nos. 18398 and 18613 approving the Tentative Map required the developer to grant in fee to the City the right-of-way for the future Light Rail Transit (LRT) system as indicated on the approved Tentative Map. The right-of-way for said LRT system has not been dedicated in fee on the map, but has been included as part of the right-of-way for East Palomar Street. The Metropolitan Transit Development Board (MTDB) will use the City's rights- of-way within East Palomar Street in the future through a franchise or joint .use agreement. MTDB has approved the right-of-way and horizontal and vertical alignments of East Palomar Street. 9-~ Page 3, Item -9- Meeting Date 8\4\98 The developer has executed an "A>> Map Supplemental Subdivision Improvement Agreement which addresses several conditions of the tentative map, including but not limited to: provisions for secondary transit stop facilities on East Palomar Street; payment of Park Acquisition and Development fees for SPA One Community Parks; submittal of, and action by the City on, an application for an amendment to the Otay Ranch General Development Plan for the replacement of the Village Seven High School location with a site in either the area west of Paseo Ranchero in Village One or the northern portion of Village Two; delivery of graded elementary school sites, including utilities, located within Village One, Village Five and west of Paseo Ranchero prior to the approval of the 500th, 2500th and 4500th residential permit, respectively, within Tentative Subdivision Tract No. 96-04; provision of development and improvement phasing schedules based upon the approved SPA One Public Facilties Financing Plan; agreement to comply with all applicable Municipal Code Requirments. The conditions of approval of Resolution Nos. 18398 and 18613 (Tentative Subdivision Tract No. 96-04) that are satisfied by the Supplemental Subdivision Agreement and listed herein are as follows: Nos. 1,3,4,5,23,28,75,76,79, 82(c) and 91,83,90, 103 (d), 109, 110, 111, 112, 113, 126/127(1), 127/128(1), 128/129(1), 130/131 (cP), 131/132 (1) and 136/137(1): Condition No. 1 - (General Preliminary). In satisfaction of Condition No. 1 of Resolution Nos. 18398 and 18613, Developer hereby agrees, to comply with the requirements and guidelines of the Parks, Recreation, Open Space and Trails Plan, Public Facilities Financing Plan (npFFpn), Ranch Wide Affordable Housing Plan, SPA One Affordable Housing Plan, and the Non-Renewable Energy Conservation Plan, as may be amended from time to time, and shall remain in compliance with and implement the terms, conditions and provisions of said documents. Condition No. 3 - (General Preliminary). In satisfaction of Condition No. 3 of Resolution Nos. 18398 and 18613, Developer agrees that if any of the terms, covenants or conditions contained within the Resolution shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to deny the issuance of building permits for the Project, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The applicant shall be notified ten (10) days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable period of time. Condition No.4 - (General Preliminary). In satisfaction of Condition No.4 of Resolution Nos. 18398 and 18613 , Developer agrees to indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project andlor any or all entitlements and approvals issued by the City in connection with the Project. 1 Council approved two Resolutions that apply to separate areas of Tentative Map 96-04. The two Resolutions are identical except that condition number 119 was deleted (intentionally) from Resolution 18613. Therefore some conditions which are worded the same in both Resolutions are numbered differently in their respective Resolutions. These condition numbers are: Resolution 18613 - 126. 127, 128, 130(c), 131 and 136; Resolution 18398 - 127, 128, 129, 131(c), 132 and 137. f-3 Page 4, Item q Meeting Date ~ Condition No.5 - (General Preliminary). In satisfaction of Condition 5 of Resolution Nos. 18398 and 18613, Developer hereby agrees, that Developer shall comply with all the applicable SPA conditions of approval. Condition No. 23 - (SR 125 Dedication). In satisfaction of Resolution Nos. 18398 and 18613, the Developer has made an Irrevocable Offer of Dedication (laD) on the final "A" Map for the right-of-way for SR 125. Said right-of-way is contained in two lots Irrevocably Offered for Dedication to the City for open space, transportation and other public purposes. The laD is attached as a part of this agreement per Exhibit B. Condition No. 28 - (Transit Stop Facilities). In satisfaction of Condition No. 28 of Resolution Nos. 18398 and 18613, Developer agrees to the following: a. Secondary Transit Stop Facilities. Developer agrees to construct, at its sole expense, two "secondary transit stop facilities" consisting of all of the following: bus turn-out improvements near the Community Purpose Facility CPF-5, two bus shelters, and other related improvements, as described in the PFFP and as approved by the City Engineer, at locations along East Palomar Street to be determined by the City Engineer. The bus turn-out facilities shall be constructed in accordance with the Improvements Plans approved by the City Engineer. Developer shall construct the secondary transit stop facilities in two phases; the first phase shall consist of the turn-out facilities, the second phase shall consist of the bus shelters and related improvements. Developer shall commence construction of the first phase improvements concurrent with the commencement of construction of the street improvements for that portion of East Palomar Street containing said improvements. Developer agrees to commence construction of the second phase improvements within 90 days after receiving written notice from the Director of Public Works to commence construction of the second phase improvements. Developer agrees to complete construction of said facilities within two years after commencing construction of such improvements. i. First Phase Improvement Securities. Developer shall provide the City with improvement securities, approved as to form by the City Attorney, in an amount equal to 110 % of the cost of constructing the first phase improvements as estimated by the City Engineer. The improvement securities shall be provided to the City prior to commencing construction of such improvements and concurrent with Developer furnishing improvement securities for that portion of East Palomar Street containing said First Phase Improvements. The improvement securities shall be released upon completion of the improvements. ii. Second Phase Improvement - Cash Deposit. Developer shall provide the City with a cash deposit in an amount equal to 110% of the cost of constructing the second phase of improvements as estimated by the City Engineer. The cash deposit shall be provided by Developer to the City when either requested by the City Engineer or prior to Developer commencing construction of that portion of East Palomar Street containing the second phase improvements, 'whichever event shall occur first. The cash deposit shall be released upon completion of the improvements. Upon request by Developer, the amount of the cash deposit may be reduced by the City Engineer subject to the City Engineer's sole discretion. 9-1 Page 5, Item -5- Meeting Date 8\4\98 b. Agreement Not to Protest. Developer hereby agrees not to protest the formation and inclusion of the property in a regional benefit assessment district to finance the construction of the Light Rail Transit. This agreement to not protest the inclusion of these public improvements shall not be deemed a waiver of the right to challenge the amount of any assessment which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. c. Pedestrian Bridges. Developer acknowledges and agrees that the "pedestrian bridge" concept is an integral element of the Project's Village Design Plan. Developer has requested that a Development Impact Fee ("DIF") be established for the future construction of the bridges. Developer hereby agrees that prior to the first fmal "B" Map, if no DIF mechanism has been adopted by the City Council, the Developer shall provide cash or security to guarantee its fair share, as fair share is determined by the City Engineer, of the pedestrian bridges connecting Villages One to Two, Villages One to Five, and Villages Five to Six. If a Development Impact Fee ("DIF") mechanism is adopted by the City Council and the statutory period for challenging the DIF has expired without a challenge to the DIF, the cash deposit or security shall be released to the Developer; provided, however, the City shall subtract from said deposit or security an amount equal to the DIF payments that were not paid for any building permits issued for the project prior to the establishment of the DIF. Developer acknowledges that if no DIF mechanism is established for any reason, the City has the right to retain the cash deposit or security to pay for the construction of said pedestrian bridges. Condition No. 75. (Neighborhood Parks). In partial satisfaction of Condition No. 75 of Resolution Nos. 18398 and 18613, Developer agrees to install all local (neighborhood) parks consistent with the PFPP and agrees to install said parks, in accordance with a phasing schedule approved by the Director of Planning. Developer shall submit the schedule describing the time frames for installation of each park to the Director of Planning for the Director's review and approval prior to approval of the first "B" Map. Condition No. 76. (Neighborhood Parks). In partial satisfaction of Condition No. 76 of Resolution Nos. 18398 and 18613, Developer agrees that all local parks shall be designed and constructed consistent with the provisions of the Chula Vista Landscape Manual and related City Planning, Park and Recreation specifications and policies. Condition No. 79 (pAD Fee Reimbursement). In accordance with Condition No. 79 of the Resolution, the parties to this Agreement agree to negotiate in good faith a PAD fee reimbursement schedule in coordination with each construction schedule approved by the City. Milestones will be established for partial reimbursement during the construction process. Developer agrees that the City may withhold up to 20% of the park construction funds until the park has been completed and accepted. Reimbursement of PAD fees shall include the interest accrued by the City on said PAD fees minus the City's cost of processing and administering this reimbursement program. Condition No. 82(c) and 91 - (IODs). In satisfaction of Condition No. 82 (c) and 91 of Resolution Nos. 18398 and 18613, Developer has made an Irrevocable Offer of Dedication (lOD) to the City, in accordance with Government Code Section 7050, a fee interest, free and clear of 7'-5 Page 6, Item -5- Meeting Date 8\4\98 all encumbrances, in the real properties shown on the "A" Map as park lots and open space lots and offered to the City for acceptance on such map. The IOD is attached as part of this per Exhibit B. Condition No. 83 - (Community Parks). In satisfaction of Condition No. 83 of Resolution Nos. 18398 and 18613, Developer agrees as follows: a. Prior to the approval of each final "B" Map, the Developer shall pay PAD fees for the Community Park based upon a formula of 1 acre per 1 ,000 residents, until such time as a turn-key facility has been accepted by the Director of Planning. Said turn-key facility is subject to a reimbursement mechanism to be agreed upon by the parties. b. The parties to this Agreement agree to negotiate in good faith any subsequent agreements or amendments to this Agreement, prior to the fIrst fmal "B" Map that may be needed to fulftll Condition No. 83 of this Resolution, pertaining to the installation of said park improvements. Condition No. 90 - (No Protest of Maintenance District or Assessment District). In satisfaction of Condition No. 90 of Resolution Nos. 18398 and 18613, Developer hereby agrees not to protest the formation of, or the inclusion in, a maintenance district, including a community facility district or a benefIt zone, for the maintenance of landscaped medians and scenic corridors along streets within and adjacent to the subject subdivision. This agreement to not protest the inclusion of these public improvements shall not be deemed a waiver of the right to challenge the amount of any assessment which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. Condition No. 103 (d) - (Hold Harmless from Erosion Liability) In satisfaction of Condition No. 25 of Resolution Nos. 18398 and 18613, Developer agrees to hold the City harrn1ess from any liability for erosion, siltation or increase of flow of drainage resulting from this Project. Condition No. 109 - (Backbone Facilities). In satisfaction of Condition No. 109 of Resolution Nos. 18398 and 18613, and Section 7.1 of the Development Agreement, Developer agrees to construct the backbone facilities identifIed under Condition 109 in accordance with the time frames to be established pursuant to Condition 109. The parties to this Agreement agree to negotiate in good faith any subsequent agreements as may be needed to fulfIll Condition No. 109 of this Resolution, pertaining to the installation of said backbone facilities. Developer further agrees to provide security for the said facilities in accordance with Condition 109. Condition No. 110 - (Schools). In partial satisfaction of Condition No. 110 of Resolution Nos. 18398 and 18613, the Developer agrees to the following: a. Developer has prepared and submitted an application for an amendment to the Otay Ranch General Development Plan that shows the replacement of the Village Seven High School location with a site in either the area west of Paseo Ranchero in Village One or the northern portion of Village Two. The Developer agrees that the City shall not issue building permits for f-(, Page 7, Item q Meeting Date ~ more than 1,400 units within SPA One until the City has acted on said proposed plan amendment, unless the Sweetwater Union School District consents to the further issuance of such permits. b. The Developer agrees to deliver to the Sweetwater Union School District a graded high school site including utilities provided to the site and an all-weather access road acceptable to said District prior to issuance of the 2,650th building permit for the Property or upon written request by the District not prior to 1,8ooth such permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Sweetwater Union High School District as based on District facility needs. Condition No. 111 - (Schools). In partial satisfaction of Condition No. 111 of Resolution Nos. 18398 and 18613, the Developer hereby agrees to deliver to the Chula Vista Elementary School District, a graded elementary school site including utilities provided to the site and an all weather access road acceptable to the District, located within Village One, prior to issuance of the 500th residential building permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Chula Vista Elementary School District as based on said District's facility needs. Condition No. 112 - (Schools). In partial satisfaction of Condition No. 112 of the Resolution, the Developer agrees to deliver to the Chula Vista Elementary School District, a graded elementary school site including utilities provided to the site and an all-weather access road acceptable to the District, located within Village Five, prior to issuance of the 2,500th residential building permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Chula Vista Elementary School District as based on said District's facility needs. Condition No. 113 - (Schools). In partial satisfaction of Condition No. 113 of the Resolution, the Developer agrees to deliver to the Chula Vista Elementary School District, a graded elementary school site including utilities provided to the site and an all-weather access road acceptable to the District, located west of Paseo Ranchero, prior to issuance of the 4,5ooth residential building permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the School District as based on said District's facility needs. Condition No. 126/127 - (Development Phasing Plan). In satisfaction of Condition No. 126 of Resolution No. 18613 and Condition No. 127 of Resolution No. 18398, Developer agrees that if phasing is proposed within an individual map or through multiple [mal maps, the Developer shall submit and obtain approval for a development phasing plan by the City Engineer and Director of Planning prior to approval of any [mal map. Improvements, facilities and dedications to be provided with each phase or unit of development shall be as determined by the City Engineer and Director of Planning. The City reserves the right to require said improvements, facilities and/or dedications as necessary to provide adequate circulation and to meet the requirements of police and fire departments. The City Engineer and Planning Director may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. 7'-7 ,I , , Page 8, Item q Meeting Date ~ Condition No. 127/128 - (PFFP). In satisfaction of Condition No. 127 of Resolution No. 18613 and Condition No. 128 of Resolution No. 18398, Developer agrees to the following: Adhere to the PFFP and any amendments thereto, approved by the City Council, including but not limited to the, SPA and tentative map improvements installed in accordance with said Plan or as required to meet threshold standards adopted by the City. Developer and City acknowledge that the PFFP identifies a facility phasing plan based upon a set of assumptions concerning the location and rate of development within and outside of the project area. 'Throughout the build-out of SPA One, actual development may differ from the assumptions contained in the PFFP (i.e., the development of EastLake III). Developer understands that neither the PFFP nor any other SPA One document grant the Applicant an entitlement to develop as assumed in the PFFP, or limit the SPA One's facility improvement requirements to those identified in the PFFP. Developer acknowledges that compliance with the City's threshold standards, based on actual development patterns and updated forecasts in reliance on changing entitlements and market conditions, shall govern SPA One development patterns and the facility improvement requirements to serve said development. In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan or amendment to the Growth Management Program and Ordinance adopted by the City. Developer understands and agrees that the City Engineer may modify the sequence of improvement construction should conditions change to warrant such a revision. Developer agrees that concurrent with the approval of the first final map approved after a Public Facility Financing Plan has been approved for the EastLake III GDP Area, the Developer shall update, at Developer's sole expense and subject to a Reimbursement Agreement, the SPA 1 PFFP and agrees that the City Engineer may change the timing of construction of the public facilities, including without limitation, the nature, sizing, extent and timing for the construction of public facilities caused by SPA One, shall become a condition for all subsequent SPA One entitlements, including tentative and final maps. Condition Nos. 128/129 - (Code Requirements). In satisfaction of Condition No. 128 of Resolution Nos. 18613 and Condition No. 129 of Resolution Nos. 18398, Developer agrees to comply with all applicable sections of the Chula Vista Municipal Code. Developer further agrees that any final map for the Project and all plans for said Project shall be prepared in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. Condition Nos. 130/131 (c) - (Sewer Fees) In satisfaction of Condition No. 130 (c) of Resolution Nos. 18613 and Condition No. 131 (c) Resolution Nos. 18398, Developer shall pay all applicable sewer fees, including but not limited to sewer connection fees (including such fees for school sites). Condition No. 131/132 - (Code Requirements). In satisfaction of Condition No. 131 of Resolution Nos. 18613 and Condition No. 131 of Resolution Nos. 18398, Developer agrees to comply with all relevant Federal, State, and Local regulations, including the Clean Water Act. The Developer shall be responsible for providing all required testing and documentation to demonstrate said compliance as required by the City Engineer. f-~ Page 9, Item 9 Meeting Date ~ Condition No. 136/137 - (Code Requirements). In satisfaction of Condition No. 136 of Resolution Nos. 18613 and Condition No. 137 of Resolution Nos. 18398, Developer agrees to comply with Chapter 19.09 of the Chula Vista Municipal Code (Growth Management) as may be amended from time to time by the City. Said chapter includes but is not limited to: threshold standards (19.09.04), public facilities finance plan implementation (19.09.090), and public facilities fmance plan amendment procedures (19.09.100). Developer further acknowledges and agrees that the City is presently in the process of amending its Growth Management Ordinance to add a proposed Section 19.09.105, to establish provisions necessary to ensure compliance with adopted threshold standards (particularly traffic) prior to construction of State Route 125. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to final map approval for that development, and the applicant hereby agrees to comply with adopted amendments to the Growth Management Ordinance. FISCAL IMPACT: None to the City. Developer has paid all costs associated with the proposed "A" Map and agreement. Attachments : Attachment 1: Attachment 2: Attachment 3: Attachment 4: Minutes of 11/19/96 and 3/25/97 (Resolution Nos. 18398 and 18613, respectively)NOT SCANNEr Plat - Chula Vista Tract 96-04, Otay Ranch SPA One, Village 5 NO'.f ;)\..i'U"~ 't.o:.JJ Developer's Disclosure Statement NOT t;:,.. 41\'11\T1;"n... Irrevocable Offer of Dedication for Roads: 'l'~&'~pace and Public Purposes H:IHOMEIENGINEERIAGENDA I V5 _ MAPA1.DRS DRS/drs File No. 0600-80-0R113F 1'-7' RESOLUTION NO. l1,:l ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL "A" MAP NO. 1 FOR CHULA VISTA TRACT NO. 96 - 04, OTAY RANCH SPA ONE VILLAGE 5, REJECTING ON BEHALF OF THE PUBLIC EAST PALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES. ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA THE PUBLIC DRAINAGE EASEMENTS AND ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS GRANTED ON SAID MAP WITHIN SAID SUBDIVISION. ACKNOWLEDGING ON BEHALF OF THE PUBLIC THE IRREVOCABLE OFFERS OF DEDICATION OF FEE INTEREST OF EAST PALOMAR STREET, OLYMPIC PARKWAY AND THE EASEMENT FOR STREET AND PUBLIC PURPOSES, LOT "G" FOR PUBLIC PARK PURPOSES, LOT "H" FOR OPEN SPACE AND LOT "I" FOR PUBLIC IMPROVEMENTS WHEREAS, on November 19, 1996, by Resolution No. 18398 the City Council approved a portion of the Tentative Subdivision Map for Chula Vista Tract 96-04, Otay Ranch SPA One, (Otay Ranch Villages One and a portion of Village 5, excluding 288 Acres located in a portion of Villages One and Five). On March 25, 1997, by Resolution No. 18613, the City Council approved a portion of the Tentative Subdivision Map 96-04 (Otay Ranch Village Five, Neighborhoods 28, 29, 30, 31 and 39); and WHEREAS, Condition No. 117 of the Resolution requires the developer to submit and obtain approval of the City of a master final map ("A" Map) over the portion of the tentative map within each Village area showing "super block" lots; and WHEREAS, the "A" map is also required to show the backbone street dedication and utility easements required to serve the "super block" lots; and WHEREAS, all "super block" lots created are also required to have access to a dedicated public street; and WHEREAS, the first final "A" Map for Otay Ranch SPA One Village 5 is now before Council for approval. 1 Cf-llJ NOW, THEREFORE, BE IT RESOLVED the City Council of the Chula Vista does hereby approve Final "A" Map No. 1 for Chula Vista Tract No. 96-04, Otay Ranch SPA One, Village 5, rejecting on Behalf of the public East Palomar Street, Olympic Parkway and the easement for street and public purposes. Accepting on behalf of the City of Chula Vista public drainage easements and the assignable and irrevocable general utility and access easements granted on said map within said subdivision, acknowledging on behalf of the public the Irrevocable Offers of Dedication of East Palomar Street, Olympic Parkway and easement for street and public purposes, the Irrevocable Offers of Dedication of Fee interest of Lots "8" for Public Park Purposes, "H" for Open Space and "I" for Public Improvements. Presented by Approved as to form by //" j. v?, ( (fJ!.#,r',r;'; ;/ I. (;~J:~ Joh~ M:rKaheny ~~ City Attorney John P. Lippit Director of Public Works c:\cbs\cvcity\reso\ORSlVILL.5DR 2 f-I( RESOLUTION NO. 111 '2.5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING "Au MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENTS AGREEMENT FOR CHULA VISTA TRACT 96-04, OTAY RANCH SPA ONE PORTION OF VILLAGE 5, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer for Otay Ranch Spa One Village 5 has executed a Supplemental Subdivision Improvement Agreement (SSIA) in order to satisfy Conditions 1, 3, 4, 5, 23, 28, 75, 76, 79, 82 (c), 91, 83, 90, 103 (d), 109, 1l0, 111, 112, 113, 126, 127, 128, 130(c), 131, and 136 of Resolution 18613 and Conditions 1, 3, 4, 5, 23, 28, 75, 76, 79, 82 (c), 91, 83, 90, 103 (d), 109, 110, Ill, 112, 113, 127, 128, 129, 131(c), 132, and 137 of Resolution 18398 approving the Tentative Map for Chula Vista Tract No. 96-04. 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. 96-04 Otay Ranch SPA One Portion of Village 5 a copy of which is on file in the office of the City Clerk as Document No. t]./)q~-llq. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippit Director of Public Works c:\cbs\cvcity\reso\ORS1VILL.5 y-I:t . RECORDING REQUEST BY: ) ) City Clerk ) ) WHEN RECORDED MAIL TO: ) ) CITY OF CHULA VISTA ) 276 Fourth Avenue ) Chula Vista, CA 91910 ) ) No transfer tax is due as this is a ) conveyance to a public agency of ) less than a fee interest for which ) no cash consideration has been paid ) or received. ) ) ) ) Developer ) ) Above Space for Recorder1s Use VILLAGE 5 OF THE OTAY RANCH PROJECT SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT (Conditions 1, 3, 4, 5, 23, 28, 75, 76, 79, 82(c) and 91, 83, 90, 103 (d), 109, 110, 111, 112, 113, 127, 128, 129, 131(c) , 132, 137 of Resolution No. 18398 and Conditions 1, 3, 4, 5, 23, 28, 75, 76, 79, 82 (c) and 91, 83, 90, 103 (d), 109, 110, 111, 112, 113, 126, 127, 128, 130(c), 131, 136 of Resolution No. 18613) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this _ day of July, 1998, by and between THE CITY OF CHULA VISTA, California ("City" or "Grantee" for recording purposes only) and OTAY PROJECT, LLC, a Delaware limited liability company, ("Developer" or "Grantor"), with reference to the facts set forth below, which recitals constitute a part of this Agreement: y-/3 Wqg-lIr <R tq l :1.6 RECITALS A. This Agreement concerns and affects:certain real property located in Chula Vista, California, more particularly described on Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part of a project commonly known as Village 5 of the Otay Ranch Project. For purposes of this Agreement the term "Project" shall also mean "Property". B. "Owner" or "Developer" means the person, persons or entity having a legal or an equitable interest in the property or parts thereof and includes Owner's successors-in-interest- and assignors of any property within the boundaries of the "A" Map. C. Developer and/or Developer's predecessor in interest has applied for and the City has approved a Tentative Subdivision Map commonly referred to as Chula Vista Tract 96-04 ("Tentative Subdivision Map") for the subdivision of the Property. D. The City has adopted Resolution Nos. 18398 and 18613 ("Resolutions") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the Resolutions. The conditions are attached hereto as Schedule "1." E. City is willing, on the premises, security, terms and conditions herein contained to approve the final map for which Developer has applied as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. Developer understands that subsequent final maps may be subject to the same security, terms and conditions contained herein. F. The following defined terms shall have the meaning set forth herein, unless otherwise specifically indicated: a. For purposes of this Agreement, "B" Map means any final map subsequent to the "A" Map and within the "A" Map boundaries. b. "commencing construction" means when a construction permit or other such approval has been obtained from the City or a construction contract has been awarded for the improvement, whichever occurs first. c. "complete construction" means when construction on said improvement has been completed and the City accepts the improvement. July 29, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 2 9-~ d. "guest builder" interest in the Property or a "A" Map has been recorded. means those entities obtaining any portion of the Property, after the e. "PFFP" means the SPA I Public' Facilities Financing Plan adopted by Resolution No. 18286 as may be amended from time to time. NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as set forth below. 1. Agreement Applicable to Subsequent Owners. a. Agreement Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property until released by the mutual consent of the parties. b. Agreement Runs with the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties public or private, in whose favor and for whose benefit of such covenants running with the land have been provided without regard to whether City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. c. Developer Release on Guest Builder Assignments. If Developer assigns any portion of the Project to a guest builder, Developer may request to be released from Developer'S obligations under this Agreement, that are expressly assumed by the guest builder. Developer must obtain the written consent of the City to such release. Such assignment to the guest builder shall, however, be subject to this Agreement and the Burden of this Agreement shall remain a covenant running with the land. The City shall not withhold its consent to any such request for a release so long as the assignee acknowledges that the Burden of the Agreement runs with the land, assumes the obligations of the Developer under this Agreement, and demonstrates, to the satisfaction of the City, its July 29, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 3 9-/5 ability to perform its obligations under this Agreement as it relates to the portion of the Project which is being acquired by the Assignee. d. Partial Release of Developer's Assignees. If Developer assigns any portion of the Project subject to the Burden of this Agreement, upon request by the Developer or its assignee, the City shall release the assignee of the Burden of this Agreement as to such assigned portion if such portion has complied with the requirements of this Agreement to the satisfaction of the City and such partial release will not, in the opinion of the City, jeopardize the likelihood that the remainder of the Burden will not be completed. e. Release of Individual Lots. Upon the occurrence of any of the following events, Developer shall, upon receipt of the prior written consent of the City Manager (or Manager's designee), have the right to release any lot(s) from Developer's obligation under this Agreement: i. The execution of a purchase agreement for the sale of a residential lot to a buyer of an individual housing unit; ii. Association; The conveyance of a lot to a Homeowner's iii. The execution of a purchase agreement for the sale of a Commercial or Community Purpose Facility lot as identified in SPA One Plan; or iv. The issuance of a permit for the development of a multifamily lot as identified in the SPA One Plan. The City shall not withhold its consent to such release so long as the City finds in good faith that such release will not jeopardize the City's assurance that the obligations set forth in this Agreement will be performed. At the request of the Developer, the City Manager (or Manager's designee) shall execute an instrument drafted by Developer in a recordable form acceptable to the City Manager (or Manager's designee) which confirms the release of such lot or parcel from the encumbrance of this Agreement. Notwi thstanding the foregoing, at the close of an individual homeowner's escrow or conveyance to a homeowner's association of any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically released from the encumbrance hereof. 2. Condition No.1 - {General preliminary}. In satisfaction of Condition No. 1 of Resolution Nos. 18398 and 18613, Developer July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 4 ct-I(, hereby agrees, to comply with the requirements and guidelines of the Parks, Recreation, Open Space and Trails Plan, Public Facilities Financing Plan ("PFFP"), Ranch Wide Affordable Housing Plan, SPA One Affordable Housing Plan, and the Non-Renewable Energy Conservation Plan, as may be amended from time to time, and shall remain in compliance with and implement the terms, conditions and provisions of said documents. 3. Condition No.3 - (General Preliminary). In satisfaction of Condition No.3 of Resolution Nos. 18398 and 18613, Developer agrees that if any of the terms, covenants or conditions contained within the Resolution shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to deny the issuance of building permits for the Project, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The applicant shall be notified ten (10) days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable period of time. 4. Condition No. 4 - (General Preliminary). In satisfaction of Condition No.4 of Resolution Nos. 18398 and 18613 , Developer agrees to indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project and/or any or all entitlements and approvals issued by the City in connection with the Project. 5. Condition No. 5 - (General Preliminary). In satisfaction of Condition 5 of Resolution Nos. 18398 and 18613, Developer hereby agrees, that Developer shall comply with all the applicable SPA conditions of approval. 6. Condition No. 23 (SR 125 Dedication). In satisfaction of Condition No. 23 of Resolution Nos. 18398 and 18613, the Developer has made Irrevocable Offers of Dedication (IOD) on the final "A" Map for the right-of-way for SR 125. Said right-of-way is contained in one lot Irrevocably Offered for Dedication to the City for open space and one lot Irrevocably Offered for Dedication for public purposes. The IODs are attached as a part of this agreement per Exhibit B. July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 5 9-/7 7. Condition No. 28 (Transit Stop Facilities). In satisfaction of Condition No. 28 of Resolution Nos. 18398 and 18613, Developer agrees to the following: a. Secondary Transit Stop Facilities. Developer agrees to construct, at its sole expense, two "secondary transit stop facilities" consisting of all of the following: bus turn-out improvements near the Community Purpose Facility CPF-S, two bus shelters, and other related improvements, as described in the PFFP and as approved by the City Engineer, at locations along East Palomar Street to be determined by the City Engineer. The bus turn- out facilities shall be constructed in accordance with the Improvements Plans approved by the City Engineer. Developer shall construct the secondary transit stop facilities in two phases; the first phase shall consist of the turn-out facilities, the second phase shall consist of the bus shelters and related improvements. Developer shall commence construction of the first phase improvements concurrent with the commencement of construction of the street improvements for that portion of East Palomar Street containing said improvements. Developer agrees to commence construction of the second phase improvements within 90 days after receiving written notice from the Director of Public Works to commence construction of the second phase improvements. Developer agrees to complete construction of said facilities within two years after commencing construction of such improvements. i. First Phase Improvement Securities. Developer shall provide the City with improvement securities, approved as to form by the City Attorney, in an amount equal to 110% of the cost of constructing the first phase improvements as estimated by the City Engineer. The improvement securities shall be provided to the City prior to commencing construction of such improvements and concurrent with Developer furnishing improvement securities for that portion of East Palomar Street containing said First Phase Improvements. The improvement securities shall be released upon completion of the improvements. ii. Second Phase Improvement - Cash Deposit. Developer shall provide the City with a cash deposit in an amount equal to 110% of the cost of constructing the second phase of improvements as estimated by the City Engineer. The cash deposit shall be provided by Developer to the City when either requested by the City Engineer or prior to Developer commencing construction of that portion of East Palomar Street containing the second phase improvements, whichever event shall occur first. The cash deposit shall be released upon completion of the improvements. Upon request by Developer, the amount of the cash deposit may be reduced by the City Engineer subject to the City Engineer's sole discretion. July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 6 9-r,-- b. Agreement Not to Protest. Developer hereby agrees not to protest the formation and inclusion of the property in a regional benefit assessment district to finance the construction of the Light Rail Transit. This agreement to not protest the inclusion of these public improvements shall not be deemed a waiver of the right to challenge the amount of any assessment which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. c. pedestrian Bridges. Developer acknowledges and agrees that the "pedestrian bridge" concept is an integral element of the Project's Village Design Plan. Developer has requested that a Development Impact Fee ("DIF") be established. Developer hereby agrees that prior to the first final "B" Map, if no DIF mechanism has been adopted by the City Council, the Developer shall provide cash or security to guarantee that its fair share, as fair share is determined by the City Engineer, of the pedestrian bridges connecting Villages One to Two, Villages One to Five, and Villages Five to six. If a Development Impact Fee ("DIF") mechanism is adopted by the City Council and the statutory period for challenging the DIF has expired without a challenge to the DIF, the cash deposit or security shall be released to the Developer; provided, however, the City shall subtract from said deposit or security an amount equal to the DIF payments that were not paid for any building permits issued for the project prior to the establishment of the DIF. Developer acknowledges that if no DIF mechanism is established for any reason, the City has the right to retain the cash deposit or security to pay for the construction of said pedestrian bridges. 8. Condition No. 75. (Neighborhood Parks). In partial satisfaction of Condition No. 75 of Resolution Nos. 18398 and 18613, Developer agrees to install all local (neighborhood) parks consistent with the PFFP and agrees to install said parks, in accordance with a phasing schedule approved by the Director of Planning. Developer shall submit the schedule describing the time frames for installation of each park to the Director of Planning for the Director's review and approval prior to approval of the first "B" Map. 9. Condition No. 76. (Neighborhood Parks). In partial satisfaction of Condition No. 76 of Resolution Nos. 18398 and 18613,Developer agrees that all local parks shall be designed and constructed consistent with the provisions of the Chu1a Vista Landscape Manual and related City Planning, Park and Recreation specifications and policies. July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 7 <; -/~ 10. Condition No. 79 (PAD Fee Reimbursement). In accordance with Condition No. 79 of Resolution Nos. 18398 and 18613, the parties to this Agreement agree to negotiate in good faith a PAD fee reimbursement schedule in coordination with each construction schedule approved by the City. Milestones will be established for partial reimbursement during the construction process. Developer agrees that the City may withhold up to 20% of the park construction funds until the park has been completed and accepted. Reimbursement of PAD fees shall include the interest accrued by the City on said PAD fees minus the City's cost of processing and administering this reimbursement program. 11. Condition No. 82(0) and 91 - (IODs). In satisfaction of Condition No. 82 (c) and 91 of Resolution Nos. 18398 and 18613, Developer has made an Irrevocable Offer of Dedication (IOD) to the City, in accordance with Government Code Section 7050, a fee interest, free and clear of all encumbrances, in the real properties shown on the "A" Map as park lots and open space lots and offered to the City for acceptance on such map. The IOD is attached as part of this per Exhibit B. 12. Condition No. 83 - (Community Parks). In satisfaction of Condition No. 83 of Resolution Nos. 18398 and 18613, Developer agrees as follows: a. Prior to the approval of each final "B" Map, the Developer shall pay PAD fees for the Community Park based upon a formula of 1 acre per 1,000 residents, until such time as a turn- key facility has been accepted by the Director of Planning. Said turn-key facility is subject to a reimbursement mechanism to be agreed upon by the parties. b. The parties to this Agreement agree to negotiate in good faith any subsequent agreements or amendments to this Agreement, prior to the first final "B" Map that may be needed to fulfill Condition No. 83 of this Resolution, pertaining to the installation of said park improvements. 13. Condition No. 90 - (No Protest of Maintenance District or Assessment District). In satisfaction of Condition No. 90 of Resolution Nos. 18398 and 18613, Developer hereby agrees not to protest the formation of or the inclusion in, a maintenance district, including a community facility district or a benefit zone, for the maintenance of landscaped medians and scenic corridors along streets within and adjacent to the subject subdivision. This agreement to not protest the inclusion of these public improvements shall not be deemed a waiver of the July 28. 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 8 f? - :It) right to challenge the amount of any assessment which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. 14. Condition No. 103 (d) - (Hold Harmless from Erosion Liability) In satisfaction of Condition No. 103 (d) of Resolution Nos. 18398 and 18613, Developer agrees to hold the City harmless from any liability for erosion, siltation or increase of flow of drainage resulting from this Project. 15. Condition No. 109 - (Backbone Facilities). In satisfaction of Condition No. 109 of Resolution Nos. 18398 and 18613, and Section 7.1 of the Development Agreement, Developer agrees to construct the backbone facilities identified under Condition 109 in accordance with the time frames to be established pursuant to Condition 109. The parties to this Agreement agree to negotiate in good faith any subsequent agreements as may be needed to fulfill Condition No. 109 of this Resolution, pertaining to the installation of said backbone facilities. Developer further agrees to provide security for the said facilities in accordance with Condition 109. 16. Condition No. 110 - (Schools). In partial satisfaction of Condition No. 110 of Resolution Nos. 18398 and 18613, the Developer agrees to the following: a. Developer has prepared and submitted an application for an amendment to the Otay Ranch General Development plan that shows the replacement of the Village Seven High School location with a site in either the area west of Paseo Ranchero in Village One or the northern portion of Village Two. The Developer agrees that the City shall not issue building permits for more than 1,400 units within SPA One until the City has acted on said proposed plan amendment, unless the Sweetwater Union School District consents to the further issuance of such permits. b. The Developer agrees to deliver to the Sweetwater Union School District a graded high school site including utilities provided to the site and an all-weather access road acceptable to said District prior to issuance of the 2,650th building permit for the Property or upon written request by the District not prior to 1,800th such permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Sweetwater Union High School District as based on District facility needs. July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 9 tf- Ql 17. Condition No. 111 - (Schools). In partial satisfaction of Condition No. 111 of Resolution Nos. 18398 and 18613, the Developer hereby agrees to deliver to the Chula Vista Elementary School District, a graded elementary school :site including utilities provided to the site and an all weather access road acceptable to the District, located within Village One, prior to issuance of the SOOth residential building permit. The all- weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Chula Vista Elementary School District as based on said District's facility needs. 18. Condition No. 112 - (Schools). In partial satisfaction of Condition No. 112 of Resolution Nos. 18398 and 18613, the Developer agrees to deliver to the Chula Vista Elementary School District, a graded elementary school site including utilities provided to the site and an all-weather access road acceptable to the District, located within Village Five, prior to issuance of the 2,SOOth residential building permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the Chula Vista Elementary School District as based on said District's facility needs. 19. Condition No. 113 - (Schools). In partial satisfaction of Condition No. 113 of Resolution Nos. 18398 and 18613, the Developer agrees to deliver to the Chula Vista Elementary School District, a graded elementary school site including utilities provided to the site and an all-weather access road acceptable to the District, located west of Paseo Ranchero, prior to issuance of the 4,SOOth residential building permit. The all-weather access road shall also be acceptable to the Fire Department. The Developer understands and agrees that this schedule is subject to modification by the School District as based on said District's facility needs. 20. Condition Nos. 126/127 - (Development Phasing Plan). In satisfaction of Condition No. 126 of Resolution No. 18613 and Condition No. 127 of Resolution No. 18398, Developer agrees that if phasing is proposed within an individual map or through multiple final maps, the Developer shall submit and obtain approval for a development phasing plan by the City Engineer and Director of Planning prior to approval of any final map. Improvements, facilities and dedications to be provided with each phase or unit of development shall be as determined by the City Engineer and Director of Planning. The City reserves the right to require said improvements, facilities and/or dedications as July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 10 9-~~ necessary to provide adequate circulation and to meet the requirements of police and fire departments. The City Engineer and Planning Director may, at their discretion, modify the sequence of improvement construction should,conditions change to warrant such a revision. 21. Condition No. 127/128 - (PFFP). Condition No. 127 of Resolution No. 18613 of Resolution No. 18398, Developer agrees In satisfaction of and Condition No. 128 to the following: Adhere to the PFFP and any amendments thereto, approved by the City Council, including but not limited to the, SPA and tentative map improvements installed in accordance with said Plan or as required to meet threshold standards adopted by the City. Developer and City acknowledge that the PFFP identifies a facility phasing plan based upon a set of assumptions concerning the location and rate of development within and outside of the project area. Throughout the build-out of SPA One, actual development may differ from the assumptions contained in the PFFP (i.e., the development of EastLake III). Developer understands that neither the PFFP nor any other SPA One document grant the Applicant an entitlement to develop as assumed in the PFFP, or limit the SPA One's facility improvement requirements to those identified in the PFFP. Developer acknowledges that compliance with the City'S threshold standards, based on actual development patterns and updated forecasts in reliance on changing entitlements and market conditions, shall govern SPA One development patterns and the facility improvement requirements to serve said development. In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan or amendment to the Growth Management Program and Ordinance adopted by the City. Developer understands and agrees that the City Engineer may modify the sequence of improvement construction should conditions change to warrant such a revision. Developer agrees that concurrent with the approval of the first final map approved after a Public Facility Financing Plan has been approved for the EastLake III GDP Area, the Developer shall update, at Developer's sole expense and subject to a Reimbursement Agreement, the SPA 1 PFFP and agrees that the City Engineer may change the timing of construction of the public facilities, including without limitation, the nature, sizing, extent and timing for the construction of public facilities caused by SPA One, shall become a condition for all subsequent SPA One entitlements, including tentative and final maps. 22. Condition Nos. 128/129 - (Code Requirements). In satisfaction of Condition No. 128 of Resolution Nos. 18613 and Condition No. 129 of Resolution Nos. 18398, Developer agrees to July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 11 q-~3 comply with all applicable sections of the Chula Vista Municipal Code. Developer further agrees that any final map for the Project and all plans for said Project shall be prepared in accordance with the provisions of the Subdi~ision Map Act and the City of Chula Vista Subdivision ordinance and Subdivision Manual. 23. Condition Nos. 130(c)/131(c) - (Sewer Fees) In satisfaction of Condition No. 130(c) of Resolution Nos. 18613 and Condition No. 131(c) Resolution Nos. 18398, Developer shall pay all applicable sewer fees, including but not limited to sewer connection fees (including such fees for school sites). 24. Condition No. 131/132 - (Code Requirements). In satisfaction of Condition No. 131 of Resolution Nos. 18613 and Condition No. 132 of Resolution Nos. 18398, Developer agrees to comply with all relevant Federal, State, and Local regulations, including the Clean Water Act. The Developer shall be responsible for providing all required testing and documentation to demonstrate said compliance as required by the City Engineer. 25. Condition No. 136/137 - (Code Requirements). In satisfaction of Condition No. 136 of Resolution Nos. 18613 and Condition No. 137 of Resolution Nos. 18398, Developer agrees to comply with Chapter 19.09 of the Chula Vista Municipal Code (Growth Management) as may be amended from time to time by the City. Said chapter includes but is not limited to: threshold standards (19.09.04), public facilities finance plan implementation (19.09.090), and public facilities finance plan amendment procedures (19.09.100). Developer further acknowledges and agrees that the City is presently in the process of amending its Growth Management Ordinance to add a proposed Section 19.09.105, to establish provisions necessary to ensure compliance with adopted threshold standards (particularly traffic) prior to construction of State Route 125. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to final map approval for that development, and the applicant hereby agrees to comply with adopted amendments to the Growth Management Ordinance. 26. Open Space. Prior to approval of the first "B" map for the Project, Developer agrees to convey open space land or pay the required in-lieu fee in accordance with the Resource Management Plan phase II approved by Resolution No. 18416, for all development areas, including applicable streets, open space lots, paseos, pedestrian parks and slope areas shown on the "A" Map. July 28, 1998 H:\Home\Engineer\Landdev\Oeayrnch \otayvilS.drs 12 q-~v 27. Satisfaction of Conditions. City agrees that the execution of this Agreement constitutes satisfaction of Developer's obligation of Conditions: 1, 3, 4, 5, 23, 28, 75, 76, 79, 82 (c) and 91, 83, 90, 103 (d), 109, 110,: 111, 112, 113, 127, 128, 129, 131(c), 132, 137 of Resolution No. 18398 and Conditions 1, 3, 4, 5, 23, 28, 75, 76, 79, 82 (c) and 91, 83, 90, 103 (d), 109, 110, 111, 112, 113, 126, 127, 128, 130(c), 131, 136 of Resolution No. 18613. Developer further understands and agrees that the some of the provisions herein may be required to be performed or accomplished prior to the approval of other final maps for the Project, as may be appropriate. 28. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Tentative Map, established by Resolution Nos. 18398 and 18613 and shall remain in compliance with and implement the terms, conditions and provisions therein. 29. Recording. This Agreement, or an abstract hereof shall be recorded simultaneously with the recordation of the "A" Map. 30. Building Permits. Developer and Guest Builders understand and agree that the City may withhold the issuance of building permits for the Project, should the Developer be determined by the City to be in breach of any of the terms of this Agreement. The City shall provide the Developer of notice of such determination and allow the Developer with reasonable time to cure said breach. 31. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.s. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party. CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 Attn: Director of Public Works July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 13 9-~ Developer: Otay Project, LLC 11975 El Camino Real, Suite:l04 San Diego, CA 92130 Attn: Kim John Kilkenny Fax (619) 259-4364 South Bay Project, LLC 191 West Wilbur Road, Suite 102 Thousand Oaks, CA 91360 Attention: David Green Fax (805) 379-4472 A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. b. Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. c. Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. d. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. e. Recitals; Exhibits. Any recitals and exhibits set forth above are incorporated by reference into this Agreement. f. Attorneys' Fees. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. July 28, 1998 H:\Home\Engineer\Landdev\Otayrnch \otayvilS.drs 14 7-~~ IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first hereinabove set forth. CITY OF CHULA VISTA DEVELOPER: OTAY PROJECT, LLC, a Delaware limited liability company Mayor Attest: By: Otay Ranch Development, LLC, a Delaware limited liability By~om~<4~ Its: ~"iu.f ~ Beverly Authelet City Clerk Approved as to Form: John M. Kaheny City Attorney July 22, 199B H:\Home\Engineer\~anddev\Otayrnch \otayvilS.dds 15 <(-27 Recording requested by and please retum to: ~A City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instrument benefits City only. No fee is required ~) C.V. File No. OR-l13 F APN(s) IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, OT A Y PROJECT LLC A CALIFORNIA LIMITED LIABILITY COMPANY represents that, as the owner( s) of the herein-described real property, (in the case of multiple owners, collectively referred to as "Grantor"), hereby make(s) an Irrevocable Offer of Dedication of fee interest to the City of Chula Vista, A Municipal Corporation, of the hereinafter described real property for the following public purpose: FOR STREET AND OTHER PUBLIC PURPOSES. The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: OLYMPIC P ARKW A Y AND EAST PALOMAR STREET OF CHULA VISTA TRACT NO. 96-04, OTA Y RANCH VILLAGE 5 "A" MAP NO.1 ACCORDING TO MAP NO. (Contains 11.922 Acres, More or Less) This Offer of Dedication is made pursuant to Section 7050 ofthe Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista. This Offer of Dedication offee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. Page 1 of2 9-J-8 / r- ~f SIGNATURE PAGE This 'Z~1:D day Of~ . l~ Sig~e(s): OTAY PROJECT. LLC. A CALIFORNIA LIMITED LIABILITY COMPANY, AS OWNER. BY: TA A CH DEVELOPMENT LLC A DELAWARE LIMITED LIABILITY COMPANY. BY: ETA VICE PRESIDENT (Notary acknowledgment required for each signatory) This is to certify that the interest in real property offered herein to the City of Chula VISta. a governmental agency, is hereby acknowledged by the undersigned. City Clerk, on behalf of the Chula VISta City Council pursuant to authority conferred by Resolution No. 15645 of the Chula Vista City Council adopted on June 5. 1990. and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. BEVERLY A. AUTHELET CITY CLERK By: Dated: Page 2 of2 1'-30 Recording requested by and pleose return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instnnnent benefits City only. No fee is required ~) C.V. File No. OR-I13 F APN(s) IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, OT A Y PROJECT LLC A CALIFORNIA LIMITED LIABILITY COMPANY. represents that, as the owner(s) of the herein-described real property, (in the case of multiple owners, collectively referred to as "Grantor"), hereby make(s) an Irrevocable Offer of Dedication of fee interest to the City of Chula Vista, A Municipal Corporation, of the hereinafter described real property for the following public purpose: OPEN SPACE. TRANSPORTATION. AND OTHER PUBLIC PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: LOT "I" OF CHULA VISTA TRACT NO. 96-04, OTAYRANCHVILLAGE 5 "A" MAP NO. 1 ACCORDING TO MAP NO. (Contains 15.477 Acres, More or Less) This Offer of Dedication is made pursuant to Section 7050 of the Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista. This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. Page 1 of2 f-3/ SIGNATURE PAGE This ~ day oCJbtJY , li}f, Signature(s): BY: KENT ADEN: VICE PRESIDENT (Notary acknowledgment required for each signatory) This is to certify that the interest in real property offered herein to the City of Chula Vista, a governmental agency. is hereby acknowledged by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of the Chula Vista City Council adopted on June 5. 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. BEVERLY A. AUTHELET CITY CLERK By: Dated. Page 2 of 2 f-3~ Recording requested by and please return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instrument benefits City only. No fee is required ~) C.V. File No. OR-l13 F APN(s) IRREVOCABLE OFFER OF DEDlCA nON OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, OT A Y PROJECT LLC A CALIFORNIA LIMITED LIABILITY COMPANY. represents that, as the owner(s) of the herein-descnbed real propertY, (in the case of multiple owners, collectively referred to as "Grantor"), hereby make(s) an Irrevocable Offer of Dedication of fee interest to the City of Chula Vista, A Municipal Corporation, of the hereinafter described real propertY for the following public purpose: TRANSPORTATION ANn OTHER PTTRT.TC PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: LOT "H" OF CHULA VISTA TRACT NO. 96-04, OTAY RANCH VILLAGE 5 "A" MAP NO.1 ACCORDING TO MAP NO. (Contains 2.415 Acres, More or Less) This Offer of Dedication is made pursuant to Section 7050 of the Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista. This Offer of Dedication offee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. Page 1 of2 C(- ~3 SIGNATURE PAGE This ~ day of .lIJL'/ . lilB Sigoature(s): BY: KENT ADEN: V I CE PRES IDENT (Notary acknowledgment required for each signatory) This is to certify that the interest in real property offered herein to the City of Chula Vista, a governmental agency, is hereby acknowledged by the U1Iilersigned, City Clerk, on behalf of the ChuJa VISta City Council pursuont to authority conferred by Resolution No. 15645 of the Chula Vista City Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. BEVERLY A. AUTHELET CITY CLERK By: Dated: Page 2 of 2 7-31 . , Recording requested by and please return to: City Clerk City of Chula Vista P.O. Box 1087 Chola Vista, CA 91912 This instrument benefits City only. No fee is required ~) C.V. File No. OR-I 13 F APN(s) IRREVOCABLE OFFER OF DEDlCA nON OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, OT A Y PROJECT LLC A CALIFORNIA LIMITED LIABILITY COMPANY. represents that, as the owner(s) of the herein-described real property, (in the case of multiple owners, collectively referred to as "Grantor"), hereby make(s) an Irrevocable Offer of Dedication of fee interest to the City of Chula Vista, A Municipal Corporation, of the hereinafter described real property for the following public purpose: PUBLIC PARK PURPOSES. The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly descnbed as follows: LOT "G" OF CHULA VISTA TRACT NO. 96-04, OT A Y RANCH VILLAGE 5 "A" MAP NO. 1. ACCORDING TO MAP NO. (Contains 1.570 Acres, More or Less) This Offer of Dedication is made pursuant to Section 7050 of the Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista. This Offer of Dedication offee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. Page 1 of2 9 - S.5 , SIGNATURE PAGE This Zf~daYOf~LY .1dE5 Signature(s): OTAY PROJECT. LLC. A CALIFORNIA LIMITED LIABILITY COMPANY, AS OWNER. ::: ~~LC. A DELAWARE LIMITEO LIABILITY COMPANY. .~. . V I CE PRES !DENT (NotaI}' acknowledgment required for each signatory) This is to certify that the interest in real property offered herein to the City of Chula VISta, a governmental agency, is hereby acknowledged by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of the Chula Vista City Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. BEVERLY A. AUTHELET CITY CLERK By: Dated' Page 2 of2 f-~ COUNCIL AGENDA STATEMENT ITEM TITLE: Item-b- 2J, Meeting Date 8/4/98 Resolution \q I Declaring the intent to annex Parcel No. 639-160-32 and the right-of-way for East Naples Street on the southern boundary to Open Space District No. 18 and setting the time and place for the public hearing SUBMITTED BY: Director of Public Works ~ REVIEWED BY: City ManageTDR ~ ~\ (4/5thsVote:Yes_ NoX) The final parcel map to subdivide Parcel No. 639-160-32 is currently in process. The parkway along East Naples Street to the south of this parcel, which is part of the right-of-way for East Naples Street, is adjacent to Open Space District No. 18 but has not yet been officially annexed to the District. RECOMMENDATION: That Council adopt the above resolution, thereby: 1. Initiating assessment ballot procedures applicable to the annexation of Parcel No. 639-160-32 to Open Space District No. 18 2. Directing the City to publish the Resolution ofIntention pursuant to Government Code No. 6063, and set the time and place for the Public Hearing for 6:00 p.m. September 22, 1998 in the Council Chambers, Public Services Building BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On September 6, 1988, City Council adopted Resolution No. 13775, which established Open Space District No. 18. The boundaries of the district generally coincided with the boundaries ofChula Vista Tract No. 87-8, Rancho del Sur Phase 1, with the exception that Lot "K" was excluded from the District. For the strip of East Naples Street located generally between Foxboro Drive and Pacific Hill, the southern parkway was included within the District, since the District boundary was located at the centerline of East Naples Street. However, the northern parkway was excluded. At that time it may have been assumed that this area would be annexed to Open Space District No. 18 after further development took place. Development of Parcel No 639-160-32 A tentative parcel map which would split Parcel No. 639-160-32 into four parcels was originally prepared in February 1991, then subsequently revised in July 1993. The map was approved by the 10-1 Page 2, Item IIJ Meeting Date 8/4/98 City on September 8, 1994, and a letter stating the Conditions of Approval was sent to property owners Rarniro Garcia Reyes and Patricia A. Garcia. Condition No.9 required the property owners to request annexation to Open Space District No. 18 and deposit $3000 with the City to cover staff costs for annexation prior to approval of the Final Parcel Map. The developers! owners have only recently begun to pursue final approval of this map. With an extension, the Tentative Map will expire on September 8, 1998 unless the Final Parcel Map is filed by that date. City staff have estimated the annual cost of maintaining the 1,328 square foot parkway on the north side of East Naples Street just west of the existing open space district as $394.00 per year. Half of this parkway borders Parcel No. 639-160-32 and costs approximately $197.00 to maintain. For Fiscal Year 1998-99, each single family lot within the District will be charged $222.00 (the maximum assessment amount is $315.77). Since the effect of annexing the property to the District will result in an increased armual revenue from four single family lots of $888.00, which is greater than the annual expenses, Proposition 218 will not be triggered with respect to the existing property owners. The procedures required under Proposition 218 will be followed for the property owners of Parcel No. 639-160-32, who are not currently assessed for any open space district. Noticing and assessment ballot procedures will be followed. A Public Hearing will be held at 6:00 p.m. on September 22, 1998 to take testimony and tally the vote. As required by the tentative map conditions, the property owners have already requested armexation to Open Space District No. 18. FISCAL IMPACT: Since the armual revenue associated with armexing Parcel No. 639-160-32 to Open Space District 18 ($880) is greater than the armual cost associated with maintaining the strip of parkway south of this parcel ($194), there are no negative impacts associated with the armexation. Exhibits: Location Map Resolution 13775, approved 9/6/88, and Agenda Statement Letter to Mr. and Mrs. Garcia dated September 8, 1994 regarding Tentative Parcel Map Conditions Maintenance cost estimate for parkway on north side of East Naples Street Letter dated June 8, 1998 from Alejandra Garcia Zapata requesting annexation to Open Space District No. 18 H:\HO?\.1E\ENGINEER\AGENDA\647NAP .EMe :0725-30-0SD 18A I~-~ RESOLUTION NO.~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO ANNEX PARCEL NO. 639-160-32 AND THE RIGHT-OF-WAY FOR EAST NAPLES STREET ON THE SOUTHERN BOUNDARY TO OPEN SPACE DISTRICT NO. 18 AND SETTING THE TIME AND PLACE FOR THE PUBLIC HEARING WHEREAS, on September 6, 1988, City Council adopted Resolution No. 13775, which established Open Space District No. 18 with the boundaries of said district generally coinciding with the boundaries of Chula Vista Tract No. 87-8, Rancho del Sur Phase 1, with the exception that Lot "K" was excluded from the District; and WHEREAS, because East Naples Street is one of the main entrances into Rancho del Sur, this area has been maintained by the District 18 since its establishment; and WHEREAS, the final parcel map to subdivide Parcel No. 639-160-32 is currently in process and Condition No.9 requires the property owners to request annexation to Open Space District No. 18 and deposit $3000 with the City to cover staff costs for annexation prior to approval of the final parcel map; and WHEREAS, the procedures required under Proposition 218 will be followed for the property owners of Parcel No. 639-160-32, who are not currently assessed for any open space district and notice and assessment ballot procedures will be followed; and Council consider WHEREAS, pursuant to Government Code ~6063, the City will set the time and place for a public hearing to the annexation of property to Open Space District No. 18. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby declare its intention to annex Parcel No. 639-160-32 and the right-of-way for East Naples Street on the southern boundary to Open Space District No. 18 and set the time and place for a public hearing thereon for 6:00 p.m. on September 22, 1998 in the Council Chambers, Public Services Building, 276 Fourth Avenue, Chula Vista, Ca. BE IT FURTHER RESOLVED that staff is hereby directed to initiate assessment ballot procedures applicable to the annexation of Parcel No. 639-160-32 to Open Space District No. 18. 1 /0-3 BE IT FURTHER RESOLVED that the City Chula Vista is hereby directed to publish Intention pursuant to Government Code s6053. Clerk of the City of the Resolution of Presented by Approved as to form by John P. Lippitt, Director of Public Works d ( - {)fl~ (~~ Jo M. Kaheny, clty Attorney H:\home\lorraine\cdrive\rs\annex.18 2 ItJ -1 COUNCIL AGENDA STATEMENT Item JI Meeting Date ~ BACKGROUND: REPORT: CITIZEN PARTICIPATION ON THE COORS AMPHITHEATRE EVENTS PLANNING ANO COOROINATION TASK FORCE Community Oevelopment Director C _S \ C;~ M'""''PI< " ~ (4/5ths Vote: Yes_ No-X) ITEM TITLE: SUBMITTED BY: REVIEWED BY: The Events Planning and Coordination Task Force for the Coors Amphitheatre was formed to develop and monitor the Events Management Plan to insure the smooth operation of the amphitheatre and minimize negative impacts on the community. At the time of approval of the amphitheatre project, the City Council discussed citizen participation and feedback, particularly concerning impacts to residential developments bordering Brandywine Avenue since they are the closest residential community to the amphitheatre (at least until Oennery Ranch is completed). Staff proposes to facilitate citizen participation by inviting two representatives from these communities to participate in future meetings of the Events Planning and Coordination Task Force. RECOMMENDATION: That the City Council accept the Report and authorize the Mayor to select two representatives from the Point Robinhood and Brandywine T own homes to represent the community on the Events Planning and Coordination Task Force. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Monitoring Program under Conditional Use Permit PCC-95-47 requires that the Task Force be comprised of representatives from Universal Concerts, Inc. the City Manager's office and the following City departments: Police, Fire, Planning, Public Works, Community Development, Building and Housing, and any other outside agency deemed appropriate. The objective of the Task Force is to insure that the amphitheatre events proceed in a manner as to mitigate any disturbance to the community and that the applicable conditions of the Conditional Use Permit and Environmental Impact Report are implemented. JI-I Page 2, Item JL Meeting Date 08104198 The Task Force has been meeting since January of this year and submitted its final report to the City Council on June 16, 1998. The Task Force will continue to meet as required to review operations after the season opens. The Task Force will deal with such issues as traffic control, noise, littering and cleanup, vandalism and curfews. All of these issues potentially impact residential communities adjacent to Brandywine and Oleander. Although traffic entering the amphitheatre will be discouraged from using Brandywine, some of the exiting traffic will be diverted north on Brandywine to more efficiently access 1-805. Since the format for review of operations is already established, the most effective way to receive and respond to community input is to invite residents of Point Robinhood and Brandywine T own homes (or other adjacent developments) to participate on the Task Force. It is proposed that the Mayor name two representatives from the impacted communities to participate on the Events Task Force. In the future, depending upon impacts from the facility, residents from other communities may also be asked to participate. FISCAL IMPACT: Under the CUP PCC.95-47, all City costs up to $10,000 associated with the formation and functioning of the Task Force and the preparation, processing, review, implementation and/or modification of the EMP are to be paid by Universal Concerts, Inc. To date, other than staff participation, the City has not incurred any costs associated with the Task Force and EMP. All costs associated with the preparation, printing and binding of documents for staff review have been paid by Universal. In addition, Universal has paid all consultant costs associated with the preparation of the traffic management plan, and City staff costs associated with the training of police officers in events management. IFKI H,IHOMEICOMMOEV\STAFF.REPl08.04-98\CITIZEN.MTG (Jul, Z9. 1998 IZ,OZpmll /I-~ CITY COUNCIL AGENDA STATEMENT Item~ Meeting Date~ ITEM TITLE, PUBLIC HEARING, Placement of Certain Charges on Property Tax Regarding the Proposed Delinquent Sewer Service Bills for Collection RESOLUTION, 'Cl\~-' Assessing Delinquent Sewer Service Charges as Liens Upon the Respective Parcels of Land and Approving Placement of Delinquent Charges on the Next Regular Tax Bill Director Of Finance~ City Managa~ '"ls ~'/'tha Vota, Ya'__No-LJ Adoption of this resolution will enhance the collection process for delinquent sewer service charges by reducing the amount of uncollectible losses and ensure that payment will be received on a more timely basis. This will increase annual revenues to the Sewer Fund as well as reduce operating costs. SUBMITTED BY, REVIEWED BY, RECOMMENDATION, That the City Council open the public hearing to consider placing delinquent sewer service charges on property tax bills for collection, consider all testimony, and adopt the resolution overruling all protests and assessing these charges as liens upon the respective parcels of land and placing these charges on the next regular tax bill. BOARDS/COMMISSIONS RECOMMENDATIONS, Not applicable. l&~ Item--1A. Meeting Date~ DISCUSSION: In June 23, 1998, city Council approved Ordinance No. 2736 amending Section 13.14.150 of the Chula vista Municipal Code to allow delinquent sewer service charges to be placed on the property tax bill for collection. The ordinance now states that upon notification of the property owners, a public hearing is set for sewer service accounts which are over sixty days delinquent. At the hearing, the City Council is to consider the delinquent accounts together with any objections or protests by interested parties. At the conclusion of hearing, the city Council may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the city Council. Lastly, the city council adopts a resolution assessing such amounts as liens upon the respective parcels of land, and the amounts are charged to the property owners on the next regular property tax bill. 351 sewer service accounts totaling $96,300 have been identified as being over sixty days delinquent. These property owners have been sent numerous past due notices to alert them of their delinquent status. Upon notification, some property owners have contacted staff to set up payment arrangements. Although those accounts may still be delinquent, they are not included in this report as long as the payments continue to be made according to schedule. Included in this report are several accounts that have already been taken to small claims court, judgments awarded, some properties liened, but still no payments have been made. Earlier this month, the property owners on the attached list (available at the City Clerk's Office) were notified of this public hearing and were asked to pay their delinquent sewer service charges by July 24, 1998 to avoid having these charges placed on their property tax bill. By July 29, 1998, 129 delinquent accounts were cleared and $31,500 in delinquent sewer service revenues had been recovered. Although the public hearing was originally set for July 28, 1998, staff recommended that the city Council continue the item until August 4, 1998 to give people an additional week to pay and avoid having the delinquent charges placed on their property tax bills. staff will continue to update the list as payments are ,~-~ Item I~ ~.- Meeting Date~ received and accounts are cleared. A final list will be submitted to the city Council for consideration as soon as all payments are recorded. staff is recommending that the City council approve the final listing of delinquent sewer service accounts as submitted, and that these charges be forwarded to the County for placement on the next regular tax bill for collection. Any delinquent accounts that are cleared by August 5, 1998 as a result of this public hearing will be removed from the list prior to the submittal of these charges to the County. FISCAL IMPACT, Placing these delinquent sewer service charges on the property tax bill for collection should increase sewer service revenues by approximately $90,000 in FY 98-99. This collection method improves the efficiency of the billing and collection process for delinquent accounts as well as reduces the amount of uncollectible losses thereby maximizing revenues and minimizing costs to the Sewer Fund. '~-3 ~ ~:I, '~ ~j ~ '~ JJ RESOLUTION NO. J , I "7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ASSESSING DELINQUENT SEWER SERVICE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL WHEREAS, on June 23, 1998, the City Council approved Ordinance No. 2736 amending Section 13.14.150 of the Chula Vista Municipal Code to allow delinquent sewer service charges to be placed on the property tax bill for collection; and WHEREAS, the ordinance states upon notification of the property owners, a public hearing is set for sewer service accounts which are over sixty days delinquent; and WHEREAS, at the hearing, the City Council is to consider the delinquent accounts together with any objections or protests by interested parties; and WHEREAS, at the conclusion of the hearing, the City Council may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the City Council; and WHEREAS, a public hearing on delinquent assessments was properly noticed for July 28, 1998 and continued by City Council action until August 4, 1998 at which all protests or objections presented were considered by the City Council; and WHEREAS, staff is recommending that the City Council approve the final listing of delinquent sewer service accounts as submitted and that these charges be forwarded to the County for placement on the next regular tax bill for collection; and WHEREAS, any delinquent accounts that are cleared by August 5, 1998 as a result of the public hearing set for August 4, 1998 will be removed from the list prior to the submittal of these charges to the County. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby (1) overrule any and all protests or objections presented at the public hearing and (2) approve, with respect to the delinquent account list~presented by staff (to be attached hereto as Exhibit A), assess in' delinquent sewer service charges as liens upon the respective parcels of land and the placement of such delinquent charges on the next corresponding regular tax bill unless cleared by Au ust 5, 199~___'C()qg,,~; Presented by as to form by c- Robert Powell, Director of Finance ~ H:\home\lorraine\cdrive\rs\sewer.del ,~.... COUNCIL AGENDA STATEMENT Item-13- Meeting Date 8/4/98 ITEM TITLE: Public Hearing regarding the adjustment of the Telegraph Canyon Drainage Fee Resolution Adjusting the Telegraph Canyon Drainage Fee as provided for in Ordinance No. 2384 Ordinance Amending the Telegraph Canyon Drainage Plan to add environmental mitigation measures requested by State and Federal agencies and to include updated cost estimates SUBMITTED BY: Director of Public Work~(lr~" REVIEWED BY: City Manag~ , 7J!!!\ This item was continued from the July 14 City Council meeting in order to make some legal refinements to the ordinance. Staff was also working on modifying the format of the amendment. In the process of revising the agenda statement, staff determined that the initial report left out some acreage that was in the district. The total remaining acreage within the district boundary is approximately 938 acres. Based on the current fee of $4,579 per acre, the City will be able to collect approximately $4,295,102. The total collected to date is $2,308,502. The fund will eventually reach a balance exceeding $6.6M (in 1998 dollars), which will be enough to cover the cost of drainage improvements that will be required, including the cost of environmental mitigation. Therefore, it is recommended to keep the fee at the same rate, and not hold a public hearing. (4/5ths Vote: Yes _ NoX) H:\HOME\ENGINEER\AGENDA\TCFEE.FP 13- I COUNCIL AGENDA STATEMENT Item )II Meeting Date ~ ITEM TITLE: Public Hearing declaring the intent to increase the Open Space District #10 assessment on the Bella Nevona subdivision. Resolution '~lliapprOving an increase on the Open Space District #10 I assessment for the Bella Nevona Subdivision. SUBMITTED BY: Director of Public wor~/ City Manage~x{ ~ 4/5 Vote Yes _No ..x.... REVIEWED BY: On May 26, 1998, the City Council approved the proposal to 1) subdivide a parcel consisting of 5.25 gross acres into 28 lots for the Bella Nevona subdivision ranging in size from 5,000 sq. ft to 8,300 sq. ft. and 2) amend the development standards contained in the Ranchero Sectional Planning Area (plan) to allow a reduction in minimum lot sizes and set back requirements and 3) order the initiation of assessment ballot procedures applicable to the parcel for which it is proposed that the Open Space District #10 assessment will be increased and 4) schedule a public hearing on the intent to increase the Open Space District #10 assessment on this subdivision. RECOMMENDATION: That Council: 1). Open the hearing, take testimony, close the public hearing; 2). Direct staff to tally all protests; 3). Adopt the resolution approving an increase in the assessment for the Open Space District #10 landscaping and maintenance district for the Bella Nevona subdivision. DISCUSSION: On July 14, 1998 the Council voted to continue the public hearing to tonight's agenda due to a delay in the transfer of ownership for the south Bennett parcel. As of July 17, 1998, the parcel south of the East "J" Street centerline is now owned by the Western Pacific Housing Bella Nevona LLC., and within Rancho Del Rey Open Space District #10. Open Space District #10 is generally located along East "J" Street from Cassia Place to Paseo Ranchero (see Attachment 1). Approximately 630 equivalent dwelling units (edu's) are located within the landscaping maintenance district boundaries. The proposed "Bella Nevona" subdivision would add 28 edu's to this district and will not increase the open space facilities to be maintained. IJ..I- I Page 2 Item ,4 Meeting Date ~ The tentative subdivision map contains 28 single family detached lots ranging in size from 5,000 to 8,300 sq.ft. and utilizes the dual cul-de-sac design. This proposal requires extending Wild Oak Road about 100 ft. to the west to form a longer cul-de-sac with an additional 8 homes. Another cul-de-sac, "Vista Oak Place", is proposed to be constructed from the southerly extension of East "J" Street to provide access to 15 homes. The remaining 5 homes will be along the south side frontage of East "J" Street. History of the Bennett propertY In October of 1985, 1.4 acres located at the western end of the 10 acre Bennett site were divided into 9 lots, fronting on River Ash Drive, consisting of zero lot line single family development. On July 20, 1991, a condition of fmal map approval for Rancho Del Rey Sectional Planning Area (SPA) III, required the extension of East "J" Street via a road easement through the Bennett site. On November 10, 1997, an application was filed to split the Bennett parcel (containing the road easement for East "J" Street) into two parcels. The division was to occur at the centerline of East "]" Street. Parcel Map #18036, dividing this property into two separate parcels was recorded on May 22, 1998. The two parcels are the 2.52 acre parcel north of East "J" Street (parcel #1) with assessor parcel number (A.P.N.) 640-080-47 which is still owned by the Bennett family and the 4.84 acre (5.25 gross acres less 0.41 acres of right of way for east "J" Street) parcel south of East "J" Street (Parcel #2) with A.P.N. 640-080-48 now owned by Western Pacific Housing. Open Space District #10 Assessment history The "Bella Nevona" subdivision is a part of the remaining 8.31 acre Bennett homestead (A.P.N. 640-080-19), which included the road easement for East "J" Street (see Attachment 2). On October 2, 1984, the City Council approved Resolution #11775 (see Attachment 3), which modified the boundaries of Open Space District #10 to include the subject 8.31 acre property (Bennett parcel). The City Council's action also stipulated that the assessment on the Bennett parcel (A.P.N. 640-080- 19) shall have a zero assessment as long as the Bennett's remained the property owners. However, due to the change in ownership, Council Resolution #11775 does not apply to this south parcel (A.P.N. 640-080-48). With development of the proposed "Bella Nevona" subdivision on the southerly portion of the Bennett property, the FY98/99 assessment of $89.45 per edu or $2,504.60 for the 28 edu's for Open Space District #10 will be assessed to the new owners of A.P.N. 640-080- 48, Western Pacific Housing. This fiscal year's collectible of $87.00 per edu, or $2,436.00 will be paid by Western Pacific Housing. The parcel to the north of East "J" Street, the Bennett parcel remaining under the Bennett family ownership (A.P.N. 640-080-47), will remain with a zero assessment, per Resolution #11755. Pursuant to the requirements of Proposition 218, the increase in assessments require that a ballot be mailed to the property owner, Western Pacific Housing, and a public hearing be held (see Attachment 4). On May 26, 1998 the City Council approved a recommendation which adopted a resolution to order the initiation of assessment ballot procedures applicable to the parcel for which it is proposed to 11./ - ~ '. Page 3 Item ".1 Meeting Date ~ increase the assessment. FISCAL IMPACT: The applicant has paid for all processing costs associated with this application. The addition of 28 homes will add approximately 4% edu's into the district and reduce the assessment by approximately 4% to existing edu's in the district at the Bella Nevona project buildout, expected in FY99/00. Attachments: 1. Open Space District #10 Boundary Map .! 2. Bella Nevona Subdivision Plat v 3. Council Resolution #11775 4. Council Resolution #19016 J J File No.: 0600-80-BNOOIF & 0725-30-0SDIO July 24, 1998 (3: 15 PM) H:\HOMEIENGlNEERIAGENDA IBENOSD 10.FXR }I.f-~ r'ft t . RESOLUTION NO.~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INCREASE ON THE OPEN SPACE DISTRICT #10 ASSESSMENT FOR THE BELLA NEVONA SUBDIVISION WHEREAS, on May 26, 1998, the City Council approved the proposal to subdivide a parcel consisting of 5.25 gross acres into 28 lots for the Bella Nevona Subdivision ranging in size from 5,000 sq. ft to 8,300 sq. ft.; and WHEREAS, the Bella Nevona Subdivision is located within Open Space District #10, but the assessment is currently zero; and WHEREAS, the change in ownership requires the property owners to pay the assessments; and WHEREAS, the City Council also ordered the initiation of assessment ballot procedures applicable to the parcel so that assessments could be increased; and WHEREAS, pursuant to the requirements of Proposition 218, the increase in assessments require that a ballot be mailed to the property owner, Western Pacific Housing, and staff tally all protests; and WHEREAS, a public hearing was noticed and held on August 4, 1998 on the intent to increase the Open Space District #10 assessment on this subdivision. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve an increase on the Open Space District #10 assessment for the Bella Nevona Subdivision for FY 98/99 in the amount of $89.45 per edu or $2,504.60 for 28 edu's for the new owner of A.P.N. 640-080-48, Western Pacific. Presented by Approved as to form by 0' Jr2/}tJ"l- 6)/'\ C (4~~\ _ JoHrrM. Kaheny, City Attorney John P. Lippitt, Director of Public Works H:\home\lorraine\cdrive\rs\nevona l'i - J-! - -.c - -.....~ -"'\ ~~.....- .-.: I ...... - .~ ~ ~Q z w ~ :~~ .:E .. :.:J. . .' u~ ~g z:?;: z.t..") .w5 I 1'1 - D I . f l"~~ \ t-< Z ~ ::E :r: u -< t-< t-< -< \..- . \ - ~. j. .oJ . c.-.~- .- 1 I I. (' -I:t ' I ~ t' ..x- " I ;..x- , i (.1 1'1 I . ' I J ~ ~ '") / ---, N .... Z ~ ~ ..... ..... u <: .... 1-< <: - '" I ". ~.....- '>" I;,,' ", ", ~ "' ""::--J ' :::? r. -! iJ ~ 'oJ ~ I ~ 0:; p;ur;'::; I ~ ::;: 10 / 10 / !II" f~ / "'- Ii i~c;IlI!l~' @ "" i I rJ;' \ '\ "1 / " i/ r2~<ll. . \ 1 .1 --:--- /, il! ~- ...../ : Ii ~ : 2fJ2'1;g9' 1/ I \.1 " ~' t;;i~ ,____L~ -:--,\!I "- ~ i~ ~ i ~ ~\. \;:", ~}- ~ "1 ~ ! ~ I ~~ \~~~ ~ I/ii~ ::-~ ~ // -I ~ ~ i IF' "'- " I ~~~ "';<:j /' ~ ''''.' 8lli::!' ~;< ~ - I ;-- '\ ::;I~ _ -/ / "1 ~ I ~ ~~~ ' ~:~ /~! ~ I c~~ ;!~ ~ [::--t-.,..: i"~'=-~~.'-'!:: ~~~ ' ~1~11' I ' i~ ~ ~ ~~~ /) !11~ I """ I I : ~ :: ~ "'- ~~"y'. / ~ ~i~ ~- ~ ~~.\ ~! .----:::: L ____ ~f<~ Q, '- ~ L ~~-- J::; ~ ,- ($~ \(\ ---- ~~~ 3~Yldl)fVO V~SI^ !l::-': ~... ~ t / c::a i:~~ ~~~ <>:": II ~ -, e ~i ~;s~ ~~ 1----- C\ ~ ~ ...~..""" ~Il: I V 1"1 ,"E "'~.., !i:!~! ~ I I ----- ~ - =~ .... .... ! ~l;:: I ~S! -J I "'" I I q-~~~ I I .J.L7lff ,-... I I I I '" ~~ ~ -l r 'j ".J ~"l ,. I ~--:~ I '^" it;:~ ~~:;~ I I "'1 ,~~d~~ I I ~~~ ~~~ ~~~~~~- I I .!<'lyc......"1~~ I / \ / ~' , -...: '0 ! , i I , ~ "1 ~J" ~- I I I 1 I ! i J I ...../~ 1<-1 ~, !"'J; ~I ~/. . I .') \ \ "- \ , I .~ ;#) sJ1Y J/J.',:.r ~1> I ~ I E ; ;:.:. 'Of r dr-If' I tt., I )~ ,79, .fJNfi I 0[19'~ 'O^~ 1:;f;'C![ f7..LSiIf I '7'/fif{:J ./ I . ! AJ.$J~tN 1 '" " -,... ~ JA/;J(l \ \ \ \ "" ~ IS "- ~ '" ", ., 1 I. z o - CJ) - > - C a:1 ::::) CJ) <t Z o > w z <t ...I ...I W al -. III ~ ... - ... cD Ol a: .... 0 x t') u: .... cD - ,.. = - i .. . - - . Q Cl ~.': { ATTACHMENT 3 Revised 10/18/84 ?3S0LLryION NO. 11775 ?.ESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHUhll. VISTA MODIFYING OPEN SPACE MAINTENANCE DISTPJCT 10 ~he City Council of the City of Chula Vista ooes hereby resolve as follows: ~EREAS, James A. Hutchison and Associates, engineers for ~~e owner of E1 Rancho del Rey 6, have submi~ted a reguest to form a~ open space district, which complies with Condition of Approval No. 11 aoopted by Council Resolution 10103 approving the tentative map for said subdivision, and WHEREAS, it is proposed to modify Open Space District No. 10 by including portions of El Rancho del Rey 6 into that district as shown on Exhibits A and B, and WHEREAS, on August 28, 1984, by Resolution 11751, the City Council set October 2, 1984 as the date for the public hearing to consider the proposed modification. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby modify Open Space District No. 10 by including portions of El Rancho del Rey 6 into the district as shown on Exhibits A and B. - BE IT FURTHER RESOLVED that Assessor's Parcel Nos. 640-050-08, a 2.36 acre parcel, and 640-080-19, an 8.3 acre parcel, shall have a zero assessment. Presented by Approved as to form by /s/ John P. Lippitt John P. Lippitt, City Engineer ~/}7fl'.rh'/ ~0/7~ Thomas J. Harron, City ttorney V ILf- 7 ADO?TfD AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA V'STA, CALIFORNIA, this 2nd day of October /9 84 , by the following vote, to_it: AYES; Councilmen Malcolm, McCandliss, Moore, Cox NAYES: Councilmen None ABSTAIN; Co\rJcilmen None ABSENT: Councilmen Scott L, fl ~. /1. .. Mayrf!j of(}he City of Chula Vista ATTEST~';./ 1J!(~/ / / City Clerk"""'- (/ STATE Of CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HERESY CERTIFY that the above and foregoing is 0 full, true and correct copy of RESOLUTION NO. . 11775 , and that the some has not been amended or repealed. DATED October 12, 1984 /) / / (seal) 4~ vJ??~-& /" tI City 'Clerk ~ 1'1 -~ '.~ L (, ATTACHHEIH "A" COST A11AL YSIS - OPEN SPACE !.1AItJTHIMICE DISTRICT 10 Equivalent !).ve11ing Units (E1 Rancho del Rey 6A, B, C and D) Single family d~/e11ings, Lots 1 thru ,108 and 111 thru 367 Church site, lot 109 (2.607 ac) Commercial site, lot 110 (1.762 ac) D 2.7 edu (average density per acre) Residential Parcels (Bennett property) AP' No. 640-050-08 2.36 ac AP No. 640-0DO-19 8.30 ac 1 single family Or/el1ing ",. : JDtal .e.dIl 3IDR Ji p1m,~m:tt-pr.Dperty " Phase J tasa. Del Rey ,Total edu for cost -spread 00 en Space Area EROR 6 let A 8.290 ac. B 1.E:21 ac. D 4.309 ac. G 3.587 ac. H 7.471 ac. Total Lot I 4.961 ac. J 3.098 ac. K 0.350 ac. L 5.430 ac. 39.4] 7 ac. Ooen Space Area Casa Del Rey lout 1:10.795 ac. F 5.517 ac. :' . . '. .' '3D:ta 1. : .1D-.3 1.3.aJ:. ..~ lotal Op-en Space Area ., .,55.73 acres Estimated Annual cost of Maintenance 39.417 ERDE fj open space acres D .$O.OJ per square foot Annual cost of maintenance (Phase I) Casa del Rey Total annual maintenance to be spread Cosc per edu after boundary modification } '-1-'1' ~_//?'7S- 365.00 e'du 2.61 edu 4.76 edu ~edu ,. r;.J.' ,I ?1"~11'1?' ~ . . .-::c37J.37 . '22D.OO edu , : '."5!i3.J7 .$17,170.02 18,103.00 $35,273.00 .$ 59.45 " Estimated Annual Assessments I I Casa del Rey (original district Phase 1) 220 single family dllellings (I $59.1;5 $13,079.20 El Rancho del Rey: Single family dwellings 365 total Church site, Lot 109, 2.61 edu Commercial site, Lot 110, 1.76 ac. 4:76 edu's $21,697.50 155.16 282.9G Bennett Property: AP -No. 64D-050-0G, 2.36 ac. AP No. 64D-080-19, 8.30 ac. 1 edu "5-s...4..5 $35,274.09 TOTAL OP::N SPACE ASSESSNENTS - _:E'rll~ " -0 ".'"1 J 4 - ,0 f '----.> - ! i- 07 cr5) ATTACHMENT 4 RES:l'-.UiION ND. ,9016 RESDLUTION Dr THE CiTY COUNCIL Or THE CiTY Dr CHULl., VISTA DECLARING THE INTENT TO INCREASE THE OPE!I! SPACE DISTRICT NO. 10 ASSESSMENT ON SUBDIVISION CHULA VISTA TRACT 98-07. BELLA NEVDNA. AND SETTING THE TIIJlE AND PLACE rOR THE PUBLIC HEARING WHEREAS. the City CDuncil DT tne City Df Chula Vista. CalifDrnia. per CDun, Resoiution ND. 10103. has established Open Space District NO.1 O. and WHEREAS. the City CDuncil Dn OctDber 2. 1934 adDpted ResDlutiDn ND. 11775. whi, apprDved a zerD assessment fDr the Bennen parcels (A.P.N. 640-050-08, a 2.36 acre parc' and A.P.N. 640-080-39. a 8.3 acre parcell. and WHEREAS. a re.quest fDr a tentative subdivisiDn map with 28 single family detach, residences knDwn as the Bella NevDna SubdivisiDn is being prDpDsed by Western Paci, HDusing Dn a pDniDn Df the Driginal 8.3 acres (A.P.N. 640-080-39) Bennen parcel. and WHEREAS. these 28 single family residences are subject to the requirements Proposition 21 S. due tD the increase in assessment fDr the Open Space District assessmer NOW, THEREFORE. BE IT RESOLVED the City CDuncil of the City of Chula Vista dD' hereby declare its intent to increase the Open Space District NO.1 0 assessment on the Bel Nevona Subdivision and hereby sets a Public Hearing for 6:00 P.M. Dn July 14. 1998 in tl Council Chambers, Public Services Building. 276 rDunh Avenue. Chula Vista tD cDnsider tl increase in Open Space District ND. 10 assessment. Presented by Approved as tD fDrm by ;U/~L- ~~~ Arlh M. Kaheny ~J ~ty Anorney ~ Robe~ !...eher Planning Director 1&./ -II Resoic::i:J:1 19015 Page 2 Pt..SS:::D, '!'PP:::OV:::D, an~ ADOPT:::D by the City Council Df the City Df C:hula Vista, CalifD~:a, this 25th day Df May, 1998, by the fDllDwing vote: ,!.,Y=S: CDuncilmembers: Padilla, RindDne, and HDrtDn r-.':A YES: CDuncilmembers: None ;'.35=NT: Councilmembers: NDne !..3STAIN: CDunciimembers: MDot and Sales ~ - jf.rvvO'1 Shirley Hor 'on, Mayor ATTEST: ~~ C a~7dO; Beverly A. NJthelet, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DI:'GO CITY 0;: CHULA ViSTA I, Beveriy A. Autheiet, City Clerk Df Chuia Vista, California, do hereby certify that the fDregoing ResolutiDn ND. 19016 was duly passed, approved, and adDpted by the City Council at a regular meeting of the Chuia Vis,.a City CDuncil held on the 26th day of fVlay, 1998. Executed this 26th day of May, 1998. ~ t! t:bf~ Beverly A. ,Q(uthelet, City Clerk Jl./ -/~ ~~~ ~ -------- ~...;:::~=- ~1' tj'0'~' '"'/ , -'''x . v ~/'1' ~.. CI1Y OF CHUlA VISTA " DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION July 14, 1998 File: 0600-80-BNOO1F &07i5~30-0SDlO WESTERN PAClFlC HOUSlNG - BELLA NEVONA. L.L.C. a Delaware limited liability company By: Lamco Housing, Inc., a California corporation, M"n"vng Member 2385 CAMlNO VIDA ROBLE, SUITE 107 CARLSBAD, CA 92009 AITENTION: Mr. RYAN E. GREEN & LANCE M. W AlTE RE: CITY OF CHULA VISTA OPEN SPACE (LANDSCAPlNG & MAlNTENANCE) DISTRICT NO. 10 Pursuant to a change in land use applicable to certain property within the above referenced landscaping &maiIttenance district ("Open Space Distric:t# 10"), the City Council of the City ofChula Vista has initiated procef'ning< to consider increasing the assessments levied on such properties within the boundaries of Open Space District # 10. The City Council has scheduled a public hearing to receive testimony either in favor of or in opposition to the proposed increase in assessments. The public hearing will be held in the City Council cbambers located at 276 Fourth Avenue, Chula Vista, California on the following date and at the following time: PUBllC HEARING: JULY 28,1998 6PM Enclosed with this letter you will find a copy of the formal legal notice of this public hearing. This notice contains important information regarding the rights of the record owners of those properties located within the "Landscaping & Maintenance District" for which the assessments are proposed to be increased to be ~d regarding the proposed increase in assessments and to register their support for or opposition to such increase in assessments. The record owners of property subject to the imposition of'an increase in the assessment previously levied against their properties now have the right to express their support of or opposition to the proposed increase in assessments by testifying at the public hearing or by providing written correspondence at or prior to the public hearing and/or by participating in the assessment ballot procedure. An assessment baIlot and other enclosed materials are being forwarded to you as one of the record owners of property for which the assessments are proposed to be increased to enable you to exercise your right to submit an assessment baIlot pertaining to the proposed increase in assessments. The enclosed Notice of Public Hearing and Assessment Ballot Procedure contains important 10f2 276 FOURTH AVE/CHULA VISTA, CALlFOR_NiA SlS10'f61SI 691-5021 .~ information regarding the procedure for participating in the public hearing and submitting an assessment ballot. It is recommended that you read this notice carefully. The City will be authorized to increase the assessments as proposed only if a majority of the assessment ballots submitted are in favor of the proposed increase in assessments. The assessment ballots will be weighted based upon the amount of the proposed increase in assessments to be levied against individual parcels. THEREFORE, WHETliKK YOU ARE IN FA VOR OF OR OPPOSED TO THE ASSESSMENT, IT IS EXTREMELY IMPORTANT THAT YOU COMPLElE AND SUBMIT YOUR ASSESSME!\'T BALLOTS TO THE CITY SO THAT YOUR SUPPORT OF OR OPPOSmON TO THE INCREASE IN ASSESSMENTS WILL BE TABULAlED. In order for your assessment ballot to be tabulated, it must be completed as described in the Instructions and received either by mail, or in person, at the office of the City Clerk, on or prior to 5:00 p.m. on July 28, 1998 or at the public hearing to be held on such date at the address set forth in the enclosed notice prior to the conclusion of such public hearing. If you are moiling your assessment ballot, you may insert in the enclosed return envelope and deposit it in the mail allowing adequate time for the assessment ballot to be received prior to the above time. If you are personally delivering your assessment ballot, it must be delivered to the following address: CITY CLERK CITY OF CHULA VISTA 276 FOURm AVENUE CHULA VISTA, CALIFORNIA 91910 PLEASE NOlE THAT POSTMARKS ARE NOT ACCEPlED. Should you have any questions regarding this letter, the assessment ballot package, or the assessment ballot procedure, please call Frank Rivera, Civil Eneineer at (619) 691-5266 or, Beverly A. Authelet, City Clerk at (619)691-5041. . Very trnly yours, cU~~~ "in.. BEVERLY A. A . Zt CITY CLERK CITY OF CHULA VISTA -- 20f2 "' I NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE CITY OF CHULA VISTA LA..~'DSCAPING & MAINTENANCE (OPEN SPACE) DISTRICT NO. 10 PROPOSED INCREASE IN ASSESSMENT RESOLUTION OF INTENTION TO INCREASE ASSESSMEl'o'TS NOTICE IS HEREBY GIVEN that the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did, on the 26th of May, 1998, adopt its Resolution of Intention declaring the intent to increase assessments levied in a certain landscaping & maintenance district, known and designated as OPEN SPACE DISTRICT NO. 10. NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN mAT A PUBUC HEARING IS HEREBY SCHEDULED IN THE REGULAR MEETING PLACE OF TIllS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, ON JULY 28, 1998 AT 6:00 PM AT WIllCH TIME THE CITY COUNCIL WILL HEAR ANY OBJECTIONS TO THE PROPOSED INCREASE IN ASSESSESMENTS. ANY INTERESTED PERSON MAY APPEAR BEFORE THE CITY COUNCIL AND SHOW CAUSE WHY THE PROPOSED CHANGES AND MODIFICATIONS SHOULD NOT BE MADE IN ACCORDANCE WITH THE PROVISIONS OF THIS RESOLUTION. RIGHT TO SUBMIT ASSESSMENT BALLOT PURSUANT TO THE PROVISIONS OF THE ASSESSMENT LAW, EACH RECORD OWNER OF PROPERTY FOR WIllCH THE ASSESSMENT IS PROPOSED TO BE INCREASED HAs THE RIGHT TO SUBMIT AN ASSESSMENT BALLOT IN FA VOR OF ORIN oPPosmON TO THE PROPOSED INCREASE IN ASSESSMENT. AN ASSESSMENT BALLOT IS ENCLOSED WITH TIllS PUBUC NOTICE. YOU Mil. Y COMPLETE SUCH ASSESSMENT BALLOT AND THEREBY INDICATE YOUR SUPPORT FOR OR oPPOSmON TO THE PROPOSED INCREASE IN ASSESSMENT. ALL SUCH ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY CLERK AT OR BEFORE THE TIME SET FOR THE CLOSE OF THE PUBLIC HEARING. ASSESSMENT BALLOTS MAY BE MAILED TO THE CITY CLERK IN THE RETURN ENVELOPE ENCLOSED WITH THE ASSESSMENT BAlLOT. IF ASSESSMENT BALLOTS ARE TO BEPERSONALL Y RETURNED, THEY MUST BE DEUVERED TO THE FOLLOWING ADDRESS: CITY CLERK CITY OF CHULA VISTA 276 FOURTH AVENUE CHULA VISTA, CALIFORNIA 91910 1 ~ ASSESSMENT BALLOTS MUST BE MAILED OR DELIVERED SO THAT TIlEY WTI...L BE RECEIVED BY THE CITY CLERK PRIOR TO THE CONCLUSION OF THE PUBLIC HEARING. A POSTMARK PRIOR TO SUCH DATE AND TIME WILL NOT BE SUFFlCIENT. AT THE CONCLUSION OF THE PUBLIC HEARING, TIlE CITY COUNCIL SHALL CAUSE THE ASSESSMENT BALLOTS TIMELY RECEIVED TO BE-TABULATED. IF A MAJORITY PROTEST EXISTS, THE CITY COUNCIL SHALL NOT IMPOSE AN INCREASE IN THE ASSESSMENT ON ANY PARCEL WITHIN THE ASSESSMENT DISTRICT. AMAJORITY PROTEST EXISTS IF, UPON THE CONCLUSION OF TIlE PUBLIC HEARING, ASSESSMENT BALLOTS SUBMITTED IN oPPOSmON TO THE INCREASE IN ASSESSMENTS WITHIN THE ASSESSMENT DISTRICT EXCEED THE ASSESSMENT BALLOTS SUBMITTED IN FAVOR OF SUCH INCREASE IN ASSESSMENTS. IN TABULATING THE ASSESSMENT BALLOTS, THE ASSESSMENT BALLOTS SHALL BE WEIGHTED ACCORDING TO THE PROPORTIONAL FINANCIAL OBLIGATION OF THE AFFECTED PROPERTY. PROCEEDINGS INOUIRIES For all information relating to these proceeifings and the hearing, the written procedure or the assessment ballot procedure, your attention is directed to the person designated below: FRANK RIVERA ENGINEERING DEPARTMENT CITYOFCHULA VISTA 276 FOURm AVENUE CHULA VISTA, CALIFORNIA 91910 (619)691-5266 DATED: . C)u.I!/ /-t/ /tJP% . {/ d / .- ~L..CITY CLERK !J CITY OF CHULA VISTA STATE OF CALIFORNIA 2 ~ omclAL ASSESSMENT BAILOT ASSESSMENT BALLOT PROCEDURE CITY OF CHULA VISTA LANDSCAPING & MAINTENANCE DISTRICT NO. 10 (OPEN SPACE DISTRICT NO. 10) INCREASING ASSESSMENT PROCEEDINGS - Name and address of record owner: WESTERN PACIFIC HOUSING - BELLA NEVONA, L.L.C. A Delaware limited liability company 2385 CAMINO VIDA ROBLE, SillTE 107 CARLSBAD, CA 92009 AITENTION: Mr. RYAN E. GREEN & Mr. LANCE M. WAITE Parcel Identification: A.P.N. 640-08048 Total parcels owned: 1 Current assessment: $ 0.00 Proposedassessment: $ 2,504.60 CERTIFICATION OF ENTITLEMENT TO COMPLETE AND SUBMIT ASSESSMENT BALLOT: To be entitled to complete and submit this assessment ballot, the person completing and submitting this assessment ballot must be (a) the record owner of the property identified above or (b) the representative of the record owner who is legally authorized to complete and submit this assessment ballot for and on behalf of the record owner. The Wldersigned certifies under penalty. of perjury that he/she is entitled to 'complete and submit this assessment ballot and hereby waives all time limits pertaining to notice of the public hearing and receipt of the assessment ballots pertaining hereto: Signature of person completing assessment ballot Print name of person completing assessment ballot . THIS ASSESSMENT BALLOT WILL NOT BE TABULATED UNLESS THE ABOVE CERTIFICATION IS EXECUTED BY THE PERSON COMPLETING THIS ASSESSMENT BAILOT. ASSESSMENT BALLOT QUESTION: To complete this assessment ballot, you must fill in only one of the squares below. Filling in both squares will void this assessment ballot. Do you approve the increase in the assessment of the above identified property as proposed? o YES o NO Upon completion place the assessment ballot in the return envelope and mail or deliver the assessment ballot to the address shown on the return envelope pursuant to the instructions enclosed with this assessment ballot. ITEM TITLE: A. SUBMITTED BY: REVIEWED BY: COUNCIL AGENDA STATEMENT ItemS Meeting Date 8/04/98 B. Public Hearing regarding the declaration by the City Council of its intention to establish Community Facilities 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 and the intent to authorize a special tax to pay for all or a portion of such public services. Resolution t~ll1 of the City Council of the City ofChula Vista, California, making certain preliminary findings, passing upon protests and approving the Community Facilities District Report. Resolution fi 130 of the City Council of the City of Chula Vista, California, establishing Community Facilities District No. 98-3 (Open Space Maintenance District #35 [Sunbow II]) and authorizing the submittal of levy of a special tax therein to finance certain services to the qualified electors. Director of Public works~F City Manager1)R ~ ~ C. (4/5ths Vote: Yes_NoX) The Ayres Land Company has requested the City to conduct proceedings 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. The City has retained the services of Dick Jacobs Associates as special tax consultant and Brown, Diven, Hessel & Brewer as legal counsel to provide assistance during the proceedings. Tonight's action will finalize the formal proceedings leading to the establishment of Community Facilities District No. 98-3. 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. 98-3 or the owners of land within CFD No. 98-3. 3) Approve the resolution making preliminary findings, passing upon protests and approving the CFD No. 98-3 report. 4) Approve the resolution establishing CFD No. 98-3 and submitting the levy of a special tax to finance certain services to the qualified elector of CFD No. 98-3. ISR-I Page 2, Item_ Meeting Date 8/04/98 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On January 13, 1998, Council adopted the "City ofChula Vista statement of goals and policies regarding the establishment of Community Facilities Districts" (CFD). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services, including services provided by open space districts. On Apri128, 1998, Council enacted the "Chula Vista Community Facilities District Ordinance". This ordinance adopted the Mello-Roos Act with modifications to accomplish the following: I) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" ("1972 Act"), 2) include maintenance activities not listed in the "Mello-Roos Act" or the "1972 Act" and 3) establish an operating reserve fund for open space districts. On June 23, 1998, Council approved the following four resolutions related to Sunbow II CFD #98-3 (Open Space District # 35): 1). Resolution #19061, making appointments in proposed CFD # 98-3 (Open Space District (OSD) #35), which is the formal action of the City Council appointing itself as the legislative body of the proposed CFD; 2). Resolution#19062~ adopting a boundary map showing the boundaries of the territory proposed for inclusion in CFD #98-3, which is the formal action adopting the map and setting forth the boundaries of the proposed CFD; 3). Resolution #19063, declaring its intention to establish CFD #98-3 and to authorize the levy of a special tax therein to finance certain services and setting the time and place for the public hearing; 4). Resolution #19064, ordering and directing the preparation of a "Report" for proposed CFD #98-3 (OSD 35[SUNBOW II]) which is the formal action of the City Council directing the preparation of a detailed report containing a description of the services and its estimated cost. 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. The proposed CFD # 98-3 is consistent with the above mentioned Council Policy and Ordinance. In addition, the consultant, legal counsel, and staff have met numerous times with the developer and merchant builder to discuss their concerns, clarify the intent of the policy and ordinance, and review the methodology for the apportionment of the special taxes. All of the issues raised by the developer and merchant builder have been thoroughly discussed and solutions, satisfactory to all parties, have been incorporated in the "Rate and Method of Apportionment". ,~ ~ - ~ Page 3, Item_ Meeting Date 8/04/98 Staff, the legal counsel, and the special tax consultant have reviewed the proposed methodology and consider it ready for Council approval. Prooosed Boundarv The proposed boundary of CFD # 98-3 encompasses all parcels located within the Sunbow II, which includes a total acreage of 602 acres. At buildout, the district will contain a maximum 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. Staff has recorded the boundary map on July 01, 1998, being within 15 days of the June 23, 1998 approval of Council Resolution # 19062. A reduced copy of the map is presented in Exhibit I. Descriotion of Facilities The services proposed to be provided are additional services authorized to be provided by the City and are not replacing levels of service already available. The proposed CFD #98-3 will fund the following services generally described as: Maintenance of medians, parkways, landscaped and irrigated slopes, natural non-irrigated open space, certain drainage channels, detention basins, walls and fences, trails, including furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of any improvement or appurtenant facilities, including repair, removal or replacement of all or any part of the improvement or appurtenant facilities, providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trinuning 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, to serve properties within the boundaries of the Sunbow II Open Space District #35 (see Exhibit 2). A complete list of said public facilities is presented in Exhibit 3. Prooosed Soecial Tax Land Classes The district has three categories of land which may be taxed, as follows: . Class I - Developed Property. Developed parcels are those parcels for which a Final Map or Site Development Plan has been issued. . Class II - Undeveloped Property. The Undeveloped Land category includes all the parcels not classified as developed or exempt. . Class III - Exempt Property. The exempt property includes all assessor's parcels of property existing at the time of the establishment of the District or which will be conveyed, dedicated or irrevocably offered for dedication to a public agency pursuant to a City plan or agreement which are exempt from the levy of special taxes, including property owned by a public agency which is in public use; property which is utilized for public utility purposes and which is not occupied on a regular basis by employees of the public utility; property 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. Cost Estimate The annual budget for CFD No. 98-3 at buildout has been estimated at $803,562 in 1998 dollars. Exhibit 3 contains a detailed annual budget for the district at buildout. The unit prices used in ,~~ - 3 Page 4, Item_ Meeting Date 8/04/98 determining the budget are based on historical costs of maintenance of similar improvements within existing Open Space Maintenance Districts in the City. 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 CostlEDU/Year Costl 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 The Maximum Special Tax on developed parcels is calculated by multiplying the Maximum Special Tax Rate per Equivalent Dwelling Unit (EDU) times the number of EDU's per parcel. The single family detached dwelling unit is one EDU and other land uses are a ratio relative to this measure. The total revenue generated for a given Fiscal Year is the sum of all Developed Parcels assigned to the Class I category. Then, if the total revenue generated by Class I is greater than the Special Tax Liability for the district, then the Special Tax for each parcel in category I is reduced proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. If the total revenue is less than the Special Tax Liability of such Special Tax Area, a Special Tax shall be levied upon each Parcel assigned to the Class II (Undeveloped Category). Comparison to other Open Soace Maintenance Districts The total budget for CFD No. 98-3 at buildout is estimated at $803,562 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 I, Open Space District # 18 had an assessment of $312.32 for FY97/98 and is 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 detennine 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 property. The buffer of having the undeveloped property 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. I~ f)- J.f Page 5, Item_ Meeting Date 8/04/98 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 funding short falls. Tonight's Actions . Conducting the public hearing and considering and passing upon protests, if any . Approving the community facilities district report . Making certain mandates rmding: . That all proceedings to form CFD No. 98-3 were valid and taken in conformity with the requirements of law . That the proposed services are necessary to meet increased demands upon the City as a result of development in CFD No. 98-3 . Establishing CFD No. 98-3 . Submitting the levy of the special taxes to the qualified electors ofCFD No. 98-3, Le., the landowners at a special election to be held the following week on August 11, 1998. 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. Exhibits: 1- 2- 3 - 4- 5- 6- 7- Boundary Map Landscaping Improvements Special Tax Report for CFD # 98-3 (OSD #35 [SUNBOW Ill) Resolution # 19061 Resolution # 19062 Resolution # 19063 Resolution # 19064 ~> ~/ July 24, 1998 H:\HOME\ENGINEER\AGENDA\WSUNBown.FXR CFD #98-3 (File:0725-30-0SD35) )~fI-S j RESOLUTION NO. ~1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, MAKING CERTAIN PRELIMINARY FINDINGS, PASSING UPON PROTESTS AND APPROVING THE COMMUNITY FACILITIES DISTRICT REPORT 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 Community Facilities District 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. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m) (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 Community Facilities District 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 Community Facilities District Report as now submitted further containing changes and modifications to the proceedings, as applicable, is hereby approved; 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 FOLWWS: 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 defmed by the applicable provisions of the Community Facilities District Law. 1 108- I \ 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. 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. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II])". 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. SECTION 6. 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 P. Lippitt Director of Public Works eny Attorney 2 ~6-~ RESOLUTION NO. 19130 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 93-8 (OPEN SPACE MAINTENANCE DISTRICT NUMBER 35 (SUNBOW II) AND AUTHORIZING THE SUBMITTAL OF LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES 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. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW m) (the "District"); and, WHEREAS, this legislative body has further declared its intent that the authorized publlic services be fmanced 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 re1ating 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; 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. I~-I j PROTESTS SECTION 2. The written protests received, if any, do not represent a majority protest as dermed 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: All 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 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 of Book 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 or appurtenant facilities, including repair, removal or replacement of all or any part of the improvement or appurtenant facilities, providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, /1C-A 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: JSC-~ r. r ANANCEDEPARTMENT 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 of the 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 11TH 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. J* -1./ BALLOT SECTION 12. 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. 98-3 (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 No. _ to finance authorized services? PROPOSITION B Shall COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) establish an Article XIIm appropriations limit equal to $1,000,000? yg:rn 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 ofsaid propqsition. 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. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. J~C -s 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: ~i~~~~ -ivY' Jo . Lippitt Director of Public Works J~ C - ~ ( OPEN BOUNDARY MAP COMMUNITY FACIUTIES DISTRICT NO. SPACE MAINTENANCE DISTRICT NO. 35 CIlY OF CHULA VISTA COUNTY OF SAN DIEGO STATE OF CAUFORNIA _ l'ElEGRAPH CANYON ~ --, . . \ . . \ . . \ . \ . , \ , , 641-110-51 B . , \ '. ...."'"'\ \.........--- \ \ , , _J ...-- -- 141~1f1 . , --....... , , \ 541-122-01 \ ..---.... ...-- ...."".... e ..,........, 541-122-03 WN> NO. 13423 uns I THIlU J32 \ 3- ~ "'1:-0 :...--\ ~~I';ial"I to\.~ ""'-'",...., " , i I 044-011-02 , I L_________ ------------------------------------- F1UD IN 'THE 0f'F1Ct or THE an' a.mc or THE crrr OfF 0flAA...sf'" THIS _ ~:r Of' _ 1"_ '" ! ~ CI1YCURK IlEYERLYA..AI.In€I.EI' aTY OF CHIM WSTA, STA1Eor~ I l-EREB'f camFY TmT THE EIOlJJOIrR'( loW' SHOWING PROPCISfIl BOlJHIWtlES OF CFD NO. 8&-J IN THE CITY OF 0IJl.A WST.\ COUNTY or s.N 01(00. STATE OF' ~ WAS~SYTHEaT'fCCllJHCl..orl'M[aTYOf' CHl.Il.4 'o1STA AT It RmlJt.,IrR IolEDtHG HEREtlf. HEll) (>>ITHE_~yor 16- ST ITS RESOUtnOH NO. .I..EliEllil --u-"-lllSlRICT8OUNC\oIRt' -. """'- UHE 541-122-00 ASSESSOR'S PARCU. 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FOURNIER - PUBLIC FINANCE CONSULTA...',"T ,.- ~ -- /5c -// /s-e - ( d-- COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SlJ!liBOW II]) CITY OF CHULA VISTA CITY COUNCIL Shirley A. Horton, Mayor John S. Moot Stephen C. Padilla Jerry R. Rindone Mary Salas CITY STAFF David D. Rowlands, Jr., City Manager John M. Kaheny, City Attorney Beverly A. Authelet, City Clerk John P. Lippitt, Director of Public Works PROFESSIONAL SERVICES Dick Jacobs Associates - Special Tax Consultant Jerome P. Fournier, Public Finance Consultant Brown, Diven, HesselI & Brewer - Special Counsel --i?- COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPE~ SPACE MAINTENANCE DISTRICT NO. 35 [SUl't""BOW II]) CITY OF CHULA VISTA TABLE OF CONTENTS ~ Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Part L Description of District Boundary ........................................ 2 Part II. Description of Maintenance Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1. Street Medians and Parkways . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2. Landscaped and Irrigated Slopes ................................ _ . . . . . 4 3. Natural Non-Irrigated Open Space Areas ............................... 4 4. Poggi Canyon Cbannel and Desilting Basins ............................. 4 5. Telegrapb Canyon Drainage Cbannel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6. Community Walls ............................................. _ . . . . 4 Part m. Cost Estimate .... _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . 6 Part IV. Rate and Metbod of Apportionment of Special Taxes ...................... 7 Definitions ................................ _ . . . . . . . . . . . . _ . . _ . . . . . . . _ . 7 Property Categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . 9 Maximum Special Tax Rate ........... _ . . . . . . . . . _ . . . . . . . . . _ . _ . . . . . . . _ . 10 Increasing tbe Maximum Special Tax Rate ............. _ . . . . . . . . . . _ . . . . . _ 11 Levy and Apportionment of Special Taxes. . . . . . . . . . . . - _ _ _ 11 7 / (ie. r TABLE OF CONTENTS (Continued) Extraordinary Special Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12 List of Tables ~ Table 1 - Summary of Facility Maintenance Costs at Build Out .....................6 Table 2 - Maximum Special Tax Rate ............... _ . . . . . . . . . . . . _ . . . . . . . . . _ . . 10 List of Exhibits Exhibit A - Boundary Map ................................................. 14 Exhibit B - Facility Maintenance Costs and Spread Methodology ...... _ . . . . . . . . . . . IS Exhibit C - Special Tax Revenue by SPA Planning Area at Build Out. . . . . . . . . . . . . . . . 16 Exhibit D - Assessor's Parcels at Formation of District ........................... 17 ExhibitE-LocationMapofMaintainedFacilities ..............................18 (~~-/Y 7 , COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW Ill) CITY OF CHULA VISTA ThlRODUCTION The City of Chula Vista (City) has been requested to initiate proceedings to establish a Community Facilities District to include that property commonly known as Sunbow II for the purpose of providing maintenance and services of medians and parkways, community walls, landscaped and irrigated slopes, natural non-irrigated open space and certain drainage channels and detention basins which will be constructed with the Sunbow II development. Creation of the Community FaciIities District will provide funding to meet increased demand upon the City as a result of development within the boundaries of the proposed Community Facilities District (District). The proposed District is located in the City of Chula Vista, County of San Diego, State of California, as depicted on a reduced map of the boundaries thereof: Exhibit A, Boundary Map, included herein. The City adopted Resolution No. 19063 declaring its intention to form Community Facilities District No. 98-3 (Open Space Maintenance District No. 35 [Sunbow ll]) and ordered the preparation of a report describing the proposed services to be financed by the District. The proceedings are being conducted in accordance with the provisions of the "Mello Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2, Title 5, commencing with Section 53311, of the Government Code of the State of California (the Act) and the City of Chula Vista Community Facilities District Ordinance. The report has been prepared by, or under the direction of the Director of Public Works and other such officers respOnsIble for the providing of the services to be financed by the proposed District. The report has been prepared in accordance with Section 53321.5 of the Act and includes: 1) A description of the area to be served, said area being the boundaries of the District. II) A description of the maintenance services which are required to adequately meet the needs of the District. Ill) A cost estimate, setting fourth the fair and reasonable costs and expenses for providing the public services to serve the properties and residents within the boundaries of the District. IV) The rate and method of apportionment of the special tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the maximum amount of payment. / Open Space Maintenance District No. 35 - Sunbow II Page 1 Fq JI. ...__ /5 r!.- -- r. Part I - Description of District Boundary The proposed Community Facilities District No. 98-3, (Open Space Maintenance District No. 35 [ Sunbow IT]), is generally described as lands within Chula Vista Tract 90-07. The boundaries of the District are described in Exhibit A of this report. Reference is hereby made to the full scale Boundary Map for Community Facilities District No. 98-3 on file in the office of the City Engineer of the City of Chula Vista. A full listing of all parcels included in this Mello-Roos formation, as they existed at the time the District was formed, can be found in Exhibit D. Open Space Maintenance District No. 35 - Sunbow II Page 2 /3c -/~, 10 ~"," -_/ f Part II - Description of Maintenance Services Section 53311.5 of the Act provides for alternate financing of certain services in developing areas. Since there are no other means of financing these services available to the City, and since the services are required to meet additional demands on the City as a result of development occurring within the proposed District, the financing of the proposed services is in accordance with Section 53313.5 of the Act and the City of Chula Vista Community Facilities District Ordinance. The proposed services include all direct, administrative, and incidental annual costs and expenses related to providing for the maintenance and servicing of 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 parkway and median, landscaping, drainage facilities, and open space slopes, trails and walls. Maintenance and services to include but not be limited to the improvements listed below. Reference is made to the Map included as Exlnbit E which more fully identifies the locations of the improvements to be maintained within Open Space Maintenance District No. 35 - Sunbow II. 1. STREET MEDIANS AND PARKWAYS Landscaping and irrigation system improvements in the street median and parkway areas and in subdivision entries and intersection zones, buffers and edges including but not limited to the following landscaped corridors: A. East Palomar Street from Oleander Avenue to the eastern Sunbow II CFD boundary; B. Medical Center / Brandywine Drive from its intersection with the Sunbow II CFD boundmy at the north to its intersection with the Sunbow II CFD boundary at the south; C. Pasco Ladera from Telegraph Canyon Road to approximately 1,300 feet south of East Palomar Street; D. Olympic Parkway from its intersection with Oleander Avenue at the west to its intersection with the Sunbow II CFD boundary at the east; E. Medical Center Court from the Sunbow II crn boundary at the north to East Palomar Street; F. Telegraph Canyon Road (south parkway and II, median) that fronts the Sunbow II crn boundary at the north. Open Space Maintenance District No. 35 - Sunbow II Page 3 -..;c.- If 15C!- -( 2. LA..~l>SCAPED Mill IRRIGATED SLOPES Landscaping and inigation system improvements located on landscaped and irrigated slopes in open space lots to include but not be limited to those within or adjacent to the following SPA Planning Areas (Identified as PAs on Exhibit E): A. SPA Planning Area 12 B. SPA Planning Area 13 C. SPA Planning Area 14 D. SPA Planning Area 15 E. SPA Planning Area 16 F. SPA Planning Area 17 G. SPA Planning Area 18 H. SPA Planning Area 19 I. SPA Planning Area 20 J. SP APlanning Area 21 K. SPA Planning Area 22(On and off site) L. SPA Planning Area 11 M. SPA Planning Area 23 3. NATURAL NON-IRRIGATED OPEN SPACE AREAS Natural open space lands and slopes containing temporary inigation systems to create indigenous plant growth and habitat as mitigation for direct and indirect impacts to native plants and animals; and natural open space lands including the restored wetlands. The natural open space lands and slopes are located generally north and south of Olympic Parkway and east of Medical Center Drive in the Poggi Canyon dedicated open space area. 4. POGGI CANYON CHANNEL A..1'W DESILTING BASINS Maintenance to assure continued hydraulic capacity and silt containment to include removal of sediment from three (3) detention basins located in Poggi Canyon, south of Olympic Parkway. 5. TELEGRAPH CA..~ON DRAINAGE CHANNEL The Sunbow IT development, per City Resolution 17588, is required to participate through contribution of its proportionate share (3.1 %) of the cost of maintaining the Telegraph Canyon Drainage Channel. The Telegraph Canyon Drainage Channel is located adjacent to Telegraph Canyon Road and extends from the Eastlake development in the east to the western boundary of the Rancho Del Rey development east of Paseo Ladera. 6. COMMUNITY WALLS Open Space Maintenance District No. 35 - Sunbow II Page 4 ISa.-I?( ~ Commtmity Walls located generally along internal circulation streets that separate the circulation streets from the individual developed SPA areas. OPERA nONS AND MAINTENANCE EXPENSES Maintenance of the foregoing improvements means the furnishing of services and materials for the ordinary and usual operation, maintenance and servicing of any improvement or appurtenant facilities, including repair, removal or replacement of all or any part of the improvement or appurtenant facilities, providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste. Maintenance also means the furnishing of water for the irrigation of the landscaping, the installation of planting or landscaping, or the installation or construction of supplemental facilities including any facilities which are necessary or convenient for the maintenance of eligible facilities. The foregoing services shall be provided by the City, either with its own forces or by contract with third parties, or any combination thereot: as determined by the City. ADMINISTRATIVE EXPENSES 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 the 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 expenses incurred by the City in undertaking action to foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City. INCIDENTAL EXPENSES The incidental expenses to include: (i) all costs associated with the admini<:tration of the proposed commtmity facilities district, the determination of the amount of and collection of taxes, the payment of taxes, and costs otherwise inClllTed in order to carry out the authorized purposes of the community facilities district, and (ii) any other expenses incidental to the maintenance and inspection of such facilities, including the establishment of a reserve fund equal to up to 100% of the estimated annual maintenance costs. Open Space Maintenance District No. 35 - Sunbow II Page 5 I~ /5' e~! Part III - 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 in Table 1 below. The total annual cost is estimated to be S803,562 (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 DISTRICT NO. 35 - SUNBOW II SUMMARY OF FACII,ITV MAINTENANCE COSTS AT BUII,D OUT MAINTAINED FACILITY ESTIMATED lIMI COST PER TOTAr. rmT OUANTITY UNITIYR PER YR 1. Street Medians and 640,863 Sq. Foot SO.295 S189,055 Parkways 2. Landscaped and 2,548,817 Sq. Foot $0.205 S522,507 hrigated Slopes 3. Natural non irrigated open space A. Biological 1 Lump Sum S17,500 S17,500 Monitoring and Reporting B. Revegetated Non- 621,900 Sq. Foot SO.0217 $13,495 hrigated Slopes C. Native Open Space 5,176,670 Sq. Foot SO.OO844 $43,691 Land 4. Poggi Canyon 1 Lump Sum S2,000 $2,000 Drainage Channels and Basins 5. Telegraph Canyon 1 Lump Sum SI,350 SI,350 Drainage Channel 6. Community Walls 16,824 Linear Feet SO.83 $13,964 Total Cost $803,562 Open Space Maintenance District No. 35 - Sunbow II Page 6 --<.- ! S-c:- ~d6 ~- F or a more detailed presentation of facility maintenance costs and the method used to distribute the costs for each type of maintained facility, please refer to Exhibit B of this report. Part IV - Rate and Method of Apportionment of Special Taxes A Special Tax shall be levied annually on land within Community Facilities District N{). 98-3 (Open Space Maintenance District No. 35 [Sunbow II]) 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. It is intended that all Special Taxes applicable to Parcels be rollected 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: The area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or a current recorded subdivision map, parcel map, record of survey or 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: 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, 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. Assessor's Parcel: 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. City: The City of Chula Vista. Open Space Maintenance District No. 35 - Sunbow II Page 7 ~ ,. J5~ -' ~ , Developed Property: Non-exempt Property Assessor's Parcels in the District that have been included within a recorded Final Map, in the case of Single Family detached land use, or an approved Site Development Plan, in the case of other land uses, as of March I of the preceding Fiscal Year. District: Co=unity Facilities District No. 98-3 (Open Space Maintenance District No. 35 [Sunbow II]) of the City ofChula Vista. Dwelling Unit: Any building or portion thereof which contains living facilities, including provisions for sleeping, eating, cooking, and sanitation, for no more than one family, or a congregated residence for 10 or fewer persons. Equivalent Dwelling Unit: A unit of measurement whereby a single family detached dwelling unit is equal to one basic unit and all other land uses are a ratio relative to this measure. Exempt Property: Assessor's parcels of property existing at the time of the establishment of the District or which will be conveyed, dedicated or irrevocably offered for dedication to a public agency pursuant to a City plan or agreement which are exempt for the levy of special taxes, including property owned by a public agency which is in public use; property which is utilized for public utility purposes and which is not occupied on a regular basis by employees of the public utility; property 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. Extraordinary Special Tax: That tax over and in addition to any Special Tax authorized to be collected in conjunction with a reduction in the special tax revenue that could be collected upon full development of the land in the District. Extraordinary Special Tax Account: A special City account established for holding and administrating Extraordinary Special Tax funds received, including interest earnings thereon. Fiscal Year: The period starting on July 1 and ending the following June 30. Maximum Special Tax: The maximum special tax that can be levied within CFD No. 98-3 by the City Council in any Fiscal Year for each Parcel of Taxable Property. Operating Fund: A fund that shall be maintained for the District for any Fiscal year to pay for the actual maintenance, repair, and replacement, and the Administrative Expenses. Operating Fund Balance: The amount of funds in the Operating Fund at the end of the Open Space Maintenance District No. 35 - Sunbow 11 Page 8 (::;~-zZ- Gi?- preceding Fiscal Year. Operating Fund Requirement: For any Fiscal Year an amount equal to the budget costs of the maintenance, repair and replacement of eligible 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. Reserve Fund: A fund that shall be maintained for the District 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: The amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement: The required balance in the Reserve Fund equal to up to 100% of the Operating Fund Requirement. Special Tax: The special tax or special taxes actuaI1y levied for a fiscal year within CFD No. 98-3. Special Tax Liability: For any Fiscal Year, an amount determined to be sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Food to meet the Operating Food Requirement, less the operating Fund Balance, and (ii) an amount, if any, required to be deposited into the Reserve Fund to meet the Reserve Fund Requirement, less the Reserve Fund Balance. Taxable Property: All real property or Parcels within the booodaries of the District which are not exempt from the Special Tax pursuant to law, or Parcels which are classified or assigned to the Exempt Category as defined herein. Undeveloped Property: An Assessor's Parcel in the District not classified as Developed Property or Exempt Property. PROPERTY CATEGORIES The property categories to which Assessor's parcels in the District shall be assigned are as follows: Class 1 - Developed Property Open Space Maintenance District No. 35 - Sunbow 11 Page 9 ~ 1St! ~.;2 ~ / >. -. ) Class 2 - Undeveloped Property Class 3 - Exempt Property 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 one of the three property categories as defined above. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor as of the March 1 preceding such July L MAXIMUM SPECIAL TAX RATE Class 1 - Developed Property The maximum special tax rate for Class 1 - Developed Properties per Equivalent Dwelling Unit (EDU) or acre for the various land uses within the District commencing with July 1, 1998 are specified in Table 2 below: TABLF.2 OPEN SPACE MAINTENANCE DISTRICT NO. 3S - SUNBOW II MAXIMUM SPECIAl, TAX RATE - CLASS] - DEVELOPED PROPERTY MAINTAINED FACILITY RESIDENTIAL INDUSTRIAL COMMERCIAL TOTAL COST cosT/EDUIYR cosT/ACREIYR COST/ACREIvR PER YR 1. Street Medians and $64.81 $1,296.20 $1,620.25 $189,055 Parltways 2. landscaped and $240.68 $1,203.40 $1,203.40 $522,507 Irrigated slopes 3. Natural non irrigated $34.40 $172.00 $172.00 $74,686 open space 4. Poggi Canyon $0.92 $4.60 $4.60 $2,000 drainage channels and basins 5. Telegraph Canyon $0.62 $3.10 $3.10 $1,350 drainage channel 6. Community Walls $6.43 $32.15 $32.15 $13,964 Max Special Tax Rate $347.86 $2,711.45 $3,035.50 $803.562 Open Space Maintenance District No. 3S - Sunbow II Page 10 / S~ -81 -~. ~ Class 2 - Undeveloped Property The maximwn special tax rate that may be levied within the District commencing with July 1, 1998 for Class 2 - Undeveloped Property is as follows: Maximum Special Tax Rate Equals 52,078.54 per Acre INCREASING THE MAXIMUM SPECIAL TAX RATE Beginning with Fiscal Year 1998-99, the Maximwn Special Tax Rates shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or the annual change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. LEVY AND APPORTIONMENT OF SPECIAL TAXES The City shall determine the Special Tax Liability in each Fiscal Year on or about every July L The Special Tax Liability shall be then levied on each Parcel in the Class I - Developed Category and Class 2 - Undeveloped Category in the following order of priority: Step 1: Determine the mlllomwn revenue which could be generated in the District by multiplying the total Equivalent Dwelling Units (EDU's) of all Developed Parcels assigned to the Class I - Developed Category by the Maximwn Special Tax per EDU. . Step 2: If the total revenue as calculated in Step I is greater than the Special Tax Liability for the District, 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 of such Special Tax Area, a Special Tax shall be levied upon each Parcel assigned to the Class 2 - Undeveloped Category. The Special Tax for the Class 2 - Undeveloped Category shall be calculated as the lesser of: (i) The Special Tax Liability for the District, less the total of funds generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels Open Space Maintenance District No. 35 - Sunbow II Pagell ~ ( .?0i~(}::[ assigned to the "Class 2 - Undeveloped Category" within the District. OR, (ii) the Maximum Special Tax rate for Class 2 - Undeveloped Category Parcels. Step 4: The total Special Tax Liability for each Parcel shall be the sum of the Special Tax Liability for each of the type of maintained facilities as defined in Table 2. EXTRAORDINARY SPECIAL TAX At the beginning of each Fiscal Year, the City shall determine whether the levy and collection of the Extraordinary Special Tax is required to protect against any changes in density or development that would result in the generation of insufficient Special Tax revenues within the District. The Extraordinary Special Tax shall be in addition to any annual Special Tax levied upon the Parcel for that year. Step 1: The City will determine the Maximum Special Tax Revenue that can be collected from the Class I - Developed Category at build out for each of the SPA Planning Areas as shown in Exhibit C. Exhibit C shall be modified each Fiscal Year to reflect changes in land use, nmnber of units, total acres and total EDU's within the planning areas within the District. Step 2: If the amount calculated in Step 1 for any of the SPA Planning Areas is less than the Special Tax Liability for that SPA Planning Area, the difference between the amount calculated above and the Special Tax Liability is the "Special Tax Deficiency." The first time a Special Tax Deficiency applies to a SPA Planning Area, the amount of Extraordinary Special Tax shall be determined by calculating the present value of the Special Tax Deficiency using an interest rate of 5.5% and a term of 50 years. The Extraordinary Special Tax as determined above shall be proportionately levied to all Parcels assigned to the Class 2 - Undeveloped Category, provided, however prior to June 1 of each year in which there is a Special Tax Deficiency, the owner of Class 2 - Undeveloped Land may, at its election, post security in lieu of the Extraordinary Special Tax that would otherwise be levied plus an amount sufficient to compensate for lost earnings on investment of the Extraordinary Special Tax if it were to be levied. Open Space Maintenance District No. 35 - Sunbow II Page 12 I S--C' -:?-~ 82? ~ Step 3: Any Extraordinary Special Taxes collected by the City shall be deposited in the Extraordinary Special Tax Account, including interest earnings thereon. Monies held in the Extraordinary Special Tax Account may be used annually to the extent that the Special Taxes to be collected from Developed Parcels and Parcels assigned to the Class 2 - Undeveloped CategOlyare insufficient to fund the Special Tax Liability of the District; provided, however, that under no circumstance shall the City use monies in the Extraordinary Special Tax Account to fund Special Tax Delinquencies. Step 4: In each Fiscal Year subsequent to the first time a Special Tax Deficiency applies to the District, the City shall calculate the Extraordinary Special Tax as provided for in Step 3 (i.e., using an interest rate of 5.5% and a term of 50 years) and apply one of the following procedures: (i) if the amount of Extraordinary Special Taxis greater than the balance in the Extraordinary Special Tax Account, then the difference shall be proportionately levied to all Parcels assigned to the Class 2 - Undeveloped Category within the District; (ii) if the amount of Extraordinary Special Tax is equal to the balance in the Extraordinary Special Tax Account, then no Extraordinary Special Tax shall be levied for the Fiscal Year; (iii) if the amount of Extraordinary Special Tax is less than the balance in the Extraordinary Special Tax Account, then the difference shall be refunded to the property owner that previously paid such Extraordinary Special Tax. Open Space Maintenance District No. 35 - Sunbow II Page 13 ~ /SC--d1 " ~._' ' BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) CllY OF CHULA VISTA COUNlY OF SAN DIEGO STATE OF CAUFORNIA _ 'TEI..EGRAPH CANYON ~ -\ . \ \ \ . \ \ . . fJ . \ \ ....~ \.-. ..--- , , \ . ,.i --' -' Ml-020-11l ..----- --- --.' .' 841-122-00 MAP MO. 13423 LaJS I Tt<<U 332 e ..........., 840&-011-oJ o o I , 5+4-011-Q2 o I L________________ -------------- ~ ~~-{):--\ ~O I'~ lO\.'(tI.~ j WilljQ -'-"-"-OlsrRlCTlIOtJNClolRY ASSESSClffS PNlCEl.. UNE 641-122-00 ASSESSOR'$ P.trRCD. NUWEIER M.s. !S-~ FUD IN THE 0FFlC( OF lllE art Cl..ERK OF TlfE CITY OFCHULAVI5T....THIS_D.l.YOF_lfi1_ InC' CITY a.DlK 8E'IERl.y A. Al.ITHEl.Er CITY OF OM.A Vl5TA STAlE Of" CAI..lF'ORNI.I. ltEl'lEBYCE.R'I1l'YTliATT1fE9ClUHI;I.IR\''''''SHOMNG PROPOSED BOwtCWtlES OF em NO. H-J IN lHE CITT OF OLI.A 'otSTA. COUNTY Of s..H DlEOO. STArt OF' CAUFORNM,. WAS APPROvED BY lllE CfTY COUHClt. OF THE aTY OF 0f..U wsr.... AT A RrCl.Il.AR IiIfDWG 1tEREDF. HElD ONTHE_OA."QF lfi_ ST' ITS RESOUITlON NO. InC, em' QLRl( 8E.'IDll'l' A. AUTHt1..EI' CITY Of 0iIJl..A VISTA STAtE OF CAI..lFtlRtM FIU!l1lf1S_lJAYOf_'"_ AT TlfE HOUR Of' C"c:..oo: -N. IN BOOK _ PAGE _ OF WN'S or ~AHDma.u.wNITYFACll.JtIESOlSTRICTSIN TJ.fEon:lCEOFTHECOUIf1"l'~OFTHE COIJNTT OF s.lol lllEGO, CIrt.Jfl:lIIfM. InC. COUNTY RECOAll<R COUNTY OF" SNl OIECO STATE OF CAIJ"tlRlrGA ?,.-. .J . . \ ) r---. \ . . \ . . \ \ . . \ \ M4-02Cl-Ol \ . \. \ . ---___-.i SHEET 1 OF 1 COMMIDiTfY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35lSUNBOW II]) CITY OF CHULA VISTA EXHIBIT B FACILITY MAINTENANCE COSTS AND SPREAD MEmODOLOGY 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 (EDU). The single family detached dwelling unit is one EDU and other land uses are a ratio relative 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. Equivalent Dwelling Unit factors for each of the methods are presented in the subsequent tables. Following is a summary of the facility maintenance costs and spread methodology used to distribute the cost to the parcels and the various land uses for each of the types of facilities. Open Space Maintenance District No. 35 - Sunbow II Page 15 "4 / - /SC-.2j /Se. -3d 2'7 '. , :..; Blank - I ~~ /27 ~&OWJl.QPE~PAce M!lNTE~ DISTElc;I .FACILIJY M6Im.tIA~ COSTS AIiQ ~~REA~OGY A. FACILITY MAINTENANCE COSTS BENEFIT TOTAL COST PER TOTAL TOTAL COST PER BOUNDARY AREA SQ FT SQ FTIYR COSTIYEAR EOU'S EOUlYEAR Sunbow II 640,863 $0.295 $189,055 2,917 $64.81 B. SPREAD METHOD - TRIP GENERATION LAND USE EQUIVALENT DWElliNG UNITS IEDU'S) IPER UNIT OR ACRE) 1. Single Family 1.0 per unit 2. Multi-family 0.8 per unit 3. Commercial 25.0 per acre 4. Industrial 20.0 per acre C. DESCRIPTION OF FAClUTlES TO BE MAINTAINED Landscaping and irrigation system improvements in the street median and parkway areas and in subdivision entries and intersection zones, buffers and edges of the following landscaped corridors: A. East Palomar Street from Oleander Avenue to the eastern Sunbow II CFD boundary; B. Medical Center I Brandywine Drive from its intersection with the Sunbow II CFD boundary. at the north to its intersection with the Sunbow II CFD boundary at the south; C. Pasco Ladera from Telegraph Canyon Road to approximately 1,300 feet south of East Palomar Street; D. Olympic Parkway from its intersection with Brandywine Drive at the west to its intersection with the Sunbow II CFD boundary at the east; E. Medical Center Coun from the Sunbow II CFD boundary at the north to East Palomar Street; F. Telegraph Canyon Road (south parkway and 'I:z median) that fronts the Sunbow II CFD boundary at the north. D. MAJOR ACTMTY Weeding, mowing and irrigation of medians and parkways. ~ ',~ '~ I se -3/ .;;,:. . ~ OF CtiU.L.A "1m ~~pw lLQf~PAC~Alt"TI;!'iatllj;(~ D~ ~M~A~~E COSISA~SPREA~I,.O~ A. FAClUTY MAINTENANCE COSTS BENEFIT TOTAL COST PER TOTAL TOTAL COST PER BOUNDARY AREA SO FT SO FTIYR COSTIYEAR EDU'S EDUMAR Sunbow II 2,548,817 $0.205 $522,507 2,171 $240.68 B. SPREAD METHOD - POPULATION METHOD (AVERAGE PERSONS PER UNIT OR ACRE;) LAND USE EOUIVALENT DWELUNG UNITS IEDU'S) (PER UNIT OR ACRE;) 1. Single Family 1.00 per unit 2. Mufti-family 1.00 per unit 3. Commercial 5.00 per acre 4. Industrial 5.00 per acre C. DESCRIPTION OF FACILITIES TO BE MAINTAINED Landscaping and permanent irrigation system improvements for graded slopes initially planted with hydroseed mix and shrubs and trees located in the open space lots throughout the Sunbow II community. D. MAJOR ACTMTY Weeding, and ilTigation of manufactured slopes. -<- !'Sc -3~ ~- CITY OF CHULA VISTA SUNBOW II OPEN SPACE MAINTENANCE DIST~.ICT FACILITY MAINTENANCE COSTS AND SPREAD MI;JHODOI,.OGY III. NA TURAL NON-IRRIGA TED OPEN SPACE_ A. FACILITY MAINTENANCE COSTS BENEFIT MAINTAINED TOTAL COST PER TOTAL TOTAL COST PER BOUNDARY FACILITY AREA SQ SQ FTIYR COST EDU'S EDUIYEAR FT lYEAR Sunbow " Natural habitat; - - $17,500 2,171 $8.06 biological monitoring, management and reporting Sunbow " Revegetated, 621,900 $0.0217 $13,495 2,171 $6.22 non ilTigated slopes Sunbow " Native, open 5,176,670 $0.00844 $43,691 2,171 $20.12 space land Total $74,686 2,171 $34.40 B. SPREAD METHOD - POPULATION METHOD (AVERAGE PERSONS PER UNIT OR ACREI LAND USE EQUIVALENT DWELUNG UNITS (EDU'S) (PER UNIT OR ACRE) 1. Single Family 1.00 per unit 2. Multi-family 1.00 per unit 3. Commercial 5.00 per acre 4. Industrial 5.00 per acre C. DESCRIPTION OF FACIUTlES TO BE MAINTAINED Natural open space lands and slopes containing temporary ilTigation systems to create indigenous plant growth and habitat as mitigation for direct and indirect ~ /5'e.- -33 '..~-' h ....'-.,,' impacts to native plants and animals; and natural open space lands including the restored wetlands. D. MAJOR ACTIVITY Biological monitoring, maintenance and reporting of condition of both existing and restored habitat. Exotic species removal. Litter removal of natural open space lands. (~C;-c -3~ ;W- j -n-1 CITY OF CHULA VISTA SUNBOW II OPEN SPACE MAINTeN~NCE DIST~ICT FACII.ITY MAINJ~aNCE COSTS AND SP~EAD METHODOLOGY IV. POGGI CANYON DRAINAGE CHANNEL AND BASINS A. FACIUTY MAINTENANCE COSTS BENEFIT MAINTAINED TOTAL TOTAL COST PER BOUNDARY FACIUTY COSTIYEAR ~ EDUIYEAR Sunbow II Silt removal $2,000 2,171 $0.92 from detention basins B. SPREAD METHOD. POPULATION METHOD /AVERAGE PERSONS PER UNIT OR ACRE) LAND USE EQUIVALENT DWELUNG UNITS (EDU'S) (PER UNIT OR ACRE) 1. Single Family 1.00 per unit 2. Multi-family 1.00 per unit 3. Commercial 5.00 per acre 4. Industrial 5.00 per acre C. DESCRIPTION OF FAClUTlES TO BE MAINTAINED Poggi Canyon channel and desilting basins at 3 designated locations. D. MAJOR ACTMTY Maintenance to assure continued hydraulic capacity and silt containment to include removal of sediment from detention basins at designated areas. ~ /5t2- ---:2 s .. . CITY OF CHULA VISTA SUNBOW II OPEt-I SPACE MAINTENANCE DISTRICT FACILITY MAINTE,NANCE COSTS AND SPREAD METHODOLOGY \I. TELEGRAPH CANYON DRAINAGE CHANNEL A. FACILITY MAINTENANCE COSTS BENEFIT MAINTAINED TOTAL TOTAL COST PER BOUNDARY FACILITY COSTIYEAR EDU'S EDUIYEAR Sunbow " Proportionate $1,350 2,171 $0.62 share of Telegraph Cyn Channel B. SPREAD METHOD - POPULATION METHOD (AVERAGE PERSONS PER UNIT OR ACRE) LAND USE EQUIVALENT DWELUNG UNITS (EDU'S) (PER UNIT OR ACRE) 1. Single Family 1.00 per unit 2. Multi-family 1.00 per unit 3. Commercial 5.00 per acre 4. Industrial 5.00 per acre C. DESCRIPTION OF FACIUTJES TO BE MAINTAINED Proportionate share (3.1 %) of Telegraph Canyon cl,annel per City Resolution 17588. D. MAJOR ACTIVITY Maintenance to assure continued hydraulic capacity. l-S-c--3~ ~- . CITY OF CHULA VISTA $UNBOW II OPEN SPACE MAlf:'I,TENANCE DI~~RICT FACILITY MAINTENANCE COSTS AND SPREAD METHQDOLOGY VI. COMMUNITY WALLS A. FACILITY MAINTENANCE COSTS BENEFIT TOTAL COST PER TOTAL TOTAL COST PER BOUNDARY UNEAR FT FT/YR COSTIYEAR EDU'S EDUIYEAR Sunbow II 16,824 $0.83 $13,964 2,271 $6.43 B. SPREAD METHOD - POPULATION METHOD (AVERAGE PERSONS PER UNIT OR ACRE) LAND USE EQUIVALENT DWELUNG UNITS (EDU'S) (PER UNIT OR ACRE} 1. Single Family 1.00 per unit 2. Multi-family .., 1.00 per unit 3. Commercial 5.00 per acre 4. Industrial 5.00 per acre " C. DESCRIPTION OF FACIUTlES TO BE MAINTAINED Community walls located generally along internal circulation streets that separate the individual developed SPA areas from the circulation streets. D. MAJOR ACTIVITY Scheduled maintenance including repainting of walls plus repair, graffiti removal, etc., as required. /5(;,-.37/ /Sc!-38' - This Page (S(2-;3;Y ~ ---- -' COMMUl'ilTY FACILITIES DISTRICT NO. 98-3 (OPE~ SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW ll)) CITY OF CHULA VISTA EXHIBIT C SPECIAL TAX REVENUE BY SPA PLANNING AREA AT BUILD OUT Exhibit C presents the proportionate share of the total maintenance cost allocated to each of the SPA Planning Areas at buildout of the Sunbow II Community. In order to provide a contingency for the Extraordinary Special Tax, the units have been reduced from 1,946 to 1,886 (3.1%). In addition, a portion of the area covered by SPA Planning Area 6 is included in Open Space District No. 18 and is currently being assessed at the rate of 2.55 EDUs in that District. SPA Planning Area 6 will continue to be assessed at the maximum rate of 2.55 EDUs to pay its equitable share in District 18. In addition, when SPA Planning Area 6 converts to a "Developed Property", it will be assessed for the number of multi-family dwelling units constructed (currently 78 units) as its equitable share in District 35. Open Space Maintenance District No. 35 - Sunbow II Page 16 ~ 15 ~ ~39 ~'...., ......, ~ !:' ~ o ... c :> ,?!Q. "'''' 0>", ~o .bZ ..- Oo!! UI~(.J ..-- EC:a ii~:E .. c )( "-..w ~i 5~ ~~ o .. o ~ c. tJ) Ii c. e. '5 o :!< ~ ;'( .. .. ~ at C E .. 0:: g; tJ) >- ... .. :> c .. ii'i ..: X ~ '"ii 11 c. 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J~C?- - q) J/./ " .. f; ~---f :~ i cX141B IT 'j RESOLUTION NO. 19061 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA MAKING APPOINTMENTS IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"). desires to initiate proceedings to create a Community Facilities District pursuant to the terms 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 designated. as COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) (hereinafter referred to as the "District"); and WHEREAS, at this time, the legislative body is desires to appoint and designate itself as the legislative body of the District, in order to allow the proceedings to go forward to completion in accordance with the provisions of law. -. I I NOW, THEREFORE IT IS HEREBY RESOLVED: ..' SECTION 1. The above recitals are all true and correct. SECTION 2. Throughout the course of these formation proceedings and following the formation thereof, the City Council of the City will be acting as the legislative body of proposed Community Facilities District No. 98-3 (Open Space Maintenance District No. 35 [Sunbow II]), which shall upon the formation thereof be a legally constituted governmental entity as defined by Section 53317 of the Government Code of the State of California. SECTION 3. All applicable regulatory rules of the City, including date, time and place of meetings, as well as notice requirements shall be applicable for all proceedings conducted by this legislative body as the governing body of the Community Facilities District. ~ '. . SECTION 4. The Star News is hereby designated as the newspaper for all publications as required by law and as necessary for completion of this District. Prepared by Approved as to form by C)--LL-C~ ~ JOVJaheny C/ City/A:torney Joh P. Lippitt Pu ic Works Director /5C-5o I /S-~-5/ '_:/4 -1:/_>' Resolution 19061 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of June, 1998, by the following vote: AYES: Couneilmembers: Moot, Padilla, Rindone, Salas and Horton NAYES: Council members: None ABSENT: Couneilmembers: None ABSTAIN: Couneilmembers: None ..dA;A//'tr~ J Shirley Ho on, Mayor ATTEST: -. STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19061 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of June, 1998. Executed this 23rd day of June, 1998. If" Beverly A. Authelet, Ci IS- e --:;- Z- tlJ) e-XI-\ IBIT ~ RESOLUTION NO. 19062 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,CALlFORNIA, ADOPTING A BOUNDARY MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED FOR THE INCLUSION IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW 11]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (hereinafter referred to as the "legislative body of the local Agency"), desires to initiate 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 "Ordi~ance") (the'Act"and'the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be designated as COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUN BOW 11]) (hereinafter referred to as the "District"); and '\ WHEREAS, there has been submitted a map showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The legislative body hereby adopts the map designated as "BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW 11])" showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of the map of the District, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the formation or extent of such District, a copy of such map shall be filed with the correct and proper endorsements thereon with the .County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. Prepared bv Approved as to form bv J~lJ~ Pllblic Works Director J f,,1. Kahe'ny 'tv Attorney ~ J ~ , ..I' e _-IJ.- I :>CJ) Resolution 19062 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of June, 1998, by the following vote: AYES: NAYES: ABSENT: ABSTAIN: ATTEST: Couneilmembers: Couneilmembers: Couneilmembers: Couneilmembers: f'- Beverly A. Authelet, Cit STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA Moot, Padilla, Rindone, Salas and Horton None None None JAt~//~ /i0?k Shirley H on, Mayor .-"-:. I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19062 was duly passed, approved, and adopted by the City Council at a regular meeting of theChula Vista City Council held on the 23rd day of June, 1998. Executed this 23rd day of June, 1998. /L~~-S1 reverlY A. Authelet, ~ CXt-+ 181T 0- RESOLUTION NO. 19063 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) AND TO AUTHORIZE THE LEVY A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"). at this time is desirous to initiate 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 ofthe 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. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) (hereinafter referred to as the "District"); and ,..-- WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District, to set forth the boundaries for such District, to indicate the type of public services to be financed by such District, to indicate the rate and apportionment of a special tax sufficient to finance such services, to set a time and place for a public hearing relating to the establishment of such District; and WHEREAS, a map of such District has been submitted showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. NOW, THEREFORE, IT IS HEREBY RESOLVED: RECIT ALS SECTION 1. The above recitals are all true and correct. INITIATION OF PROCE"DINGS SECTION 2. These proceedings are initiated by this City Council pursuant to the authorization of Section 53318 of the Government Code of the State of California. BOUNDARIES OF DISTRICT SECTION 3. It is the intention of this City Council to establish a Community Facilities District pursuant to the provisions of the Community Faciiities District Law, and to determine the boundaries and parcels on which special taxes may be levied to finance certain services. A description of the boundaries of the territory proposed for inclusion in the District including ~ /5e-5~ Resolution 19063 Page 2 properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. NAME OF DISTRICT SECTION 4. The name of the proposed Community Facilities District to be established shall be known and designated as COMMUNITY FACILITIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II}). DESCRIPTION OF SERVICES SECTION 5. It is the further intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is 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 or appurtenant facilities, including repair, removal or replacement of all or any part of the improvement or appurtenant facilities, providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste. Maintenance also means the furnishing of water for the irrigation of the landscaping, the installation. of planting or landscaping, or the installation or construction of supplemental facilities including any facilities which are necessary or convenient for the maintenance of eligible facilities. ~-... \ SECTION 6. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the boundaries of such District. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "A", which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized, to the extent possible, 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. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer. !S:-~ -S~ 50 Resolution 19063 Page 3 PUBLIC HEARING SECTION 7. NOTICE IS GIVEN THAT ON THE 28TH DAY OF JULY, 1998 , AT THE HOUR OF SIX O'CLOCK P.M.. IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, 276 FORTH. AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPDSED COMMUNITY FACILITIES DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX, AND ALL OTHER MATTERS AS SET FORTH INTHIS RESOLUTION OF INTENTION. THAT AT THE ABOVE-MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD, AND THAT THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE FURNISHING OF THE SERVICES"WILL BE HEARD AND CONSIDERED.-ANYPR01:ESTS MAY BE MADE ORALLY OR INWRITING. HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF. THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY COUNCIL ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. ,--. f ~ IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN SERVICES OR PORTIONS OF THE SPECIAL TAX, THOSE SERVICES OR THAT TAX SHALL BE ELIMINATED BY THE CITY COUNCIL. ELECTION SECTION 8. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within the District. A successful election relating to the special tax authorization shall. as applicable, establish and/or change the appropriations limit as authorized by Article XIIIB of the California Constitution as it is applicable to this District. NOTICE SECTION 9. Notice of the time and place of the public hearing shall be given bv t:le City Clerk in the following manner: A. Notice of Public Hearing shall be published in the legally designated :lewspaper of general circulation. such publication pursuant to Section 6061 of the 15e-~s-7 ,e. I'::;J Resolution 19063 Page 4 Government Code. with such publication to be completed at least seven (7) days prior to the date set for the public hearing. B. A Notice of Public Hearing shall be mailed. postage prepaid. to each property owner within the boundaries of the proposed District; such mailing to the property owners shall be to the address as shown on the last equalized assessment roll. Such mailing shall be completed at least fifteen (15) days prior to the date set for the public hearing. Presented by Approved as to form by ~ It;..:q- JOhfcp, Lippitt .. I Pub IC Works Director ~\ 15c ->~ ~ / f' Resolution 19063 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of June, 1998, by the following vote: AYES: Councilmembers: Moot. Padilla, Rindone, Salas and Horton NA YES: Councilmembers: None ABSENT: Councilmembers: None ABST AIN: Councilmembers: None JhAh;t_/~ Shirley rton, Mayor ATTEST: STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19063 was duly passed, approved, and adoPted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of June, 1998. Executed this 23rd day of June, 1998. v rBeVerlY A. Authelet, ! S-e ~<::;~ - This Page\{lZank - \ \ ~, /_)C- ~bO ~ EXHIBIT 7 RESOLUTION NO.1 :::064 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CAliFORNIA. ORDERING AND DIRECTING THE PREPARATION OF A "REPORT" FOR PROPOSED COMMUNITY FACiliTIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 ISUNBOW II]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CAliFORNIA (the "City Council"), has declared its intention to initiate 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 Facilitles"'District sn'allkimiinafter be designated as COMMUNITY FACiliTIES DISTRICT NO. 98-3 (OPEN SPACE MAINTENANCE DISTRICT NO. 35 [SUNBOW II]) (hereinafter referred to as the "District"); and WHEREAS, the City Council directs, purSuant to the provisions of Section 53321.5 of the Government Code of the State of California. the preparation of a "Report"to provide more detailed information relating to the proposed District, the proposed services. and estimate of the cost of providing such services. .' NOW, THEREFORE IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The Director of Public Works is hereby directed and ordered to prepare or cause the preparation of a "Report" to be presented to this City Council, generally setting forth and containing the following: SERVICES: A full and complete description of the public services proposed to be financed. COST ESTIMATE: A general cost estimate setting forth costs of providing such services. SPECIAL TAX: Further particulars and documentation regarding implementation. definitions and all other matters necessary to clearly set forth the rate, method and apportionment for the authorized special tax. SECTION 3. Such "Report". upon its preparation. shall be submitted to this City Council for review, and such "Report" shall be made a part of the record of the public hearing on the Resolution of Intention to establish such District. Presented by Apprc'ved as to form by ~/-i - ; Jo P. Lippitt ~ Public Works Director ~ JO~~~ City ~:t7!/c__ ~6 7/<S~-0( Resolution 19064 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of June, 1998, by the following vote: AYES: Councilmembers: NAYES: Council members: ABSENT: Councilmembers: ABSTAIN: Councilmembers: ATTEST: tBeverlY A. Authelet, Cit STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA Moot, Padilla, Rindone, Salas and Horton None None None Jh~h~~ Shirley Her. on, Mayor -~\ I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19064 was duly passed, approved, and adoPted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of June, 1998. Executed this 23rd day of June, 1998. ! 5(2 -b2- r Beverly A. Authelet, Cit 5[: COUNCIL AGENDA STATEMENT Item~_" Ii Meeting Date 8/4/98 ITEM TITLE: Public Hearing - To Consider Granting a Waste Management Franchise Renewal through September 4, 2002 to Pacific Waste Services SUBMITTED BY: Ordinance)1ft? - Amending Chapters 8.23, 8.24 and 8.25 of the Chula Vista Municipal Code to move the Solid Waste and Recycling Franchise Terms and Conditions out of the Municipal Code into a Separate Franchise Agreement, and Making Other Technical Changes .~_ ordinanceJ:1tf! - Granting a Waste Management Franchise Renewal to Pacific Waste Services through September 4, 2002 in accordance with the Terms and Conditions of the Franchise Agreement, and Authorizing the Mayor to Execute Same Resolution lfIlJI Adopting the Schedule of Maximum Rates for Solid Waste, Recycling, and Green Waste Collection and Disposal or Processing Services as Submitted by the City's Solid Waste Franchise Agent (Pacific Waste Services) Effective September 1, 1998 Gfr 1 oeV Deputy City Manager rb w ~ Conservation Coordinator ~ REVIEWED BY: City Manager (4/5ths Vote: Yes_Noll) INTRODUCTION: In June,1997 the City Council conditionally approved the assignment of the solid waste franchise from Laidlaw to Allied (following Allied's purchase of Laidlaw in December,1996). Staff and Laidlaw were directed by Council to discuss various financial, service and operational issues prior to consideration of any franchise extension. Council only authorized extension of the Franchise on a month to month basis (from the renewal date of September 4, 1997) pending this item being brought back for consideration. 'itA -I The Council also requested information on Laidlaw's rate of return on their Chula Vista operation. Attachment I is a memo from the Director of Finance summarizing the review process completed, and the conclusion that Laidlaw has earned a rate of return that appears reasonable as compared to industry averages. RECOMMENDATION: Approve the Ordinance granting a franchise renewal for solid waste collection, processing and disposal services. It is also recommended that Council approve the Resolution establishing a rate schedule for services provided under the agreement to be effective September 1, 1998 which: 1) includes a freeze on current rates through June 30, 1999,2) Provides a reduction in rates for commercial fiber recycling, and multi-family recycling for dwellings of 9 units and under, and 3) Establishes fixed rates for industrial "roll-off", compactor and optional services. Staff further requests that Council approve the Ordinance amending Chapter 8.23, 8.24 and 8.25 of the Chula Vista Municipal Code to move the franchise provisions out of the Code and into a franchise agreement, and to make other technical and conforming changes. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable BACKGROUND: The current Waste Management Franchise with Allied has a term of five (5) years from September 4, 1987, with two five (5) year renewal options if the Grantee is not in breach of the ordinance and has performed in a manner found satisfactory to the City. The first extension was approved in 1992. Prior to the expiration of the first extension, staff determined that satisfactory performance could be maintained if certain conditions and performance standards could be worked out via negotiations with the franchisee. In August, 1997, Council approved the month-to-month extension of the Franchise until negotiations could be concluded. In September, 1997, staff had a number of negotiating sessions with Pacific Waste Services (PWS, the collection division of Allied, formerly Laidlaw). In October, 1997, PWS submitted historic information regarding the rate of return issue, responded to a number of staff questions, and indicated that they had engaged Arthur Anderson, LLP to perform the necessary audit work to complete the work requested by the City. In November, 1997, the audit work was completed (Attachment I). On December 8, 1997, staff submitted a comprehensive proposal to PWS covering a number of areas. By March 1, 1998, negotiations between staff and PWS were substantially concluded as to the business terms of the Franchise extension. Since that time, a number of operational issues and details have been negotiated, and the City Attorney's Office has been crafting new revised Franchise language which will implement the terms as well as clean up "R-" antiquated language and provisions of the current Franchise ordinance. On July 14. 1998. Council approved a Resolution of Intention and set this public hearing date. DISCUSSION: The proposal submitted by staff attempts to address the primary concerns expressed by Council and Chula Vista residents regarding solid waste services (Attachment II). The recommended adjustments focus on improving the quality of service. expanding service options and stabilizing rates for residents and businesses for the duration of the current agreement. The following discussion outlines how those goals would be achieved under the proposed agreement. Obiectives The proposal accomplishes the following objectives: 1 . Incorporates what staff envisions as appropriate service levels and performance to address past inadequate performance issues by PWS. 2. . Establishes a format for communication that will eliminate future ambiguity. while offering PWS financial incentives to provide quality service at a reasonable cost. 3. Establishes measurable standards that will assure that the level and quality of service is sustained for the remaining term of the franchise agreement. 4. Revises Chapter 8.23. 8.24 and 8.25 to remove specific terms and conditions of the City's franchise from various places within the Chula Vista Municipal Code. and places them altogether in a formal Franchise Agreement. Other technical and conforming changes have also been made which are not substantive. ScoDe of ProDosal The staff proposal covered four areas: financial. programs and operations. enforcement issues. and strict compliance with the existing franchise ordinance. A. Financial Points The major financial points agreed to include the following: J~R-3 1 . Freezing Residential and Commercial/Industrial rates at their current level until July, 1999. (See Franchise Agreement Exhibit E for a list of Maximum Service Rates. - Note: Chula Vista rates will not be affected by any rate increases imposed by Allied/Pacific Waste Services at the Otay Landfill). 2. Beginning in July, 1999, PWS would be entitled to automatically increase rates for the remainder of the franchise term only at a level equal to 50% of the yearly Consumer Price Index increase for San Diego. 3. Chula Vista would have a "most favored nation's" clause; that is, our ratepayers would be guaranteed the lowest rates that Allied/PWS or any of their partners or affiliates might offer for any new franchise entered into with any city in San Diego County for the remaining term of our franchise. 4. City crews and city contractors (with written city approval) on City business shall not be charged tipping fees for mixed waste at the Otay Landfill. 5. Recycling and revenue sharing incentives are offered PWS in partnership with the city based on increases in landfill tonnage diverted. A sliding scale has been developed with PWS that allows them to recapture additional revenue as they are able to make recycling more successful. This will move Chula Vista closer to meeting the AB939 mandate of 50% recycling by the year 2000 without the need for rate increases to businesses or residents. The automatic CPI provision represents a change from the Council's historical practice of considering annual rate increases under the current "Rate Modification Procedure." Staff proposes this change in response to Council's past direction to stabilize rates. In the proposed agreement Pacific has given up the opportunity to request rate increases from July of 1996 through June of 1999 and limited their right to future increases to 50% of local CPI. Pacific has also provided Council with a comprehensive list of all miscellaneous services which shall not be subject to CPI increases. That component of the proposed agreement has the effect of stabilizing rates for Chula Vista customers and will insulate them from rate increases due to landfill and other operational considerations in the future. B. Program and Operational Adjustments ). FI-&t The operational and service improvements include some 35 individual negotiated items. These involve various performance items such as collecting all non-hazardous waste and recycling set at the curb on the first pass, checking in with the City by 3:30 p.m. and resolving all collection issues as soon as possible but no later than 6 p.m. the next business day. Other provision examples include color coding all trash, recycling and green waste containers within certain time frames, removing all graffiti from equipment within 60 days of this agreement and within two weeks thereafter, and adding Christmas tree recycling and bulky pick-up tc, multi-family complexes at no charge. Businesses are also getting reduced cardboard rates and free rigid container service (See Attachment III for a complete listing of the operational improvement suggestions). The agreement also includes a number of meet and confer items within set time frames including the following: implementing recycling program incentives for single can users, implementing green waste recycling program incentives for all commercial waste generators and developing and improving long term markets for local manufactures of recovered materials. Finally, there are a number of new and improved public education endeavors to be undertaken such as annually revising the brochure for new trash customers and continuing to provide priority for quarterly and other city inserts in billing statements. C. Enforcement A number of key points relate to new enforcement mechanisms. If meaningful performance measures are to be set and implemented, there needs to be a tracking system of compliance and some consequences for repeated non- compliance. For these reasons, staff has designated what constitutes acceptable performance and what the penalties will be if they are not met. A liquidated damages system has been established with maximum damage penalty amounts from $25-$500 depending upon the severity of the non-compliance. Another enforcement/education proposal is for PWS to fund two part time recycling ranger positions to assist in compliance issues as well as to help respond to problems and work on public education. The cost to PWS is $44,000 per year. D. Strict Compliance With Existing Ordinances Staff has re-emphasized a number of franchise issues. One item is the age of the fleet vehicles. The requirement agreed to is that the average age of all the regularly assigned collection vehicles shall not be more than four (4) years old. A second item is that PWS complete all routes by 6 p.m. each day. See Attachment II for a complete listing of the strict compliance issues. Il,R--S CONCLUSION: Staff feels that Pacific is committed to and capable of performing its obligation under the proposed Franchise renewal agreement. If they fail to perform, the agreement sets, forth a broad range of appropriate remedies. While Pacific has had some performance problems in the past staff feels that in light of Pacific's commitment to the new Franchise terms, such problems do not comprise a reason to deny Pacific's requested five year renewal. Accordingly, staff recommends approval of the Franchise renewal. FISCAl. IMPACT: There will be no net impact to the General Fund as a result of Council's approval of staff's recommendation. The proposal will stabilize rates for City residents and businesses and protect them against any future tipping fee increases at the landfill. The proposal, however, does allow, beginning in July 1999, for a 50% pass-through of the annual CPI increase. As an example, if the annual CPI increase was 2.7%, the average rates would increase as follows in the first year: residential, $13.20 to $13.36 and commercial, $76.79 to $77.73. Residents are also protected against other jurisdictions being offered lower landfill rates in the future. In addition, savings may accrue to the City based upon revenue sharing incentives for recycling and avoided disposal costs by virtue of City crews no longer having to pay tip fees for disposal of mixed waste at the Otay Landfill. Finally, the program adjustments will help control recycling costs, help the City meet state recycling mandates, and help better fund recycling public education, technical assistance and enforcement programs. h:\home\admin\gk\pwsnegot. wp ,~n-~ " ATTACHMENT r INTERDEPARTMENT}~ CORRESPONDENCE D}.TE: January 19, 1998 TO: George Krempl, Deputy City Manager i/ Robert W. Powell, Director of FinanceC'l Laidlaw (Pacific) Franchise Rate of Return FROM: SUBJECT: For several years now the Council has requested from Laidlaw information regarding the rate of return earned on their franchise operations in the City of Chula Vista. Laidlaw has responded in several different fashions with information found unacceptable for various reasons, initially due to their assertion of confidentiality and more recently due to their inability or unwillingness to clearly separate out the Chula Vista operations from their other operations in this region. Staff and Laidlaw recently arrived at a mutually acceptable process for providing a reasonable response to the longstanding Council recruest. Laidlaw contracted with an independent C.P.A. firm to audit the assets, revenues, and expenditures related to the Chula Vista franchise contract for their 1995 and 1996 fiscal years, and to verify the mathematical accuracy of the. calculation of the return on assets ratio based on that audited data for those same years. The "Agreed Upon Procedures Report," as it is referred to by the accounting firm of Arthur Anderson, LLP, shows that Laidlaw's return on assets for the Chula Vista franchise was 7.7% for fiscal year 1995 and 10.1% for fiscal year 1996. As a further step, staff obtained industry data from the firm of Hilton, Farnkopf & Hobson, LLC, which reflected that the industry means for those same years were 8.5% and 6.6% respectively. As additional information, the lowest performing 25% of the companies surveyed showed a return on assets of 2.3% in fiscal year 1995 and 1.7% in fiscal year 1996, while the highest performing 25% of the companies surveyed showed a return on assets of 18.6% and 14.7% respectively for fiscal years 1995 and 1996. Based on the information obtained, it can be concluded that Laidlaw earned a return slightly less than the industry average in 1995, but earned a return somewhat more than the average, but still less than the highest performing 25% of the companies in their industry for 1996. Therefore, it appears that Laidlaw is not earning an unreasonable return on their Chula Vista franchise. c: Michael Meacham , 1J-7 ARTHUR i\NDERSEN .':'..:thur .lrnd~r5'2n LL? Suite ]000 One Renaissance Square Two !\jaM Centra] Phoenix.AZ 85004 6C12 257 9234 INDEPENDENT PUBLIC ACCOUN1ANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES To Allied I^,' aste lndustries, lne. and the Management of the City of OIula Vista: We have been requested to verify the mathematical ac=acy of certain computations relating to the O1ula Vista Contracts of the O1ula Vista Division of Allied Waste Industries, Ine. e Allied"). Accordingly, we have been provided with a letter dated October 23, 1997, from lillied defining the term "return on assets", pursuant to which our verification of the calculations of return on assets for fiscal 1995 and 1996 are to be made. Total contract assets and contract revenues less expenses were obtained from the "01ula Vista Contracts of the OIula Vista Division of Allied Waste Industries, Inc. Financial Summaries as of August 31, 1995 and 1996, Together With Report of Independent Public Accountants", which have been audited by Arthur Andersen LLP. In addition, unaudited total contract assets were obtained for the OIula Vista Contracts of the Chula Vista Division of Allied Waste Industries, Inc. from iillied as of August 31, 1994. We have performed the procedures enumerated below, which were agreed to by the management of Allied Waste Industries, Inc. and the Management of the City of O1ula Vista, solely to as~.st you with respect to verifying the mathematical ac=acy of the above mentioned computation. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. We recomputed the computations of the return on assets (as defined by Allied) for the Chula Vista Contracts for the years ended August 31, 1995 and 1996, by dividing the contract revenues less pretax expenses by the average contract asset balances for the respective years, the results of which are as set for-ll in Exhibit A a.Tld found them to be mathematically correct. Jl,~- r- -1- 1-1 perfOrming the above calculations, we have relied sol~l}' on the data set forth in the second paragraph of this letter. . We were not engaged to perfonn an audit of the "return on assets" calculation, the objective of which would be the expression of an opinion on Chula Vista Division's specified elements, accounts, or iteJ1"'.5 thereof. Accordingly, we do not express such an opinion. Had we been engaged to perfonn additional procedures, other matters might have Come to our attention that would have been reported to you. "This letter is solely for the information of, and assistance to, the above-named addressees in connection v.'ith the analysis of the franchise agreement between the City of Chula Vista and Allied Waste Industries, Inc., and, without our prior consent, is not to be used, circulated, quoted or otherwise referred to ~thin or without this group for any other purpose. Furthermore, this letter should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of those procedures for their purposes. C2~ A--Lf P'nty>...nix, Arizona, October 27, 1997. '''~-1 EXHIBIT A _ CHULA VISTA CONTRACfS CHULA VISTA DIVISION OF ALLIED WASTE INDUSTRIES, INe. SCHEDULE OF RETURN ON ASSETS FOR THE YEARS ENDED AUGUST 31, 1995 AND 1996 1995 1996 RETURN ON ASSETS ("Contract revenues less pretax expenses" / average contract assets) 7-7% 10.1% )t,A-1O ~ HILTO:<. 'J'APSKOPF & HOBSOS. LLC ~ Adn"x-. ~j'.'I::e..~W =,,--.5'" Mum::l;::'ill Manag~m~m ~ :::'1 Walnul ,lw~:...:.. Suilr 2B~ ~:mont, Califomi2 9453&-23J4 ,,;<)>hon.,5IOm3-3liD "= 5IOn13.3l94 ~~:hfh-consultan!5...c.om Fremom !~e\1,'Pon &-...a::h Sf:l::ram~to November 7, 1997 lVlI. Robert Powell Di-"ector of Finance City of Chula Vista 276 Fourth .:"ve. Omla Vista, CA 91910 RE: SOUD WASTE RETURN ON ASSETS Dear Mr. Powell: In accordance wit.~ our engagement letter, Hilton Famkopf & Hobson, LLC is pleased to present this h-uormation regarding the solid waste industry's rer.rrn on ?.5sets over t,'1e past five years BACKGROUN::> In November 1995, the City engaged HF&H to develop financial benchmarks to assist the City in the review of Laidlaw Waste Systems Inc. financial results of operations. HF&H established two primary and three secondary indicators to use for t.'1is p1lJ.yose. These included: 1. Expe..'1Se Ratio ") Rehlm on Assets 3. Operating Ratio 4. Sales on Assets :J. Debt/War-ill Tne City is currently involved in a more limited review and would like an i.l"ldependent report of the most recent readily available data regarding the Rev.:rn on Assets. Fl~nTI\iGS Based on our research, we found the following Return on ..<\ssets (% Profit Before Taxes/Total ..<\ssets) :reported for refuse companies wit.l1 assets comparable to Laidlaw's assets employed in Chula Vista and for the bdush}'. '.Il.. , ( . _~~ H1LTO:-: FhR"iKOPF &. HOESO". LLC ~ lVlI. Robert Powell November 7, 1997 Page 2 REFUSE COMPANIES RETURN ON ASSETS 1992 -1996 u_ ---- $2 -$10 Iud ustry - Quartile Quartile Year Uooer I Mean Lower UllD'"..f Mean I Low"," 1996 10.7 5.2 1.0 14.7 6.6 I 1.7 1995 ]8.6 10.8 3.7 18.6 I 8.5 J ? - _.~ 1994 14.7 I 8.5 3.6 17.0 8.4 J 2.8 1993 13.7 I 7.0 2.6 ]4.] I 6.] I 0.9 1992 11.9 I 5.9 1.8 13.2 I 6.7 1 1.8 AVC1"2.2'e 13.9 I 7.5 I 2.5 ]5.5 I 7.3 . I 1.9 P.3 can be se~'1 ITom the proceeding table, there are sigrlli.tjcant differences in the Return on _A.3sets based on size of company (versus -G'1e industry generally), ITom the lowest performing 25% to the highest performing 25%, and ITom year to year. B.ased on the available information, we calculated averages of the past five years results for each of the categories which may be of more use to you. APPROACH A.."'"D LIMITATIONS We obtained information regarding the solid waste industry's Return on Assets ITom the Robert Morris Associates, Annual Statement Studies, Services-Refuse Systems (1993-1997). Relying upon this information we documented by quartile the Rehlrn on i\ssets for companies with $2 - 510 million L'1 _A.ssets and for all companies reporti..,.,g, regardless of size. Also, we calculated average returns by quartile. We prepared this brief letter report describing industry results as measure by Return on :\ssets over the past five years. We remain available to respond to any questions City or Laidlaw staff may have but it is not anticipated that we will eit..'1er meet v-'ith Laidlaw or City staff or attend a meelli,g of the City Council. , "f).. I~' - ~..~ HILTO:C ,APSI:OPF & HOBSO:C. LLC ~ !vIr. Robert Powell November 7, 1997 Pag~ 3 BF&H appreciates the opportunity to again be of service to the City. Should you have any questions please call me at 510/713-3272. Very truly yours, Hilton Farnkopf & Hobson, LLC / . I \ ~ .' ," "'~.- ..: "':.... 7. /."./ /' -. .L / '/~ ,/ " ""'?-" .... I /"-!,.'---'--';../' ~ ..:..--_.~. -"- - ; r / j Robert D. Hilton, CMC President cc Dan Higgi...1LS, Market Area Controller, Laidlaw Waste Systems, Inc. I IIfA-J3 Proposed Business Points Item Item Description A) FINANCIAL: p Current Maximum Rates Charged to Small Generators (Residential) and Large Generators (Commercial/Industrial) Shall be Frozen until June 30,1999. Beginning July 1,1999, Maximum Rates Shall Automatically Increase Each Year by a Percentage Equal to 50% of the Most Recently Published Twelve Month CPI (All Urban Consumers, San Diego). Pacific, Allied May Appeal to Council for Adjustments for Extraordinary Circumstances Beyond Their Control, which the City Will Consider at its Discretion. 2 If During the Term of This Agreement AlliedlPacific, Offers, Residential, Commercial or Industrial (Roll-Off/Compactor) Service Rates in Any Future Allied/Pacific Franchise, in the Commercial Component of Any Current Franchise or in Conjunction with Any Partner or Affiliate Franchise in San Diego County, That Are Lower Than The City's, The Corresponding City Rate(s) Shall Be Lowered To That Amount. (Any Comparison Shall Be Made On the Rates Charged Excluding All City Imposed Fees.) 32 AlliedlPacific Shall Retain All Net Commodity Scrap Tonnage Revenue Generated, Based on Six Month Average Recycling Revenue, Up to $60 per Ton, Regardless of Tonnage Diverted. Above $60 Per Ton, For Commodities Generating Revenue, Revenues Shall be Shared With the City 60/40 Unless the Tonnage Diverted Exceeds Certain Thresholds. Incremental Revenue Increases Shall be Distributed as Follows: If Greater Than 25,000 Annual Tons Are Diverted, City Share of the Incremental Increase in Revenues will Decrease to 55%. If Greater than 35,000 Annual Tons are Diverted, City's Share ofIncremental Revenues Will Decrease to 45%. Split will be 35/65 Above 45,000 Tons and 30/70 Above 55,000 Tons. Pacific retains all revenue up to $60 per ton. 4 City Crews and City Contractors (With Written City Approval) on City Business ShalF Not Be Charged Tipping Fees For Mixed Waste At The Otay/Allied Landfill. 5 AlliedlPacific Will Re-designate the City of Chula Vista as "State Curbside Operator" With the Department of Conservation, Division of Recycling, for the Purposes of All California Redemption Value (CRV) Materials Collected in Chula Vista by Allied Within 30 Days And Deliver Annual CRV Bonus Payments (Pursuant to PRC 14549.6 (a)), and All Revenue from New Advanced Disposal Fees or Incentive Fees Developed in the Future, Excluding Only the Current 2.5 Cents Per 24 Ounce and Under and 5 Cents per 32 Ounce and Over Carbonated Non-Juice Beverage Containers Listed as CRV. (Funds Accrued to the City Shall be Used to Support Recycling Public Education, Printing, Promotion and Incentive Programs). ATTACHMENT III City of Chula Vista/ Pacific Waste Services Business Points Summary Residential yard waste rates currently include clean yard waste tonnage delivered to ORW by City crews and sub-contractors. City Crews or their sub-contractors shall continue to be allowed to take clean greens to ORW at no additional charge to the City. 2 "Net" revenue is defined as the market value Pacific/Allied receives for commodities less sub-contractor costs for processing. / 'itA-Pi Page 1 6 Industrial/Roll-Off and All Other Maximum Current Service Rates or Charges That Have Not Been Approved by Council Shall Be Submitted for Approval Immediately. 7 Upon Approval, All Miscellaneous Residential, Commercial and Industrial Rates or Charges Shall be Fixed for Remaining Franchise Term (Residential, Commercial and Industrial Refuse Collection Rates Including Roll-Off/Compactor Rates are not Considered Miscellaneous and Are Subject to CPI Adjustment as Outlined in Item 1.) B) PROGRAM & OPERATIONAL ADJUSTMENTS: General Management I Maintain Local Operational Manager, Office and Fleet Service Yard in Chula Vista 2 Collect All Non-Hazardous Waste & Recyclables Set at the Curb on First Pass 3 Check in With City by Fax or Telephone at 3:30 p.m. To Resolve All Collection Issues ASAP But No Later Than 6 p.m. Next Business Day. 4 No Limit on Non-Hazardous Bulky Pick-Up (Threshold to be Established by City with Optional Charge Above Threshold). 5 Provide Standard Litter Bin, Cover & Signage Approved by City, at Requested Locations Within 96 Hours, Route and Collect Litter Containers on a Weekly Basis or Bi- Weekly Basis with Commercial or Residential Waste. 6 Place Due Date on All Invoices in a Location that Reduces Confusion For Rate Payers (Make Good Faith Effort to Place it Near Amount Due & Use Local Mail House). Record & Reoorting Issues I Submit Completed Monthly Reports to City Conservation Coordinator on or Before 22nd of Each Month for Previous Month. 2 Submit Complete Annual Report to City by February 16, for Prior Calendar Year. 3 Add List of All Business Accounts by Service, Type, Volume & Service Frequency to Quarterly & Annual Reports and Meet & Confer to Adopt Report Formats and Establish Content Within 90 Days of Agreement. Equioment Vehicle Issues: I Meet & Confer Prior to Vehicle Purchase, Change in Color, Signage or Collection. 2 Future Container, Color, City Logo, Logo Sizes, Text & Design to Be Approved by City. 3 Color Code All Trash Recycling and Yard Waste Containers ASAP But No Later than 3 Years, (Trash -Blue, Yard Waste -Green, Recycling-PMS-208/Commercial-White) 4 At City's Discretion, At the End of the Agreement Allied/Pacific Shall Relinquish Ownership ofChula Vista Refuse, Yard Waste, Recycling and Litter, Carts, Bins and or Containers Excluding Metal Containers of One Yard Capacity or Greater. The City Shall Pay 20% of Original Wholesale Cost of Operable Containers Relinquished to the City that are 5 Years or Less in Age If Allied/Pacific is Not Service Provider after September 4, 2002. 5 Supervisor to Field Inspect All Vehicles Monthly for Litter, Leachate Etc. / 11,-15 Page 2 6 Remove Graffiti From All Equipment Within 60 Days Of Agreement And All Future Graffiti Within Two Weeks. Residential 1 Tag All Inappropriate Residential Set Outs and Report Tagging by Program and Problem 2 Tag, Collect (as Trash if Necessary) and Report All Inappropriate Yard Waste Set Outs on First Pass and Report Monthly 3 Establish Protocol & Limits for Improper Set-Out Fines, First Time & Multiple Offenders 4 Implement Construction Demolition Recommendations 5 Convert Senior Bag Service to Single Can Program with Bi-Monthly Billing within 180 Days of Agreement 6 Meet & Confer to Implement Recycling Program Incentive for Single Can Users Within 180 Days of Agreement Commercial 1 Add Christmas Tree Recycling to Multi-Family at No Charge 2 Add Bulky Pick-up to Multi-Family at No Charge 3 All Current Multi-Family Complexes Of9 Units Or Less (167 Complexes, 1,113 Units) Shall Be Converted To Curbside Recycling Rates And Service. All Future Complexes of 9 units or Less Shall Be Established As Curbside Recycling Service. 4 Pacific Will Provide Free Mixed Paper Bins And Service Adequate to Divert Up to 90% of Fiber Generated at Multi-family Complexes Listed And Will Provide Additional Free Bins And Service At Multi-Family Locations Where Staff Can Obtain Agreement From Property Managers, Pacific to Provide List of 125 Complexes Where Program Will Start. 5 The Multi-Family Program Shall Be Subject To A Six Month Cancellation In The Event Pacific Fails To Achieve The Minimum Performance Standards. 6 Add Billing Confirmation Fax/Hotline for Property Managers/Owners 7 Effective Immediately Upon Council Approval, Current Corrugated Cardboard And Mixed Paper Service Charges Of$35 Per Month Per Pick Up Shall Be Reduced To $25 Per Monthly Per Pick-Up. The New Rate Applies To Once A Week Collection Of Any 3 to 8 Yard Bin. Pacific Staff Will Handle The Adjustment For Current Customers On A Case By Case Basis. Pacific Sales And Customer Service Staff, And City Recycling Staff Will Also Promote The New $25 Rate To New Potential Customers. 8 Provide Free Rigid Container Drop-Off at Current and Future Convenient Zones in City 9 Provide Rigid Container Cart Service for Hospitality and Retail Businesses Under 5,000 Square Feet Selling Beverages at No Charge 10 Provide Rigid Container Bin Service for Hospitality and Retail Businesses of 5,000 Square Feet or Greater Selling Beverages at No Charge . 11 Meet and Confer to Implement a Green Waste Recycling Incentive Program for All Commercial Green Waste Generators Within 90 Days of Agreement ) (, A -lit; Page 3 Public Education 1 Pacific Waste Services Will Transition to a Live Customer Service Response During Business Hours 8 a.m.-6:30 p.m. Within 1. Months. The Average Wait Time Prior To Reaching the Appropriate Customer Service Representative During Business Hours Will Not Exceed 90 Seconds For Any Standard Calendar Week. 2 After Business Hours, Customer Service Calls Will Be Taken by Recording and a Good Faith Effort to Contact the Customer Will be Made by Noon the Next Business Day 3 Provide the City One Week to Review & Approve Public Information Before Distribution 4 Annually Revise Brochure for New Trash Customers for Each Component; Commercial, Multi-Family, Industrial (Roll-Off & Compactor) and Residential Trash Service (Comparable to "Wastelines"), Generate & Distribute to New Customers 5 Continue to Provide Priority for Quarterly and Other City Inserts in Billing Statements C) ENFORCEMENT: Enforcement Summary; Attached; List of Penalties for Failure to Meet Quality/Performance Guidelines: D) STRICTLY COMPLY WITH EXISTING ORDINANCES I Initially and Throughout the Remaining Franchise Term, the Average Age of All Regularly Assigned Collection Vehicles Must Not be More than (4) Years 2 Complete All Routes by 6 p.m. (Emergency Exceptions Limited to Natural Disasters) 3 In Lieu of Current Requirements to Provide Public Education Staffing: for Recvcling and Waste Programs Pacific Waste Services Will Fund Recycling Ranger and Recycling Education Staff Persons at a total cost of $44,000 per year City Agrees to Meet and Confer on Job Description 4 City Reserves the Right to Require Grantee to Collect Additional Fees Such as But Not Limited to a Household Toxic Fee From Rate Payers, and Deliver Said Fees to City With Franchise and AB 939 Fees Under the Conditions Established for Those Fees. 5 Pacific/Allied Agrees to Meet and Confer With the City to Direct Recovered Material Futures to Local Manufacturers Developing or Improving Long Term Markets at a Comparable or Greater Net Value. 6 Enforcement of the Industrial RolVOffFranchise 7 Enforcement of Current Municipal Code Requiring Participation in the Solid Waste and franchise Services or a Landfill Receipt. ",11.. n Page 4 COUNCIL INFORMATION Item 16A. 8/4/98 Agenda SUBJECT: The Honorable Mayor and City Council ~ G \)r George Krempl, Deputy City Manager ,< Michael Meacham, Conservation Coordinator ~ Public Comment Regarding the Industrial "Roll-off" Component of the Existing Franchise Agreement TO: FROM: In a companion item on the Agenda for August 4, 1998 Council will consider whether or not to grant the final extension to the existing solid waste, recycling and compo sting franchise agreement. This information memorandum is intended to brief Council regarding the attached letters from the public (Attachment A 1-6). The letters address the industrial or "roll-off box" component of the existing franchise agreement and its treatment under the recommended extension. The existing solid waste agreement dates back to September 1987 and states that, .. "The Grantee shall have the sole right to pick up, gather, and remove refuse generated by residential, and commercial, or industrial property within the City. . ." The franchise does provide for two specific exceptions: 1) special districts (primarily schools), and 2) individuals that haul their own waste and are able to provide weekly landfill receipts as proof that the material has been properly and legally disposed. Subject to those exceptions the City has an existing agreement with Pacific Waste Service which requires the City to "protect the grantees rights to such exclusive contract by proper ordinances and by reasonable enforcement thereof." One ofthe letters received by the City is from an independent private waste hauler (Debris Box) and the remaining letters are from his current or potential customers. The following is a list of issues addressed in the letters and Staffs corresponding responses: 1. Who set "aoorooriate service levels." and was industrv inout solicited or received? The City Conservation Coordinator solicited and received input from the waste industry by calling the major haulers in a variety of jurisdictions throughout the County. Independent haulers input was also solicited and received. Staff verified the service and pricing information by contacting the host jurisdiction. Subsequently staff established preferred service levels and requested that Pacific provide a corresponding rate structure. 1 /611- ~ 2. Does the rate freeze and subsequent rates reflect the reduction in landfill tipping fees from $38 to $30? Yes, Residential, commercial and roll-off rates reflect the $30 per ton price proposed by Pacific. 3. What is the benefit of the "most favored nation's clause" ifit excludes Imperial Beach and local cities which do not gO out for competitive bids? The most favored nation clause assures that during the term of the agreement Chula Vista rate payers will receive any lower rates that may be negotiated by Pacific in any other jurisdiction in San Diego County. Should cities in San Diego go out to bid, and Pacific be awarded the service contract, Chula Vista rate payers will benefit from any rates that are lower than their current rates. Staff did not seek to alter current rates in the middle of the franchise agreement. Negotiations with Pacific addressed the criteria established for considering the granting of a franchise renewal. That criteria focuses on performance and quality of service issues. By including Imperial Beach's current commercial rates we would require an immediate change in rates and exceed the scope and intent of addressing current operational performance issues. 4. Where are the construction and demolition recommendations? The construction and demolition recommendations are attached to the proposed franchise agreement as Exhibit A. These recommendations address the collection of incidental construction and demolition debris from single family homes which are not the focus of Debris Box's or the "roll-off' industry's concern. 5. Clarify if the assets. revenues and expenditures related to the Chula Vista Franchise have been audited? The City Finance Director has verified that the assets, revenues and expenditures related to the Chula Vista franchise were audited by the firm of Arthur Anderson resulting in their report dated October 27, 1997, which is intended solely for the information and use of the Board of Directors and Management of Allied Industries Inc., and the Management of the City. 6. What are the "roll-off box " services and rates? Exhibit E of the franchise agreement contains the rates and service levels for all services provided by Pacific under the franchise agreement including the rates and service levels for "roll-off boxes." 7. Construction Companies and propertv owners need to be able to negotiate and schedule service with the hauler oftheir choice to minimize costs and construction delavs. The City Council establishes rates as maximum rates. Chula Vista rate payers with high volume or specific service needs may negotiate for service and price below the maximum rates. The proposed franchise agreement attempts to insure an improved quality of 2 '''R- If service by establishing very specific new performance standards and penalties for failure to meet those standards. The franchise agreement has not historically had that mechanism to protect quality of service. Additionally, in 1997 the Council established a limited term franchise agreement that obligates the City to take reasonable measures to protect the exclusive franchise for, "residential, commercial, and industrial," waste. That term concludes on September 4, 2002 unless the City terminates for cause, or "the City finds that Pacific has not performed satisfactorily." Pacific Waste Services has not voluntarily given up their contractual right to that component of the waste franchise. The proposed franchise renewal contains a number of performance standards, service benefits and rate modifications for single family and multi-family residents, property owners and managers, commercial businesses and roll-off customers. Any delay in approving the proposal will delay those benefits. The proposal also contains a number of performance adjustments that are necessary for the City to meet the 50% state mandated diversion goals by January 1,2000. These programs need to be in place during the 1999 calendar year to have an impact on diversion measured by the state. The proposal also contains a (60) sixty day transition period for the industrial component. That period is designed to assist the limited number ofChula Vista businesses that may be using a non-franchised hauler with the time necessary to make change without interrupting their business operation. While the City recognizes that a portion of the industrial business within the City is provided by non-franchised haulers operating within the City, much if not most of that business is conducted by haulers that have franchises in other cities. Staffs communication with those companies suggests that they will voluntarily leave when all-non franchise operators receive the same notice. CONCLUSION: Staff recommends that Council accept staffs report and approve the Franchise Agreement as proposed. The City Council will have an opportunity to restructure how it franchises or permits industrial waste collection when it prepares for a new competitive agreement process in 2002. Staff does not recommend that Council delay the proposal or the benefits it represents to Chula Vista waste customers. Should Council desire, they could adopt the proposal as recommended and direct staffto facilitate a meeting with Pacific Waste Services, Debris Box and any additional independent haulers to consider alternatives to the industrial component of the existing franchise agreement. However, staff further suggests that any compromise would need to be acceptable to Pacific and would need to provide the City with the same financial, environmental and liability provisions provided by the current franchise agreement. 3 II, f1-l/i) August 4,1998 TO: Mayor, Councilmembers, & Staff City of Chula Vista FROM: Kris Murphy RE: 8/4/98 Agenda Item 16A For the purpose of the record, 1 want to layout both support and concern about the garbage and recycling policies of the City. While I support the recommendations of the Staff to extend your existing franchise, there remain issues both of an immediate and future concern, as well as an outstanding issue of fairness. It is clear that the City Council could, if it so choose, move in any direction whether it be, extension, revision, termination, etc. of the existing contract. It is even more clear that the City wishes to work with AlliedlPacific to stabilize pricing and expand services & programs. In a perfect world, every residential garbage/recycling contract would regularly go out to competitive bid, in combination with free market, open competition for commercial/industrial services. This is not a perfect world aad the timing or contractual demands may hinder this idealistic approach. In the future, as outlined by Mr's Krempl and Meacham memo on this agenda item, "The City Council will have an opportunity to restructure how it franchises or permits industrial collection (or for that mJltter all aspects of waste collection and recycling- KM) when it prepares for a new competitive agreement in 2002." As long as the Chula Vista City Council & Staff are committed to competitive bidding and open competition in the future, in particular at the end ofthe extended contract, those of us who are working on this issue countywide, will not actively oppose this extension. (The fact that AlIied/Pacific has a collection contract with a "major city" like Chula Vista will further the efforts of promoting competitive bidding and open competition countywide. It also will diminish the fears of some cities that "vertical integration" is to be avoided like the plague) The only outstanding issue remains the treatment of those haulers who have "filled the void" over the years by providing roll offbox services that the "franchisee" failed to provide. The Staff recommendation to spend the next 60 days looking for some equity is commendable. So far they have worked to bring AlliedlPacific and at least one City licensed, small, independent hauler together to search for a solution. /6116~ \ ~- DEB~ ATTACHMENT A-I ~ - B :: ~ ~ (619) 284-9245 j FAX 284-9268 JUL 2 9 1938 10981 San Diego Mission Rd., Ste. 115, San Diego, CA 92108 July 28,1998 Mr. David D. Rowlands, Jr. City Manager City ofChula Vista 276 Fourth Ave Chula Vista, CA 91910 Re: Waste Management Franchise Renewal to the Year 2002 Dear Mr. Rowlands: The following questions and comments are based on the Draft Agreement and Attachments to the 7/14/98 Council Agenda Statement. Questions 1. Obiectives - For industrial and commercial business, who set "appropriate service levels"? Was industry input solicited or received? 2. Financial Points - Rates are being frozen at cun-ent levels until July 1999. Do current rates reflect the decrease in published landfill tipping fees from $38/ton to $30/ton? 3. "Most favored nation's" Clause - Is this clause meaningful ifwe exclude the closest comparable city serviced by Pacific Waste, i.e. Imperial Beach? Also, historically, cities (not just Chula Vista) do not bid their Waste Collection Franchises. This probably is not a strong point in favor of the City. 4. Business Points Summary - Residential Point 4, where are the construction demolition recommendations? 5. Laidlaw <Pacific) Franchise Rate of Return - The second paragraph of Mr. po~n's 1119/98 letter to Mr. Krempl says "Laidlaw contracted with an independent C.P.A. f111ll to audit the assets, revenues, and expenditures related to the Chula Vista franchise contract for their 1995 and 1996 fiscal years, and to verify the mathematical accuracy of the calculation of the return on assets ratio based on that audited data for those same years." The Independent Public Accountants' Report on Applying Agreed-Upon Procedures specifically says that the Independent Public Accountants were not engaged to perform an audit of the "return on assets". It is not clear that the Independent Public Accountants have audited the assets, revenues, and expenditures related to the Chula Vista franchise contract for 1995 and 1996. They have verified the aritlunetic accuracy of the calculation. Would you please clarifY if the assets, revenues and expenditures related to the Chula Vista Franchise have been audited? J4 ~ -~ , 7 --- T ~ DEBRIS BOX (619) 284-9245 FAX 284-9268 10581 San Ol.go MlsslDr) Rd., Ste. 115. San Diego, CA 92108 . "" 6. Roll-offbox service and ratl:s - The drdl does not ~.;li-;ete prices or service levels to be offered to contractors in Chule Vista. Will the Franchise provide for th~ same service levels t!ylt-cProperty owners Elld contractors expect in a competitive environment? CommeDts Property owners and contractors should be free to negotiate price. service levels and credit terms with licensed, insured responsible haulers. There is a big difference between "route" business such as resid~ntial pick-up or commercial bin hauling and the hauling of temporary construction bins. Construction job sites usually have crews and c;quipment costing hundreds of dollars 'per hour. Construction companies and property owners need to be able to negotiate and schedule service with the hauler of their choice to minimize costs and construction delays. The City ofChule Vista should adopt a non-exclusive prOgram for licensed, insured responsible haulers similar to the programs offered by San Diego City and the County of San Diego. A non-exclusive program would not preclude Pacific Waste from participating in roll-off business. They would be in a position to compete like in other hauler. I would welcome the opportunity to rl!~~USS these points with City Staff and elected officials and work on a progrom to er.:;ure service and cOffiF::t:":: for roll-off trash box service. . ~lY President . cc: Shirley A. HartoJ{, Mayor JiDA- ~!t ATTACHMENT A-2 ~- - ..; ~ --~ R.E. STEINHAUER CO. 7630 Miramar Road, #2400 San Diego, CA 92126 Tel: (619) 689-0052 Fax: (619) 689-9263 July 29, 1998 Mr. David D. Rowlands, Jr. City Manager City of Chula Vista 276 Fourth Ave Chula Vista, CA 91910 Re: Waste Management Franchise Renewal to the Year 2002 Dear Mr. Rowlands: The following questions and comments are based on the Draft Agreement and Attachments to the 7/14/98 Council Agenda statement. Questions 1. Obiectives - For industrial and commercial business, who set "appropriate service levels"? Was industry input solicited or received? 2. Financial Points - Rates are being frozen at current levels in July 1999. Do current rates reflect the decrease in published landfill tipping fees from $38/ton to $30/ton? 3. "Most favored nation's" Clause - Is this clause meaningful if we exclude the closest comparable city serviced by Pacific Waste, i.e. Imperial Beach? Also, historically, cities (not just Chula Vista) do not bid their Waste Collection Franchises. This probably is not a strong point in favor of the City. 4. Business Points Summary - Residential Point 4, where are the construction demolition recommendations? .5. Laidlaw0'acific) Franchise Rate of Return - The second paragraph of Mr. Powell's 1/19/98 letter to Mr. Krempl says, "Laidlaw contracted with an independent C.P.A. firm to audit the assets, revenues, and expenditures related to the Chula Vista franchise contract for their 1995 and 1996 fiscal years, and to verify the mathematical accuracy of the calculation of the return on assets ratio based on that audited data for those same years." The Independant Public Accountants' Report on Applying Agreed- Upon Procedures specifically says that the Independant Public Accountants were not engaged to perform an audit of the "return on assets". It is not clear that the Independant Public Accountants have audited the assets, revenues, and expenditures related to the Chula Vista franchise contract for 1995 and 1996. They have verified the arithmetic accuracy of the calculation. Would you please clarify if the assets, revenues, and expenditures related to the Chula Vista Franchise have been audited? If, R-13 A Complete Service Company, License #623016 6. Roll-off-box service and rates - The draft does not indicate prices or service levels to be offered to contractors in Chula Vista. Wi 11 the Franchise provide f or the: same service 1 evel s that property owners and contactors expect in a competitive envirnment? Comments Property owners and contractors should be free to negotiate price, service levels, and credit terms with licensed, insured responsible haulers. There is a big difference between "route" business such as residential pick-up or commercial bin hauling and the hauling of temporary construction bins. Construction job sites usually have crews and equipment costing hundreds of dollars per hour. Construction companies and property owners need to be able to negotiate and sheduale service with the hauler of their choice to minimize costs and construction delays. The City of Chula Vista should adpot a non-exclusive program for licensed, insured, responsible haulers similar to the programs offered by San Diego City and the County of San Diego. A non-exclusive program would not preclude Pacific Waste from participating in roll-off business. They would be in a position to compete like any other hauler. ~- " ~ . R.E. ste~nhauer Jt, 1I-''f ATTACHMENT A-3 :______~_________ ':CEMENT CUTTING., INC.::=-_=- _________==_ July 29,1998 lill( :::: ~ ! COU"CIl OF/CfS t C~ '~!!,' f~:!. .~~ r> 71;' I' , I: . ; !_- Honorable Shirley A. Horton, Mayor City of Chula Vista Dear Mayor Horton; I am writing this letter to convey my concern's regarding the city of Chula Vista's solid waste franchise agreement. As a demolition contractor, my company does business within the city of Chula Vista, as well as all other cites in San Diego county. In the city of Chula Vista we are forced to rent roll off demolition material boxes from a single source, because your city includes them in the franchise agreement. We need the freedom to negotiate this service in order to remain competitive and avoid costly delays. Our crews are expensive, and delays in service costs us money. We need to be able to negotiate credit terms, and pricing with our hauler of choice. By including the demolition roll off boxes in your franchise agreement, you are preventing us and your city from freedom of choice and free enterprise. Competition is the American way. There should be competition in the roll- off box business. Please consider taking it out of the franchise agreement. Sincerely, afton President Cement Cutting, Inc. J'"-~ 1845 LOGAN AVENUE' SAN DIEGO, CA92113 (619) 231-1735' IN SAN DIEGO COUNTY 1-800-564-1735 '"FAx (619) 238-5725 I , .J ATTACHMENT A-4 #~~. ')fDf re J U W~), .,,"____, I' 1m '.11.3 0 QIJ,' 8>0 Oleoo, ealnornia 9211l>~~8B (6191 29&-6:H7 EOE jl aJIJMi !10m, 0111", Fax (619) 296-7100 Ci'JlU ",!~~ ; "cc",,"lngFax(6'19)29IH'O' '- ------J EsDmati'V 'ax 16191100-43'14 U"''''' 385166 License ?0382fl July 30, 199& t Mayor Shirley Horton City of Chula Vista 276 Forth Avenue Chula Vista, CA 91910 Re; Exclusive Solid Waste Franchise Dear Mayor Horton, Through various contacts in the construction 'ndustry it has come to my attention that on Augu.t 4, 1998 the city ofCbula Vista has scheduled the first hearing on an extension of the Solid Waste Franchise Agreemem with Pacific Waste Systems, I further undel"Stand that the new agreement would grant exclusive rights to all solid waste hauling, including roll-<lffboxes, to Pacific Waste Systems, We have preformed work in cities with franchised waste haulers, the City ofCorouado and the City of San Marcos to name but two, We have b= compelled by the fIllllchise agreements of those cities to pay higher than market rates for mediocre service. The free entetprise system works well becau.e we have within it a free and unparalleled level of competition, The construction industry works well becaure we maintain and encourage that same competition from the time of bid through job completion. The City of Cbula Vista should not dictate to the construction 'nduony what waste bauler we mu., use any more than it should dictate to UlI what plumber or electrician or painter we will employ I ask that you revise the franchise agreement and permit open and fair competitIon within your city. Sincerely, .J!St4- John B. Gentry Purchasing Agent J'R-R(- '- /to ClE>e!__ L-I; r.>'" 0 ~ "'I;' Ct.'''' . ATTACHMENT A-5 July 30. 1998 TO: Michael Meacham, City of Chula Vista Rick Berlin, Allied I Pacific Gregg King. Debris Box FROM: Kris Murphy RE Clarification of My "Suggestions" In discussion with Gregg this morning. it became clear that what r said about what Rick said, did not get translated clearly to Michael, which then got back to Rick. Let me clarifY. In talking to Rick, I suggested that Allied 1 Pacific not request, but more importantJy "volunteer" to maintain the status quo on nonexclusive rolIoffbox service. He told me "he was willing to bring it upn at yesterdays meeting. He did not tell me he supported it, but was willing to discuss it in the conte'll: of tweaking the contract elsewhere IF the status quo was maintained After taking to Rick yesterday, I found out that Gregg was at CV City Hall and got to him via cellular and tilled him in on my conversation with Rick I suggested he talk to Michael prior to yesterdays meeting so that a solution could be reached prior to the public hearing on 8/4 before the City Council I have not talked to Michael. I was hopeful that things could be worked out between the City and Allied so that the independent haulers would be satisfied. I think there is a relatively easy WlN- WIN-WIN which if the City and Allied can work out, will avoid a major public hassle on 8/4, I) The status quo is maintained, Le. rolloffbox service remains nonexclusive. 2) All nonexclusive rolloffhox haulers pay City Franchise Fees, i.c. the City creates nonexclusive franchising for rolloffboxcs. 3) Allied 1 Pacific may be granted some ~sion in the revised contract in consideration of not forcing enforcement of exclusivity on rolloffi:. (consideration to Allied should reflect, but not exceed, lost potential business jf exclusivity was enforced) Everyone can WIN if there is a little bit of compromise! J~ Yi- D7 07-30-98 11:38am From-MURRAY LAMPERT CONSTRUCTION +6191859794 T-801 P.01/01 F-811 '- ~-' MURRAY LAMPERT \(.~~TT~G~R~;r irl~ ~, 'I onno \, l .ll.3\= I ( (l .1 , / I I' I I r ! II COU~CIl Of~ICp. . Cl..Jlllt",r, ~-_: Contractors uc. 11458038 3838 Camino Del Rio N, Suite 104 . San Diego, CA 92108 . (619) 285-9222 . FAX 285-9794 . (BOO) 9Z4-8001 July 30, 1998 Shirley A. Horton, Mayor City of Chula Vista 276 Fourth Avenue Chula VISta, California 91910 Dear Mayor Horton: It has come to my attt:ntion, that on August 4, 1998, the City ofChula Vista is scheduled to have a hearing on a extension of the Solid Waste Franchise Agreement with Pacific Waste Systems (formerly Laidlaw). I urge you to exclude "roll-off' boxes from this agreement By including "roll-olP' boxes as part of the agreement, you would in 1mn, take away free entcIprise between contractors, and haulers. As a remodeling contractor, I have experienced the effect an exclusive bas on the cost of "roll-off' dumpsters in Encinitas, and Poway. The fees are outrageous, and the end result is, the consumer paying more for debris removal on construction projects. I am also concerned about the indirect cost of poor service. Please do not take away our ability to negotiate our own tenus with the hauler of our choice, to ensure competitive pricing, and prompt service. Thank you for your consideration. Sincerely, k.:~ Gregg A. Cantor, President GAC:ww cc: Gregg King, Debris Box I A FAMILY BUSINESS I/'R-~6- u \D' ~. .r 'I-. "> t..... \ i "I " ,p j!,.' I .~/ y' D -O}f J '"' '. It I/U e/ . [, l qVv .{I./ fI " I \ v " d 1/"0 /v ~ r rf' .t-' !J~ '.f \. \V J -,"I , ; i\ 1'-' / \ r J ~pV \i ,\ ' ~' I A'f~ fb r' L'l . 8.23.070 8.23.080 8.23.090 Renewal of contract or franchise. Termination. Assignment. Sec. 8.23.010 Contract or franchise authority. The city council may, pursuant to state law, or in accordance with Article XII of the Charter of the city, contract or franchise for solid waste and recyclables collection and disposal. Sec. 8.23.020 prerequisites to authorization. A. Applicants for a contract or franchise chapter and the Charter of the city must administration the following information: pursuant to this file with the city 1. Name and description of the applicant; 2. Permanent home and business address and full address of the applicant; 3. Trade and firm name; 4. If a joint venture or a partnership, partners, or a corporation, the names any controlling shareholders, and, in percentage of participation and addresses; the name of all of the officers, each case, their their permanent 5. That the applicant has arranged for the disposal area where the same may be legally accepted and disposed; 6. The location of the disposal area; 7. Facts showing that the contractor is qualified to render efficient refuse collection service; 8. That the applicant owns or has under his control in good mechanical condition, sufficient equipment to conduct the business of refuse collection adequately and that the applicant owns or has access to suitable facilities for maintaining his equipment in a clean and sanitary condition; 9. That the vehicles and equipment conform to all applicable provisions of this chapter; 10. Such other facts or information as the city manager or the city council may require. B. The city manager shall investigate the information required by Section 8.23.020 and verify that the contractor or grantee is 2 /(,h- oti.h capable of complying with the provisions of this chapter, the terms of the proposed contract or franchise and the rules and regulations of the city. The city manager shall notify the city council of his findings prior to approval or denial of the contract or grant of franchise by the council. Sec. 8.23.030 Bonding of contractor or grantee. Before entering into a contract or franchise under the provisions of this chapter, the council shall require the contractor or grantee as a condition to the contract or franchise to post with the city clerk, a cash bond or surety bond in an amount determined by the council and furnished by a corporate surety authorized to do business in the state, payable to the city. The bond shall be conditioned upon the full and faithful performance by the collector of his obligations under the applicable provisions of this chapter and shall be kept in full force and effect by the collector throughout the life of the permit and all renewals thereof. Sec. 8.23.040 Written Acceptance. Any franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by the grantee with the city clerk. Sec. 8.23.050 Publication Costs. The grantee of a franchise hereunder 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 expense. Sec. 8.23.060 Contract or Franchise Terms and Conditions. A contract or franchise may be let on conditions as may be required or approved by the accordance with the terms of this chapter and the such City City terms and Council in Charter. Sec. 8.23.070 Renewal of contract or franchise. Where a contract or franchise has been entered into between the city and an operator and the operator has satisfactorily performed under such contract or franchise, the city council, without inviting bids or proposals therefor, may, either prior to or after the expiration of such contract, extend or renew the same upon the same conditions or such other conditions as the city council may provide. The city council shall, however, whether considering a contract or a franchise follow the procedures 3 )' H - JlfJG.- established by Article XII of the Charter for notice and hearing. Sec. 8.23.080 Termination. A contract or franchise may be terminated at the option of the council in the event there is a change of ownership of any kind or nature of the operating company, unless approval therefor has been obtained in writing from the council. If it is determined by the city manager following an inspection of the contractor's or grantee's place of business, after reasonable notice to the contractor or grantee that the operator or manager has not complied with the provisions of this chapter and all other applicable statutes, ordinances, rules and regulations of the state and city, the city manager shall notify the contractor or grantee in writing of noncompliance and shall order compliance within thirty days. If noncompliance is not corrected, the council, after a hearing, shall be empowered to cancel the contract or franchise with the operator, or take such other action as the council shall determine. Sec. 8.23.090 Assignment. No assignment of subcontracting of any contract or franchise or any right occurring under any contract or franchise shall be made in while or in part by the contractor or grantee without the express written consent of the city. In the event of any assignment, the assignee shall assume the liability and all other obligations of the contractor grantee. SECTION II: That Chapter 8.24 of the Chula Vista Municipal Code is hereby amended to read, in its entirety, as follows: Sections: 8.24.010 8.24.020 8.24.030 8.24.040 8.24.045 8.24.050 8.24.060 8.24.070 8.24.080 Chapter 8.24 GARBAGE AND LITTER Purpose and intent. Definitions. Accumulation of materials constituting a fire hazard prohibited. Refuse-Disposal in public places prohibited. Garbage and refuse generated off site-Placement in City trash receptacles-Prohibited. Refuse-Disposal on private property prohibited-Exception. Owner or occupant responsibility to maintain sanitary premises. Garbage and refuse-Collection prohibited when-Burning prohibited. Garbage and refuse-Receptacles approved for residential use. 4 )/'IJ-~ 8.24.090 8.24.100 8.24.110 8.24.120 8.24.130 8.24.140 8.24.150 8.24.160 8.24.170 8.24.180 8.24.190 8.24.195 8.24.200 8.24.210 8.24.220 8.24.230 8.24.240 Garbage and refuse-Placement in receptacles or bundles- Restrictions. Garbage and refuse-Placement of receptacles for collection- Times. Intentionally Omitted. Intentionally Omitted. Intentionally Omitted. Intentionally Omitted. Intentionally Omitted. Intentionally Omitted. Intentionally Omitted. Payment of collection charges. Reduced residential refuse collection charges. Renumbered. Interference with collection and scavenging prohibited when. Littering-By private persons prohibited where. Littering-By corporations or persons prohibited where. Owner or occupant duty to keep sidewalks free of litter. Intentionally Omitted. 8.24.010 Purpose and intent. The purpose of this chapter is to provide standards for and to regulate the accumulation, preparation, storage, transportation and disposal of garbage and rubbish in order to protect the health and safety of Chula Vista citizens by controlling the harboring and breeding of rodents and insects, reducing the pollution of the air caused by burning, putrefaction or fermentation of refuse, preventing the spread of disease, reducing the hazards of fire and enhancing the values and enjoyment of life. 8.24.020 Definitions. For the purpose of this chapter, the definitions contained in Chapter 8.25, Section 8.25.020, shall govern unless the context otherwise requires or indicates. 8.24.030 Accumulation of materials constituting a fire hazard prohibited. It is unlawful for any person to create or allow to be created, or maintained upon any premises in the city, owned or controlled by such person any accumulation of materials that are dangerous as fire menace or hazard. 8.24.040 Refuse-Disposal in public places prohibited. 5 )I,IJ - Rts" E>>- It is unlawful for any person to place, dump, deposit or throw any rubbish, bottles, glass, tacks, tin cans, wire, automobile parts or bodies, old wagons or buggies, or other vehicles, in whole or in part; citrus fruit, deciduous fruit, vegetables, junk or other refuse of any kind or character whatsoever upon or along the right-of-way of any public highway, street, lane, alley or other public place within the corporate limits of the city. 8.24.045 Garbage and refuse generated off site-Placement in City trash receptacles-Prohibited. City trash receptacles are placed in city parks and other public areas for the use of the public to control trash, litter and garbage which is generated at the location where the trash receptacles are; they are not to be used as disposal sites for trash or rubbish which is generated off site. Therefore, it is unlawful for any person to place, dump, deposit or throwaway rubbish, trash, garbage, bottles, glass, tacks, tin cans, wire, automobile parts, food, junk or other refuse or debris of any kind or character whatsoever in city trash receptacles if such was generated at a location other than where the trash receptacle is located. 8.24.050 Refuse-Disposal on private property prohibi ted-Exception. It is unlawful for any person to place, dump, deposit or throw away any rubbish, bottles, tin cans, wire, automobile parts or bodies, old wagons or buggies, or other vehicles, in whole or in part; citrus fruit, deciduous fruit, vegetables, junk or other refuse of any kind or character whatsoever, upon any private property adjacent or abutting upon any public highway, or public place, or upon any private property whatsoever, within the corporation limits of the city unless such person first obtains the permission of the owner of such property so to do. It is further unlawful for such person to deposit or place such materials in any garbage or refuse receptacle owned or used by the owner of such property unless such person first obtains the permission of the owner so to do. 8.24.060 Owner or occupant responsibility to maintain sanitary premises. Every owner, tenant, occupant or person owning or having the care and control of any premises in the city shall keep said premises or those under his care and control ln a clean and sanitary condition and no person shall permit any garbage, rubbish, or any other substance which may be or will become offensive to be deposited or to remain in or upon any premises owned or occupied by him or under his care and control except as otherwise provided by law. It shall be the responsibility of such person to provide for scheduled garbage, rubbish, or refuse collection by means of the services of the contract or franchise agent or such other 6 J' (J - ''iff- acceptable means of services to insure compliance with state law for weekly service. It shall be mandatory for such person in a single-family residential or multiple dwelling unit of four units or less to utilize the services of the contract or franchise agent and to pay the collection charge established by the city for such service; provided, however, that any such person subject to the mandatory requirement may apply for an exemption therefrom to the contract or franchise agent upon a showing of proof of weekly disposal of trash at an authorized dump. Any dispute as to such exemption may be appealed to the city manager of the city. 8.24.070 Garbage and refuse-Collection prohibited when-Burning prohibited. No person shall collect, remove or convey, or cause or permit to be collected, removed or conveyed, any residential, commercial or industrial refuse upon or along any public street, alley or any other public place in the city; provided however, the prohibitions of this section shall not apply to self-haul authorized employees of the city, or to any person or firm or employees thereof, with whom the city has entered into a contract for the collection, removal or disposal of garbage or rubbish or refuse, or to the occupant or owner of any residence from personally removing garbage or rubbish from said residence or commercial establishment. It is unlawful for any person to burn or bury any garbage or refuse as a means of disposing of said garbage. 8.24.080 Garbage and refuse-Receptacles approved for residential use. It is unlawful for any person in a residential area to keep or store any garbage within receptacles except those which are tapered gradually, decreasing in diameter toward the bottom of the container, made of metal or plastic with metal or plastic covers and handles, and which receptacles shall be watertight and fly-proof and shall not exceed eighteen gallons' capacity. Maximum container capacity shall be forty gallons. Further, every person having the care or control of any place or premises within the city where refuse accumulates or exists, and such refuse is to be collected by the contract agent of the city, shall cause such refuse to be placed and kept in such receptacles, with lids securely fitted, and in a number adequate to contain the amount of refuse normally accumulating during the interval between collection thereof. 8.24.090 Garbage and refuse-Placement in receptacles or bundles- Restrictions. All rubbish and trash shall be kept within sturdy receptacles made of metal or plastic, and no rubbish or trash shall be placed in any receptacle so that it protrudes or extends beyond such receptacles. Weight of empty receptacle shall not exceed fifteen pounds; weight of fully loaded container shall not exceed sixty 7 11D1l- ~Cf pounds. Cardboard containers securely tied may be used. containers shall also be collected. Said A. The following are approved for residential customers: 1. Use of plastic or paper bags manufactured expressly for waste storage, securely tied with wire, plastic or string, and of such thickness and bursting strength to resist puncture and tears. Grocery and shopping bags are not permitted; 2. Securely tied cardboard containers may be used on a one-time basis and will be collected by the contract agent; 3. Newspapers and/or flattened cardboard boxes may be placed outside receptacles if they are stacked and securely tied in bundles of not more than sixty pounds in weight; 4. Brush and limbs of trees may be placed outside of receptacles in tied bundles not more than four feet in length or eighteen inches in diameter; 5. Any person desiring to receive different, additional, or more frequent service may do so through the contract agent, on mutually agreeable terms and conditions. B. The following are disapproved for residential customers; 1. Use of severely damaged containers or containers with jagged or sharp edges (said containers will be appropriately tagged by contract agent first time noted and will be collected by contract agent if used subsequently to being so tagged.) 2. Put out for contract agent collection any hazardous wastes and materials, such as hypodermic needles, drugs, poisons, caustics, acids, insecticides , explosives or flammables; 3. Put out for contract agent collection, construction and demolition waste, cement, dirt, sand, lumber, plaster, sod, stones, building blocks, auto or truck parts or tires, trees, crankcase drainings, agricultural industry debris, or any items which resist compaction and may damage equipment; 4. Deposit garbage, rubbish, or any other material in waste containers intended for use by, or belonging to others. 8.24.100 Garbage and refuse-Placement collection-Times. of receptacles for 8 J41f}- IlJh No refuse shall be placed for collection in an alley or on the curb or the streets before six p.m. on the day immediately prior to the scheduled collection day. No person shall permit refuse receptacles to remain on the street or alley after eight p.m. of the collection day. Collection point shall be in front of the residential property at the curbline or as close thereto as possible without creating an obstacle on the sidewalk. All refuse placed at such collection points shall be deemed an acceptance or request for service by the city's contract agent. 8.24.110 [Intentionally Omitted] . 8.24.120 [Intentionally Omi t ted] 8.24.130 [Intentionally Omi t ted] 8.24.140 [Intentionally Omi t ted] 8.24.150 [Intentionally Omi t ted] 8.24.160 [Intentionally Omi tted] 8.24.170 [Intentionally Omitted] 8.24.180 Payment of collection charges. A. The council finds and determines that the regular collection of garbage and rubbish and the disposal thereof by the contract agent of the city from all places in the city is a service to the premises from which it is collected. Except as provided in Sections 8.24.060 and 8.24.070, all owners or occupants of premises generating Solid Waste or otherwise having the responsibility to keep the premises clean and sanitary, shall pay the monthly collection fee charged by the City's contract or franchise agent, not to exceed the City- approved "Maximum Rates". A schedule of Maximum Rates shall be kept on file with the City Clerk and is available for public review. Maximum Rates may be subj ect to increase pursuant to the terms of the City's contract or Franchise with the contract or franchise agent(s). Subject to the terms of the then in effect contract or franchise, the council may from time to time establish such rates by resolution, including the establishment of rates for different classifications of generators (residential, commercial, or industrial or industrial or subclassifications thereof) or types of materials generated, including preferential or discounted rates for senior citizens or low income families or other classifications which are deemed to be in the public interest. No person shall willfully fail, neglect or refuse, aftere demand by contract agent, to pay the fees as provided for herein. B. The contractor or grantee will provide the billing and be totally responsible for the collection of payments. Residential customers shall not be billed more than three 9 , II; 11- $r ...t- months in advance. Service shutoff for nonpayment shall not be instituted before thirty days after initial billing and after sufficient notification. Commercial billing shall be monthly in arrears of service. 8.24.190 Reduced residential refuse collection charges. The city council finds and declares that senior citizens (62 years and older) in single-family homes do not generate as great a volume garbage and refuse and, therefor, a method should be provided which would result in a reduced collection charge for such citizens. The collection charge for senior citizens shall be based upon the cost to be established by resolution of the city council for single container service. 8.24.200 Interference with collection and scavenging prohibited when. It is unlawful for any person or persons other than the contract agent as defined herein and authorized by the city to collect garbage, rubbish, trash and other refuse, to interfere in any manner with any receptacle whether owned by private persons or by the contract agent, containing garbage, trash, rubbish or the contents thereof or to remove any such receptacle from the location where the same was placed by the owner thereof or to remove the contents of any such receptacle except that any person, firm or corporation producing table refuse or other form of garbage may sell, give or otherwise dispose of the same in such manner as he or it may desire; provided, that any table refuse or garbage handled, conveyed or otherwise treated by any person other than an employee of the contract agent of the city, shall be handled, conveyed or otherwise disposed of in a manner strictly in accordance with the rules and regulations of the county health department. Any person, firm or corporation may also sell, give or otherwise dispose of solid waste in such containers in such manner as it may desire provided that all federal, state and local laws are followed. 8.24.210 Littering-By private persons prohibited where. No person or persons shall leave, discard, deposit, throwaway or cause to be left, discarded, deposited or thrown away, any container of any type material waste, food, paper, wood, trash or any refuse upon any street, alley, gutter, sidewalk, parkway, park or recreational area in the city. 8.24.220 Littering-By corporations or persons prohibited where. It is unlawful for any person, firm, company or corporation to deposit upon any sidewalk, or street within the city any sweepings from any sidewalk, stairway or other opening leading to the street or sidewalk. All such sweepings or material from any sidewalk or any other opening leading to the street or sidewalk within the city shall be removed in a pan, shovel or other container and placed in a receptacle for rubbish. )~ 8- Jli' ,j 8.24.230 Owner or occupant duty to keep sidewalks free of litter. It shall be the duty of all owners and occupants of buildings in the city and the duty of all owners of vacant lots in the city to keep the sidewalks adjacent to such premises clean and free of any container of any type of material, waste, food, paper, wood, trash or any refuse and all noxious weeds and vegetation. 8.24.240 [Intentionally Omitted] SECTION III: That Chapter 8.25 of the Chula Vista Municipal Code is hereby amended to read, in its entirety, as follows: Sections: 8.25.010 8.25.020 8.25.030 8.25.035 8.25.040 8.25.050 8.25.060 8.25.070 8.25.080 8.25.090 8.25.100 8.25.110 Chapter 8.25 RECYCLING Purpose and Intent. Definitions. Mandatory Fees for Recycling. Reduced Residential Curbside Recycling Collection Rates. Separation of Recyclable Materials, Storage and Containers. Mandatory Recycling. Recyclable Programs. Reports. Scavenging. Composting. Enforcement. Severability. 8.25.010 Purpose and Intent. The purpose of this chapter is to provide standards for integrated solid waste management to include source reduction, recycling and composting of solid wastes, in order to provide for the long term health, safety and welfare of Chula Vista residents through extending current landfill capacity, preserving resources, and providing for the general protection of the environment. The chapter provides for regulation of the storage, collection, transportation and recovery of marketable and recyclable materials. 8.25.020 Definitions. For purposes of this chapter, and other municipal code provisions referring hereto, the following words shall have the meanings ascribed thereto unless the context in which they are used clearly indicates another meaning. )(j1J - 8i'P- A. "Aluminum" means recoverable materials made from aluminum such as used aluminum food or beverage containers, aluminum foil, siding, screening, and other items manufactured from aluminum. B. "Bin" shall mean those plastic or metal containers of one cubic yard (202 gallons) to eight cubic yards that have plastic lids on the top (unless metal lids are designated by the City Manager). Bins are used for weekly or more frequent collection of waste, yard waste or designated recyclables by the City or its Franchise agent. C. "Bulky Waste" means discarded items whose large size or shape precludes or complicates their handling by standard residential or commercial solid waste, recycling and green waste collection methods. Bulky items include white goods, furniture, large auto parts, trees, stumps, carpet and other potentially oversize wastes. Bulky waste does not include hazardous or infectious waste unless specifically exempt such as Freon containing refrigerators. D. "Buy-back Center" means a facility licensed and permitted by the Department of Conservation and/or local jurisdiction which pays a fee for the delivery transfer of ownership to the facility of source separated materials for the purpose of recycling or composting. E. "Cardboard" means post-consumer waste paper grade corrugated cardboard (grade #11), kraft (brown) paper bags, or solid fiber boxes which have served their packaging purposes and are discarded and can later be reclaimed for collection and recovery for recycling. F. "Carts" shall mean those plastic containers with a capacity of less than 202 gallons (one cubic yard). Carts shall have a fixed lid and are designed for automated and/or semi-automated collection of solid waste, yard waste and/or designated recyclables by the City or its Franchise agent. G. "City" shall mean the City of Chula Vista, corporation of the State of California in incorporated form or in any later reorganized, enlarged or reincorporated form. a municipal its present consolidated, H. "Collection" means the act of removing and conveying non- hazardous and non-infectious solid waste, commingled or source separated materials, from residential, commercial, industrial, or institutional (governmental) generators, to a facility for processing, composting, transfer, disposal or transformation. I. "Commercial" means a site and/or business zoned or permitted for any use other than residential including but not limited to commercial, light industrial, industrial and agricultural. Commercial generators that generated three (3) or more cubic yards of waste per week are serviced by a bin or compactor collection vehicle. Jt; fJ - ~ Jl.. J. "Commercial Recyclables" means Designated recyclable materials from the two commercial subcategories of office and hospitality. Materials include, but are not limited to: office paper, cardboard, newspaper, and aluminum from offices; and cardboard, glass bottles and jars, plastic bottles, aluminum, tin and bi-metal cans, and white goods from hospitality establishments. K. "Compactor containers" means those fully enclosed metal containers of two to forty cubic yards provided by the City's hauler or customer. Compactors typically serve very large generators. L. "Compost" means the product resulting from the controlled biological decomposition of organic wastes that are source separated from the municipal solid waste stream. M. "Composting" shall mean the controlled and monitored process of converting organic wastes into compost. N. "Construction Waste" means the demolition, dredging, grubbing, building, and rubble resulting from construction, remodeling, repair, and/or demolition activities on housing, commercial, governmental building, and other structures and pavement. O. "Contract or Franchise agent(s)" means any person, private or public entity designated by the City council pursuant to Article XII of the City charter and Chula Vista Municipal Code, Chapter 8.23, as being responsible for administering, the collection, processing and/or disposal of solid waste or Designated Recyclables. P. "Recycling Box" shall mean those containers with a capacity of 18 gallon to 32 gallons which are supplied by the City or its Franchise agent for manual collection of designated recyclables. Q. "Curbside collection" means the service of removing and conveying of non-hazardous and non- infectious solid waste, source separated recyclables and/or green waste from the public thoroughfare at the curb or alley. (The City shall make the final determination regarding eligibility for curbside collection which shall generally apply to small quantity generators. ) R. "Designated containers" ("Containers") shall mean those containers designated by the City Manager for temporary storage and collection of waste or designated recyclables including but not limited to "Curbside bins, Carts, Bins, Roll-off Boxes, and or Compactor Containers. S. "Designated solid waste and recycling collection or storage location" means a place designated by the City Manager for storage and/or collection of waste, green waste and/or recyclables pursuant to Section 8.24.100 of the Chula Vista 13 J hR - eft'''rt\. Municipal Code. Designated locations include, but are not limited to, the curb, alley, waste/recycling enclosure, a loading dock, or basement of a commercial enterprise or multi- family complex where waste and recyclables are placed for collection or temporary storage prior to collection by the City's Franchise agent. T. "Franchised Recyclables" means any residential, commercial or industrial Recyclables, as defined herein, to be collected by the City's contract agent or franchisee, placed in designated recycling containers or at designated recycling collection or storage location(s) . u. "Garbage" means all non-hazardous, non-infectious organic waste including: kitchen and table waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking, or handling of food stuffs, except organic wastes separated therefrom and used in composting in accordance with Chula Vista Municipal Code Chapter 8.25, Section 8.35.090. V. "Generator" means every owner, tenant, occupant or person owning or having the care and control of any premises in the City including the temporary use of parks, open space or a public thoroughfare. W. "Glass bottles and jars" means food and beverage containers made from silica or sand, soda ash and limestone, the product being transparent or translucent and being used for packaging or bottling, including container glass designated redeemable under the California Beverage Container Recycling and Litter Reduction Law, Division 12.1 (commencing with Section 14500) of the California Public Resources Code, as well as glass jars and bottles without redeemable value ("scrap"), but excluding household, kitchen, and other sources of non-container glass such as drinking glasses, ceramics, light bulbs, window pane glass, and similar glass products that are not bot tIes or jars. x. "Grantee" shall mean the City's Franchise agent(s). Y. "Green wastes" means the leaves, grass, weeds, shrubs, tree branches, tree trunk and other wood materials from trees. Green waste may also include pre-consumer food waste, incidental amounts of waxed or plastic coated corrugated cardboard, unpainted and untreated lumber. Green waste does not include, tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated lumber, plywood, particle board or other manufactured products that contain glue, formaldehyde, non-organic or non- biodegradable materials. Z. "Green Waste Processing" means the accumulation and storage of green waste in a manner that leads to the intentional or un- intentional thermophilic decomposition of green waste. The 14 JI#H-~~YI more than 15 yards or three (3) tons per year of unprocessed, shredded, ground or composted material shall constitute green waste processing and is subject to the City, County and State requirements regulating compost and/or solid waste facilities (site codes). Residential, commercial and agricultural sites that generate, stockpile or process green waste material generated on site and used on-site without sale of finished or unfinished material that are otherwise compliant with all conditions of the municipal code for nuisance may apply for an annual exemption. AA. "Hazardous or Toxic Waste" means any waste material or mixture of wastes which is toxic, corrosive, flammable, explosive, an irritant, a strong sensitizer, which generates pressure through decomposition, heat or other means, if such a waste or mixture of wastes may cause substantial personal injury, serious illness or harm to humans, domestic animals, or wildlife, during, or as an approximate result of any disposal of such wastes or mixtures of wastes as defined in Section 25117 of the California Health and Safety Code which is not legally disposable at a Class III Landfill. BB. "Hospitality" means any establishment that offers dining services, food or beverage sales. This includes, taverns, bars, cafeterias, and restaurants, as well as, motels and hotels (temporary housing of less than one month duration), hospitals, schools, colleges, and other such establishments that have dining services, or a restaurant or bar on their premises. CC. "Industrial Recyclables" means recyclables from industrial, construction, and demolition operations, including, but not limited to, asphalt, concrete, dirt, land clearing brush, sand and rock. DD. "Industrial Solid Waste" means solid waste originating from mechanized manufacturing facilities, factories, refineries, construction and demolition projects, and/or publicly operated treatment works, excluding recyclables and compostables, if properly handled and treated excluding Hazardous or Toxic Waste. EE. "Inert" means materials such as concrete, soil, asphalt, ceramics, earthen cooking ware, automotive safety glass, and mirrors. FF. "Improper Disposal" means the discarding of any item or items upon public or private premises that where not generated on the premises as a part of its authorized use unless written consent of the property owner is first obtained. GG. "Improper Disposal Site" means any premises that have intentionally or unintentionally accumulated solid waste or recyclables and/or charged a fee for accepting material without a solid waste or composting permit from the County 15 J"l1-~o without a solid waste or composting permit from the County Local Enforcement Agency (site code). This does not include businesses licensed and permitted in the City to purchase source separated recyclables. HH. "Incidental Waste" less than one pound of waste deposited in a public litter bin or designated waste container to prevent litter. Such as waste from a fast food meal deposited in a designated waste container or public litter bin by a pedestrian or vehicle operator. II. "Industrial Generator" means any property or generator that is engaged in the manufacture of products including but not limited to construction and demolition. Industrial generators are typically serviced by roll-off box containers of 10-40 yard capacities and typically generate inert materials such as asphalt, concrete, building debris and some wood and dry green waste. JJ. "Industrial" means any form of mechanized manufacturing facilities, factories, refineries, and construction and demolition operations, excluding hazardous waste operations. KK. "Institutional" shall mean any premise owned and/or occupied by local, state and federal agencies. Typically office or education facilities with a common waste stream. LL. "Integrated Solid Waste Management" means a planned program for effectively controlling the storage, collection, transportation, processing and reuse, conversion or disposal of solid waste, recyclables and/or compostables in a safe, sanitary, aesthetically acceptable, environmentally sound and economical manner. It includes all administrative, financial, environmental, legal and planning functions as well as the operational aspects of solid waste handling, disposal, litter control and resource recovery systems necessary to achieve established objectives. MM. "Landfill" means a disposal system by which solid waste is deposited in a specially prepared area which provides for environmental monitoring and treatment pursuant to the California Code or Regulations, California Public Resources Code and the Federal Resource Conservation and Recovery Act. NN. "Large Generator" means those residential, commercial industrial and institutional entities that generate more than 300 gallons of waste per week excluding source separated recyclables diverted from disposal or transformation. 00. "Mixed waste processing" means a. system of recovering recyclables from the mixed waste stream through separation at a processing facility, transfer station, landfill, or other such facility instead of separation at the primary waste generation source. 16 I'll -R P PP. "Multi-family" means a total of 4 or more horizontal arrangement structure or structures containing a dwelling units in any vertical or on a single lot or building site. QQ. "Newspaper" means newsprint-grade paper including any inserts that come in the paper, and excluding soiled paper, all magazines, and other periodicals, telephone books, as well as all other paper products of any nature. RR. "Nuisance" means anything which is injurious to human health, or is indecent or offensive to the senses, and interferes with the comfortable enjoyment of life or property, and affects at the same time an entire community or neighborhood, or any number of persons, although the extent of annoyance or damage inflicted upon the individual may be unequal, and which occurs as a result of the storage, removal, transport, processing, or disposal of solid Waste, compost, and/or designated recyclables. 55. "Office or Offices" for purposes of this chapter shall mean any office, combination of offices or connected building or office space in which the combined, total area is more than 20,000 square feet, regardless of office affiliation, ownership, or occupancy. This includes, but is not limited to, businesses used for retail, wholesale, professional services, legal services, financial services (to include banks), medical services, shipping and receiving areas, churches, schools, colleges, and libraries. TT. "Office Paper" means waste paper grades of white and colored ledgers and computer paper. Examples include forms, copy paper, stationery, and other papers that are generally associated with desk and employee work area activity, and any additional materials to be added by ordinance. DU. "Plastic bottle" means a plastic container with narrow neck or mouth opening smaller than the diameter of the container body, used for containing milk, juice, soft drinks, water, detergent, shampoo or other such substances intended for household or hospitality use; to distinguish from non-bottle containers (e.g., deli or margarine tub containers) and from non-household plastic bottles such as those for containing motor oil, solvents, and other non-household substances. VV. "Pollution" means the condition caused by the presence in or on a body of water, soil, or air of any solid waste or substance or derived therefrom in such quantity, or such nature and duration, or under such conditio that the quality, appearance, or usefulness of the water, soil, land, or air is significantly degraded or adversely altered. WW. "Processing" means the reduction, separation, recovery, conversion, or recycling of any component(s) of solid waste. 17 J'11 - Jli'ro xx. "putrescible Wastes" means the waste in organic material with the potential decomposition capacity to emit noticeable quantities of odor and gas by-products. Material in this category includes, but is not limited to kitchen waste, dead animals, food from containers, etc., except organic wastes separated therefrom and used in composting. YY. "Recyclables" means any materials that are recyclable, reclaimable, and/or reusable within the following generating categories: small generator an large generator. Any material having an economic value on the secondary materials market or that is otherwise salvageable shall be included and/or other materials that have been separated from other small or large generators for the purposes of being recycled for resale and/or reuse, and placed at a designated recycling or waste collection or storage location or in a designated recycling or waste container for the purpose of collection and processing, or any such designated recyclables materials collected under a mixed waste processing program. ZZ. "Recycling" shall mean any process by which materials which would otherwise be discarded, deposited in a landfill or transformation facility and become Solid Waste are collected (source separated, commingled, or as "mixed waste"), separated and/or processed and returned to the economic mainstream in the form of raw materials or products or materials which are otherwise salvaged or recovered for reuse. AAA."Refuse" means garbage and rubbish. BBB. "Removal" means the act of taking solid wastes or designated recyclables from the place of generation either by the contract or Franchise agent(s), or by a person in control of the premises. CCC. "Removal frequency" means frequency of removal of solid wastes or recyclables from the place of generation. DDD. "Residential" for purposes of this Franchise, means any building or portion thereof designed or used exclusively as the residence or sleeping place of one or more persons, including single and multiple family dwellings, apartment- hotels, boarding and lodging houses. Residential does not include short-term residential uses, such as motels, tourist cabins, or hostels which are regulated as hospitality establishments. EEE. "Residential Recyclables" means those specific recyclable materials from residential solid waste (single family and multi-family) including, but not limited to, aluminum, glass bottles and jars, newspaper, plastic bottles, tin and bi-metal cans, white goods, and yard waste. FFF. "Roll-Off Service" means service provided for the collection, removal and disposal of industrial waste such as construction, 18 )'~ -~~..A- demolition and other primarily inert non-putrescible wastes and green wastes. Roll-off Service is usually provided using metal containers of ten to forty cubic yards that are open on the top with doors on one end. GGG. "Rubbish" means non-putrescible solid wastes such as ashes, paper, glass, bedding, crockery, plastics, rubber by-products or litter. Such materials that are designated as recyclable or compost may be exempt from categorizing as rubbish provided such materials are handled, processed and maintained in a properly regulated manner. HHH. "Salvaging or salvageable" means the authorized storage and removal of solid recyclables or recoverable materials. controlled and/or waste, designated III. "Scavenging" means the uncontrolled and/or unauthorized removal of solid waste, designated recyclables or recoverable materials. Such activity is unlawful and is a misdemeanor punishable by up to six months in jail and $1,000 in civil penalties under section 8.24.200, 8.25.080 of the Chula Vista Municipal Code and Chapter 9 Section 41950 of the California Integrated Waste Management Act of 1989. JJJ. "To segregate waste material" means any of the following: the placement of designated recyclables in separate containers; the binding or bagging of designated recyclables separately from other waste material and placing in a separate container from refuse, or the same container as refuse; the physical separation of designated recyclables from other waste material (either at the generating source, solid waste transfer station, or processing facility) . KKK. "Small Generator" means those residential, commercial industrial and institutional entities that generate less than 300 gallons of waste per week excluding source separated recyclables diverted from disposal or transformation. LLL. "Solid Waste" means all putrescible and non-putrescible solid, semi-solid and liquid wastes, such as refuse, garbage, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semi-solid wastes, and includes liquid wastes disposed of in conjunction with solid wastes at solid waste transfer /processing stations or disposal sites, which are generated by Residential, Commercial or Industrial sites within the City. Solid waste shall not include: hazardous and infectious waste, sewage collected and treated in a municipal or regional sewage system or materials or substances having commercial value or other importance which can be salvaged for reuse, recycling, composting or resale. MMM. "State" shall mean the State of California. 19 1~/J-I1!t~ 000. "Storage" means the interim containment of solid wastes, yard wastes, or recyclables in an approved manner after generation and prior to disposal, collection or processing. (Interim means for one week or less, roll-off containers may store non- putrescible waste for up to thirty days.) PPP. "Streets and Byways" 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. QQQ. "Tin and bi-metal cans" means any steel food and beverage containers with a tin or aluminum plating. RRR. "Transfer or processing station" means those facilities utilized to receive solid wastes and to temporarily store, separate, convert, or otherwise process the solid waste and/or recyclables. SSS. "Unit" means an individual residence residential multi-family complex. contained in a TTT. "White goods" means kitchen or other large enameled appliances which includes, but is not limited to, refrigerators, washers, and dryers. UUU. "Wood Waste" means lumber and wood products but excludes tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated wood, plywood, particle board or other manufactured products that contain glue, formaldehyde, non-organic or non-biodegradable materials. VVV. "Vector" means any nuisance such as odor, unsightliness sound or, a carrier, usually insects or rodents, that is capable of transmitting a disease. WWW. "Yard waste" means the leaves, grass, weeds, and wood materials from trees and shrubs from the single family and multi-family residential sources of the City's Green waste (to include landscape haulings from residential sources). Acceptable materials for collection include all yard waste as herein defined, excluding palm fronds, treated or processed wood or lumber, bulky waste or any other materials as shall be determined by the City as to not be salvageable. All acceptable yard waste shall be void of nails, wire, rocks, dirt or any other material that is not considered yard waste. 8.25.030 Mandatory Fees for Recycling. A. The city council finds and determines that the regular collection of recyclables by the contract or franchise agent(s) of the city from all places in the city is a service to the premises from which it is collected. All owners or occupants of premises generating recyclables shall pay the 20 )ltn--~ monthly collection fee charged by the City's contract or franchise agent, not to exceed the City-approved "Maximum Rates". A schedule of "Maximum Rates" shall be kept on file with the City Clerk and is available for public review. Maximum Rates may be subject to increase pursuant to the terms of the City's contract or franchise with the contract or franchise agent (s) . Subj ect to the terms of the then in effect contract or franchise, the council may from time to time establish such rates by resolution, including the establishment of rates for different classifications of generators (residential, commercial, or industrial, or subclassifications thereof) or types of materials generated, including preferential or discounted rates for senior citizens or low income families or other classifications which are deemed to be in the public interest. B. Pursuant to California Public Resources Code, Sections 41900 et seq., City may, by resolution of the city council, impose fees on City generators to pay the actual costs incurred by the city in preparing, adopting or implementing an integrated waste management plan in accordance with state mandates. C. The contract or franchise agent shall provide billing service and be totally responsible for the collection of such fees, at the same time and in the same manner, as the collection of charges for refuse collection pursuant to Section 8.24.180. No person shall wilfully fail, neglect or refuse, after demand by the contract or franchise agent (s), to pay the fees provided for herein. 8.25.035 Reduced Residential Curbside Recycling Collection Rates. The city council considers that recycling is a community responsibility critical to effective waste management and overall environmental sensitivity, and that a residential curbside recycling program meets the established city policy of designing recycling programs with attention to public convenience. The city council also finds and declares that senior citizens and low income households may be financially burdened households which have difficulties securing the basic necessities of life. Therefore, it is the intent that a method be provided which would result in a reduced collection charge for such citizens, thereby assisting the household and providing a participation incentive. This reduces rate shall apply to a senior citizen (62 years and over) or a low income household which meets the total annual gross income criteria used by the city for determining reduced sewer service charges. Senior citizens who apply for reduced residential refuse collection charges and self-regulate their own trash collection costs through the City's single bag or container program. Occupants of premises subject to a curbside recycling charge may request a reduction due to low income by filing a completed city application form at any time. Upon certification of eligibility by the director of finance, the sanitary service will be notified to reduce the 21 )~8- ~ 14. recycling charge in time for the next regularly scheduled billing cycle. 8.25.040 Separation of Containers. Recyclable Materials, Storage, and A. The owner, operator, and/or occupant of any premise, business establishment, industry, or other property, vacant or occupied, shall be rebuttably presumed to be the generators of, and be responsible for, the safe and sanitary storage of all solid waste, designated recyclables, and compost accumulated on the property. The designated recyclables and compost shall be stored separately from refuse. The property owner, operator, or occupant shall store such solid waste, designated recyclables, and compost on the premises or property in such a manner so as not to constitute a fire, health, or safety hazard, and shall require it to be handled in such a manner so as not to promote the propagation, harborage, or attraction of vectors, or the creation of litter or other nuisances. B. A container or containers for designated recyclables shall be provided by the contract or franchise agent(s) for any premises generating residential or commercial recyclables, for the exterior collection of designated recyclables. Containers for industrial recyclables shall be provided by the generator of the designated recyclables, unless otherwise arranged through the city manager. The containers shall effectively segregate the designated recyclables from refuse. C. All such containers to be used in the ci ty' s recycl ing programs shall be approved by the city manager, in conjunction with the contract or franchise agent(s) (or, in the case of Industrial Recyclables, the generators of the industrial recyclables) . D. Designated recyclables shall be sorted according to type and/or as established by program guidelines and placed in separate containers, containers with segregated compartments, or commingled (in one recycling container), as agreed upon by the city manager and the contract or franchise agent (s) . containers, if more than one, shall be grouped together and placed for collection at the same time as when regular refuse collection occurs or at designated recycling collection times (if different from refuse collection) and at designated recycling collection locations. E. All containers used for recycling purposes, storage or collection, including commercial and industrial recycling containers used in city recycling programs as well as all other containers used for recycling purposes whether owned or operated by a commercial entity, nonprofit organization, or any other persons or entity shall be identified with the name and current telephone number of the owner or the responsible 22 JI,I} - 4i'v agency or person. Commercial recycling containers shall remain locked at all times in order to discourage scavenging and prevent dumping of refuse in the container, unless exempted by the city manager in conjunction with the contract or franchise agent(s). F. Containers which do not comply with the requirements of this section shall be presumed to be refuse and taken by the contract or franchise agent(s) for disposal or potential use as salvaging or recycling containers. G. It shall be unlawful for any person to dispose, dump, or otherwise place material other than designated recyclables, in a designated recycling container or at a designated recycling collection or storage location. H. Exemption. Designated recyclables which are source sorted by their generator for the purpose of recycling by selling them to a Buy-back Center or donating them to a city licensed nonprofit or community group conducting recycling programs for the purpose of raising funds do not have to be placed in the designated recycling container required by this section, nor placed in a designated recycling collection location in accordance with this Section. When designated recyclables are received by a city licensed nonprofit or community group conducting recycling programs for the purpose of raising funds they shall be stored and sorted in accordance with this section and transported to a Buy-back Center for the purpose of recycling. 8.25.050 Mandatory Recycling. It shall be mandatory for all generators of residential, commercial, and industrial recyclables in the city to separate from refuse, for recycling purposes, all Designated Recyclables and otherwise participate in recycling as described by this chapter. 8.25.060 Recycling Programs. A. The city manager shall establish and promulgate reasonable regulations, guidelines and other program related specifics as to the implementation of recycling programs for residential, commercial, and industrial recycling, including the method for collection of designated recyclables. B. Commercial and industrial establishments shall develop their respective "in-house" recycling plans that provide for the collection of designated recyclables in conjunction with the city's established recycling programs. The city and the contract or franchise agent(s) shall assist in program development, provide technical expertise, and training materials. 23 1'f}-~3tJ C. Collection of recyclables from single-family residential units shall minimally occur once weekly. For commercial and industrial entities, collection shall be provided as needed to meet demand. D. The city encourages use of Buy-back Centers, Donation Centers (for used furniture and other reusable bulky items, and nonprofit agents), scrap dealers, home and commercial composting, source reduction, and other creative, lawful and environmentally sound efforts to reduce waste in accordance with this chapter that do not conflict with any established or planned city sponsored recycling, composting or source reduction programs. 8.25.070 Reports. All commercial and industrial establishments shall submit recycling tonnage documentation on an annual basis to the city's conservation coordinator, due on or before January 31, for the previous year. Annual reporting shall be on the form promulgated by the city manager, and commence on the first anniversary of the date set forth in the mandatory recycling implementation schedule as established in this chapter. Voluntary reporting prior to the required mandatory recycling is encouraged. 8.25.080 Scavenging. A. It shall be unlawful for any person other than authorized city personnel or contract or franchise agent (s) to remove any separated designated recyclable(s) or salvageable commodity from any designated recycling collection or storage location, or designated recycling container. However, the original generator of the designated recyclables, may for any reason, remove the designated recyclables placed by said generator from the designated recycling container or designated recycling collection or storage location in which said generator had originally placed them. B. It shall be unlawful for any person to disturb, modify, harm, or otherwise tamper with any container or designated recycling collection or storage location containing designated recyclables, or the contents thereof, or to remove any such container from the location where the same was placed by the generator thereof, or to remove the contents of any such container, unless authorized by the generator of such designated recyclables or a duly authorized city personnel or contract or franchise agent(s). 8.25.090 Composting. A. Every establisher of a composting pile, bin, holding area or other such composting system shall first obtain a permit from the city, if the total volume used within the boundaries of the premises for composting is 15 cubic yards or greater. 24 J"~-~~ B. Every composting pile, bin, holding area or other such composting system shall be maintained so as to not create a public or private nuisance through visual, odor, safety and/or other means, or as prescribed in Chapter 19.66 of the Chula Vista Municipal Code. Without constituting a limitation on the foregoing, no such composting pile, bin, holding area or other such composting system shall be maintained within six (6) feet from an exterior window, exterior door or other exterior entrance to an inhabited residential structure other than one owned by the owner of such composting system. C. The owner, operator, or occupier of property containing a composting pile, bin, holding area or other such composting system that is greater than 5 feet high, 5 feet wide and 5 feet in length shall weekly monitor temperature, through utilization of a thermometer designed for such purposes. D. No single compost pile, bin, holding area or other such composting system on a Residential Single-Family (as defined in Ordinance No. 2443) premises shall be more than 5 feet in height and/or greater than 6 feet in width or length. 8.25.100 Enforcement. A. The city manager or designee is responsible for enforcing the provisions of this chapter. B. Types of materials included in designated recyclables may be administratively deleted by the city manager under emergency conditions (to include market failures), subject to formal ordinance amendment approved by the city council, if such conditions persist. C. Nothing in this ordinance or its implementing regulations shall prevent the city or its contract or franchise agent(s) from efforts to obtain voluntary compliance by way of warning, notice of violation, educational or other means. 8.25.110 Severability. If any provision, clause, sentence or paragraph of this chapter or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions or application of the provisions of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are hereby declared to be severable. SECTION IV: This ordinance shall become effective thirty days after its final passage unless suspended by a referendum petition filed as provided by law. 25 XtA-Ai-~ SECTION V: The city clerk shall cause this ordinance to be published once within fifteen (15) days after its passage in a newspaper of general circulation published and circulated in said city. Presented by Approved as to form by h:\home\attorney\chap823.grg . Michael Meacham, Conservation Coordinator 'l'ttorney j 26 1'11- ~t' J J,;f "~xI) ,/ _P J \ \~, J. 1)f' ~/j \ \ l( / 01 cleo h ~ ~ PI {~ f\ consider the adoption of this Franchise and set a public for such purpose for August 4, 1998 at 6:00 p.m.; and WHEREAS, on August 4, 1998, a duly noticed public was held on this Franchise, and all public testimony was reviewed and considered by the City Council, including the City Manager's recommendation to approve the Franchise; and NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain as follows: SECTION I: Pacific's performance under the Original Franchise is hereby deemed satisfactory for purposes of renewing such franchise pursuant to the terms and conditions of the new Franchise presented by City staff. Any and all protests or objections presented to the granting of the Franchise are hereby overruled. SECTION II: Upon Pacific's written acceptance thereof, the City Council of the City of Chula Vista does hereby grant a Waste Management Franchise Renewal to Pacific Waste Services through September 4, 2002 in accordance with the terms and conditions of the Franchise Agreement, a copy of which is on file in the office of the City Clerk as Document No. C ()q~..... JIL '3- SECTION III: The Mayor of the City of Chula Vista is hereby authorized to execute the Franchise Agreement on behalf of the City of Chula Vista in substantially the form presented, with such minor, non-substantive, modifications as may be approved or required by the City Attorney. SECTION IV: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. SECTION a summary of this circulated in the V: The City Clerk is hereby directed to publish ordinance in a newspaper of general circulation City of Chula Vista. Presented by Approved as to form by , Michael Meacham, Conservation Coordinator H:\home\lorraine\cdrive\or\trash.frn 2 I~A-3c;) SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT This SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT ("Franchise") is entered into effective as of September 4, 1997 by and between the City OF CHULA VISTA, a chartered municipal corporation of the State of California ("City") and ALLIED WASTE INDUSTRIES, a Delaware corporation, dba PACIFIC WASTE SERVICES ("Pacific"), with reference to the following facts: A. City is a chartered city within the meaning of California Constitution Article 11, Sections 3 and 5 and has reserved its powers pursuant to California Public Resources Code Section 40000 et seq. to grant an exclusive solid waste and recyclable franchise. B. In 1982, pursuant to Article XII of the City Charter and Chapter 8.24 of the Chula Vista Municipal Code, City granted a solid waste disposal franchise ("Original Franchise") to Chula Vista Sanitary Service (" CVSS") . C. Since 1982, the Original Franchise has been amended as follows: (1) Ordinance No. 2104, adopted February 28, 1985: (2) Ordinance No. 2332, adopted September 12, 1989; (3) Ordinance No. 2427, adopted December 4, 1990; (4) Ordinance No., 2429, adopted December 11, 1990; (5) Ordinance No. 2475, adopted September 3, 1991; (6) Ordinance No. 2562, adopted July 20 1993; and (7) Ordinance No. 2569, adopted September 21, 1993. D. On May 12, 1987, pursuant to City Council Resolution No. 13019, City approved an assignment of the Original Franchise to Laidlaw Waste Systems, Inc. ("Laidlaw"). E. On June 17, 1997, pursuant to City Council Resolution No. 18705, City conditionally approved Laidlaw's assignment of the Original Franchise, as amended, to Pacific. One of the conditions of approval was that Pacific enter into negotiations with City staff regarding various City issues with the franchise prior to September, 1997 when the City was scheduled to consider Pacific's request for a five year renewal. F. On August 26, 1997, pursuant to City Council Resolution No. 18763, City approved a month to month extension of the Original Franchise pending further City review and consideration of Pacific's requested five year renewal. G. On July 14, 1998, pursuant to City Council Resolution No. 19074, City approved a resolution of intention to consider the adoption of this Franchise and set a public for such purpose for August 4, 1998 at 6:00 p.m.. on H. this On August Franchise, 4, 1998, a duly noticed public hearing was held and all public testimony was review~ OaqS" I:JZ I' ~-!I D()11/ considered by the City Council. I. On August 11, 1998, pursuant to its adoption of Ordinance No. 2741, ("City Adoption Date") and Pacific's written acceptance thereof, the City granted, and Pacific accepted this Franchise on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, City and Pacific hereby agree as follows: 1. Definitions. Whenever in this Agreement the words or phrases hereinafter in this section defined are used, either with initial caps or small case lettering, they shall have the respective meaning assigned to them in the following definitions (unless in the given instance, the context wherein they are used shall clearly indicate a different meaning) : 1.1 "Affiliate" means any parent or subsidiary corporation, partnership or other entity, or any fellow member of an association, joint venture or similar arrangement for the provision of solid waste disposal or recycling services in which Pacific holds a direct or indirect interest. 1.2 "Aluminum" means recoverable materials made from aluminum such as used aluminum food or beverage containers, aluminum foil, siding, screening, and other items manufactured from aluminum. 1.3 "Bin" shall mean those plastic or metal containers of one cubic yard (202 gallons) to eight cubic yards that have plastic lids on the top (unless metal lids are designated by the City Manager). Bins are used for weekly or more frequent collection of waste, yard waste or designated recyclables by the City or its Franchise agent. 1.4 "Bulky Waste" means discarded items whose large size or shape precludes or complicates their handling by standard residential or commercial solid waste, recycling and green waste collection methods. Bulky items include white goods, furniture, large auto parts, trees, stumps, carpet and other potentially oversize wastes. Bulky waste does not include hazardous or infectious waste unless specifically exempt such as Freon containing refrigerators. 1.5 "Buy-back Center" means a facility licensed and permitted by the Department of Conservation and/or local jurisdiction which pays a fee for the delivery transfer of ownership to the facility of source separated materials for the purpose of recycling or composting. 2 If tJ-$A 1.6 "Cardboard" means post-consumer waste paper grade corrugated cardboard (grade #11), kraft (brown) paper bags, or solid fiber boxes which have served their packaging purposes and are discarded and can later be reclaimed for collection and recovery for recycling. 1.7 "Carts" shall mean those plastic containers with a capacity of less than 202 gallons (one cubic yard). Carts shall have a fixed lid and are designed for automated and/or semi-automated collection of solid waste, yard waste and/or designated recyclables by the City or its Franchise agent. 1.8 "City" shall mean the City of Chula Vista, corporation of the State of California in incorporated form or in any later reorganized, enlarged or reincorporated form. a municipal its present consolidated, 1.9 "Collection" means the act of removing and conveying non- hazardous and non-infectious solid waste, commingled or source separated materials, from residential, commercial, industrial, or institutional (governmental) generators, to a facility for processing, composting, transfer, disposal or transformation. 1.10 "Commercial" means a site and/or business zoned or permitted for any use other than residential including but not limited to commercial, light industrial, industrial and agricultural. Commercial generators that generated three (3) or more cubic yards of waste per week are serviced by a bin or compactor collection vehicle. 1.11 "Commercial Recyclables" means Designated recyclable materials from the two commercial subcategories of office and hospitality. Materials include, but are not limited to: office paper, cardboard, newspaper, and aluminum from offices; and cardboard, glass bottles and jars, plastic bottles, aluminum, tin and bi-metal cans, and white goods from hospitality establishments. 1.11 "Compactor containers" means those fully enclosed metal containers of ten to forty cubic yards provided by the City's hauler or customer. Compactors typically serve very large generators. 1.13 "Contract or Franchise agent(s)" means any person, private or public entity designated by the City council pursuant to Article XII of the City charter and Chula Vista Municipal Code, Chapter 8.23, as being responsible for administering, the collection, processing and/or disposal of solid waste or Designated Recyclables. 1.14 "Recycling Box" shall mean those containers with a capacity of 18 gallon to 32 gallons which are supplied by the City or its 3 Ji, R - ~ Franchise agent recyclables. for manual collection of designated 1.15 "Curbside collection" means the service of removing and conveying of non-hazardous and non-infectious solid waste, source separated recyclables and/or green waste from the public thoroughfare at the curb or alley. (The City shall make the final determination regarding eligibility for curbside collection which shall generally apply to small quantity generators. ) 1.16 "Designated containers" ("Containers") shall mean those containers designated by the City Manager for temporary storage and collection of waste or designated recyclables including but not limited to "Curbside bins, Carts, Bins, Roll-off Boxes, and or Compactor Containers. 1.17 "Designated solid waste and recycling collection or storage location" means a place designated by the City Manager for storage and/or collection of waste, green waste and/or recyclables pursuant to Section 8.24.100 of the Chula Vista Municipal Code. Designated locations include, but are not limited to, the curb, alley, waste/recycling enclosure, a loading dock, or basement of a commercial enterprise or multi- family complex where waste and recyclables are placed for collection or temporary storage prior to collection by the City's Franchise agent. 1.18 "Franchised Recyclables" means any residential, commercial or industrial Recyclables, as defined herein, and by Municipal Code Chapter 8.25, placed in designated recycling containers or at designated recycling collection or storage location(s) to be collected by Pacific. 1.19 "Garbage" means all non-hazardous, non- infectious organic waste including: kitchen and table waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking, or handling of food stuffs, except organic wastes separated therefrom and used in composting in accordance with Chula Vista Municipal Code Chapter 8.25, Section 8.35.090. 1.20 "Generator" means every owner, tenant, occupant or person owning or having the care and control of any premises in the City including the temporary use of parks, open space or a public thoroughfare. 1.21 "Glass bottles and jars" means food and beverage containers made from silica or sand, soda ash and limestone, the product being transparent or translucent and being used for packaging or bottling, including container glass designated redeemable under the California Beverage Container Recycling and Litter 4 J~fI-3i Reduction Law, Division 12.1 (commencing with Section 14500) of the California Public Resources Code, as well as glass jars and bottles without redeemable value ("scrap"), but excluding household, kitchen, and other sources of non-container glass such as drinking glasses, ceramics, light bulbs, window pane glass, and similar glass products that are not bottles or jars. 1.22 "Grantee" shall mean the City's Franchise agent(s) including Pacific Waste Systems, Inc. and its lawful successors or assigns as outlined in Section 8.24.110. 1.23 "Green wastes" means the leaves, grass, weeds, shrubs, tree branches, tree trunk and other wood materials from trees. Green waste may also include pre-consumer food waste, incidental amounts of waxed or plastic coated corrugated cardboard, unpainted and untreated lumber. Green waste does not include, tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated lumber, plywood, particle board or other manufactured products that contain glue, formaldehyde, non-organic or non- biodegradable materials. 1.24 "Green Waste Processing" means the accumulation and storage of green waste in a manner that leads to the intentional or un- intentional thermophilic decomposition of green waste. The acceptance of payment for green waste, the accumulation of more than 15 yards or three (3) tons per year of unprocessed, shredded, ground or composted material shall constitute green waste processing and is subject to the City, County and State requirements regulating compost and/or solid waste facilities (site codes). Residential, commercial and agricultural sites that generate, stockpile or process green waste material generated on site and used on-site without sale of finished or unfinished material that are otherwise compliant with all conditions of the municipal code for nuisance may apply for an annual exemption. 1.25 "Gross receipts" shall mean all gross operating revenues received by Pacific for solid waste, recycling, composting and related services provided to any and all generators within Chula Vista City limits under this Franchise excluding any City imposed fees. 1.26 "Hazardous or Toxic Waste" means any waste material or mixture of wastes which is toxic, corrosive, flammable, explosive, an irritant, a strong sensitizer, which generates pressure through decomposition, heat or other means, if such a waste or mixture of wastes may cause substantial personal injury, serious illness or harm to humans, domestic animals, or wildlife, during, or as an approximate result of any disposal of such wastes or mixtures of wastes as defined in Section 5 I' ~ - 36 25117 of the California Health and Safety Code which is not legally disposable at a Class III Landfill. 1.27 "Hospitality" means any establishment that offers dining services, food or beverage sales. This includes, taverns, bars, cafeterias, and restaurants, as well as, motels and hotels (temporary housing of less than one month duration), hospitals, schools, colleges, and other such establishments that have dining services, or a restaurant or bar on their premises. 1.28 "Industrial Recyclables" means recyclables from industrial, construction, and demolition operations, including, but not limited to, asphalt, concrete, dirt, land clearing brush, sand and rock. 1.29 "Industrial Solid Waste" means solid waste originating from mechanized manufacturing facilities, factories, refineries, construction and demolition projects, and/or publicly operated treatment works, excluding recyclables and compostables, if properly handled and treated excluding Hazardous or Toxic Waste. 1. 30 11 Inert" ceramics, mirrors. means materials such earthen cooking ware, as concrete, soil, asphalt, automotive safety glass, and 1.31 "Improper Disposal" means the discarding of any item or items upon public or private premises that where not generated on the premises as a part of its authorized use unless written consent of the property owner is first obtained. 1.32 "Improper Disposal Site" means any premises that have intentionally or unintentionally accumulated solid waste or recyclables and/or charged a fee for accepting material without a solid waste or composting permit from the County Local Enforcement Agency (site code). This does not include businesses licensed and permitted in the City to purchase source separated recyclables. 1.33 "Incidental Waste," less than one pound of waste deposited in a public litter bin or designated waste container to prevent litter. Such as waste from a fast food meal deposited in a designated waste container or public litter bin by a pedestrian or vehicle operator. 1.34 "Industrial" means any property or generator that is engaged in the manufacture of products including but not limited to construction and demolition. Industrial generators are typically serviced by roll-off box containers of 10-40 yard capaci ties and typically generate inert materials such as asphalt, concrete, building debris and some wood and dry green 6 J' Fl-3' waste. 1.35 "Institutional" shall mean any premise owned and/or occupied by local, state and federal agencies. Typically office or education facilities with a common waste stream. 1.36 "Landfill" means a disposal system by which solid waste is deposited in a specially prepared area which provides for environmental monitoring and treatment pursuant to the California Code or Regulations, California Public Resources Code and the Federal Resource Conservation and Recovery Act. 1.37 "Large Generator" means those residential, commercial industrial and institutional entities that generate more than 300 gallons of waste per week excluding source separated recyclables diverted from disposal or transformation. 1.38 "Mixed waste processing" means a system of recovering recyclables from the mixed waste stream through separation at a processing facility, transfer station, landfill, or other such facility instead of separation at the primary waste generation source. 1.39 "Multi-family" means a structure or structures containing a total of 4 or more dwelling units in any vertical or horizontal arrangement on a single lot or building site. 1.40 "Newspaper" means newsprint-grade paper including any inserts that come in the paper, and excluding soiled paper, all magazines, and other periodicals, telephone books, as well as all other paper products of any nature. 1.41 "Nuisance" means anything which is injurious to human health, or is indecent or offensive to the senses, and interferes with the comfortable enjoyment of life or property, and affects at the same time an entire community or neighborhood, or any number of persons, although the extent of annoyance or damage inflicted upon the individual may be unequal, and which occurs as a result of the storage, removal, transport, processing, or disposal of solid Waste, compost, and/or designated recyclables. 1.42 "Plastic bottle" means a plastic container with narrow neck or mouth opening smaller than the diameter of the container body, used for containing milk, juice, soft drinks, water, detergent, shampoo or other such substances intended for household or hospitality use; to distinguish from non-bottle containers (e.g., deli or margarine tub containers) and from non-household plastic bottles such as those for containing motor oil, solvents, and other non-household substances. 1.43 "Pollution" means the condition caused by the presence in or 7 }~1J-3? on a body of water, soil, or air of any solid waste or substance or derived therefrom in such quantity, or such nature and duration, or under such condition that the quality, appearance, or usefulness of the water, soil, land, or air is significantly degraded or adversely altered. 1.44 "Processing" means the reduction, separation, recovery, conversion, or recycling of any component(s) of solid waste. 1.45 "putrescible Wastes" means the waste in organic material with the potential decomposition capacity to emit noticeable quantities of odor and gas by-products. Material in this category includes, but is not limited to kitchen waste, dead animals, food from containers, etc., except organic wastes separated therefrom and used in composting. 1.46 "Recyclables" means any materials that are recyclable, reclaimable, and/or reusable within the following generating categories: small generator an large generator. Any material having an economic value on the secondary materials market or that is otherwise salvageable shall be included and/or other materials that have been separated from other small or large generators for the purposes of being recycled for resale and/or reuse, and placed at a designated recycling or waste collection or storage location or in a designated recycling or waste container for the purpose of collection and processing, or any such designated recyclables materials collected under a mixed waste processing program. 1.47 "Recycling" shall mean any process by which materials which would otherwise be discarded, deposited in a landfill or transformation facility and become Solid Waste are collected (source separated, commingled, or as "mixed waste"), separated and/or processed and returned to the economic mainstream in the form of raw materials or products or materials which are otherwise salvaged or recovered for reuse. 1.48 "Refuse" means garbage and rubbish. 1.49 "Removal" means the act of taking solid wastes or designated recyclables from the place of generation either by the contract or Franchise agent(s), or by a person in control of the premises. 1.50 "Removal frequency" means frequency of removal of solid wastes or recyclables from the place of generation. 1. 51 "Residential" for purposes of this building or portion thereof designed the residence or sleeping place of including single and multiple family hotels, boarding and lodging houses. Franchise, means any or used exclusively as one or more persons, dwellings, apartment- Residential does not 8 I~ 1.J ...3't include short-term residential uses, such as cabins, or hostels which are regulated establishments. motels, tourist as hospitality 1.52 "Roll-Off Service" means service provided for the collection, removal and disposal of industrial waste such as construction, demolition and other primarily inert non-putrescible wastes and green wastes. Roll-off Service is usually provided using metal containers of ten to forty cubic yards that are open on the top with doors on one end. 1.53 "Rubbish" means non-putrescible solid wastes such as ashes, paper, glass, bedding, crockery, plastics, rubber by-products or litter. Such materials that are designated as recyclable or compost may be exempt from categorizing as rubbish provided such materials are handled, processed and maintained in a properly regulated manner. 1. 54 "Salvaging or salvageable" means the authorized storage and removal of solid recyclables or recoverable materials. controlled and/or waste, designated 1.55 "Scavenging" means the uncontrolled and/or unauthorized removal of solid waste, designated recyclables or recoverable materials. Such activity is unlawful and is a misdemeanor punishable by up to six months in jail and $1,000 in civil penalties under section 8.24.200, 8.25.080 of the Chula Vista Municipal Code and Chapter 9 Section 41950 of the California Integrated Waste Management Act of 1989. 1.56 "To segregate waste material" means any of the following: the placement of designated recyclables in separate containers; the binding or bagging of designated recyclables separately from other waste material and placing in a separate container from refuse, or the same container as refuse; the physical separation of designated recyclables from other waste material (either at the generating source, solid waste transfer station, or processing facility) . 1.57 "Small Generator" means those residential, commercial industrial and institutional entities that generate less than 300 gallons of waste per week excluding source separated recyclables diverted from disposal or transformation. 1.58 "Solid Waste" means all putrescible and non-putrescible solid, semi-solid and liquid wastes, such as refuse, garbage, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and industrial appliances, manure, vegetable or animal solid and semi-solid wastes, and includes liquid wastes disposed of in conjunction with solid wastes at solid waste transfer/processing stations or disposal sites, which are 9 Jlt 11 - 31 generated by Residential, Commercial or Industrial sites within the City. Solid waste shall not include: hazardous and infectious waste, sewage collected and treated in a municipal or regional sewage system or materials or substances having commercial value or other importance which can be salvaged for reuse, recycling, composting or resale. 1.59 "State" shall mean the State of California. 1.60 "Storage" means the interim containment of solid wastes, yard wastes, or recyclables in an approved manner after generation and prior to disposal, collection or processing. (Interim means for one week or less, roll-off containers may store non- putrescible waste for up to thirty days.) 1.61 "Streets and Byways" 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. 1.62 "Tin and bi-metal cans" means any steel food and beverage containers with a tin or aluminum plating. 1.63 "Transfer or processing station" means those facilities utilized to receive solid wastes and to temporarily store, separate, convert, or otherwise process the solid waste and/or recyclables. 1.64 "Unit" means an individual residence residential multi-family complex. contained in a 1.65 "White goods" means kitchen or other large enameled appliances which includes, but is not limited to, refrigerators, washers, and dryers. 1.66 "Wood Waste" means lumber and wood products but excludes tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated wood, plywood, particle board or other manufactured products that contain glue, formaldehyde, non-organic or non-biodegradable materials. 1.67 "Vector" means any nuisance such as odor, unsightliness sound or, a carrier, usually insects or rodents, that is capable of transmitting a disease. 1.68 "Yard waste" means the leaves, grass, weeds, and wood materials from trees and shrubs from the single family and multi-family residential sources of the City's Green waste (to include landscape haulings from residential sources). Acceptable materials for collection include all yard waste as herein defined, excluding palm fronds, treated or processed 10 Y,9- '!lJ wood or lumber, bulky waste or any other materials as shall be determined by the City as to not be salvageable. All acceptable yard waste shall be void of nails, wire, rocks, dirt or any other material that is not considered yard waste. 2. Grant of Franchise. 2.1. In General. City hereby grants to Pacific, subject to the terms and conditions set forth herein, an exclusive Franchise ("Franchise") to collect and dispose of, for a fee, Solid Waste and Franchised Recyclables from residential, commercial and industrial sites within the City, in the manner and on the terms specified herein, and to use for such purposes the City Streets and Byways. This Franchise is granted pursuant to the authority and subject to the terms and conditions contained in Article XII, Sections 1200 through 1206 of the City Charter, and Chapter 8.23 of the Chula Vista Municipal Code. This Franchise is granted upon each and every condition herein contained, and shall be strictly construed against Pacific. Nothing shall pass by the Franchise granted hereby to Pacific 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. 2.2 Exclusive Nature of Franchise. 2.2.1 During the Term of this Franchise, except as hereinafter otherwise provided, or except as may otherwise be required by federal or state law, the rights granted to Pacific under this Franchise shall be exclusive to Pacific, and City will not let any contract to, or enter into any contract with, any other person, firm, or corporation for the performance of the services herein required to be performed by Pacific. City shall protect Pacific's rights to such exclusive contract by proper ordinances, and by reasonable enforcement thereof. 2.2.2 Such exclusive rights shall not extend to Solid Waste or Recycling Services which cannot be exclusively franchised under federal or state law. In addition, this grant of exclusive Franchise is not intended and does not preclude duly licensed City based non-profit organizations and community groups from conducting recycling programs for the purpose of raising funds, nor does it preclude a person from selling or otherwise disposing of their own recyclables at a buy-back center or from donating their own recyclables, so long as said collection(s), donation(s) or sale(s) do not occur at Designated recycling collection or storage location(s) . Pacific and City hereby expressly exclude from Pacific's exclusive rights hereunder the picking up, gathering, and removal of refuse pursuant to a competitively bid contracts between state agencies or local districts and a City authorized City trash franchisee. 11 J'f1-JfI 3. Term. The Franchise term ("Term") shall commence on September 4, 1997 and shall terminate on September 4, 2002, unless earlier terminated in accordance with the provisions hereof. 4. Consideration. 4.1 Franchise Fee. 4.1.1 In consideration of City's Grant of the Franchise, Pacific shall pay to the City eight percent (8%) of Pacific's Gross Receipts ("Franchise Fee"). City shall have the right to decrease the Franchise Fee at any time by resolution of the City Council. City shall also have the right to increase the Franchise Fee by resolution of the City Council up to a maximum amount of ten percent (10%). No increase or increases shall exceed one-half percent (1/2%) within any twelve (12) month period. City agrees to notify Pacific at least 45 days prior to the effective date of any proposed Franchise Fee increase. Ci ty agrees to coordinate, whenever possible, the concurrent imposition of any pending Franchise Fee, or regulatory fee increases with any pending service rate increases by Pacific. It is understood that any increase in the Franchise Fee by the City shall be cause for the Pacific to increase charges in order to immediately "pass through" the cost of the Franchise Fee to Ratepayers. 4.1.2 Pacific shall file with the director of finance of City on a monthly basis, a duly verified statement showing in detail the total Gross Receipts of Pacific during the preceding month or fractional month from the collection and disposal of Solid Waste and Franchised Recyclables within the City. Pacific shall pay to City within fifteen (15) days after the time of filing of such statement, in lawful money of the United States, the aforesaid percentage of its total Gross Receipts for such month, or such fractional month, covered by such statement, plus any and all City imposed fees collected by Pacific pursuant to Section 6.2.17 hereof. 4.1.3 The acceptance by City of payments of the Franchise Fee shall be without prejudice to City's right to an examination of Pacific's books and records maintained with respect to the calculation thereof in order to verify the amount of Pacific's Gross Receipts. At any reasonable time within three years after receipt of any statement furnished it by Pacific as provided in Section 4.1.2, above, and upon fifteen (15) days prior written notice to Pacific, City may cause a special audit to be made of Pacific's books and records relating to the calculation of the City's Franchise Fee for the period covered by the statement. Such audit shall be conducted during regular business hours and otherwise in such a manner as to avoid disruption of Pacific's 12 /191/-11'/11 operations. Except as provided below, the cost of such audit shall be borne by City. If it shall be determined that there has been an error in the payment of the Franchise Fee, then a reconciling payment or credit shall be made. If it is determined that the error exceeded three percent (3%) of the amount owed for the period covered by the audit, and such error is to the disadvantage of City, then Pacific shall also reimburse City for the cost of the audit. 4.2 Free Disposal for City Business. Commencing as of July 1, 1998 and for the remainder of the Term, City crews and City contractors (with specific written City approval) on City business shall not be charged tipping fees for Solid Waste delivered by City or its agent to the Otay Landfill. Notwithstanding the foregoing, tipping fees may be charged to the City under this Section if the tonnage deposited in the Otay Landfill in anyone calender year exceeds ten percent (10%) of the total tonnage of Solid Waste deposited in the Otay Landfill from all City generators in that same twelve month period; such tipping fees may be assessed only with respect to the tonnage exceeding this 10% figure. Under all circumstances, City crews or their subcontractors shall be allowed to take clean yard waste to ORW at no charge, or another such operator selected by City. 4.3 City Desiqnation as "State Curbside Operator". As of the effective date of the Franchise, Pacific will redesignate the City as "State Curbside Operator" with the Department of Conservation, Division of Recycling, for the purposes of all California Redemption Value ("CRV") materials collected in Chula Vista by Pacific within 30 days of the effective date of the Agreement and deliver annual CRV bonus payments (pursuant to PRC 214549.6(a)), and all revenue from new advanced disposal fees or incentive fees developed in the future, excluding only the current 2.5 cents per 24 ounce and under and 5 cents per 32 ounce and over carbonated non-juice beverage containers listed as CRV. City shall be entitled to the CRV bonus payment payable in 1998 ($24,449.50), and to all future CRV bonus payments which accrue during the Term. Funds accrued to the City under this section shall be used to support recycling public education, printing, promotion and incentive programs. Pacific shall not materially charge its collection or processing methods or subcontracts in such a way as to adversely affect CRV amounts to be paid to the City without City's prior written approval. 5. Compliance with Laws and Directives. 5.1 State of bound by thereto, Pacific shall comply with all laws and regulations of the California and the City. Further Pacific agrees to be all provisions of the Municipal Code, or any amendments or other ordinances that might affect the collection or 13 }'19-"~ disposal of Solid Waste or Franchised Recyclables in the City. It is understood that the Municipal Code is intended to set minimum standards and that higher standards and regulations may be required under this Franchise. Pacific agrees to cooperate with City in reaching a modification to this Franchise to the extent required by law at anytime it should be deemed necessary in the future. 5.2 In addition, at all times during the Term of this Franchise Pacific shall perform its obligations hereunder to the satisfaction of the City Manager (or a delegate thereof) who shall have the right, consistent with the terms and conditions of this Franchise, to issue orders, directions and instructions to Pacific from time to time with respect to the collection, transportation, and removal of Solid Waste and Franchised Recyclables, the performance of Pacific's services hereunder, and the Pacific's compliance with the provisions of the ordinances of the City of Chula Vista as they now exist or may from time to time be amended, and Pacific agrees to comply therewith. 6. Services to be Provided. 6.1 In General. Pacific undertakes and agrees, for the consideration set forth herein, to collect, pick up, remove and dispose of, all Solid Waste and Franchised Recyclables which are generated or accumulated by or upon all property located within the jurisdictional boundaries of the City during the Term of this Franchise, except as herein otherwise provided, subject to and in accordance with the terms and provisions hereof. Pacific shall furnish all labor, equipment, and vehicles (including adequate standby equipment and vehicles capacity to provide the service herein required in the event of a breakdown), and all insurance and bonds necessary to insure the efficient and timely performance of such obligation. All Solid Waste and Franchised Recyclables collected by Pacific shall become the property of Pacific immediately upon the collection thereof, and shall be forthwith removed and transported by Pacific to an approved place of disposal, or sale, as appropriate, which shall be provided, arranged for or furnished by Pacific in accordance with the terms of this Franchise. The collection and removal of Solid Waste and Franchised Recyclables shall be done in a prompt, thorough, lawful and workmanlike manner. 6.2 Operational Plan. The collection, removal and disposal of said Solid Waste and Franchised Recyclables by Pacific shall be done in accordance with an operational plan approved by the City Manager ("Operational Plan") . The Operational Plan shall describe the routes to be established and shall contain details regarding servicing schedule, the equipment to be used, and alternate procedures to be followed in the event of severe weather or equipment failures. The 14 J4A - f3 Operational Plan may be amended at any time by mutual agreement of the parties. In addition, the City reserves the right to require reasonable modifications to the Operational Plan if at any time during the Term of this Franchise City determines that the public interest requires a collection program differing from that which Pacific has established, or that technological or other changes materially affect the necessity of or level of the services provided for hereunder. The Operational Plan shall include, at a minimum, the programs, terms and conditions contained in this Section and in Section 8 hereof, below. Additional performance standards are contained in Exhibit H attached hereto. 6.2.1 Collection Times and FreQuencv. At least one regular weekly collection shall be provided to each residential, commercial and industrial location within the City. Pacific shall collect all Solid Waste on its first collection pass. Pacific shall not collect Solid Waste or Franchised Recyclables within a residential area between the hours of six p.m. and six a.m. Pacific shall complete all routes by 6:00 p.m. except in the event of emergency, hazardous weather conditions, natural disaster or other unforeseen circumstances beyond Pacific's control. With prior written permission of the City Manager, this time frame may be modified. 6.2.2 Holidavs. The following shall be considered legal holidays where collection services shall not be required for purposes of this Franchise: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Any other days must have prior written approval from the City. When a regularly scheduled residential collection falls on a legal holiday, the collection for that day and succeeding days of that week shall be rescheduled one day later. Holiday disruptions of commercial collections shall be handled in a manner mutually agreeable to the Pacific and individual customers. 6.2.3 Containers; Type and Location. Pacific shall provide bins as required for commercial and industrial customers or whenever other customers of Pacific request their use. Each bin shall be placed in an accessible, outside location according to individual agreements with each customer. Any new or replacement bins shall be fitted with plastic lids. Pacific shall color code all Solid Waste, Recycling and Yard Waste containers as soon as possible, but in no event later than 3 years after the effective date hereof, in a manner approved by City. At City's election, at the end of the Franchise Term (September 4, 2002) Pacific shall be required to transfer ownership to City and City shall accept all operable Solid Waste, Recycling and Yard Waste carts, bins or containers (excluding metal containers of one yard capacity or greater) in exchange for City's payment to Pacific of an amount equal to 20% of the original wholesale cost of all of such containers which are 5 years old or less. 15 J(, fI- JfIt 6.2.4 Public Place Containers. Pacific agrees to provide and maintain litter containers for the use of the general public for public areas such as plazas and rights-of-way other than parks and those publicly owned facilities maintained by the City as specifically designated by resolution of the City and to empty and dispose of the contents as necessary. Pacific shall provide standard litter bins, with covers and signage approved by City, at locations requested by City within 96 hours of City's request. Materials deposited in such bins shall be collected weekly or bi- weekly with residential or commercial waste. 6.2.5 Notice of Collection Schedule. Pacific shall prepare and furnish to all customers not less than four (4) days prior to the beginning of, or change in service, schedules setting forth the days on which the collections shall be made. Notice shall be in such form as is first approved by the City Manager or a designee thereof. 6.2.6 Local Operations and Manaqer. Pacific shall maintain its offices and service fleet at its current facility on Energy Way in the City, or at another appropriate location within the City. Pacific shall at all times during the term of this Franchise have the general market manager for the San Diego region, or the general operations manager for the San Diego region at its Chula Vista offices and charged with the responsibility for supervision of the Franchise operations and obligations of Pacific. 6.2.7 Construction Demolition Proqram. Pacific shall implement construction demolition recommendations attached hereto as Exhibit A and incorporated herein by this reference. 6.2.8 Sinqle Can Service for Seniors. Pacific shall convert the existing reduced price special bag service available to senior citizens to a reduced price single can program for senior citizens with scheduled billing comparable to standard residential curbside services within 180 days of City approval of the Franchise. 6.2.9 Missed pick-Ups. In case of a missed pick-up called in by a resident, Pacific shall, where possible, provide collection within 24 hours. If unable to accommodate due to inadequate notice, the resident shall be so notified and the materials shall be picked up on the next scheduled collection day. Information on missed pick-ups shall be logged by Pacific and shall be available to City upon request. 6.2.10 Special Events and Free Disposal Davs. Pacific shall cooperate with the City in carrying out special events to improve community appearance. Such cooperation shall include, but not be limited to, Pacific's provision of free solid waste and recycling containers and collection services for at least two to special public events sponsored by the city. Additional events may 16 1'11-1# be serviced at Pacific's discretion. Free services shall not be offered to special event organizers other than the City until such parties have submitted a plan to the City's Conservation Coordinator and received his or her approval thereof. Special events shall include, but not be limited to, Harbor Days, Chula Vista Expo, Arturio Barrios and Youth runs, Boni tafest, Lemon Festival, Christmas Parade, Community Clean-up days, and the semi- annual free disposal days. In addition, Pacific will provide two annual one-day collection events at a location and time approved by City where customers of Pacific within the City may dispose of Solid Waste at no additional charge. 6.2.11 Bulkv Waste. Pacific shall institute and carry out for the Term of the Franchise a free Bulky Waste pick up program for single family residential and a limited Bulky Waste pick-up program for multi-family residential generators in accordance with the terms and conditions set forth on Exhibit "B" attached hereto and incorporated herein by this reference. 6.2.12 Eauioment Soecifications and Maintenance. Initially, and throughout the Term, the average age of all regularly assigned collection vehicles must be not more than four (4) years, and all must be radio controlled. All truck bodies will be specifically designed and manufactured for mechanized refuse collection, completely enclosed, all-metal, watertight and capable of withstanding internal fires. Pacific shall clean and wash all trucks at least once each week and shall otherwise keep them clean, neat and in a sanitary condition at all times. All vehicles shall be field inspected by someone other than the driver on a regular basis, but not less than quarterly, for solid or liquid leakage. All leaks discovered shall be immediately repaired. Pacific shall paint its name and telephone number on the side of each truck and on all drop bodies and similar equipment in letters not smaller than four inches high or use a decal approved by the City council. Each vehicle shall at all times have in the cab, the registration of the truck, certificate of insurance card and an identification card with the name of whom to telephone in case of an accident. Each vehicle shall also be equipped with a five-pound fire extinguisher certified by the state fire marshal, as well as a two-way radio. All graffiti on equipment shall be promptly removed, by no later than 2 weeks after the earlier to occur of Pacific's discovery or City's notice to Pacific thereof. All of Pacific's equipment may be inspected at the discretion of the City Manager or any other appropriate agency at the point of operation at any time. 6.2.13 Soillaae. Pacific shall exercise all reasonable care and diligence in collecting Solid Waste and Franchised Recyc1ables so as to prevent spilling, scattering or dropping of Solid Waste or Franchised Recyclables, and shall immediately, at the time of known occurrence, or upon notification by the City, clean up any spillage. 17 Jf, 1J -1I f, 6.2.14 Disposal of Solid Waste. Pacific shall dispose of Solid Waste, at its expense, at a City authorized landfill or transfer station, in accordance with all federal, state and local laws and regulations. Pacific shall not change the location of final disposition or dispose of waste generated in the City by land application, incineration, waste to energy or any other form of transformation without first obtaining City approval. 6.2.15 Emplovees. Pacific guarantees a top quality service by industry standards; competent, qualified, sober and uniformed personnel who serve the public in a courteous, helpful and impartial manner. Subj ect to all applicable laws, and the provisions of collective bargaining agreements negotiated in good faith (a) the City may, at its option, require fingerprinting of Pacific's employees or agents whose service will cause them to enter onto or work in close proximity to private property; and (b) Pacific shall hire employees without regard to race, religion, color, national origin, sex, political affiliation, or any other non-merit factor. Any employee driving a vehicle shall at all times have in his possession a valid and appropriate vehicle operator's license issued by the state. Pacific and its employees and agents shall be required to wear clean clothing of a uniform type when engaged in refuse collection service on public streets. 6.2.16 Inauiries and Complaints. a. Telephones will be attended by competent personnel providing live customer response from 8:00 a.m. to 6:00 p.m. on regular work days, eight a.m. to twelve noon on Saturdays, and an answering service shall be provided after hours, weekends and holidays. b. Pacific shall have formal and auditable complaint procedure. Upon request, the City will be provided details of any complaints, including the resolution thereof. Pacific shall make a good faith effort to return such calls by noon the next business day. Pacific shall check with the City by fax or telephone at 3:30 p. m. each service day to obtain information regarding complaints or inquiries and shall resolve all collection issues by 6:00 p.m. the next business day. Pacific shall staff its phones such that the average wait time to reach a customer representative does not exceed 90 seconds for an standard calendar week and is otherwise not excessive. 6.2.17 Billina. Pacific will provide the billing and be totally responsible for the collection of payments, including City imposed fees for remittance to the City. Pacific shall include the City Quarterly and other City inserts in its billing statements. Pacific shall implement an account information fax/hotline for property owners and managers. Pacific shall place due dates on all invoices near the amount owed in a manner that provides clear notice. Residential customers shall not be billed more than three 18 J4 R -", months in advance. Service shutoff for nonpayment shall not be instituted before thirty days after initial billing and after sufficient notification. Commercial billing shall be monthly in arrears of service. 6.2.18 Public Information. Pacific shall annually update a brochure for all classes of new customers and distribute same to the new customers. City shall have one week advance notice to review and approve public information before distribution, including billing inserts and handouts. 6.2.19 Taqqinq and Penalties. Pacific shall "tag" and collect (as trash, if necessary) inappropriate disposal on its first pass, and shall provide City a monthly report of same. In the event that the City adopts a system for imposing penalties on generators which violate applicable Municipal Code provisions in substantially the form attached hereto as Exhibit "C", Pacific agrees to implement same. 6.2.20 Reports. Monthly, quarterly and annual reports shall be provided to the City Conservation Coordinator regarding Franchise operations. Monthly reports shall be provided on the 22nd day of each month for the prior month. Quarterly reports shall be provided on the 22nd day of the first month after each calendar year quarter for the prior quarter. Annual reports shall be provided by February 16 of the subsequent year. Unless otherwise agreed upon by the parties, the contents of the reports and their format shall be in substantially the form attached hereto as Exhibit "D". 6.2.21 Notice of Chanqes to Equipment. Pacific shall notify City prior to entering into any contract for the purchase of any vehicle, or to changing the color or signage on same, and shall meet and confer with City in order to determine the appropriateness of same. 6.2.22 Industrial Roll-Off Service. Industrial Roll-Off Services shall be fully mobilized by Pacific and available to Ratepayers within sixty days after the City Adoption Date of the Franchise ("Full Roll-Off Mobilization Date"). Unauthorized Roll- Off Service providers currently operating within the City shall not be subject to City enforcement measures until the earlier to occur of the Full Roll-Off Mobilization Date or the expiration date of any Roll-Off Service contract between an unauthorized provider and a Ratepayer existing as of the City Adoption date. 7. Rates for Collection and Other Services. 7.1 In General. In consideration of Pacific's provision of Solid Waste and Recycling services in accordance with the terms of this Franchise, Pacific shall be permitted to charge service fees to those City residents and businesses utilizing such services 19 }(, 1+ - 'If(' ("Ratepayers"); provided, however, in no event shall the service fees charged exceed the maximum rates established by City under this Section 7 ("Maximum Rates") . 7.2 Initial Collection Rates. The initial Maximum Rates charged by Pacific and paid by Ratepayers for Solid Waste and Recycling services provided by Pacific under this Franchise shall be those set forth on Exhibit "E" attached hereto and incorporated herein by this reference. The Maximum Rates set forth on Exhibit "E" shall remain in effect from the beginning of the Term until June 30, 1999. Thereafter, the Maximum Rates shall be subj ect to increase by Pacific in accordance with the terms of Section 7.3 hereof, below. 7.3 Pacific's Riqht to Increase Collection Rates. 7.3.1 Commencing on June 30, 1999, and upon each one year anniversary thereof for the remainder of the Term, the Maximum Rates (excluding any Franchise Fees or other "pass-throughs") shall increase by an amount not to exceed the product of the previous year's rate multiplied by fifty percent (50%) of the percentage increase in the San Diego area Consumer Price Index for All Urban Consumers (all items) published by the United States Department of Labor, Bureau of Labor Statistics for the latest twelve-month period for which statistics are available ("Applicable CPI Increase"). For example, assume that the Maximum Rate for Single Family Residential Service as of June 30, 1999 was $13.20 per month, and that the Applicable CPI Increase was two and seven- tenths percent (2.7%). For the twelve month period commencing on July 1, 1999, Pacific would have the right to charge a Single Family Residential Service rate of up to $13.36. In the event that the Consumer Price Index referred to above shall no longer be published, then another similar generally recognized index may be substituted upon approval by the City Manager. 7.3.2 Pacific's right to increase a service rate as provided above is contingent upon Pacific providing written notice of a proposed increase including proposed rates for all generator classes of fees to the City and all affected Ratepayers by no later than 45 days prior to the effective date of the proposed increase. At City's discretion, failure to comply with this notice requirement may by deemed to be a final decision by Pacific not to increase rates for the upcoming year. Notwithstanding the foregoing, if Pacific does not elect to increase a service rate in any year, or does elect to increase a service rates, but not up to the applicable Maximum Rate for such year, the applicable Maximum Rate for such year shall become the base Maximum Rate for purposes of determining the increased Maximum Rate for the ensuing year such that its unused capacity to increase rates in any given year shall be carried forward to subsequent years. If Pacific elects not to increase service rates up to the Maximum Rate for any given year, 20 )I, ~ -Iff' upon City's request, Pacific agrees to meet and confer with discuss the expected timing and amounts of possible imposition of service rate increases. City to future 7.3.3 Pacific agrees to coordinate, whenever possible, the concurrent imposition of any pending service rate increase with andy pending Franchise Fee or regulatory fee increases by City. 7.4 Senior and Other Preferred Rate Schedules. The City Council may, at anytime, establish a program for preferential rates for senior citizens or other classifications which are deemed to be in the public interest. Prior to adopting a preferential rate, City shall notify Pacific and provide Pacific an opportunity to appear before the City Council to express its view of any such proposed action. 7.5 Variable Rate Structure. Pacific agrees to discuss with the City the concept, design and implementation of a change in rate structure from a fixed rate to a rate structure which would vary based on the number and size of containers, or such other basis which the City believes would provide an incentive for waste reduction. 7.6 Most Favored Nation Rate. 7.6.1 Notwithstanding any provision in this Section to the contrary, in the event that, during the Term of this Franchise, Pacific, or any Affiliate thereof, agrees to a service rate or rates under a waste management Franchise within the County of San Diego which is/are lower than the service rate or rates then in effect for the corresponding service (s) within the City, then, Pacific shall immediately charge such lower service rate(s) to City Ratepayers. For purposes of comparing City service rates with those offered by Pacific, or an Affiliate thereof, in another Franchise within the County of San Diego, any locally imposed fees (e.g., local Franchise fees or surcharges) shall first be subtracted so as not to be a component of the service rate comparison. Pacific's obligations under this Section shall not apply to the commercial service rate currently, or in the future, provided to the City of Imperial Beach. 7.6.2 In the event that the lower service rate or rates that formed the basis for downward adjustments in the City service rates are subsequently increased in the other Franchised terri tories, Pacific shall have the right, after meeting and conferring with City to coordinate timing issues, to make a corresponding increase in the corresponding City rate(s); provided, however, in no event shall such increased rate exceed the maximum rate that would have been chargeable pursuant to the City's standard rate structure as set forth in Sections 7.1 and 7.2 21 JI, ff - (J:J hereof, calculated as if no initial downward adjustment in City rates had been made. 7.7 Miscellaneous Service Rates. The Maximum Rates charged by Pacific and paid by Ratepayers for the miscellaneous non-collection Solid Waste and Recycling services provided by Pacific under this Franchise ("Maximum Miscellaneous Service Rates") shall be those set forth on Exhibit ~ attached hereto and incorporated herein by this reference. These Maximum Miscellaneous Service Rates shall remain in effect without increase throughout the Term of the Franchise. 7.8 Commercial Rates for Cardboard/Mixed Paper. Effective as of September 1, 1998, corrugated cardboard and mixed paper service charges to commercial customers shall not exceed a maximum charge of $25 per month per pickup with respect to 3 to 8 yard bins. Adjustments for current customers will be handled by Pacific on a case by case basis. Pacific and City agrees to jointly promote the new rate to all future customers. 7.9 Pacific's Reserved Riqht to Request Increases Based on Extraordinarv Circumstances. Notwithstanding the foregoing, Pacific may submit a request to the City Council for additional rate relief at any time extraordinary expenses are incurred beyond Pacific's control. City Council reserves the right to approve or disapprove such a request in its sole discretion. 8. Recycling Services. 8.1 In General. Pacific agrees labor, services, materials and equipment multifamily and commercial recycling Recyclables on the terms and conditions to provide all necessary to implement residential, services for Franchised set forth below: 8.2 Collection. 8.2.1 Sinqle Familv Residential. Pacific shall collect and remove all Franchised Recyclables which are placed in a designated recycling container at the curbside on public streets, from all single-family residences. Pacific shall collect the Franchised recyclables once each week, regardless of weather conditions. Collection will be on the same day of the week as the regularly scheduled trash collection day. Pacific and City will mutually agree to any changes in collection day. Pacific will notify residents of any changes in the collection day by distributing a flyer no later than two weeks prior to the affected day. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated collection 22 16 fI-~( at the curb for the following materials: (a) news print (ONP) , (b) mixed residential paper (MRP) , (c) corrugated cardboard (OCC) , (d) rigid containers, including glass, tin, bi-metal, steel aluminum, and plastic No.1 and No.2 plastics. 8.2.2 Multi-Familv Residential. Pacific shall convert all current Multi-Family complexes of nine units or less to curbside recycling rates and services in accordance with the implementation schedule attached hereto as Exhibit "F". All future Multi-Family complexes of nine units or less shall be served through Curbside recycling. Mixed paper recycling services shall be provided to multi-family complexes of ten units or more in accordance with the implementation schedule attached hereto as Exhibit "F". Collection will be on regularly scheduled days as shall be arranged with the building property owner, manager or designated agent thereof. Pacific and City will mutually agree to any changes in collection schedule frequencies or removal frequency. Pacific will notify the building property owner, manager or, designated agent thereof, of any changes in collection day(s) by written notification no later than two weeks prior to the affected day. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated collection at the designated recyclirig area for multi- family complexes of 10 or more units for the following materials: (a) news print (ONP) , (b) mixed residential paper (MRP) , (c) corrugated cardboard (OCC) , (d) rigid containers, including glass, tin, bi-metal, steel aluminum, and plastic No. 1 and No. 2 plastics. 8.2.3 Commercial. Pacific shall provide free rigid container cart service for Hospitality and Retail businesses under 5,000 square feet, and free rigid container bin service for Hospitality businesses of 5,000 square feet or greater selling beverages, within sixty (60) days after City approval of this Franchise. Pacific may subcontract the recycling services provided under this Section to a third party subject to City's prior reasonable approval. Pacific and City shall meet and confer in order to establish reasonable terms and conditions for this service which both serve the City's diversion obligations, and Pacific's interests in avoiding unauthorized use of the free service by non- qualified businesses. In addition, Pacific agrees to meet and confer with the City in order to develop and implement a Green Waste recycling incentive program for all commercial Green Waste generators within 90 days of the approval of the Franchise. 8.2.4 Citv-Wide. Pacific shall provide free mixed paper or rigid container drop-off collection services at current state designated convenience zone locations and additional locations reasonably identified by City. 8.2.5 Christmas Trees. Christmas tree recyclables shall be picked up at no additional charge at all single family and 23 /I,A -~~ multi-family locations in accordance with the program attached hereto as Exhibit "8". 8.3. Vehicles. Design of collection vehicles shall be done to limit the contamination and maximize the resale value of collected Franchised Recyclables. Any and all changes to the established means of collection of Franchised Recyclables, as herein outlined, shall be approved by the City in advance, including any changes in the way that the Franchised Recyclables are collected (separated and/or commingled), design of vehicles, etc. 8.4 Containers. 8.4.1 Sinqle Familv and Multi-Familv Curbside. Pacific shall purchase and distribute curbside recycling containers to be used by each eligible single family and multi-family residential customer included in the program. The type and cost of container to be used, or changes of container type shall be approved by the City prior to purchase and distribution. Pacific shall retain ownership of the containers subject to City's right to purchase set forth in Section 6.2.2 hereof. Each residence eligible to participate in the program will receive one container. If Pacific determines that the volume of recyclable material exceeds the capacity of the one container, additional containers shall be provided at no cost to the resident. Replacement of containers that are stolen and/or damaged shall be made at no cost to the resident at Pacific's discretion. Pacific will be responsible for keeping records and making them available to the City regarding additional containers requested, and the reason for the request, e.g. damaged, stolen, needed to handle residence recyclables beyond capacity of one container. 8.4.2 Larqe Multi-Familv. Appropriate container{s) shall be provided for use at each Multi-Family complex not provided Curbside collection service for each unit under Section 8.2.2., above. Such container (s) shall meet the space restraints and collection needs of the respective complex and the residents therein. Said containers may include 90 gallon carts on wheels, 2 cubic yard bins or 3 to 8 cubic yard bins. Each container shall conform to the following: slots in lids for placement of beverage containers (circular holes of appropriate sizes) and newspaper/mixed paper (narrow slots of appropriate size); plastic containers should include recycled plastic content; be fire resistant; be of durable quality and warranty; be heat stamped or labeled for commodity; be clearly labeled on the lids and the front facing of the bin, in Spanish and English (with graphics) as to the designated recyclable(s) and "No Trash"; be clearly labeled with Pacific's name and phone number. Pacific shall provide to each multi-family complex larger than nine units at least one exterior recycling container per complex for commingled hard recyclables (aluminum cans, glass bottles and jars, plastic bottles and tin and bi-metal cans) and one exterior recycling container for newspapers 24 J(,iI-~3 or alternatively at least one, 2- or 3-8 yard divided bin that effectively separates commingled hard recyclables from newspapers. To the extent possible, exterior recycling containers will be required to be placed adjacent to or near the refuse collection containers. 8.4.3 Yard Waste; Green Waste. Pacific shall purchase and distribute, or otherwise arrange for the distribution of yard waste container(s) as follows: a. Sinqle Familv. A container on wheels (approximately 65 gallons) to be used for the collection of yard waste shall be offered to each eligible residential customer for purchase or rent. Pacific shall distribute containers to all customers requesting use of said containers. The type of container to be used or changes of container type shall be approved by the City prior to purchase and distribution. Pacific shall retain ownership of the containers unless the customers pays in full for the container, as specified herein. b. Multi-Familv. An appropriate yard waste collection and storage container(s) shall be provided for use at each multi-family complex that meets the space restraints and collection needs of the respective complex and the residents therein. Said containers may include 90 gallon carts on wheels, 2 cubic yard bins or 3 to 6 cubic yard bins. Each container shall conform to the following: plastic containers should include recycled plastic content; be fire resistant; be of durable quality and warranty; be heat stamped or labeled for commodity; be clearly labeled on the lids and the front facing of the bin, in Spanish and English (with graphics) as to the designated recyclable (s) and "No Trash"; be clearly labeled with Pacific's name and phone. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated collection at residential or commercial locations for Green Waste. 8.5 Transportation of Materials. 8.5.1 In General. Except as provided below, Pacific shall transport collected Franchised Recyclables to a central collection point and shall retain responsibility for the sale of such materials in a timely and efficient manner, so as to yield the highest possible market value for the material. No non- contaminated Franchised Recyclables shall be landfilled, unless approved by the City. Should market failure occur for one or more 25 I' IJ -5'1 material types, only the City Manager (or designee) of the City may decide not to collect the affected material. All written contracts, if any, with processors, recyclers or other buyers of Franchised Recyclables shall be submitted to the City. 8.5.2 Yard Waste. In order to allow for the Yard Waste program to fully assist the City in meeting its AB 939 obligations, the City is interested in having the collected yard waste processed for compost or mulch (not bio-fuel) or alternative daily cover. To this end, the City directs Pacific to transport the collected materials to Organic Recycling West, or another permitted facility designated by City. 8.6 Sale of Materials. Pacific shall use its best efforts to sell Franchised Recyclables (excluding Yard Waste) for cash at the highest available market rates. The "Net Revenues" (defined below) from such sales based upon an "All Materials Six Month Average" (defined below) shall be shared between Pacific and City depending upon the "Tonnage Diverted" (defined below), in accordance with the following formula: a. Where the applicable All Materials Six Month Average is equal to or less than sixty dollars ($60) per ton, Pacific shall retain one hundred percent (100%) of the Net Revenues, regardless of the Tonnage Diverted during the relevant six month time period. b. Where the applicable All Materials Six Month Average is greater than sixty dollars ($60) per ton, Pacific shall receive one hundred percent (100%) of the Net Revenues up to $60 per ton. In addition, the amount of "Incremental Net Revenues" (defined below), derived from the portion of the All Material Six Month Average above $60 per ton, shall be shared between Pacific and City, based upon the Tonnage Diverted during the relevant six month time period, as follows: (1) Where the Tonnage Diverted is less than 12,500 tons, City shall receive sixty percent (60%) of the Incremental Net Revenues, and Pacific shall receive forty percent (40%). (2) Where the Tonnage Diverted is equal to or greater than 12,500 tons, but less than 17,500 tons, City shall receive fifty five percent (55%) of the Incremental Net Revenues, and Pacific shall receive forty five percent (45%) . (3) Where the Tonnage Diverted is equal to or 26 )I,~ -65 greater than 17,500 tons, but less than 22,500 tons, City shall receive forty five percent (45%) of the Incremental Net Revenues, and Pacific shall receive fifty five percent (55%) . (4) Where the Tonnage Diverted is equal to or greater than 22,500 tons" but less than 27,500 tons, City shall receive thirty five percent (35%) of the Incremental Net Revenues, and Pacific shall receive sixty five percent (65%) . (5) Where the Tonnage Diverted is equal to or greater than 27,500 tons, City shall receive thirty percent (30%) of the Incremental Net Revenues, and Pacific shall receive seventy percent (70%). For purposes of this Section: "Net Revenues" shall mean all Gross Revenues accrued by Pacific over a relevant time period from sale of Franchised Recyclables (excluding Yard Waste), minus any amounts paid to third parties for processing of sold recyclables or as a broker's fee or commission. "Incremental Net Revenues" shall mean Net Revenues less the product of $60 multiplied by the number of tons of Franchised Recyclables (excluding Yard Waste) sold to generate such Net Revenues. "All Material six Month Average" shall mean the average price per ton (2,000 pounds U.S.) agreed to be paid to Pacific by purchasers of all Franchised Recyclables sold (excluding Yard Waste) over a relevant time period. Such amount shall be calculated by dividing the Net Revenues generated over the relevant six-month time period by the number of tons of Franchised Recyclables sold (excluding Yard Waste) over that same period. "Tonnage Diverted" shall mean all Franchised Recyclable (includinq Yard Waste) collected by Pacific and marketed or disposed of (other than into a Landfill) in accordance with the terms of this Franchise for the applicable time period. 8.7 Contamination. 8.7.1 Franchised Recyclables that are contaminated due to the placement of Solid Waste in a designated recycling container, or inclement weather that leaves the Franchised Recyclables unmarketable, may be landfilled. Pacific shall retain a record of such occurrences and report said occurrences to the City on a quarterly basis. Should contamination occur more than twice at a single complex, said complex shall be notified. Should contamination occur at a generator site three or more times, the generator shall be notified and charged the necessary disposal fee for dumping the contaminated recyclables as refuse at the landfill. 27 " 11 -!~ 8.7.2 Yard Waste, wood waste and pre-consumer food waste that is contaminated by plastic or non-organic material may be disposed of as Solid Waste. Pacific shall retain a record of such occurrences and report said occurrences to the City on a monthly basis. Should contamination of Franchised Recyclables occur at a generator site, Pacific shall "tag" such generator and enforce City Municipal Code provisions in accordance with the procedures contained in Section 6.2.19 hereof. 8.8 Recvclinq Education. Immediately upon City approval of the Franchise with respect to City's fiscal year 1998/1999, and on July 1 of each subsequent year during the Term beginning July 1, 1999, Pacific shall pay the City $44,000 per year which City agrees to use for purposes of partially funding a recycling public information and enforcement program ("Recycling Education Program"). The parties agree to meet and confer from time to time in order to assess the effectiveness of the Recycling Education Program, and, if necessary, to agree upon appropriate modifications thereto. City shall have lead responsibility for directing the development and implementation of the Recycling Education Program. City also agrees to take such steps as may be reasonably necessary to protect Franchised Recyclables placed at the curbside for collection by Pacific under the terms of this Franchise and shall reasonably enforce the existing anti-scavenging ordinance, as it may be amended from time to time by City. 8.9 Recvclinq Proqrams Severable. The residential curbside recycling service, the large multi-family recycling service, and the residential Yard Waste recycling service required hereunder are each subject to the performance standards and Franchise conditions detailed herein. For purposes of measuring satisfactory performance, and for enforcement purposes hereunder, Pacific agrees that its performance of each of these individual recycling services will be considered severable from each other, and from the Solid Waste disposal services. 8.10 Special Termination Provisions. It is the intent of the City that the term for the provision of each of the recycling services shall run concurrent with the term of this Agreement, subject to a two year notice of cancellation by the City without cause. In addition, curbside and large multi-family recycling programs shall each be subject to a six month cancellation in the event Pacific fails to achieve the Minimum Performance Standards attached hereto as Exhibit "F" and incorporated herein by this reference. 8.11 Recvclinq Proqram Expansion. It is the City's intention to develop a comprehensive recycling program to reduce the amount of material being disposed of in the county landfills and to comply with the mandates of the California Integrated Waste Management Act of 1989 (AB 939). Pacific agrees to use its best efforts to assist the City in meeting such mandates by adding commodities to existing 28 P, 8 -~'1 programs as resale markets are identified. In addition, such efforts shall include meeting and conferring with the City to develop and implement a recycling program incentive for single can users within 180 days of the Franchise. Pacific also agrees to meet and confer with the City to direct recovered materials futures to local manufacturers developing or improving long term markets at a comparable or greater net value. Contracts with non-Affiliates previously provided to and approved by City shall not be governed by this meet and confer obligation. However, Pacific shall meet with City to address such opportunities prior to renewing or entering into any new contract. Both parties hereby agree that the City may not go out to bid for the expansion of this recycling program until after the City has met and conferred with Pacific with regard to its intent to do so. If separate amendments to this Franchise for refuse collection are not negotiated between the City and Pacific as a result of such meet and confer process, the City may go out to separate bid. 9. Insurance and Performance Bond. 9.1 Pacific agrees, at Pacific's own expense, to carry comprehensive public liability and automobile liability insurance coverage during the full term of this Franchise, with City also named as an additional insured thereunder, covering liability for bodily injuries, death and property damage, arising out of or in connection with the operations of Pacific, under this Franchise in an amount not less than $1,000,000 for injuries including death to anyone person and in an amount not less than $5,000,000 for any one accident or occurrence, and property damage in an amount not less than $200,000. Pacific further agrees to carry, at Pacific's own expense, workers' compensation insurance in accordance with the laws of the State of California. All of said insurance policies, or certificates thereof, shall be deposited by Pacific with the City Manager together with endorsements or statements from the insuring companies providing that such policies will not be subject to cancellation, modification or reduction of the limits of the policy until ninety (90) days after written notice to the City by registered or certified mail. Such policies shall guarantee payment of any final judgment rendered against Pacific or the City within the coverage provided, irrespective of the financial condition of, or any acts or omission of, Pacific. All of said policies shall be subject to the approval of the City attorney. 9.2 Pacific shall secure and deliver to the City Manager a twelve (12) month performance bond in the amount of $1,000,000 to secure the full, true and faithful performance of all their terms, obligations and conditions of this Agreement on the part of Pacific. Pacific shall present said bond together with a certificate from the surety showing payment in full for such bond, to the City Manager prior to the commencement of operations pursuant hereto and provide a one-year renewal and certificate of payment prior to the start of each year of this Agreement. 29 lit fJ -6" 9.3 In the event of the termination or cancellation of the insurance or bond required hereunder or the failure of Pacific to provide such other insurance and/or bond as hereinabove provided, prior to the effective date of such cancellation or termination, this Franchise may be suspended or terminated forthwith by City, by written notice thereof to Pacific. Any such suspension shall be for such period or periods as the City Manager from time to time may determine. No liability or obligation shall be incurred by City in favor of Pacific by virtue of any such notice or notices or from any such suspension or termination. In the event of such suspension or termination by City upon the failure of Pacific to secure and maintain on file said insurance and/or bond during the full term of this Franchise, Pacific shall be liable for any and all damages suffered by City arising out of such suspension or termination. 10. Hold Harmless. Pacific 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, amy suffer, or which may be recovered from, or obtainable against City, or such officers or employee, for, or by reason of, or growing out of or resulting from the exercising by Pacific of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Pacific or its servants or agents in exercising the Franchise granted hereby, and Pacific 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 Pacific of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Pacific, or its servants or agents, in exercising the Franchise granted hereby. This hold harmless clause shall apply to any extension of the Franchise. 11. Remedies for Default; Resolution of Dispute. 11.1 Defaults. The occurrence of anyone or more of the following events shall constitute a material default and breach of this Franchise by Pacific: 11.1.1 Pacific's failure to make any payment of the Franchise Fee or any other sum due under this Franchise, as and when due, where such failure shall continue for a period of ten (10) days after written notice from City that such amount was not paid on the date such payments is due; 11.1.2. Pacific's failure to observe or perform any of the material covenants, conditions or provisions of this Franchise to be observed or performed by Pacific, other than a monetary default as described in Subsection 11.1.1, above, or a minor default as described in Section 11.2.1, below, where such failure 30 /1, 1J -~f ":' shall continue for a period of thirty (30) days after delivery of written notice thereof from City to Pacific; provided, however, if the nature of such default reasonably requires more than thirty (30) days to cure, then Pacific shall not be in default in the event that Pacific shall commence cure of such breach within the foregoing thirty day period and diligently prosecute such cure to completion; or 11.1.3 Pacific files for bankruptcy protection, or is placed involuntarily into bankruptcy, control of a material portion of its assets thereof is assumed by a receiver or trustee or assigned for the benefit of its creditors, and such proceeding or condition is not dismissed or vacated within thirty (30) days of its commencement; or 11.1.4 Pacific's continuous commission of minor faults as more specifically described in Section 11.2.1(b), below. 11.2 Remedies Upon Pacific's Default. Upon the occurrence of any event of default by Pacific, City shall have any and all remedies available to City at law or in equity. Without limiting the generality of the foregoing, City shall have the following remedies: 11.2.1 Liquidated Damaqes. a. The City may assess liquidated damages against Pacific for unsatisfactory performance under the terms and conditions of this Franchise. A description of the actions or omission which will result in damages and the monetary amount of damages corresponding thereto is attached hereto as Exhibit "H". City will provide Pacific with five (5) days written notice of any proposed assessment. Pacific will have the right to appeal the City's assessment to the City Manager in accordance with the dispute resolution procedures set forth in Section 11.5 hereof. b. Notwithstanding the foregoing, if more than 200 individual penalties, or ten thousand dollars ($10,000) in aggregated damages (excluding those late fees and interest amounts determined as a percentage of delinquent amounts due and payable to City hereunder) are imposed with respect to any calendar quarter, Pacific shall be in material default under the Franchise and City shall be entitled to pursue any and all additional remedies provided hereunder, including termination of the Franchise, but without the obligation to provide Pacific with an opportunity to cure. 11.2.2 Termination. If Pacific shall fail, neglect or refuse to comply with any of the conditions of this Franchise, 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 31 JI~R-'o to all rights and remedies allowed by law, thereupon may terminate the right, privilege and Franchise granted hereby, and all the rights, privileges and the Franchise of Pacific granted hereby shall thereupon be at an end. Thereupon and immediately, Pacific shall surrender all rights and privileges in and to the Franchise granted hereby. This Franchise is also subject to terminatin by the City in the event that Pacific fails to obtain City Council approval for a change in ownership of its operating company in accordance with Chula Vista Municipal Code Section 8.23.080. 11.2.3 Self HelD. In the event Pacific fails, refuses, or neglects to collect and dispose of Solid Waste or Franchised Recyclables set out or placed for collection at the time and in the manner herein required, City may collect and dispose of the same or cause the same to be collected and disposed of and Pacific shall be liable for all expenses incurred in connection therewith. Such remedy of City shall be cumulative and in addition to any and all other remedies it may have in the event of such failure, refusal or neglect of Pacific. The collection and disposal of refuse by City or by others as aforesaid shall not be deemed an election of remedies which shall preclude City from availing itself of additional remedies for Pacific's breach of contract. 11.2.4 Remedies Cumulative. 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. 11.3 Ci tv's Default. City shall be in default of its obligations hereunder as a result of a breach by City of any material obligation required to be performed by it hereunder if City fails to cure such default within thirty days after the receipt of written notice from Pacific specifying such default; provided, however, if the nature of City's default is curable, but more than thirty days are required therefor, City shall not be in default so long as it has commenced performance of such cure within said thirty day period and thereafter diligently pursues the same to completion. Upon any default by City hereunder, Pacific shall be entitled to pursue any and all rights provided at law or in equity. Notwithstanding the foregoing, City shall not be in default under this Agreement for any act or omission by the City where the City is required by law to exercise independent legislative quasi-judicial, judicial or administrative discretion. 11.4 No Waiver of Remedies. The failure of either party at any time to require performance by the other of a provision hereof, shall in no way affect the right of such party entitled to performance to enforce the same thereafter. Nor shall the waiver of either party of any breach of any provisions hereof be construed 32 II, ~ - " I to be a waiver of such provisions or of any succeeding breach thereof. 11.5 Administrative Review of Disputes. Either party hereto may give the other party written notice of any dispute with respect to this Franchise. Such notice shall specify a date and location for a meeting of the parties hereto at which such parties shall attempt to resolve such dispute. The City shall keep a record of the proceedings conducted and information presented during such meeting. In the event that such dispute cannot be resolved by the parties hereto within thirty (30) days, the matter may be referred by mutual agreement of the parties to non-binding arbitration, or by either party to legal proceedings. In the event either party has referred a dispute to any administrative proceeding, or both parties have referred the matter to arbitration, neither party may act to terminate this Franchise for cause except at the conclusion of the meeting of the parties held pursuant to this Section. 12. Renewal. This Franchise may be renewed pursuant to Municipal Code Section 8.23.060 which provides as follows: Where a contract or Franchise has been entered into between the City and an operator and the operator has satisfactorily performed under such contract or Franchise, the City Council, without inviting bids or proposals therefor, may, either prior to or after the expiration of such contract, extend or renew the same upon the same conditions or such other conditions as the City Council may provide. The City Council shall, however, whether considering a contract or a Franchise follow the procedures established by Article XII of the Charter for notice and hearing. Notwithstanding the foregoing, Pacific acknowledges and agrees that Pacific has no right whatsoever to require City to renew or extend this Franchise, and City retains the right, in its sole discretion to decide to renew or extend this Franchise, or not to renew or extend this Franchise. 13. General Provisions. 13.1 Authoritv. Each party represents that it has full right, power and authority to execute this Franchise and to perform its obligations hereunder, without the need for any further action under its governing instruments, and that the parties executing this Agreement on behalf of such party are duly authorized agents with authority to do so. 13.2 Assiqnment. Except as expressly provided herein, neither this Franchise, nor any rights or interest herein, shall be assigned by either party without the prior written consent of the 33 I'R-'~ other party. Any attempted assignment in violation of this Section shall be void and shall constitute a material default entitling the other party to terminate this Franchise. In addition, both parties agree to comply with any and all provision contained in the Municipal Code governing the change of ownership of Pacific or the transfer of this Franchise. 13.3 Counteroarts. This Franchise may be executed in multiple copies, each of which shall be deemed an original, but all of which shall constitute one agreement after each party ohs signed such a counterpart. 13.4 Entire Aqreement. This Franchise, together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire agreement between the parties with respect to the subj ect matter contained herein. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 13.5 Exhibits. All exhibits referred to herein are attached hereto and incorporated herein by this reference. 13.6 Governinq Law. This Franchise shall be governed, interpreted, construed and enforced in accordance with the laws of the State of California. 13.7 Notice. Any notice that may be given to either party under or with respect to this Franchise shall be deemed to have been given when delivered personally or when sent by registered or certified mail, postage prepaid, addressed as follows: PACIFIC: Pacific Waste Service 881 Energy Way Chula Vista, Ca. 91911 Attn: Rick Berlin, General Market Manager with a copy to: Charles T. Hoge Post, Kirby, Noonan & Sweat LLP 600 West Broadway, Suite 1100 San Diego, Ca. 92101-3302 CITY: City of Chula Vista 276 Fourth Avenue Chula Vista, Ca. 91910 Attn: City Manager 34 )/'8 -'3 with a copy to: City Attorney 13.8 Successors. Subject to the restrictions on assignment and change of ownership contained herein, all terms of this Franchise shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns. 13.9 Waiver. The waiver by one party of the performance of any term, provision, covenant or condition shall not invalidate this Franchise, nor shall it be considered as a waiver by such party of any other term, provision, covenant or condition. Delay by any party in pursuing any remedy or in insisting upon full performance for any breach or failure of any term, provision, covenant or condition shall not prevent such party from later pursuing remedies or insisting upon full performance for the same or any similar breach or failure. [Next Page Is Signature Page] 35 "(1-''1 [SIGNATURE PAGE TO SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT BETWEEN CITY OF CHULA VISTA AND PACIFIC WASTE INDUSTRIES] IN WITNESS WHEREOF, Pacific and City have entered into this Franchise Agreement effective as of the date first written above. CITY: City of Chula Vista, a municipal corporation PACIFIC: Allied Waste Industries, a Delaware corporation dba Pacific Waste Services By: Shirley Horton, Mayor By: [Print Name and Title] Attest City Clerk By: Approved as to form by [Print Name and Title] City Attorney H:\home\attorney\trash3.frn 36 )1,9 -/& EXHIBIT A Construction Demolition Guidelines The fees, vehicles and safety equipment used for collecting standard household waste are not designed to handle large quantities of construction or landscape debris. When building, remodeling or re-landscaping homeowners shall be encouraged by the City and Pacific to reuse materials on site whenever possible. When homeowners cannot reuse the materials on site they should contact Pacific Waste Systems to request an appropriately sized demolition recycling or waste bin. Residents may also haul the waste to an appropriate recycler or landfill themselves. Construction and demolition debris is not considered standard residential waste. Household waste service is not an acceptable means of disposing of landscape or demolition debris in excess of 200 pounds. When disposing of small quantities of demolition or landscape debris please observe the following guidelines: A small quantity of rock, bricks, dirt, wood or other demolition debris that is generated as an incidental part of regular home occupancy will be collected as long as the driver believes it is safe for him and the equipment to do so, The material must be free of protruding nails, glass or sharp objects, The demolition debris must be less than 10% of the total waste being collected and the Pacific collection persounel makes the final determination regarding the 10% limit. Standard, manual trash containers must weigh less than 60 pounds when collected and an automated container must weigh less than 250 pounds (or the maximum weight identified on the container by manufacturer) when collected, Wood must be free of nails, glass or sharp objects and cut into four foot lengths or less and placed into a waste receptacle or tied into bundles weighing less than 35 pounds each, Non painted or treated wood should also be free of nails or sharp objects and should be bundled and placed as yard waste not trash. Pacific shall sponsor a total of two Community Clean-up Day events per calendar year that provide free disposal & recycling for concrete, asphalt, yard waste and other demolition debris to Chula Vista customers. When quoting a demolition roll-of or bin for concrete/asphalt, clean dirt and wood the customer should be instructed to keep the items separate from each other and regular garbage so it may be recycled not land filled. 1~f7-66 / J~R-'7 RXHIRTT B-1 Free Bulky Pick-Up Policy Small Geuerator The program is intended to provide residents with free collection service for bulky items generated from the "standard" residential use of a single family dwelling. The "standard" is based on the number, frequency and type of items generated. Items that do not meet that standard may be subject to additional fees. Free service includes up to one free service stop per week for non-hazardous, non-infectious household bulky items such as a sofa, chair, mattress, lawn furniture, barbeque, or appliance than can be easily and safely moved by hand or hand truck. Free bulky service does not include items brought from another location or generated from a business such as an auto mechanic or upholstery business conducted at home. Such items will be subject to a fee of up to $3 per item or $25 per half hour. Collection of more than 10 household bulky items in any week, or 60 items in any 90 day period may be subject to a surcharge of up to $3 per item or $25 per half hour charge. Pacific shall provide service on an on call basis, with 48 hours notice from the customer on the next regular residential trash service day for that residence. Whenever possible, the customer should dismantle or break down items so they may be easily and safely collected. Each items shall weigh less than 60 pounds if they need to be removed by hand. Items over 60 pounds shall be prepared by residents so they can be safely collected on a hand truck.. Collection of items that carmot be safely collected with a hand truck may be subject to a fee of up to $25 per half hour or may be tagged with an explanation and left. Collection on any day other than the standard refuse and recycling day is subject to an initial service charge of up to $25 for up to the first five items and up to $3 for every additional item. Loose construction demolition, yard waste and other items are not considered bulky items and should be properly recycled or disposed of at a permitted drop-off facility or the customer may subscribe to temporary roll-offboxlbin collection service as appropriate. Pacific shall sponsor a total of two Community Clean-up Days per calendar year which provides Chula Vista customers with free disposal & recycling for bulky items, yard waste and demolition debris. The two Community Clean-up Days will be scheduled and conducted within twelve months after the agreement. Pacific agrees to meet and confer with the City at the end of the first twelve month period to determine if the second armual event is still necessary to reduce or eliminate improper disposal. ~II-"S" EXHIBIT B-2 Free Bulky Pick-Up Policy Multi-Family The free program is intended to collect only those items generated from the dwelling units as a part of normal residential use. Pacific shall provide up to one free service stop per month for non-hazardous, non-infectious materials such as a sofa, chair, mattress, lawn furniture, barbeque, or appliances that can be easily and safely moved by hand or hand truck. Free collection does not include construction & demolition debris. Free Service is to be provided on an on call basis, with 48 hours notice from the customer. Collection to be performed on the same day as Residential Trash for their service area. Items shall be dismantled or broken down so they may be easily collected and loaded. Items shall weigh less than 60 pounds if they need to be removed by hand. Items over 60 pounds shall be prepared by residents so they can be collected on a hand truck. Example: carpet shall be cut into four foot widths, rolled into sections weighing under 55 Ibs and secured with twine or packing tape so that it can also be moved by a hand truck. All items for one complex must be ready for collection at one time and at one location in the complex that is accessible to the Pacific bulky collection vehicle. Location to be established at the time of 48- hour notice. Free Collection is limited to up to 5 items for every ten units in the complex. (ie, a building with II units gets up to 10 items a building of21 units gets up to 15 items). Collection of more than the standard number of items will result in a charge of up to $3 per item. Additional items that are not collectable by hand-truck will be subject to a $25 per half hour charge. Collection on any day other than the standard day may include a service charge of up to $25 for up to the first five items and up to $3 for every additional item. Loose construction/demolition, yard waste and other items are not considered bulky items and should be properly recycled or disposed of at a permitted drop-off facility (see demolition guide) or the customer may subscribe to temporary roll-offboxlbin collection service with Pacific as appropriate. Pacific shall sponsor a total of two Community Clean-up Day events per calendar year that provide free disposal & recycling for concrete, asphalt, yard waste and other demolition debris to Chula Vista customers. I'IJ -I.' RXHTRIT C Proposed Set Out Fines Fir~t Contact - Generator to be tagged and served. Item(s) should be collected either as a recyclable, bulky item or trash on the same day as regular service unless the collection of items would be hazardous to Pacific personnel or equipment or their collection is specifically prohibited by federal, state or local law. The tag should identify the specific violation (Grantee shall preserve the stub demonstrating proof of notice for one year). Information on trash, recycling, yard waste or bulky collection shall be left with tag to instruct customer on future set outs. Second Contact - Generator receives a tag only (preferably marked 2nd request), information is forwarded to the City. The City shall then send a letter and instruction regarding violation and warning of fine to customers and faxes list of addresses notified to Pacific. Pacific shall continue to tag address if necessary and forward information to City. Eiill:s - A first fine may follow no sooner than 15 days after notice from the City. The first fine shall be up to $3 per applicable service. A second fine shall be up to $5 per applicable service. A third fine and each fine thereafter shall be up to $10 per applicable service. Substantiated fines are part of the regular refuse fee and are subject to collection in the same manner. ~II- 7t> RXHTRIT D GENERAL REPORTING REQUIREMENTS Quarterly and annual reports shall include a cumulative and up to date accounting of the monthly report form included in this Exhibit D. They shall also include the market price received for each commodity in the Quarterly and Annual Reports (quarterly average is acceptable). The weight receipts and market value for material at the time sold shall be available for inspection by the City upon request under the provisions outlined in Section 4.1.3 regarding right to audit. Pacific shall not be expected to include actual revenues for the most recent month in the monthly reports however they shall make a good faith effort to include them in the quarterly reports. Pacific shall update actual revenue no later than the first monthly report due date or the 52nd day following the end of the quarter. The Quarterly and Annual Reports shall also include a summary of customer service inquiries taken by Pacific Customer Service Staff for Chula Vista. The report shall include an outline of any future operational or customer service adjustments that may be necessary to reduce or eliminate the general type of service inquiry or complaint in the future. Additionally, the annual report shall include recommendations for future changes in collection or customer service operations that may contribute to an increase in the potential diversion of recyclable or reusable material from landfill disposal. 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OIl ~ - <= ~ - - :i ... u .~ <lJ >> '" <lJ ... > <lJ ~ '" ..0:: - <lJ - .- g g- <lJ ~ >- ;:: '" '" '" '6 u o(l g- o '" <lJ ~ ... - '" '" 0 <lJ" ~ p., g u '" 0 <lJ p., '" - '" u - '" ~ e 0 ~ '" ~ <lJ '" ] "1:l '" 0 Q ... ~ <lJ '" "1:l "1:l '" ~ ... e ~ <lJ :;: '" s "S: 0 g <lJ >< "Vi - u - "5b <lJ " .<:: 0 = <lJ ::8 <lJ <lJ 0 ~ u '" 0 0 - u u U -l Z ~ f-< U p., ..0:: "" Pa u :2: :2: 0 1'1/ - 7'1 .... .... .<:: - :2: p., f-< EXHIBI7 E PROPOSeD RATE SCHlIDULll CllUIA VJSrA FRANCHISE JULY 1, 1998 SERVICE TYPE: SMAll QUAl'oTIIY GENERATOR; RESIDENTIAL TRASHlRECYCLlNGIYARD WASTE RESIDENl'lAL MULTI-FAMILY UP TO AND INCLUDING 4 UNITS I UNIT ADDIDONAL UNITS TO 4 UNITS MAX RESIDENTIAL MULTI-FAMILY 5 TO 9 tiNItS TIlASH RATES - 3YD X llWEEK 5-9 tlNITS RECYCI..lNG RATES PER. UNIT (ADDED TO COMMERCIAl.. TRASH RATES) RESIDENTIAL MULTI-FAMILY 10 UNItS AND ABOVE TRASH RATES- 3YDX llWEEK lO UNITS./IND ABOVE RECYCLING PER UNIT (ADDED TO COMMERCIAL !RASH RATES ) MOBILl HOME PARKS + MOTELS MINIMUM PERMONnl ( CENTRAL LOCATION) TRAILER PARXS PER UNIT (lNDlVIDlJAL CAN SERVICE) ONE COLLECTION WEEJ:.L Y SENIOR BAGPROCRAM 6 Mas SUPPLY COMMERCIAL IINDUSTRlAL SMALL GENERATOR (UP TO:Z -4DGAL CONTAII.iERS) ONE TIME WEEK!.. Y ON RES! SERVICE ONE TIME WEEKLY ON RESI SERVICE WITH YARD WASTE ONE TIME WEEKLY ON llESI SERVICE WITH BLUE BOX RECyCLE ONE TIMEWEEKL Y TWO TIMES WEEK!. Y THREE 11MES WEEK!. Y LARGE GENERATORS -1 X 3YD " lJWK MIN IX 3YDX IJ\VKMAX (SEEATTACID:D SCHEDULE FOR PRJClNGMAiRlX) COMPACTOR PERMANENT -HAUL PORTION DISpCSAL :EXI1\AAT S30.00/T0N COMPACTOR SALES TO BE NEGOTIATED ON ^ PERACCOUNT BASIS l'R.EE DELIVERY ON CONTAINERS ONLY. P'so I 11,/1-75 MAXIMUM RATES OPS' FRA.l'1CH AB939 TarAL 8% 2% 1200 0.96 0.24 13.20 1200 0.96 0.24 I3.2O 9.24 0.74 0.18 10-17 69.81 5.5& 1.40 76.19 0.43 0.03 0.01 UI 69.&1 5.5& 1.40 7G.19 1.34 D.ll 0.03 L48 22.41 1.79 0,45 24.65 9.24 0,74 0.1& lo.l7 6.61 O~ 0.13 7.18 39.73 3.11 0.79 43.70 10.95 0.88 022 1:2.04 1261 1.01 0.25 13.87 1138 0.91 0.23 = 1196 Il96 0.:z,4 13.16 21.47 1.72 0,43 23.62 31,68 2.~3 0.63 34.85 69,81 5.58 1.40 76.79 ?'J,95 6.40 1.60 87.94 155-00 D.40 3.10 170.50 RATE BREAKOuT EXHIBIT E continued ROLLOFF OPEN TOP - PElIM HAUL PORTION FREE DE!.IVERY DlllPOSAL EXIRA AT S30.00rr0N .,. TAXES 11$.00 uo 2..:ZO ULOO OPENTOI'-TEMP HAUL PORTION DEUVERY CHARGE DISPOSAL EXIRAAT S30.00It0N.,. TAXES ~o.oo 9.60 :2.40 132.00 OPENTOP- BAULPORTION MULTI HAtlLACCOUNTS ONLY DEl.IVER.Y ClIARCJE ON FlRST HAUl. ONLY DISPOSAL ElcrRAAT S30.oorION.,. TAXES '3.00 7.14 1.96 107.80 C.O.D. HAUL + DISPOSAL ~o.oo :z!.08 7 TON MAXIM1.JMI OVERAGE CHARGE Al'l'UES AI S3o.00rrON RATE.,. TAJQ;S 7.00 3$5.00 DELIVERY CH.\RGX SAME DAY SmVlCXREQUl!STUNTU.3'OOPM 2S.OO 48.00 2.10 3.10 O.s. OJlO 27 .so 44.00 J>.lL RECYCLING MATERIAL IS CIiARGED l'R.OCESSlNG FEES AT1Th!E OF DISPOSAl.. A REBATE IS OFHJl.ED AI 50% OFTIlE MA.RI<ErVAUlE OFlHE MAtEIl1AL. CON5rRUCl10N AND DEMOUllONMiIlEUAL IS CHARGEDAT$42.00rrON" TAXES ALL DISPOSAL TAXES INCLUDE FRANCHISE (8%).AND AB!l39(2%) I'ACIl'lC WASTE .ADMSION OF AllJEl) WASrE. WIJ1lNh1!ONALREvENUES OF 1.2 BILI.lON.AllNU.A1.l. y. IS COMMITIED TO PROVIDING TIlE NECEsSARY CAl'n:Al.. TO SERVICE CHULA VIST~S ROLLoFl' FRANC!lISE:NEEDS. THE TURNAROUND TIME ON.Al.L ROLl.QFl'SEIl.VlCE IS 241l0URs. OPTIONAL SER.VJCES : COMMERClII.L ; LOCK ON TRASH BIN LAVAL LOCK S.DO 7S.oo CONT.AINER. EXCHANGE AFTER COMPUMEN1:AR.Y ANNUAL EXCHANGE. CPllASEGlVE30 DAYN01!CE FOR REQUESTS ) 49.50 NON REGlJ!..'l.R. SCHEDULED PlCKUP .coMMERCIAL HAND PICKUP EXrit.o. PICKIJP CHARGE. COMMERClAL CONTAINER.SEIl.V!CE 10.00 40.00 COMMER.cIAJ.. JUNK PICKUl' DEODORlZING 25.00 PER ITEM 6.00 PER CONTAINER =>WASTERECYCUNG 1 X lIWEEK I X:lIWEEI<: I x lJB>.WEExLY SL50 MONni 103.00 MONTH 27.75 MONnl COMMERClAL RECYCLING 1 X lIWEEK 1 X JJBI.WEExLY 25.00 MCJN1H 21.00 MONni Pag<2 J' ~ - '7" RATE BREf.KOur RE1'lACEMENT 3YD CONTAINER DUE TO REPEA1ED CUSTOMER AllUSE RESIDENTIAL : TOTI:R 95 GAllON RENTALFOR WAStE. TOTER 65 GAUON RENTAL FOR GREEN WASTE 'IEMPORARY 3 YD CONTAlNERATRESIDENTIAL UNI1' INCLUDJ;:S 1 DUMP AND A30 DAY TIME LIMIT ON CONT.AlNER REPLACEMENT 9SGAL CART DUE TO REPEA.= CUSTOMER ABUSE I Paso 3 II, fJ-77 600.00 12.3.00 EXHIBIT E continued 2.00 1.00 75.00 EXHIBIT E continued CITlc' OF CIlULA YISIA RAn TAllU! EFFEC'ltY.E 7-H8 COMMERCIAL TRASHRATES ::L IB~I=ly=sl WASTE OPS F.B.ANCH AB 939 UTEA"I lI.Al'E FEE 8 % FEE 2'1'0 7-1-98 RA 1 1 13 369.81 SS.;S 51.40 I 576." I R 1 1 13 m.94 36.40 $1.60 I 587.941 RA 1 2 25 5120.73 $9.55 $2.41 SI32.80 MAXIMUM R 1 2 26 5138.63 511.09 $2.77 S1S7..SO RA 1 3 39 5170.12 513.51 $3.40 5187.14 :-: -:-R 1 3 39 51%.92 515.75 $3.94 $216.& MOOMUMRA 1 4 52 5224.38 SI7.9S $4.49 $2.46.82 I" R. 1 4 S2 S2S7 3S S2059 $5.15 $283.09 RA 1 5 65 S275S7 $22.13 SS.S3 5304.21 R. 1 5 65 $317.!IO :125.43 3635 5349.69 RA 1 6 78 5330.91 526.47 $6.62. 5364.00 R. 1 5 78 5384.09 S3O.73 . 57.68 $4n5O RA 1 7 91 $391.12 $31.29 57.B2 S430.23 R 1 7 91 $446.77 $35.74 $8.94 S49L44 MlNIMUMRA 2 1 26 'R 2 1 26 RA 2 :2 52 ~R 2 2 52 RA :2 3 78 MAXIMUM R :2 3 78 MINlMUMRA :2 4 104 R 2 4 104 ==-==-:- RA 2 5 130 R 2 5 130 RA 2 6 156 MAXIMUM R 2 6 155 MINlMUMRA 2 7 182 MAXIMUM R 2 7 182 $127.16 SIO.17 $2.54 $139.88 $148.92 $11.91 $2.98 =1 $235.15 318.89 54.72 5260.71 S20.86 55.21~~1 5322.11 525.77 36.44 53S4.32 5351.30 S28.!IO 57.23 53!l7.43 $420.11 533.51 $8.40 I $0462.121 5468.81 537.50 59.381 SS1S.69 I S525.26 542.02 $10.51 $577.79 5572.17 $45.77 Sll.44 I S629.J91 3638.16 551.05 512.76 I 5701.981 5695.42 $55.63 $13.91 I 5764.961 575l.O'7 S50.09 515.02 I $826.181 S$ U.39 564.99 S16.2S I $893.631 I'" 1l- - 7i EXHiBIT E continued em OF CBlJLA VISU. RATE TABLIl EFFECTIVE 7-1-98 COMMERCIAL RATFS RAn LEVEL 1.:.I=h:1 WASTE OPS Fll.ANCH AD 93' RATE .AT RATE FEE 8 'Y. FEE ~"I. 7-H8 RA 3 1 39 R 3 1 39 RA 3 2 7lI R 3 2 7lI RA 3 3 117 R 3 3 117 MINlMUMRA. 3 4 156 "" R 3 4 156 RA 3 S 19S R 3 5 195 RA 3 6 n4 R 3 6 Z4 RA 3 7 273 MAXlMrlMR 3 7 273 5184,84 514.79 53.70 S203.33 $218.39 517.47 $4.37 S240.23 5330.04 n6.40 56.60 I 5363.041 $373.39 ~29.87 S7.47 I 5410.721 $461.71 536.94 59.23 5507-88 S5S8,2~ $44.66 S11.17 S614.U S614.72 549.18 5l2.2' S&7'-19 S670.98 553.68 S13.42 $'l38.1Ill 5767.47 ~61.40 SI~.3~ $844.21 $826.93 $66.15 516~ r S9ll9.62 ~S.47 S7S.64 $18.~1 I 51.040.021 S970.'8 $71.68 $1'.42 I Sl,068.1Ill1 $1.135.96 590.88 S22. 72 S1,l4!1.56 51.167.44 593.40 523.35 ~U84.19 MlNlMUMRA 4 1 S2 MAX1MrlM R 4 1 52 RA 4 2 104 -:- R 4 2 104 MINlMUMRA 4 3 156 MAXIMIlMR 4 3 156 MINIMllMRA 4 4 208 MAXIMIlM R 4 4 208 MINIMUM ll.A 4 5 260 MAXiMUM R 4 5 260 RA 4 6 312 f- MAXIMIlM R 4 6 312 MINIMUM RA 4 7 364 MAXiMUMR 4 : 7 364 $243.04 $19.44 $4.36 S267.3S $285.80 $22.36 55.72 5314.38 $421.71 533.74 5&.43 S4C.88 $476.73 $38.14 S9.53 5524.40 $608.39 $48.67 $12.17 $669.23 S676.33 SS4.1l $I3.S3 5743.96 5326.29 $66.10 SI6.53 S!108.91 $864.86 $6'.19 517.30 S9SL34 51,048.70 583.90 $10.97 51,153.57 51.064.60 585.17 $21.29 SI,I71.06 SI,271.5~ SI01.72 S2~.43 1 S1.3911.71 1 $1.328.63 5106.29 n6.57 $1.4~LSO SI.494.17 $119.53 $29.88 S1.643.58 $1,551.17 $124.09 531.02 $1.706.28 JII fl-7f EXHIBIT E continued cny OFC'liUl.d VISTA RAn TABLE EFnc:rrv:t 7.01-98 :UTE # WIcr.y YARDs uvn BINS LIFrs fM.o WASTE OPS FRANca: All 939 RATE AT RAn ll'EES% .FEE 2% 7-1-911 MlNlMDMRA. 5 1 65 R 5 1 6s RA. 5 2 130 R 5 2 130 ItA 5 3 195 1!AJ!:IMuMR 5 3 195 ItA 5 4 260 R 5 4 260 ItA 5 5 325 R 5 5 325 ItA 5 6 390 R 5 6 390 MlNIMUMRA. 5 7 455 R 5 7 455 $1!l8.7S .t23.!lO $5.98 S328.6s $350.68 DB-05 S7.01 53IS. 74 $536.27 S42.9O $10.73 ~.,o $587.29 S46.91l SIl.75 ~8.1 S778.41 $62.27 S15.57 S8K.2s S7S7.48 $63.00 S15.75 S8U.22 SI.028.6s S82.29 S20.57 SI.DLS2 $1.1>60.53 $S4.S4 $1l.21 SI.1'6.S8 SI,272.35 S101.79 S2S.45 SI.m.ss $1,312.92 $110.63 $17.66 $l.S1Ul $1,520_19 $121.66 $30.42 $1,67.I.87 SI,670.55 S133.64 $33.41 SU37.61 Sl,814.94 $145.20 136.30 SI..9K.o SI,847.14 S147.77 $36.94 S2,03L85 ~ 6 1 78 It 6 I 78 IV. 6 2 156 MAXlMuMR 6 2 156 RA 6 3 234 MAXlMDMR 6 3 234 MlNlMDMRA 6 4 312 R 6 4 312 MlNIMDMRA 6 5 390 MAXIMuM 11. 6 5 390 MINIMoMRA 6 6 468 MAXIMuM R 6 6 468 :MiNlMtJM RA 6 7 546 _R 6 ; 7 546 $354.40 S28.3S S7.ll9 S3ll9.B4 S416.13 $33.29 $832 S4S7.74 $641.32 $SUI Sl2.831 S1Il5.4s 1 $688.87 $5S.11 :Sl3.78 S'7S1.76 5923.46 S73.8S 518.47 L SI.ll1S..8o I 5970.83 S77 .s7 $19,42 SI.067.91 Sl,200.98 $96.08 $14.021 SI.32I.08) Sl.775.11 SI02.01 S25.so 51.402.62 51,481.69 Sll8.54 $2.9.63 SI.629.86 11,617.49 $129.40 $3:l.3S f SI.719.24) $1,776.45 $142.12 135.53 If 51.954.ll!1 51.989.32 $159.15 $39.191 S2,l88.2S I $2,089.93 1167.19 S41.80 I $2,2!l8.93 J $2,310.88 ...5184.87 S46.22L S2.54U7/ Jt, II-go '> EXHIBIT F Multi-Family Performauce Standard Service Levels Time Line 75% of all multi-family complexes consisting of9 units or less (835 units) are converted to 180 days curbside recycling (Pacific may establish collection at an on site central location versus the curb) . 100% of all multi-family complexes consisting of9 units or less (1,113) are converted to 360 days curbside recycling (Pacific may establish collection at an on site central location versus the curb) . 75% (95 Complexes) multi-family complexes of 10 units or more have one or more free 180 days mixed paper bins and service as needed to divert 90% of the mixed paper generated on site. 100% (125 or more as determined) multi-family complexes with ten units or more have 360 days one or more free mixed paper bins and service as needed to divert 90% of the mixed paper generated on site. Diversion from the Multi-family recycling program shall increase from (l)93 tons per 270 days month (last eighteen month net average) to 125 tons per month. Diversion from the Multi-family recycling program shall increase from 93 tons per month 540 days to (l)250 tons per month, (Inclusive of additional materials recycled in the multi-family bulky pick-up program or any rigid containers added to future multi-family collection). (l)For the purposes of performance review, the monthly tonnage benchmark shall be adjusted by an amount equal to the 93 tons per month current average diversion from multi-family recycling, divided by the total number of units served (20,031), times the number of units moved to curbside recycling service: 93 tons 7 20,031 x 1,113 = 5.17 tons. )11 (.1- i"1 EXHIBIT H Enforcement Snmmary The parties agree that calculating damages caused by Pacific's failure to adhere to performance standards is difficult if not impossible to ascertain. consequently, the parties agree that the following liquidated damages schedule shall reflect liquidated damages that shall be payable to City in accordance with the terms hereof, and Section 11.2 of the Franchise. # Unsatisfactory Description Penalty Service Indicator Amount 1 Missed Pick Up Failure To Collect Missed Pick-up Within 24 Hours $25.00 Response Time [Section 6.29 ] Each Additional 24 Hour Period. $25.00 2 Failure To Resond Failure To Respond To A Customer Complaint Or $25.00 [Section 6.2.16 ] Request Within 24 Hours Of Contact . 3 Improper Contractor Charges For A Special Service Not In $500 Imposition Of Accordance With Agreement Or Not Requested By Special Service The Customer. [Section 2] 4 Spillage Or Litter Failure To Clean Up Spillage Or Litter Within 90 $50.00 [Section 6.2.13] Minutes 5 Processing Claim Failure To Respond To A Claim Within Thirty Days $100 For Damages of Receipt and Initiate a Process to Resolve 6 Remitting City Failure To Remit City Fees By The Fifteenth Of The 3% of the Fees Month Amount of [Section 4.1.2] Late Payment 7 Providing Reports Penalty Assessed For Not Providing All Reports On $100 [Section 6.2.20] Date Due: Each Additional Day Late: $25 8 Billing Problems Failure To Resolve A Billing Complaint Within Seven $25 [Section 6.2.16 ] Working Days From The Receipt Of Complaint. Each Additional Day Problem Not Resolved $25 9 Container Supply Failure To Repair or Replace Inoperable $25.00 Containerslbins Within Fourteen Working Days Of [Section 6.2.3 ] Request. Each Additional Day Problem Not Resolved $25.00 10 Unauthorized Contractor Operating During Hours Not Previously $100 Operating Hours Authorized By City [Section 6.2.1] # Unsatisfactory Description x,~-~~ Penalty Service Indicator Amount # .< .. ..... 'X ....."'~t ..... ...... ; .". < t'''''''''' > > 11 Sub-contractor Failure To Deliver Material To ORW Or Other City Provisions Approved Sub-contractor for Yard Waste) by end of their scheduled working day on the same day as $250.00 collection, or if not reasonably possible by the following business day: Per Vehicle Load: 12 Tagging Materials Failure To Tag or Otherwise Collect On The Same $25 [Section 6.2.19] Day and Properly Dispose of Contaminated Or Improperly Set Out Materials 13 Equipment Equipment Not Maintained To Franchise Standards. $25.00 Maintenance [Section 6.2.12] 14 Excessive If Total Residuals From Curbside Recycling Program Contamination Exceed 2% and/or Multi-family Recycling Program exceed 4% of Total Material Collected in a Quarterly Allocation Study $500 Plus Incremental Residual Disposal Cost For Quarter 15 Improper Disposal When Materials Collected From Source Separated Program Intended For Diversion Are Disposed Of At [Section 6.2.14] A Landfill Or Transformation Facility Without Prior Written City Approval Up To First Ton: $100 Every Ton Or Part Of A Ton Thereafter: $100 16 Excessive Damages Amount Increase When Contractor Has 25% Violations Received A Penalty For A Particular Service Indicator More Than 15 Times. After 15 Violations In A Category The Damages Amount Will Increase By An Additional 25% For Each 5 Additional Penalties. 25% I. Cross References. Where an unsatisfactory service indicator includes a cross-reference to a Section of the Franchise, any additional or inconsistent performance standards set forth in this Schedule shall govern. 2. Following Dav Obligations. In each case where a cure for unsatisfactory performance can be rendered within a specified time period, if the expiration of such time period falls on a non- business day, Pacific's right to cure shall be extended until the following business day. 3. Penalties for Additional Davs in Breach: Minor Violations. Pacific may obtain relief from "Each Additional Day Late" damages by providing notice to City of the problem and by diligently proceeding to cure the problem as quickly as possible, subject to City's reasonable approval. In addition, minor occasional violations with advance notice from Pacific and prompt cure may be excused at the discretion of the City Manager. J(,fI- '3 4. Billing Problems. With respect to Unsatisfactory Service Indicator No.8, Billing Problem, in the event that the billing complaint cannot reasonably be resolved within the seven working days provided, Pacific will take additional time to resolve the problem so long as it diligently attempts to resolve same promptly, and the dispute is resolved by no later than the first day of the next billing cycle. 5. Notice. City shall notify Pacific within 7 days after City's actual receipt of notice of a violation of the performance standards, above. City's failure to provide such notice shall absolve Pacific of the damages remedies hereunder. 6. Process for Imposition. Damages to be collected by City hereunder shall be imposed with respect Pacific's performance under the Franchise for each calendar quarter. City shall notify Pacific of the damages amount due and payable within fifteen days after its receipt of Pacific's quarterly performance report. Damages shall be imposed at the discretion of the City Manager in accordance with the terms and conditions of this Franchise, and this schedule. Damages need not be imposed if the City Manger determines that violations were so minor as to not warrant the imposition, or that extenuating circumstances exist. City may only impose liquidated damages with respect to the immediately preceding calendar quarter. Any damages not imposed, for any reason, shall be waived by City and may not be subsequently imposed. Subject to its appeal rights, below, Pacific shall pay any damages amount imposed within fifteen days of written notice thereof. Failure to pay damages amounts when due will result in a 5% penalty, plus interest on the amount owed accruing at the rate of 6% per annum until paid 7. Administrative Appeal Rights. Pacific may appeal the imposition of any damages amount to the City Council by first paying such amount. Any City Council decision shall be final. As an alternative, Pacific can refer any disputed imposition to the Administrative Dispute proceedings set forth in Section 11.5 of the Franchise. 8. Third Partv Delavs. Pacific's failure to report required information in a timely fashion due to delays caused by third parties shall not be subject to damages under this Franchise. 9. Meet and Confer. In the event that the parties mutually determine that, due to unforeseeable circumstances, the performance standards set forth in this schedule are impractical or impossible to satisfy, the parties agree to meet and confer to determine whether or not a minor modification of such impractical or impossible performance standard can be made without undermining the overall quality of service required under the Franchise. Not withstanding the foregoing the City reserves the right not to approve any proposed modification of the schedule or this franchise in its sole discretion. ~ IJ- i'<f Exhibit G Christmas Tree Collection Program Multi-Family Program 10 units or Greater The City and Pacific shall conclude discussions regarding program public information prior to November 1, so that the City may distribute public information in commercial bills by December 1 of each year. The City shall distribute public information (a flyer) to occupants that informs residents oftheir need to contact their complex manager to identifY the location and date trees will be collected. Pacific shall contact each property manager or complex owner as necessary to arrange for a bin, roll-off or hand pick-up location(s) at each complex. The number and combination of bins, roll-offs or locations at each complex shall be sufficient to provide for the free collection of all Christmas trees set at the collection point from all complexes by the January 8th of each year. Pacific shall work with the City to establish and promote up to two collection days between December 28th and January 8th for each complex. Pacific may charge up to $3 per tree or $25 per half hour for additional tree collection requests by multi-family complex representatives. Pacific may request and the City will not unreasonably withhold a request to extend the collection period needed to collect trees. Pacific may ask complex representatives to assist by cutting trees into four foot lengths before collection however, Pacific must collect all trees set at the collection point. Pacific shall treat trees as part of the City's green waste program and they may be combined with regularly scheduled commercial green waste or residential green waste collection for material generated within Chula Vista City limits. Single Family Dwelling Program (nine units and under) All Christmas trees will be collected as part of the curbside residential green waste program on the same day as curbside trash, recycling and green waste collection service. Flocked trees shall be collected as trash and any trees that have metal stands that would be hazardous to equipment or personnel may be tagged and left with instructions for the generator. The City shall work with Pacific to annually revise the public education materials distributed to residents to improve their participation in safe and efficient collection of trees. Puhlic Information and Collection Applicahle to Both Programs The City's public information shall also strongly request that residents remove all ornaments, tinsel, and steel or plastic stands from all Christmas trees before placement. The information will request that residents cut all trees into four foot lengths or less whenever possible before placing them out for collection and request that they place any flocked trees with trash for collection after also cutting them. However, Trees of ten feet or more may be tagged and left with a request for the customer to cut the tree for safe and efficient collection. )~ B-9:5 EXHIBITE PROPOSED RATE SCHliDULE C1IllLA VISTA FRANCHISE JlJL Y 1., 19!1S RESIDENTIAL TRASHiRECYCL1l'lGIYARD WASTE MAXIMUM RATES OPS FRANCH AIl?9 TOTAL 8"10 2% 1200 0.96 0.24 13.20 12.00 0.96 0.24 13.20 9.J4 0.74 0.1& 10-17 69.&1 5.5& 1.40 76.79 0.43 0.03 0.01 0.48 SERVICE TYPE: SMAll. QUA1'-rIlTY GRN'ERA-TOR ; RESlDENI"lAL MtJLTI.FA..\fILY UP TO AND L"ICLUDlNG . UNITS 1 UNIT ADDmONAl. UNITS T04 UNITS MAX RESIDENTIAL MULTI-FAMILY 5 TO 9 \jl'<TIS TRASH RATES - ,YO X lIWEEK 5-9 ONITS RECYCLING RATES PER. ONIT (ADDED TO COMMERCIAL TRASH RATES) RESlDP1TlAL MULTI.F A..\1IL Y 10 UNITS AND ABOVE lXASH RA'TES - 3YD X 1!WEEK 69.31 5,5& 1.40 76-79 10 UNITS.llND ABOVE IlECYCLlNG PER UNIT J.:l4 0.11 0.03 L48 (ADDEO TO COMMERCIAL TRASH RA7ES ) MOBILE HOME PARKS. MOTELS MINIMUM PERMOIm-l 22.41 1.79 0.45 24.'5 ( CENTRAL LOCATION) TRAILER PARKS PER UNIT ONE COlLECTION W"r.EJ:;L Y 9.2' 0.7. 0.1& 10.17 (INDIVlDUAL CAN SERVICE) SENIOR BAG PROGRAM 6061 0-'3 0.13 7.28 6 MaS SUPPLY 39.73 3.13 0.79 03.70 COMMERCIAL /INDUSTRIAL SMALL GENERATOR (UP TO 2 - 40GAL CONTAll'l"ERS) ONE TIME WEEK!. Y ON RES! SERVICX ONE TIME WEEK!. Y ONUSI SERVICE WITH YARD WASTE ONE TIME WEEKLY ON lU;S1 SERVICE WITH BlllE BOX lU;CYCU: ONE TIME WEEKLY TWO TIMES WEEKLY THREE TIMES WEEKLY LARGE GE..'lERATORS -IX 3YD lO/WI{ MIN 1 X 3YD X IIWK MAX ( SEE AITAC!lEl:l SCHErJtJLE FOR PRJCING MATRIX) 1095 0.88 0.22 UoD4 1261 1.01 0.25 13.87 1l.3& 0.91 0.23 = 1196 0..96 0.24 13.16 21.47 1.72 0.43 23.62 31.6& 2..~3 0.63 34.85 69.81 5.38 1.40 76." 7'J.95 6040 1.60 87." COMPACTOR PERMANENT. HAUL PORTION DISPOSAl. J:.XIl\AAT $:l0.00lT0N COMPACTOR SALES TO BE N.EGOTIATED ON A PERACCOUNT BASIS l-'REE DEUVERY ON CONTAINERS ONLY. 155.00 Uo.w 3.10 170.50 Pase 1 II, (.)-v-7 RATE BREAKOUT EXHIBIT E continued ROLLOFF OP!,;N TOP - PERM HAUL PORTION FREE DELIVERY DISPOSAL ExTRA AT S30.00rr0N + TAXES 11UO UO 2.20 ULOO OPEN TOP-TEMP HAUL PORTION DELIVERVCHAROB DISPOSAL EXTRA AT S30.00rrON + TAXES Uo.oo 9.60 2AO 13~00 OPEN TOP- HAUL PORTION MUL1'I HAUL ACCOUNTS ONLY DELIVERY CHARGE ON FlRST HAUL ONLY DISPOSAL EXl'RAAT Do.oorrON'" TAXES '8.00 7.14 1.96 107.80 C.O.D. HAUL + DISPOSAJ.. ~58.00 ZUO 7 TON MAXlMUW OVERAGB CHAROE APPLlBS AT S30.00tTON RATE... TAXES 7.00 385.00 DELIVERY CHARGE SAME DAY SERVICE REQUl!ST UNIlL3,OOPM 2:5.00 48.00 :1..10 J.zo O.s. 0.110 27.50 44.DO . ALL RECYCLING MAIERlAL IS CllARGED PROCESsING FEES AT TIME OF DISPOSAL A REBATE IS OFl'Ell.ED AT 50% OFTHE MARl<ETVALUE OF TIlE MAIElllAL. CON5TRI.JCTION AND DJ!MOImON MATERIAL IS CHARGED AT $42.00ITON ... TAXES ALL DISPOSAL TAXES INCLUDE FRl\.NClllSE (8%).AND AB939(2%) PAcmc WASTE ,ADMSION OF ALlJEDWASIE, WITH Nl\llONAL REVENUES OF 1.2 BlLUONAliNUAll.Y, IS COMMITrED TO PROVID!NG THE NECEsSAR.Y CMITAL TO SERVICE CHULA. VISTA'S R.Oll..OFF FR.ANCHlSE NllIIDS. THE TURNAROUND TIME ON ALL ROLL-<lFF SERVICE [s 241I0UR3. OP1lONAL SERVICES : COMMERCIAL ; LOCK ON Tll.ASH BIN LA VAL LOCK 5.00 75.00 CONT.AlNEll. EXCHANGE AFTER COMPLIMEmAR.Y ANNUAL EXCHANGE. (PU:ASE 0I'VE30 DAYN01lCE FOR REQUESTS ) 49.50 NON RE~ SCHEDULED l'ICKUP -COMMERCIAL HAND PICKUP EXTll.A PICKUP CHARGE. COMMERCIAL CONTAINER SERVICE 10.00 40.00 COMMERCIAL JUNK PICKUP DEODORlZlNO 25.00 FER ITEM 6.00 PER CONTAINER GREEN WASTE RECYCLING I X 1/WEI!K I X 2IWEEI<: I X I1llI-WEl!KLY SL50 MONlH 103.00 MONTH 27.75 MON!H COMMERCIAL RECYCLING 1 X iIWEEK 1 X l/Bl-WEl!KLY 25.00 MONTH 21.00 MONTH ~2 lit f)-Vi' RATE BREAKOUT REPI.ACl::MENT 3 YO CONTAINER DUE TO REPEATED CUSTOMER ABUSE 600.00 RESIDENTIAL : TOTER 95 GALLON RENTAL fOR WASTE 'I'01ER 65 GALLON RENTAL FOR GREEN WASTE TEMPORARY 3 YD CONTA.lNERAT RESJDEN1'lAL UNIT INCLUDES 1 DUMP AND A 30 DAY lIME liMIT ON CONTA.lNER 123.00 REPLACEMENT 9SGAL CART DUE TO REPEATED CUSTOMER ABUSE P"S<3 I{,~-'i? EXHIBIT E continued 2.00 1.00 73.00 ClT\' OF CllULA V1SI:A RATE TAllLl! UFECllVl: 7-H8 COMMERCIAL TRASH RATES RATE # WKLY Y..ul.DS ant. BINS LIFTS fMO EXHIBIT E continued W AS'l'E 01'S llRANCH AB 939 BATEAl: RA1'E FEE 8 Of. FEE 2% 7-1-98 RA 1 1 13 $159.81 S:;.~8 51.40 I 576.791 R 1 1 13 $79.94 56.40 51.60 587.94 MlNlMUMRA 1 2 26 5120.73 $9.66 $2.41 5132.80 MAXIMUM R 1 2 26 3138.63 3J1.09 S2:n 51S2..SO MIN1MUMRA 1 3 39 5170.12 513.61 53.40 5187.14 MAXIMUM R 1 3 39 $196.92 315.75 53.941 5216.621 MlNIMUMRA 1 4 52 5224.38 $17.9~ 54.49 5246.82 MAXlMIlM R 1 4 52 S2S7.35 $20.59 15.151 5283.091 MINIMUMRA 1 . 5 65 $276.57 522.13 55.53 S304.22 R 1 S 6~ 5317.90 $15.43 56.36 5349.69 RA 1 6 78 5330.91 S26.47 $6.6'2. 53li4.00 R 1 6 78 5384.09 $30.73 57.68 $422.S0 RA 1 7 91 5391.12 $31.29 57.82 $43O.ZJ R 1 7 91 5446.77 $3'.74 $8.94 5491.44 MlNlMUMRA 2 1 26 R 2 1 26 RA 2 2 52 R 2 2 52 RA 2 3 78 MAXIMUM R 2 3 78 MINIMUMRA 2 4 104 MAXIMUM R 2 4 104 1'~~nnIRA 2 5 130 R 2 5 130 RA 2 6 156 MAXIMlJMR 2 6 1~6 MINIMUMRA 2 7 182 MAXIMUM R 2 7 182 $127.16 510.17 $2.54 $139.88 $148.92 Sll.91 $2.98 $163.81 5236.16 318.89 54.72 S2S9.78 5260.71 $20.86 55.21 S286. 78 5322.11 525.77 56.44 S3S4.32 5361.30 528.90 :17.23 S397.43 5420.11 $33.61 58.40 I 546'2..121 5468.81 537.50 $9.38 I 551S.69 1 5525.26 542.02 510.51 $571.79 5572.17 54'.77 m.441 5629.391 $638.16 S:ll.OS 512.76 I 57OL981 5695.42 $55.50 $13.91 $764.96 S75l.O'7 $60.09 $15.02 S8U18 5812.39 $64.99 516.25 I $893.631 J"~- qo EXHIBIT E continued em OF CHULA VISTA RATE TAIlLE EFFECTIVE 7-1-98 COMMERCIAL RATES ::::. 1.:..I:h:-1 WASTE OPS FRANca AD 939 RATE.Al' RATE nE8'Yo FEE%'Yo 7-1-98 MlNlMUMRA 3 1 39 R 3 1 39 "RA 3 :1- 78 R 3 2 71l RA 3 3 117 MAXIMUM R 3 3 117 MlN1MUMRA 3 4 156 MAXIMUM R 3 4 156 MINlMUMRA 3 ~ 195 MAXIMOMR 3 5 195 RA 3 6 234 MAXIMOMR 3 6 234 MINlMUMRA 3 7 273 MAXIM1JMR 3 7 273 5184.84 314.79 53.1ll 5%03.33 5% 18.39 317.47 $4.37 $240.23 5330.04 S26.4O $6.60 5363.64 5373.39 529.87 Sl.47 I $410.721 5461.71 536.94 $9.23 $507-88 5~Sll.29 $44.66 m.17 I 5614.1% I 5614.72 349.18 5l2.29 5&76.19 $670.98 $53.68 513.42 5738.08 57Q1.47 561.40 515.35 5844.21 $826.93 $66.15 516.54 I 8909.621 5945.47 S7~.64 SI8.91 I Sl,04O.o:l I $970.98 $77.68 $19.42 51,068.08 51,135.96 590.88 522.72 $1,%49.56 51.167.44 593.40 $l3.35 I 51,284.191 MINlMUMRA 4 1 ~2 MAXIMUM R 4 1 52 MINlMUMRA 4 2 104 MAXIM1JM R 4 2 104 MINJMUM RA 4 3 156 MAXIM1JMR 4 3 1S6 MlNlMUMRA 4 4 208 MAXIM1JM R 4 4 208 MINIMOM RA 4 S 260 MAXIMUM R 4 5 260 MlNlMUMRA 4 6 312 MAXlMUM R 4 6 312 MINIMUM RA 4 7 364 MAXlMUM R I 4 7 364 $143.04 $19.44 $4.86 S267~ 5%85.80 S22.86 $5.72 5314.38 $421.71 $33.74 S8.43 5463.88 3476.73 $38.14 $9.53 8524.40 5608.39 $48.67 $1217 5669.23 5676.33 $,4.11 $13.53 $743.96 $826..29 566.10 $16.53 5908.91 $864.86 $69.19 $17.30 S95L34 51,048. 70 $83.90 $20.97 51,153.57 51.064.60 585.17 $l1.29 51,1~1 $1,21U, $101.72 525.43 51,39 51.328.63 5106.29 $26.57 SI.4~ 51.494.17 B1l9.53 529.88 51.~58 51,551.17 $124.09 $31.0:1- 51.706.;!8 }/,~- 11 EXHIBIT E continued CITY OF CIIOLA VISTA RATE TABLE :EFFECTIVE 7-01-98 RAn # Wla.Y YAllDS UVEL BINS LIFl'S IMO WASTE OPS FRANCK AB 939 RArE AT RATE FEE 8 % FEE 2% 7.1-1/ll MlNlMIJMRA 5 I 65 R 5 1 65 RA 5 2 no MAXIM1JMR 5 2 130 R.A 5 3 195 MAXiMUMR 5 3 195 RA 5 4 260 R 5 4 260 MlNlMDMRA 5 5 325 R 5 S 32S RA S 6 390 '~~rR 5 6 390 MlNlMUMRA 5 7 455 R 5 7 455 S298.78 $23.90 55.98 5328.65 5350.68 S28.0S $7.01 538S. 74 $536.27 $42.90 510.73 551UO $587.29 546.98 51L75 S6046.e:z $778.41 562.27 515.57 S856.2S S7S7.48 563.00 515.75 S8U.22 51.028.65 5&2..29 120.57 51.DL52 51.060.53 584.84 521.21 51.1"-$8 51,272.35 5101.79 525.45 SI,m.ss 51,382.92 5110.63 527.66 51.,S2L11 51,520.79 $121.66 $30.42 51.672.17 51,670.55 5133.64 533.41 5l,l137.61 51,814.94 5145.20 536.30 $1.9K43 51,847.14 $147.77 536.94 I S2,lL1L8S I RA 6 1 78 MAXiMUMB. 6 1 78 'RA 6 2 156 MAXlMUMR 6 2 156 RA 6 3 234 MAXlMUMR 6 3 234 MlNlMDMRA 6 4 312 R. 6 4 312 MlNiMUMRA 6 5 390 MAXIMuM R 6 5 390 M1NlMOM RA 6 6 468 "R 6 6 468 MlNlMUMRA 6 7 S46 R. 6 7 546 5354.40 m.35 $7.091 5389.841 5416.13 $33.29 58.32 S4S7.74 $641.32 $51.31 $l2.83 I S'lIIS.4s I 5688.87 $55.11 5n.78 $7S1.76 5923.46 $73.88 518.47 I 51.015.80 I $970.83 $77.67 $19.42 51.067.91 51,200.98 596.08 S24.02 51.32L08 51,275.11 5102.01 525.50 51.40Z.6Z 51.481.69 SlI8.54 S29.63 I SI.629.86 1 51.617.49 5129.40 $34.351 $1.779.241 $1,776.45 $142.12 53S.S3 51.9S4.l19 51.989.32 5159.15 539.79 I S2,:t88.2S I 52,089.93 Sl67.19 541.80 I $2,298.931 52,310.88 5184.87 S46.22 I 52,541971 1,,~-r2 Rug 04 98 08:46a p.2 ~/'d MOOR REFUSE, INe. 412 CROSBY STREET SAN DIEGO. CA 92113 (619) 234-8744 FAX 234-2338 August 1;, 1998 Mr. David D. Rowlands, Jr. City Manager City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 RE: Waste Management Pranchise Renewal to the Year 2002 Dear Mr. Rowlands, Moor Refuge inc. like to voice our opinion on Waste Management Exclusive Pranchise extension. On August 4th 1998, Chula Vista City Council reads the extension of Solid Waste Exclusive Pranchige, whlDh would gnut DompetitlDD c',,,, 'J! tne city Chula Vista if enacted as drafted. Please understand that there is a big difference between routine regidential Pick-up or commercial bin hauling and competitive construction containers. This country Was based on free trade and competition. The company's that give good competitive service and prices are the are the leading pacesetter of todays economy. Construction companies and property owners need tc be able to negotiate and scheduie servioe with the hauler of their choice to minimize cOsts and Construction delays. We at understand that it may be necessary to pay franchise fees to the city for keeping the competition alive, it can be weil worth it if it is keep within reason. Please consider the importance of this decision. Sincerely, ~ Skeeter Jones Shareholder Aug-04-9S 09:19A P_02 ;tCj ~ /1 fil" '.;.\...--..-- .. , t1. ".:.:.; THE SAN DIEGO COUNTY APARTMENT ASSOCIATION II~-I-:---'-'-~-- l I - - -- ' ~~I AUG - 4 !qqp- L__;-;____. ! ,:,',J,!/NCII ('"r'''C-t-.....J : ~" r- '-_: A Chapter of It',e cor~om;o Aoortment AuOCiction August 4, 1998 The Honorable Mayor Shirley Horton II11d Members ofthe City Council City of Chula Visla 276 Fourth Avenue Chula Vista, CA 91910 Subject: Rellewal ortbe Waste Mallagement Francblse Renewal wlth Pacific Waste Services (Suppon) Dear Mayor Horton and City Councilmembers: On behalf of the San Diego County Apartment Association (SDCAA), 1 would like to express our support for the extension of the City of Chula Vista's Solid Waste Franchise agreement wil" Pacific Wasle Services. If the agreement is approved by the City Council. multifamily property owners will be pleased \0 learn that trash rates in Chula Vista will he fro= until July 1999 and that any future increases by Pacific will be capped for the next four years. Furthem1ore, we lire pleased to see trash rate increases limited to one half ofthe yearly Consumer Price Index for San Diego. The Franchise renewal contains many benefits for both small and large multifamily communities. Smaller rental property owners will benefit from the 68% reduction in recycling costs, lessening the fiDllllcial burtlen on the City's small rental communities. And, the larger communities can take advantage ofthe ToO-cosl recycling bins, ('''hristmas tree recycling, and bulky trash pickup. These servicc. ...'ill help rental property managers improve the cleanliness lllld the ovcralI quality of Ii fe in their communities. 1 would like to thank the City's staff. Michael Meacham in particular, for working with SDCAA in the development of an agreement which is responsive to the needs and concerns of multifamily property owners, managers and residents in the City of Chulll Vista. On behalf of SDCAA, I encourage the Council to support the exlension of the city's Solid Waste Franchise with Pacific Wastc SClVices. Thank you for your time and consideration. 7~~ Robert Pinnegar Manager of Government Relations RP:nc 2727 CAMINO DEL RIO SOUTH. SUITE 327. SAN DiEGO. CA n1DB. (619) 297.1000. fAX (019) 294-4510 . E-Mc>I, BdCOO@QOI.CO;'l1 ~~ :,t ",;~~ ;~* ':,i~'i: ":/.~1 ~Sj nc~ ()'7 I . ,t-<.'l,-'.':' ~A.- ',.~;i~~ E abeth oj Harra :'lh P-I'esident/owner ..,'~ . "',,. - 08/04/1998 08:58 519-559-1515 RELIABLE WASTE INC PAGE 01 //~/fl Reliable Waste, Inc P.O. BO,",620369 · San 01..... CA. 92162-0369 . (619) 23c.8744 . Fax 409-8998 August 4, 1998 Mr. David D. Rowlands, Jr. City Manager City of Chula Vista 276 Fourth AVe. Chula Vista, CA 91910 RE: Waste Management Franchise Renewal to the Year 2002 Dear Mr. ROwlands, Reliable Waste 15 very concerned about the SOlid Waste EXClusive Franchise extension. On August 4th 1998, Chula Vista CIty Council reads the extension of Solid Waste ExolusIve Franchise, Which WOOld Shut Us DUt of Chula Vista it enacted as drafted, Please understand that there is .a big difference between routine residential PICK-up or commercIal bin hauling and competitive cOnstruction containers. AmerIca Was based on free trade and oompetitlon, The Company's that gave gOOd competitive service and prices are the back bone of oUr economy to thIs day. Construction companIes and property owners need to be able to negotiate and SChedUle $ervice with the hauler of their choice to minimIze 005ts and oOnstruction delays. We at RelIable Waste understand that It may be necessary to pay franchise fees to the .city tor keeping the competItion alive, We feel as long as Its keep wIth in reason it will be well Worth It. Please consider the Importance of this decision. ':-i:f!;.J,i .:, ~~ p- - {!.. J) "7.>- ,:'" "',".,;i .~:,j: '~'f'; :;~'fP , /'. .:~ih' . ;~i !l.f"~ .. ;~l' 1ft: :f. _ ". ~A -.~. .-' - Jt. j;~ i,:'I _~t'. :~.f l.?:~~ ~ l'if !.t';';L _..~:, : :!:~n' ..~ .-'. ..:~tf: · !1:~tj ...~t ., ;-.1" :: :~;'~.'i ..", :,:;~ c'<:'jl.::.:t}l' ;~',dl ,....'t.'L'J .~_., "~ I..., .",' t~._....,:;.t ~ ~< ~11.1 ~~.~ , .J~ et~'tl :~':~~ '(:'i<; i')i~ , ---.:, I ~,~ .=::::) .;...;.. ~,~ ~:':;;;;=-::;2::'7Q ,- PAG~ B2 Dependable Oi$posa).&Recycling de / Ib,/f Division Of Burns and Sons Trucking. Inc. Eslabllstlell 1972 July 31. 1.998 Mayor Shirley Horton , ,city of Chula' Visra' , 276 Fourth AvenUe Chulci Vista...CA 91910 Via Fax:S19-685-5612 RI? CHULA VISTA EXCLUSIVE FRANCHISE FOR ROLl-.oFF CONTAINERS' I Dear Mayor Horton: On, AUIlUllt, 4. 1998~ the City' of chula Vista is scheduled to have ns' first hearing on an Ilxtlmsion of thll currem Solid VIIme ,Franchise Agreerilem wi1h Pacific 'Waste Systems. ' The drflft ot'the'new agrBllmeAt'-cailS for f'aciflcWaste Systems to have exclusive rights to all ,solid waste hauling ln' Chula Vista inclildlng rO~o{Iff CQntainers. , AS s small bUsil1jl~rson employing 'spproximst,lIly 80 employees. 'many of whom are " ChUta Vista ,ro:.sidents; I am ~ncemed with the; actions YOU lire considering regarding exclusive frar:tC:hising Of roll-off cdntainers. 'Exclusive franchising may make sense, Jar residential Service since it eliminates traffic and ' road' damage on raglllar routes. 'RDll-off cor.ruilnar service differs, from residential' soiid . . - I waste service in that it is not 'on regularly scheduled r:outes; but rather. serviCll ,is on an as , nealletf"anCl Wh,ere 'neeCle,d basis. . 'VIle have relatioR$hips with ~9rners,whieti depend:on : 'us ,being able tQ ,offer 5ervice on all of their projects. As more areas are made exclusive, amaller haulers',wiD be forced' out of business due to a decreaSed market. Contractors . .. . j. . ' 'Bxperlence 'Costly delayS on -proJects :for, which they cannot rely o~ their preferred vendors, Exp~n~ing,exclUsive francliise,S:Off~rs no ~C?nomjc be,nefit to ~bUSln~ o"r~lijdents of Cliula Vista. Opening the rollo{lff service for your City will insur;B that competitive forces assure fair priCing and qUaliw:' service,. The City of Chule Vista Will oat lose revenue if they inslitute a' nOfNlxClusive FranChise Fee similar to, those of tha I City and, County of Sen Diego. This ~rogr.am w~uld also insure that 'onlv. qualified 111M insl!fed haulers ,are ,permitted for disPOSal sennces. ,'.. " , On ,bBhlllf Of our company and its employees. I would hope that ,you reconsider .the ' proposed extEinsiof1 of the exclusive fraochise for rollo{lff ,containers. Sincerely, , 01&Z LLn ~Farlane General Manager, J CC:,' David D. Rowlands.)r. P.O. Box 1~3g . SpJjng Vallei'. CA 9"'979-1539 '~619) 46o-~55J" ax (619) 465-2371 , , , R~yded p6q>>r@ COUNCIL AGENDA STATEMENT Item~ Meeting Date AUl!:ust 4. 19'1l ITEM TITLE: Resolution / 9/:3 ~ Amending FY 1998-1999 Budget to Include the Recycling Education Program and add two Temporary, Full-time Positions in Unclassified Service in the Conservation Program and Appropriating Funds Therefor. SUBMITTED BY: Conservation Coordinator ~ George Krempl, Deputy City Manager REVIEWED BY: City Manager C~<9';V (4/5ths Vote: Yes.x.. No--.l BACKGROUND: The California Integrated Waste Management Act of 1989 (AB 939) requires that Cities develop and implement an Integrated Solid Waste Management Plan. The plans commit cities to implement programs that will reduce or divert 25% of their annual waste generation from landfills by 1995 and 50% by the year 2000. A failure to develop plans or make a good faith effort to meet diversion goals is subject to civil penalties of up to $10,000 per day. In a companion item on the Agenda for August 4, 1998 Council will consider whether or not to grant the final extension outlined in an existing solid waste, recycling and composting franchise agreement. This Agenda Statement outlines the recycling, compo sting and waste reduction education programs that would be funded by the agreement should Council vote to grant the extension. RECOMMENDATION: Staff recommends that Council approve the resolution and appropriate $68,449.50 (Attachment A) to promote greater participation in industrial, commercial, multi- family and residential source reduction, reuse, recycling and composting programs. BOARDS AND COMMISSIONS: The Resource Conservation Commission has reviewed the City's residential and commercial source reduction and recycling programs. The public education outlined in this proposal incorporate recommendations made by Commission members over the past three years. DISCUSSION: Chula Vista diverted approximately 32% of its annual waste in 1995 and an estimated 41 % for 1997. The City has approximately 18 months to obtain the additional 9% in solid waste landfill diversion required by AB 939. Staff believes that the existing industrial, commercial, residential and institutional options available to Chula Vista generators are adequate to produce the 50% diversion mandate. The challenge is to generate greater public awareness, increased participation and the incentive to participate. While residential rate payers serviced by "curbside" programs are already recycling their share of the mandated diversion goal, they continue to be one of the more effective areas to generate additional diversion. However, the City will not reach the state mandated diversion goals by the year 2000 without the support and participation of commercial, industrial and institutional generators (institutional generators include state facilities and schools). J'B-l The proposed solid waste agreement extension includes a number of program and education enhancements that are designed to help the City meet those diversion goals. Proposal Components - The staff recommendations cover two areas: I) Program Enhancements/Rate Incentives, and 2) Staffing for Promotion and Enforcement. I. Program Enhancement - Rate Incentives The proposed franchise extension includes service improvements that are designed to make it more convenient for everyone to recycle and provide generators with a financial incentive to reduce, reuse, recycle and compost when appropriate. The major program improvements include the following: A. Meet and confer to develop and implement a single can rate to provide single family residential dwellings with an additional financial incentive to reduce, reuse and recycle, B. Expand mixed paper recycling to multi-family dwellings and convert multi-family dwellings of nine units or less to curbside recycling (saving $1 per month per unit), C. Expand free bulky collection to multi-family dwellings to encourage the reuse or recycling of such items as mattresses, furniture and metals, D. Expand free Christmas Tree recycling to include multi-family dwellings and meet and confer regarding the expansion of commercial green waste program and incentives, E. Expand commercial cardboard recycling to include all fiber and reduce the monthly rate to provide commercial generators with an additional financial incentive to recycle, F. Expand commingled container recycling service to hospitality businesses such as restaurants, bars, hotel/motels and convenience stores, and G. Expand special event recycling opportunities and requirements. 2. Staffing for Promotion and Enforcement - The franchise agreement provides $44,000 per year and transfers annual incentive payments from the Department of Conservation to the City to fund recycling public education and promotion. The 1998 incentive payment is $24,449.50. The promotion and enforcement is designed to promote; program improvements, rate incentives, participation in existing programs, and as a last resort, enforce the mandatory recycling ordinance. The Recycling Rangers presence in the field will also re-establish the deterrent for curbside theft and provide the Police and Code Enforcement with another resource to serve residents. The staffing and promotional component include: A. Two full-time unclassified Recycling Ranger Positions @ $8 to $14 per hour J~6- ~ Page 3, Item Meeting Date: August 4,1998 Staffing for Promotion and Enforcement continued. . . B. Promote the reduced rate for mixed paper service among commercial businesses, C. Promote the new, free bottle & can recycling service among restaurants, bars, convenience stores and other hospitality businesses, D. Promote free mixed paper recycling at multifamily dwellings over ten units, E. Promote transition of multi-family dwellings under 9 units to curbside recycling F. Promote free Christmas Tree recycling and bulky pick-up for multi-family dwellings, G. Promote the existing curbside recycling and single can rate (upon approval), H. Assist with container and mixed paper recycling programs at special events, and I. Assist with the enforcement of the mandatory recycling ordinance as necessary. Staff and Pacific Waste Services believe these promotional and educational steps are needed to meet the state mandated diversion goals for the year 2000. FISCAL IMP ACT: There will be no fiscal impact to the General Fund as a result of Council approving staffs recommendation. The public education, promotion and enforcement program costs are all paid for by fees paid by Pacific Waste Services and annual grant payments from the Department of Conservation Division of Recycling. Program administration by the Conservation Coordinator and over head costs if any are funded by the existing AB 939 fees collected as part of refuse service bills. The expansion offree Christmas tree recycling and bulky collection to multi-family dwellings is expected to reduce the impact to Public Works and Code Enforcement regarding dumping complaints from residents by dramatically reducing improper disposal throughout the City. The deterrent created by the Recycling Rangers presence in the field will reduce the curbside theft of recyclables, improper disposal and provide the Patrol Officers, Senior Patrol and Code Enforcement with another resource to serve Chula Vista residents. }{"8-3 ATTACHMENT A Line Item Budget - Appropriations Request 270-2704 - Recycling Education Program Fiscal Year 1998/99 PersomJel : Staffmg for Promotion and Enforcement (2 positions). Salary 5105, $36.500 Pers 5145, 4.726% 1,600 Medicare 5143, 1.45% 500 I Personnel T otaJ I 138,100 Printing & Binding (5212). Brochures. billing inserts 10.000 Vehicle Maintenance and Gas: (5269) ($24.000 vehicle purchase-$3,720 gas & maintenance) 15,000 Materials and Supplies: (5398) I 5.349.5 I Toral I $68,449.5 Revenue Source Amount Pacific Waste Services .tumual Public Education & Promotion Payment Account # 270-3759 $44.000 Department of Conservation Division of Recycling Annual Incentive Payment Account #270-3661 $24,449.50 (1998 payment) /h8--<j } ~e RESOLUTION NO.~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FY 1998-1999 BUDGET TO INCLUDE THE RECYCLING EDUCATION PROGRAM AND ADD TWO TEMPORARY, FULL-TIME POSITIONS IN UNCLASSIFIED SERVICE IN THE CONSERVATION PROGRAM AND APPROPRIATING FUNDS THEREFOR WHEREAS, the California Integrated Waste Management Act of 1989 (AB 939) requires that cities develop and implement an Integrated Solid Waste Management Plan to commit cities to implement programs that will reduce or divert 25% of their annual waste generation from landfills by 1995 and 50% by the year 2000; and WHEREAS, in a companion item, Council whether or not to grant the final renewal outlined solid waste, recycling and composting franchise Pacific Waste Industries ("Pacific"); and will consider in an existing agreement with WHEREAS, the proposed Franchise renewal contains recycling, composting and waste reduction education programs funded by Pacific including two full-time unclassified Recycling Ranger positions at $8 to $9 per hour; and WHEREAS, the FY 1998-1999 budget requires amendment in order to include this program and these positions. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend FY 1998-1999 budget to include the recycling education program and add two temporary, full-time positions in unclassified services in the Conservation Program. BE IT FURTHER RESOLVED that the City Council does hereby appropriate $68,449.50 as set forth in Attilr.hment A to promote greater participation in industrial, commercial, multi-family and residential source reduction, reuse, recycling and composting programs. Presented by Approved as to form by Michael Meacham, Conservation Coordinator "6-.$ COUNCIL AGENDA STATEMENT Item1!l Meeting Date 8/04/98 ITEM TITLE: Resolution 1<1133 Approving the hiring of additional Temporary Expert Professionals and appropriating funds therefore. SUBMITTED BY: Res~lution IlC , '7 JJ Reappropriating funds for land development plan review servIces. J 1 ;;J~, Director of Public Works~ ()(" City Manager VR, ~ (4/Sths Vote: Yes-X-No-.J REVIEWED BY: On March 31, 1998, by Resolution 18943, the City Council authorized the Mayorto execute a contract for engineering plan review services. On May 26, 1998, by Resolution 19019, the City Council approved the hiring of Donna Snider as a temporary Expert Professional to supplement City staff efforts to respond to the ongoing land development activities. RECOMMENDATION: That Council; a) Authorize staff to extend Donna Snider services and to hire three additional Temporary Expert Professionals, and appropriate $ 81,120 to account 100-1422-5105; b) Reappropriate $ 50,000 to account 100-1422-5201 for engineering consultant services based on receipts received from developer deposits. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The subject of additional staffing needed to respond to the unprecedented surge in land development activities has been brought before the City Council twice since March 31 of this year. Working with the HunJan Resources Department, the Engineering Division was recently able to hire one Civil Engineer and two Assistant Engineers to fill vacant positions. Currently, all land development related and budgeted positions have been filled. Those include four Civil Engineers and six Assistant Engineers. Status of Land Develo.vment Activities. Currently, the Engineering Division's land development section is actively processing 51 Final and Parcel Maps through the entitlement process. These Maps encompass 2,176 dwelling units and require approximately one hundred separate agreements. In addition, the land development section is currently reviewing 62 grading and inIprovement plans with an estimated construction cost of $46,000,000 (mostly for infrastructure facilities to be owned, operated and maintained by the City); Processing land development related assessment and fmancial districts totaling approximately $23,800,000; Processing the formation of 5 Open Space Districts with a total annual budget of $2,800,000 (In contrast, the total 17-1 Page 2, Item..l.L Meeting Date 8/04/98 annual budget of our existing 25 Open Space Districts is $1,850,000); Reviewing and processing the engineering elements of all ongoing EIRs, SPAs, TMs and Public Facilities Financing Plans PFFPs. Staff has progranuned these activities around the land development section core function of providing public services and public assistance. Assessment of Staffinl1 Level During times of heated land development activities, a combination of the following factors dictates staff's ability to review plans and process entitlements within mandated time limits: 1- The quantity and size of active projects. 2- Market driven and aggressive processing schedules desired and demanded by developers and builders. 3- Internal quality control checks and balances to ensure high caliber products meeting City' s standards. The existing engineering staff working on various land development projects can provide an aggregate of 1460 hours per month, based on an average of 1750 productive work hours per person annually. The City's contract with Willdan & Associates and the hiring of a single Temporary Expert Professional has provided additional 744.5 and 280.5 hours respectively throughout July 16, 1998. This outside support was essential to supplement engineering staffing shortages that have persisted since January of this year. The ongoing surge in land development activities is obviously market driven and was not predicted to be at this magnitude by either the developers or the staff. Attached as Exhibit" A" is a workload table summary of active land development projects. Concurrently, various developers and builders want to secure Map entitlements by the end of October of this year. Staff has been working with the developers to set priorities for their projects' processing schedule to allow staff to focus on critical path issues. To confront the short term staffing needs, Staff recommends retaining Ms. Donna Snider for an additional 480 hours or 60 working days and hire, if qualified individuals can be found, three additional Temporary Expert Professionals for 480 hours each for a grand total of 1920 hours. This amounts to a 40 % increase in staffing level for the next three months to assist the existing land development staff in processing ongoing projects. Temporary Staffinl! Options In order to provide the necessary staff to process the current extremely heavy work load staff has looked at the following options: 1. Hire additional Temporary Expert Professionals ( at the Assistant Engineer II level). 2. Attempt to renegotiate a contract with either the previous engineering consultant or a new firm to provide staffing on site at the City offices. I?-~ Page 3, Item-.11 Meeting Date 8/04/98 3. Negotiate a contract for engineering consultant services to be provided off-site at the consultant's offices. The active land development market has contributed to the region's severe shortage in trained and qualified Civil Engineers. Staffs preference is the first alternative, but because of the uncertainty of finding qualified individuals who are willing to take a temporary position, and/or the ability to find consultant who are willing to place their people off-site, staff also recommends preserving all of the above options to meet the land development staffing needs. Because there will only be two City Council meetings in August, staff is asking for this flexibility in meeting the staffmg needs. Related to the first option, staff has been informed by several consulting furns that they are bringing people to San Diego from offices in other areas because they carmot find a sufficient number of qualified individuals in this area. The Public Works Department is working with the Human Resources Department to advertise and recruit qualified engineers to fill the Temporary Expert Professional category. However, because of our experience and that of consultants there is a concern that qualified individuals are available and willing to take a temporary position if more secure employment is available to them. Should staff fail to recruit qualified engineers, then staff will attempt to negotiate a contract with engineering consultants to provide us with temporary engineers to work on our premises. Initially, staff will attempt to renegotiate a contract as an extension to our existing agreement with Willdan & Associates approved by Council on March 31, 1998 by Resolution 18943. However, this may not be feasible because of Willdan's inability to provide full time staffing beyond the scope of their original contract and to their lack of local qualified engineers. Willdan has also indicated that they are not particularly desirous of extending the contract. Staff would then attempt to negotiate a satisfactory contract with another firm. Last, it might become necessary to enter into a contract with professional consultants for engineering plans to be sent outside City offices for review in consultants' offices. Most consultants prefer this arrangement because it provide them with flexibility to allocate their staffmg resources. However, staff considers this option as least desirable because of uncertainty regarding adequate performance by consultants, potential compromise to quality control due the complicated nature of most of our developments and lack of on site city supervision, lack of a single point of contact to developers and their engineers and, fmally, an inability for City staff to monitor the work for cost effectiveness. Willdan & Associates Contract Willdan & Associates team started working for the City in early May 1998 under an agreement approved by the City Council on March 31, 1998 by Resolution 18943. Under the same Resolution, Council appropriated $50,000 to pay for Willdan's services. Because the work by Willdan's staff took place in May and June and they did not send us a bill until July, no money was paid out last fiscal year. Therefore, the funds previously appropriated in last year's budget were not encumbered or expended 17 - ..3 Page 4, Item J '1 Meeting Date~ and were released at year's end. A reappropriation is now needed to pay for Willdans' services which will be reimbursed to the City from developer deposits. FlSCAL IMPACT: The entire cost of these Temporary Expert Professional positions including Full Cost Recovery Factor is paid by developers deposits. This appropriation amount will cover 480 hours, or a total of 60 working days of a Project Manager position, currently filled by Donna Snider, at an hourly rate of $55.00 and 1440 hours, or a total of 60 working days of Project Engineer positions, at a maximum hourly rate of $38.00. Developers' deposits will fully refund the General Fund. 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'" :: ;:;, ~ o ~ 0 ~ ~ ~ :;: ~ ~ ~ 15 s e; ~ _ l",I) Ol :;: " ~ ~ ~ ~ o ~ a ~ ~ \0 ~ ~ ~ 00 a- t";- ~ I ~ ffi ~ ffi ~ o :; :'Ii 17-ID EXHIBIT "B" COUNCll.. AGENDA STATEMENT ITEM m: Item Meeting Date 3/31/98 Resolution I !'t'l-'Waiving the Consultant Selection Policy and approving agreement form with a professional engineering consultant for land cL'"Velopment plans review, authorize the Mayor to execute the contract, and appropriate funds SD"BM111t;D BY: Director of Public works# City Manager (4/5ths Vote: Yes X No_) REYIEWED BY: .~:'\. , Tne eastern 1=iLOries of the City of ChuJa Vista are cmrently experiencing aggressive land development a...-rivit:ies. The e},..tensive p]~nninE efforts for Otay Ranch and other projects are cnlmin~ting now with :final engineering plans, engineering studies, :financing districts and many improvement se...'"llrity agreements. Staff is mandated by the Subdivision Map Act strict time limits on review and processing of improvement plans. Temporary "extension of staff" by outside consultants is re::o=ended as an interim solution to acco=odate and react to the surge of Land Development a.."ti\'ities and to compl\' with the Subdivision Map Act. Because of the time necessarv ... .. .. .. .. to select a consultant throu,c:rh the formal consultant selection process and the i=ediate need for additional staff 10 review maps and plans it is impractical to follow the Consultant selection procedure. RECOMM:EJ\"'DATION: That the City Council waive the Consultant Selection Policy and approve the agreement form with professional engineering consultants for plan review and 1emporary exrension of staff services and authorize the Mayor to execute a contract for plan review services in substantially the form attached heterto and approved by the City Attorney, and appropriate $50,000 to accoun~ -520 I based on receipts received from developer deposits. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. 10"\ DISCUSSION: The Land Development section is responsible for ensuring that all infrastructure facilities are constructed according to City's standards and that the final maps' entitlement process is complete, timely and comprehensive. Staff review grading plans, improvement plans, :final maps, assessment disrricts' formation and various engineering studies. In addition, Land Development staff members work as project m~n~Eers and project engineers to streamline the entitlement process. The ongoing land development activities in the City have created a substantial dem~mi on staff time resources. The demand on staffing resources is further complicated when coupled with a reduction of existing staff due to a combination of retirement, resignation and internal promotions. The Land Development section, in the Engineering Division of the Department of Public Works, has cmrently a budgeted staff of ten engineers including one permit engineer, three civil engineers and six assistant engineers. Currently, only seven positions are filled out of ten budgeted positions. Those " -II Page 2, Item Meeting Date 3/31 198 in::lUae one permi1 engineer. TWO civil engin=s and four assistant engineers. The Engineering Division has utilized several changes to react to the ongoing surge ofland development activities including: A SIIi= plan submittal requirement to reduce nmnber of plan checks cycles, overtime work by the land d..'"Velopment sta:ff; 1emporary transfer of an assistant engin= from the Advance Phmnin~ Section lD the Land Development Section, establ;~hmP.Tlt of an additional engineering staff team, within Rvailable engineering resources from other sections, to work on overtime basis in support of plan checking activities in addition to internal reassignment of work activities from the subdivision group lD the permits group of the Land Development section. Tnis is impacting the abiliry of other sections to complete critical assigned tasks. In January 1998, a total of 434.5 staff ho= in overtime and "borrowed" staff VIlas required to handle existing worlJoad. In F ebroar)" 1998. the additional overtime amounted to 384 hours. The figures for the last 5 months of 1997 are as follow: August, 180; September, 127; October, 151; November, 384; December, 356 hours. The Hmnan Resources department is actively recruiting additional engineers to fill vacant "positions - . in the Land Development section. However, to ensure excellent candida:tes, the recruitment process is l""gtby. Also, newly hired employees will typically require some training time to become familiar witb our standards and all of the complicated engineering issues related to ongoing projects. Be::ause of the impact on existing staff of that magnitude of overtime, 5lllff recommends that the City retain oUtside private consultants, on a temporary basis, to assist 5lllff in the engineering plan review process. Tne 5lllff recommendation includes the follov.>ing specific measures to guarantee /""l adequate, timely and predictable review: 1. The agreement is to be entered for an initial 60 working days, then extended biweelJy thereafter depending on the Land Development worlJoad with the consultant's 5lllff to be assigned on an as-needed basis. The agreement is limited for a maximmn of one year depending on the pace ofland development activities. 2. Selection is based on the qualifications of plan checkers and their knowledge of our standards. 3. Plan review will be conducted on City premises to allow for accessability to research material.s and for a single point of contact to developers and their engineers. 4. The selected consultant does not currently process any land development plans with the City to eJiminMP any potential conflict of interest. ...) The Subdivision Map Act, Section 66456.2 of the Government Code, has mandated specific rime limits on local agencies processing of improvement plans. The time limit mandated by the Subdivision Map Act is 60 working days. Several major developers have requested the City to contract or employ a private entity or persons on a temporary basis to perform services necessary lD permit the City to meet the time limits. Because of the time necessary lD select a consultant through the standard selection process, it is impractical to follow the consultant selection procedure. Therefore, it is recommended that the City's Consultant Selection Policy (policy No. 102-05) be /7-1 :J... Page 3, Item Meeting Date 3/31/98 waived and the Mayor be authorized to execut:: the contract with a private engineering consultant for plan review 5..'"TVices in subSIaIltially the form attached hereto and approved by the City Attorney. The Selection Process Staff contacted six private engineering companies meeting the following essential criteria: Firms are not processing engineering plans for land cL'"Velopment in the City of Chula Vista; the contacted :firms are reputable large companies with sufficient staffing resources to allow for this emergency work and; Firms are familiar v.>ith Chula Vista and regional engineering design requirements. Staff will receive Lett..""IS Of Interest (LOT) from these engineering companies detailing their qualifications and showing initial cost proposals. In consultation with developers, a selection committee consisting of engineering staff members will interview every interested company and make a recommendation based on qualifications. Then staff will negotiate a cost proposal based on an hourly rate with the top nmked consultant and reach a contract as approved by this resolution. FISCAL IMPACT: The entire cost of this contract including Full Cost Recovery Factor is paid by developers cL'"POsits. For the initial 60 working days, the City would obtain the assistance of three engineering professionals on a full-time basis. Should the negotiated hourly rate be $75 per hour, the contract total for the initial 60 working days period would be $36,000. It is estimated that the amount will not exceed $50,000 through June 30, 1998. If the amount does exceed $50,000, staff will return to Council for an additional appropriation. Only a prorated portion of the City's Full Cost ...-c-., R=very Factor (FCR) will be applied to this contract to pay for the use of City's premises and City support staff overhead charges. Attachments: Exhibit A - Plat showing current Land Development section Workload Exhibit B - Agreement Form Exhibit C - Letter from Otay Ranch Co. dated 3/23/98 ,,~ ~ ~O'" SA:EY-028 H,1II0MElENGINEERIAGENDA\LD-CNSL T.5A !A.~ "'J '", J :..:.:,..-" 17- /3 -;COUNCIL AGENDA STATEMENT Item Meeting Date 5/26/98 SUB:MJ.nl!;D BY: Resolution I 'I ~ 11 Approving the hiring of a Temporary Expen Professional and appropriating funds Director of Public Works ~ City Manager ITEM TITLE: REVIEWED BY: On March 31, 1998, by Resolution 18943, the City Council waived the consultant selectio process and authorized staff to negotiate contracts with various engineering consultants for Pl~::~ew services. Staff negotiation with several companies reached an impasse due either to the Co tants' expensive wage rates or their insistence on revising our standard two party agreement pe .. to the hold harmless clause. I RECOMMEND "TION: That Council authorize staff to hire Donna Snidp1" as a Temporary Expen Professional at $55.00 per hour, and appropriate $ 20,000 to account 14'\)t~1.61 based on receipts received from developer deposits. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Engineering Division's Land Development section has been facing unprecedented number of subdivision projects requiring immf'liiate plan check review and permit processing. Currently, only six positions are filled out of ten budgeted positions. Those include one permit engineer, two civil en.,oineers and four assistant engineers. Under Council directions, staff negotiated a contract with Willdan Associates for plan review services to provide us with three assistant level engineers working in-house as an "extension of staff" arrangement. The Willdan Associates team started working for us under the subject agreement on May 5, 1998. In addition, staff has been trying for six weeks to negotiate a contract with Daniel, Mann, Johnson & Mendenhall, DMJM, to send us a qualified Project Manager (Civil Engineer level) to work along with and supervise the engineering team provided by Willdan Associates. Staff negotiations with DMJM and various other consultants reached an impasse due either to Consultants' expensive wage rates or their insistence on revising our standard two party agreement penaining to the hold harmless clause. Under a professional consultant arrangement, we have been negotiating hourly billing rates between $85.00 and $110.00 per hour for a project manager designation. During our negotiation with DMJM, that firm required a contract at $99.00 per hour to provide us with a qualified Project Manager. Our negotiation with DMJM was unsu=ssfuJ in lowering that rate. In addition, as stated above, they would not sign the standard two party agreement without modifications to the hold harmless clause which were unacceptable to the City. /7- PI Page 2, Item Meeting Date 5/26/98 As an alternative to DMJM, we recommend the hiring of Ms. Donna Snider to work as a Project manager on a short term basis under the "Temporary Expert Professional:' designation. Ms. Snider was a regular, full time employee of the City for nearly ten years. When she left City employment in June 1996 for personal and family reason she was a Civil Rngi~ (project manager) and had been performing excellently in that position. In November 1996 she returned to work for the City on a part time, as needed basis, as a Temporary expert professional at the Civil Engineer level doing work on subdivision plan and map checking. Ms. Snider worked at a salary rate of $26.10, which is the equivalent of the first step of the Civil Engineer pay scale. Again, due to personal and family reasons, after providing excellent service, she declined to continue that arrangement in November 1997. Ms. Snider has agreed to return as a Temporary Expert Professional to assist us during this period, but only at a rate of $55.00 per hour. We would, therefore, like to offer Ms. Snider that hourly rate to perform the exact type of work DMJM would have provided ns at $99.00 per hour. Ms. Snider is filmili"T with the City procedures and policies and does not require any training to perform the assigned tasks. Mrs. Snider's work started on May 18 at the pay rate of $28.77 per hour for Temporary Expert Professional (E step - Civil Engineer). This pay rate can be approved by the City Manager. Because of our time problem in preparing this issue to Council, Ms. Snider is willing to work one week at the lower rate, but she does not wish to continue working for the City at the lower rate. City Council Policy Number 102-05 - Consultant or Other Services regarding hiring of former employees states, in part: "During the first year after termination with the City, any employee who is hired back on a contract basis shall be compensated at a maximum hourly rate equal to the salary and benefits level at time of termination. After the first year, all requests to contract with a former City employee at an hourly rate in excess of the employee's salary and benefit rate at time of termination should be brought to Council for approval. " According to our Human Resources Departmeut, the employment market for qualified engineers at this time is extremely austere and expensive. We are experiencing severe engineering personnel shortages during the apex of Land Development activities. Nevertheless, we are actively working with Human Resources Department to fill the several vacant positions. We have offered one vacant Civil Engineer's position to a qualified civil engineer, but that cannot start until June 19, 1998 due to a previous commitment. We also have established a new list of candidates for three vacant Assistant Civil Engineers positions and we are pJ.nning to make employment offers in the immediate future. FISCAL IMPACT: The entire cost of this Temporary Expert Professional position including Full Cost Recovery Factor is paid by developers deposits. This appropriation amount will cover approximately 363 hours, or a total of 45 working days, at an hourly rate of $55.00. Developers' deposits will fully refund the General Fund. By offering Mrs. Snider this position, staff can apply a higher Full Cost Recovery FCR factor to pay for our own overhead expenditures. By Resolution 18943, The City Council appropriated $ 50,000 to cover the contract cost for professional engineering consultants to be reimbursed also through developers' deposits. Staff negotiated an hourly rate of $ 68 per hour with Willdan Associates for the lower level assistant engineer position for a total of 45 working days. H:\HOME\ENGINEER\AGENDA\lEP .SA 17-6 RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE HIRING OF ADDITIONAL TEMPORARY EXPERT PROFESSIONALS AND APPRO- PRIATING FUNDS WHEREAS, on May 26, 1998, by Resolution 19019, the City Council approved the hiring of Donna Snider as a temporary Expert Professional to supplement City staff efforts to respond to the ongoing land development activities; and WHEREAS, to confront short term staffing needs, staff recommends retaining Ms. Donna Snider for an additional 480 hours or 60 working days and hiring three additional Temporary Expert Professionals for 480 hours each for a total of 1920 hours. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby authorize staff to extend Donna Snider services and to hire three additional Temporary Expert Professionals, and appropriate $81,120 from the unappropriated balance of the General Fund to Account 100-1422-5105, based on receipts received from developer deposits. Presented by Approved as to form by John P. Lippitt, Director of Public Works M. Kaheny, City At ney H:\home\lorraine\cdrive\rs\tempexp. ~11J - J RESOLUTION NO.~1f RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REAPPROPRIATING FUNDS FOR LAND DEVELOPMENT PLANS REVIEW SERVICES WHEREAS, on March 31, 1998, by Resolution 18943, the City Council authorized the Mayor to execute a contract for engineering plan review services with Willdan & Associates and appropriated $50,000 for said services; and WHEREAS, however, the City and Willdan did not reach final agreement regarding insurance requirements until the end of June and the funds previously appropriated in last year's budget were not encumbered or expended and a reappropriation is now needed to pay for Willdans' services; and WHEREAS, the amount needed is $50,000. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby reappropriate $50,000 from the unappropriated balance of the General Fund to Account 100-1422-5201 for engineering consultant services, based on receipts received from developer deposits. Presented by Approved as to form by John P. Lippitt, Director of Public Works Kaheny, H,\home\lorraine\cdrive\rs\tempexp. ,., EXHIBIT "A" \ i i i ., 8 ~ 8 8 8 .s " .s .s .s .s 8 8 8 .!l .!l - .!l .!l .!l .!l ] ... ... ] 'tl ] II~ ] 1 1 1 1 ~ 1 ... ... ~ ... " " ] ~ ... ... ~ u :i u .8 I ] u .8 e e II II .l! .. e u u u u u u u .. ~ '" '" '" '" '" u U u ~ 'E . . El El ~ '8 "'" ~ ~ '8 - El El . . 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COUNCIL AGENDA STATEMENT REVIEWED BY: Item JfL Meeting Date 08104/98 RESOLUTION \ct, 3~ APPROVING AN AMENOMENT ANO RESTATEMENT OF THE EAST LAKE GREENS AFFOROABLE HOUSING AGREEMENT WHICH INCORPORATES THE EAST LAKE GREENS HOME OWNERSHIP PROGRAM Community Development Dire:t~.~ 5 ' City Manage})\<.. ~ v.:;'\ (4/5ths Vote: Yes_ NoXI ITEM TITLE: SUBMITTED BY: BACKGROUND: On July 25, 1995, the City adopted an Affordable Housing Agreement ("Agreement") for Eastlake Greens by Resolution Number 17982. The parties entered into the Agreement as an initial means of implementing the low income housing requirement of the Eastlake Greens Tentative Map which stipulates that a low and moderate income housing program be established with the goal of providing 5% low and 5% moderate income housing units within the Eastlake Tentative Map area. On December 12, 1995, the City adopted the Eastlake Program as an Appendix to the Eastlake Greens SPA Plan by Resolution Number 18159. In accordance with that Agreement, the Developer's "Duty to Build" low income housing units required the Developer to have under construction no later than June 1, 1998, 112 qualified low income housing units. Under this agreement, the City had the right to withhold the issuance of any further building permits within Eastlake Greens if the Developer failed to perform according to the duty or conditional duty to build. Due to project development constraints Eastlake Greens was unable to meet its obligation within the established time. However, the City has continued to issue permits under the premise that an acceptable affordable housing project was to be developed within a reasonable period of time. Eastlake was aware that the June 1, 1998 deadline was approaching and has made a good faith effort to meet its obligation. Over the past year Eastlake has been continually working with staff in the Community Development Department and Planning Oepartment to propose a project that would be acceptable to the Eastlake community and the City. Initially, Eastlake proposed developing rental units, however, that product was too expensive to build based on market conditions and the community preferred a different product. The development of an acceptable proposal became a time consuming process which involved a number of community forums and numerous meetings with City staff and consultants. Eastlake then proposed a for.sale product that would meet the affordable housing requirements of the City and the community. Staff and Eastlake have been meeting on a regular basis to discuss the terms and conditions for amending the original Eastlake Greens Affordable Housing Agreement that would satisfy the Developer's affordable housing obligation. Attached as Exhibit A is a site plan of the proposed project. IS-- , Page 2, Item d Meeting Date 08104/98 RECOMMENDATION: That the City Council adopt the resolution approving an amendment and restatement of the Eastlake Greens Affordable Housing Agreement which incorporates the Eastlake Greens Home Ownership Program. BOARDS/COMMISSIONS RECOMMENDATION: The Housing Advisory Commission approved the Eastlake Greens Affordable Housing Program at the meeting of July 22, 1998. DISCUSSION: Affordable Housinlj Aoreement On September 5, 1997 Community Oevelopment staff began meeting with the developer for Eastlake Greens to review the housing requirement of the Affordable Housing Program. After numerous meetings and discussions on the type of product Eastlake Greens proposed to build, an agreement was made (subject to Council approval) between Eastlake Greens and City staff as to the terms and obligations Eastlake must satisfy prior to developing the property located immediately south of Eastlake High School (locator map attached as Exhibit B). To satisfy their affordable housing obligation of 130 units, Eastlake Greens proposes to build 187 "for.sale" condominiums. The additional 57 units may be used to satisfy the low.income obligation of other developers within the Eastlake community. This type of arrangement is not unique. McMillian was able to satisfy their affordable housing obligation by way of the Cordova project which resulted in additional units which are available as credits to meet the low income obligations of the developers. The purchase price of these units have been set with an afford ability level of $111,500 to $132,500. The purchase prices of these units is based on bedroom size and square footage and has been established to allow households earning at or below 80% of Area Median Income (AMI) to qualify for a mortgage loan. In addition to the purchase price set an affordable level, Eastlake Greens has agreed to subsidize the cost of the land. In order for Eastlake to market the units to low.income households, an Affordability Plan known as the Eastlake Greens Home Ownership Program ("Greens Program") has been developed by staff with the assistance of Pacific Housing Solutions, an affordable housing program consultant. The program will be implemented and administered by Eastlake and will be discussed later in this report. To assist Eastlake in marketing the for.sale units to low. income households, the City has agreed to provide financial assistance in an amount not to exceed $935,000 or, on average, $5,000 per unit. Funds in the amount of $549.400 were approved through the FY 1998.99 Community Oevelopment Block Grant and HOME budget process at the meeting of May 7,1998. The remaining balance of $385,600 will be budgeted from FY1999.00 HOME funds. J~-~ Page 3. Item g Meeting Date 08104198 The purpose of utilizing HOME funds for the Greens Program is the limitation of regulatory requirements in qualifying first-time home buyers. HOME program guidelines allow first-time home buyers the flexibility of qualifying for a home based on market lending conditions. If the City were to use low-Mod Housing funds for this program, Community Redevelopment law stipulates that a first-time home buyers housing costs cannot exceed 30% of their gross annual income. A household earning at or below 80% of area median income would not be able to qualify for a home under these circumstances. The remaining balance of $385,600 to be budgeted from FY 1999.00 HOME funds will not have a significant impact on the HOME allocation. Every year the City receives approximately $780,000 in HOME funds and there are no other proposed projects under consideration that would require the use of these funds. In addition, it was determined that the Eastlake Greens project would receive some City assistance and the funds would come from the HOME program. When proposals are received from developers, staff evaluates the type of project and determining whether it meets the needs of the community and the requirements of the Housing Element. In addition to HOME funds, the City has available low-Moderate Housing Set.Aside funds from the Redevelopment Agency which are used to finance housing projects. A key objective in the use of low.Mod and HOME funds is to leverage them with other public and private funding sources. Table 1 on the following page delineates the major component changes to the amended Agreement (attached as Exhibit C). ri -3 ,- Duty to Build Duty to Implement Affordable Housing Program Satisfaction of Tentative Map Condition No. 44 Development Permits, Maps and Documents Right to Withhold Permits Affordable Housing Credits City Assistance to Project Affordability Developer Assistance to Project Affordability Page 4, Item g Meeting Date 08104/98 TABLE 1 Amendments to Eastlake Greens Affordable Housing Agreement ijiU$liAij4~ijDltIAM~tll!lilil.Dltjr Developer was to have under significant construction 112 qualified low income units by June 1, 1998. Duty to Implement Affordable Housing Program not included in original agreement Satisfaction of Tentative Map Condition No. 44 not included in original agreement Development Permits, Maps and Documents not included in original agreement Right to Withhold Permits not included in original agreement Affordable Housing Credits not included in original agreement. City Assistance to Project Affordability not included in original agreement. Developer Affordability agreement Assistance to Project not included in original fi-1 Consistent with Council policy established for the Cordova project. Developer agrees to develop approximately 260 units which includes 187 low income housing units. Developer also agrees to the following milestones: 11) submittal of the tentative map no later than August 11,1998; 121 a site grading permit to be obtained by January 22, 1999; and 131 the first building permit obtained by March 23, 1999. Developer agrees to market and sell the units in accordance with the City's goals, policies and programs as contained in the Housing Element. Prior to issuance of the first building permit Developer shall cause builder to enter into an agreement with the City to implement the Greens Program. At least 130 affordable units shall be sold in accordance with the Greens Program by no later than 24 months after issuance of the first building permit; the remaining 57 units be sold by no later than 30 months alter issuance of the first building ermit. Any affordable housing units developed and sold in accordance with the terms of this Agreement shall be credited toward Developer's obligation to provide iow income housing units in an amount equal to 5% of the total residential units developed within Eastlake Greens. Developer shall, at its sole expense, prepare and diligentiy process all permits, agreements, plans, maps and other documents that are necessary to construct the project in the time frames set forth. City a rees to coo erate in rocessin Develo er's ermits for the roect. In the event Developer fails to perform any of its obligations the City shall have the right to withhold the issuance of any building permit for further construction within Eastlake Greens until Developer cures the default. Developer agrees to produce 187 qualified low income units. Upon agreement between City and Developer, the additional 57 units may be used to satisf the low income obli ations of other developers. 1 City agrees to provide financial assistance in an amount not to exceed a total of $935,000 or, on average, $5,000 per unit not exceedin 187 units. Developer agrees to process all approvals necessary for the construction and sale of the low income units in accordance with the Agreement and Greens Program. In addition, Developer acknowledges that additional developer assistance will likely include land contribution and ma include cash assistance. Page 5, Item r8'" Meeting Date 08104198 Eastlake Greens Home Ownershio Program As previously discussed in this report, Eastlake Greens has agreed to implement an Affordability Plan known as the Eastlake Greens Home Ownership Program ("Greens Program") to assist low-income first-time home buyers purchase units in the Eastlake Greens community. The Greens Program was developed by staff with assistance from Pacific Housing Solutions and has been approved by Eastlake Greens. As incorporated in the amended Agreement, the City has agreed, subject to City Council approval, to assist in providing financial assistance for the 187 low income units in an amount not to exceed $935,000 or, on average, $5,000 per low income unit. In order to be cost effective in assisting 187 first.time home buyers, a down payment and closing cost program has been developed. Assisting first.time home buyers with the down payment and closing costs associated with purchasing a home is a popular approach implemented by other cities such as National City, Santee, Escondido, and San Diego. Households earning between 60% and 80% of Area Median Income (AMI) most likely have the income to support a mortgage payment, but lack sufficient funds for the down payment and closing costs. Depending on the interest rate, the mortgage amount would range from $695 for the two.bedroom unit to $825 for the three-bedroom unit. According to the current Fair Market Rent Schedule (used for the Section 8 Program) published by the Department of Housing and Urban Development for San Diego County, current rents charged for a two.bedroom unit is approximately $691 per month to $960 per month for a three-bedroom unit. These are the allowable rents landlords can charge tenants who receive Section 8 assistance. Therefore, this program will assist those qualified home buyers who lack the down payment, to purchase a home in the Eastlake Greens community. Based on the purchase price range of $111,500 for a two.bedroom unit to $132,500 for a three-bedroom unit, $5,000 is expected to be a sufficient amount of assistance to help the home buyer purchase a home. In the event a low.income household needs an additional subsidy to qualify for the loan, Eastlake has agreed (in addition to writing down the cost of the land), to provide a cash subsidy. The $5,000 will be used to assist the buyer with a portion of the down payment and closing costs. The down payment and closing costs will be based on the sales price of the units. In order to promote a sense of pride in home ownership, it is the intent of the program for first.time home buyers to provide, at least in part, some of the up. front costs for the down payment and closing costs. In addition, the qualified home buyer will be required to attend a home buying seminar Funding Source The use of HOME funds for this program will allow the City the flexibility of tailoring the down payment and closing cost assistance for not only a particular development program, such as the Greens Program, but also for achieving home ownership opportunities for first-time home buyers in the City. The guidelines for the Greens Program (Exhibit D) was developed by staff with the assistance of Pacific Housing Solutions. The assistance program is designed to ri--S .' .~ Page 6, Item ff Meeting Date 08/04198 conform with all Department of Housing and Urban Development (HUD) HOME program guidelines, and upon approval by the City Council, will be submitted to Fannie.Mae for approval. As outlined in the HOME program guidelines, the City has two options when using HOME funds to assist first-time home buyers. Both options are discussed below. Option One. Recapture Provision Option One is an ongoing commitment to a first time home buyer program. Under the HOME guidelines for this option, the City may use the proceeds from the repayment of the City loan from the original buyer to assist another eligible first-time home buyer to purchase a home in the City of Chula Vista. Since the City and the developer are providing a subsidy to the buyer and not requiring repayment of the loan until the property is transferred or sold, the City Ideveloper loans are considered Silent Second loans. In addition. since HOME funds are providing assistance. the HOME Program guidelines stipulate a five year period of affordability for the buyer to remain in the home. Upon transfer or sale of the property under Option One, the City can do one of two things. First, the City can require the entire City loan to be repaid. This entire repayment would occur if there is sufficient equity or net proceeds from the sale of the home. Second. the City can reduce the HOME investment amount to be repaid on a pro rated basis for the time the home owner has remained in the home. This would occur if there was not sufficient equity or net proceeds from the sale of the home. Net proceeds are funds remaining after the first mortgage has been repaid minus the sellers original down payment and principal reduction of the first mortgage. and minus repayment of the City loan and the developer subsidy. Under the Greens Program, any net proceeds remaining (if any) from the sale of the home will be distributed in the following manner: 50% to the seller; 25% to the City; and 25% to the developer. The distribution formula will allow the City to have funds to recirculate to other first.time home buyers; the developer to recapture a portion of the land andlor cash contribution; and the seller to have additional funds available to purchase a non-subsidized home. The Greens Program is unique due to Eastlake providing subsidies in the form of land and lor cash. Under the HOME program, these subsidies are subject to recapture by the City. Upon recapture of these funds. the City can utilize these funds to recycle and continue to provide affordable housing opportunities for first-time home buyers. Attached as Exhibit E is an illustration of a hypothetical buyer purchasing a home under Option One. utilizing the City and the Eastlake loans. and staying in the home during the affordability period of five years. As an incentive to the home buyer to remain in the home for the five year affordability period, the Greens Program stipulates that the closing cost assistance will be not have to be repaid. li-' ~ , Page 7, Item $ Meeting Date 08104/98 Option Two. Resale Provision Under Option Two, the initial property obtained by the first.time home buyer with HOME funds must remain affordable for the five year period of afford ability . In addition, the subsequent purchaser does not have to be a firsHime home buyer but must be a low.income family and occupy the property as a principal residence. The sale of the property by the original first.time home buyer or a subsequent purchaser during the period of affordability must also be accomplished in a manner that will allow the seller to receive a "fair return" on their investment, while ensuring that the unit will be "affordable" to the new low.income purchaser. Since the HOME regulations do not define what is considered a "fair return" on their investment, this puts the City in a difficult position to determine what is considered a fair return and what is not. With the current trend in rising property valuations this could be a difficult situation for the seller if the property is transferred or sold during the period of affordability. As their property increases in value, the sales price of the unit must be maintained to accommodate a subsequent low.income purchaser. This option will make it necessary for the City to monitor the sale of each of the 187 units to ensure that the subsequent purchaser is low.income and that the price is affordable to them. This arranged sale often necessitates considerable City involvement and the transfer or sale of the property is not conducive to the methods lending institutions use to qualify a buyer on the open market. In addition, the developer's contribution of land and/or cash subsidy is not subject to recapture under Option Two. The purpose for recapturing the developer subsidy is so the City can recirculate the funds to assist a larger number of low.income first.time home buyers. Recommendation The Greens Program was developed using the guidelines as described in Option One since it will not have a major impact on staff or the home buyer. With the number of units expected to receive assistance, Option One will not require the depth of monitoring as would be required from Option Two and the home buyer will not be restricted to selling their unit to another low.income purchaser. In addition, the seller will have acquired additional funds to purchase an unsubsidized home. FISCAL IMPACT: Funding for this program will be budgeted from the HOME Investment Partnership program in the amount of $935,000 ($549.400 from FY 1998.99 HOME funds and $385,600 proposed for FY 1999.001. There are no proposed projects that could otherwise benefit from the use of the HOME funds at this time, and if some emerge then the Low.Mod fund has substantial resources to be used for those projects. All proceeds received from repayment of the loans will be regenerated to provide continued home ownership opportunities for firsHime home buyers in the City of Chula Vista. The Greens Program provides for a lending institution to monitor the loans so the impact on staff will be minimal. Attachments: Exhibit A Exhibit B Exhibit C Exhibit 0 Exhibit E Eastlake Greens Site Plan Locator Map Amendment to Eastlake Greens Affordable Housing Agreement Eastlake Greens Home Ownership Program (bR1I-F-'f') Option One Recapture Pro Forma 1<6 - '1 IJEAI H:IHOME\COMMOEV\STAFF.REPI07~28~98\GREENS.113IJuly 29, 199812:29pmll 07/29/98 WED 16:06,FAI ~i'l ~ i WESTERN PACIFIC 141014 'Qlo:>t'llQ 9cn::lH:N:l'i4~ ., (; F ~ III I . 'I ,Jt 1-,. 1~-8" ~,.~~A.",:--,_" .',',_...", ,;, ~-,:,,:,.-~.. , . . '"". '"....,.. .' ~',. ....~ ."'..._..'~\".'t"'N"'~:~"""!'.'_' . .... . , . ~ It I I ' , I I ~ ~.:;... . , ' I , ~ Ii I I I, I I ~d ~~II +~EII Imll m: i[wl!'1 . 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U \ L_u...! t ;'1 j :--... I. n' _ i ." ....'. r-n_......... ~ 8 It ~ 'IT-- ? EXHIBIT A 141003 ~;f~ II.! tit ~ '< .'" I; .... ~ ::.n ~ 'n ~ ..., . " A' R '" t( -~.. ~a ~l ~! I -~ I-II ,!;! AI! ~. I~ i I I~J , , 'T"~ II !! a I! ! , .' I ~ l'lt . 3 I ~ 1;;: _:! I ~I ~ t, a'" f ! ~! .& , II . I 11.1 i i 1 !..I .:01 , . I ii, : I i i I 1.1' ~ "l " i,'" . r;l. ~i ';ii " 98' WED 15:48 FAX 07/29/ WESTERN PACIFIC I4J 002 EXHIBIT A I , ,l- I , , j I , 1 .~ " / , , I I L ,..~'..:..~ ."""~' .":.:. NOT SCANNED 11 \ 1 ~ ./' .' / r' ., I I . , .' J. .. 1....-- , " ............~'~. . IA "'-'--"> '. ," /I~-~ / 'j. ./. /. ... /' '. "'. ,",! , . "',' . . . ___', J ':. I. .... . . ,: I " .......- -. . I'. ; -I. ; , i ""1<-.- EXHIBIT B EASTLAKE NEIGHBORHOODS AND SURROUNDING COMMUNITIES Salt Creek Ranch EASn.AKE VlUAGE CENTER PItldor 1/01I"1' EASnAKE BUSINESS CENTER m ! EASnAKE f GREENS t: " 1 Otay Ranch Village 5 Eastern Urban Center Lower Dlay Reservoir ly.-I/ CHULA VISTA PLANNING DEPARTMENT LOCATOR ~tsk. Eastlake Affordable Housing Easflake AHordable Housing Task Force Q) . Task Force ~u..,: To adopt an affordable housing program ~Wffil, Eastlake for ~;8 -9/18 _ /1 ___ SCALE, FIlE NUMBERo NORT~ As Indicated PCM - 95 -15 EXHIBIT C CITY CLERK OF CHULA VISTA ) ) ) ) ) ) ) ) ) ) Recording Requested by: When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Clerk ------------------------------------------------------------------ AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMENT [Eastlake Greens] This AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into effective as of August 4, 1998 ("Effective Date"), by and between the Eastlake Development Company, a California general partnership ("Developer") and the City of Chula Vista, a California municipal corporation ("City"), with reference to the following facts: A. Developer owns approximately 830 acres of that certain real property, described on Exhibit "A" attached hereto and incorporated herein by this reference, located in the Eastern portion of the City of Chula Vista ("Eastlake Greens") . B. On July 18, 1989, the City approved a Master Tentative Map for Eastlake Greens by Resolution Number 15200 ("Eastlake Tentative Map"). Condition number 44 of the Eastlake Tentative Map required that a low and moderate income housing program with a goal of providing 5% low and 5% moderate housing units ("Affordable Housing Program") within the Eastlake Tentative Map area be established. (A 1% deviation resulting in the construction of 4% low and 6% moderate income housing units was originally deemed acceptable) . The City deferred the Affordable Housing Program pending further evaluation of the City's General plan density policies. C. On December 12, 1993, the City adopted a General Plan Amendment (GPA-93-04) by Resolution Number 17309, which reinstituted the Affordable Housing Program previously established by Condition Number 44 of the Eastlake Tentative Map. 1 IT-/~ ~oCf()- Id, I ~ \ 9 \ 3S D. On July 25, 1995, the City adopted the Affordable Housing Program for the planned Community of Eastlake ("Eastlake Program"), including an Affordable Housing Agreement ("Original Agreement") made on the same date, by Resolution No. 17982. The parties entered into the Original Agreement as an initial means of implementing the low income housing requirement of Condition No. 44 of the Eastlake Tentative Map. On December 12, 1995, the City adopted the Eastlake Program as an Appendix to the Eastlake Greens SPA Plan by Resolution No. 18159. E. In accordance with the Original Agreement, the Developer's duty to build low income housing units requires that Developer have under significant construction no later than June 1, 1998, 112 qualified low income housing units at the location and in a configuration and design approved by the City. The Original Agreement further establishes a Conditional Duty to Build 160 qualified low income housing units should Developer apply for a 2550th building permit within Eastlake Greens. City has the absolute and unfettered right to withhold the issuance of any further building permits within Eastlake Greens if Developer has failed to perform according to the Duty or Conditional Duty to Build. F. The parties now desire to amend and restate the Original Agreement to provide specifically for the development of qualified low income housing units in order to implement the requirements of Condition No. 44 of the Eastlake Tentative Map and the requirements of the Eastlake Program (the "Greens Requirement") NOW THEREFORE, the parties agree as follows: 1. Definition. Unless otherwise indicated, for purposes of this Agreement, the term "low income housing" shall mean housing units which are affordable to qualified families whose income levels are at or below 80% of Area Median Income as defined by HUD guidelines of the regional median income. 2. Duty to Build. Developer agrees to cause to be developed a multi-family housing project ("Project") of approximately 260 units which includes 187 low income housing units ("Affordable Units"). The Project shall be developed on certain real property located within Eastlake Greens identified as Parcel R-26 on the Eastlake Greens SPA (" proj ect Property"). Ci ty shall have reasonable approval rights over the proj ect Builder (" proj ect Builder"). The Project shall be developed in substantial 2 ler -13 conformance with the site plan, elevations, and floor plans attached hereto as Exhibit B. Project development shall proceed in accordance with the following milestones: (1) the tentative map for Parcel R-26 shall be submitted to City by no later than August 11, 1998; (2) a site grading permit shall be obtained by no later than January 22, 1999; (3) the first Project building permit shall be obtained by no later than March 23rd, 1999. Developer shall thereafter diligently pursue completion of the construction of the Project. Developer shall cause the construction of the Project regardless of any further or additional development taking place from the date of this Agreement within Eastlake Greens. 3. Duty to Implement Affordable Housing Program. Developer shall cause the Affordable Units to be marketed and sold in accordance with the City's goals, policies and programs contained in the Housing Element of the General plan and the Eastlake Greens Affordable Housing Program ("Greens Program") attached hereto as Exhibit C and incorporated herein by this reference. In the event that Fannie Mae determines that theGreens Program loan provisions fail to conform to applicable Fannie Mae guidelines, both parties agree to modify the Greens Program to the extent necessary to obtain Fannie Mae conformance. Prior to issuance of the first building permit Developer shall cause the Project Builder to enter into an agreement with the City for the implementation of the Greens Program. At least one hundred thirty (130) Affordable Units shall be sold in accordance with the Greens Program by no later than twenty four (24) months after the issuance of the first building permit for the Project; the remaining fifty seven (57) Affordable Units shall be sold in accordance with the Green Program by no later than thirty (30) months after the issuance of the first building permit for the Project. 4. Satisfaction of Tentative Map Condition No. 44. Any Affordable Housing Units developed and sold in accordance with the terms of this Agreement shall be credited towards Developer's obligation to provide low income housing units in an amount equal to 5% of the total residential units developed within Eastlake Greens. 5. Development Permits, Maps and Documents. Developer shall, at its sole expense, prepare and diligently process all permits, agreements, plans, maps and other documents that are necessary to construct the Project in the time frames set forth herein, or shall cause such actions to occur. City agrees to cooperate in processing Developer's permits for the Project. Any unreasonable 3 1<;- - II-( delay caused by City in this regard shall not be cause for City declaring Developer in default hereunder and Developer's performance schedule may be adjusted accordingly provided that Developer has used, and continues to use, its best efforts to cause Project completion in a timely manner. 6. Right to Withhold Permits. In the event that Developer fails to perform any of its obligations hereunder, in addition to any and all other rights and remedies the City may have at law or in equity, the City shall have the absolute and unfettered right to withhold the issuance of any building permit for any further construction within Eastlake Greens until Developer cures such default and guarantees timely completion of the Project on terms and conditions required by City. 7. Affordable Housing Credits. City and Developer acknowledge that the development of the Project in accordance with the terms of this Agreement will create at least fifty seven (57) Affordable Units in excess of the Greens Requirement ("Surplus Units"). Subject to future agreements between City and Developer, and subject to City affordable housing policies and needs assessments as they may be amended from time to time, City and Developer agree that the Surplus Units may be utilized to satisfy future Eastlake affordable housing obligations, the obligations of other "smaller projects" (as defined by City), and other projects that City determines may have a substantial hardship in providing new low income units on site. 8. City Assistance to Project Affordability. In recognition of the need to assist the private market to accomplish the goal of providing low income affordable home ownership, the City shall provide financial assistance in accordance with the Greens Program to assist the 187 Affordable Units in an amount averaging $5,000 per low income assisted unit and not to exceed at total of $935,000. Should City and Developer mutually agree that it is in their joint interest to develop low income units exceeding the 187 Affordable Units, City will use its best effort to provide necessary additional assistance comparable to that provided for herein. City also agrees to use its best efforts to expedite processing of approvals and to diligently carry out its role in the Greens Program. 9. Developer Assistance to Project Affordability. Notwithstanding the City assistance described herein, Developer shall provide such additional assistance as is necessary to 4 ,.,. - ~ construct and sell the Affordable Units in accordance with the Greens Program. Developer acknowledges that required Developer assistance will likely include land contribution and may include cash assistance to assist households at and below 80% of the Area Median Income. Notwithstanding anything contained in this Agreement, it is the Developer's sole obligation to satisfy its Duty to Build the low income units. Developer acknowledges and accepts the risks attendant to developing and selling the low income units according to the Greens Program. 10. General Provisions. a. Authority of SignatoriE>R The individual signing this Agreement on behalf of the City warrants that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of the City in accordance with a duly adopted resolution of the City Council of the City and (ii) this Agreement is binding upon the City in accordance with its terms. Developer and each individual signing this Agreement on behalf of Developer warrants that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of Developer, in accordance with a duly adopted resolution of the board of directors of the corporation or in accordance with the bylaws of the corporation, and (ii) this Agreement is binding upon the corporation in accordance with its terms. b. COllntE>rpartR This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one instrument. c. i'\pplir.able T,aw This Agreement will be construed and enforced in accordance with the laws of the State of California. d. Sur.r.eRRorR All terms of this Agreement will be binding upon and inure to the benefit of the parties and their respective administrators or executors, successors and assigns. e. Modifir.ationR. No modification, waiver or discharge of this Agreement will be valid unless the same is in writing and signed by the parties of this Agreement. f. EntirE> AgrE>E>mE>nt This Agreement contains the entire agreement between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written are merged herein. 5 (U - lID g. AtrorneY'R feeR and r.ORtR. If either party commences litigation for the judicial interpretation, reformation enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court and other costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. h. RxhibitR All exhibits referred to in this Agreement are attached, and are a part of, this Agreement. i. CaptionR. Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement. j. Rer.onli nc;,. The parties hereto shall cause this Agreement to be recorded with respect to unoccupied portions of Eastlake Greens in the Official Records of the County of San Diego. IN WITNESS WHEREOF, City and Developer have executed this Agreement effective as of August 4, 1998. [NEXT PAGE IS SIGNATURE PAGE] 6 Ii-- \'1/ /8-,2/ EXHIBIT A EASTLAKE NEIGHBORHOODS AND SURROUNDING COMMUNITIES Salt Creek Ranch .~,D' ~Q'T SC~:.u- ~. EASTlAKE vu.u.GE CENTER Proeto< Vall"" Clay Ranch Village 5 Eastern Urban Center ." ~ Lower Olay ReseNOir Ji-N CHULA VISTA PLANNING DEPARTMENT LOCATOR ~~~, Eastlake Affordable Housing . Eastlake Affordable Housing Task Force C) Task Force ~u..,: To adopl an affordable housing progrcm ~,!/jg, Eastlcke for astlcke. I SCALE, FILE NUMBER: 'I -~ ---- . NORTbl As Indicated PCM-95-15 " "-' 07/29/98 WED 16: 16 FAX !i! WESTERN PACIFIC EXHIBIT B 141021 I H~ I , '1 'UOOU " ~ i I j 'EltO:l{12Q eetll';)( ::w:w.. MmiW. . co . I 1'- , .. 'r-~ I ~ J~ :1 I il ~ ; u ~ --,ll~- J ~Il~ IE I ~ III ~ · .~; ~~~.:I a .~ ~ J h ... I . I .! ~ / .. I _. J , tTnI I I l1lJ1 ~ , , , , I ,~rll, 1'6::lUJ '. il ~ ~ ~. ~ ~ '" ~ ,: i~ ~_ 00'---1 \ :.. .._J, ._ , ,! " J Ii ~ u.' " .~~~:':",~:"-.u'i'~r~~,,''';'':;'';'' . '- . "....-:.., _l:o,~,'.~ __,__'-_ _~~~ _ 07/29/98 WED 15:51 FAX ~i WESTERN PACIFIC 19J003 fijE' . .... , 'elO:l'['QG ~;M:;N4~' 1,' i I H! II II.. .tll'l ,I II:! IljlJ! !; I!, ~ I!~ I Ill! ; I NI' f ! il~i III! millilp-IID; ~i i~l!i~l!II!I!ilffil Al~~! ! I ~ '!lll i "1!III'llll~~ ~~!tI~'II~j'I'II~I'IIII~I!IIIJ'~'t/'1:1J:,lll!lli'jlli I:) ; ~!i llllllil!WiiIlI~Pd'illilt!!li,!ililhirnllf!ilillli!ilm!lm ~Jlm,i Illi o 1'~' '. ~:: ~~:-;;,~;~~:' ..., ".~ ~" ..... " t~T"l"I"T ~,.: i <;i= .. .' :~.. ~,' ';;':'" II .. "J! ~ l ....- I ' ;1' .'- .:; . ,"tiT! '.:~i ,I ,I I 1 ,.!It. 1'" ',...'.j 1 ., l i 9 ~~ 'J';"!'("'!',li t, 5 ~ : I : , ! 1 0 h. "\ : 1.: ill I "{ ,""',: I 'funo. ~ 1 ;-"11.11 ~j II ( I .t.... I; I ,r .-. - """'~'m"m...'" "'" : j" Sl\ ! : .;. : . I: 15 j ~ ; L .r lJ. ~. : c ;=.~. .,.! [ ~ '! i ! I. ... L<i' - ~ .~j',D ~O'I SCl'J."" w "' ~ wi ~ :;: ~~ ~l ~a ~l ~ ... ---, TO. ~~ ""n ! 'I i ' , ! i [ .-J l .: i " ~1 . p ~I~ ~.' I; 'I;: 2 ":23fu 1 3 i ,..B. 0+ !f..... . I 0 ! ~I . I' 't:1'" ',Jjff:! i iC III .. R' ..~.. ',< I t- I',. '~,.." ..~-~.,'~~-/i.._..~ ~ .. "1 r "". . !t~,'",' '1' ... ._:...i ... .. ~l ! I........ ; - ... ..... -. 1...-...... ..il..." , I .. l-i r~;..;..>..1 I II " ,.?1'i-:~.' O'.:J~~ lit' :j i :'.' ~.jfi'!:"'i" :.' '---",: ] .~ .~ :lG':~~: . . ~ I;;j ~: ;,: : .:y()~ :~I. i ,j---fi; ~ ~ ! ...! .' J...I ... 1 ... ; ~.' f ~.: 11 it Ii., i' ;;.,. ,':1: 3 .., .' .'.....1 '... ,'._1.. 0 ...... ....,... I I ~ I,,! ,.;-;,1:~~1:~~1 ....+::~.~ Ie .J ! 9 i 'i ' .,' ~ l LllJ.ill.UJ.l11-" . - ~ . 0 ~ .1 )~..: " [I ,:.. ..>:.1 ~ ; :..!....; .. ~'~'.I ~.' : ... l~,. ; .. . ~~. ' .:~ :,~._.. .. _.':~ 1"1 <!"J .'IT'i'"~ 1 ~ ., !'llQ,O I '...~ '~, ! I. ;l '1' \ \y\'2.:.J.. :i~ I' '/ :11 , .. _n "'. '" ]':=:I'~: f : I !1 ~~.\ ,"t' ,~I J I ~':o.7" .~. ~"1' ,,-........... ., .t 1 Ii- ,~..';,1' H:' ..:. ..---.:' . :i , ...M.....". '. ,'7:f .."J.:1;::-;..:. !l I: cC ....1. . ... I !~JI i "I I~ ! ---'.: 8 . J I '. {[ I"':+"---~:' liT -'" I .: : @ <.1 1'.+.1..,.-:!-... .......:1 i! .. .... ...., /.., ... '.. i ..~ .. ...'" '~.:':.,' ....' _..' . 07/29/98 . WED 15:48 FAX WESTERN PACIFIC ~002 \. '. ".; _: " t"Ol l)~~<U"i.D " '.. ~.' ~-- ;...~""'" t,,4-~ " .' ," - .'\ '. .. ! ..' -4 ; , , -, . '. "-, . .~~..._.__I' ..........- -< !. j / , /1 .../ ',/ ..- )';./.'. / ., / .",_,/ , 1 . .,. i " "-...- " FRCI1 J3ENCH1ARK PAC I FIe Pl-lCM:: NO. 760 438 S980 EXHIBIT I) Apr. 27 1'398 04:49PM PS DRAFT APPENDIX 1 EASTLAKE GREENS Affordable Homeownership Pr-ogram 1. ELIGIBILITY . 1.1. Income- Buyer incomes may vary but shall not exceed 80 % of the Area Median locome as published by the Department of Housing and UIban Development (HUD), adjusted for household size. and as adjusted from time to time by BUD. These incomes are shown in Attachment 1, Maximum Allowable Incomes and Purchase Prices. Developer may also establish a minimum income for the purpose of defining the eligible market. 1.2. First-time Buyer- Buyer shall not have owned a home for a period of3 years prior to purchase. Exceptions will be made for income-qualified displaced homeowners (e.g.. legally separated 0[" divorced persons currently owning or having owned a-home with a spouse). 1.3. Owner Occupaney- Buyer must remain an owner occupant 1.4. Asset Limitation- Buyer shall not have liquid assets exceeding $25.000, in addition to amounts used for down payment 1.5. Lender Underwriting Criteria- Buyer shall meet lender underwriting criteria that are certified to City by the lender as consistent with secondary mortg:lge market standards. loterest rate buydowns and/or adjustable rates are acceptable provided underwriting is based on a reasonable long-term (7 years or more) interest rate assumption and not on a short-term or <<teaser" rate_ 1.6. Minimum MortgageIDown Payment Limits- Buyer shall be required to make a down payment from their own funds equal to a minimum of 3% and a maximum of 20% 2. AFFORDABILITY 2.1. Housing Cost- Generally, housing costs, including interest, principal, mortgage and homeowners insurance, and association fees shall not exceed 33% of gross income; however, a customary lender underwriting standard certified by a. lender as consistent with secondary mortgage ~t standards will be deertred acceptable. 2.2. Affordable Pur-chase Price- This slm1l be an amount determined for each household and will be the sum of the down payment and qualified mortgage amount Attachment 2, F or-5ale Proforma, illustrates a sale trnnsaction using the Affordable Purchase Pri<:e. Under no circumstances may a purchase price exceed the lesser of the Maximum Allowable Purchase Price defmed as that which is affordable to a household earning 80% of the Area Median Income, adjusted for household si:z:e. or the fair market value of the sale uuit substantiated by appraisal. The maximum prices based on 8oo/., of the Area Median Income . are shown in Attachment 1. These are subject to adjustment based on Area Median Income adjustments issued by HUD from time to time. IT - ~~ FRa1 : BENGlMARK PAC IF I C ~ NO. : 760 438 S980 Apr. 27 1998 04:50PM P6 Page 2 of3 DRAFT 2 2.3. Seller Certification- Seller shall provide third-party certification that buyer has met eligibility and housing costaffordability requirements upon sale of unit 3. RESALE 3.1. No restrictions- There shall be no price or buyer eligibility restrictions on resale. It is the intent of the City to achieve three goals witb resales: I) recapture of sufficient initial subsidy and app<<:ciation to create another affordable ptm:hase for a lower-income household in the private marlcet, 2) provide atair share of proceeds to the initial buyer in order to create the traditional incentives and benefits ofbomeownership. and 3) if available and based on subsidy contribution, provide a return of a portion of initial subsidy to1:b.e developer. 3.2. Proceeds From Resale- Attaclunent 2 illustIates a =ale transaction. Proceeds . sbaIl be distributed in the following order: 3.2.1. Payment of Costs of Sale 3.2.2. First Mortgllge Principal Payoff 3.2.3. Return of Seller Investment, defined as initial down payment contribution and 1 st mortgage principal reduction. 3.2.4. City "Silent Second Mortgage" l>ayoff, defined ~ initial purchase subsidies. discount below market value. down payment assistance and any addition ptm:hase money. Closing cost assistance sball be forgiven. 3.2.5. Remaining Net Proceeds, defined as that amount, if any remaining after the above payoffs. to be divided equally between the City and Seller, with Developer to receive 50% of City share. if any. 4. CITY FINANCIAL PARTICIPATION 4.1. Downpayment and Closing Cost Assistance. For these purposes, City will provide an amount averaging $5.000/ unit, assisting 187 units, up to a total of $935.000. Assistance shall be included in a City Silent Second Mortgage which shall be deferred, with no interest OT principal payments. The loan will be due upon sale or transfer. with contingent interest in the form of shared appreciation. 4.2. Disbursement- Funds will be requisitioned and placed in escrows as needed. 4.3. Servicing-if City chooses not to service the City loans. a lender shall be sCfected to service the City loans, with fees to be paid by City. 5. DEVEWPERFlNANCIALPARTlCIPATION 5.1. Assistance Required- Developer shall provide the necessary financial assistance which, in addition to the City Financial Participation, will allow for construction : and sale of the units according to the Amendment to the Eastlake Greens :AffoTdable Rousing Agreement 8Ild this Attachment. I Y-':)3 EASTLAKE GREENS Homebuyer Outline 04/21/98 4:38 PM FRa1 : BI3'4Q-lMAPJ( PAC I Fie PHO-lE NO. 760 438 5980 Apr. 27 1998 04:51PM P7 Page 3 00 DRAFT . 3 6. AFFORDABLE UNITS 6.1. Quality- Affordable units will be constructed at a level of quality, including design, materials and workmanship. comparable to that of market units in the same project, in order to achieve the goal of having affordable units indistinguishable from market units. 6.2. Dispersion- To the extent possible, affordable units will be dispersed throughout the project, integrated among market units. 6.3. Concurrent Construction- Affordable units shall be constructed and sold concurrently with market units. 7. MARKETING 7.1. Plan Required- Plan. inclu4ing materials. shall be submitted foT City approval, including Fair Housin!i Affirmative Marketing strategy. 7.1.. LiveIWork OutTeach- The Marketing Plan will provide a specific strategy to market the affordable homeownership opportunity to residents of and those working in the City ofChuIa Vista Possible methods include using local targeted media, contacts with major employers. and outreach through local service agencies and non-profit institutions. 8. HOM}?,BUYER EDUCATION 8.1. Program Required- Prior to close of escrow, each buyer shall, at no cost, be required to complete a homebuyer education program acceptable to City. 9. REOUIRED DOCUMENTS 9.1. Additional documents necessary for program implementation will be prepared and be subject to City approval. Documents (and the entity responsible for preparation) shall include, but not be limited to: 9.1.1. Marketing Plan (Developer) 9.1.2. Purchase and Sale Agreement (Developer) 9.1.3. Second Trust Deed and Note (City) 9.1.4. Compliance Reports (City) 9.1.5. Amendment to Affordable Housing Agreement (City) 9.1.6. Bank Servicing Agreement (Servicing Bank, if utilized! City) ~ 10. COMPLIANCE 10.1. Compliance Reports- Third-party-certified compliance reports shall be required verifying eligibility and affordable sale. 10.1.. . Enforcement- Remedies for non-<:ompliance will be as established in the Amended Affordable Housing Agreement between Developer and City. ~~_",""O<m~y.:} 'f 1/8 -d 7 FR01 : ~ PACIFIC A-<<:iI'E NO. 760 438 S980 EXHIBIT 0 Apr. 27 1998 04:49PM PS DRAFT APPENDIX 1 EASTLAKE GREENS Affordable Homeownel1!lhip Program . ....~\) ~01 SC~~';JJ- .'" 11),' )-^" yf 1. ELIGIBILITY _ 1.1. Income- Buyer incomes may vary but shall not exceed 80 % of the Area Median Income as published by the Department of Housing and Urilan Development (HUD), adjusted for household size. and as adjusted from time to time by HUD. These incomes are shown in Attachment 1, l\Iaximum Allowable Incomes and Purcltase Prices. Developer may also establish a minimuin income for the purpose of defining the eligible market. 1.2. Flrst-time Buyer- Buyer shall not have owned a home for a period of3 years prior to purchase. Exceptions will be made for income--qualified displaced homeowners (e.g.. legally separated or divorced persons cu,n-entlyowning or having owned a-home with a spouse). 1.3. Owner O(:Cupancy- Buyer must remain an owner occupant 1.4. Asset LimitatioJJ- Buyer shall not have liquid assets exceeding $25,000, in addition to amounts used for down payment. 1.5. Lender Underwriting Criterla- Buyer shall meet lender UIlderwriting criteria that are certified to Oly by the lender as consistent withsecondaty mortgage market stlndards. Interest rate buydowns and/or a4justable rntes are acceptable provided underwriting is based on a reasonable Iong--tenn (7 years or more) interest rate assumption and not on a short-tetID or "teaser" rate_ 1.6. Minimum MortgageJDown Payment Limits- Buyer shall be required to make a down payment from their own funds equal to a minimum of3% and a maximum of20% 2. AFFORDABJLITY 2.1. Housing Cost- Generally, housing rosts, including interest, principal, mortgage and homeowners insurance, and association fees shall not exceed 33% of gross income; however, a customary lender underwriting standard certified by_& lender as consistent with secondary mortgage market standards will be deetfied acceptable. 2.2. Affordable Purchase Price- This sball be an amount determined for each household and will be the sum of the down payment and qualified mortgage amount Attachment 2, For-8ale Proforma, iUustnltes a sale trnnsaction using the Affordable Purchase Price. Under no cit"CUll1stances may a purchase price exceed the lesser of the Maximum Allowable Purchase Price defIDed as that which is affordable to a household earning 80% of the Area Median Income, adjusted for household size, or the fair nuuket value of the sale unit substantiated by appraisal. The maximum prices based on 8oo/., of the Area Median Income . are shown in A1:ta(:hment 1. These are subject to adjustment based on Area Median Income adjustments issued by HUD from time to time. J~-~ FRCJ1 : BENa-NARK PACIFIC PI-IJt-E NO. 760 438 S980 Apr. 27 1998 04:50PM P6 Page 2 on DRAFT 2 2.3. Seller Certification- Seller shall provide third-party certification that buyer has met eligibility and housing cost affordability requirements upon sale of unit. 3. RESALE 3.1. No restrictioos- There shall be no price or buyer eligtoility restrictions on resale. It is the intent of the City to achieve three goals with resales: I) recapture of sufficient initial subsidy and app<<:ciation to create another affordable purchase for a lower-income hoUSehold in the private market, 2) provide a fiUr share of proceeds to the initial buyer in order to create the traditional incentives and benefits ofhomeownersmp, and 3) if available and based on subsidy contnoution, provide a return of a portion of initial subsidy to1:be developer. 3.2.. Proceeds From Resale- Attachment 2 illusUates a resale transaction. Proceeds . shall be distn"buted in the following order: 3.2.1. Payment of Costs of Sale 3.2.2.. First Mortgage Principal Payoff 3.2.3. Return of SeDer IJIvestment, defined as initial down payment contribution and 1" mortgage principal reduction. 3.2.4. City "Silent Second Mortgage" Payoff, defined ;is initial purchase subsidies, discount below matket value, down payment assistance and any addition purohase money. Closing cost assistance shall be forgiven. 3.2.5. Remaining Net Proceeds, defined as that amount, if any remainmg after the above payoffs, to be divided equally between the City and Seller, with Developer to receive 50% of City share, if any. 4. CITY FINANCIAL PARTICIPATION 4.1. Downpayment and Closing Cost Assistance. For these pmposes, City will provide an amount averaging $5,0001 unit, assisting 187 units, up to a total of $935,000. Assistance shall be included in a City Silent Second Mortgage which shall be deferred, with no interest Or principal payments. The loan will be due upon sale or transfer, with contingent interest in the form of shared appreciation. 4.2.. Disbllrsement- Funds will be requisitioned and placed in escrows as needed. 4.3. Servieing- If City chooses not to service the City loans, a lender shall be selected to service the City Loans, with fees to be paid by City. 5. DEVELOPER FINANCIAL PARTICIPATION 5.1. Assistallee Requlred- Developer shall provide the necessary financial assistance which, in addition to the City Financial Participation, will allow for constIUction ,and sale of the units according to the Amendment to the Eastlake Greens Affordable Rousing Agreement and this A1tachmenl IS- -:2" EASTLAKE GREENS Homebuyer Outline 04/21/98 4,38 PM FRCJ1 : B8'lO-I1ARK PAC I FI C ~ 1-0. 760 438 S980 Apr. 27 1998 04:51PM P7 Page 3 00 DRAFT 3 6. AFFORDABLE UNITS 6.1. Quality- Affordable units will be constrocted at a level of quality. inclnding design, materials and workmanship, comparable to that of market units in the same project, in order to achieve the goal of having affordable units indistinguishable from market units. 6.2. Dispersion- To the extent possible, affordable units will be dispersed throughout the project, integrated among market units. 6.3. Concarrent Construction- Affordable units shall be constructed and sold concwrently with market units. 7. MARKETING . 7.1. Plan Required- Plan, inclu4ing materials, shall be submitted for City approval, including Fair Housing! Affirmative Marketing strategy. 7.z. LiveIWork Outreach- The Marketing Plan will provide a specific strategy to marlret the affordable homeownetship opportuni1y to residents of and those worlcing in the City of Chula Vista. Possible methods include using local targeted media, contacts with major employets, and outreach 1hrough local service agencies and non-profit institutions. 8. HOMEBUYER EDUCATION 8.1. Program Required- Prior to close of escrow, each buyer shall, at no cost, be required to complete a homebuyer education program acceptable to City. 9. REOUIRED DOCUMENTS 9.1. Additional documents necessary for program implementation will be prepared and be subject to City approval. Documents (and the entity responsible for preparation) shall include, but not be limited to: 9.1.1. Marketing Plan (Developer) 9.1.2. Purchase and Sale Agreement (Developer) 9.1.3. Second Trust Deed and Note (City) 9.1.4. Compliance Reports (City) 9.1.5. Amendment to Affordable Housing Al9=IIlent (City) 9.1h. Bank Servicing Agreement (Servicing Bank, ifuti1izedl City) 10. COMPLIANCE 10.1. Compliance Reports- Third-party-certified compliance tqJOrts shall be required verifYing eligibility and affordable sale. 10.1. . Enforcement- Remedies for non-<:ornplianoe will be as established in the Amended Affordable Housing Agreement between Developer and City. Iy -117 EASTLAKE GREENS Romebuyer Outline 04127198 4:38 PM EXHIBIT E Option One For Sale Housing Proforma (Example) Unit Cost land Construction Soft Costs Permits/Fees Total Unit Cost (Market) 2 Bedroom Unit $ 9,000 $123,500 $ 0 $ 0 $132,500 Affordable Price Determination Household Income (4 person household I!! 70% AMI equals $35,560 ) Supportable Mortgage Buyer Oown Payment @ 3% City Down Payment @ 2% Affordable Purchase Price (Multiple of Incomel $109,000 . $ 3,975 $ 2.650 $115,625 3.07 Additional Subsidy Needed Source of Subsidy: land Cash lfrom Developer) City Closing Costs (at 1.78%) $ 16,875 $ 9,000 $ 5,525 $ 2.350 $ 16,875 Sale of Unit With First Mortgage Payoff& Net Proceeds Split Market Price of Unit $145,000 Distribution of Proceeds: First Mortgage Payoff $104.000 less Seller Credit Down Payment Principal Reduction of First Mortgage Total Seller Credit $ 3,975 $ 5.000 $ 8,975 less City/Developer Loan: land Subsidy and Cash Subsidy $ 14,525 Total Net Proceeds Available for Distribution (50% to Seller; 25% to City; 25% to Developer) $ 17,500 Net Proceeds Distribution Seller City Developer $ 8,750 $ 4,375 $ 4,375 Total funds distributed to the Seller Total funds distributed to City Total funds distributed to Developer \y.-::lY $17,725 $18,900 $ 4,375 RESOLUTION NO. --1!lL15 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT AND RESTATEMENT OF THE EASTLAKE GREENS AFFORDABLE HOUSING AGREEMENT WHICH INCORPORATES THE EAST LAKE GREENS HOME OWNERSHIP PROGRAM WHEREAS, on July 25, 1995, the City Council adopted the Affordable Housin9 Agreement for the Planned Community of Eastlake by Resolution 17982. The agreement was entered into as an initial means of implementing the low income housing requirement of Condition 44 of the Eastlake Tentative Map which requires Eastlake Development Company ("Developer") to provide 5% low and 5% moderate income housing units within the Eastlake Tentative Map area; and WHEREAS, in accordance with that agreement, the Developer's Duty to Build low income housing units requires the Developer have under significant construction no later than June 1, 1998, 112 qualified low income units at the location and in a configuration and design approved by the City; and WHEREAS, staff and Developer negotiated an agreement to amend and restate the original agreement to provide for the provision of 187 affordable housing units on certain terms and conditions contained herein; and WHEREAS, such agreement incorporates a new Eastlake Greens Home Ownership Program which is also submitted for City Council consideration. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby find, order, determine and resolve to: 1) approve the amended and restated Eastlake Affordable Housing Agreement in the form presented; and 2) approve the Eastlake Greens Home Ownership Program attached thereto. ~q g,..1 d- I Presented by Approved as to form by Chris Salomone Director of Community Development !{JF) H:\HOME\COMMDEV\RESOS\EASTLAKE {July 29, 1998 (1 :57pm)] I ~,. ~r