Loading...
HomeMy WebLinkAboutAgenda Packet 2000/05/09 CITY COUNCIL AGENDA May 9, 2000 ~r 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CIIY OF CHULA VISTA City Council City Manager Patty Davis David D. Rowlands, Jr. John S. Moot City Attorney Stephen C. Padilla John M. Kaheny Mary Salas City Clerk Shirley A. Horton, Mayor Susan Bigelow The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 47 AGENDA MAY 9, 2000 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, Moot, Padilla, Salas, and Mayor Horton. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · OATH OF OFFICE: MOBILEHOME RENT REVIEW COMMISSION - DAVID SMITH · pRESENTATION OF A PROCLAMATION COMMENDING KAY DENNISON AS WOMAN OF THE YEAR BY THE 79TM ASSEMBLY DISTRICT · PRESENTATION OF CERTIEICATES TO HILLTOP HIGH SCHOOL STUDENTS, MAYO IBARRA, ANTON SERIKOV, AYA IBARRA, TRISTAN HUDSON, AND TO MENTOR, MITSUYO FUKUDA, FOR W1NN1NG THE NATIONAL JAPAN BOWL 2000 IN WASHINGTON, D.C. · PRESENTATION OF AN AWARD TO THE CITY OF CHULA VISTA BY MARY SCOTT KNOLL, EXECUTIVE DIRECTOR OF THE FAIR HOUSING COUNCIL OF SAN DIEGO (FHCSD), IN RECOGNITION OF THE CITY'S SUPPORT OF FAIR HOUSING AND BLOCK GRANT FUNDING OF FHCSD PROGRAMS · VOCAL PERFORMANCE BY KUNDIRANA, COURTESY OF THE PHILIPPINE- AMERICAN CULTURAL SOCIETY OF SAN DIEGO CONSENT CALENDAR (Items 1 through 8) 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 removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak"form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 1. 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 May 2, 2000, there were no actions taken which are required under the Brown Act to be reported. Staff recommendation: The letter be received and filed. Page 1 - Council Agenda 05/09/2000 B. Letter of resignation from Linda Banghman, member of the Economic Development Commission. C. Letter of resignation from Cindy Lee Johns, member of the Child Care Commission. D. Letter of resignation from Martin Calvo, member of the Economic Development Commission. E. Letter of resignation from Robert Clement, member of the Cultural Arts Commission. Staff recommendation: The resignations be accepted with regret and the City Clerk be directed to post immediately according to Maddy Act requirements. 2. RESOLUTION OF THE CITY COUNCIL .OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 1999-2000 BUDGET BY APPROPRIATING UNANTICIPATED DONATION REVENUE IN THE AMOUNT OF $6,675 TO THE LIBRARY AND RECREATION DEPARTMENT BUDGET FOR EXPENDITURES ASSOCIATED WITH THE CULTURAL ARTS PROGRAM (4/5THS VOTE REQUIRED) The Library and Recreation Department has received donations from various organizations and individuals to support the programs of the department. At this time, the department wishes to accept the donations, appropriate and budget the funds for the cultural arts programs intended to receive these funds. Staff recommendation: Council adopt the resolution. (Deputy City Manager Palmer) 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR "MTDB RIGHT-OF-WAY BEAUTIFICATION, PHASE 1, 1N THE CITY OF CHULA VISTA, CALIFORNIA (LD-106)" PROJECT On Wednesday, February 23, 2000, the Director of Public Works received sealed bids for the "MTDB Right-of-Way Beautification, Phase 1, in the City of Chula Vista, California" project. The work consists of planting and irrigation within segments of the four-mile MTDB right-of-way corridor. The work also includes all labor, material, equipment, transportation and traffic control necessary for the project. Staff recommendation: Council adopt the resolution rejecting the bids received for the project due to bid deficiencies, and direct the Director of Public Works to re-advertise the project. (Director of Public Works) 05/09/2000 Page 2 - Council Agenda 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR "TELEGRAPH CANYON ROAD MEDIAN IMPROVEMENTS IN THE CITY OF CHULA VISTA, CALIFORNIA (LD-103)" PROJECT On Wednesday, March 15, 2000, the Director of Public Works received sealed bids for the "Telegraph Canyon Road Median Improvements in the City of Chula Vista, California" project. The work consists of landscaping and irrigation within the existing median island on Telegraph Canyon Road from 1-805 to Paseo del Rey. The work also includes all labor, material, equipment, transportation and traffic control necessary for the project. Staff recommendation: Council adopt the resolution rejecting the bids received for the project due to bid deficiencies, and direct the Director of Public Works to re-advertise the project. (Director of Public Works) 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TRANSFER OF FUNDS FROM PERSONNEL SERVICES AND SUPPLIES AND SERVICES ACCOUNTS TO CAPITAL EQUIPMENT ACCOUNTS FOR THE PURCHASE OF EQUIPMENT IN PUBLIC WORKS DEPARTMENT'S OPERATING BUDGET AND THE SEWER SERVICE REVENUE FUND OPERATING BUDGET The City's budget transfer policy calls for Council's approval to transfer more than $15,000 between budget summary accounts, such as between Personnel Services and Capital Equipment. The Public Works Department has a number of small equipment items that have been approved by the City Manager for purchase this fiscal year. However, the dollar amounts of these items exceed the $15,000 limit. Staffrecommendation: Council adopt the resolution. (Director of Public Works) 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A TWENTY-FOOT-WIDE EASEMENT TO SWEETWATER AUTHORITY, A JOINT POWER AGENCY, FOR INSTALLING, OPERATING, MAINTAINING, REPLACING AND REPAIRING WATER MAINS AND SERVICE PIPES ALONG CITY-OWNED PROPERTY LOCATED ON LOT 'A' OF CARVALOS ACRES UNIT NO. 2, ACCORDING TO MAP NO. 3949, AND WITHIN A PORTION OF QUARTER-SECTION 112 OF RANCHO DE LA NACION, ACCORDING TO MAP NO. 166 Sweetwater Authority proposes to construct water main facilities and appurtenances on City property under an emergency access easement and is requesting a 20-foot easement for installing, operating, maintaining, replacing and repairing water mains and service pipes, together with the right of ingress thereto and egress therefrom, over said easement. Staff recommendation: Council adopt the resolution and have the Mayor execute the easement on behalf of the City. (Director of Public Works) Page 3 - Council Agenda 05/09/2000 7A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL "A" MAP NO. 2 FOR OTAY RANCH SPA ONE, VILLAGE ONE, CHULA VISTA TRACT NO. 96-04A, REJECTING ON BEHALF OF THE PUBLIC, SANTA ANDREA STREET, PASEO RANCHERO AND OLYMPIC PARKWAY, ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, THE LANDSCAPE BUFFER EASEMENTS, PUBLIC DRAINAGE AND ACCESS EASEMENTS, TRAIL EASEMENTS, SDEWALK EASEMENTS, EMERGENCY ACCESS 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 FOR LOTS "C", "D", "E", "F", "G", "N" AND "R" FOR OPEN SPACE, AND LOT "O" FOR PUBLIC PARK PURPOSES B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING "A" MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 96-04A, PORTION OF VILLAGE ONE, OTAY RANCH SPA ONE, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT (CONTINUED FROM THE MEETING OF MAY 2, 2000) On May 4, 1999, Council approved a Tentative Subdivision Map for Chula Vista Tract 96-04A, Otay Ranch SPA One, Village One, Phase 7. Condition No. 14 of the Resolution requires the developer to submit and obtain the approval of the City of a master Final Map ("A" Map) of the Tentative Map showing "super block" lots. The "A" map is also required to show the public street dedications and backbone 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. Staffrecommendation: Council adopt the resolution. (Director of Public Works) 8 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REIMBURSEMENT AGREEMENT WITH ACI SUNBOW, LLC, ASSOCIATED WITH THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II) AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL, APPROVING AGREEMENTS WITH BRUCE W. HULL & ASSOCIATES TO PROVIDE APPRAISAL SERVICES AND THE MEYERS GROUP TO pREPARE A MARKET ABSORPTION STUDY ASSOCIATED WITH COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II) AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENTS 05/09/2000 Page 4 - Council Agenda In compliance with Council policy, ACI Sunbow, LLC submitted an application for establishing Community Facilities District No. 2000-1 (CFD 2000-1) to fund the construction of certain improvements serving some of the Sunbow II properties in the amount of approximately $19.5 million. Council approved the report regarding the application and initiated the proceedings on May 2, 2000. Adoption of the resolutions will approve a Reimbursement Agreement with the developer and two agreements to retain a portion of the financing team for CFD 2000-1. The companion Reimbursement Agreement requires the developer to advance funds to the City for the payment of all initial consulting and administration costs and expenses related to the formation of CFD 2000-1. Staff recommendation: Council adopt the resolutions. (Director of Public Works) ORAL COMMUNICATIONS Persons speaking during Oral Communications may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff Comments are limited to three minutes. 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 on any item, please fill out a "Request to Speak"form (available in the lobby) and submit it to the City Clerk prior to the meeting. 9. CONSIDERATION OF GRANTING A TWENTY PERCENT DENSITY BONUS AND OTHER ADDITIONAL INCENTIVES TO FACILITATE THE CONSTRUCTION OF TEN ADDITIONAL UNITS AT KlNGSWOOD MANOR The applicant, IPMG, Inc., is requesting a twenty percent (20%) density bonus and modifications of certain development standards pursuant to California Government Code Section 65915 and the City of Chula Vista Housing Element. Specifically, the applicant is requesting the reduction of the parking required under the Precise Plan 76-14 for the property to be consistent with the City of Chula Vista's Municipal Code permission to design 16 percent of the parking spaces as compact spaces. The request, if approved, would facilitate the construction of ten affordable units in an existing 40-unit, multi- family residential development. The proposed project is a 3.32 acre site located at 54-94 Kingswood Drive. Staff recommendation: Council conduct the public hearing and adopt the following resolution (Director of Community Development): Page 5 - Council Agenda 05/09/2000 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTiNG A TWENTY PERCENT (20%) DENSITY BONUS, REDUCiNG THE PARKING REQUIRED UNDER PRECISE PLAN 76-14 TO BE CONSISTENT WITH THE CITY'S MUNICIPAL CODE, AND ALLOWiNG SIXTEEN PERCENT OF THE REQUIRED PARKING AS COMPACT PARKING SPACES TO FACILITATE THE CONSTRUCTION OF A MAXIMIMUM OF TEN (10) AFFORDABLE DWELLiNG UNITS FOR AN EXISTING 40-UNIT, MULTI-FAMILY RESIDENTIAL DEVELOPMENT, KNOWN AS KINGSWOOD MANOR, LOCATED AT 54-94 KINGSWOOD DRIVE, AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE HOUSiNG COOPERATION AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND IPMG, 1NC. ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 10. CITY MANAGER'S REPORTS A. Scheduling of meetings. 11. MAYOR'S REPORTS 12. COUNCIL COMMENTS CLOSED SESSION 13. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) · One Case - Claim no. 99-00-009 14. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) · One Case 15. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION pURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) · Brentwood Mobilehome Park v. City of Chula Vista, S26517 ADJOURNMENT to the Regular Meeting of May 16, 2000, at 6:00 p.m. in the Council Chambers. Page 6 - Council Agenda 05/09/2000 CIIY OF CHULA VISYA MEMORANDUM May 4, 2000 To: The Honorable Mayor and City Coun,~/ From: David D. Rowlands, Jr., City Mana{r6-r Subject: Council Meeting of May 9, 2000 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, May 9, 2000. Comments regarding the Written Communications are as follows: la. 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 May 2, 2000, 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. lb. IT IS RECOMMENDED THAT LINDA BAUGHMAN'S RESIGNATION FROM THE ECONOMIC DEVELOPMENT COMMISSION BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE OFFICE OF THE CITY CLERK AND THE PUBLIC LIBRARY. lc. IT IS RECOMMENDED THAT CINDY LEE JOHNS' RESIGNATION FROM THE CHILD CARE COMMISSION BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE OFFICE OF THE CITY CLERK AND THE PUBLIC LIBRARY. ld. IT IS RECOMMENDED THAT MARTIN CALVO'S RESIGNATION FROM THE ECONOMIC DEVELOPMENT COMMISSION BE ACCEPTED WITH REGRET AND THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE OFFICE OF THE CITY CLERK AND THE PUBLIC LIBRARY. le. IT IS RECOMMENDED THAT ROBERT CLEMENT'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 OFFICE OF THE CITY CLERK AND THE PUBLIC LIBRARY. DDR:mab May 2, 2000 MEMO TO: City Clerk ~ FROM: Patty Wesp ~; SUBJECT: SPECIAL ORDERS OF THE DAY- MAY 9, 2000 Proclamation COMMENDING KAY DENNISON AS WOMAN OF THE YEAR BY THE 79TH ASSEMBLY DISTRICT Thank you. cc: Armando Buelna Patricia Salvacion May 1,2000 MEMO TO: Donna Norris, Deputy City Clerk FROM: Patricia Salvacion, Mayor/Council office SUBJECT: SPECIAL ORDERS OF THE DAY - MAY 9, 2000 Please docket the following for presentation at the above council meeting: Recognition of Hilltop High School students on their win of the National Japan Bowl 2000 in Washington, D.C. MAYO IBARRA ANTON SERIKOV AYA IBARRA TRISTAN HUDSON MITSUYO FUKUDA, Mentor March 31, 2000 MEMO TO: City Clerk ,~~ FROM: Patty Wesp SUBJECT: SPECIAL ORDERS OF THE DAY- MAY 9, 2000 Please schedule the fo/lowing presentation under Special Orders of the Day for the Council meeting of May 9, 2000: Vocal Performance By Kundirana Courtesy of the Philippine-American Cultural Society of San Diego Thank you. cc: Mayor Horton THE LA SALLE YOUNG ARTISTS' FOUNDATION INC. Manila, Philippines in coop~h the Philip. pine-American. Cultura. I Society~ ., ~., ,~_~of_San Diego, Inc. May 12, 2000 · Friday, 7:00 PM Southwestern College (Mayan 900 Otay Lakes Road Chula Vista, CA 91910 Admission: $12.50 · Reserved Seats: $20.00 YOUR DBPZ4TION Will BEN~IT OUR YOUTH, THE POOR, THE SICK, THE ELO~RZ Y, AND THE FORDOTT~V IN THE PHILIPPINES THROUGH THE PHILIPPINE AMERICAN CUt ~URAL SOCIETY OE SAN DIEGO, INC. OF CHUIA VISIA OFFICE OF THE CITY A'I-rORNEY Date: May 3, 2000 To: The Honorable Mayor and City Council From: John M. Kaheny, City Attorney '~¥/' Re: Report Regarding Actions Taken in Closed Session for the Meeting of 5/2/00 The City Council of the City of Chula Vista met in Closed Session on 5/2/00 to discuss: · CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8= Property: Lease of Property - Fourth Avenue & Beyer Way Negotiating Parties: U.S. Customs Services & the City of Chula Vista (Sid Morris) Under Negotiations: Price & terms of lease The Redevelopment Agency of the City of Chula Vista met in Closed Session on 5/2/00 to discuss: · CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8: Property: 1) 565-010-30 and 567-011-25 Midbayfront 96.57 acres 2) 567-010-28 Bayfront Park 4.94 acres 3) 567-011-01, 565-010-12, 565-010-15 SDG&E ROW 9.8 acres (apprx) portion of 565-010-18 4) 567-021-11, portion of 965-290-39 SD&AE ROW 2.3 acres (apprx) 5) 565-310-09 & 565-310-25 Street Merziotis 6.35 acres 6) 567-011-04 Marina Motor Hotel 1.0 acres 7) 567-010-18 Cappos 2.01 acres 8) 567-010-19 Shangri La 2.73 acres 9) 567-021-32 Lagoon Drive Park 1.14 acres Negotiating Redevelopment Agency/City of Chula Vista (Chris Salomone); Parties Chula Vista Capital, B.F. Goodrich, SDG&E, Tuchscher Development Enterprises, Inc. Under Price and terms for disposition/acquisition Negotiations: 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. 276 FOURTH AVENUE · CHULA VISTA · CALIFORNIA 91910" (619) 691-5037 · FAX (619) 409-5823 05/02/2000 TUE 12:45 FAX 619 641 6436 USE CREDIT [~ION ~002/002 CREDIT UNION May2,2000 Susan Bigelow, CMC/A_A.E City of Chula Vista Office of thc City Clerk 276 Fourth Avenue ChulaVista, CA 91910 RE: Economic Development Commission Dear Ms. Bigelow: I am in receipt of your letter dated April 25, 2000. After careful consideration and - exploration of other obligations and commitments, I find that I cannot commit to ~hc responsibility of this appointment at the present time. I had hoped to contribute more, and i appreciate the opportunity that serving on the Economic Development Commission has af~brded me. Perhaps there will be oeeasio~ for me to accept an appointment sometime in the future, when my time is more flexible_ Please accept my apology and best wishes for EDC's success in future endeavors. Sincerely, President and CEO May 5, 2000 Honorable Mayor, City Council, Child Care Commission 276 Fourth Avenue Chula Vista, CA 91910 Dear Mayor, City Council, and Fellow Commissioners, It has become necessary to concentrate my energies in directions other than the Child Care commission. At this time I am submitting my resignation. I have served on this commission for many years and seen many changes in the city and in the make up of the commission. It has been interesting to be involved in the projects that have come fxom the commission. I will miss my association with all of you. Sincerely, Cindy ~ee Johns RECEIVED .~pril 30, 2000 CITY OF CHULA VtS] ;~ CITY CLERK'S OFFICE Resignation from EDC Ms. Susan Bigclow 276 Fourth Ave. Chula Vista, CA 91910 Dear Ms. Bigelow, !t is with much regret that I will be resi~ening from the Economic Development ConUmssion effective ~mraediately. I find it necessary lo tender tiffs resignation due to my recent increase in workload. I have taken a new position with Invensys corporation. Invensys is a Brilhish concern thai has acquired several local companies - Powerware_ Lamb0a Power Systems and Deltec. In ti~ ~e, as we finalize the merger of these companies and my workload is more predictable, 1 would tike to do additional volunteer work for the city. Respectfully yours. cc: Cheryl Dye, ED~Managcr Robert Villareal, EDC Chafl~rson 05/03/00 WED 17:06 FAX 619+427+4246 CHULA VISTA PUBLIC LIB ~001 Richard., Todd Chula Vi,ta Offic~ of Caltural Arts 365 F St eet Chula Vi ta, Ca. ' 910 Mr. Tod~ I' 1 am wri' ng this I make my verbal resignation from the Cultural Arts Commission official~ I have m; de a co~ nitment to myself to spend more time on my painting and sculpting and less time doing vo unteer v rk. Thank you and/VI ~or Horton very much flor asking me m serve 1 have enjoyed the time spent Sincerels, Robert E Clemer COUNCIL AGENDA STATEMENT Item: ~L Meeting Date: 05/09/00 ITEM TITLE: Resolution Amending the FY 99/00 budget by appropriating unanticipated donation revenue in the amount of $6,675 to the Library and Recreation Depaxtment budget for expenditures associated with the Cultural Arts Program Deputy City Manager Palmer/~) SUBMITTED BY: REVIEWED BY: City Manager~[& ~/ (4/5ths Vote: YES X NO __) Since December 1999, the Library and Recreation Department has been receiving donations from various organizations and individuals to support the programs in the Department. At this time, the Department wishes to accept the donations and appropriate and budget the funds for the cultural arts programs intended to receive the funds. STAFF RECOMMENDATION: That Council approve the resolution accepting the donations to the Library and Recreation Department, amending the FY 99/00 budget, and appropriating the funds. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: The Office of Cultural Arts has received funds in various amounts from both individuals and corporations in support of the April 2000 "Taste of the Arts" event. These funds now total $6,675. The Department now needs to appropriate these donations in order to pay for the expenses incurred by holding this community/cultural arts event. FISCAL IMPACT: The donated funds will provide $6,675 for cultural arts programs associated with "Taste of the Arts". [e:~home~library~A113\Donations for CA - Rec - Lib.A113 - 04/-24-00] RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 99/00 BUDGET BY APPROPRIATING UNANTICIPATED DONATION REVENUE IN THE AMOUNT OF $6,675 TO THE LIBRARY AI~D RECREATION DEPARTMENT BUDGET FOR EXPENDITURES ASSOCIATED WITH THE CULTURAL ARTS PROGRAM WHEREAS, since December 1999, the Library and Recreation Department has been receivin§ donations from various organizations and individuals to support the programs in the Department; and WHEREAS, these funds now total $6,675; and WHEREAS, at this time, the Department wishes to accept the donations and appropriate and budget the funds for the Cultural Arts Programs intended to receive the funds. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the FY 99/00 budget by appropriating unanticipated donation revenue in the amount of $6,675 to the Library and Recreation Department budget for expenditures associated with the Cultural Arts Program. Presented by Approved as to form by Palmer, Deputy City MD~or J-ot~n M.-K-a~n~,-C~ty A~orney H: \home ~at t orney\reso ~donat ion. cap COUNCIL AGENDA STATEMENT Item ,~ Meeting Date 5/9/2000 ITEM TITLE: Resolution Rejecting bids for "MTDB Right of Way Beautification, Phase 1, in the City of Chula Vista, California (LD-106)" Project · / SUBMITTED BY: Director of Public Works /~ REVIEWED BY: City Manager ~-~q?~ (4/Sths Vote: Yes No X ) At 2:00 p.m. on Wednesday, February 23, 2000, the Director of Public Works received sealed bids for the "MTDB Right of Way Beautification, Phase 1, in the City of Chula Vista, California" project. The work consists of planting and irrigation within segments of the four (4) mile MTDB right of way corridor. The work also includes all labor, material, equipment, transportation and traffic control necessary for the project. RECOMMENDATION: That Council reject the bids received for the project due to bid deficiencies and direct the Director of Public Works to re-advertise the project. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: General The MTDB right of way corridor is a barren corridor between the City's Bayfront and central Chula Vista. The proposed project will provide an attractive entry into the City from I-5 and transition from the Bayfront to central Chula Vista. The Phase 1 improvements to the MTDB right of way corridor will include demolition of existing concrete paving, construction of concrete paving in the medians at E Street and H Street and the construction of an asphalt concrete dike near the Palomar Trolley Station adjacent to Industrial Boulevard. Also included is the planting of trees, shrubs, and groundcover on the slopes and medians at E Street, H Street, Palomar Trolley Station and Main Street. Other work includes the construction of irrigation systems, electrical work for irrigation systems and traffic control during construction. Proiect Advertisement Engineering staff advertised the project. Staff received and opened bids on February 23, 2000. Bids were received from five (5) contractors to perform the work as follows (listed in order of base bid amount): Page 2, Item Meeting Date 5/9/2000 Contractor Base Bid Alternate A Base Bid & Bid Alt. A Total 3-D Enterprises, Inc. - San Diego, California $314,681.30 $70,953.95 $385,635.25 Shiva Construction - San Diego, California $334,851.62 $144,564.80 $479,416.42 Castello Inc. - Escondido, California $354,797.00 $90,362.30 $445,159.30 Scheidel Contracting - La Mesa, California $384,302.20 $192,478.00 $576,780.20 A & B Landscaping - San Diego, California $412,636.50 $100,221.75 $512,858.25 The low bid by 3-D Enterprises, Inc. is below the landscape architect's estimate for the base bid and Alternate A bid by $9,991.77 (approximately 3%) and $14,601.08 (approximately 17%), respectively. The Alternate A bid is for the landscaping and irrigation of the slopes north of E Street. The bid alternate was included to allow the contractor to perform additional work specified in the plans if the budget allowed and to give the City flexibility in the construction of the project. Bid Deficiencies Bid deficiencies were discovered by City engineering staff at the bid opening and during subsequent reviews of the bid packages. Deficiencies in the bid packages primarily included: i. Failing to submit all of the documents required by the bid Proposal Requirements and Conditions at the bid opening (the missing documents included: the "Disclosure Statement", "Disclosure of Lobbying Activities", "Addendum No. 1", "List of Subcontractors", and "Certificate of Notification to Subcontractors"); ii. Incorrect unit cost entries in bid proposals that resulted in incorrect item and grand totals; and/or iii. Arithmetic errors in bid proposals that resulted in discrepancies with base bid grand totals. It was determined that the bid deficiencies compromised the integrity of the bid packages and that they should not be accepted. Based on this decision, three (3) out of the five (5) bid packages could not be accepted due to each containing at least one or more of the aforementioned bid deficiencies. Further, it should be noted that City engineering staff and the Department of Planning and Building would like to award Alternate A concurrently with the project in an effort to complete all of the proposed work for Phase 1. If Alternate A is not awarded with the project, the included work would not be completed until Phase 2 of the MTDB right of way beautification project; currently, there is no schedule for Phase 2 of the project. Due to the allocated funding for the project, all of the bid proposals submitted, with the exception of the low bidder, would not allow Alternate A to be constructed. Page 3, Item Meeting Date 5/9/2000 Engineering staff plans to prepare an addendum for the project; this addendum will be the second of the project. The addendum will include items not contained within the original specifications that will improve the competitive bidding for the project. Also, engineering staff feels that if the project is re-advertised, the future base bids and alternate bids submitted will be closer to the amounts of the low bidder. In order for the City to potentially complete all of the Phase 1 work within the allocated budget, re-advertisement is necessary. Further, by rejecting the bids, the City will be sending a message to future contractors bidding on City projects that only clear, complete and accurate bid packages will be accepted. Therefore, based on the above stated reasons, staff recommends that all bids received for the "MTDB Right of Way Beautification, Phase 1" project be rejected by City Council. FISCAL IMPACT: Them will be minor staff costs to m-bid the project. H:L!tOME\ENGINEER\AGENDA~LD 106rej .get.doc 5/2/00 4:47:40 PM RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR "MTDB RIGHT OF WAY BEAUTIPICATION, PHASE 1, IN THE CITY OF CHULA VISTA, CALIFORNIA (LD-106)" PROJECT WHEREAS, at 2:00 p.m. on Wednesday, February 23, 2000, the Director of Public Works received the following sealed bids for the "MTDB Right of Way Beautification, Phase 1, in the City of Chula Vista, California" project: Contractor Base Bid Alternate A Base Bid & Bid Alt. A Total 3-D Enterprises, Inc. - San Diego, California $314,681.30 $70,953.95 $385,635.25 Shiva Construction - San Diego, California $334,851.62 $144,564.80 $479,416.42 Castello Inc. - Escondido, California $354,797.00 $90,362.30 $445,159.30 Scheidel Contracting - La Mesa, California $384,302.20 $192,478.00 $576,780.20 A & B Landscaping - San Diego, California $412,636.50 $100,221.75 $512,858.25 WHEREAS, the low bid by 3-D Enterprises, Inc. is below the landscape architect's estimate for the base bid and Alternate A bid by $9,991.77 (approximately 3%) and $14,601.08 (approximately 17%), respectively; and WHEREAS, the Alternate A bid is for the landscaping and irrigation of the slopes north of E Street and the bid alternate was included to allow the contractor to perform additional work specified in the plans if the budget allowed and to give the City flexibility in the construction of the project; and WHEREAS, bid deficiencies were discovered by City engineering staff at the bid opening and during subsequent reviews of the bid packages; and WHEREAS, deficiencies in the bid packages primarily included: i. Failing to submit all of the documents required by the bid Proposal Requirements and Conditions at the bid opening; ii. Incorrect unit cost entries in bid proposals that resulted in incorrect item and grand totals; and/or iii. Arithmetic errors in bid proposals that resulted in discrepancies with base bid grand totals. WHEREAS, it was determined that the bid deficiencies compromised the integrity of the bid packages and that they should not be accepted, and based on this decision, four (4) out of the 1 five (5) bid packages could not be accepted due to each containing at least one or more of the aforementioned bid deficiencies; the top three (3) bidders for the project were included in this group; and WHEREAS, Engineering staff and the Department of Planning and Building may award Alternate A concurrently with the project in an effort to complete all of the proposed work for Phase 1 and if Alternate A is not awarded with the project, the included work would not be completed until Phase 2 of the MTDB right of way beautification project; currently, there is no schedule for Phase 2 of the project; and WHEREAS, due to the allocated funding for the project, all of the bid proposals submitted, with the exception of the low bidder, would not allow Alternate A to be constructed; and WHEREAS, Engineering staff feels that if the project is re-advertised, the future base bids and alternate bids submitted will be closer to the architect's estimate; and WHEREAS, staff recommends that all bids received for the "MTDB Right of Way Beautification, Phase 1" project be rejected by City Council. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby reject bids for "MTDB Right of way Beautification, Phase 1, in the City of Chula vista, California (LD-106)" Project. Presented by Approved as to form by John P. Lippitt, Director of C~P~ . ~y ' y orney Public Works H:\home\at~orney\reso\mtdbbid.rej 2 COUNCIL AGENDA STATEMENT Item Meeting Date 5/9/2000 ITEM TITLE: Resolution Rejecting bids for "Telegraph Canyon Road Median Improvements, in the City of Cl~ula Vista, California (LD-103)" Project SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager d ¢'[7'' (4/Sths Vote: Yes __ No X ) At 2:00 p.m. on Wednesday, March 15, 2000, the Director of Public Works received sealed bids for the "Telegraph Canyon Road Median Improvements, in the City of Chula Vista, California' project. The work consists of landscaping and irrigation within the existing median island on Telegraph Canyon Road from 1-805 to Paseo del Rey. The work also includes all labor, material, equipment, transportation and traffic control necessary for the project. RECOMMENDATION: That Council reject the bids received for the project due to bid deficiencies and direct the Director of Public Works to re-advertise the project. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: General The requirement to landscape the segment of the median between 1-805 and Paseo del Rey falls upon the City. Telegraph Canyon Road is designated as a scenic highway and the proposed landscaping will help enhance the appearance of this major roadway. The improvements for the project will include the installation of irrigation systems and landscaping and stamped concrete work. Other work includes the construction of electrical work for irrigation systems and traffic control during construction. The services of KTUA Landscape Architecture and Planning and Rick Engineering Company were retained for the preparation of the project's contract documents and plans. Project Advertisement Engineering staff advertised the project. Staff received and opened bids on March 15, 2000. Bids were received from nine (9) contractors to perform the work as follows (listed in order of base bid amount): Contractor Base Bid Shiva Construction $198,865.60 Wier Construction Corporation $204,448.34 Har Construction Inc. $224,873.87 Geoscene Constmction, Inc. $231,468.40 C.D.M. Construction Corporation $235,988.71 Castello Inc. $236,700.55 Jimenez Inc. dba MJC Constmction $242,200.64 Valley Crest $265,332.19 Scheidel Contracting & Engineering $326,766.10 Page 2, Item Meeting Date 5/9/2000 The low bid by Shiva Construction is below the landscape architect's estimate of $245,281.00 by $46,416.40 or 18.9%. Bid Deficiencies Bid deficiencies were discovered by City engineering staff at the bid opening and during subsequent reviews of the bid packages. Deficiencies in the bid packages primarily included: i. Failing to submit all of the documents required by the bid Proposal Requirements and Conditions at the bid opening (the missing documents included: "Addendum No. 1" and "Addendum No. 2"); ii. Including the incorrect "Bidder's Bond" with the bid package; iii. Arithmetic errors in bid proposals that resulted in discrepancies with base bid grand totals; and/or iv. Various items in the bid proposals submitted did not reasonably reflect the estimated costs for the improvement work. It was determined that the bid deficiencies compromised the integrity of the bid packages and that they should not be accepted. Based on this decision, the top four (4) bid packages could not be accepted due to each containing at least one or more of the aforementioned bid deficiencies. Further, City engineering staff felt that an addendum should be issued. The proposed addendum will be the third addendum of the project and will include revising the bid specifications to clarify items in the original specifications and plan set. Engineering staff will prepare the addendum revising the specifications. Also, by rejecting the bids, the City will be sending a message to future contractors bidding on City projects that only clear, complete and accurate bid packages will be accepted. Therefore, based on the above stated reasons, staff recommends that all bids received for the "Telegraph Canyon Road Median Improvements" project be rejected by City Council. FISCAL IMPACT: There will be minor staff costs to re-bid the project. 4/28/00 3:36:00 PM HSHOME\ENGINEER~AGENDA\LD103refget.doc q -~ ~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR "TELEGRAPH CANYON ROAD MEDIAN IMPROVEMENTS, IN THE CITY OF CHULA VISTA, CALIFORNIA (LD-103)" PROJECT WHEREAS, at 2:00 p.m. on Wednesday, March 15, 2000, the Director of Public Works received the following sealed bids for the "Telegraph Canyon Road Median Improvements, in the City of Chula Vista, California" project: Contractor Base Bid Shiva Construction $198,865.60 Wier Construction Corporation $204,448.34 Har Construction Inc. $224,873.87 Geoscene Construction, Inc. $231,468.40 C.D.M. Construction Co~oration $235,988.71 Castello Inc. $236,700.55 Jimenez Inc. dba MJC Construction $242,200.64 Valley Crest $265,332.19 Scheidel Contracting & Engineering $326,766.10 WHEREAS, the low bid by Shiva Construction is below the landscape architect's estimate of $245,281.00 by $46,416.40 or 18.9%; and WHEREAS, bid deficiencies were discovered by C.ity engineering staff at the bid opening and during subsequent reviews of the bid packages; and WHEREAS, deficiencies in the bid packages primarily included: i. Failing to submit all of the documents required by the bid Proposal Requirements and Conditions at the bid opening; and/or ii. Arithmetic errors in bid proposals that resulted in discrepancies with base bid grand totals. WHEREAS, it was determined that the bid deficiencies compromised the integrity of the bid packages and that they should not be accepted and based on this decision, the top four (4) bid packages could not be accepted due to each containing at least one or more of the aforementioned bid deficiencies; and WHEREAS, City engineering staff felt that an addendum should be issued and will include revising the bid specifications to clarify items in the original specifications; and 1 WHEREAS, staff recommends that all bids received for the "Telegraph Canyon Road Median Improvements" project be rejected by City Council. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby reject bids for "Telegraph Canyon Road Median Improvements, in the City of Chula Vista, California (LD-103)" Project. Presented by Approved as to form by John P. Lippitt, Director of J6~n M. K~e~, City Attorney Public Works /-- COUNCIL AGENDA STATEMENT Item 5 Meeting Date 05/09/00 ITEM TITLE: Resolution Approving the transfer of funds from Personnel Services and Supplies and Services accounts to Capital Equipment accounts for the purchase of equipment in Public Works Department's operating budget and the Sewer Service Revenue Fund operating budget SUBMITTED BY: Director of Public Works/~ (~(Z~ (4/5ths Vote: Yes X No ) REVIEWED BY: City Manager ~6>r~x; The City's budget transfer policy calls for City Council's approval to transfer more than $15,000 between budget summary accounts, such as between Personnel Services and Capital Equipment. The Public Works Department has a number of small equipment items that have been approved by the City Manager for purchase this fiscal year. However, the dollar amounts of these items exceed the $15,000 limit. RECOMMENDATION: That Council adopt the resolution approving the transfer of funds from Persolmel Services and Supplies and Services accounts to Capital Equipment accounts for the purchase of equipment in Public Works Department's operating budget and the Sewer Service Revenue Fund operating budget. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In discussions with the City Manager regarding the Department's proposed 2000-01 budget, the City Manager approved our request to purchase a number of small equipment items, as either replacement items or new items. These items, along with a brief description, are listed below. 1. Six gas detectors, at a cost orS 10,850, for the Wastewater Maintenance crews to use when entering confined spaces. This division currently has six, which is not sufficient, due to the expansion in the number of crews. These detectors will be purchased from savings in Supplies and Services accounts in the Sewer Service Revenue Fund. 2. Two portable night lighting systems, at a cost of $16,100, for the Wastewater Maintenance staff to use when working at night. Crews are frequently called out at night to repair sewer main or sewer lateral stoppages or breaks. The lighting currently used by staff does not sufficiently illuminate the entire work area. These lights will be purchased from savings in Supplies and Services accounts in the Sewer Service Revenue Fund. Page 2, Item Meeting Date 05/09/00 3. One portable gasoline-powered pump, at a cost of $2,000, for the Wastewater Maintenance staff to use to remove water from trenches, manholes, and pump station vaults. This pump will be used in places where it is impractical to use our current submersible pump and larger portable pump, such as in shallow or confined areas. This pump will be purchased from savings in Supplies and Services accounts in the Sewer Service Revenue Fund. 4. One floor-cleaning machine, at a cost of $7,000, to be used by the Custodial Services staff to clean interior floors at City facilities. This machine can clean several types of flooring surfaces quickly. Currently, staff uses brooms and mops to clean large common areas at the Civic Center and other high-traffic areas, such as the Police building and recreation centers. Use of this machine will save approximately 4-5 hours of staff time per week. This machine will be purchased from salary savings in the General Fund. 5. One high-pressure water blaster for removing graffiti, at a cost of $20,000, to be used by both the Building Maintenance staffand Custodial Services staff. This staff currently borrows the Park Maintenance Division's pressure sprayer to remove graffiti from City facilities. However, the Parks crews use their sprayer daily to remove graffiti in parks. Therefore, a separate water blaster is needed by Building Maintenance staff to remove the daily graffiti found throughout our City buildings, especially at recreation centers. In addition, the Custodial Services staffwill use this machine to pressure wash the entryways, walls, benches, and planters at City facilities. This machine will be purchased from salary savings in the General Fund ($10,300) and existing Public Facilities Development Impact Fee (DIF-Corporation Yard) funds ($9,700) in the DIF-Corp Yard operating budget. The Director of Budget and Analysis has approved use of these DIF funds. 6. Twenty tables and sixty chairs, at a cost of $11,000, to be used by Custodial Services staff for use at all City facilities. Tables and chairs are needed at various City functions and meetings on a weekly basis. Due to budget constraints in the past, the Division has been unable to replace many of its older tables and chairs, which are stored at the Civic Center Library. Staff has had to borrow tables and chairs from recreation centers, which are not always available due to the number of classes and functions going on at these facilities. This equipment will be purchased from salary savings in the General Fund. 7. One large chain saw, at a cost of $1,700, to be used by the Street Tree Maintenance crew. This saw will replace a smaller chain saw currently used by staff. This larger model can better handle the cutting of the larger trees. This saw will be purchased from salary savings in the General Fund. 8. Replacement of the fax machine at the El Dorado building, at a cost of $2,000. This fax machine is used by all of the staff in the E1 Dorado building, including Construction Inspection and Project Management and Design. The existing fax machine is slow and has limited memory capacity, and produces poor-resolution copies. This machine will be purchased from salary savings in the General Fund. Page 3, Item Meeting Date 05/09/00 9. Replacement of the copier at the E1 Dorado building, at a cost of $10,000. This copier is used by all of the staffin the E1 Dorado building. It fi-equently breaks down, is slow, and will no longer be covered under a maintenance contract due to its age and number of copies it has produced. This machine will be purchased from salary savings in the General Fund. 10. Replacement of six computers and two monitors for the Project Management and Design section of the Engineering Division, at a cost of $12,330. Two of the computer monitors are 17"; 19" are required for the engineers who do technical drawings and designs using Autocad software. In addition, because of the complexity and memory needed for the newer versions of Autocad software, used to design all City infrastructure improvements, faster and higher memory capacity computers are needed. The Management and Information Services Director supports this upgrade. The computers that will be replaced will be transferred to other employees who are not involved in design work or work consuming significant computer memory and storage. These items will be purchased from salary savings in the General Fund. 11. Purchase of a grader attachment to a Bobcat for Parks Maintenance Division, at a cost of $7,000. As part of the Parks staffing study, Council approved the purchase of a Bobcat by the Division. In addition, the study indicated that staff would be performing monthly maintenance of all sports fields, and more frequent maintenance for softball fields. A grader attachment to the Bobcat is needed to allow staff to grade and level the ball fields. We have received ongoing complaints from youth and adult sports teams regarding the condition of the playing fields. This machine will be purchased from salary savings in the General Fund. FISCAL IMPACT: Sewer Service Revenue funds of $28,950 will need to be transferred from various Supplies and Services accounts to the Other Equipment capital account in the Sewer Service Revenue Fund operating budget for the purchase of equipment for the Wastewater Division. General Fund funds of $61,330 will need to be transferred from various Salaries accounts of the Public Works Department's operating budget to the Office Equipment and Other Equipment accounts for the appropriate division and section. Existing DIF-Corp Yard funds of $9,700 from the DIF operating budget will also be used. The total cost of this equipment is $99,980. H:~]-IOME~ENGADM~ I 13EQUIPREV.DOC RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE TRANSFER OF FUNDS FROM PERSONNEL SERVICES AND SUPPLIES AND SERVICES ACCOUNTS TO CAPITAL EQUIPMENT ACCOUNTS FOR THE PURCHASE OF EQUIPMENT IN PUBLIC WORKS DEPARTMENT'S OPERATING BUDGET AND THE SEWER SERVICE REVENUE FUND OPERATING BUDGET WHEREAS, the City's budget transfer policy calls for City Council's approval to transfer more than $15,000 between budget summary accounts, such as between Personnel Services and Capital Equipment; and WHEREAS, the Public Works Department has a number of small equipment items that have been approved by the City Manager for purchase this fiscal year, however, the dollar amounts of these items exceed $15,000. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby approve the transfer of $99,980 as follows: 1. Sewer Service Revenue funds of $28,950 will need to be transferred from various Supplies and Services accounts to the Other Equipment capital account in the Sewer Service Revenue Fund operating budget for the purchase of equipment for the Wastew~ter Division. 2. General Fund funds of $61,330 will need to be transferred from various Salaries accounts of the Public Works Department's operating budget to the office Equipment and Other Equipment accounts for the appropriate division and section. 3. Existing DIF-Corp Yard funds of $9,700 from the DIF operating budget will also be used. Presented by Approved as to form by John P. Lippitt, Director of John ~. Kaheny, City At~orne~ Public Works H~ ~home~attorney\reso\xfer eng COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/09/00 ITEM TITLE: Resolution Granting a twenty-foot wide easement to Sweetwater Authority, a Joint Power Agency, for installing, operating, maintaining, replacing and repairing water mains and service pipes along City owned property located on Lot "A" of Carvalos Acres Unit no. 2, According to Map No. 3949 and within portion of Quarter Section 112 of the Rancho De La Nacion, According to Map No. 166 SUBMITTED BY: Director of Public Worksffff/l~/ REVIEWED BY: City Manager ¢~iz, (4/5ths Vote: Yes No X ) Sweetwater Authority proposes to construct water main facilities and appurtenances on City property under an emergency access road and is requesting a 20' easement for installing, operating, maintaining, replacing and repairing water mains and service pipes, together with the right of ingress thereto and egress therefrom over said easement. RECOMMENDATION: That Council adopt the subject resolution granting a twenty-foot wide maintenance and access easement across City owned property to Sweetwater Authority, a Joint Power Agency, and have the Mayor execute the easement on behalf of the City. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The proposed easement site is located across City owned property on Lot "A" of Carvalos Acres Unit no. 2, According to Map No. 3949 and within portion of Quarter Section 112 of the Rancho De La Nacion, According to Map. No.166 (see Exhibit B). It is Sweetwater Authority's intention to construct a 24" water line for the Rice Canyon Booster By Pass by utilizing the twenty foot easement within City owned property. By granting this easement, Sweetwater Authority and its successors in interest will be guaranteed continuous use of the City's property for their underground facilities. The easement is proposed over an existing 10' wide asphalt paved access road. The access road is being used by the City's Public Works Operations Division to access the site to deposit clean fill and their recyclables and by Mr. Frank Ferreira to operate a tree farm based on an agreement between himself and the City. Page 2, Item __ Meeting Date 5/09/00 There is also an existing 19" water line and easement owned by Sweetwater Authority located adjacent to the access road. Sweetwater Authority will be responsible for repairing or replacing the AC access road after installation of their water line. The language in the easement has been reviewed by the City's Engineering Division and approved by the City Attorney's office. FISCAL IMPACT: There is no cost to the General Fund. Sweetwater Authority has paid a $250.00 application fee for processing this easement. Attachments: Exhibit "A"- Easement to Sweetwater Authority Exhibit "B"- Showing location of easement. H:~HOMEXENGINEER~PERMITS~PF274_R.BFS April 28, 2000 (8:50am) EXHIBIT "A" RECORDING OF THIS DOCUMENT REQUESTED FOR THE BENEFIT OF SWEETWATER AUTHORITY When Recorded Mail to: SWEETWATER AUTHORITY P. O. Box 2328 Chula Vista, CA 91912-2328 Attn: Engineering Dept. Assessor's Parcel No. 574-030-08-00 Project Name: RICE CANYON BOOSTER GRAVITY BYPASS, B.P. 99-14E DOCUMENTARY TRANSFER TAX - NONE SWEETWATER AUTHORITY Marisa FarpOn-Friedman, Secretary of the Board EASEMENT THE CITY OF CHULA VISTA, a Municipal Corporation hereinafter called GRANTOR, does hereby grant to SWEETWATER AUTHORITY, a Joint Powers Agency, a public agency formed pursuant to Government Code Section 6500 et seq., its succesors and assigns, hereinafter called GRANTEE, a permanent easement for the purpose of installing, operating, maintaining, replacing and repairing water mains, service pipes, the right-of ingress and egress for such purposes, and appurtenances within LOT "A" OF CARVALOS ACRES UNIT NO. 2 ACCORDING TO MAP NO. 3949 FILED IN THE OFFICE OF THE RECORDER OF SAN DIEGO COUNTY as more particularly described in Exhibit "A" and "B", attached hereto and made a part hereof by this reference. Sweetwater Authority shall defend, indemnity and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including, but not limited to, attorneys' fees) arising out of the conduct of the Permittee, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this easement. Sweetwater Authority indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Sweetwater Authority at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees arising out of the conduct of Sweetwater Authority, or any agent or employee, subcontractor, or others in connection with the execution of the work covered by this easement, except those claims arising from the sole negligence, sole willful conduct or active negligence of the City, its officers or employees. Sweetwater's indemnification of the City shall not be limited by any prior or subsequent declaration by the Sweetwater Authority. Grantor will exercise only such reserved rights in said land as will not interfere with or prohibit the free and complete use and enjoyment by Grantee, its successor or assigns, of the rights hereby granted. Grantee shall have the right to assign any or all rights granted in this easement in whole or in part to other companies providing utility or communication services. The Grantor herein agrees that no buildings and/or structures will be erected, walls constructed, fences built nor trees planted upon the easement herein described. No changes in the existing grade will be made without prior written approval of the Grantee; or encroachment by other utilities public or private unless Grantee authorizes in writing. Grantor may, at the sole expense of Grantor, and subject to Grantee's written consent, relocate Grantee's facilities in the event that they conflict with the future development of said properb/, provided that Grantor does not cause the discontinuance of service to any area being served and Grantee receives, without expense to Grantee, an easement comparable to this easement for said relocated facilities. (Proper Acknowledgement to be attached by Notary Public) City of Chula Vista Shirley A. Horton Mayor of City of Chula Vista (Date) ATTEST: Susan Bigelow, City Clerk I:~eng_adminUoreleiV'nisc\easement dce canyon BP 99-14.doc EXHIBIT "A" LEGAL DESCRIPTION A strip of land 20.00 feet in width, lying within a portion of Lot "A" of Carvalos Acres Unit No. 2, according to Map No. 3949, filed in the Office of the Recorder of San Diego County, and within a portion of Quarter Section 112 of the Rancho de la Nacion, according to Map No. 166, filed in the Office of the Recorder of San Diego County, all in the City of Chula Vista, County of San Diego, State of California, said strip of land lying 10.00 feet on each side of following described centerline: COMMENCING at the Southerly E.C. of that certain 500 foot radius curve concave Northeasterly in the centerline of Carvalos Drive as shown on said Map No. 3949; thence along said centerline South 48o05, East, 408.47 to a point in the Northerly line of said Lot "A", of said Map No. 3949; thence continuing along a prolongation of said centerline, South 48o05, East, 7.02 feet to the TRUE POINT OF BEGINNING; thence leaving said prolongation North 59°46'44'' East, 49.43 feet; thence North 47°15'10'' East, 68.27 feet; thence North 30o23'09'' East, 91.83 feet to the beginning of a 310.00 foot radius curve concave Westerly; thence Northerly along the arc of said curve through a central angle of 54°51'15'' a distance of 296.79 feet; thence tangent to said curve North 24°28'06'' West, 381.05 feet; thence North 69°28'06'' West, 25.83 feet to the POINT OF TERMINUS, said point lying North 16°16'51'' East, 78.00 feet from an angle point Jn the Westerly line of said Lot "A" defined as the intersection of the courses bearing North 66°34'30'' East and North 84°48'50'' East as shown on said Map No. 3949. EXCEPTING therefrom that portion lying Southerly of the Southerly line of deed to the City of Chula Vista filed in the Office of the Recorder of San Diego County April 7, 1975 as Document No. 75-78592 of Official Records. The sidelines of said 20.00 foot wide strip of land to be shortened or extended so as to terminate on the Southwest in said prolongation of the centerline of Carvalos Drive, and on the North in a line drawn at right angles tb the last described course. Said parcel of land contains an area of 0.42 acre, more or less. This legal description was prepared by me or under my direction in conformance with the Land Surveyor's Act, this December 9, 1999. Mary M.~costa, PLS 6664 License Expiration Date: June 30, 2000 Page 1 of 1 ] 147T6-R.ICECNY-lgI.doc .. PAWO 1-147-015-06 December 9, 1999 ~ WA ~ ~ EASF_/vEN-r AC;CX..J:;:~9 (AEr_.A - 0.42 ~ EXISTr,,~ 60' WA ~ ~:~ AI',,D TELCO ~ ~ BOOK 5892, F~. IO5, I:LE--C. 12/12J~5 5 ~ ~ 20' wa~ EASEA/15NT PE~ BOOK 1975, Pg. 119'/O7, I~EC. 5/16/1g75 (3-SW-595) '~ E~ 12' I~OA~) .~_A~ ~ ~BOOK 1975, PG. ll9'707, I~-C. 5/J(3/1975 (3-SW-595} ' ' ' ~ ED<3S'TI'.,~ 20' WA~J::~ EASE/VE~T ~ BOOK 1960, PG. ~7'71, REC. 8/12/1960 (3-SW-$55) ~ EX~S'T'IN~ IO' WA'ij::~ EASEME~r'F PE~ E~C)OK 7393, PG. 74, ~-C. 12JLO/1958 (3-SW-3,24> ~ CITT Ol= C_,,L4J_A VISTA BOUNDAI~¥ L..~I~ PIS~ DF::~F3 I~--C. O4/O7/1975 AS DOC. 78592 ASS'~SSO.q'S PAI~ ~ 574-030--08, 'n-ts D~AWt",~ WAS PI~EPAEED bT ME O1~ V]C~",J['J'~ MAP MY DI:~ON N CO~MANC~ wm.-I TIE LANO NO SCALE ,SU~VETOI~'S ,ACT TI-IS ~ c). COSTA, P.L.S. (~ · ~S~E EXPIRATION. O~/30/2OOO !MENT PLAT 3-SW- TO: PROJEOT~ ENGINEER FRObI: RECORDING DATE: /./~ 8OALE: NONE DATE DOCUME~ NO.:¢ '~ 8HEET 1 OF 2 LOT 8'o6~w 25.85'  N16'16'51"E 78.00' (TILE ONLY) ~ MAP 8821 PO,q. J~ LOT B d 1/4. SEC. 112 -,d MAP 188 ~AL~ r-loo' J'v'J.A ? 8949 LOT 13 LoT MAP LOT 17 .~ MAP 3g~g OT 21 50T 81 LOT 2o MAP / LOT tg LOT 36 '~ MENT PLAT 3-SW- ?,. TO: ~T: E~INEER ~OM: R~ORDING DA~: /.,~ SOA~: ~"]~' ':'" DA~ ~UME~ NO.:¢ / SHE~ 2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A TWENTY-FOOT WIDE EASEMENT TO SWEETWATER AUTHORITY, A JOINT POWER AGENCY, FOR INSTALLING, OPERATING, MAINTAINING, REPLACING kND REPAIRING WATER MAINS AND SERVICE PIPES ALONG CITY OWNED PROPERTY LOCATED ON LOT "A" OF CARVALOS ACRES UNIT NO. 2, ACCORDING TO MAP NO. 3949 AND WITHIN PORTION OF QUARTER SECTION 112 OF RAI~CHO DE LA NACION, ACCORDING TO MAP NO. 166 WHEREAS, Sweetwater Authority proposes to construct water main facilities and appurtenances on City property under an emergency access road and is requesting a 20' easement for installing, operating, maintaining, replacing and repairing water mains and service pipes, together with the right of ingress thereto and egress therefrom over said easement. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula Vista does hereby grant a twenty-foot wide easement to Sweetwater Authority, a Joint Power Agency, for installing, operating, maintaining, replacing and repairing water mains and service pipes along City owned property located on Lot "A" of Carvalos Acres Unit No. 2, according to Map No. 3949 and within a portion of Quarter Section 112 of the Rancho De La Nation, according to Map No. 166. BE IT FURTHER RESOLVED that the Mayor of the city' of Chula vista is hereby authorized and directed to execute said easement for and on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt, Director of Jo~/M. Kaheny, C~Y Attorn~- Public Works ~ H t ~home~attorney~reso~easement swa COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/9/00 ITEM TITLE: Resolution Approving Final "A" Map No. 2 for Otay Ranch SPA One Village One, Chula Vista Tract No. 96-04A. Rejecting on behalf of the Public, Santa Andrea Street, Paseo Ranchero and Olympic Parkway. Accepting on behalf of the City of Chula Vista the Landscape Buffer Easements, the Public Drainage Easements, the Trail Easements, the Sidewalk Easements, the Emergency Access 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 for Open Space Lots "C", "D", "E", "F", "G", "N" and "R" and Lot "O" for Public Park Purposes. Resolution Approving "A" Map Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 96-04A, Portion of Village One, Otay Ranch SPA One and authorizing the Mayor to Execute Said Agreement. SUBMITTED BY: Director of Public Works ~ l REVIEWED BY: City Manager~ (4/5ths Vote: Yes No X ) On May 4, 1999, by Resolution No. 19448, the City Council approved a Tentative Subdivision Map for Chula Vista Tract 96-04A, Otay Ranch SPA One, Village One, Phase 7. Condition No. 14 of the Resolution requires the developer to submit and obtain the approval of the City of a master final map CA" Map) of the tentative map showing "super block" lots. The "A" map is also required to show the public street dedications and backbone 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. 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 East Palomar Street and north of future Olympic Parkway and east of Paseo Ranchero within the area of Otay Ranch Village One designated as Phase 7 (or as the Purple Phase on the amended SPA One Plan). Chula Vista Tract 96-04A, Otay Ranch SPA One Village 1, Phase 7 tentative map consists of a total of five "Super Block" lots, (which will be further subdivided into 383 single family units by Page 2, Item __ __ Meeting Date 5\9\00 subsequent "B" Maps), three multiple-family sites (totaling 819 units), two commercial lots, two Community or Public Facility (CPF) lots, seven public open space lots, one public neighborhood park lot (Heritage Park, 10.17 acres), one private park lot, one public street (Santa Andrea). The "A" Map submitted for approval, however, shows the three multi-family lots as "Not-a-Part". The future development of two of these lots (Tentative Map 96-04A Neighborhoods R-47 and R- 15) is contingent on the submittal and approval of final parcel maps, at which time a Community Park PAD fee will be collected for each multi-family unit. The approval of a final parcel map(s) on these sites will also increase the cumulative EDUs that shall be counted against the Otay Ranch Company's Olympic Parkway Agreement threshold at a ratio of .84 EDU per unit. Neighborhood R-19 is also shown as "Not-a-Part" it is being handled differently, however, since it is under separate ownership. The developer of Neighborhood R-19 has entered into a separate agreement to pay all applicable PAD fees prior to issuance of any building permit on that site. Also, a parcel map will not be required for development of this site. 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 Santa Andrea Street, Olympic Parkway and Paseo Ranchero. Approval of the map also constitutes acknowledgment on behalf of the public of Irrevocable Offers of Dedication for Lot "O" for Public Park Purposes, Lots "C" through "G", "N" and "R" for Open Space. The dedicated streets are being rejected because the developer does not have an obligation to guarantee construction of the public streets with the "A" Map until future phases of the project are considered for approval ("B" Maps) in accordance with the conditions of approval of the tentative map. However, such offers of dedication are to remain open subject to future acceptance. Olympic Parkway and Paseo Ranchero Dedications Olympic Parkway between Paseo Ranchero and the easterly boundary of Otay Ranch Company's ownership in Village One and Paseo Ranchero south of East Palomar were originally offered for dedication and rejected on the first Village One "A" Map. Those original offers of dedication are abandoned on this final map. The final alignments of these roadways Olympic Parkway are reflected on the "A" Map and offered for dedication. These improvements will be secured in accordance with the Olympic Parkway and Related Roadway Improvements Agreement. Under Section 66477.2 of the Subdivision Map Act, these irrevocable offers of dedication may be accepted at any time and will be accepted when security, as required by the Olympic Parkway Agreement, is provided. Drainage easements appurtenant to the Olympic Parkway Dedication and located southerly of Olympic Parkway are not within the subdivision and are granted by separate instrument. Re-subdivision of the Heritage Park Site (Lot "O") Page 3, Item __ __ Meeting Date 5LO\00 The "A" Map includes the Village One Neighborhood Park site as Lot "O". The site was previously offered for dedication as Lot "F" on the first Village One "A" Map. Since the approval of the first "A" Map, the plans for Heritage Park were submitted and have undergone revision. An outcome of the park design review process has been the separation of the pool and the pond sites out of the public park dedication area. The ownership and maintenance responsibility of the pool will remain with the developer until it is turned over to the Master Homeowner's Association. The pond, however, will be treated differently. It has been the Developer's intent that the Village One open space maintenance district (CFD 97-1) will maintain the pond. In order for the pond to be eligible for maintenance by the CFD, it would have to be within a dedicated open space. This is why there is an irrevocable offer of dedication for Lot The developer has executed an "A" Map Supplemental Subdivision Improvement Agreement which addresses several on-going conditions of the tentative map. FISCAL IMPACT: None to the City. Developer has paid all costs associated with the proposed "A" Map and agreement. Attachments: Attachment 1: Minutes of 5/4/99 (Resolution No. 19448) Attachment 2: Plat - Chula Vista Tract 96-04A, Otay Ranch, Village One, Phase 7 Attachment 3: Developer's Disclosure Statement H:\HOME\ENGINEER\AGENDA\V I_MAPA2.113 ' DRS/drs File No. 0600-80-OR165F RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL "A" MAP NO. 2 FOR OTAY RANCH SPA ONE VILLAGE ONE, CHULA VISTA TRACT NO. 96-04A, REJECTING ON BEHALF OF THE PUBLIC, SANTA ANDREA STREET, PASEO RANCHERO AND OLYMPIC PARKWAY, ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA THE LANDSCAPE BUFFER EASEMENTS, THE PUBLIC DRAINAGE AND ACCESS EASEMENTS, THE TRAIL EASEMENTS, THE SIDEWALK EASEMENTS, THE EMERGENCY ACCESS EASEMENTS AND THE ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS GRANTED ON SAID MAP WITHIN SAID SUBDMSION. ACKNOWLEDGING ON BEHALF OF THE PUBLIC THE IRREVOCABLE OFFERS OF DEDICATION OF FEE INTEREST FOR OPEN SPACE LOTS "C", "D", "E", "F", "G", "N" AND "R" AND LOT "O" FOR PUBLIC PARK PURPOSES. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled Chula Vista Tract 96-04A OTAY RANCH, VILLAGE ONE "A" MAP NO. 2, and more particularly described as follows: A portion of Parcel Map No. 18349, together with Lot "F" of Otay Ranch, Village One "A" Map No. 1 according to Map thereof No. 13592. Gross Area: 263.622 Acres No. of Lots: 29 Numbered Lots: 12 Lettered Lots: 17 Public Open Space Lots: 37.565 Acres Public Park Lot: 10.169 Acres is made in the maturer and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED, said Council hereby accepts on behalf of the City of Chula Vista the sixty-two (62) foot wide general utility and access easements within Lots 1,2, 3, 4, 9 and "A" for installation of public utilities, and hereby accepts on behalf of the City of Chula Vista the easements for: public drainage and access, trails, sidewalks, landscape buffers, and emergency access, noting that use of said general utility and general access easements, and easements for public drainage and access, trails, sidewalks, landscape buffers, and emergency access by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula Vista, all as shown on this map within this subdivision, subject to the conditions set forth thereon. H:\SHARED~ATTORNEY\OR 165 RESO.DOC 7,q -/ BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista be and she is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that those certain easements with the right of ingress and egress for general utility and general access, and the easements for public drainage and access, trails, sidewalks, landscape buffers, and emergency access as granted thereon and shown on said map within said subdivision, are accepted on behalf of the City of Chula Vista as herein above stated. BE IT FURTHER RESOLVED, said Council hereby rejects on behalf of the City of Chula Vista, the offer of dedication of the easement for street purposes and other public purposes on this map within this subdivision, noting that Section 66477.2 of the Government Code of the State of California provides that an offer of dedication shall remain open and subject to future acceptance by the City; and has acknowledged on behalf of the City of Chula Vista the Irrevocable Offers of Dedication of Fee Interest in Lots "C", "D', "E", "F", "G", "N", and "R" for Public Open Space and Lot "O" for Public Park Purposes, all as shown on this map within this subdivision noting that Section 7050 of the Government Code of the State of California provides that an offer of dedication shall remain open and subject to future acceptance by the City. BE IT FURTHER RESOLVED that City Clerk be and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. Presented by Approved as to form by John P. Lippitt, Director of John M. Kaheny, City Attorney Public Works H:\SHARED~ATTORNEYXOR 165 RESO.DOC RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING "A" MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 96-04A, PORTION OF VILLAGE ONE, OTAY RANCH SPA ONE, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer of Chula Vista Tract No. 96-04A, Portion of Village One, Otay Ranch SPA One has executed a Supplemental Subdivision Improvement Agreement; and WHEREAS, staff has reviewed said Agreement and determined that it satisfies all the applicable tentative map conditions for final map approval and recommends Council approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the "A" Map Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 96-04A, Portion of Village One, Otay Ranch SPA ONE, a copy of which is on file with the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the city of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt, Director of John M. Kaheny, City Attorney Public Works H: ~home ~at t orney~r eso \MAp9604a. SUP 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 Recorder's Use VILLAGE 1, PHASE 7 OF THE OTAY R3LNCH PROJECT SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT (Conditions 1, ~, 3, 4, 5, 8, 9, 10, 11, 14, 22, 23, 24, 34, 40, 56, 84, 85a and b, 88b, 91, 92, 93, 104, 105, 108, 109, 114, 121, 122, 123, 124, 125, 126, 127, 132, 136, and 144) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this __day of May, 2000, by and between THE CITY OF CHULA VISTA, California ("City" or "Grantee" for recording purposes only) and OTAY PROJECT L.P., a California Limited Partnership, ("Developer" or "Grantor"), with reference to the facts set forth below, which recitals constitute a part of this Agreement: RECITALS A. This Agreement concerns and affects certain real property located in Chula Vista, California, more particularly described on Attachment "A" attached hereto and incorporated herein ("Property"). The Property is within approved Tentative Subdivision Map Chula Vista Tract 96-04A (Resolution No. 19448 on 1 May 4, 1999 the "Resolution"), which project is commonly known as Village 1, Phase 7 of the Otay Ranch Project, Sectional Planning Area One (SPA One), and a portion of Chula Vista Tract 96-04. 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 assigns of any property within the boundaries of the "A" Map. C. Otay Ranch L.P. conveyed title of the Project area to South Bay Project, LLC, a Delaware limited liability company on August 26, 1997, which in turn conveyed the Property to Otay Project LLC, ("Otay Project"), a venture jointly owned by South Bay Project, LLC, a Delaware limited liability company and Otay Ranch Development, LLC, a Delaware limited liability company; and Otay Project sold SPA One Planning Area R-19 to Prowswood- Matsushita Otay Ranch Partners,LLC; and Otay Project sold a portion of SPA One Planning Area C-1 to Jeffery L. Rush, married man as his sole and separate property, and Jaime Liwerant, Co-Trustee of the Liwerant Family Trust U/T/D. D. Developer and/or Developer's predecessor in interest has applied for and the City has approved Tentative Subdivision Map commonly referred to as Chula Vista Tract 96-04A ("Tentative Subdivision Map") for the subdivision of the Property. E. The Developer had also applied for and the City approved the Tentative Subdivision Map commonly referred to as Chula Vista Tract 96-04. Said tentative map included Neighborhood Park P-1 that was subsequently offered for dedication on the first Village 1 "A" Map, Map No. 13592 thereof, as Lot "F". Lots "0" "P" and "Q" of the herein incorporated Property are a re- subdivision of Lot "F". F. The City has adopted Resolution No. 19448('~Resolution") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the Resolution. The conditions are attached hereto as Schedule G. 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. 2 H. 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. d. "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 map. This includes Otay Project, L.P. and any and all owners of real property within the boundaries of the Property, and all signatories to this Agreement including: i) Otay Project, L.P. ii)Jeffer¥ Rush and Jaime Liwerant e. "Guest Builder" means those entities obtaining any interest in the Property or a portion of the Property, after the "A" Map has been recorded. f. "PFFP" means the SPA One Public Facilities Financing Plan adopted by Resolution No. 18286, as amended by Resolution No. 19408 and as may be further amended from time to time. g. "RMP 2" means the Otay Ranch Resource Management Plan, Phase 2, approved by the City Council on June 4, 1996, as amended on July 20, 1999 by Resolution No. 19538 and as may be further amended from time to time. h. "Preserve/Owner Manager" is the entity or entities defined by the RMP 2 with the duties and responsibilities described therein. i. "Parks Master Plan" means the City-wide Parks Master Plan, subject to future City Council approval. j. ~'0tay Ranch Parks Agreement" means the agreement pertaining to the construction of parks in Otay Ranch SPA One, McMillin Lomas Verdes and Otay Ranch adopted by Resolution No. 3 19636 as may be amended from time to time. k. "Backbone Improvement Plans" means all the onsite and offsite improvements required to serve the lots created by the "A" Map, in accordance with improvement plans to be approved by the City. Said improvements shall include, but not limited to, asphalt concrete pavement, base, concrete curb, gutter and sidewalk, sewer, reclaimed and potable water utilities, drainage facilities, street lights, signage, landscaping, irrigation, fencing and fire hydrants. 1. "SPA One Plan" means the Otay Ranch Sectional Planning Area Plan as adopted by the City Council on June 4, 1996 pursuant to Resolution No. 18286 and amended on February 16, 1999 by Resolution No. 19376. NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as set forth below. 1. Performance Obligation. Otay Project, L.P., co- signator to this Agreement, represents to the City that it is acting as the Master Developer for this Project and expressly assumes performance of the obligations set forth in paragraphs ~, 11 a, b and d, of this Agreement. Notwithstanding the foregoing, all parties to this Agreement acknowledge and agree that all such obligations remain a covenant running with the land as set forth more particularly in paragraph 2 below. 2. 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 as described on Attachment "A" 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 4 this agreement and the covenants may be entitled. ¢. 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, provided Developer obtains the prior 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 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. The conveyance of a lot to a Homeowner's Association; iii. The conveyance of a school site as identified in the SPA One Plan to a school district; iv. The execution of a purchase agreement for the sale of a Commercial or Community Purpose Facility lot as identified in SPA One Plan; or v. 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 5 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. Notwithstanding the foregoing, at the close of an individual homeowner's escrow on any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically released from the encumbrance hereof. 3. Condition No. 1 (General Preliminary). In partial satisfaction of Condition 1 of the Resolution, Developer hereby agrees, to comply with the requirements and guidelines of the Otay Ranch General Development Plan (GDP),the SPA One Parks, Recreation, Open Space and Trails Plan, the Public Facilities Financing Plan ("PFFP"), Ranch-Wide Affordable Housing Plan, SPA One Affordable Housing Plan, and the SPA One 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. 4. Condition No. 2 (General Preliminary). In satisfaction of Condition No. 2 the Resolution the Developer hereby agrees to all of the terms, covenants and conditions contained herein shall be binding upon and inure to the benefit of the heirs, successors, assigns and representatives of the Developer as to any or all of the Property. 5. Condition No. 3 (General Preliminary). In partial satisfaction of Condition No. 3 of the Resolution, Developer hereby 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. 6. Condition No. 4 (General Preliminary). In partial satisfaction of Condition No. 4 of the Resolution, Developer 6 -7 hereby 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. 7. Condition No. 5 - (General Preliminary). In partial satisfaction of Condition 5 of the Resolution, Developer hereby agrees, that Developer shall comply with the all applicable SPA One conditions of approval. 8. Condition Nos. 8, 10 and ll- (Conveyance Obligation). In partial satisfaction of Condition Nos. 8, 10 and 11, the Developer agrees as follows: a. prior to approval of each "B" Map and each parcel map for Neighborhood C-1/CPF-1/R-47, or Neighborhood R-15/CPF-2 of the SPA One Plan, the Developer shall be in compliance with all applicable requirements of the RMP 2. b. Prior to approval of the first "B" Map, or a parcel map for Neighborhood C-1/CPF-1/R-47, or Neighborhood R-15/CPF-2 of the SPA One Plan, Developer shall convey open space land in accordance with the RMP 2 for all applicable backbone street lots, open space lots, paseos, and park lots as shown on the "A" Map. ¢. Developer acknowledges that property within the boundaries of the "A" Map which will be the subject of future final maps or parcel maps may have conveyance obligations to fulfill for all development areas, including applicable streets, open space lots, paseos, pedestrian parks shown on the "A" Map. 9. Condition No. 9 - (CEQA). In satisfaction of Condition No. 9 of the resolution, Prior to approval of each final "B" Map, the applicant shall implement all applicable mitigation measures identified in EIR 95-01, subsequent EIR 97-03, the CEQA Findings of Fact for this Project (on file in the City ClerK's Office as Document No. CO96-056 and No. ) and the Mitigation Monitoring and Reporting Program (on file in the City Clerk's Office as Document No. C096-057 and No. 10. Condition No. 14 (Multi-family Lots) In partial satisfaction of Condition No. 14 of the Resolution Developer agrees that in the event the areas designated as Neighborhood R- 15, R-19 or R-47 as shown in the SPA One Plan are proposed for development, a parcel map shall be prepared, submitted and approved by the City Engineer prior to issuance of a building permit. Developer shall satisfy all the applicable conditions of 7 approval of the Tentative Subdivision Map, as determined by the City Engineer and the Director of Planning and Building. 11. Condition No. 22, 23 and 24 (streets, right-of-way and public improvements). In partial satisfaction of Condition Nos. 22, 23 and 24 of the Resolution Developer hereby agrees as follows: a. Off-site Improvements. The Developer shall construct all Otay Ranch SPA One public improvements and provide security satisfactory to the City Engineer in accordance with the first "B" Map Supplemental Subdivision Improvement Agreement for Village One and attachment Exhibit "E" thereto approved by City Council Resolution No. 19211. b Backbone Improvements. Developer agrees to construct Backbone Improvements in accordance with the approved Improvement Plans for Otay Ranch Village One Phase 7 Drawing Nos. 99-768 through 99-788. Prior to the earlier of the following: the first "B" Map approval, or the approval of a parcel map for either Neighborhood C-1/CPF-1/R-47, or Neighborhood R-15/CPF-2 of the SPA One Plan, the developer shall enter into an Agreement and shall secure said improvements in accordance with Section 18.16.220 of the Municipal Code Neigb-borhood Improvements. Developer agrees to guarantee, prior to the approval of each "B" Map or the approval of a parcel map, for either Neighborhood C-1/CPF-1/R-47, or Neighborhood R-15/CPF-2 of the SPA One Plan, all public on and off-site improvements required to serve that particular "B" Map or Neighborhood C-1/CPF-1/R-47, or Neighborhood R-15/CPF-2 as determined by the City Engineer. d. Monumentation. Developer agrees to furnish and deliver to the City, simultaneously with the execution of this Agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of Fifteen Thousand Dollars and no cents ($15,000) to secure the installation of monuments within the Project. It is further agreed that if the monumentation work is not completed within thirty (30) days following completion of the Backbone Improvements described in 8b above, the sums provided by said improvement securities may be used by the City for the completion of the monumentation within said Project in accordance with the applicable provisions of the City of Chula Vista Subdivision Manual, or, at the option of the City, as are approved by the City Council at the time of engaging the work to be performed. Upon certification of completion by the City Engineer and acceptance of said work by the City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required for payment thereof, may be released to Developer or its successors in 8 interest, pursuant to the terms of the improvement security. Developer agrees to pay to the City any difference between the total costs incurred to perform the work, including design and administration of construction (including a reasonable allocation of overhead). It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall the City or the City's officer, sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor, except to the limits established by approved security in accordance with the requirements of the State Subdivision Map Act and the provisions of Title 18 of the Chula Vista Municipal Code. It is further understood and agreed by Developer that any engineering costs (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Street Improvements plans and installation of Street Improvements described above, as required by City and approved by the City Engineer shall be paid by Developer, and that Developer shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. Developer further understands and agrees that City, (as "Indemnitee") or any officer or employee thereof, shall not be liable for any bodily injury, death, or property damage, including thereto hazardous materials and property takings claims occasioned by reason of the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee (which are not the result of Indemnitee's sole negligence or willful misconduct), related to the construction of the Improvements. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense (including, without limitation, reasonable attorney's fees) or loss for bodily injury, death or property damages, including thereto hazardous materials and property takings claims because of or arising out of Developer's construction of the Improvements or the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee, related thereto; provided, however, that Developer shall have no obligation to indemnify, defend, protect or hold Indemnitee harmless from any such losses, claims, demands, causes of action, liability, damages, costs or expenses which arise out of the sole negligence or willful misconduct of the Indemnitee or any officer or employee thereof. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all 9 claims, demands, causes of action, liability, cost and expense (including without limitation, reasonable attorney's fees) made or incurred by such third parties pursuant to or arising out of contracts entered into by third parties with or on behalf of Developer or its successors, assigns or agents concerning construction of the Improvements; provided, however, that Developer shall have no obligation to indemnify, defend or hold Indemnitee harmless from any such losses, claims, demands, damages, causes of action, liability, costs and expenses to the extent that they have arisen due to the sole negligence or willful misconduct of Indemnitee. The improvement securities referred to above shall not cover the provisions of this paragraph. The approval of plans for the Improvements shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for said work and related improvements. The provisions of this paragraph shall become effective upon the execution of this Agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the Improvements. 12. Condition No. 34 (ADA Standards). In satisfaction of Condition No. 34 of the Resolution the Developer agrees that in the event the Federal Government adopts ADA standards for street rights-of-way which are in conflict with the standards and approvals contained herein, all such approvals conflicting with those standards shall be updated to reflect those standards. Unless otherwise required be federal law, City ADA standards may be considered vested, as determined by Federal Regulations, only after construction has commenced. 13. Condition No. 40 (Encroachment Permit). In satisfaction of Condition No. 40 of the Resolution, the Developer shall apply and obtain an encroachment permit prior to the installation of all private facilities within the public right of way. The Developer shall maintain, in perpetuity, membership in an advance notice such as the USA Dig Alert Service and shall cause any private facilities owned by the Developer to be marked out whenever work is performed in the area. 14. Condition No. 56 - (NPDES). In satisfaction of Condition No. 56 of the Resolution, Developer agrees to comply with all the provisions of the National Pollutant Discharge Elimination System (NPDES) and the Clean Water Program. 15. Condition Nos. 84 (Neighborhood Parks). In partial satisfaction of Condition No. 84 of the Resolution, Developer has entered into the Otay Ranch Park Agreement wherein the Developer agrees to construct neighborhood parks (P-1 and P-2 in Village One) in accordance with the terms of said Otay Ranch Park Agreement and consistent with the Parks Master Plan. The 10 Developer also agrees to comply with the City's Parklands and Public Facilities Ordinance and any future modification thereof. The Otay Ranch Park Agreement also provides for reimbursement of park development fees and assignment of fee and/or land credits to the Developer as applicable. The Developer acknowledges that Lot "N" of the final map is Irrevocably Offered for Dedication thereon as Open Space for the express purpose of its future acceptance, and the pond improvements located thereon, by the Open Space Maintenance District known as Community Facility District 97-1 (CFD 97-1). The maintenance responsibility for the pond improvements are incorporated into the overall open space maintenance obligation of CFD 97-1 and that the maximum revenue generated by the existing Maximum Special Tax that can be levied within CFD 97-1 is sufficient to satisfy the cost of pond maintenance. The Developer further acknowledges the following: a. that no additional neighborhood park land credits shall be assigned to the Developer, or its successors in interest due to the fact that Lot "N" was Irrevocably Offered for Dedication. b. the terms of the Otay Ranch Park Agreement currently provide for the cost of the pond improvements to be included in the calculation of park development fee credits to be assigned to the Developer and that no credits shall be granted in addition to those provided by said Agreement. 16. Condition Nos. 85. (Con%munity Parks). In partial satisfaction of Condition No. 85 a and b of the Resolution, Developer entered into the Park Agreement to satisfy the SPA One Community Park obligation, which includes the dedication of park land and payment of per unit community park development fees prior to the approval of each final "B" Map. Therefore, in accordance with said Agreement, the Developer has offered for dedication a 15-acre community park site within the Otay Ranch General Development Plan area known as "Village Two". To satisfy the Developer's obligation to pay community park development fees for each dwelling unit within the project in compliance with the Park Agreement and the City's Parklands and Public Facilities Ordinance, the Developer, or its successors, heirs and assigns, agrees that, prior to the approval of any final "B" Map, the Developer, or its successors, heirs and assigns, shall pay the per unit community park development fee, which shall be determined by the Director of Planning and Building. Developer agrees to pay the PAD Fee obligation in accordance with the provisions of the Otay Ranch Park Agreement, Chula Vista Municipal Code Section 17.10.100 and Resolution No. 16146, as may be amended from time to time. For the areas shown as Neighborhood R-19, Neighborhood R-47 and Neighborhood R-15 in the SPA One Plan, and included within the legal description of the land covered by this Agreement, the Developer shall submit to and C: \A~ree~nt s\Vil]J~mapNo. 2 - 2 .doc 11 obtain the approval of the City Engineer for a parcel map prior to the issuance of a building permit. Developer agrees to pay all applicable fees, including the PAD fee, prior to the approval of said parcel map. Parcel Map shall be in accordance with the City of Chula Vista Municipal Code Chapter 18.20. 17. Condition No. 88b - (Maintenance Agreement). In partial satisfaction of Condition No. 88b of the Resolution the Developer shall: a. Enter into a maintenance agreement prior to the acceptance by the City of the Public Right-of-Way and any improvements constructed within the Public Right-of-Way granted on the final map as Santa Andrea Street and rejected thereon. The agreement shall assign to the Developer and its successors in interest, including the Master Homeowners Association, the responsibility for maintenance activities within Santa Andrea Street that will not be assumed by the City or, specifically, by the Community Facilities District 97-1. The agreement shall also describe the maintenance standards and grant an easement to the Developer and its successors in interest to allow the Developer and its successors in interest to perform its maintenance responsibilities within Santa Andrea Street. b. Prior to acceptance of Public Park P-1 shown as Lot "0" on the final map by the City of Chula Vista, cause the area of Lot "P" on the final map to be annexed to the Master Homeowners Association to be maintained in accordance with the provisions of Declaration of Covenants, Conditions and Restrictions of said Master Homeowners Association for maintenance of Covered Property and Improvements located thereon by said Master Homeowners Association. 18. Condition No. 91 (No Protest of Maintenance District or Assessment District). In satisfaction of Condition No. 91 of the Resolution, 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. 19. Condition No. 92. (Open Space lots). In satisfaction of Condition No. 93 of the Resolution, Developer agrees to provide the City, prior to execution of this Agreement, with irrevocable offer(s) of dedication (IODs), in accordance with Government Code Section 7050, a fee interest, free and clear of 12 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 IODs are attached to this Agreement as Attachment ~C". 20. Condition No. 93. (Public Facilities Development Impact Fee). In partial satisfaction of Condition No. 93 of the Resolution, Developer agrees to fund the revision of the Public Facilities Development Impact Fee ("PFDIF") Program, which shall be prepared by the City, as directed by the City Manager or his designee. The Developer shall receive 100% credits towards future PFDIF fees for funding this update. Ail cost of revising the PFDIF shall be borne by the Developer. In partial satisfaction of Condition No. 93, Developer has deposited $20,000 for commencement of said revision. Developer has requested that the City allow full satisfaction of Condition No. 93 of the Resolution be continued until such time as the City completes and approves the ("PFDIF") Program revisions. In order for the City to allow said continuance of satisfaction of this obligation, Developer agrees to pay the "PFDIF" in effect at the time of building permit issuance. 21. Condition No. 104 (withhold Building Permits and Hold Harmless). In partial satisfaction of Condition No. 104 of the Resolution, the Developer understands and agrees that the performance of Developer's obligations hereunder is required for the health and safety of the residents of its Project. Therefore Developer agrees: a That the City may withhold building permits for any and all buildings within the Project if any one of the following occur: i. Regional development threshold limits set by the East Chula Vista Transportation Phasing Plan have been reached. ii. Traffic volumes, levels of service, public utilities and/or services exceed the adopted City threshold standards in the then effective Growth Management Ordinance. iii. The Developer does not comply with the terms of the Reserve Fund Program. b That the City may withhold building permits for any of the phases of development identified in the PFFP, if the required public facilities, as identified in the PFFP or as amended by the Annual Monitoring Program or otherwise conditioned have not been completed or constructed to satisfaction of the City. c That, on the condition that City shall promptly notify the Developer of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense, the Developer shall defend, indemnify, and hold harmless the City, and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers or employees, to attack, set aside, void or annul any approval by the City, including approvals by its Planning Commission, City Council, or any approval by its agents, officers, or employees with regard to this Project. d That, on the condition that City shall promptly notify the Developer of any claim, action or proceeding, Developer shall defend, indemnify, and hold harmless the City, and its agents, officers and employees, from any claim, action, or proceeding against the City, or its agents, officers or employees, related to erosion, siltation or increased flow of drainage resulting from the Property. City agrees to reasonably cooperate with Developer in the defense of any such action, claim or proceeding. e. In partial satisfaction of Condition No.104(e) of the Resolution, the Developer understands and agrees that cable television companies franchised by the City of Chula Vista may place conduit within the City easements and provide cable television service for lots within the Final Map area, as described on Exhibit A. Developer agrees to comply with all rules, regulations, ordinances and procedures regulating and affecting the operation of cable television within Chula Vista. Developer further acknowledges and agrees that Developer will not in any way impair or interfere with City's use of City's easements as described herein. f To include in the Articles of Incorporation or Charter for the Homeowners' Association (HOA) provisions prohibiting the HOA from dedicating or conveying for public streets, land used for private streets without approval of 100% of all the HOA members. g. 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 the Tentative Map Conditions or any Supplemental Agreement. The City shall provide the Developer of notice of such determination and allow the Developer reasonable time to cure said breach. 22. Condition No. 105 (Congestion Management Program). In satisfaction of Condition No. 105 of the Resolution the Developer shall enter into a supplemental agreement with the City prior to approval of the first "B" Map or the approval of a parcel map for Neighborhood R-39 of the SPA One Plan where the 14 Developer agrees to: a. Participate, on a fair share basis, in any deficiency plan or financial program adopted by SANDAG to comply with the Congestion Management Program (CMP) and b. Agrees to not protest formation of any future regional impact fee program or facilities benefit district to finance the construction of regional facilities described in the Otay Ranch GDP and 0tay Ranch SPA One PFFP. 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 fee, which may be imposed due to these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. 23. Condition Nos. 108 and 109 (School Sites). In partial satisfaction of Condition Nos. 108 and 109 of the Resolution, Developer agrees to: a. Deliver to the 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 (750 students) within SPA One. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. b. deliver to the 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 4,500th residential building permit (1,350 students) within SPA One. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. 24. Condition Nos. 114 (Growth Management Ordinance). In satisfaction of Condition No. 114 of the Resolution, the Developer agrees, upon the request of the City, to the following: a. Fund the preparation of an annual report monitoring the development of Otay Ranch as described in Chapter 9, "Growth Management of the Otay Ranch General Development Plan". The annual report will analyze the supply of, and demand, for public facilities and services governed by the thresholds. b. Prepare a five {5) year development phasing forecast identifying targeted submittal dates for future discretionary applications (SPAs and tentative maps), projected construction C: \~re~ment S \Vil 1AmapNo. 2 2.doc 15 dates, corresponding public facility needs per the adopted threshold standards, and identifying financing options for necessary facilities as described in Chapter 9, "Growth Management" of the Otay Ranch General Development Plan". 25. Condition No. 121. - (Development Phasing Plan). In partial satisfaction of Condition No. 121 of the Resolution, Developer agrees that if phasing is proposed within an individual map or through multiple final maps, the developer shall submit and obtain approval of a development phasing plan by the City Engineer and Director of Planning and Building prior to approval of any final map or parcel map as applicable. 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 and Building. 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 Director of Planning and Building may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. 26. Condition No. 122. (PFFP). In partial satisfaction of Condition No. 122 of the Resolution, Developer agrees to 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 16 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. 27. Condition No. 123. - (Code Requirements). In partial satisfaction of Condition No. 123 of the Resolution, 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. 28. Condition No. 124. - (Undergrounding). In partial satisfaction of Condition No. 124 of the Resolution, Developer agrees to underground all utilities within the subdivision in accordance with Municipal Code requirements. 29. Condition No. 125. - (Payment of Fees). In partial satisfaction of Condition No. 125 of the Resolution, Developer agrees to pay the following fees in accordance with the City Code and Council Policy: a. The Transportation and Public Facilities Development Impact Fees. b. Signal Participation Fees. c. Ail applicable sewer fees, including but not limited to sewer connection fees. d. Interim SR-125 impact fee. e. Telegraph Canyon Sewer Basin DIF. f. Poggi Canyon Sewer Basin DIP as may be adopted by the City in the future. h. Reimbursement District for Telegraph Canyon Road Phase 2 30. Condition No. 126. (Code Requirements). In partial satisfaction of Condition No. 126 of the Resolution, 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 17 78-1 City Engineer. 31. Condition No. 127. (Disclosure of Special Taxes). In partial satisfaction of Condition No. 127 of the Resolution, Developer agrees to ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" pursuant to Municipal Code Section 5.46.020 regarding projected taxes and assessments. Submit disclosure form for approval by the City Engineer prior to Final Map approval. 32. Condition No. 132. (Code Requirements). In partial satisfaction of Condition No. 132 of the Resolution, 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. 33. Condition No. 136 (Guarded Entrances). In satisfaction of Condition No. 136 of the Resolution, Developer agrees that guarded entrances will not have physical barriers and that the entrances will be staffed from dusk until dawn, unless the MHOA or the applicant determines it is economically impractical. 34, Condition No. 144 (MHOA). In satisfaction of Condition No. 144 of the Resolution, Developer agrees that future property owners will be notified during escrow, by a document to be initialed by the owners, and approved by the City Engineer and Director of Planning, of the maintenance responsibilities of the MHOA and their estimated annual cost. 35. Satisfaction of Conditions. City agrees that the execution of this Agreement constitutes satisfaction or partial satisfaction of Developer's obligation of Condition Nos. 1, ~ 3, 4, 5, 8, 9, 10, 11, 14, 22, 23, 24, 34, 40, 56, 84, 85a and b, 88b, 91, 92, 93, 104, 105, 108, 109, 114, 121, 122, 123, 124, 125, 126, 127, 132, 136 and 144 of the Resolution. Developer further understands and agrees that the some of the provisions herein may be required to be performed or accomplished prior to 18 the approval of other final maps for the Project, as may be appropriate. 36. 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 No. 19448 and shall remain in compliance with and implement the terms, conditions and provisions therein. 37. Previous Agreements. The Developer acknowledges that nothing in this Agreement shall supersede, nullify or otherwise negatively impact the terms of the first Village 1 "A" Map Agreement, Map No. 13592 thereof or all prior "B" Map Agreements for Village 1, unless specifically noted herein. This Agreement affirms and reflects the terms, conditions and provisions of the first "A" Map Agreement, all subsequent Final "B" Map Agreements and of the Tentative Map 96-04 conditions applicable specifically to the Final Map for the Property. 38. Recording. This Agreement, or an abstract hereof shall be recorded simultaneously with the recordation of the Final Map. 39. 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. 40. 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. Facsimile transmission shall constitute personal delivery. CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 Attn: Director of Public Works 19 Developer: Otay Project, 350 West Ash Street, Suite 730 San Diego, CA 92101 Attn: Kim John Kilkenny Fax (619) 234-4088 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. Facsimile transmission shall constitute personal delivery. 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; Attachments. Any recitals and Attachments 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. g. Olympic Parkway Agreement. The parties do not intend by this Agreement to modify or amend in any way the Olympic Parkway Agreement. To the extent of any inconsistencies between this Agreement and the Olympic Parkway Agreement with regard to obligations specifically set forth in the Olympic Parkway Agreement, the Olympic Parkway Agreement shall control. [NEXT PAGE IS PAGE ONE OF TWO SIGNATURE PAGES] [PAGE ONE OF TWO SIGNATURE PAGES TO SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR VILLAGE i "A" MAP NO. 2] 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 Mayor Attest: Susan Bigelow City Clerk John M. Kaheny City Attorney [NEXT PAGE IS PAGE TWO OF SIGNATURE PAGES] C: \Agreement s\Vil 1AmapNo. 2 2.doc 22 [PAGE TWO OF TWO SIGNATURE PAGES TO SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR VILLAGE I "A" MAP NO. 2] DEVELOPERS/OWNERS: OTAY PROJECT, L.P., a California limited partnership By: Otay Project, LLC, a California limited liability company, General Partner By: Otay Ranch Development, LLC, a Delaware limited liability company, Authorized Member By: Jeffery L. Rush, married man as his sole and separate property, and Jaime Liwerant, Co-Trustee of the Liwerant Family Trust U/T/D. By: By: (Attach Notary Acknowledgment) List of Attachments Attachment A Legal Description of Property Attachment B Open Space and Park IODs Schedule 1 Conditions of Approval for Chula Vista Tract No. 96-04A ATTACHMENT "A" Legal Description of Property CHULA VISTA TRACT NO. 96-04A OTAY RANCH VILLAGE 1 "A" MAP NO. 2, BEING PARCELS 1, 2, 4, 7, 9 AND PORTIONS OF PARCELS 3, 6, AND 8 OF PARCEL MAP NO. 18349 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAIN DIEGO COI/NTY ON SEPTEMBER 29, 1999, EXCEPTING THEREFROM THAT PORTION OF PARCEL 9 LYING SOUTHERLY OF OLYMPIC PARKWAY, TOGETHER WITH LOT "F" OF OTAY R3tNCH, VILLAGE 1 "A" MAP NO. 1 ACCORDING TO MAP THEREOF NO. 13592, FILED IN THE OFFICE OF SAID COUNTY RECORDER JUNE 24, 1998, ALL IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. ATTACHMENT "B" Irrevocable Offers of Dedication of Open Space and Park Lots Attachment "C" consists of twelve pages of separately recorded instruments, which irrevocably offer Lots "C" through "G" inclusive and Lots "N" and "R" for Open Space and other Public Purposes and Lot "0" for Public Park Purposes. 26 SCHEDULE 1 Phase Seven (Purple) Tentative Subdivision Map (C.V.T. 96-04A) CONDITIONS OF APPROVAL Unless otherwise specified or required by law: (a) the conditions and Code requirements set forth below shall be completed prior to thc related final map as determined by the Director of Planning and Building, and the City Engineer, (b) unless otherwise specified, "dedicate" means grant the appropriate easement, rather than fee title. Where an easement is required the applicant shall be required to provide subordination of any prior lien holders in order to ensure that the City has a first priority interest in such land unless otherwise excused by the City. Where fee title is granted or dedicated to the City, said fee title shall be free and clear of all encumbrances, unless otherwise excused by the City. Should conflicting wording or standards occur between these conditions of approval, any conflict shall be resolved by the City Manager or designee. GENERAL/PRELIMINARY l. Comply with all requirements and guidelines of the Parks, Recreation Open Space and Trails Plan, Public Facilities Financing Plan, Ranch Wide Affordable Housing Plan, Spa One Affordable Housing Plan, and thc Non-Renewable Energy Conservation Plan, as amended from time to time, unless specifically modified by the appropriate department head, with the approval of the City Manager. These plans may bc subject to minor modifications by the appropriate department head, with the approval of the City Manager, however, any material modifications shall be subject to approval by the City Council. 2. All of the terms, covenants and conditions contained herein shall be binding upon and inure to the benefit of thc heirs, successors, assigns and representatives of the Developer as to any or all of thc Property. For purposes of this document the term "Developer" shall also mean "Applicant". 3. If any of the terms, covenants or conditions contained herein 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 revoke or modify all approvals herein granted including issuance of building permits, 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 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. 27 4. Applicant shall 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 any or all entitlements and approvals issued by the City in connection with the Project. 5. The applicant shall comply with all applicable SPA conditions of approval. 6. Any and all agreements that the applicant is required to enter in hereunder, shall be in a form approved by the City Attorney. 7. The terms, conditions and time limits associated with this tentative map shall be consistent with the Development Agreement approved by Ordinance No. 2679 by the City Council on July 16, 1996 ("Development Agreement") and as amended on October 22, 1996. 8. The applicant shall comply with the terms of the Conveyance Agreement, as may be amended from time to time, adopted by Resolution No. 18416 by the City Council on October 22, 1996 ("Conveyance Agreement"). ENVIRONMENTAL 9. Prior to approval of each final "B" Map, the applicant shall implement all applicable mitigation measures identified in EIR 95-01, subsequent EIR 97-03, the CEQA Findings of Fact for this Project (on file in the City Clerk's Office as Document No. CO96-056 and No. ) and the Mitigation Monitoring and Reporting Program (on file in the City Clerk's Office as Document No. CO96-057 and No. ). 10. Prior to the approval of each final "B" Map, the applicant shall comply with all applicable requirements of the Phase 2 Resource Management Plan (RMP) as approved by the City Council on June 4, 1996 and as may be amended from time to time by the City. 11. Prior to the approval of each final "B" Map, the applicant shall comply with the Otay Ranch Resource Preserve Conveyance Plan. 12. The Applicant shall comply with any applicable requirements of the California Department of Fish and Game, the U.S. Department of Fish and Wildlife and the U.S. Army Corps of Engineers. SPECIAL CONDITIONS OF APPROVAL 13. The following conditions of approval are based upon the project having multiple final maps for the entire subdivision which shall be referenced hereinafter as "final 'B' Maps". Unless 28 otherwise specified, all conditions and code requirements listed below shall be fully completed to the City's satisfaction prior to approval of the first Final "B" Map. 14. Prior to approval of the first final map within each Village the tentative map, the developer shall submit and obtain the 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 corresponding to the units and phasing or combination of units and phasing thereof. Said "A" map shall also show open space lot dedications, the backbone street dedications and utility easements required to serve the "super block" lots created by this "A" Map. All "super block" lots created by this "A" Map or previous parcel map shall have access to a dedicated public street. Said "A" map shall not be considered the first map as indicated in other conditions of approval unless said map contains single or multiple family lots or a subdivision of the multiple family lots shown on the tentative map. A lot line adjustment, if utilized in accordance with City standards and procedures, shall not be considered the first "A" Map. The "A" Map may contain single family residential units. 15. The subsequent development of a multiple family lot which does not require the filing of a "B" Map shall meet, prior to issuance of a building permit for that lot, all the applicable conditions of approval of the tentative map, as determined by the City Engineer. Construction of non-backbone streets adjacent to multiple family lots will not need to be bonded for with the final "A" Map which created such lot. However, such improvements will be required to be constructed under the Municipal Code provisions requiring construction of street improvements under the design review and building permit issuance processes. 16. In the event of a filing of a final map which requires oversizing (in accordance with the restrictions of state law and City ordinances) of the improvements necessary to serve other properties, said final map shall be required to install all necessary improvements to serve the project plus the necessary oversizing of facilities required to serve such other properties. DESIGN 17. A street connecting Montera Street and Cameros Street shall be installed as part of the improvements for Neighborhoods R-18 and R-48. The connection shall be located near lots 54 and 55 in R-18 and lots 26 and 27 in R-48. The connection shall be designed as a Residential Street - Condition "A". The northerly ends of Montera Street and Cameros Street may utilize the "Modified Cul-de-Sac" design depicted on the Tentative Map if they are less than 150 feet in length. The exact location of the connecting street shall be determined by the City Engineer and the Director of Planning and Building. 18. Any proposed monumentation/signage shall be consistent with the Village Design Plan and shall be reviewed and approved by the Director of Planning and Building prior to approval of the appropriate final map. 29 19. In addition to the requirements outlined in the City of Chula Vista Landscape Manual, privately maintained slopes in excess of 25 feet in height shall be landscaped and irrigated to soften their appearance as follows: one 5-gallon or larger size tree per each 150 square feet of slope area, one 1-gallon or larger size shrub per each 100 square feet of slope area, and appropriate groundcover. Trees and shrubs shall be planted in staggered clusters to soften and vary the slope plane. Landscape and irrigation plans for private slopes shall be reviewed and approved by the Director of Planning and Building prior to approval of the appropriate final map. 20. A comprehensive wall plan indicating color, materials, height and location shall be reviewed and approved by the Director of Planning and Building prior to approval of any final "B" Map. Materials and color used shall be compatible and all walls located in comer side-yards or rear yards facing public or private streets or pedestrian connections shall be constructed of a decorative masonry and/or wrought iron material. A revised acoustical analysis indicating if view fencing, such as a combination of masonry and wrought iron, is allowable at the ends of cul-de-sacs backing up to, Olympic Parkway, and Paseo Ranchero, shall be prepared prior to submittal of the wall plan indicated above. If such fencing is allowable per the final acoustical analysis it shall be provided at the ends of the following streets:~Weaverville Street, Greenfield Street, Hayfork Place, Cameros Street, Santa Rita East, Grayson Street, Delano Street, Belmont Street, and Atherton Street. View fencing shall be provided at the ends of all other open cul-de-sacs where a sound wall is not required. Any combination free standing/retaining walls shall not exceed 8.5 feet in height. The applicant shall submit a detail and/or cross section of the maximum/minimum conditions for all "combination walls" which include retaining and free standing walls. Said detail shall be reviewed and approved by the Director of Planning and Building prior to the approval of the first final map. The maximum height of all retaining walls shall be 2.5 feet in height when combined with freestanding walls which are six feet in height. A 2-3 foot separation shall be provided between free standing and retaining walls where the combined height would otherwise exceed 8.5 feet. 21. Lots backing or siding onto pedestrian paseos, or parks shall be provided with view fencing, such as three feet of wrought iron on top of a three foot masonry wall, subject to approval by the Fire Marshal and the Director of Planning and Building STREETS, RIGHT-OF-WAY AND PUBLIC IMPROVEMENTS 22. Install public facilities in accordance with the Otay Ranch SPA One, Public Facilities Finance Plan as may be amended from time to time or as required by the City Engineer to meet threshold standards adopted by the City of Chula Vista. The City Engineer and Director of Planning and Building may, at their discretion, modify the sequence of improvement 3o construction should conditions change to warrant such a revision. The Developer shall construct the public improvements and provide security satisfactory to the City Engineer as set forth in the first final "B" map Supplemental Subdivision Improvement Agreement for Village One and attachment Exhibit "E" thereto, approved by City Council Resolution No. 19211 on October 6, 1998. 23. Dedicate for public use all the public streets shown on the tentative map within the subdivision boundary. Prior to the approval of the applicable "B" Map, the applicant shall enter into an agreement to guarantee the construction of all street improvements as required by the PFFP for each particular phase. 24. Secure in accordance with Section 18.16.220 of the Municipal Code, as necessary, the construction and/or construct full street improvements for all on-site and off-site streets deemed necessary to provide service to the subject subdivision. Said improvements shall include, but not be limited to, asphalt concrete pavement, base, concrete curb, gutter and sidewalk, sewer, reclaimed water and water utilities, drainage facilities, street lights, signs, landscaping, irrigation, fencing and fire hydrants. Street cross sections shall conform to the cross sections shown on the Tentative Map, unless otherwise conditioned or approved herein. All other design criteria shall comply with the current Chula Vista Design Standards, Chula Vista Street Design Standards, and the Chula Vista Subdivision Manual unless otherwise conditioned or approved herein. 25. As part of the improvement plans associated with the final "B" Map which triggers the installation of the related street improvements, install a fully activated traffic signal including interconnect wiring at the following intersections: a. East Palomar Street and Paseo Ranchero b. Olympic Parkway and Paseo Ranchero Install underground improvements, standards and luminaries with construction of street improvements, and install mast arms, signal heads and associated equipment as determined by the City Engineer. 26~ Submit to and obtain approval by the City Engineer of striping plans for all collector or higher classification streets simultaneously with the associated improvement plans. 27. Design all vertical and horizontal curves and intersection sight distances to conform to the Caltrans Highway Design Manual. All streets which intersect other streets at or near horizontal or vertical curves must meet intersection design sight distance requirements in accordance with City standards. Sight visibility easements shall be granted as necessary to comply with the requirements in the Caltrans Highway Design Manual. 33_ 28. All cul-de-sacs and knuckles not conforming to City standards shall have a design waiver submitted by the Engineer-of-Work to the City Engineer stating the deviations from City standards and explaining that, in their professional opinion, no safety considerations will be compromised. The waiver will be subject to approval or disapproval at the discretion of the City Engineer. 29. Two (2) points of vehicular access shall be provided to each Neighborhoods/Sites as follows: a. Neighborhood R- 19 b. Neighborhood R-47 c. CPF-1/C-1 d. Neighborhood R-15 e. CPF-2 The Developer shall construct and complete the required access improvements prior to occupancy of any building within the above Neighborhood/Sites. The exact locations of the two (2) points of vehicular access for each Neighborhood/Site shall be approved by the Director of Planning and Building prior to Site Plan approval. The Director of Planning and Building may waive the requirement for one or more of the points of access to any Neighborhood/Site upon site plan approval in his/her sole discretion. 30. Access to East Palomar Street from the tentative map shall be relinquished on the final "A" map. 31. The private pasco located in Neighborhood R-15/CPF-2 shall be constructed concurrent with the development of Neighborhood R-15 and completed prior to occupancy of the first dwelling unit in R-15. The exact location, alignment and landscaping, of the Pasco in Neighborhood R-15/CPF-2 shall be approved by the Director of Planning and Building at the time of Site Plan approval for R-15/CPF-2. The applicant may request reconsideration of the requirement for the pasco which the Director of Planning and Building may determine at his/her sole discretion. 32. The General Utility Easement at the end of Santa Andrea leading to the emergency access road shown on the Tentative Map at the easterly end of Fieldbrook Street shall be included within the boundaries of Neighborhood R-16 and shall be granted on the final "B" map for R-16. The easement shall include pedestrian access improvements, construction of which shall be secured prior to the approval of the first final "B" map for R-16 and shall be approved by the Director of Planning and Building. Security shall be provided in the form of a bond or as otherwise approved by the City Engineer. 33. Install all street trees in accordance with Section 18.28.10 of the Chula Vista Municipal Code. All street trees shall be planted in parkways which have been selected from the revised list of appropriate tree species described in the Village Design Plan, and shall be approved by the Director of Planning and Building and Director of Public Works. The applicant shall provide root control methods per the requirements of the Director of Planning and Building, and provide a deep watering irrigation system for the trees. An irrigation system shall be provided from each individual lot to the adjacent parkway. A street tree improvement plan shall be submitted prior to or concurrent with the second submittal of street improvement plans for each subdivision. The street tree improvement plans, including final selection of street trees, for the street parkways shall be approved by the Director of Planning and Building and the City Engineer. 34. Construct sidewalks and construct pedestrian ramps on all walkways to meet or exceed the "Americans with Disabilities Act" standards and as approved by the City Engineer. In the event the Federal Government adopts ADA standards for street rights-of-way which are in conflict with the standards and approvals contained herein, all such approvals conflicting with those standards shall be updated to reflect those standards. Unless otherwise required by federal law, City ADA standards may be considered vested, as determined by Federal regulations, only after construction has commenced. 35. Alley openings shall be per San Diego Regional Standard Drawing No. G-17, or approved modifications thereto. Additional requirements may be imposed by the City on alleys to address specific geometric and other design issues that may arise during the review of the site plan and/or improvement plans for Neighborhood R-16. These requirements shall include but are not limited to: a minimum turning radius for alleys, comer chamfers, alley signage, lighting, and unit addressing. 36. The applicant shall construct a 20-foot wide, all-weather concrete (6 inch minimum depth) emergency access road (secondary Village One Core access) from Olympic Parkway to the easterly end of Fieldbrook Street, upon the request of the City Engineer. The emergency access road shall be secured by a bond or as otherwise approved by the City Engineer prior to the approval of the "A" Map. The cross-section of the emergency access road shall be as shown on the Tentative Map. Upon the request of the City Engineer, the applicant shall submit a full set of road improvement plans; including but not limited to: horizontal alignment, vertical profiles, intersection details, drainage appurtenances and access control, all as approved by the City Engineer and the Fire Marshal. Emergency entrances shall be provided with mechanical gates and an "Opticom" system, or some other automated system with backup and/or fail safe features acceptable to the Police and Fire Chief. 33 37. Provide (1) twenty feet setback on driveways from property line to garage and (2) sectional roll-up type garage doors at all properties fronting on streets where cul-de-sacs are 150 feet or less in length except as provided for in the Planned Community District Regulations or approved by the City Engineer and the Director of Planning and Building. 38. Residential Street Condition A as denoted on the cover page of the tentative map is the preferred section and shall be implemented on all residential streets, including the connecting street in Neighborhood R-15 as defined in SPA One. Unless otherwise approved by the City Engineer and Director of Planning and Building. However, Mount Maclure Drive, between Fieldbrook Street and Greenfield Street, and the easterly side of Santa Rita, between Fieldbrook Street and Cameros Street shall be constructed with five foot sidewalks in lieu of the four foot sidewalks indicated on the Tentative Map cross-sections. 39. Requested General Waivers 1, 2 and 4, as indicated on the cover sheet of the tentative map, are hereby approved. Specific Waivers 1 and 2 are approved subject to the condition that one-way circulation be provided at the north-south streets adjacent to park P-12, unless otherwise approved by the City Engineer. 40. Not install privately owned water, reclaimed water, or other utilities crossing any public street. This shall include the prohibition of the installation of sleeves for future construction of privately owned facilities. The City Engineer may waive this requirement if the following is accomplished: a. The developer enters into an agreement with the City where the developer agrees to the following: (1) Apply for an encroachment permit for installation of the private facilities within the public right-of-way. (2) Maintain membership in an advance notice such as the USA Dig Alert Service. (3) Mark out any private facilities owned by the developer whenever work is performed in the area. The terms of this agreement shall be binding upon the successors and assigns of the developer. b. Shutoff devices as determined by the City Engineer are provided at those locations where private facilities traverse public streets. 41. Prior to the approval of any improvement plan within the tentative map, submit and obtain preliminary approval for proposed street names from the Director of Planning and 34 Building and the City Engineer. No two intersections shall have the same name. Street name suffixes shall comply with City standards. 42. The applicant shall construct emergency access roads to East Palomar Street at the end of Weaverville Street and Fieldbrook Street upon the request of the City Engineer. The access roads shall be secured by a bond or as otherwise approved by the City Engineer and City Attorney in an amount approved by the City Engineer, prior to the approval of the final map for Neighborhood R-48 and R-18 respectively. The emergency access roads shall be contained within general access easements granted to the City of Chula Vista. Emergency access entrances shall be provided with mechanical gates and an "Opticom" system, or some other automated system with backup and/or fail safe features acceptable to the Police and Fire Chief. 43. The City of San Diego Water Line (Otay Lakes Pipeline No. 2) within the Tentative Map shall be relocated or a revised Tentative Map for Neighborhood R-17 shall be approved prior to the approval of the first Final Map within Neighborhood R-17. 44. Street light locations shall be approved by the City Engineer. 45. Prior to the approval of the first final "B" map, the applicant shall process and obtain the approval of a Parcel Map, or similar plat or instnmaent, whereupon the right-of-way for Olympic Parkway from Brandywine Avenue to SR-125 is offered for dedication to the City of Chula Vista. The alignment of Olympic Parkway shall substantially conform to the final Olympic Parkway Feasibility Report prepared by Kimley-Hom and Associates, Inc, If the City and Applicant enter into the Agreement for Financing and Construction of Olympic Parkway and Related Roadway_Improvements which requires the dedication of Olympic Parkway as described above, the Developer shall conform to that agreement. 46. The typical cross section of Olympic Parkway including the right-of-way, regional trail, and meandering sidewalks shall conform to the final Olympic Parkway Master Landscape Plan by Estrada Land Planning, Inc. The regional trail shall be located on the north side of Olympic Parkway, within the 20 foot landscape easement. Where the Poggi Canyon Channel crosses to the southerly side of Olympic Parkway, the developer shall provide an additional 12 foot wide flat area behind the Olympic Parkway right-of-way. GRADING AND DRAINAGE 47. Storm drain systems that collect water from private property shall be designated private on grading and drainage and/or improvement plans to the point of connection with a public system or to the point at which storm water that is collected from public street right-of-way, public park or open space areas is first introduced into the system. Downstream from that point, the storm drain system shall be public. An encroachment permit shall be processed and approved by the City for private storm drains within the public right-of-way or within C.F.D. maintained Open Space lots. 35 48. Submit with grading and drainage and/or improvement plans as applicable hydrologic and hydraulic studies and calculations, including dry lane calculations for all public streets. Calculations shall also be provided to demonstrate the adequacy of downstream drainage structures, pipes and inlets. 49. The developer shall submit notarized letters of permission to grade for all off-site grading. 50. Storm drain design shall conform to the requirements of the Subdivision Manual and the Grading Ordinance as may be amended from time to time. 51. Design the storm drains and other drainage facilities to include Best Management Practices to minimize non-point source pollution, satisfactory to the City Engineer. 52. Provide a setback, as determined by the City Engineer, between the property lines of the proposed lots and the top or toe of any slope to be constructed where the proposed grading adjoins undeveloped property or property owned by others. The City Engineer shall not approve the creation of any lot that does not meet the required setback. 53. Submit a list of proposed lots with the appropriate grading plan indicating whether the structure will be located on fill, cut or a transition between the two situations unless otherwise approved by the City Engineer. 54. Grant on the appropriate final "B" Map a 15 feet minimum drainage and access easement for storm drain lines located between residential units unless otherwise directed by the City Engineer. All other easements shall meet City standards for required width. 55. Prior to approval of the first final "B" Map or grading permit for land draining into Poggi Canyon or grading permit which requires construction of the Poggi Canyon Channel, whichever is earlier, the developer shall: a. Guarantee the construction of the applicable drainage facility} unless otherwise approved by the City Engineer including a runoff detention/desilting basin and naturalized channel in Poggi Canyon; The City Engineer may approve that these facilities are constructed at a later time if the developer provides private temporary runoff detention basins or other facilities, approved by the City Engineer, which would reduce the quantity of runoff from the development to an amount equal to less than the present 100 year flow. Said temporary facilities shall comply with all the provisions of the National Pollutant Discharge Elimination System (NPDES) and the Clean Water Program. Prior to issuance of any grading permit which approves any temporary 36 facility, the developer shall enter imo an agreement with the City to guarantee the adequate operation and maintenance (O & M) of said facility. The developer shall provide security satisfactory to the City to guarantee the O & M activities, in the event said facilities are not maintained to City standards as determined by the City Engineer. The developer shall be responsible for obtaining all permits and agreements with the environmental regulatory agencies required to perform this work. b. Prepare a maintenance program including a schedule, estimate of cost, operations manual and a financing mechanism for the maintenance of the applicable facilities. Said program shall be subject to approval of the City Engineer, the Director of Planning and Building, and the applicable environmental agencies. c. Enter into an agreement with the City of Chula Vista and the applicable environmental agencies (Fish and Game, Fish and Wildlife) wherein the parties agree to implement the maintenance program. d. Enter into an agreement with the City where the developer agrees to the following: (1) Provide for the maintenance of the proposed naturalized channel and detention basin in Poggi Canyon until such time as maintenance of such facilities is assumed by the City or an open space district. (2) Provide for the removal of siltation in the Poggi Canyon Channel (including detention basins) until all upstream grading within the development is completed and erosion protection planting is adequately established as determined by the City Engineer and Director of Planning and Building. (3) Provide for the removal of any siltation in the Poggi Canyon Channel (including detention basins) attributable to the development for a minimum period of five years after maintenance of the facility is accepted by the City or an open space district. 56. Comply with all the provisions of the National Pollutant Discharge Elimination System (NPDES) and the Clean Water Program. 57. Provide runoff detention basins or any other facility approved by the City Engineer to reduce the quantity of runoff from the development to an amount equal to or less than the present 100-year frequency runoff. 37 58. Storm drain clean outs shall not be located on slopes or in inaccessible areas for maintenance equipment. Public storm drains shall be installed as close to perpendicular to the slope contours as possible but in no case greater than 15 degrees from perpendicular to the contours. 59. Brow ditches that flow over a slope greater than 10 feet in height and are steeper than a 3:1 shall not be allowed. Drainage shall be collected in an inlet and carried to the bottom of the slope in an underground storm drain. 60. Ensure that brow channels and ditches emanating from and/or running through City Open Space are not routed through private property and vice versa. 61. Provide a graded access (12 feet minimum width) and access easements as required by the City Engineer to all public storm drain inlet structures, including but not limited to the following: a. The 8 ft. by 8 ft. box culvert located at the southeast comer of Paseo Ranchero and Olympic Parkway. b. Both ends of the box culvert crossing Olympic Parkway in the vicinity of the Emergency Access Road. c. To a secondary drainage channel along the southerly side of Olympic Parkway easterly of the point where the Poggi Canyon Channel crosses to the southerly side of Olympic Parkway, if such a channel is indicated on the grading plans for that area._ The access road and easement may be deleted with the development of Village Two by approval of the City Engineer. Improved access as determined by the City Engineer shall be provided to public drainage structures located in the rear yard of any residential lot 62. Provide additional graded maintenance access roads along both sides of the proposed onsite and offsite portions of the Poggi Canyon Channel. The width of said roads shall be 12 feet unless otherwise approved by the City Engineer. The final dimensions and location of the access roads shall be as determined by the City Engineer. The maintenance access roads shall be designed to accommodate the space required for the 20 foot wide tree planting nodes as depicted on the Olympic Parkway Landscape Master Plan by Estrada Land Planning, Inc. 63. Provide a protective fencing system around (1) the proposed detention basins at Poggi Canyon, and (2) inlets and outlets of storm drain structures, as directed by the City Engineer. The final design and types of construction materials shall be subject to approval of the Director of Planning and Building and the City Engineer. 38 64. Designate all drainage facilities draining private property to the point of connection with public facilities as private. 65. Provide a 6 inch thick concrete access road to the bottom of the proposed detention basins. This access shall have a minimum width of 12 feet, a maximum slope of 8%, and a heavy broom finish on the ramp as directed by the City Engineer. 66. Obtain a Letter of Map Revision (LOMR) from the Federal Emergency Management Agency revising the current National Flood Insurance Program maps of the downstream end of Poggi Canyon Channel west of Brandywine Avenue to reflect the effect of the proposed drainage improvements. The LOMR shall be completed prior to acceptance by the City of the proposed detention facility. 67. Obtain, prior to approval of the first final "B" Map, the approval of the Director of Public Works of any amendment necessary to make the Master Drainage plan consistent with the approved Tentative Map. 68. Prepare and obtain approval by the City Engineer and Director of Planning and Building an erosion and sedimentation control plan and landscape/irrigation plans as part of the grading plans. 69. Indicate on all affected grading plans that all walls which are to be maintained by open space districts shall be constructed entirely within open space lots dedicated to the City. 70. Prior to issuance of any grading permit for any land that is contained within the Tentative Map or within the Poggi Canyon Basin, the applicant shall: a. secure the approval of an amendment to the Otay Ranch Phase Two Resource Management Plan by the City Council. b. secure the required permits from the Army Corps of Engineers (ACOE) and the California Department of Fish and Game (CDFG). Grading plans that do not require ACOE or CDFG permits may be approved by the City Engineer. No grading adjacent to the Poggi Canyon shall occur without prior consultation with the City Mitigation Monitor, the City Engineering Inspector, the ACOE, and the CDFG. SEWER 71. All sewer access points (manholes) shall be located at the centerline of streets or cul-de- sacs unless otherwise approved by the City Engineer and Director of Public Works. 72~ Provide an improved access road With a minimum width of 12 feet to all sanitary sewer manholes. The roadway shall be designed for an H-20 wheel load or other loading as approved by the City Engineer. 73. Grant on the appropriate final "B" Map a 20 feet minimum sewer and access easement for sewerlines located between residential units unless otherwise directed by the City Engineer. All other easements shall meet City standards for required width. 74. No diversion from the natural boundaries of the Poggi Canyon Sewer Basin will be allowed, unless approved by the City Engineer. 75. Prior to the approval of the first final "B' map or site plan approval, whichever comes first, for any portion of the tentative map which was within the Poggi Canyon Basin prior to any grading, the applicant shall submit a study analyzing the capacity of sewer facilities within and downstream from the Poggi Canyon Basin. The study shall be approved by the City Engineer and shall consider all approved land development projects and anticipated future land uses that would utilize the downstream facilities. The sewer study shall update the "Overview of Sewer Service for SPA One at the Otay Ranch Project" (SPA One Sewer Report) prepared by Wilson Engineering dated June 4, 1996. PARKS/OPEN SPACE/WILDLIFE PRESERVATION 76. The SPA One project shall satisfy the requirements of the City's Park Land Dedication Ordinance (PLDO) (Chapter 17.10). The ordinance establishes a requirement that the project provide three (3) acres of local parks and related improvements per 1,000 residents. Local parks are comprised o£ community parks, neighborhood parks and pedestrian parks (to the extent that pedestrian parks receive partial park credit as defined below). Two thirds (2 acres/I,000 residents) of local park requirement shall be satisfied through the provision of turn-key neighborhood and pedestrian parks within SPA One. The remaining requirement (1 acre/I,000 residents) shall be satisfied through the payment of Park Acquisition and Dedication (PAD) £ees, dedication o£ land, or a combination thereof. 77. All local parks shall be consistent with the SPA One PFFP, as may be amended from time to time, and shall be installed by the Applicant. A construction schedule, requiring all parks to be completed in a timely manner, shall be approved by the Director of Planning and Building. 78. All local parks shall be designed and constructed consistent with the provisions of the Chula Vista Landscape Manual and related Plamring and Building Department specifications and policies. 4o 79. The applicant shall enter into a Chula Vista standard three party agreement with the City of Chula Vista and design consultant(s), for the design of all aspects of the neighborhood and community parks in accordance with the Master Plan whereby the Planning and Building Director selects the design consultant(s), to be funded by the applicant. The cost for the consultant(s) shall be established and said amount deposited into an account prior to any work being initiated by the consultant. The agreement shall include, but not be limited to, master planning, design development phase, construction document phase and construction supervision phase for the park sites. The construction documents shall reflect the then current requirements of the City's Code/Landscape Manual requirements. 80. The Applicant shall receive surplus park credit to the extent the combined park credit for neighborhood parks, pedestrian parks, and the community park exceeds the 3 acres per 1,000 residents standard. This surplus park credit may be utilized by the Applicant to satisfy local park requirements in future SPAs. 81. The Applicant and the City shall mutually agree on a PAD fee reimbursement schedule in coordination with the adopted construction schedule. Milestones will be established for partial reimbursement during the construction process. 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. 82. Grant in fee all designated public park lands at such time as is necessary to implement the requirements of the PLDO and the PFFP. 83. Pedestrian Parks (also known as mini-parks): Pedestrian parks less than five acres, as identified in the SPA One Plan, shall be maintained by a funding entity other than the City's General Fund. Pedestrian parks shall receive a minimum of 25% and a maximum of 50% park credit, as determined by the Director of Planning and Building pursuant to the City wide small park credit criteria which shall be approved by the City Council. Parks located within guarded areas shall not receive park credit. 84. Neighborhood Parks: a. In addition to those PAD fees required by Condition No. 76, the Applicant shall pay PAD fees based on a formula of 2 acres per 1,000 residents for the first 500 dwelling units within SPA One. In the City's sole discretion, PAD fees may be required for units in excess of the first 500 dwelling units within SPA One. b. Prior to the approval of the first final map which creates residential lots ("B" Map), the applicant shall enter into a supplemental agreement where the applicant agrees to construct the first neighborhood park in SPA One, in a location 43_ determined by the Director of Planning and Building, no later than issuance of the building permit for the 500th dwelling trait within SPA One. The agreement shall also provide the following: (1) Developer shall commence construction of the first neighborhood park in SPA One, identified as Park P-l, at the location set forth in SPA One Plan and as shown on the Village One "A" Map No. 13592 thereof as lot "F", no later than issuance of the building permit for the 500th dwelling unit for the Project. The level of amenities required in said construction of the first neighborhood park shall be determined by the Director of Planning and Building in conjunction with the park master planning effort required by the City of Chula Vista Landscape Manual. Notwithstanding anything herein to the contrary, the developer shall complete construction of the entire P-1 neighborhood park as identified in SPA One Plan within eight (8) months after commencing construction of said park. For purposes of this paragraph, "complete construction" shall mean that the construction of the park has been completed and accepted by the City as being in compliance with the Park Master Plan, but prior to the City's required mandatory maintenance period. (2) Developer agrees to commence construction of the second neighborhood park in SPA One, identified as P-2, at the location set forth in the SPA One Plan and as shown on said Village One "A" Map as lot "R". Such construction shall commence upon the earlier of.' a) issuance of the building permit for the 2033th dwelling unit for SPA One, or b) if the Project is determined by the City to be in deficit in constructed neighborhood parks based upon 2 acres/I,000 residents. Such construction shall be completed within eight (8) months after commencing construction of said park. For purposes of this paragraph, "complete construction" shall mean that the construction of the park has been completed and accepted by the City as being in compliance with the Park Master Plan, but prior to the City's required mandatory maintenance period. This is not intended to supersede any of the City's maintenance guarantee requirements. The Developer and City agree to negotiate in good faith a park agreement concerning Developer's neighborhood and community park obligations for Villages 1 and 5 of SPA One. (3) At no time following completion of construction of the first phase of the first neighborhood park shall there be a deficit in "constructed neighborhood park" based upon 2 acres/l,000 residents. Applicant agrees that the City may withhold the issuance of building permits should said deficit occur. For purposes of this condition, the term "constructed 42 neighborhood park" shall mean that construction of the park has been completed and accepted by the Director of Planning and Building as being in compliance with the Park Master Plan, but prior to the mandatory 9-12 month maintenance period. This condition is not intended to supersede any of the City's maintenance guarantee requirements. (4) The Applicant shall receive reimbursement of PAD fees, proportionate to what has been constructed, should they deliver a tm-key park which has been constructed in accordance with the Parks Master Plan subject to approval by the Director of Planning and Building. c. The applicant shall grant to the City, at the "A" Map stage, an irrevocable offer of dedication for all public neighborhood parks shown on the Tentative Map. 85. Community Parks: a. Prior to the approval of each final "B" Map the Applicant shall comply with the PLDO 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 constructed by the applicant and accepted by the Director of Planning and Building. Said turn-key facility is subject to the reimbursement mechanism set forth below. b. The first Otay Ranch Community Park, to satisfy SPA One demand, shall be located in Village 2 as identified in the GDP. c. Notwithstanding that the community park requirement (1 acre/I,000 residents) shall be satisfied through the payment of PAD fees, the Applicant shall commence construction of the first phase of the Community Park prior to issuance of the building permit for the 2,650th dwelling unit within SPA One. The first phase of construction shall include, but not be limited to, improvements such as a graded site with utilities provided to the property line and an all weather access road acceptable to the Fire Department. d. The Applicant shall commence construction of the second phase of the Community Park prior to issuance of the building permit for the 3,000th dwelling unit within SPA One. Second phase improvements shall include recreational amenities as identified in the Park Master Plan. e. The Community Park shall be ready for acceptance by the Director of Planning and Building for maintenance prior to issuance of the building permit for the 3,900th dwelling unit within SPA One. f. If the Director of Planning and Building determines that it is not feasible for the Applicant to commence construction of the first phase improvements of the 43 community park prior to issuance of the building permit for the 2,650th unit within SPA One, then the Director of Planning and Building shall have the option to utilize the PAD fees for said improvements, or to construct another park facility, east of the 1-805 Freeway within an acceptable service radius of SPA One, as set forth in the GDP. g. The Applicant shall provide a maintenance period of 9-12 months in accordance with the City of Chula Vista Planning and Building Department policy. h. The Applicant shall receive reimbursement of PAD fees, proportionate to what has been constructed, excluding the cost of construction of the all weather access road, for the community park should they deliver a tom-key facility to the City in accordance with the Community Park Master Plan, subject to the approval of the Director of Planning and Building. 86. Trails/Open Space: The applicant shall construct trails as follows: a. The Regional Trail shall be located on the north side of Poggi Canyon (Olympic Parkway) for the entire length of Olympic Parkway in Village One, and shall be designed to incorporate the Olympic Parkway Landscape Master Plan by Estrada Land Planning, Inc., as approved by the the City and as amended from time to time including the "tree planting nodes" as specified in the Olympic Parkway Landscape Master Plan. Specific locations shall be subject to the approval of the Director of Planning and Building. The Regional Trail shall meander away from the curb as much as possible avoiding the "tree planting nodes" If retaining walls are necessary, they should be kept to a minimum and/or if a grading solution can be found, retaining walls will not be used to gain additional space for the street corridor. The retaining walls are to be located and detailed on the Grading Plans for Olympic Parkway and/or the Poggi Canyon Drainage Channel, and approved by the Director of Planning and Building. Slopes gradients may be increased to the maximum permitted in the grading ordinance in limited locations to accomodate the "tree planting nodes" and maintenance access ways. Landform grading policies shall be observed. If a combination of low retaining walls and modified landform grading cannot accomodate "tree planting nodes" and maintenance access areas, the top of slope shall be adjusted as necessary. Prior to the installation of the regional trail, install a fence along those portions of the proposed maintenance access roads of the Poggi Canyon Channel, which are proposed to be incorporated into the Regional Trail System. The fence shall be erected only at those locations where its installation will not interfere with the normal channel maintenance. The specific locations where the fence will be allowed and the fence details shall be as determined by the City Engineer and Director of Planning and Building. b. All trails shall be constructed concurrent with the approved Phase Seven rough grading, and connect to adjoining existing and/or proposed trails in neighboring development projects, as determined by the Director of Planning and Building. c. The maximum gradient for non-ADA compliant connector trails shall be 10%. Steeper grades of up to 12% for short runs of 50 feet may be permitted subject to the approval by the Director of Planning and Building. d. The graded section upon which the connecting trails are constructed shall be 10 feet in width. Six feet shall be provided for the trail bed, with a 2 foot graded shoulder on either side. e. Applicant shall install appropriate signage indicating location of trail connections, handicap access, and bikeway locations to the Regional Trail, and shall be approved by the Director of Planning and Building prior to the approval of the first final "B" map for Phase Seven (Purple Phase). Signage shall be installed upon the request of the Director of Planning and Building. f. Prior to the installation of the regional trail, install a fence along those portions of the proposed maintenance access roads of the Poggi Canyon Channel, which are proposed to be incorporated into the Regional Trail System. The fence shall be erected only at those locations where its installation will not interfere with the normal channel maintenance. The specific locations where the fence will be allowed and the fence details shall be as determined by the City Engineer and Director of Planning and Building. 87. Commnnity Gardens: a. Conununity Gardens shall be consistent with the guidelines, in the SPA One Parks, Recreation, Open Space and Trails Master Plan, including creation of the Community Garden Committee and their responsibilities. b. Water lines shall be stubbed from the nearest open space water meter to the site(s) in order to facilitate development of the Community Gardens. c. Community Garden sites shall be consistent with those identified on the tentative map. d. Maintenance of Community Gardens shall be funded by an Open Space Maintenance District, Homeowner's Association or other funding mechanism approved by the Director of Planning and Building and the City Engineer. e. Community Gardens shall not receive park credit. OPEN SPACE/ASSESSMENTS 88. Prior to the approval of the first final Map, the developer shall: a. Submit and obtain approval of an updated Open Space Maintenance Responsibilities Map from the Director of Planning and Building. b. Submit evidence acceptable to the City Engineer and the Director of Planning and Building of the formation of a Master Homeowner's Association (MHOA), or another financial mechanism acceptable to the City Manager, which includes all the properties within the approved tentative map. The MHOA shall be responsible for the maintenance of all improvements not specifically maintained by the Community Facilities District 97-1 (CFD 97-1). The MHOA shall be structured to allow annexation of future tentative map areas in the event the City Engineer and Director of Planning and Building require such annexation of future tentative map areas. The MHOA formation documents shall be approved by the City Attorney. 89. Grade a level, clear area at least three feet wide (face of wall to top of slope), along the length of any wall abutting an open space district lot, as measured from face-of-wall to beginning of slope, said area as approved by the City Engineer and the Director of Planning and Building. 90. Ensure that all buyers of lots adjoining open space lots containing walls maintained by the open space district sign a statement, when purchasing their homes, stipulating that they are aware that the walls are on City property and that they shall not modify or supplement the wall or encroach onto City property. These restrictions shall also be incorporated in the CC&R's for each lot. 91. Agree to not protest formation or inclusion in a maintenance district or zone for the maintenance of landscaped medians and scenic corridors along streets within and adjacent to the subject subdivision. 92. Grant in fee to the City on the first final map for the project, all open space lots shown on the tentative map and execute and record a deed for each of the lots to be maintained by the City through the open space district. 93. Fund the revision of the Public Facilities Development Impact Fee (PFDIF) Program, which shall be prepared by the City, as directed by the City Manager or his designee, and approved by the City Council prior to approval of the first final "B" Map. The developer shall receive 100% credits towards future PFDIF fees for funding this update. Provide a deposit of $20,000 to begin this process. All cost of revising the PFDIF shall be borne by the developer. 94. Prior to issuance of any grading permit which includes Landscaping and Irrigation (L&I) improvements to be installed in an open space lot to be maintained by the open space district, the developer shall place a cash deposit with the City which will guarantee the maintenance of the L&I improvements, prior to City acceptance of said improvements, in the event the improvements are not maintained to City standards as determined by the City Engineer and the Director of Planning and Building. The amount of the deposit shall be equivalent to the estimated cost of maintaining the open space lots to City standards for a period of six months as determined by the City Engineer. Any unused portion of said deposit could be incorporated into the open space district's reserve at such time as the maintenance of the open space lot is assumed by the open space district. WATER 95. Provide to the City a letter from Otay Municipal Water District indicating that the assessments/bonded indebtedness for all parcels dedicated or granted in fee to the City have been paid or that no assessments exist on the parcel(s). 96. Present verification to the City Engineer in the form of a letter from Otay Water District that the subdivision will be provided adequate water service and long term water storage facilities. EASEMENTS 97. Grant to the City a 10' wide easement for general utility purposes along public street frontage of all open space lots offered for dedication to the City unless otherwise approved by the City Engineer. Ensure to the satisfaction of the Director of Planning and Building that sufficient room is available for street tree planting when locating utilities within this easement. 98. Indicate on the appropriate "B" Map a reservation of easements to the future Homeowners' Association for private storm drain and within open space lots as directed by the City Engineer. Obtain, prior to approval of any final "B" Map, all off-site right-of-way necessary for the installation of the required improvements for that subdivision thereto. The developer shall also provide easements for all on-site and off-site public drainage facilities, sewers, maintenance roads, and any other public facilities necessary to provide service to the subject subdivision. 99. Notify the City at least 60 days prior to consideration of the final map by City if off-site right-of-way cannot be obtained as required by the Conditions of approval. (Only off-site right- of-way or easements affected by Section 66462.5 of the Subdivision Map Act are covered by this condition.) After said notification, the developer shall: a. Pay the full cost of acquiring off-site right-of-way or easements required by the Conditions of Approval of the tentative map. b. Deposit with the City the estimated cost of acquiring said right-of-way or easements. Said estimate to be approved by the City Engineer. c. Have all easements and/or right-of-way documents and plats prepared and appraisals complete which are necessary to commence condemnation proceedings as determined by the City Attomey. d. Request that the City use its powers of Eminent Domain to acquire right-of-way, easements or licenses needed for off-site improvements or work related to the final map. The developers shall pay all costs, both direct and indirect incurred in said acquisition. The requirements of a, b, and c above shall be accomplished prior to the approval of the appropriate Final Map. 100. Grant easements to subsequent owners pursuant to Section 18.20.150 of the City Code on any final map that proposes private utilities or drainage facilities crossing property lines as directed by the City Engineer. 101. Grant to City on the appropriate final "B" Map two foot access easements along the rear and side property line of lots adjoining walls to be maintained by the open space district. The locations of these easements shall be as required by the Director of Planning and Building and the City Engineer to provide adequate access for maintenance of said walls. 102. Storm drain easements shall be private unless the storm drain systems therein are public. 103. Where a private storm drain easement will parallel a public sewer easement, the easements shall be delineated separately on the final map and on the grading and improvement plans. If any portion of the easements will overlap one another, the City shall have a superior right to the common portion of the easements. AGREEMENTS/FINANCIAL 104. Enter into a supplemental agreement with the City, prior to approval of each final "B" Map, where the developer agrees to the following: a. That the City may withhold building permits for the subject subdivision if any one of the following occur: (1) Regional development threshold limits set by the adopted East Chula Vista Transportation Phasing Plan have been reached. (2) Traffic volumes, levels of service, public utilities and/or services exceed the threshold standards in the then effective Growth Management Ordinance. (3) The applicant does not comply with the terms of the Reserve Fund Program. b. That the City may withhold building permits for any of the phases of development identified in the Public Facilities Financing Plan (PFFP) for Otay Ranch SPA One if the required facilities, as identified in the PFFP or as amended by the Annual Monitoring Program, have not been completed. c. Defend, indemnify, and hold harmless the City and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers or employees to attack, set aside, void or annul any approval by the City, including approval by its Planning Commission, City Council or any approval by its agents, officers, or employees with regard to this subdivision provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. d. Hold the City harmless from any liability for erosion, siltation or increase flow of drainage resulting from this project. e. Ensure that all franchised cable television companies ("Cable Company") are permitted equal opportunity to place conduit and provide cable television service to each lot on public streets within the subdivision. Restrict access to the conduit to only those franchised cable television companies who are, and remain in compliance with, all of the terms and conditions of the franchise and which are in further compliance with all other rules, regulations, ordinances and procedures regulating and affecting the operation of cable television corapanies as same may have been, or may from time to time be issued by the City of Chula Vista. f. Include in the Articles of Incorporation or Charter for the Homeowners' Association (HOA) provisions prohibiting the HOA from dedicating or conveying for public streets, land used for private streets without approval of 100% of all the HOA members. g. 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 the Tentative Map Conditions or any Supplemental Agreement. The City shall provide the Developer of notice of such determination and allow the Developer reasonable time to cure said breach. 105. Enter into an supplemental agreement with the City prior to approval of the first final "B" Map, where the developer agrees to the following: a. Participate, on a fair share basis, in any deficiency plan or financial program adopted by SANDAG to comply with the Congestion Management Program (CMP). b. To not protest the formation of any future regional impact fee program or facilities benefit district to finance the construction of correctional facilities. SCHOOLS 106. The Applicant shall deliver to the School District a graded high school site including utilities provided to the site and an all weather access road acceptable to the District prior to issuance of the 1,400th building permit. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. 107. The Applicant shall deliver to the 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 (150 students) within SPA One. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School district as based on District facility needs. 108. The Applicant shall deliver to the 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 (750 students) within SPA One. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. 109. The applicant shall deliver to the School District, a graded elementary school site including utilities provided to the site and an all weather access road acceptable to the District, 50 -PP-.G/ located west of Paseo Ranchero, prior to issuance of the 4,500th residential building permit (1,350 students) within SPA One. The all weather access road shall also be acceptable to the Fire Department. This schedule is subject to modification by the School District as based on District facility needs. MISCELLANEOUS 110. Include in the Declaration of Covenants, Conditions and Restrictions (CC&R's) provisions assuring maintenance of all streets, driveways, drainage and sewage systems which are private. The City of Chula Vista shall be named as party to said Declaration authorizing the City to enforce the terms and conditions of the Declaration in the same manner as any owner within the subdivision. The CC&R's shall also include language which states that any proposal by the HOA for dedication or conveyance for public purposes of land used for private streets will require prior written approval of 100% of all the Homeowners' Association members. 111. Submit copies of Final Maps, grading and improvement plans in a digital format such as (DXF) graplfic file prior to approval of each Final Map. Provide computer aided Design (CAD) copy of all Final Maps based on accurate coordinate geometry calculations and submit the information in accordance with the City Guidelines for Digital Submittal in duplicate on media acceptable to the City Engineer prior to the approval of each Final Map. 112. Tie the boundary of the subdivision to the California System -Zone VI (1983). 113. The Applicant shall secure approval of a Master Precise Plan for the Village One Core Areas, prior to or concurrent with submitting any development proposals for commercial, multi- family and Community Purpose Facility areas within the Village One Core. 114. Pursuant to the provisions of the Growth Management Ordinance (Section 19.09 of the CVMC) and the Otay Ranch General Development Plan (GDP), the Applicant shall complete the following: (1) Fund the preparation of an annual report monitoring the development of the community of Otay Ranch. The annual monitoring report will analyze the supply of, and demand for, public facilities and services governed by the threshold standards. An annual review shall commence following the first fiscal year in which residential occupancy occurs and is to be completed during the second quarter of the following fiscal year. The annual report shall adhere to those guidelines noted on page 353, Section D of the GDP/SRP; and (2) Prepare a five year development phasing forecast identifying targeted submittal dates for future discretionary applications (SPAs and tentative maps), projected construction dates, corresponding public facility needs per the adopted threshold standards, and identifying financing options for necessary facilities. 115. The Developer shall be responsible for retaining a project manager to coordinate the processing of discretionary permit applications originating fi'om the private sector and submitted to the City of Chula Vista. The project manager shall establish a formal submittal package required of each developer to ensure a high standard of design and to ensure consistency with standards and policies identified in the adopted SPA Plan. The project manager shall have a well rounded educational background and experience, including but not limited to land use planning and architecture. 116. The applicant shall submit copies of any proposed CC&R's for review and approval by the Director of Planning and Building and the City Engineer prior to approval of each final "B" Map. 117. The CPF-2 site located within Village One, shall be considered a floating designation and shall be located in Neighborhood R-15. A schematic project design for this site will be submitted, reviewed and approved by the Director of Planning and Building concurrently with the Precise Plan for this area. 118. If developer desires to do certain work on the property after approval of the tentative map but prior to recordation of the applicable final "B" Map, they may do so by obtaining the required approvals and permits from the City. The permits can be approved or denied by the City in accordance with the City's Municipal Code, regulations and policies. Said permits do not constitute a guarantee that subsequent submittals (i.e., final "B" Map and improvement plans) will be approved. All work performed by the developer prior to approval of the applicable "B" Map shall be at developer's own risk. Prior to permit issuance, the developer shall acknowledge in writing that subsequent submittals (i.e., final "B" Map and improvement plans) may require extensive changes, at developers cost, to work done under such early permit. Prior to the issuance of a permit, the developer shall post a bond or other security acceptable to the City in an amount determined by the City to guarantee the rehabilitation of the land if the applicable final "B" Map does not record. 119. Slopes in excess of 2 feet above the adjacent curb elevation of residential streets shall be landscaped in accordance with the City of Chula Vista landscape manual and approved by the Director of Planning and Building. The slope areas shall be within open space lots that shall be maintained by a Homeowners Association. This slope landscaping/open space lot requirement shall apply to the front and side yard areas of individual residential units, including the return portion of comer lots as well. The open space lot boundary shall extend to a logical break in maintenance responsibility such as a driveway, a utility pad or other physical demarcation. PHASING 120. If the applicant modifies the SPA One approved phasing plan, the applicant shall submit to the City a revised phasing plan for review and approval prior to approval of the first final "B" Map. The PFFP shall be revised where necessary to reflect the revised phasing plan. 52 121. 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 and Building 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 and Building. 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 Director of Planning and Building may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. 122. The Public Facilities Finance Plan or revisions thereto shall be adhered to for the SPA and tentative map with improvements installed in accordance with said plan or as required to meet threshold standards adopted by the City of Chula Vista. 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). 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. Compliance with the City of Chula Vista 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 such 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. The City Engineer may modify the sequence of improvement construction should conditions change to warrant such a revision. Concurrent with the approval of the first final map approved after the PFFP for the EastLake III GDP Area, the Applicant shall update, at the Applicant's expense and subject to a Reimbursement Agreement, the SPA One 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, which shall become a condition for all subsequent SPA One entitlements, including tentative and final maps. CODE REQUIREMENTS 123. Comply with all applicable sections of the Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. 124. Underground all utilities within the subdivision in accordance with Municipal Code requirements. 125. Pay the following fees in accordance with the City Code and Council Policy: 53 a. The Transportation and Public Facilities Development Impact Fees. b. Signal Participation Fees. c. All applicable sewer fees, including but not limited to sewer connection fees. d. Interim SR-125 impact fee. e. Telegraph Canyon Sewer Basin DIF. f. Poggi Canyon Sewer Basin DIF as may be adopted by the City in the furore. g. Telegraph Canyon Basin Drainage DIF. h. Reimbursement District for Telegraph Canyon Road Phase 2 Undergrounding. i. Otay Ranch Reserve Fund fee. j. Pedestrian Bridges Development Impact Fee Pay the amount of said fees in effect at the time of issuance of building permits. 126. 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. 127. Ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" pursuant to Municipal Code Section 5.46.020 regarding projected taxes and assessments. Submit disclosure form for approval by the City Engineer prior to Final Map approval. 128. Comply with Council Policy No. 570-03 if pump stations for sewer purposes are proposed. 129. Comply with Council Policy No. 522-02 regarding maintenance of natural channels within open spaces. 130. The applicant shall comply with all aspects of the City of Chula Vista Landscape Manual. 131. All proposed development shall be consistent with the Otay Ranch SPA One Planned Community District Regulations. 132. The Applicant shall 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). The applicant acknowledges 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. 133. Upon submittal of building plans for small lot single family (5,000 square feet or less as defined in the City of Chula Vista Design Manual) residential development, plans shall clearly indicate that 750 square feet of private open space will be provided within the subdivision. 134. Development of the subdivision shall comply with all applicable regulations established by the United States Environmental Protection Agency (USEPA) as set forth in the National Pollutant Discharge Elimination System (N.P.D.E.S.) permit requirements for urban runoff and storm water discharge and any regulations adopted by the City of Chula Vista pursuant to the N.P.D.E.S. regulations or requirements. Further, the applicant shall file notice of intent with the State Water Resources Control Board to obtain coverage under the N.P.D.E.S. General Permit for Storm Water Discharges Associated with Construction Activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities. The SWPPP shall include both construction and post construction pollution prevention and pollution control measures and shall identify funding mechanisms for post construction control measures. GUARDED AREAS 135. The following locations as proposed by the applicant are authorized for guarded entrances: Santa Alicia Drive and Santa Rita in Village One, Phase Seven. 136. Guarded entrances shall not have physical barriers. Guarded entrances shall be staffed from dusk until dawn, unless the MHOA or the applicant determines it is economically impractical. Physical barriers shall be prohibited at the entrances to guarded areas unless specifically approved by City Council. 137. All streets within guarded areas shall be designated as private. Design of said streets shall meet the City standards for public streets unless otherwise approved by the City Engineer. Private street cross sections shall conform to those shown on the Tentative Map. 138. All private streets within Final "B" Maps shall be included in separate lots. The applicant shall provide a certificate granting to the City a public utility easement over the entire private street lots on the appropriate Final "B" Map. All private streets shall be owned as an equal and undivided interest by each subsequent property within the subdivision. 139. Guarded entrances shall: a. Require approval by the City Engineer and the Director of Planning and Building. b. Provide sufficient room on the private roadway to queue without interrupting traffic on public streets. c. Provide a mm around. The size and location of said turn around shall be approved by the City Engineer. d. Provide a clearly delineated border between public and private streets through the use of distinctive pavements. e. Provide a dedicated parking space for the gate attendant to be shown on appropriate grading and/or improvement plans. f. Be equipped with a video camera to record entering and exiting vehicles. 140. The CC&R's shall prohibit "speed bumps" on private streets. The CC&R's shall also include language which states that any proposal by the HOA to allow "speed bumps" in the future shall require prior written approval of 100% of all the Homeowner's Association members. 141. Establish Homeowners Associations (HOA) to provide for the maintenance of private storm drains, private open space lots, slope areas, landscape and irrigation and walls within each subdivision prior to the approval of the associated Final "B" Maps and include such requirements in the CC&R's. 142. Prior to approval of any "B" Map proposing private streets, the applicant shall initiate and complete the process enabling the City to enforce the California Vehicle Code on said private streets. 143. The MHOA shall be responsible for the maintenance and operation of all facilities within the common areas and streets behind the guarded entrance and such responsibility shall be included in the CC&R's. The facilities to be maintained include, but are not limited to, pavements, sidewalks, street trees, street lights including energy, street sweeping, private drainage facilities and landscaping of private common areas. The only facilities to be maintained by the City are mainline sewers and public concrete drainage facilities (i.e., pipes and catch basins). 144. Future property owners shall be notified during escrow, by a document to be initialed by the owners, and approved by the City Engineer and Director of Planning and Building, of the maintenance responsibilities of the MHOA and their estimated annual cost. 145. The applicant shall comply with all previous Agreements as they pertain to the tentative map, including but not limited to: Maintenance Agreements, Financing Agreements, and the Supplemental Subdivision Improvement Agreement for previously approved Village One "A" Map (Map thereof No. 13592, Resolution No. 19044) and subsequent "B" Map Agreements thereto. SCHEDULE "1" COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/9/00 ITEM TITLE: Resolution Approving a Reimbursement Agreement with ACI Sunbow, LLC associated with the formation of Community Facilities District No. 2000-1 (Sunbow II) and authorizing the Mayor to execute said agreement. Resolution Waiving the consultant selection process as impractical, approving agreements with Bruce W. Hull & Associates to provide Appraisal Services and the Meyers Group to prepare a Market Absorption Study associated with Conmaunity Facilities District No. 2000-1 (Sunbow II) and authorizing the City Manager to execute said agreements. SUBMITTED BY: Director of Public Works~ (~ REVIEWED BY: City Manager & (4/Sths Vote: Yes_No X.~) In compliance with Council Policy, ACI Sunbow, LLC submitted an Application for establishing Community Facilities District No. 2000-1 ("CFD 2000-1") to fund the construction of certain improvements serving some of the Sunbow l/properties in the amount of approximately $ 19.5 million. Council approved the Report regarding the application and initiated the proceedings on May 2. Tonight, Council will consider approving a Reimbursement Agreement with the developer and two agreements to retain a portion of the financing team for CFD 2000-1. The companion Reimbursement Agreement requires the developer to advance funds to the City for the payment of ail initial consulting and administration costs and expenses related to the formation of CFD 2000-1. RECOMMENDATION: It is recommended that Council: 1) Adopt the resolution approving the reimbursement agreement with the Sunbow 1/, LLC; and 2) Adopt the resolution waiving the consultant selection process as impractical and approving agreements with the two consultants. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Tonight's agenda includes retaining two of six consultants that am needed for a financing team to form CFD 2000-1. Staff anticipates retaining an additional four consultants to complete the financing team. Those agreements will be brought forward for Council consideration next week. The schedule for the district anticipates a bond issuance in August, thereby making a standard consultant selection process impractical. Additionally, these consultants are part of team currently working on CFD 99-1 (Otay Ranch SPA 1 Villages 1 and 5 and West) and as such, has extensive knowledge of the development in the Eastern Territories including Sunbow 1I. Staff has a high level Page 2, Item __ Meeting Date 5/9/00 of confidence in these consultants, the consultants have demonstrated a high level of expertise and for these reasons staff recommends that Council waive the consultant selection process for these two consultants. Reimbursement Agreement The developer, Sunbow II, LLC is required to advance funds for all costs associated with retaining the £mancing team including City staffcosts. Should the CFD be successfully formed, the fees will be funded via the Improvement Fund of the CFD and the developer will be eligible for reimbursement for the funds advanced. The developer has deposited $167,000 with the City to initiate the proceedings for the CFD. Total costs are shown below in Table A. TABLE A Consultant Developer CFD 2000-1 Total Advance Proceeds CFD 2000-1 Bond Counsel $10,000 $ 27,500 $ 37,500 Underwriter 0 175,000 175,000 Financial Advisor 17,000 28,000 45,000 PM and Special Tax Consultant 70,000 20,000 90,000 Appraiser 30,000 0 30,000 Market Absorption Specialist 13,500 0 13,500 City Administration 26,500 13,500 40,000 TOTAL $167,000 [ $264,000I $431,000 The reimbursement agreement covers the anticipated costs of a complete financing team. However, only two of the consultant agreements are under consideration tonight. Appraiser The appraiser works in concert with the Financial Advisor providing current data for analysis. The appraisal is a key component in the viability of CFD financing. Familiarity with the community, fee structures, etc. is essential for the protection of the future bond purchasers. Bruce W. Hull and Associates is the appraiser for CFD 99-1 and as part of the existing financing team for Otay Ranch, adjacent to Sunbow II, has extensive knowledge of property values in this area. Staff recommends waiving the consultant selection process and entering into an agreement for appraisal services for CFD 2000-1. Page 3, Item __ Meeting Date 5/9/00 Market Absorption Consultant The market absorption consultant also works in concert with the Financial Advisor providing detailed data and analysis pertinent to the sale of bonds. The Meyers Group has extensive knowledge of this area o£ Chula Vista and of the San Diego region enabling the firm to analyze the project at a depth beyond the macro-level market data. The firm has demonstrated a good understanding of the dynamics of a regional market place and understands the potential of this project within that market. Staff recommends this consultant be selected as the market absorption consultant for CFD 2000-1. Staff recommends that the City's consultant selection process be waived in the interest of providing a team with extensive knowledge and experience in their respective fields and within this region of . the County and that these two consultants be retained as part of the financing team. Doing so will allow the project to proceed rapidly meeting the demands of the development community. Additionally, the consultant selection process is lengthy and consumes time that would be better used in analyzing the issues of the proposed CFD resulting in the City's interests being materially better served. The fees proposed by the consultants are comparable to those fees charged for existing financing districts. There will be no direct impact on the General Fund or the City. All costs will be funded by the developer and/or property owners and apportioned consistent with the relative benefits received from the improvements being financed. The agreements with the appraiser (Hull) and the market absorption consultant (Meyers Group) have been reviewed by the City Attorney as to form. These two consultants have presented agreements for Council approval. Procedure for formation of CFD 2000-1 Following are the key actions that Council will take during the proceedings for CFD 2000-1: 1. Approve four additional consultant agreements and approve the Resolution of Intention (ROI). 2. Resolution of Intention to establish the CFD on May 23, 2000. 3. Public Hearing, voter's election, and levy of the special taxes on June 20, 2000. 4. Bond Sale during August 2000. Description of the proposed CFD 2000-01 Exhibit 1 presents the boundaries of the proposed CFD which includes parcels located within Sunbow II. Certain parcels (Phase 1) within Sunbow II are not proposed for inclusion in this district Page 4, Item __ Meeting Date 5/9/00 because these parcels are fully developed including all the related infrastructure. At build out, the district would contain a total of 595 Single Family Residences and 584 Multifamily Residences. The developer is proposing CFD financing of the following improvements: · Telegraph Canyon Road · Medical Center Road/Brandywine · East Palomar Street - Phases IA, IB, lC & IIA · Off-site Poggi Sewer · Olympic Parkway West of Brandywine · Paseo Ladera · Medical Center Court · Public Facilities DIF The construction cost of these improvements is estimated at $19.5 million (including Public Facilities DIF of $2.8 million), of which only $ 8 million would be financed by CFD 2000-01. Other costs associated with the CFD are estimated at $2 million, for a total levy of $10 million. FISCAL IMPACT: The developer will pay all costs and has deposited money to fund initial consultant and City staff costs in accordance with the proposed Reimbursement Agreement. Such monies are eligible for reimbursement upon a successful sale of bonds. The City will receive the benefit of the full cost recovery for City staff (estimated at $40,000). Exhibits: 1. Benefit Area H:\HOME\ENGINEER~AGENDA\SBCFD-2.DOC 5/4/00 1:51:42 PM RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT WITH ACI SUNBOW, LLC ASSOCIATED WITH THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II) AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, ACI Sunbow, LLC (the "Applicant") has made application with the City of Chula Vista (the "City") to request that the City initiate proceedings under the provisions of the "Mello-Roos Community Facilities Act of 1982," as amended (Government Code Section 53311 and following), to form a community facilities district (the "Community Facilities District") to finance the acquisition and/or construction of certain public improvements reqUired as a precondition to the development of properties owned and/or to be developed by the Applicant or Applicant's successors within certain portions of that area of the City commonly known as Villages 5 through 10 of Sunbo~v II; and WHEREAS, the Applicant has agreed to advance funds to the City for the payment of certain initial consulting and administration costs and expenses related to the proceedings to consider the formation of the Community Facilities District and to subsequently authorize, issue and sell bonds for the Community Facilities District; and WHEREAS, such advances shall be subject to reimbursement or credit upon the successful sale of bonds for the Community Facilities District and the r~ceipt by the City of the proceeds of such bonds pursuant to such terms as the Applicant and the City shall agree; and WHEREAS, the form of a Reimbursement Agreement to memorialize the terms and conditions of such advances and reimbursements has been presented to this City Council for its consideration. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The form of Reimbursement Agreement, herewith submitted, is approved substantially in the form submitted. The Mayor is hereby authorized to execute the final form of such agreement on behalf of the City. The Mayor, subject to the review of the City Attorney and Bond Counsel, is authorized to approve changes in such agreement in substantially the form presented with such minor modifications as may be required or approved by the City Attorney. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John/Kaheny .. Director of Public Works City Attorney H :\home\attorney\reso\cfd 00-1 reimbursment agr 5.1.00 COMMUNITY FACILITIES DISTRICT REIMBURSEMENT AGREEMENT THIS AGREEMENT is made and entered into this __ day of ,2000, by and between the CITY OF CHULA VISTA, a charter city ("City"), and ACI SUNBOW LLC, a California limited liability company ("Applicant"). RECITALS A. The Applicant has made application with the City to request that the City initiate proceedings under the provisions of the "Mello-Roos Community Facilities Act of 1982," as mended (Government Code Section 53311 and following), to form a community facilities district (the "Community Facilities District") to finance the acquisition and/or construction of certain public improvements. The construction of such public improvements is required as a precondition to the development of properties owned and/or to be developed by the Applicant within that area of the City commonly known as Villages 5 through 10 of Sunbow II. B. Applicant agrees to advance funds to the City for the payment of all initial consulting and administration costs and expenses related to the proceedings to consider the formation of the Community Facilities District and to subsequently authorize, issue and sell bonds for the Community Facilities District (the "Proceedings"). Such monies shall be subject to reimbursement or credit pursuant to the provisions of this Agreement upon the successful sale of bonds for the Community Facilities District and the receipt by the City of the proceeds of such bonds. C. The parties hereto wish to enter into an Agreement to memorialize the terms and conditions pursuant to which Applicant shall advance monies and the monies so advanced may, subject to certain conditions contained herein, be reimbursed or credited against future special tax obligations. AGREEMENT The parties hereto, for mutual consideration, agree as follows: SECTION 1. Advances. A. Applicant shall advance monies to the City in such mounts and at such times as specified below to pay all costs and expenses incurred by the City in undertaking the Proceedings (except those costs and expenses which are contingent upon the issuance of bonds for the Community Facilities District and payable solely from the proceeds of such bonds), including without limitation, the following: 1. Special Tax Consultant services; 2. Bond counsel services; 3. Financial advisory services; 5.1.00 4. Appraisal and market absorption services; and 5. City staff and City Attorney time. All such costs and expenses are collectively referred to as the "Formation and Issuance Costs." B. Advances shall be made to the City pursuant to the following schedule: 1. Applicant shall advance the amount of $167,000, receipt of winch is hereby acknowledged by the City. 2. If monies in addition to the initial advance are necessary to pay for the Formation and Issuance Costs, the City shall as necessary and from time to time make written demand upon Applicant and Applicant shall immediately thereafter, within five (5) working days, deposit said monies with the City to pay for the balance of the Formation and Issuance Costs. If such additional monies are not timely received, all Proceedings shall be suspended until such monies are received. SECTION 2. Records. The City agrees to keep records consistent with its regular accounting practices of the amount of monies advanced and the expenditure of such monies. Additionally, the City shall enter into and maintain contracts with all consultants which shall specify the scope of services and compensation to be paid to all such consultants. Such records and contracts shall be available for review by the Applicant during normal business hours upon reasonable notice to the City. SECTION 3. Reimbursement. If the CoInmunity Facilities District is formed, Applicant may elect among the following options for the reimbursement of monies advanced pursuant to this Agreement: A. All monies advanced shall be reimbursed in cash solely from bond proceeds; B. All monies advanced shall be applied as a credit upon the special taxes to be levied against properties then owned by the Applicant; or C. A combination of the above. If the Proceedings to form the Community Facilities District are not completed and are abandoned for any reason at any time prior to the successful sale of bonds or the Community Facilities District is unable for any reason to issue or sell the bonds, there will be no obligation on the part of the City or the Community Facilities District to reimburse Applicant for any monies previously advanced pursuant to this Agreement; provided, however, the City does agree to return to Applicant any monies previously advanced which remain on deposit with the City and which the City determines are in excess of the amount necessary to pay for any outstanding Formation and Issuance Costs previously incurred by the City. SECTION 4. Ownership of Docnments. All plans, specifications, reports, appraisals and other documentation as prepared as a part of the Proceedings shall become the property of the City, regardless as to whether the Community Facilities District is actually formed. 2 !1I 5.1.00 SECTION 5. No Obligation to Form Community Facilities District. Applicant acknowledges that the decision of the City Council to form the Community Facilities District is an exercise of the legislative authority of the City Council and that the City may not enter into a contract to obligate the City Council to exercise its legislative discretion in a particular manner. This Agreement does not, therefore, in any way create a contractual, legal or equitable obligation of or commitment by the City to approve the formation of the Community Facilities District. The City expressly reserves the right to abandon the Proceedings for any reason at any time prior to the completion thereof. Should Applicant desire to abandon the Proceedings, Applicant shall provide written notification of such desire to the City and request the City to immediately terminate all consulting agreements and use all efforts to minimize any and all Formation and Issuance Costs. SECTION 6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. SECTION 7. Arbitration. Any controversy arising out of this Agreement or its breach shall be settled by arbitration if, prior to the commencement of any legal proceeding arising out of this Agreement or its breach, either party demands by written notice that such controversy be arbitrated. After such demand, and within ten (10) days from such demand, the parties shall attempt to designate a mutually acceptable individual to arbitrate the controversy. If within the ten (10) day period the parties are unable to designate an individual, the controversy shall be arbitrated under the rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator chosen by the parties or used pursuant to the rules of the American Arbitration Association may be entered in any court having jurisdiction and shall be fully binding on the parties. SECTION 8. Authority to Execute Agreement. The City and the Applicant represent that the individuals signing this Agreement have full right and authority to bind their respective parties to this Agreement. SECTION 9 Best Efforts. The parties promise to use their best efforts to satisfy all conditions to this Agreement and to take all further steps and execute all further documents reasonably necessary to put this Agreement into effect. SECTION 10. Successor and Assigns. This Agreement shall be binding on and inure to the benefit of the respective parties and their respective heirs, legal representatives, successors and assigns. Applicant may not assign its rights or obligations hereunder except upon written notice to City within ten (10) days of the date of such assignment indicating the name and address of the assignee. Upon such notice and the assumption by the assignee in writing delivered to the City of the rights, duties and obligations of the Applicant arising under or from this Agreement, Applicant shall be released for all future duties or obligations arising under or from this Agreement. SECTION 11. Singular and Plural; Gender. Whenever used herein, the singular number shall include the plural, the plural number shall include the singular, and the masculine feminine or neuter gender shall include the Others Whenever the context of the Agreement so indicates. 5.1.00 SECTION 12. Entire Agreement. This Agreemem contains the entire Agreement between the parties hereto with respect to the subject matter hereof. This Agreement may not be altered, modified or amended except by an instrument in writing executed by all of the parties. SECTION 13. Governing Law. This Agreement has been executed in and shall be governed by the laws of the State of California. SECTION 14. Construction. This Agreement shall be construed as a whole and in accordance with its fair meaning. Captions and organizations are for convenience and shall not be used in construing meaning. SECTION 15. Severability. If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable the remainder of the provision thereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. SECTION 16.Notices. All notices and demands shall be given in writing by personal delivery or first- class mail, postage prepaid. Notices shall be addressed as appears below for the respective party; provided that, if any party gives notice of a change of name of address, notices to the giver of that notice shall thereafter be given as demanded in that notice. Notices shall be deemed received seventy-two (72) hours after deposit in the United States mail. CITY: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 Attention: City Manager APPLICANT: ACI SUNBOW LLC C/o Ayres Land Company, Inc. 750 B Street, Suite 2370 ~ San Diego, CA 92101 Attention: Bill Hamlin SECTION 17. Time of the Essence. Time is of the essence in the performance of the parties respective obligations herein contained. SECTION 18.Waiver. The waiver by one party of the performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered a waiver by him of any other covenant, condition or promise. The waiver by either or both parties of the time for performing any act shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time. The exercise of any remedy provided in this Agreement shall not be a waiver of any consistent remedy provided by law, and any provision of this Agreement for any remedy shall not exclude other consistent remedies unless they are expressly excluded. 5.1.00 SECTION 19.Amendment. No provision of this Agreement may be modified, waived, amended or added to except by a writing signed by the party against which the enforcement of such modification, waiver, amendment or addition is or may be sought. SECTION 20. Hold Harmless. Applicant shall defend, indemnify, protect and hold harmless the City, its elected officials and appointed officers, employees and agents, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising directly or indirectly out of the waiver by the City Council of the City's procedures for the selection of any of the consultants identified in Section 1. and retained by the City to assist in undertaking the Proceedings. Applicant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Applicant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents or employees. Applicant's indemnification of City shall not be limited by any prior or subsequent declaration by the consultant. [Remainder of this page intentionally left blank.] 5.1.00 Signature Page to Community Facilities District Reimbursement Agreement between the City of Chula Vista and ACI Sunbow LLC IN WITNESS WHEREOF, City and Applicant have executed this Agreemem thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms. CITY OF CHULA VISTA By: Mayor Attest: City Clerk Approved as to Form: City Attorney City of Chula Vista ACI SUNBOW LLC, a California limited liability company, By: Its: By: Its: H:\SHARED~ENGINEER~ReLm Agreement 5-1 clean.doc 6 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL, APPROVING THE AGREEMENTS WITH BRUCEW. HULL & ASSOCIATES TO PROVIDE APPRAISAL SERVICES AND THE MEYERS GROUP TO PREPARE A MARKET ABSORPTION STUDY ASSOCIATED WITH COMMUNITY FACILITIES DISTRICT NO. 2000-1 AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENTS WHEREAS, ACI Sunbow, LLC (the "Applicant") has made application with the City of Chula Vista (the "City") to request that the City initiate proceedings under the provisions of the "Mello-Roos Community Facilities Act of 1982," as amended (Government Code Section 53311 and following), to form a community facilities district (the "Community Facilities District") to finance the acquisition and/or construction of ceJ;tain public improvements required as a precondition to the development o fproperties owned and/or to be developed by the Applicant or Applicant's successors within certain portions of that area of the City commonly known as Villages 5 through 10 of Sunbow II; and WHEREAS, the Applicant has agreed to advance funds to the City for the payment of certain initial consulting and administration costs and expenses related to the proceedings to consider the formation of the Community Facilities District and to subsequently authorize, issue and sell bonds for the Community Facilities District; and WHEREAS, the form of a Reimbursement Agreement to memorialize the terms and conditions of such advances and reimbursements has been presented to this City Council for its consideration; and WHEREAS, the form agreements for two of the six necessary consultants including market absorption analyst and appraiser have been presented to this City Council for its consideration; and WHEREAS, staff recommends the Consultant Selection process be waived because it is in the City's best interest and the following circumstances make it impractical: 1. The need to expedite the formation of the proposed Community Facilities District 2. Familiarity with the community fee structures is essential for the protection of the future bond purchasers. 3. Extensive knowledge of area property values is necessary. 4. A deep understanding of the dynamics of a regional market place and the potential of this project within that market is necessary. 1 WHEREAS, staff recommends Bruce W. Hull & Associates to be the appraiser and The Meyers Group to be the market absorption analyst due to their demonstrated high level of expertise. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The Consultant Selection Process is hereby waived and the forms of agreements with The Meyers Group for market absorption analysis and Bruce W. Hull & Associates for appraisal services, herewith submitted, are approved substantially in the forms submitted. The City Manager is hereby authorized to execute the final form of each such agreement on behalf of the City. The City Manager, subject to the review of the City Attorney, is authorized to approve changes in such agreement in substantially the form presented with such minor modifications as may be required or approved by the City Attorney. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt JohjI/Kaheny Director of Public Works City Attorney H:\home\aVtorney\cfd00-1 hull & meyers agr. Parties and Recital Page(s) Agreement between City of Chula Vista and Bruce W. Hull & Associates, Inc. for appraisal services associated with CFD 2000-1 This agreement ("Agreement"), dated May 9, 2000 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retaining a firm to complete an appraisal of Sunbow II ("Property") for a proposed Community Facilities District bond issue; and, Whereas, the appraisal will be used to ensure conformance with the City's value to lien policy; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 97-3 and 99-1; and, Whereas, the consultant selection process was waived due to (1) the need to expedite the formation of the proposed Community Facilities District 2000-1, (2) Consultant's familiarity with the community and fee structures is essential for the protection of the future bond purchasers, and (3) Consultant's extensive knowledge of property values in this area; and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 PaSte ~- Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at tbe option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Paste 2 Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required, In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Pac3-e 3 ----'r' T ! Il H. Securi _ty for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 4 and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 5 Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 6 during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of furore employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Padre 7 indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documems, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such docun~ents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the evem that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreemem is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January20, 1999 Page 8 The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Pa~e 9 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Pa~t'e 10 subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revisiqn) January 20, 1999 Parle 11 Signature Page to Agreement between City of Chula Vista and Bruce W. Hull & Associates for appraisal services associated with CFD 2000-1 IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2000 City of Chula Vista by: Dave Rowlands, City Manager Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Dated: Bruce W. Hull & Associates By: Bruce Hull By: Exhibit List to Agreement ( X ) Exhibit A. ( ) Exhibit B 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 12 Exhibit A to Agreement between City of Chula Vista and Brace W. Hull & Associates, Inc. 1. Effective Date of Agreement: May 9, 2000 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: ., ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultam: Bruce W. Hull & Associates 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (x) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 115 E. Second Street, Suite 100 Tustin, California 92780 Voice Phone (949)-581-2194 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Parle 2_3 Fax Phone (949) 581-2198 7. General Duties: A. Consultant shall prepare an appraisal for the Property for the formation of proposed Community Facilities District No. 2000-1 (Sunbow II). The Property for the purpose of this agreement is generally the area west of Otay Ranch SPA I West, south of Telegraph Canyon Road (the "Property"). 8. Scope of Work and Schedule: A. Detailed Scope of Work · The appraisal will provide an estimate of current market value of the Property, which is defined as follows: "The most probable price in terms of money which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation of sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what he or she considers his/her best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in cash or its equivalent; 5. Financing, if any, is on terms generally available in the community as of the specified date and is typical for the property type in its locale; and 6. The price represents a normal consideration for the property sold, unaffected by special financing amounts and/or terms, services, fees, costs or credits incurred in the transaction." Real Estate Terminology, AIREA, SREA, edited by Byrl N. Boyce, Copyright 1981, Publisher - Ballinger, Page 160. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 14 The value estimate will reflect the fee simple interest of the subject property, as of the date of value, subject to the CFD liens. · The value estimate will reflect actual conditions of the property, including appropriate deductions for any deferred maintenance; income deficiencies, if any; and any other unfavorable conditions affecting its current market value. Consultant will attend all coordination meetings scheduled by the City · Consultant will provide periodic drafts (as required by the City) of the appraisal for comments at the coordination meetings Consultant will provide 12 bound copies of the appraisal upon completion Consultant will provide an electronic version of the appraisal in a format acceptable to the City so that the City can make the report available to the underwriter or other party. · Consultant will work with the Property Owner to obtain the following: - Legal description and recent title or preliminary title report; - Site development costs including backbone infrastructure cost and builder improvement costs per planning area or tract; - Documentation regarding purchase of the subject property in the last three years; or pending sale of the property documented by purchase agreement and/or escrow . instructions; and - Property inspection. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A draft appraisal shall be delivered on or before June 15, 2000. A final appraisal shall be delivered on or before July 12, 2000. These time frames may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the appraisal to the satisfaction of the City's Director of Public Works. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 15 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: Consultant shall work with the ACI Sunbow, LLC Contact Person (Bill Hamlin) to obtain all needed material for completion of the appraisal. 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $30,000, payable as follows: Milestone or Evem or Deliverable Amount or Percent of Fixed Fee Acceptance of draft appraisal $15,000 Acceptance of Final appraisal $15,000 ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 16 the end of the phase, the full retention has been held back from the compensation due for that phase. Pementage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said pementage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B, ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. $ 3. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 17 Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: A. ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). B. ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 18 ( ) Hourly rates may increase by 6% for services rendered after [month], 19 , if delay in providing services is caused by City. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate ( ) Reports, not to exceed $__: ( ) Copies, not to exceed $__: ( ) Travel, not to exceed $__: Printing, not to exceed $ __: Postage, not to exceed $__: Delivery, not to exceed $__: Long Distance Telephone Charges, not to exceed $ Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: Donna Snider, Civil Engineer Consultant: Bruce Hull 14. Liquidated Damages Rate: N/A ( ) $.__ per day. ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 19 Code: x ) Not Applicable. Not an FPPC Filer. ) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department, Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Category No. 7. Business positions. ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 PaSte 20 · I I n/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly ( x ) Other: Completion of appraisal B Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month (X) Other: Completion of appraisal C City's Account Number: Developer deposit account 19. Security for Performance ( Performance Bond, $ ( Letter of Credit, $ ( Other Security: Type: Amount: $ ( Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: % ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: E-mail file: sbhull.wpd 5/3/00 (atty review) 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 21 Parties and Recital Page(s) Agreement between City of Chula Vista and The Meyers Group for Market Analysis and Absorption Projection Services for Community Facilities District No. 2000-1 This agreement ("Agreement"), dated May 9,2000 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retaining a firm to complete a Market Analysis and Market Projection of Sunbow II ("Property") for a proposed Community Facilities District bond issue; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 97-3 and 99-I and Assessment District 97-2; and, Whereas, the consultant selection process was waived due to (1) the need to expedite the formation of the proposed Community Facilities District 2000-1, (2) Consultant's extensive knowledge of this area of Chula Vista and San Diego which enables Consultant to analyze the project at a depth beyond the standard macro-level market data, (3) Consultant has demonstrated a deep understanding of the dynamics of a regional market place and understands the potential of this project within that market, and (4) Consultant's fees are comparable to those fees charged for existing financing districts; and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page starts Obligatory Provisions.) 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 1 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 2 Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the mount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the mount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Instnced, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (I) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 3 H. Security_ for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files 2ptyl 2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 4 and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amotmt due and payable thereunder is proper, and shall specifically contain the City's accotmt number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amotmt to compensate for delay. 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 5 Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 6 during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 7 indemnification shall include any and all costs, expenses, attomeys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 8 ---T T · ir The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall 'meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 9 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 10 subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 11 Signature Page to Agreement between City of Chula Vista and The Meyers Group for Market Analysis and Absorption Projection Services for Community Facilities District No. 2000-1 1N WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: _, 2000 City of Chula Vista by: Dave Rowlands, City Manager Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Dated: The Meyers Group By:. Peter F. Dennehy Managing Director By:. Exhibit List to Agreement ( X ) Exhibit A. ( ) Exhibit B. 2ptyl 2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 12 Exhibit A to Agreement between City of Chula Vista and The Meyers Group 1. Effective Date of Agreement: May 9, 2000 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of Califomia ( ) Industrial Development Authority of the City of Chula Vista, a ( ) Other: , ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: The Meyers Group 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 777 South Pacific Coast Highway, Suite 100 Solana Beach, CA 92075 Voice Phone (619) 792-8276 x.224 Fax Phone (619) 792-8944 2ptyl 2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 13 7. General Duties: A. Consultant shall prepare a Market Analysis and Absorption Projection for the Property for the formation of proposed Community Facilities District No. 2000-1 (Sunbow II). The Property for the purpose of this agreement is generally the area west of Otay Ranch Spa 1 West, south of Telegraph Canyon Road. 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Materials Review and Locational Assessment: Review all relevant materials compiled by City to date relative to the Sunbow II community such as site plans, previous market studies, pertinent development agreements, etc. Information on the infrastructure improvements planned in the project area will be analyzed in terms of impact on anticipated development in the area. 2. Definition of Competitive Market Area: Consultant shall determine the most appropriate competitive market area for each product type proposed for the subject project. Determination will be made based on existing and planned transportation routes, natural and man-made geographic boundaries, patterns of housing and commercial growth, historical market perceptions, etc. 3. Economic and Demographic Overview: Consultant shall compile pertinent demographic data for the San Diego County and South Bay area and analyze in the context of future development such as that proposed at the project. Data to be compiled will include population and household growth trends, employment growth and distribution, household income levels, age distribution, etc. Data will be utilized to help determine anticipated furore demand potential for residential and commercial development in the San Diego County market area and in the South Bay market area in particular. 4. Historical Residential Market Data: Consultant shall compile relevant historical data on the San Diego County and South Bay market area for-sale housing markets. Key residential market factors to be examined will include such things as new detached home sales and inventory trends, sales and inventory by price range, sales rates by price range, building permit issuance, resale market trends, etc. 5. Active Residential Project Overview: Consultant shall survey residential projects (detached, etc.) in the project's relevant market area (largely the South Bay). Project information will include market orientation, number ofunits planned, offered and sold, product types, square footage range, base price ranges, premiums, incentives, amenities, buyer and/or tenant profile, absorption rate, etc. As part of 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 14 this analysis, Consultant shall evaluate recent price changes and an absorption analysis will be conducted for the sell-out of active projects. 6. Master Planned Community Case Studies: A selected number of similar large-scale residential projects in the San Diego Coanty market area shall be analyzed by the Consultant. Survey will focus on key characteristics (size, sett'mg, product array, unit and price ranges, community amenities, buyer profiles), sales performance (yearly sales, marketing characteristics), and other comments. Survey will be used to identify the annual absorption potential and market capture of the San Diego County housing market achieved by other well-segmented master planned communities and will be used to assess sales and market capture projections. 7. Proposed Pro_iect Summary and Detailed Project Bulldout: Consultant shall compile and analyze information on the most relevant and major planned and proposed residential developments in the competitive market area for the Sunbow 1I development. To the extent available, detailed information will be presented for each project (units, timing, pricing, etc.). This analysis will cover all projects in various stages of the approval process in the South Bay market area. Consultant shall prepare a market-driven buildout projection for the proposed large-scale South Bay residential projects for use in reconciling annual supply and demand projections. 8. Demand Analysis: Consultant shall conduct a statistical demand analysis to quantify the furore demand potential for each type of development proposed for Sunbow II (for-sale residential, etc.). Demand will be based on a combination of statistical and judgmental methodologies, and will result in annual demand projections over the relevant tune frame of the subject project. 9. Conclusions: Consultant shall analyze all of the above information and draw conclusions relative to cunent and future market trends and assess the potential for the development and absorption of residential uses as proposed for Sunbow II. 10. Absorption Projection: Based on the above analysis, Consultant shall provide written recommendations with regard to anticipated absorption of the proposed residential development in the Sunbow II project. Absorption estimates will take into account such things as expected market trends, community positioning, infrastructure timing, etc. Absorption estimates will cover the anticipated period to build-out of the community on a quarterly or annual basis (format to be determined with appraiser). 2ptyl2.wp Standard Form Two Party Agreement (Twelt:th Revision) January 20, 1999 Page 15 11. Consultant will attend all coordination meetings and work with the project appraiser to ensure the most accurate results. 12. Consultant will provide check prims (as required by the City) of the Market Analysis and Market Projection for comments at the coordination meetings. 13. Consultant will provide to the City 25 bound copies of the Market Analysis and Market Projection upon completion. 14. Consultant will provide an electronic version of the absorption study in a format acceptable to City so that the City can make the report available to the underwriter or other party. 15. Consultant will work with the Property owners to obtain the following: Detailed information on current business plan projections for the development (absorption, product pricing and lot or land values), as well as details on proposed residential, timing, phasing, etc) . B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreemem ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: A final market absorption study and market analysis shall be delivered to the City on or before July 5, 2000. The delivery date may be revised as approved by the City Engineer. D. Date for completion of all Consultant services: Upon completion of the absorption study to the satisfaction of the City's Director of Public Works but no later than 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 16 Liability coverage). 10. Materials Required to be Supplied by City to Consultant: NA 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $12,500, payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee Delivery of a draft Market Analysis and Market Projection $6,000 Delivery of completed Market Analysis and Market Projection $6,500 which is acceptable to the City's Director of Public Works ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a pementage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement 2ptyl 2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 17 to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase I. $ 2. $ 3. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or pementage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Pementage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as heroin required, City shall pay Consultant 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 18 for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: · ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any addi- tional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate ( ) Hourly rates may increase by 6% for services rendered after [month], 19 , if delay in providing services is caused by City. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 19 herein required, City shall pay Consultant at the rates or mounts set forth below: ( ) None, the compensation includes all costs. Cost or Rate (X) Copies, travel, data purchases, other expenses not to exceed $1,000: At cost ( ) Copies, not to exceed $__: ( ) Travel, not to exceed $ : ( ) Printing, not to exceed $__: ( ) Postage, not to exceed $__: ( ) Delivery, not to exceed $__: ( ) Long Distance Telephone Charges, not to exceed $ ( ) Other Actual Identifiable Direct Costs: ., not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: Donna Snider, Civil Engineer Consultant: Peter Dennehy, Managing Director 14. Liquidated Damages Rate: NA ( ) $ per day. ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ( x ) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. ( ) Category No. 3. Investments, interest in real property and sources of income 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 20 subject to the regulatory, permit or licensing authority of the department. ( ) Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. ( ) Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ( ) Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No. 7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: n/a 18. Bill Processing: A Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly ( x ) Other: Completion of Market Analysis and Market Projection 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 21 B Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month (X) Other: Completion of Market Analysis and Market Projection C City's Account Number: Developer deposit account 19. Security for Performance Performance Bond, $ Letter of Credit, $ Other Security: Type:_ Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: % ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: E-mail file: Sbmeyer.wpd 5/3/2000 2pty 12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 22 CITY C~OUN(21L AGENDA STATEMENT ITEM NO. ~ MEETING DATE 05/09/00 ITEM TITLE: PUBLIC HEARING TO CONSIDER A 20 PERCENT DENSITY BONUS AND OTHER ADDITIONAL INCENTIVES TO FACILITATE THE CONSTRUCTION OF TEN (10) ADDITIONAL UNITS TO KINGSWOOD MANOR RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A TWENTY PERCENT (20%) DENSITY BONUS, REDUCING THE PARKING REQUIRED UNDER PRECISE PLAN (76-14) TO BE CONSISTENT WITH THE CITY'S MUNICIPAL CODE, AND ALLOWING SIXTEEN PERCENT OF THE REQUIRED PARKING AS COMPACT PARKING SPACES TO FACILITATE THE CONSTRUCTION OF A MAXIMIMUM OF TEN (10) AFFORDABLE DWELLING UNITS FOR AN EXISTING 40 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT, KNOWN AS KINGSWOOD MANOR, LOCATED AT 54-94 KINGSWOOD DRIVE TO BE DEVELOPED BY IPMG, INC, SUgMII'I'ED BY: COMMUNITY DEVELOPMENT DIRECTOR L ,..' REVIEWED BY: CITY MANAGER -~ ~ (4/5TM VOTE'- YES__ NO X ) The applicant, IPMG, Inc., has submitted an Affordable Housing Application requesting a twenty pement (20%) density bonus and modifications of certain development standards pursuant to California Government Code Section 65915 and the City of Chula Vista Housing Element. Specifically, the applicant is requesting the reduction of the parking required under the Precise Plan (76-14) for the property to be consister~t with the City of Chula Vista's Municipal Code permission to design 16 pement of the parking spaces as compact spaces. Such development incentives are contemplated under the provisions found in the California Government Code Section 65915 and the Chula Vista Housing Element. The request, if approved, would facilitate the construction of 10 affordable units to an existing 40 unit multifamily residential development. The proposed project is a 3.32 acre site located at 54-94 Kingswood Drive. As specified in Section 65195 (b) of the Califomia Government Code, for qualified affordable housing projects, the City must either (1) grant a minimum 25 pement increase over the otherwise maximum residential density, unless a lesser percentage is elected by the developer, and provide at least one additional regulatory concession or incentive (unless it finds the additional incentive unnecessary); or (2) provide other incentives of equal financial value based upon land cost per dwelling. Staff recommends the increase in density and modifications to the City's parking standards to facilitate the construction of ten affordable units at Kingswood Manor. This project would increase the availability of affordable three bedroom units for large families. Without the requested reduction to parking required under the Precise Plan (76-14) and 16 percent of the required parking spaces as compact spaces, the construction of any additional units on the site would not be allowed. PAGE '~, ITEM MEETING DATE 05/09/00 The Planning and Environmental Manager has determined that the project is exempt from the California Environmental Quality Act (CEQA) under Section 15280 of the California Code of Regulations. That the City Council adopt Resolution granting the requested 20 percent increase in density, the reduction of parking required under the Precise Plan (76-14) for the property to be consistent with the City's Municipal Code, and allowing of 16 pement of the required parking be compact parking spaces to facilitate the construction of a maximum of ten (10) affordable dwelling units for an existing 40 unit multifamily residential development, known as Kingswood Manor, located at 54-94 Kingswood Drive to be developed by IPMG, Inc. On December 15, 1999, the Housing Advisory Commission voted to recommend the requested density bonus and modifications to development standards, with the condition that the project participate in the City's Cdme Free Multifamily Housing Program. On April 12, 2000, the Planning Commission also voted to recommend the requested density bonus and modifications to development standards with the following conditions: 1) the project be fully certified in the Crime Free Multifamily Housing Program; 2) construction of a masonry wall and landscaping along the portion of the property line directly behind the pool and play area; 3) construction of Building One, as designated on the submitted site plan, approximately 30 feet from the north property line; and 4) installation of an intercom or other similar type system on both the east and west parking lot gates. 1. General Plan, Zonin.q, and Land Use Generel Plan Zoninq Land Use Site Residential Med (6-11 du/ac) R3P12 Kingswood Manor North Residential Med (6-11 du/ac) R2T Single Family Homes South Residential Med (6-11 du/ac) R2T Single Family Homes East Open Space/Parks & Rec R1 SDG& E Easement/Park West Residential Med (6-11 du/ac) MHP Palace Garden Mobilehome Park As noted above, the general area is characterized by single-family homes and a mobilehome community to the west. The site is served by public transportation. Bus service is provided along Hilltop Drive, one block from the project site. A public park is located directly adjacent to the project site on the south side. Both a junior high school and a high school are located within one block of the project. Therefore, it is staff's opinion that the site is appropriate for affordable housing and is highly compatible with the surrounding land uses. 2. Proiect Description The project site is located at 54-94 Kingswood Ddve, just west of Hilltop Drive. The property is currently developed with five two-story buildings and 100 parking spaces. Each building consists of eight dwelling units. The applicant is proposing the development of an additional 10 three-bedroom apartment units, an additional trash collection area, a children's play area, and a redesign of the parking area to accommodate 5 handicapped spaces PAGE 3, ITEM MEETING DATE OS/09/O0 within the 107 spaces (Exhibit 2). All 10 units will be affordable to and occupied by Iow-income households, with rents established at 30 percent of 60 percent of the Area Median Income. The proposal involves a request for a 20 percent density bonus, the reduction of parking required under the Precise Plan (76-14) to be consistent with the City's Municipal Code, and 16 percent compact parking spaces. Density Bonus: As specified in Section 65195 (b) of the California Government Code, the City shall grant a minimum 25 percent increase over the otherwise maximum residential density, unless a lesser percentage is elected by the developer and at least one additional concession or incentive to a developer of housing agreeing or proposing to construct at least: 1) 20 percent of the total units for Iow income households; 2) 10 percent of the total units for very Iow income households; or 3) 50 percent of the total units for seniors. In addition, the City must grant at least one additional incentive or concession as defined in Section 65195(h) or make a written finding that the additional incentive or concession is not required to provide the affordable housing. Such incentives include one of the following: 1) Reduction or modification of Development Standards, Zoning Codes or Architectural Design Requirements, 2) Permit mixed use zoning within the housing development; or 3) Allow other regulatory incentives or concessions.. As an alternative, the City could provide financial incentives of an equivalent value. The applicant is requesting a 20 percent density bonus to increase the project density from 40 to 50 (10 additional units) dwelling units. The request also includes a reduction of the parking standards ofthe project's original Precise Plan to be consistent with the parking standards outlined within the City of Chula Vista's Municipal Code and an increase in the number of compact parking spaces. Ten of the units will be restricted for occupancy by Iow-income households, defined as households with an income at 80% or below of the Area Median Income. Currently, the income for a Iow-income household of five is $46,400 a year. Rent for the affordable Iow-income units shall not exceed the lesser of: 1) 30 percent of the income for a household of five at 60 percent of the AMI which is currenfiy $870 per month; or 2) 10 percent less than the market rate units. Currently, rent for the market rate units are $975 per month. Rent and occupancy rastdcfions will be maintained for a period of no less than 30 years and will bind all subsequent owners, so that the commitment remains in force regardless of ownership. Large family housing for lower income households is a high priority need identified in the City's Housing Element of the General Plan. This project supports the City's Housing Element, which calls for the provision of adequate rental housing opportunities for Iow and very Iow-income households. The project complies with a top priority set out in the City's Consolidated Plan for Housing and Community Development. This priority is to implement the City's Affordable Housing Program so that more newly constructed rental and for sale units are made available to Iow and moderate income households, with priority given to very Iow and Iow-income families. This project meets the requirements of State law to provide 20 percent of the total units for Iow-income households. The proposed project also meets the required 30 years of affordability. In order for the applicant to provide such affordability for the 30-year term, the requested density bonus and reductions or modifications to standards are required. PAGE 4, ITEM MEE~TING DATE Lastly, a Housing Cooperation Agreement will be executed be~een the City and the applicant specifying the affordability and occupancy restrictions (Exhibit 3). It is staff's intent that said Agreement will place restrictive covenants on the properb/timiting occupancy and affordabili~ of ten units for Iow-income households. Parking: Section 19.62.050 of the City's Municipal Code requires two parking spaces for each three-bedroom unitl guest parking is inclusive, One space for every ten parking spaces may be compact. Standard parking spaces measure 9 feet x 20 feet and compact spaces measure 7,5 feet x 15 feet. In accordance with the standards set forth by the Municipal Code the proposed project would require a total of 100 parking spaces for residents and guests, of which five spaces are reserved for persons with disabilities. The applicant is providing a total of 107 parking spaces, in compliance with Section 19.62.050 of the Municipal Code. The applicant is requesting a modification of the compact parking standard of one compact space for every 10 parking spaces. In accordance with this standard, ten of the parking spaces can be compact. The applicant is proposing 17 compact spaces, an increase of 7 compact spaces. The increase in compact spaces is requested in order to comply with the current requirements of five handicapped parking spaces for those parking areas in excess of 100 spaces. Only two spaces are currently reserved for handicapped parking. A total of 107 parking spaces are proposed, with five of these spaces provided for handicapped/accessible parking. Parking Requirements (as set forth in the City's Municipal Code) NO. ot ~equ~rea i ~roposea Description Units Parking Standard Parking Parking ~ hree-Bed room 50 ;Z Spaces/!JU 1 gU I 0 / Guest Parking Inclusive 0 0 Handicap Inclusive 5 5 Compact Spaces 1 ;SpacellU ~tanaara Spaces 10 1 / The original Precise Plan (76-14) for the property specifically provides for two parking spaces for each three-bedroom unit and one half-guest parking space for each unit. This parking standard is more restrictive than Section 19.62.050 of the Municipal Code, which requires two parking spaces for each dwelling unit for both residents and guests. The project should, however, conform to the more restrictive development standards of the Precise Plan. Therefore, in conformance with the Precise Plan, the project would require a total of 125 spaces, with 100 spaces for residents and 25 guest-parking spaces. The applicant is proposing to provide 107 parking spaces for residents and guests consistent with the City's Municipal Code and is requesting a reduction of parking required under the provisions of the Precise Plan. The more restrictive parking requirements of the Precise Plan would require an additional 25 parking spaces in excess of the requirements of the City's Municipal Code. Should the City require compliance with the Precise Plan's guest parking standards, the project would not be feasible. The property's size and the existing development would not be able to accommodate more than the existing 40 three-bedroom units, 10 additional units, the proposed play area, trash collection area and the proposed 107 parking spaces. While the parking requirements could be met off-site, there is no parking available within close proximity of this project. Should the City require compliance with the parking standards of the Precise Plan, the project would not be feasible. The reduction of the Precise Plan (76-14) parking requirements and provision of compact spaces is required to develop any additional units on the site. PAGE 5. ITEM MEETING DATE 05/09/00 The applicant contends that the existing parking facilities are not fully utilized, The applicant's survey of vehicles owned by residents found that there are a total of 61 vehicles owned by residents or 1.5 vehicles per unit, Staff anticipates that the underutilization of the parking facilities would continue, even with the additional development of ten three bedroom units. Based upon the applicant's survey of 1.5 vehicles per unit, the additional 10 units would generate a need for 15 additional spaces to the existing 61 spaces currently in use. Therefore, the project would generate a need for 76 parking spaces for residents and the remaining available parking, 31 spaces, would be able to accommodate guests. To verify the underutilization of on site parking, staff has made direct observations of the parking dudng vadous hours of the day. Day of Lh~ Eas~ Parking Lui. Wadi. Parking Lo[ I Tui.~i Date Week Time (Tob as) (F rst Ave) Vehicles (JS/(J~/UU weclnesaay ~' a.m.10 03/13/[.)~) Monday 10 a.m. 3O 0410210~J Sunday 9:30 a.m 13 44 04/02/00 Sunday 7 p.m. It has been noted that the project is gated and therefore, in effect, guests would not be able to use the guest parking provided on site. Although the project is gated, the gates are open dudng the day hours and are closed in the evening. Guests are not able to access on site parking in the evening hours without some prior arrangements with residents. Therefore, the Planning Commission's recommendation of approval of the density bonus request is conditioned upon the developer installing an intercom or other similar type of system on both the east and west parking lot gates to enable guests to more easily access on-site parking. Parking is available on the streets directly adjacent to the project (Kingswood Drive, Tobias Drive and First Avenue). As observed by staff, on street parking along Kingswood Ddve, Tobias Ddve and Sherwood Street is already well used. On street parking available along First Avenue would not significantly impact residents on First Avenue. There are only a few residences with frontage along First Avenue. Palace Garden Mobilehome Park directly abuts First Avenue, just west of the project. There is no access from Palace Garden to First Avenue. As observed by staff, on street parking is readily available along First Avenue from the park to the south to Quintard on the North. Staff suppods the proposed reduction of the parking requirements of the Precise Plan (76-14) to be consistent with the City's Municipal Code and allowing 16 percent of such spaces to be provided as compact spaces. The proposed additional units are to be occupied by Iow-income households. The applicant's survey of residents' vehicles and field observations reveal that onsite parking is currently underutilized. Based upon the current use of the parking facilities, it is envisioned that the majority of these households do not have two or more vehicles. The site is located one block from public transportation, lessening the need to own a vehicle. On street parking is available, if needed, along First Avenue. The additional 10 units will not significantly impact parking for the project. The project is able to meet the number of parking spaces required under Section 19.62.050 of the City's Municipal Code. The higher use of compact spaces is required to meet the current requirements for handicapped parking. ! 1! PAGE G, ITEM MEETING DATE O5/O9/OO Open Space: The Chula Vista Municipal Code Section 19.28.090 requires 600 square feet of open space per dwelling unit for multi-family projects. The open space may be provided in common usable open space areas, pdvate patios, balconies, or common recreational facilities The project will provide a total of 72,560 square feet of open space or 1,450 square feet per unit, which far exceeds the requirements of the Municipal Code. The existing development does not provide private open space. Consistent with the design and amenities of the existing units, the applicant is not proposing private open space for the ten new units. Additionally, the applicant is proposing alterations to the pool area, the addition of a children's play area, and overall site improvements. The pool area will be renovated to eliminate the spa and provide a gazebo. The applicant will be adding a trash collection area, repainting the buildings, and completing repairs to the project. To date, the developer has repainted all of the buildings, renovated the pool area, and completed the majodty of the repairs to the project. Financial Assistance: It is estimated that the cost of building and developing the proposed additional units and amenities to Kingswood Manor would be approximately $914,760 or $70/square foot. The applicant is proposing to finance the proposed project through conventional sources. No subsidy is requested from the City. Chula Vista Crime Free Multi-Housinq Proqram: Dudng the March 22n~ public hearing before the Planning Commission, speakers referenced the number of calls for police service for Kingswood Manor, concerned that increasing density for this development would result in more problems. During the period beginning September 1998 to February 2000, there were 103 calls for service for Kingswood Manor. Of the 103 calls, 32 percent of the calls were regarding criminal activities, 21 percent were for noise/disturbances, and the remaining 53 percent were for other service calls. The other calls for service include such services as welfare check of residents, runaway juveniles, pedestdanstops, and 911 hang ups. Although the number of calls for service for Kingswood Manor appears to be high, this is typical for apartment communities. Therefore, the Housing Advisory Commission and Planning Commission recommended approval of the requested density bonus and reductions in the parking standards for this project with the condition that the project participate in the City of Chula Vista's Crime Free Multi-Housing Program. This Program was designed to help tenants, owners and managers of rental property keep drugs and other illegal activity off their property. It is anticipated that the project's participation in this Program will facilitate strong property management, eviction of problem tenants, screening of applicants, and maintenance of the property. Even with the increase in units and families, it is expected that the number of calls for service associated with the project will see a significant decrease due to the project's participation in the Crime Free Multi-Housing Program. Kingswood Manor has recently completed full certification under this program. Community Concerns: In response to the public notice sent to both property owners and residents within 500 feet of the project, the City received numerous correspondences voicing concerns over the increased density and opposing the project. Based upon the significant interest in this project, the developer held two community meetings to provide an opportunity for property owners and residents to communicate their concerns and for the developer to try to address such concerns PAGE 7, ITEM MEETING DATE OS/OO/OO where appropriate. The first meeting was held on March 8, 2000 at 6:00 p.m. with the developer, Kingswood Manor Property Management, the Cdme Free Multi-housing Coordinator and staff representatives of the Planning and Community Development Department in attendance at this meeting. Addifionally, the developer met with concerned residents at the project site on March 16, 2000 at 4:00 p.m. Only one neighboring residents attended this meeting. A detailed summary of the comments received and the developer's and City's response to address these concems is provided as Exhibit 4. Alternative: As set forth in Califomia Government Code Section 65915 (b), as an alternative to granting a density bonus or a density bonus and an additional incentive, the City may provide other incentives of equivalent financial value based upon the land cost per dwelling unit, including direct financial assistance. The proposed project is for the construcfion of 10 additional units to an existing development. Without the requested reduction of parking required under the Precise Plan (76-14) and 16 percent of the required parking spaces as compact spaces, the construction of any additional units on the site would not be allowed. No financial assistance has been requested by the developer. Staff time involved in the review of the project and preparation of the required agreement is budgeted in the staff services component of the Housing Division budget. 1. Location Map 2. Site Plan 3. Housing Cooperation Agreement 4. Summary of Comments Received 5. Housing Advisory Commission Minutes of 12/15/99 (LH) H:\HOME\CommDev~Staff. rep~Al 13 Kingswood Manor [3/22/2000] ClRUELA CT AY AN EXHIBIT 2 EXHIBIT 3 HOUSING COOPERATION AGREEMENT COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A TWENTY PERCENT (20%) DENSITY BONUS, REDUCING THE PARKING REQUIRED UNDER PRECISE PLAN (76-14) TO BE CONSISTENT WITH THE CITY'S MUNICIPAL CODE, AND ALLOWING SIXTEEN PERCENT OF THE REQUIRED PARKING AS COMPACT PARKING SPACES TO FACILITATE THE CONSTRUCTION OF A MAXIMIMUM OFTEN (10) AFFORDABLE DWELLING UNITS FOR AN EXISTING 40 UNIT MULTIFAMILY RESIDENTIAL DEVELOPMENT, KNOWN AS KINGSWOOD MANOR, LOCATED AT 54-94 KINGSWOOD DRIVE, AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE HOUSING COOPERATION AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND IPMG, INC. I. RECITALS A. Project Site WHEP,_EAS, the parcel, which is the subject matter of this resolution, is diagrammatically represented in Exhibit A attached hereto and incorporated herein by this reference, and for the purpose of general description herein consists of approximately 3.32 acres of land located east of the intersection of Tobias Drive and Kingswood Drive, also known as 54-94 Kingswood Drive ("Project Site"). B. Project Applicant WHEREAS, an application for an affordable housing project and a request for a twenty percent (20%) density bonus and other additional incentives/concessions was filed with the Chula Vista Community Development Department on November 30, 1999 by IPMG, Inc. ("Applicant"); and C. Project Description WHEREAS, said application requested a twenty percent (20%) density bonus, the reduction of the required parking under the Precise Plan (76-14) for the property to be consistent with the parking requirements specified in Section 19.62.050 of the City of Chula Vista's Municipal Code, and sixteen percent of the spaces to be provided as compact parking spaces to allow the construction of ten (10) additional rental units for low income households ("Project"); and D. Environmental Determination WHEREAS, in accordance with the requirements of CEQA, the Planning and Environmental Manager has determined that the Project requires the preparation ora Notice of Exemption under Section 15280 of California of the California Code of Regulations and such notice was prepared, filed and posted for the required 30 day period; and Resolution No. Page 2 E. Planning Commission Record on Application WHEREAS, the Planning Commission held a public hearing on the Project on March 22, 2000 and again on April 12, 2000 at which time the Planning Commission voted 7 to 0 adopting Resolution No. AH 99-003 recommending that the City Council grant the requested increase in density of twenty percent (20%), the reduction of parking required under the Precise Plan (76-14) for the property to be consistent with the City of Chula Vista Municipal Code, and sixteen percent of the spaces to be provided as compact parking spaces pursuant to California Government Code Section 65915, Chapter 4.3, Density Bonuses and Other Incentives, to facilitate the construction of a maximum often (10) affordable dwelling units to an existing 40 unit housing development, known as Kingswood Manor, located at 54-94 Kingswood Drive; and WHEREAS, from the facts presented to the Planning Commission, the Commission has determined that the Project is consistent with the City of Chula Vista General Plan and that the public necessity, convenience and general welfare and good zoning practice support the Project, and implements portions of State related density bonus and that the grariting of said density bonus, the reduction of parking required under the Precise Plan (76-14) for the property to be consistent with the parking requirements of the City of Chula Vista Municipal Code, and the provision of sixteen percent of the parking spaces as compact spaces does not adversely affect the order, amenity, or stability of adjacent land uses; and F. City Council Record of Application WHEREAS, the City Council of the City of Chula Vista considered the recommendation of the Planning Commission regarding the density bonus and additional incentives/concessions for the Project on ., 2000; and G. Housing Cooperation Agreement WHEREAS, as a condition of the approval of the density bonus and additional incentives granted, the Applicant is to enter into a written agreement with the City of Chula Vista specifying the tenancy requirements and terms of commitment for, the density bonus and additional incentives in accordance with California Government Code Section 65915; and WHEREAS, the proposed form for such written agreement, the Housing Cooperation Agreement, has been negotiated with the applicant and is being presented for the City's consideration at the meeting at which this resolution is being adopted; and NOW THEREFORE BE IT RESOLVED that the City Council does hereby find, determine and ordain as follows: II. PLANNING COMMISSION RECORD The proceedings and all evidence on the Project introduced before the Planning Commission at their public hearing on this Project held on March 8, 2000 and April 12, 2000 and the minutes and resolution resulting therefrom are hereby incorporated into the record of this proceeding. · 1 I Resolution No. Page 3 III. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council does hereby find that the Notice of Exemption has been prepared in accordance with the requirements of the California Environmental Quality Act, the State EIR guidelines and the Environmental Review Procedures of the City of Chula Vista. iV. INDEPENDENT JUDGEMENT OF THE CITY OF CHULA VISTA CITY COUNCIL The City Council finds that Notice of Exemption reflects the independent judgment of the City of Chula Vista City Council. V. CITY COUNCIL FINDINGS The City Council hereby finds that the Project is consistent with the City of Chula Vista General Plan and that the public necessity, convenience and general welfare and good zoning practice support the Project, and implements portions of State related density bonus and that the granting of said density bonus, the reduction of parking required under the Precise Plan (76-14) for the property to be consistent with the parking requirements of the City of Chula Vista Municipal Code, and sixteen percent of the spaces to be provided as compact parking spaces does not adversely affect the order, amenity, or stability of adjacent land uses. BE IT FURTHER RESOLVED that the City Council does hereby approve, in accordance with California Government Code Section 65915, the requested increase in density of twenty percent (20%), the reduction of the parking required under the Precise Plan (76-14) for the property to be consistent with the parking requirements of the City of Chula Vista Municipal Code, and sixteen percent of the spaces to be provided as compact parking spaces to allow the construction of a maximum often (10) affordable dwelling units for an existing 40 unit residential project located east of the intersection of Tobias Drive and Kingswood Drive, also known as 54-94 Kingswood Drive in the City of Chula, to balance the financial feasibility of the affordable housing project with the usual amenities found in a development of this type, subject to the following terms and conditions set forth below: VI. Terms of grant of density bonus and additional incentives A. Ensure that the proposal complies with the use outlined in the application and materials submitted therewith except as modified below: 1. Comply with all conditions of Council Resolution __ dated ,2000. B. The applicant enter into a written agreement with the City of Chula Vista specifying the tenancy requirements and terms of commitment for, the density bonus and additional incentives in accordance with California Government Code Section 65915. C. Construct the Project as submitted to and approved by the City Council, except as modified herein and/or required by the Municipal Code, and as detailed in the Project description. D. Construction of Building One, consisting of eight units, as designated on the submitted site plan, approximately thirty (30) feet from the north property line. Resolution No. Page 4 E. Construction of masonry wall/fencing and landscaping along the portion of the north property line directly behind the pool and play area prior to issuance of the building permit(s) for the project. F. Installation of an intercom or other similar system for both the east and west parking lot gates prior to issuance of the building permit(s) for the project to enable guests or residents to more readily access such parking areas. G. Ten (10) units shall be maintained for a period of thirty years as affordable housing for tow- income households. H. Participate in the City of Chula Vista Crime Free Multi-Housing Program or any other such program that may be adopted by the City of Chula Vista, with program certification of the property completed by issuance of the building permit(s) for the project. VII. CITY COUNCIL APPROVAL The City Council hereby grants the requested increase in density of twenty percent (20%) to allow, contingent upon applicant entering a regulatory agreement with the City ensuring compliance with certain conditions, the construction of a maximum of ten (10) affordable dwelling units for an existing 40 unit residential project located east of the intersection of Tobias Drive and Kingswood Drive, also known as 54-94 Kingswood Drive in the City of Chula. The City Council further approves the following incentives to the Applicant in order to balance the financial feasibility of the affordable housing project with the usual amenities found in a development of this type: 1. The reduction of the required parking spaces under the Precise Plan (76-14) for the property to be consistent with the parking requirements specified in Section 19.62.050 of the City of Chula Vista's Municipal Code. 2.Sixteen percent of the spaces to be provided as compact parking spaces. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby approve a Housing Cooperation Agreement with the applicant for the development of the project, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista and the City Manager, or his written designee is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver said Agreement in substantially the form presented, with such additions thereto or changes therein as are recommended or approved by the City Manager or City Attomey and approved by the officer or officers executing the agreement, with the approval of such officer or officers to be evidenced conclusively by the execution and delivery of such agreements. Presented by Approved as to form by Chris Salomone John~M. Kaheny Director of Community Development City Attorney RECORDING REQUESTED BY: City of Chula Vista WHEN RECORDED MAIL TO: City of Chula Vista City Clerk's Office Attn: City Clerk 276 Fourth Avenue Chula Vista CA 91910 (Space above for Recorder's Use) HOUSING COOPERATION AGREEMENT THIS HOUSING COOPERATION AGREEMENT (the "Agreement") is entered into this __ day of ,2000, between the CITY OF CHULA VISTA, a municipal corporation ("City"), and IPMG, Inc., a California Corporation, ("Property Owner") and/or its successors or assignees. ARTICLE 1- Recitals 1.1 Authority. City is authorized to enter into binding agreements for the purpose of protecting public health, safety, and wetfare. 1.2 Property Owner. Property Owner is the legal owner of the fee title to the real property described as $4 through 94 Kingswood Drive. Said real property is referred to in this Agreement as "the Real Property" and as f~rther described in the attached Exhibit "A," which is hereby incorporated herein. 1.3 Density Bonus. Property Owner has submitted to City a proposal for the development of ten (10) additional three bedroom units for low income households on the Real Property pursuant to State Government Code Section 65915. The project is known as Kingswood Manor Apartments. 1.4 Project. Property Owner proposes to construct ten (10) additional apartment units to an existing forty (40) unit residential development, with all ten units affordable to low income households at or below 80 percent of the Area Median Income ("AMI") west of the intersection of Tobias and Kingswood Drive, also known as 54 through 94 Kingswood Drive, in the City of Chula ("Project"). 1.5 State Density Bonus Law. The City is required to provide Property Owner with incentives for the production of low income housing units within the development if Property Owner agrees or proposes to construct certain percentages of the development for low and/or very low-income households. 1.6 Grant of Density Bonus and Additional Incentives. The City Council of the City ("City Council"), in response to Property Owner's application, approved a density bonus and additional incentives for the Real Property. Said resolution is attached as Exhibit B and is incorporated herein. 1.7 Low/Moderate Income Housing. Said Government Code Section 65915 provides, among other things, that when a developer of housing agrees to construct a specified percentage of the total units of a housing development for households of low income, as defined in Section 50093 of the California Health and Safety Code, a city shall grant a density bonus for said housing development. 1.8 Agreement. The City Council established in Resolution No. a requirement that an agreement be entered into between City and Property Owner providing for (i) the density bonus and (ii) the creating and maintaining of a specified percentage of the dwelling units on the Real Property for low income housing. 1.9 Design Review Committee. The City's Design Review committee, on , 2000, approved Property Owner's site plan, elevations and preliminary plans for the constructing and maintaining of ten dwelling units on the Real Property. Said resolution is referred to in this Agreement as "the Design Resolution" and is attached as Exhibit C and incorporated herein. 1.10 Intent. These parties intend that this Agreement constitute the agreement referred to in Paragraph 1.8. CITY AND PROPERTY OWNER HEREBY AGREE AS FOLLOWS: ARTICLE 2- Development Standard 2.1 Density Bonus. Property Owner is entitled to construct an additional ten dwelling units to the existing forty unit residential devclopmant and maintain on the Real Property a total of fifty dwelling units, a twenty percent (20%) increase in density. 2.2 Other Standards. The permitted uses of thc Real Property, the density of use thereof, the maximum height and size of buildings thereon, and provisions for reservations or dedication of land for public purposes and all other standards of development of the Real ProperW will be governed by each of thc following as presently constituted ("the Development Standards"): 2.2.1 General Plan: "Residential Medium" designation in City's General Plan. 2.2.2 Zone Regulations: The regulations for R-3 P12 (Apartment Residential, Precise Plan Density 12 units per acre). 2.2.3 Design Resolution: Thc Design Resolution attached hereto and any exhibits referred to therein. 2.2.4 Density: The provisions of Paragraph 2.1. 2.2.5 Parking: Property Owner shall provide two parking spaces per dwelling unit, no guest parking spaces, with twenty-one spaces provided as compact parking spaces, a reduction from the 0.5 guest parking space per dwelling unit required under the Precise Plan (76- 14) for the Project and an increase in the one compact parking space per dwelling unit requirement as specified in Section 19.62.050 of the City of Chula Vista Municipal Code. 2.2.6 Precise Plan: The development standards set forth in the original Precise Plan (76-14) for the Project. 2.3 Low and Moderate Income Housing. Ten dwelling units shall be continuously occupied only by and affordable to low income households as set forth in Article 3. 2.4 Conflict. In the event of conflict between Paragraph 2.1 and any other of the Development Standards, Paragraph 2.1 will prevail. 2.5 Effect of Termination Pursuant to Article 3. Termination pursuant to Paragraph 3.6 will not affect, or render inapplicable, the foregoing Development Standards. ARTICLE 3- Low Income Housing 3.1 Definitions. For the purposes of this article, the following definitions apply: 3.1.1 "Density Bonus" means a density increase of at least 25 percent over the otherwise maximum allowable residential density, unless a lesser amount is requested by the developer and approved by City Council, under the applicable zoning ordinance and land use element of the general plan. 3.1.2 "Additional Incentives" means a reduction or modification of Development Standards, Zoning Codes or Architectural Design requirements, permitting mixed use zoning within a housing development, or other regulatory incentives or concessions. 3.1.3 "Housing Manager" means the Housing Manager of the City. 3.1.4 "Area Median Income" means the latest median income from time to time determined by the United States Department of Housing and Urban Development (pursuant to Section 8 of the United States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area. 3.1.5 "Low Income Tenants" means individuals or families with an income which does not exceed 80 percent of the Area Median Income, as adjusted for household size and as most recently determined by the U.S. Department of Housing and Urban Development. 3.1.6 "3 BR Low Income Apartment" means any of the ten (10) three-bedroom apartment units on the Real Property, which shall be continuously occupied only by and affordable to a Low Income Tenant. 3.1.7 "Affordable Apartment" means any of the apartments defmed in Paragraph 3.1.6; "Affordable Apartments" means all of such apartments collectively. 3.1.8 "Manager's Unit" means that unit on the real property occupied by a resident property manager which may be exempt from occupancy restrictions. 3.1.9 "Rent" means the total of monthly payments for all of the following: (a) use and occupancy of the apartment unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by the lessor which are required of all tenants, other than security deposits, and (c) a reasonable allowance for utilities not included in the above costs, excluding telephone service, which takes into consideration an adequate level of service. 3 ? ~//' · I [ 3.2 Qualification of Tenants. As to the Affordable Apartments, the following will apply: 3.2.1 3 BR Low Income Apartments. Each 3 BR Low Income Apartment will be leased to a Low Income Tenant. 3.3 Monthly Rent. As to the Affordable Apartments, the following will apply: 3.3.1 Low Income Apartments. The monthly rent charged for all the Low Income Apartments shall not exceed the lesser of the following: a) ten percent less than non-restricted dwelling units within the Project; or b) one-twelfth of the amount obtained by multiplying 30 percent times 60 percent of the Area Median Income, as adjusted for household size and assuming the following unit sizes and household sizes: Unit Size Household Size Three Bedroom Five Persons 3.4 Proof of Qualification. Property Owner will obtain from each person(s) to whom Property Owner rents an Affordable Apartment a "Supplemental Rental Application" ("the Application ") in the form of Exhibit D attached hereto and incorporated herein (or such other form as City may from time to time adopt and of which City notifies Property Owner in writing). Property Owner will be entitled to rely on the Application and the supporting documents thereto in determining the eligibility of such person(s) to rent such Affordable Apartment. Property Owner will retain the Application and supporting documents for a period of at least three years after the applicant thereof ceases to occupy such Affordable Apartment. Copies of the most recent Supplemental Rental Application for Low Income Tenants commencing or continuing occupancy of an Affordable Apartment shall be attached to the semi- annual report to be filed with the City in compliance with Section 3.6 of this Agreement. An Affordable Apartment occupied by a qualified tenant who at the commencement of the occupancy qualifies as a low income household shall be treated as occupied by a Low Income Tenant until a recertification of such tenant's income in accordance with Section 3.4.1 below demonstrates that such tenant no longer qualifies as a Low Income Tenant. 3.4.1 Recertification of Income. Immediately prior to the first anniversary date of the occupancy of an Affordable Apartment by a qualified tenant, and on each anniversary date thereafter, the Property Owner shall reeerfify the income of the occupants of each Affordable Apartment by obtaining a completed Supplemental Rental Application based upon the current income of each occupant of the Affordable Apartment. In the event the recertification demonstrates that such household's income exceeds the income at which such household would qualify, such household will no longer qualify as a Low Income Tenant, and the Property Owner will rent the next available unit of comparable or smaller size to one or more Low Income Tenants. 3.5 Waiver. Property Owner may apply in writing to the Housing Manager for a waiver, as to a specifically designated Affordable Apartment. Each such application will be accompanied by written data or other evidence relied upon by Property Owner to show that, for the near future, there will be no reasonable demand for such Affordable Apartments(s). Within 30 days after receipt of any such application, the Housing Manager will, in writing, either grant or disapprove the requested waiver; the failure of the Housing Manager to act within said period will be deemed to be approval of such requested waiver. If such waiver is granted, Property Owner may lease the Affordable Apartment(s) affected by the granted waiver to such person(s) and at such rental as Property Owner determines, subject to each of the following: 3.5.l Month-to-Month Tenancy. Anything in Paragraph 3.5 to the contrary notwithstanding, the lease or rental agreement will create only a month-to-month tenancy. 3.5.2 Termination of Waiver. At any time after granting any such waiver, the Housing Manager may, by writing delivered to Property Owner, terminate such grant. Within five days after such delivery, Property Owner will appropriately notify the tenant (s) and occupant (s) (of the Affordable Apartment (s) for which the grant of waiver has been terminated) that the month-to-month tenancy thereof will be and become terminated one month after delivery of such notification by Property Owner. Property Owner will take reasonable steps to effectuate such termination, including diligent commencement and prosecution of an unlawful detainer action. 3.6 Records, Audits. Property Owner will submit to City semi-annual certified rent rolls, disclosing with respect to each Affordable Apartment (i) monthly rent rate, (ii) number of occupants for which the Affordable Apartment is ranted, and (iii) the income of such occupant(s) and in the form of Exhibit E attached hereto and incorporated herein (or such other form as City may from time to time adopt and of which City notifies Property Owner in writing). If City determines an audit is necessary to verify a submitted rent roll, it will so notify Property Owner in writing thereof. Within ten days after delivery of said notice, Property Owner will deliver to City the names of tbxee certified public accountants doing business in the metropolitan San Diego area. City will promptly deliver to Property Owner the former's approval of one or more of said names. The audit will be completed by an approved certified public accountant, at Property Owner's cost, within 60 days after the delivery to Property Owner of City's said approval. The certified public accountant will promptly deliver a copy of the written audit to City. 3.7 Term. The term during which this Article 3 applies commences on the date hereof. Said term ends on the date which is thirty (30) years after the date on which at least five (5) of the ten (10) additional dwelling units approved pursuant to the density bonus are first occupied. ARTICLE 4 - Breach 4.1 Breach by City. If City breaches any of its covenants contained in this Agreement, Property Owner will have available to it all legal and equitable remedies afforded by the laws of the State of California. 4.2 Breach by Property Owner. If, with respect to any Affordable Apartment, Property Owner breaches this Agreement by charging higher rent than that herein permitted, Property Owner will, immediately upon City's demand, (i) reduce the rent to that permitted herein and (ii) refund to any tenants who theretofore paid such higher rent the amount of the excess, together with interest hereon at the rate of 10 percent per annum, computed from the date(s) of payment of the excess by said tenants to the date of said refund. The provisions of this paragraph constitute a third- party beneficiary contract in favor of such tenants. Further, City is hereby granted the power (but not the duty) to act as attorney-in-fact of such tenants in enforcing this paragraph. 4.3 Breach by Property Owner. If, with respect to any Affordable Apartment, Property Owner breaches this Agreement by leasing to tenants who are not, pursuant to paragraph 3.2, qualified, Property Owner will, immediately upon City's written demand, and at Property Owner's sole cost, take all lawful steps to terminate such leasing. 4.4 Remedies Not Exclusive. The remedies set forth in Paragraphs 4.2 and 4.3 are not exclusive, but are in addition to all legal or equitable remedies otherwise available to City. ARTICLE 5 - General Provisions 5.1 Assignment. The rights and obligations of Property Owner under this Agreement may be transferred or assigned, provided such transfer or assignment is made as a part of the conveyance of the fee of all or a portion of the Real Property. Any such transfer or assignment will be subject to the provisions of this Agreement. During the term of this Agreement, any such assignee or transferee will observe and perform all of the duties and obligations of Property Owner contained in this Agreement as such duties and obligations pertain to the portion of said real property so conveyed. 5.2 Amendment or Cancellation of A~reement. This Agreement may be amended from time-to-time or cancelled by the mutual consent of the parties hereto but only in the same manner as its adoption. The term "this Agreement" includes any such amendment properly approved and executed. 5.3 Enforcement. Unless amended or cancelled as provided in Section 5.2, this Agreement is enforceable by any party to it despite a change in the applicable general or specific plans, zoning, subdivision or building regulations adopted by City which alter or amend the rules, regulations or policies governing permitted uses of the land, density and design. 5.4 Hold Harmless. Property Owner shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) for personal injury or property damage arising out of the direct or indirect conduct or operations of the Property Owner, or any agent or employee, subcontractors, or others in connection with the execution of this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Property Owner's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Property Owner agrees to indemnify, defend, protect and hold harmless the City, its officers, and employees from and against any and all claims, suits, actions, or other proceedings to which the City is exposed resulting from the City's preparations, review, approval, or granting of the Density Bonus as called for in this Agreement. Further, Property Owner, at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents or employees. Property Owner's indemnification of City shall not be limited by any prior or subsequent declaration by the Property Owner. 5.5 Anti-Discrimination. Property Owner, for itself and its successors and assigns, agrees that during the term of this Agreement, will not, with respect to its operation of the Project, discriminate against any person because of race, color, creed, religion, sex, sexual orientation, marital status, age, handicaps, ancestry or national origin. 5.6 Crime Free Multi-Housing Pro~ram. Property Owner, for itself and its successors and assigns, agrees that during the term of this Agreement, will, with respect to its operation of the Project, participate in the City of Chula Vista Crime Free Multi-Housing Program or any other comparable program as may be adopted or implemented by the City of Chula Vista. 5.7 Binding Effect of Agreement. The burdens of this Agreement bind and the benefits of the Agreement inure to the parties' successors or assignees in interest. 5.8 Relationship of Parties. It is understood that the contractual relationship between City and Property Owner is such that Property Owner is an independent contractor and not an agent of City. 5.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands or requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: Community Development Director Property Owner: IPMG, Inc. 11230 Sorrento Valley Road, Suite 100 San Diego CA 92121 Attn: Daniel Dabby A party may change its address by giving notice in writing to the other party. Thereafter, notices, demands and requests shall be addressed and transmitted to the new address. ARTICLE 6 - Conflicts of Law 6.1 Conflict of City and State or Federal Laws. In the event that state or federal laws or regulations enacted after this Agreement has been entered into prevent or preclude compliance with one or more provisions of this Agreement require changes in plans, maps or permits approved by the City, the parties will: 6.1.1 Notice and Copies: Provide the other party with written notice of such state or federal restriction, provide a copy of such regulation or policy and statement of conflict with the provisions of this Agreement. 6.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation. · 1 I 6.2 Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled for hearing before the City Council. Ten days' written notice of such hearing will be given, pursuant to Government Code Section 65091 and 65094. The City Council, at such hearing, will determine the exact modification or suspension which shall be necessitated by such federal or state law or regulation. Property Owner, at the hearing, will have the fight to offer oral and written testimony. Any modification or suspension will be taken by the affn:mative vote of not less than a majority of the authorized voting members of the City Council. 6.3 Cooperation in Securing Permits. The City shall cooperate with the Property Owner in the securing of any permits which may be required as a result of such modifications or suspensions. ARTICLE 7 - Annual Review 7.1 City and Land Owner Responsibilities. City will, at least every 12 months during the term of this Agreement, review the extent of good faith substantial compliance by Property Owner with the terms of this Agreement. Pursuant to Government Codc Section 65865.1, Property Owner will have the duty to demonstrate its good faith compliance with thc terms of this Agreement at such periodic review. Property Owner will be deemed to have satisfied its duty of demonstration when it presents evidence on its good faith and substantial compliance with the major provisions of Article 3 of this Agreement. Either party may address any requirement of this Agreement during the review. However, ten days' written notice of any requirement to be addressed will be made by thc requesting party. If at the time of review an issue not previously identified in writing is required to be addressed, thc review at the request of either party will be continued to afford sufficient time for analysis and preparation. 7.2 Opportunity to be Heard. Upon written request to City by Property Owner, thc Property Owner will be permitted an opportunity to be heard orally and/or in writing at a noticed public hearing regarding its performance under this Agreement. 7.3 Information to be Provided Property Owner. The City will, to such an extent as is practical, deposit in the mail to Property Owner a copy of staff reports and related exhibits concerning contract performance a minimum of ten calendar days prior to an such review or action upon this Agreement by the Planning Commission or the City Council. ARTICLE 8 - Miscellaneous Provisions 8.1 Rules of Construction. The singular includes the plural and the neuter gender includes the masculine and the feminine. 8.2 Severability. Thc parties hereto agree that thc provisions arc severable. If any provision of this Agreement is held invalid, the remainder of this A~ccment will be effective and wilt remain in full force and cffect unless amended or modified by mutual consent of the parties. 8.3 Entire A~reement~ Waivers and Amendments; Regulatory Agreement to Control. Except for the Regulatory Agreement, this Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Notwithstanding any provision in this Agreement to the contrary, so long as the Regulatory Agreement is in effect, the terms of the Regulatory Agreement shall control with respect to the Very Low Income Apartments. Neither this Agreement nor any provision hereof may be amended, modified, waived, or discharged except by an instrument in writing executed by the party against which enforcement or such amendment, waiver, or discharge is sought. 8.4 Capacities of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and eapacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 8.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the Federal or State courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. IN VOTNESS WHEREOF the parties hereto have caused this agreement to be executed as of the day and year fn:st whtten above. IPMG, INC., A CALIFORNIA CORPORATION CITY OF CHULA VISTA, a mtmicipal corporation of the State of California Shirley Horton, Mayor ATTEST: Susan Bigelow, City Clerk APPROVED AS TO FORM: John M. Kaheny, City Attorney I0 STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) On before me, , Notary Public, personally appeared ~ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) On before me, , Notary Public, personally appeared ., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC E×ItIBIT A LEGAL PROPERTY DESCRIPTION All that certain real property situated in the City of Chula Vista, County of San Diego, State of California, described as follows: Parcel 1: An individual 38/40 interest in and to Lot 1 of CHULA VISTA TRACT 79-11, in the City of Chula Vista, County of San Diego, State of California, according to Map therof No. 9362 Filed in the office of the County Recorder of San Diego County, September 18, 1979. Excepting therefrom the following: (A) Living units as shown upon the Condominium Plan of PALO DEL AMO recorded on September 18, 1979, Recorder's File No. 79-390250 and re-recorded September 27, 1979 as File Page No. 79-404157 of Official Records of San Diego County. Parcel 2: Living Units 54-1, 54-2, 54-3, 54-4, 54-5, 54-6, 54-7, 54-8, 64-1, 64-2, 64-3, 64-4, 64-5, 64-6, 64-7, 64- 8, 74-1, 74-2, 74-3, 74-4, 74-5, 74-6, 74-7, 74-8, 84-1, 84-2, 84-3, 84-4, 84-5, 84-6, 84-7, 84-8, 94-1, 94- 2, 94-3, 94-4, 94-5, 94-6, 94-7, and 94-8 as shown upon the Condominium Plan above referred to. EX~IIBIT B City Council Resolution to be attached. EXItIBIT C Design Review Resolution to be attached. EXHIBIT D SUPPLEMENTAL RENTAL APPLICATION The rental unit for which you arc applying has received governmental assistance under programs to encourage more affordable housing. As a result, the unit carries a rent level restriction and is restricted to occupancy by very low, Ic, w c,n~ low and moderate income households. The information required on this form is necessary to determine you income eligibility to occupy the unit. You must report all household income. Information provided will be confidential and not subject to public disclosure pursuant to State Government Code Section 6254(h). 1. Rental Unit Address 2. Applicant Name 3. Other Household Members 4. Total Current Annual Household Income from all Sources: TOTAL $. Detail: Household Member Income Source 5. Total Gross Annual Household Income shown on most recent Federal Tax return (attach copies of most recent Federal Tax returns for all household members receiving income. Include other verification of income not appearing on tax forms.) TOTAL $ APPLICANT'S STATEMENT I certify, under penalty of perjury, that the foregoing information is true and correct to the best of my knowledge. I understand that any misrepresentation of the information contained herein may be cause for eviction. Signature Date Applicant OWNER'S STATEMENT Based on the foregoing in£ormation, I certify, under penalty of perjury, that the applicant is eligible to occupy this restricted a££ordable unit. Eligibility is based on finding that the applicant household's current annual income is $. and does not exceed the current maximum household income of$ allowed under the terms of a Housing Cooperation Agreement with the City of Chula Vista regarding this residential development. Name Title Signature Date Owner's Certification I am the owner or owner's representative for an affordable housing development in the City of Chula Vista, which is bound by a Housing Cooperation Agreement with the City. I certify under penalty or perjury that the attached rent roll for affordable units at my project is true and correct to the best of my knowledge and complies with the terms and conditions stipulated in the Housing Cooperation Agreement, or any agreement that implements the same, with the City of Chula Vista. Nanle Title Signature Date EXHIBIT 4 KINGSWOOD MANOR SUMMARY OF COMMENTS The following is a summary of comments received from neighboring property owners and residents: · Enough density in area with numerous multifamily housing surrounding a few blocks of single family homes. · On street parking along Kingswood & Tobias already heavy on weekends · Conflicts between the significant number of children in the area because of the multifamily housing and schools and vehicular traffic · Orientation of new proposed buildings would give apartment residents view of adjacent neighbor's backyards and bedroom windows · Lack of strong on-site property management · Upkeep of property · Already experiencing problems in the neighborhood. More people multiply the problems. o Loitering o Drug Activity o Graffiti o Noise o Litter In response to the comments received regardin9 the need for more parking on-site and the lack of sufficient on street parking, the developer redesigned their odginal proposal by increasing on-site parking from their original proposal of 100 total spaces to 107 spaces. The developer is proposing additional parking spaces for the eastern parkin9 lot located along Tobias Drive. The additional parking is created by eliminating the existing open space area between the parking and the adjacent private residences and extending the parking into this area. It has been noted by neighboring residents that the existing trees, other shrubbery, and poor lighting in this open area provides a conducive environment for loitering and other illegal activities in the evening hours. Many residents voiced their concerns regarding the high volume of traffic in the area and the presence of children. The City has received correspondence from residents of this neighborhood in the past. Staff completed a traffic analysis of the project and concluded that the increased vehicles and traffic generated by the construction of ten additional dwelling units is an incremental increase and no significant traffic concerns are anticipated. To improve visibility at the Kingswood and Tobias Drive intersection, Traffic Engineering Division painted a red curb on the northeast corner of this intersection adjacent to the existing fire hydrant and at the driveway of the project. To prevent motorists from driving across SDG& E park and entering Klm Place on the south side of the park as a means to access Orange Avenue, Traff'~c Engineering Division also placed a "Road Closed" sign at the end of First Avenue and at Klm Place. Based upon the pdvacy and view concems raised by residents, the applicant is now proposing to odent the new buildings with their front entrances and windows facing east-west; thereby minimizing the number of windows with direct views to the adjacent private residences. Neighbors of the project also had concerns over the noise level of children playing on the property and from guests and residents unable to enter the parking lots during those hours when the parking gates are closed, late evening and eady morning hours. To address these concerns, the developer has agreed to conditions placed on the project by the Planning Commission. These conditions include 1) Build a masonry wall/fence along that portion of the property line directly behind the pool and play area; and 2) Install an intercom or other similar system for both the east and west parking lot gates prior to issuance of the building permit(s) for the project to enable guests or residents to more readily access these parking areas. Kingswood Manor Summary of Comments Page 2 The majority of the concerns of the neighboring residents and property ownem centered on the lack of strong management, upkeep of the property, and the number of problems currently existing within the neighborhood. Pdor to the submittal of the proposed project, the owner of Kingswood Manor was in the process of certifying for participation in the City of Chula Vista's Cdme Frae Multi-Housing Program. This Program is designed to help tenants, owners and managers of rental properh/keep drugs and other illegal activity off their property. It is anticipated that the project's participation in this Program will facilitate strong property management, eviction of problem tenants, screening of applicants, and maintenance of the property. Kingswood Manor has recently completed full certification under this program, CITY OF CHULA VISTA MINUTES SPECIAL HOUSING ADVISORY COMMISSION Wednesday December 15, 1999 Housing Conference Room 3:30 p.m. Legislative Building CALL TO ORDER/ROLL CALL - 3:35 p.m. PRESENT: Chair Vicki Madrid, Members John McCann, J.C. Clayton, Rosa Lopez- Gonzalez, Theresa Ahamed, Barbara Worth ABSENT: Fred Dufresne STAFF:-:,~_ Community Development Specialist II Atwood, Community Development I Hines, Assistant City Attorney Googins, Administrative Secretary Hernandez EX-OFFICIO: Virginia Moore (Absent) GUEST: Mr. Karl Higgins, Higgins & Associates 1. MSC (McCann/~North} to approve the October 27, 1999 minutes {6-0-Dufresne absent), 2. LEASE PURCHASE PROGRAM - Ms. Atwood stated that she brought this item to the Commission back in August, at which time the Commission conditionally approved the program with the understanding that a representative from the program would come in and give a presentation. Ms. Atwood introduced Mr. Karl Higgins from Higgins & Associates to provide up-to-date information on the Lease Purchase Program. Mr. Higgins gave a brief summary of the program. He indicated that this Lease Purchase Program was created approximately two years ago and is designed for residents who can afford to make a monthly principal and interest payment on a home, but can't afford a down payment. He indicated that this program consists of a Joint Powers Authority (JPA) being created by participating cities and upon creation of the JPA, the authority would apply for tax-exempt bonds. The bonds would be used to pay the down payment and closing costs of each participant. A resident would pay a 1% administrative fee to participate in the program. Mr. Higgins indicated that the 1% could be a gift from the seller or a relative. The homebuyer enters a three-year lease and makes monthly payments to the program's non-profit corporation, which holds the title to the home. In conclusion of the three-year period, the title of the property is transferred to the homebuyer. The homebuyer would then be free to re-finance the property or take out a second or whatever the homebuyer chooses to do. Mr. Higgins indicated that the financing of the Lease Purchase Program incorporates the use of tax-exempt bonds and would not place any fiscal obligation or indebtedness on the City of Chula Vista as result of the bond financing. He indicated that by adding this additional program to the City, it could increase home ownership in the community. He concluded that this program would be an excellent program to implement within the Chula Vista community by providing down payment and c(osing cost assistance to potential homebuyers who have the ability to support making house payments. Additionally, the Lease Purchase Program will blend nicely with other programs currently being offered by Chula Vista. Member Clayton asked if a potential homebuyer needs to be pre-qualified. 1 Mr. Higgens responded yes. He mentioned that if at some point during the course within the three- year period the homebuyer's credit dips, then the JPA would re-evaluate the homebuyer's credit again because the JPA wants the potential homebuyer to become homeowners. If the homebuyer's credit has been impacted, these loans have PMI on them. The PMI provider provides, at no cost to the City, homebuyer credit counseling. If needed, the JPA can extend the lease by 90 days or six months so the homebuyer can successfully execute the lease option. Attorney Glen Googins stated that basically each locality could customize the program to suite its own housing needs. Mr. Higgens responded yes, that is correct. Attorney Glen Googins expounded on the fact that the Lease Purchase Program can basically be used anywhere in the City of Chula Vista, and inquired if it expands beyond that in terms of median income qualifications and household size. Mr. Higg~s responded that the City could go up to 140% of the area median income. Ms. Atwood indicated that staff would bring this item back to the Housing Advisory Commission requesting input for the guidelines for this program. Ms. Atwood stated that staff wants to target this program for people who actually need the program. She added that there would be different guidelines per each jurisdiction depending on their needs. Mr. Higgens indicated that the Building Industry Association in San Diego and the North County Association of Realtors has endorsed the Lease Purchase Program. Member Clayton asked who would take responsibility during the first three years for problems with the property. Mr. Higgens responded that Joint Powers Authority would be responsible. Chairman Madrid inquired that if a potential homebuyer picked out a house that they were interested in and requested some improvements, would that be possible. Mr. Higgens responded yes. The current owner can make the improvements and raise the purchase price of the house by the cost of the improvements. The potential homebuyer would then enter into a contract to purchase the home with a new purchase price. Another option is that the City can rehabilitate the home and increase the purchase price by adding the home improvement costs which can be folded into the Lease Purchase Program. Member Clayton indicated that there is a program called EEM Mortgage that SDGE is providing. The way the program works is that if a homebuyer wants to put in $6,000 worth of energy efficient items into the property, it does not affect the potential homebuyer's ratios. SDGE have their own inspectors that go out and inspect the homes for faulty furnaces, check out air ducks, etc., and give the homebuyer an idea of how much their savings would be if such items were replaced, repaired, or just cleaned. All items have to qualify as energy efficient items. Member Clayton suggested that maybe this program can roll right into the Lease Purchase Program. Ms. Atwood thanked Mr. Carl Higgens for his presentation. Member Clayton made a comment from a realtor's point of view and indicated that since Chula Vista is one of the communities that require a business license to operate in the City, she suggests that local realtors' should not be charged to be educated on the Lease Purchase Program. 2 Chairman Madrid suggested to staff that a presentation to the Board of Realtors be made on the various home buying programs that the City of Chula Vista offers. Member McCann indicated that the Lease Purchase program sounds like a real good program with minimal risk, MSC (McCann/VVorth) to move forward with the Lease-to-Own Program (6-0-1 Dufresne absent). 3. COMMUNITY DEVELOPMENT BLOCK GRANT AD-HOC COMMITTEE PROCESS - Ms. Atwood indicated that in approximately two months, every year the Community Development Housing Division begins the Community Development Block Grant (CDBG) program process. Incorporated within this process is the solicitation of volunteer members from various City Commissions to form a CDBG Ad-Hoc Committee to participate in reviewing the CDBG funding. This process is needed to satisfy HUD's requirement citizen's participation process. Every year it is becoming more difficult finding Commission members to volunteer for the Ad-Hoc Committee due to time constraints and other reasons. Therefore, staff is recommending that this process be -elimina~. In lieu of the Committee process, staff recommends holding community meetings to provide the opportunity for Chula Vista residents to participate and comment on how their federal tax dollars are being allocated. In addition, HUD highly recommends this type of community meeting process to involve citizen participation in the preparation of the Annual Plan and Consolidated Plan. Ms. Atwood indicated that the City's ending their previous five-year Consolidated Planning process and starting the new Consolidated Plan for the next five years 2000-2005, and would like to incorporate this new process into the document. She added that staff has identified three sites that would be appropriate for such meetings: South Chula Vista Library which would represent the western portion of the City along with the Montgomery Area; Cordova Village which is located in Rancho del Rey in the eastern portion of the City; and City Hall. In addition to the three community meetings, a formal Public Hearing will be held allowing the public, non-profit organizations, and other community organizations to present their comments to the City Council and staff. Chairman Madrid indicated that in the past, the Ad-Hoc Committee members spent a lot of time reviewing the CDBG applications to make funding recommendations. She stated that her concern is that if staff takes this process out to the community, citizens may not have previous experience on funding recommendations, and in addition, may not show up to the community meetings. If no one shows up to the meetings, who would make the decisions as to how the money should be spent. If that would happen, Council would have ail the pressure from the non-profits indicating to them why they need the funding. Chairman Madrid stated that this process needs a workshop with people who have experience. Ms. Atwood responded that the Ad-Hoc Committee viewed the public service portion only. As a courtesy, the Housing Advisory Commission was a permanent member of the Ad-Hoc Committee so that the Housing Advisor,/ Commission could review the housing related proposals. Ms. Atwood stated that regarding the public services category, she mentioned that she is very involved with the financial aspects whether agencies are providing their quarterly reports on time and as well as doing on-site audits. She indicated that although there is not going to be a committee process reviewing these proposals, there would be a staff person who ultimately responds to these people and reviews every aspect of their program. The proposals go through internal review and then they go forward to City Council. MSC (Clayton/Lopez-Gonzalez) to approve the elimination of the CDBG Ad-Hoc Committee process (6-0-1 Dufresne absent). 4. PEAR TREE MANOR APARTMENTS - Ms, Atwood indicated that Chelsea Investment Corporation submitted a proposal to acquire and rehabilitate a 119-unit apartment Fomplex called Pear Tree Manor. Staff has reviewed Chelsea's most recently submitted pro forma indicating an approximate financing gap of $1,387,152. In order to make this acquisition and rehabilitation project feasible, staff is recommending that the Redevelopment Agency conditionally approve providing financial assistance in the amount of $1,387,152 for this project. Chairman Madrid asked where the resources were coming from. Ms. Atwood responded that the funds are coming from the Low-Mod 20% Set-Aside Fund. MSC (Lopez-Gonzalez/McCann) to approve the acquisition and rehabilitation of Pear Tree Manor Apartments {119 unit complex) (6-0-1 Dufresne absent). 5. KINGSWOOD MANOR - Ms. Hines gave a brief summary of this project. The project site is located at 54-94 Kingswood Drive, just west of Hilltop Drive. The existing property is currently developed with five two story buildings, each building housing eight dwelling units, with 100 parking spaces provided. Ms. Hines indicated that the applicant is proposing the development of an additionat~t~ en units for a total of 50 apartment units (all three-bedroom units). The applicant is requesting under State Density Bonus Law a twenty percent (20%) increase in their density so that the applicant can add ten units onto the site and all ten new units will be affordable to lower income households. In addition to that, under State Density Bonus Law the applicant is requesting additional incentives, elimination of the guest parking requirement, a 50% reduction in the open space requirement, and 21% of the required parking as compact spaces. The applicant is requesting these incentives because it is an existing development and without these additional incentives, the applicant cannot add the ten new units. Member Worth asked if some of the tenants would have to park on the street. Ms. Hines responded no, there has been a survey done of the parking facility and the usage. The outcome of the survey showed that the current tenants are parking at 1.5 cars per unit. Ms. Hines indicated that in terms of the open space requirement, the 50% reduction is being offset by additional improvements to the property, by adding an additional trash collection area, children's play area, and redesign of the parking area to accommodate 103 vehicles. Ms. Hines indicated that there is no financial assistance being requested. Ms. Hines stated that this project would continue to be Iow income for 30 years if the Housing Advisory Commission approves the density bonus for this project. Staff's recommendation is for the Housing Advisory Commission to approve a 20% density bonus to facilitate the construction of a maximum of ten units for an existing 40 multi- family residential development known as Kingswood Manor. MSC (Madrid/Worth) Commission approves staff's recommendation for Kingswood Manor and add an addendum that the owner of Kingswood Manor participate in the Crime-Free Multi-Family Housing Program (6-0-1 Dufresne absent). 6. SALT CREEK VILLAS - Ms. Hines gave a brief summary on this project. She mentioned that staff has received a request from Chelsea Investment Corporation for financial assistance in the amount of (;1,500,000 to devetop Salt Creek Villas, located west of the Olympic Training Center within the EastLake II and III subdivision of eastern Chula Vista. The development envisions 150 apartment units for rental to Iow and moderate income households. Ms. Hines indicated that the $1,500,000 equates to about 910,000 per unit. Member Worth asked how many bedrooms per unit. Ms. Hines responded 24/lbr; 76/2BR; and 50/3BR units. Additionally the site is actually for 300 apartment units. Only 150 are being development as affordable housing and the balance of 150 will be market rate housing. This provides a mix of incomes within the same parcel of property. MSC (Worth/Madrid) to accept the Salt Creek proposal (6-0-1 Dufresne absent). 7. STAFF REPORTS - Ms. Atwood mentioned that she appreciates the Commission's support on approving/supporting projects that have been brought before this Commission. 8. MEMBERS COMMENTS - J.C. Clayton stated that she would like to bring up the possibility of getting more information to the Board of Realtors on first time homebuyer programs. She suggested that maybe a staff member can come to a breakfast meeting and make a presentation on the different programs the City offers and where the affordable housing is being built so the Board Members can disclose this information to future home buyers. 9. ADJOURNMENT - 5:05 p.m. to the next scheduled meeting of January 26, 2000. l~ ,: , 1'L i. ~ . Reco~-der, Alicia Hern~nde'z