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HomeMy WebLinkAboutAgenda Packet 2000/11/07 CITY COUNCIL AGENDA November 7, 2000 4:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CHY OF CHUl VISYA 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 VVVVVVVVVV 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 VVVVVVVVVVV AGENDA I declare under penalty of perjury that I am employed by the City of Chula Vista In the Office of the City Clerk and that I posted this document on the bulletin board according to Brown Act requirements. i)ated 11-3-00 Signed~ fU{tuf 4:00 P.M. 1 I ~ NOVEMBER 7, 2000 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 . PRESENTATION OF A PROCLAMATION TO THE EMPLOYEE OF THE MONTH, PATRICIA WAGNER, BOOKSTORE MANAGER, CHULA VISTA NATURE CENTER CONSENT CALENDAR (Items 1 through 6) 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, plea5e 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. APPROVAL OF MINUTES OF OCTOBER 23, 2000 Staff recommendation: Council approve the minutes. 2 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES ONE AND FIVE]) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES ONE AND FIVE]), IMPROVEMENT AREA "A" C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) The Otay Ranch Company submitted a letter dated September 5, 2000 requesting the City to conduct annexation proceedings for an area commonly known as Parcel 35A (17.06 acres) into Community Facilities District No. 97-1 (CFD No. 97-1), Community Facilities District No. 97-2 (CFD No. 97-2) and Community Facilities District No. 99-1 (CFD No. 99-1). Approval of the annexation of Parcel 35A into CFD No. 99-1 will be a separate item on this agenda. Adoption of the resolutions will initiate proceedings to annex Parcel 35A into CFD No. 97-1 and CFD No. 97-2. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 3 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES ONE WEST AND TWO]) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES ONE WEST AND TWO]) C. RESOLUTION OF THE CItY COUNCIL OF THE CItY OF CHULA VISTA DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES SIX AND SEVEN]) D. RESOLUTION OF THE CItY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES SIX AND SEVEN]) McMillin and the Otay Ranch Companies are currently processing a lot line adjustment parcel map in order to clearly define their ownership within Villages Two and Six of Otay Ranch. Both developers have also requested that the City initiate proceedings for adjusting the boundaries of the existing Community Facilities Districts 98-1 and 98-2 to be consistent with the land swap. The City has retained the services of Best Best and Krieger, LLP as legal counsel to provide assistance during the proceedings. The legal counsel has recommended the following procedure for accomplishing those changes: 1) Annexing the land swapped parcels to the respective district, and 2) recording the corresponding notices of special tax lien cancellation. Adoption of the resolutions will initiate the annexation proceedings by declaring its intention to annex the land swapped parcels to the respective CFD and setting the public hearing for December 19, 2000. (Director of Public Works) Staff recommendation: Council adopt the resolutions. Page 2 - Council Agenda 11/07/2000 4 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILLAGES ONE & FIVE AND VILLAGE ONE WEST) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CERTIFYING AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 99-2 (OTAY RANCH SPA ONE - VILLAGE ONE WEST) The Otay Ranch Company submitted a letter dated September 6, 2000 requesting the City to conduct annexation proceedings for the last remaining out-parcel within Village One West, Parcels 1 & 2 as indicated on the Future Annexation Exhibit recorded in Book 34 at Page 39 on July 6th, 2000, into the Community Facilities District No. 99-2 (CFD No. 99-2). Community Facilities District No. 99-1 (CFD No. 99-1) will be annexing certain territories within both Village One West and Village Five. These territories are described as the three out-parcels (approximately 32 acres) within Village One West and Parcel 35A (17 acres) within Village Five. Adoption of the resolutions will initiate proceedings to annex certain territories into CFD Nos. 99-1 and 99-2. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDiNG CONTRACT FOR THE HALECREST DRIVE IMPROVEMENTS BETWEEN HALE STREET AND TELEGRAPH CANYON ROAD (STM-342) TO SOUTHERN CALIFORNIA UNDERGROUND CONTRACTORS, INC., IN THE AMOUNT OF $78,475 At 2:00 p.m. on Wednesday, October 18, 2000, the Director of Public Works received sealed bids for the Halecrest Drive improvements project (STM-342). This project provides for the construction of four pedestrian ramps and storm drain improvements at Halecrest Drive between Hale Street and Telegraph Canyon Road. The work also includes all labor, material, equipment, transportation, protection of existing improvements and traffic control necessary for the project. (Director of Public Works) Staff recommendation: Council adopt the resolution. 6A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SELECTION OF VOLLMER ASSOCIATES, LLP TO CONDUCT A "PEER" REVIEW OF INFORMATION USED BY CALIFORNIA TRANSPORTATION VENTURES (CTV) IN MAKING TRAFFIC AND REVENUE PROJECTIONS FOR THE SR-125 PROJECT, AUTHORIZING THE CITY 'MANAGER TO NEGOTIATE A CONTRACT FOR THIS PURPOSE AND WAIVING THE CONSULTANT SELECTION PROCESS AS 12MPRACTICAL B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SELECTION OF INFRASTRUCTURE MANAGEMENT GROUP, INC. TO CONDUCT A FINANCIALLY-BASED APPRAISAL OF THE SR-125 FRANCHISE, AUTHORIZiNG THE CITY MANAGER TO NEGOTIATE A CONTRACT FOR THIS PURPOSE AND WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL 11/07/2000 Page 3 - Council Agenda C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $200,000 FROM THE INTERIM SR-125 DEVELOPMENT IMPACT FEE FUND FOR A NEW CAPITAL IMPROVEMENT PROJECT, SR-125 FRANCHISE REVIEW, STM348 (4/5THS VOTE REQUIRED) The Council recently authorized staff to enter into discussions with consultants to conduct a "peer" review of information used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projections for the SR-125 toll road facility. Further, Council also authorized staff to enter into discussions with a financial consultant to conduct a financially-based appraisal of the SR-125 franchise. Smith & Kempton, the City's transportation consultant, was requested to solicit proposals from qualified consultants to accomplish these tasks. Smith & Kempton has completed this task and presented its recommendations to staff. Staff conducted interviews with two respondents for the financial appraisal activity. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 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. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussion and deliberation by the Council, staff, or members of the public. The items will be considered individually by the Council, and staJf recommendations may, in certain cases, be presented in the alternative. 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. 7. CONSIDERATION OF ADOPTION OF A RESOLUTION WAIVING THE BiD REQUIREMENTS AND AWARDING CONTRACT FOR CITYWIDE STREET SWEEPING SERVICES TO CANNON PACIFIC SERVICES FOR THE PERIOD OF NOVEMBER 1, 2000 TO APRIL 30, 2001, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT On June 24, 1997, Council approved a contract with R. F. Dickson, Inc. to provide citywide street sweeping services. The agreement provided for three years of street sweeping service (July 1, 1997 through June 30, 2000), with the option of extending the agreement for up to two additional years. The City had advertised and requested bid responses for a three-year contract, with two one-year renewable options. Four bids were Page 4 - Council Agenda 11/07/2000 received on May 13, 1997. R.F. Dickson Company, Inc. was the low bidder, and Cannon Pacific Services was the second lowest bidder. Staff and R.F. Dickson have been unable to reach an agreement on terms for the one-year option authorized under the current agreement, and Dickson has given 30 days notice, effective November 1, 2000. Staff is requesting that Council authorize the proposed agreement with Cannon Pacific Services for a six-month extension, retroactive to November 1, 2000. The additional time will provide staff the time needed to develop a new request for proposal. (Special Operations Manager) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BID REQUIREMENTS AND AWARDING CONTRACT FOR CITYWIDE STREET SWEEPING SERVICES TO CANNON PACIFIC SERVICES FOR THE PERIOD OF NOVEMBER 1, 2000 TO APRIL 30, 2001 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 8. CITY MANAGER'S REPORTS A. Scheduling of meetings. 9. MAYOR'S REPORTS A. Ratification of appointment to the Parks and Recreation Commission - Larry Perondi. 10. COUNCIL COMMENTS CLOSED SESSION 11. CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 City Negotiator: City Manager Employee organizations: Chula Vista Employees Association, Chula Vista Police Officers Association, International Association of Firefighters ADJOURNMENT to the Regular Meeting of November 14, 2000, at 6:00 p.m. in the Council Chambers. 11/07/2000 Page 5 - Council Agenda MINUTES OF AN ADJOURNED REGULAR MEETiNG OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OCTOBER 23, 2000 4:00 P.M. Mayor Horton called to order an Adjourned Regular Meeting of the City Council of the City of Chula Vista at 4:20 p.m. in the Council Conference Room, located in the Administration Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Davis, Moot, Padilla, Salas, and Mayor Horton ABSENT: Councilmembers: None ALSO PRESENT: City Clerk Bigelow CLOSED SESSION 1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54954.5 (e) · City Clerk No action was taken by the Council. ACTION ITEMS 2. INTERVIEWS FOR PARKS AND RECREATION COMMISSION VACANCY (1) Council interviewed the following applicants for the Parks and Recreation Commission vacancy: Mary Jo Buettner Susana Liston Larry Perondi ACTION: Mayor Horton moved to appoint Larry Perondi to the Parks and Recreation Commission. Councilmember Salas seconded the motion, and it carried 5-0. ORAL COMMUNICATIONS There were none. ADJOURNIdENT At 5:35 p.m., Mayor Horton adjourned the meeting to an Adjourned Regular Meeting at 6:30 p.m. in the Council Conference Room and thence to the Regular Meeting of October 24, 2000. Respectfully submitted, Susan Bigelow, CMC/AAE, City Clerk MINUTES OF AN ADJOURNED REGULAR MEETiNG OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OCTOBER 23, 2000 6:30 P.M. Mayor Horton called to order an Adjourned Regular Meeting of the City Council of the City of Chula Vista at 6:35 p.m. in the Council Conference Room, located in the Administration Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Davis, Moot, Padilla, Salas, and Mayor Horton ABSENT: Councilmembers: None ALSO PRESENT: City Manager Rowlands, Senior Assistant City Attorney Moore, City Clerk Bigelow 1. CONSIDERATION OF SITES FOR THE NEW POLICE FACILITY Mayor Horton stated that due to the number of citizens who have spoken in opposition to the use of Friendship Park for the new police facility, she believed that staff and the consultants should focus their attention on alternative sites. She then made the following motion. ACTION: Mayor Horton moved to eliminate Friendship Park from further analysis and to direct staff to look at the other sites which have been previously evaluated and which will accommodate the facility and program as has been described by the consultants; and for staff to reevaluate the sites already considered and report back with recommendations utilizing the relevant criteria previously identified, which includes proximity to the Civic Center and the Third Avenue/downtown corridor, consolidation of government services, and cost. Councilmember Padilla seconded the motion. Deputy Mayor Moot stated that it would be poor fiscal policy to eliminate Friendship Park from future consideration at this point in the process. He supported focusing on an alternate site at this time but asked the Council to keep its options open so that the costs of other sites could be compared to those of Friendship Park. Councilmember Padilla stated that the Council needs to consider the better judgment of the community, and the community wants Friendship Park preserved as passive parkland. Councilmember Davis stated that the criteria of time mid money were used to justify the taking of the park, and there are other criteria of importance to the community. She supported the proposed motion. Page I - Council Minutes 10/23/00 Councilmember Salas mentioned that she had stated from the beginning that she would not support the use of Friendship Park unless the City could mitigate the loss, and there is no place in the urban core in which to do so. Mayor Horton commented that the proposed motion would provide direction to staff and the consultants to seek an alternative site close to the Civic Center that will meet the needs of the Police Department and be acceptable to the community. She then called for a vote on the motion. The motion carried 4-I, with Deputy Mayor Moot opposing. ORAL COMMUNICATIONS There were none. ADJOURNMENT At 6:52 p.m., Mayor Horton adjourned the meeting to the Regular Meeting of October 24, 2000. Respectfully submitted, Susan Bigelow, CMC/AAE, City Clerk Page 2 - Council Minutes 10/23/00 COUNCIL AGENDA STATEMENT Item Meeting Date 11/7/00 ITEM TITLE: A. Resolution of the City Council of the City of Chula Vista, California adopting an annexation map showing property to be annexed to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - Spa One, Villages 1 & 5]) B. Resolution of the City Council of the City of Chula Vista, California, declaring its intention to authorize the annexation of territory to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - Spa One, Villages 1 & 5]), Improvement Area "A" C. Resolution of the City Council of the City of Chula Vista, California, adopting an annexation map showing property to be annexed to Community Facilities District No. 97-2 (Preserve Maintenance District) D. Resolution of the City Council of the City of Chula Vista, California declaring its intention to authorize the annexation of territory Community Facilities District No. 97-2 (Preserve Maintenance District) SUBMITTED BY: Director of Public Works/z~// REVIEWED BY: City Manage (4/5ths Vote: Yes No X ) The Otay Ranch Company has submitted a letter dated September 5, 2000, (Exhibit A) requesting the City to conduct annexation proceedings for an area commonly known as Parcel 35A (17.06 acres) into Community Facilities District No. 97-1. In addition, Otay Ranch Company requested annexation proceedings for the three out-parcels within Village One West, the San Diego Waterline easement within Village One West and Village One, as well as Parcel 35A into Community Facilities District No. 97-2 (CFD No. 97-2) and Community Facilities District No. 99-1 (CFD No. 99-1). (Refer to Exhibits B and C - Annexation Maps) Approval of the annexation of Parcel 35A into CFD No. 99-1 will be taken as part of another action on tonight's consent calendar related to an annexation request for Community Facilities District No. 99-2. The action included in this agenda item is to initiate proceedings to annex Parcel 35A into the CFD No. 97-I and CFD No. 97-2. RECOMMENDATION: That Council: 1. Approve the resolution adopting the annexation map showing property to be annexed to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 & 5]), Page 2, Item Meeting Date:l 1/7/00 2. Approve the resolution declaring the intention to authorize the annexation of territory to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 & 5]), Improvement Area "A" 3. Approve the resolution adopting an annexation map showing property to be annexed to Community Facilities District No. 97-2 (Preserve Maintenance District), 4. Approve the resolution declaring the intention to authorize the annexation of territory to Community Facilities District No. 97-2 (Preserve Maintenance District). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In May/June of 1998, the City Council undertook proceedings to form and did form Community Facilities District No.'s 97-1 and 9%2. The purpose of CFD No. 97-1 is to provide a long term funding program for the operation and maintenance of the public landscaping improvements within the Otay Ranch SPA One. The purpose of CFD No. 97-2 is to provide a long-term management program for the Preserve Area's sensitive habitats, cultural and biological resources. Parcel 35A is a long slender piece of property running between McMillin Property and Otay ..~ Ranch Company from Otay Lakes Road south to R-28. This property has been mapped by Otay Ranch Company (ORC) to be incorporated into Village Five Phase 2 - Residential Areas R-25, R-26A, R-26B, R-27 and R-28, as well as the dedication of a linear open space/trail segment and a neighborhood park. On October 4, 2000 the City received a letter (Exhibit D) from Otay Ranch Company providing additional breakdown by Residential Areas for the additional units proposed to be constructed within Parcel 35A. Based on the adopted Special Tax Report, the budget and per unit allocations it appears that the additional 62 single family units will generate sufficient tax revenues to offset the anticipated maintenance costs related to the annexation of Parcel 35A. As explained in Exhibit D the anticipated revenues for the annexation area is $45,207 while the estimated maintenance cost for this area is $10,500. Parcel 35A developers and future residential units wilt be subject to the provisions of the adopted Rate and Method of Apportionments prepared for both CFD No.'s 97-1 and 97-2. (Refer to Exhibits E and F) The application of the Rate and Method of Apportionment will implemented by the "Special Tax Report" prepared for both districts. The three out-parcels and the San Diego waterline easement strip within Village One West has been incorporated into the revised Tentative Map for this planning area. These annexation parcels have been integrated into either the residential, multi-family or open space layouts. The proposed units within these annexation parcels will be reflected in the revised budget for each CFD. Based u.p_on the adopted "Special Tax Report" and the Rate and Method of Apportionment the pro. po_sed units wilLprnvid~ additinnal r~velllL~ for the operations and maintenance--6T'these ~listricts. Page 3, Item Meeting Date: 11/7/00 The developers and future residential units will be subject to the provisions of the adopted Rate and Method of Apportionment prepared for both CFD Nos. 97-1 and 97-2. Staff, the legal counsel, and the special tax consultant have reviewed the proposed methodology, allocation of units, square footage calculations, and consider these annexations ready for council approval. Resolutions There are four resolutions on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION ADOPTING AN/~XATION MAP showing property to be annexed to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 & 5]) The RESOLUTION DECLARING ITS INTENTION to authorize thc annexation of temtory to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 &5]), knprovement Area "A" The RESOLUTION ADOPTING AN ANNEXATION MAP showing property to be annexed to Community Facilities District No. 97-2 (Preserve Maintenance District) The RESOLUTION DECLARING ITS INTENTION to authorize the annexation of territory to Community Facilities District No. 97-2 (Preserve Maintenance District) Future Actions '~IA public hearing, preliminary findings and passing on protests, submitting the authorization for the levy of special taxes to the qualified electors are scheduled for the City Council meeting of December 12, 2000 at 6:00 pm. Fiscal Impact All costs related to these annexation proceedings for CFD No.'s 9%1 and 97-2 are being borne by the developers and the on-going administration will be funded entirely by the district. Exhibits: A. September 5, 2000 - Annexation request letter B. CFD No. 97-1 Annexation Map C. CFD No. 9%2 Annexation Map D. October 4, 2000 - Parcel 35A: Background letter E. Rate and Method of Apportionment - CFD No. 97-1 F. Rate and Method of Apportionment - CFD No. 97-2 H:\HOME~ENGINEERXAGENDA~Revised2 CAS - ROI Annex P35A.doc 11/1/00 12:36:05 PM II I lr September 5, 2000 Mr. John Lippitt Director of Public Works CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 RE: Parcel 35A Dear John: Parcel 35A is a 17.06-acre parcel located within Otay Ranch Village Five, between the eastern edge of McMillin's Lomas Verdes project and Otay Project L.P.'s Village Five ownership. This property was not included in the boundaries of the CFDs in place over, the balance of Village Five. We are currently negotiating to purchase this property end develop it in conjunction with the second phase of Village Five. Please initiate the process to annex this parcel into City of Chula Vista CFD No. 97-1 (Open Space Maintenance), City of Chula Vista CFD No. 97-2 (Preserve Maintenance) and City of Chula Vista CFD No. 99-1 (Olympic Parkway Capital Improvements). We understand that these actions cannot be completed until we acquire Parcel 35A. However, we would like to have the documents prepared in order to complete this process in a timely manner. If you have any questions, please don't hesitate to contact Sincerely, THE~OTAY RANCIt COMPANY Ranie L. Hunter ~ Vice President cc: Greg Matson, MMS / October 4, 2000 THE OTAY RANCH COMPANY Mr. Lombardo DeTrinidad CITY OF CI-IULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 RE: Parcel 35A Annexation to CFD No. 97-1 Dear Lombardo: The following information is provided in response to questions raised at,.our September 28, 2000 meeting regarding the annexation of Parcel 35A into CFD No. 97-1. The following table provides unit/sf information for the lots within Parcel 35A. The unit information is based on the recently approved Village Five, Phase 2A Substantial. Conformity map. The table projects tax revenue based on the 2000-01 maximum tax rate for CFD No. 97-1. Neighborhood Units Lot Size Avg. SF Total SF 97-1 R-25 16 70xll 0 3350 53,600 16,063.92 R-26A 5 60x110 3138 15,6g0 4,702.2g R-266 8 55x100 2637 21,096 6,322.4~ R-27 15 50x85 2036 30,540 9,152.8~ R-28 18 46x75 1662 29,916 8,965.83 TOTAL 62 '150,842 $ 45,207.35 The following information reflects approximate cost figures and does not reflect reserves, 18% staff costs, cost increases since 1998 and other incidental costs. This estimate is intended to demonstrate that there will be sufficient tax revenues ($45,207.35) to off;set any additional costs to maintain facilities and landscaping associated with the annexation of Parcel 35A. The following additional expenses will be incurred upon annexation of Parcel 35A: Zone B 1.63 acres of open space slopes Water costs $2,687.87 Maintenance 7 025.00 Subtotal 9,713.17~ t Costs are based on the budget prepared during CFD No. 97-1 formation. 350 W. ASH STREET, SUITE 730, SAN DIEGO, CA 92101 PH: {619) 234-4050 FX: (&19) 234 4088 E MAIL: in¢o@otayranch.com Page Two October 4, 2000 Zone A Telegraph Canyon Channel 265.742 Telegraph Canyon Basin 490.323 Subtotal $756.06 TOTAL ESTIMATED COSTS $10,469.23 I have also attached a copy of the San Diego County Assessor's Map for parcel number 643-01-010. This map indicates that Parcel 35A does not extend into the Otay Lakes Road right-of-way. If you have any questions or need additional information, please don't hesitate to contact me. It is very important that we meet the schedule disenssed at our September 28th meeting, with Council approval anticipated either December 9t~ or January 9*. Please let me know if there have been any changes to this schedule. Sincerely, THE OTAY RANCH COMPANY Kanie L. Hunter Vice President Attachments cc: Greg Mattson, MMS See attached spread sheet prepared in 1998 during CFD No. 97-1 formation. See attached spread sheet prepared in 1998 during CFD no. 97-1 formation. Resolution 19106 Page 5 EXHIBIT A RATE AND METHOD OF APPORTIONMENT ANNUAL TAX A Special Tax shall be levied annually on land within Community Facilities District No. 97-~i (Open Space Maintenance District) of the City of Chute Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") through the application of the f~llowing procedures. All of the property within the District, unless otherwise exempted ~y law or the express provisions of the rate and method of _.=~portionment expressed below, shall be taxed to the extent and in the manner prDvided below. All Parcels within the District are assigned to Special Tax Area A In addition. certain Parcels are also assigned to Special Tax Area B based upon their location. A map of the Special Tax Areas is included as Exhibit B. The Special Tax which shall be levied upon each Parcel shall be the aggregate sum of the Special Tax for each Special Tax Area within which the Parcel is located. All Special Taxes applicable to Parcels shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, and the Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. Administrative Expenses means the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the Special Taxes) including the fees and expenses of its counsel. Any fees of the County related to the District or the collection of Special Taxes, an allocable share of the salaries of City staff directly related thereto, any amounts paid by the City from its general fund with respect to the District, and expenses incurred by the City in under~aking actions to foreclose on properties for which the Payment of Special Taxes is delinquent, and all other costs and expenses of the City related to the District. Building Square Foot or Square Footage means the square footage as shown on the Parcel's building permit(s), excluding garages or other structures not used as living space. ~ ~ ¢¢ ResoLution 19106 Page 6 City means the City of Chula Vista. Developed Parcel means Taxable Property for which a foundation building permit or other form of building permit has been issued as of March 1 of the preceding Fiscal Year. District means the Open Space Maintenance District - SPA.One (Villages l& 5) of the Community Facilities District No. 97-1 of the City of Chula Vista. Facilities means those improvements defined in Part I1 of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-1 of the City of Chula Vista. Fiscal Year means the t?eriod starting on July 1 and ending the following June 30. Maximum Special Tax means the maximum special tax that can be levied within CFD No..97-1 by the City Council in any Fiscal Year for each Parcel of Taxable Property. Non-Residential Uses shall include all Developed Parcels which are not zoned for Residential Uses including commercial, industrial, and community public facility (CPF) uses. Operating Fund means a fund that shall be maintained for each Special Tax Area within the District for any Fiscal Year to pay for the actual costs of maintenance, repair, and replacement of the Facilities, and the Administrative Expenses. Operating Fund Balance means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. operating Fund Requirement means for any Fiscal Year an amount for each Special Tax Area equal to the budgeted, costs of the mai.ntenance,, repair and replacement of the Facilities Which have been accepted and maintained by the District o¢ are reasonably expected to be .accepted and maintained.by the District during the current Fiscal Year plus the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego Resolution 19106 Page 7 County Assessor and wn~cn' ' ha~ been assigned a discrete ~a~ntl,yln~' '~ '~ ' ', number o:~ tn= _qual,z_d ,ax rolls of the County. Reserve Fund means a fund that shall be maintained for each Special Tax Area to provide necessary cash flow for operations and maintenance for the first six months of each Fiscal Year, working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Special Taxes and e reasonable buffer against large variations in annual special tax amounts. Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal,to up to 100% of the Operating Fund Requirement. Residential Uses shall include those residential uses as permitted in the City zoning ordinance. Special Tax means the special tax or special taxes actually levied within CFD No 97-1. Special Tax Area means one of the two specific areas comprising specific Parcels as shown in Exhibit B of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-1 of the City of Chula Vista. Special Tax Liability for any Fiscal Year is an amount determined for each Special Tax Area sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Fund to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, tess the Reserve Fund Balance. Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law, or which ara not classified or assigned to the Exempt Category as defined herein. Cateoories of Special Taxes Residential Category: The residential category includes each Developed Parcel within the District which is zoned for Residentiai Uses by the City ("Residential Category"). Resolution 19106 Page 8 · The Maximum Special Tax that may be levied within Special Tax Area A for Fiscal Year 1998/99 on each Developed Parcel assigned to the Residential Category shall be $0.0844 per Building Square Foot. · The Maximum Special Tax that may be levied within Special Tax Area B for the Fiscal Year 199B/1999 on each Developed Parcel assigned to the Residential Category shall be $0.1977 per Building Square Foot. Said Maximum Special Tax Rates shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget p, ubfished every January. Non-Residential Category The non-residential category includes all Developed Parcels in the District which are not zoned by the City for Residential Uses ("Non-Residential Category"). · The Maximum Special Tax that may be levied within Special Tax Area A for the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non- Residential Category shall be $1,143 per Acre (said amount to be levied pro rata for any portion of an Acre). · The Maximum Special Tax that may be levied within Special Tax Area B for the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non- Residential Category shall be $2,538 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax rates shall be increased or decreased 8ach Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose Resolution 19106 Page 9 set forth in the easement impractical, common areas, private streets and parks. and open space lots ("Exempt Category"). Vacant Land Category The vacant land category includes each Parcel of Taxable Prope,-ty assigned to the District not subject to a Special Tax under any other category described above ("Vacant Land Category"). The Maximum Special Tax which may be levied on each Parcel within the Vacant Land Category for Fiscal Year 1998/99 shall be the rates set forth in Table 1 below (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the"January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. TABLE 1 Vacant Land Categow Maximum Special Tax Rate per Acre Maximum Special Tax Area .Special Tax Rate Special Tax Area A $1,2.93/Acre Special Tax Area B $2,870/Acre Assionment to Cateoories of Soecial Taxes On or about July I of each year (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the District to the Residential Category, Non-Residential Category, Exempt Category, or Vacant Land Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levv and Aooortionment of Soecial Taxes The City shall determine the Special Tax Liability of each Special Tax Area in - each Fiscal Year on or about every July I (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel assigned to the Residential Category, Resolution 19106 Page 10 ~-~ Non-Residential Category, and Vacant Land Categ3ry within each Special Tax Area in the following order of priority: Step 1: Determine the maximum revenue which could be generated in each Special Tax Area by multiplying the total Building Square Footage of all Developed Parcels assigned to the Residential Category in each Special Tax Area by the Maximum Special Tax per Building Square Foot and adding to that the maximum Special Tax revenue which could be generated by multiplying the total Acreage of all Developed Parce!s assigned to the Non-Residential Category in each Special Tax Area by the Maximum Special Tax per Acre. Step 2: If the total Special Tax revenue as calculated in Step 1 for the Special Tax Area is graB, tar than the Special Tax Liability of such Special Tax Area, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total Special Tax revenue as calculated in Step 1 is less than the ""'. Special Tax Liability of such Special Tax Area, a Special Tax shall be levied upon each Parcel assigned to the Vacant Land Category. The Special Tax for the Vacant Land Category shall be calculated as the lessor of!' (i) The Special Tax Liability for each Special Tax Area, less the total of funds generated for all Parcels within that Special Tax Area under Step 1 above, divided by the total Acres for all Parcels assigned to the "Vacant Land Category" within that Special Tax Area. OR, (ii) the Maximum Special Tax rate for Parcels within that Special Tax Area... However, in the event it is .determined that the Special Tax Liability for Special Tax Area A includes delinquent Special Taxes from ParCels in the Vacant Land Category from the prior Fiscal Year, the City shall determine the amount of such delinquent Special Taxes that aros~ from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from each owner shall first be divided by the total Acres owned by such owner(s), and collected from the respective owner with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from Parcels in Resolution 19106 Page 11 the Vacant Land Category according to the procedure se':. forth in tn-: ~)receding paragraph Step 4: The total Special Tax for each Parcel shall be the sum Df the Special -axes for each Special Tax Area in which a Parcel is located. Resolution 19106 Page 12 Resolution 19110 Page 5 EXHIBIT A RATE AND METHOD OF APPORTIONMENT ANNUAL TAX A Special Tax shall be levied annually on each Parcel of land within the Preserve Maintenance District, Community Facilities District No. 97-2 of the City of Chula Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") through the application of the following procedures. All of the property within the District, unless oti~erwise exempted by law Dr the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. All Parcels within the District are included within either Improvement Area A or Improvement Area B. A map of the Improvement areas is included as Exhibit B. All Special Taxes applicable to Parcels be collected in the same manner and at the - same time as ordinary ad valorem property taxes, and Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or ff the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. Administrative Expenses means the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of its counsel, any fees of the County related to the District or the collection of special taxes, an allocable share of the salaries of City staff directly related thereto and a proportionate amount of the City's general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District, and all other costs and expenses of the City related to the District. Building Square Foot or Square Footage means the square footage as shown on a Parcel's building permit, excluding garages or other structures not used as living space. City means the City of Chula Vista. ~ ~ If7 Resolution 19110 Page 6 ~ Developed Parcel means Taxable Property for which other form of building permit has been issued as of March 1 of the preceding Fiscal Year. District means the Preserve Maintenance District Community Facilities District No. 97-2 of the City of Chula Vista. Final Map means a recorded Tract Map or Parcel Map. Fiscal Year means the period starting on July 1 and ending the foliowing June 30. Improvement Area means one of the two specific areas as shown in Exhibit B Ma×imum Special Tax ~eans the maximum special tax that can be levied within each Improvement Area within CFD No. 97-2 by the City Council in any Fiscal Year for each Parcel of Taxable Property. Non-Residential Parcels shall include each Parcel within the District which is zoned for other than Residential Uses by the City. Non-Residential Uses shall include all Developed Parcels which are not zoned for Residential Uses including commercial, industrial, and Community Public Facilities (CPF). Operating Fund means a fund that shall be maintained for each Improvement Area within the District for any Fiscal Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. Operating Fund Balance means the amount of funds in the Operating Fund for each Improvement Area at the end of the preceding Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount for each Improvement Area equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls "-" of the County. Preserve Operations and Maintenance means those activities defined in Part II A of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-2 of the City of Chuta Vista. Resolution 19110 Page 7 Preserve Operations and l~,aintenance Fund Requirement means for any Fie:al Year an amount equal to the budgeted costs for Preserve Operations and Maintenan:e plus a pro-rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. Residential Parcels shall include each Parcel within the District which is zoned for Residential Uses by the City. Residential Uses shall include those residential uses as permitted in the City zoning ordinance. Reserve Fund moans a fund that shall be maintainod for oach Improvoment Arco to provide necessary cash flow for the first six months of oach Fiscal Yoar, working capital to covor monitoring, maintonanco and repair cost overruns and delinquoncies that may ariso in conn.=ion with the collection of Special Taxes and a roasonable buffer against largo variations in annual spocial tax amounts. Reserve Fund Balance moans the amount of funds in the Reservo Fund at the end of the preceding Fiscal Yoar. Reseree Fund Requirement means an ~amount equal to up to 100% of the Operating Fund Requiromont for any Fiscal Year. Resource Monitoring Program moans those activities defined in Pad II B. of the Spocial Tax RepoA dated July 1, 1998 for Community Facilitios District No. 97-2 of the City of Chula Vista. Resource Monitoring Fund Requirement moans for any Fiscal Yoar an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. An Improvement Area's '?air share" shall be based upon the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. Special Tax means the special tax or special taxes actually levied within CFD No. 97-2 each Fiscal Year. _ Special Tax Liability for any Fiscal Year is an amount sufficient to pay the costs of an Improvement Area within the District equal to: (i) the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) the Reserve Fund Requirement, less the Reserve Fund Balance. D- llll Resolution 19110 Page 8 Tax Categories are those Categories 1, II and III described in the body hereof. Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to the law or which are not classified or assigned to the Exempt Category as defined herein. Cateoories of Soecial Taxes Category I Category 1 includes each Developed Parcel within the District. (Category I) The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 1998199 on each Developed Parcel shall be at the rates set fbrth in Table 1 below. For Residential Parcels the Special Tax shall be levied based upon Building Square Footage and for Non-Residential Parcels shall be levied based on Acreage. The Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. TABLE 1 Maximum Special Tax Category I Resource Operation & Monitoring Maintenance Residential Parcels $0.0049 per sq. ft. S0.01:)78 per sq. ft. Non-Residential Parcels $80.96 per Acre S128.53 per Acre Category II Category Il includes each Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Parcel (Category II). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 1998/99 on each Parcel In Cat~&gory I1 shall be as shown in Table 2 below (said amount to be levied pro rata for any portion of ""~ an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Resolution 191 i0 Page 9 Dudg_~ )ubiished _v~,y Capita Personal Income as Contained in the Governors ' =' = ~ January. TABLE 2 Maximum Special Tax Category II Resource Operation & Monitoring Maintenance $8D.96 per Acre $128.53 per Acre Category III Category I11 includes each Parcel of Taxable Property within the District not subject to a Special Tax bnder any other category ("Category The Maximum Special Tax which may be levied for Fiscal Year'1998/99 on Yaxable Property within Category 111 shalt be as shown in Table 3 below (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be _ increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal income as contained in the Govemods budget published every January. TABLE 3 Maximum Special Tax Category III Resource I Operation & Monitoring I Maintenance 551.21 per Acre I $81.30 per Acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). - Assianment to Cateaories of Special Tax On or about July 1 of each year, (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll), the City shall assign each Parcel within the District to. Category I, Category II, Category III or the Exempt Category. .......... i I1 il Resolution 19110 Page 10 ~'~ Parcels subject to levy shall be determined cased upon the records of the San Diego County Assessor. _L~vy and Apportionment of Special Taxes The City shall determine the Special Tax Liability for each Improvement Area in each Fiscal Year on or about every July 1. Special Taxes shall then be levied on each Parcel classified as the Category (, Category II, or Category Ill in the following order of priority: Improvement Area A Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by ~ultiplying the Building Square Footage for Parcels classified as Residential Parcels by the Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parce!s and adding to that the maximum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parce!s by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area A, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for improvement Area A, a Special Tax shall be levied upon each Parcel within Improvement Area A, classified as Category Il. The Special Tax for Parcels assigned to Category Il shall be calculated es the lessor of: (ii The Special Tax Liability for Improvement Area A as determined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area A assigned to Category II, OR' (ii) the Maximum Special Tax rate for Parcels assigned to Category II Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area A, a Special Tax shall be levied upon each Parcel within Improvement Area A classified as Category IlL The Special Tax for Parcels assigned to Category III shall be calculated as the lessor of: ResoLution 19110 Page 11 (i) The Special Tax Liability for Improvement Area A as ~,=,~,"~'='m~n~d' = by the City, less the total revenue generated for all Parcels under Step I and 3 above, divided by the total Acres for all Parcels within improvement Area A assigned to Category III, OR (ii) the Maximum Special Tax rate for Parcels assigned to Category Ill and within Improvement Area A. However, in the event it is determined that the Special Tax Liability for Improvement Area A includes delinquent Special Taxes from Parcels in Category 11I from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category I11 Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category I1[ according to the procedure set forth in the preceding paragraph. Improvement Area B Step 1: Determine the revenue which could be generated by Parcels assigned to Improvemeht Area B for Resource Monitoring by multiplying the total Acres for Parcels. assigned to Category III by the Maximum Special Tax for Category III. Step 2: If the total revenue as calculated in Step 1 is greater than the Special Tax Liability for improvement Area B, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for Improvement Area B for the Fiscal Year. However, in the event it is determined that the Special Tax Liability for improvement Area B includes delinquent Special Taxes from Parcels in Category III from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owhed by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the Step I and Step 2 above. Resolution 19110 Page 12 ,,-~,, RESOLUTION NO. I RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 9%1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), desires to initiate proceedings to annex territory to an existing Community Facilities District and to designate such annexed territory as a separate improvement area therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof. The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]) (the "District"); and, WHEREAS, there has been submitted a map entitled "Annexation Map No. 1 To Community Facilities District No. 97-1(Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 & 5]), City Of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map") showing the territory proposed to be annexed to the District (the "Territory"). NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showing the Territory proposed to be annexed to the District and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the heating on the intention to annex or extent of the annexation to the District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and Highways Code of the State of California. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHARED\ENGINEER\RESOS & ATTACH\Res2 Approve Annex Map CFD 97-1 10.26.00.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO AUTHORIT~ THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]), IMPROVEMENT AREA "A" WHEREAS, the C1TY couNcIL of the CITY OF CHULA VISTA, CALIFORNIA, ("City Council"), formed a Community Facilities District and established certain improvement areas therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-1(OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]) (the "District"); and, WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property (the "Territory") to the District and Improvement Area "A" thereto; and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 97-1 (Open Space Maintenance District [Otay Ranch - SPA One, Villages 1 & 5]), Improvement Area "A", City of Chula Vista, County of Sfin Diego, State of California" (the "Annexation Map") showing the Territory proposed to be annexed to the District has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to District and. Improvement Area "A" thereto, to describe the territory included within Improvement Area "A" of the District and the Territory proposed to be annexed thereto, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District and Improvement Area "A" thereto. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all tree and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. INTENTION TO ANNEX; DESCRIPTION OF TERRITORY AND THE DISTRICT AND IMPROVEMENT AREA "A' THERETO SECTION 3. This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and Improvement Area "A' thereto and this City Council declares its intention to annex the Territory to the District and Improvement Area "A" thereto. A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District and Improvement Area "A" thereto, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District and Improvement Area "A" thereto is hereinafter described as follows: All that property and territory as originally included within the District and Improvement Area "A" thereto, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District and all property and territory subsequently annexed to the District and Improvement Area "A" thereto as shown on maps of such annexed property and territory. A copy of each such map is on file in the Office of the City Clerk and has also been filed in the Office of the County Recorder. SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT SECTION 4. The services that are authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area "A" of the District (the "Services") are generally described in Exhibit A attached hereto and incorporated herein by this reference. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the Services. The Services authorized to be financed by the District from the proceeds of special taxes levied within Improvement Area "A" of the District are the types of services to be provided in the Territory. If and to the extent possible the Services shall be provided in common within Improvement Area "A" of the District and the Ten-itory. SPECIAL TAXES SECTION 5. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Special Tax Formula"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied within Improvement Area "A" of the District to pay for the Services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Services in the Territory is higher or lower than the cost of providing those Services in Improvement Area "A" of the District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Special Tax Formula. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within Improvement Area "A" of the District shall not be increased as a result of the annexation of the Territory to the District and Improvement Area "A" thereto. PUBLIC HEARING SECTION 6. NOTICE IS GIVEN THAT ON THE 12th DAY OF DECEMBER, 2000, AT THE HOUR OF 6:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CAl JFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WH.I~ CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT AND IMPROVEMENT AREA "A" THERETO, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND Al J. OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ^! J. INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES W1THIN THE TERRITORY WII J. BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORAI.I.Y BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHAll. BE IN WRITING AND SHAIJ, CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. Al ,l, WRITTEN PROTESTS SHALl, BE FII,ED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. MAJORITY PROTEST SECTION 7. If (a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within Improvement Area "A" of the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in Improvement Area "A" of the District, or (d) owners of one-half or more of the area of land in the territory included in the Territory, file written protests against the proposed annexation of the Territory to the District and Improvement Area "A" thereto and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public heating. ELECTION SECTION 8. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation of the Territory, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. NOTICE SECTION 9. Notice of the time and place of the public heating shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Govemment Code, with said publication to be completed at least seven (7) days prior to the date set for the public heating. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny ~ Director of Public Works City Attorney H:\SHARED\ENGINEER\RESOS & ATTACH\Res2 Intent Annex CFD 97-1 10.26.00.doc EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 97-1 (OPEN SPACE MAINTENANCE DISTRICT [OTAY RANCH - SPA ONE, VILLAGES 1 & 5]), IMPROVEMENT AREA "A" DESCRIPTION OF SERVICES The maintenance and servicing of public facilities including irrigation, cultivation, installation and replacement of plant material, tree trimming and necessary supplies, personnel, utility and equipment costs; contract services where applicable; maintenance and servicing of parks, parkway landscaping and medians, drainage facilities, pedestrian bcidges and open space slopes, trails and walls. H:\SHARED~ENGINEER\RESOS & ATFACH~Res2 latent Annex CFD 97 I 10.26.00.doc Resolution 19106 EXHIBIT g RATE AND METHOD OF APPORTIONMENT ANNUAL TAX A Special Tax shall be levied annually on land within Community Facilities District No. 97-1 (Open Space Maintenance District) of the City of Chu~a Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. All Parcels within the Distrid are assigned to Special Tax Area A. in addition, certain Parcels are also assigned to Special Tax Area B based upon their location. A map of the Special Tax Areas is included as Exhibit B. The Special Tax which shall be levied upon each Parcel shall be-the aggregate sum of the Special Tax for each Special Tax Area within which the Parcel is located. ,....... All Special Taxes applicable to Parce!s shall be coltested in the same mar and at the same time as ordinary ad valorem property taxes, and the Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. Administrative Expenses means the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the Special Taxes) including the fees and expenses of its counsel. Any fees of the County related to the District or the collection of Special Taxes, an allocable share of the salaries of City staff directly related thereto, any amounts paid by the City from its general fund with respect to the District, and expenses incurred by the City in under~aking actior'-" to foreclose on properties for which the payment of Special Taxes is delinquem, and all other costs and expenses of the City related to the District. Building Square Foot or Square Footage means the square footage as shown on the Parcel's building permit(s), excludin_g,,.).¢~. 9~%raoes or other structures not Resolution 19106 Page 6 VISL~. City means the City of Chula ' '~ Developed Parcel means Taxable Property for which a foundation building permit or other form of building permit has.been issued as of March 1 of the preceding Fiscal Year. District means the Open Space Maintenance District - SPA.One (Villages 1 & 5) of the Community Faciiities District No. 97-1 of the City of Chula Vista. Facilities means those improvements defined in Part I1 of the Special Tax Report d~ed July 1, 1998 for Community Facilities District No. 97-1 of the City of Chula Vista. Fiscal Year means the period starting on July 1 and ending the following June 30. Maximum Special Tax means the maximum special tax that can be levied within CFD No. 97-i by the City Counsil in any Fiscal Year for each Parcel of Taxable PropeFty. Non-Residential Uses shall include all Developed Parcels which are not zoned · for Residential Uses including commercial, industrial, and community public facility (CPF) uses. Operating Fund means a fund that shall be maintained for each Special Tax Area within the Distrid for any Fiscal Year to pay for the actual costs of maintenance, repair, and replacement of the Facilities and the Administrative Expenses. Operating Fund Balance means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount for each Special Tax Area equal to the budgeted, costs of the ma(ntenance,' rape.ir and replacement of the Facilities Which have been accepted and maintained by the District c,- are reasonably expected to be.accepted and maintained.by the District during the current Fiscal Year plus the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego ~ Ill'I Resolution 19106 Page 7 County Assessor and which ha~ been assigned a discrete identifying number on the equalized tax roils of the County. Reserve Fund means a fund that shall be maintained for each Special Tax Are~- to provide necessary.cash flow for operations and maintenance for the first six months of each Fiscal Year, working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Spedal T~xes and a reasonable buffer against large variations in annual special tax amounts. Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal,to up to 100% of the Operating Fund Requirement. Residential Uses shall include those residential uses es permitted in the City zoning ordinance. Special Ta× means the special tax or special taxes actually levied within 97-1. -) Special Tax Area means one of the two specific areas comprising specific Parcels es shown in Exhibit B of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-I of the City of Chula Vista. Special Tax Liability for any Fiscal Year is an amount determined for each Special Tax Area sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Fund to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, less the Reserve Fund Balance. Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law, or which are not classified or assigned to the Exempt Category as defined herein. Cateoories of Soecial Taxes Residential Category: '-~ 'Fne residential category includes each Developed Parcel within the District which is zoned for Residential Uses by the City ("Residential Category"). Resolution 19106 Page 8 · The Maximum Special Tax that may be levied within Sped, al Tax Area A for Fiscal Year 1998/99 on each Developed Parcel assigned to the Residential Category shall be $0.08,4-4 per Building Square Foot. · The Maximum Special Tax that may be ievi~d within Special Tax Area B for the Fiscal Year 1998/1999 on each Developed Parcel assigned to the Residential Category shall be $0.1977 per Building Square Foot. Said Maximum Special Tax Rates shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Querier Per Capita Personal Income as contained in the Governor's budget published every .January. Non-Residential Category The non-residential cate,o~ry includes ail Developed Parcels in the District which are not zoned by the City for Residential Uses ("Non-Residential Category"). · The Maximum Special Tax that may be levied within Special Tax Area A for the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non- Residential Category shall be $1,143 per Acre (said amount to be levied pro rata for any portion of an Acre). · The Maximum Special Tax that may be levied within Special Tax Area B for the Fiscal Year 1998/99 on each Developed Parcel assigned to the Non- Residential Category shall be $2,538 par Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax rates shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage dn. ange in the January to ,January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annuat percentage change in the estimated California Four[h Quarter Per Capita Personal Income as contained in the Governor's budget :ublished every January. Exempt Category - The'exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose Resolution 19106 __s~m~n~ imoractica, common areas, private streets and parks. and open space lots ("Exempt Category"). Vacant Land Category The vacant land category includes each Parcel of Taxable Property assigned to the District not subject to a Special Tax under any other category described above ("Vaunt Land Category"). The Maximum Special Tax which may be levied on each Parcel within the Vacant Land Category for Fiscal Year 1998/99 shall be the rates set forth in Table 1 below (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the"January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. TABLE 1 Vacant Land Category Maximum Special Tax Rate per Acre Maximum Special Tax Area Special Tax Rate Special Tax Area A $1,293/Acre Special Tax Area B $2,870/Acre Assionment to Cateoories of Soecial Taxes On or about July 1 of each year (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the District to the Residential Category, Non-Residential Category, Exempt Category, or Vacant Land Category. Parcels subiect to levy shall be determqqed based upon the ,records of the San Diego County Assessor. Levv and'Aooortionment of Soecial Taxes The City shall determine the Special Tax Liability of each Special Tax Area each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levi6d on each Parcel assigned to the Residential Category, Resolution 19106 Page 10 Non-Residential Category, and Vacant Land Category within each Special Tax Area in the following order of priority: Step 1: Determine the maximum revenue which cculd be generated in each Special Tax Area by multiplying the total Building Square Footage of all Developed Parcels. assigned to the Residential Category in each Special Tax Area by the Maximum Special Tax per Building Square Foot and adding to that the maxi(hum Special Tax revenue which could be generated by multiplying the total Acreage Df all Developed Parce!s ~-ssigned to the Non-Residential Category in each Spe:iel Tax Area by the Maximum Special Tax !der Acre. Step 2: If the total Special Tax revenue as calculated in Step 1 for the Special Tax Area is gre~.ter than the Special Tax Liability of such Special Tax Area, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: if the tote) Special Tax revenue es calculated in Step i is tess than the Special Tax Liability of such Special Tax Area, a Special Tax shall be levied upon each Parcel assigned to the Vacant Land Category. The Special Tax for the Vacant Land Category shall be calculated as the lessor of! (i) The Special Tax Liability for each Special Tax Area, less the total of funds generated for all Parcels within that Special Tax Area under Step 1 above, divided by the total Acres for all Parcels assigned to the "Vacant Land Category" within that Special Tax Area. OR, (ii) the Maximum Special Tax rate for Parcels within that Special Tax Area... However, in the event it is .determined that the SPecial Tax Liability for Special Tax Area A includes delinquent Special Taxes from Parcels in the Vacant Land Category from the prior Fiscal Year, the City.shall determine the amount of such delinquent Special Taxes that aros~ from such Parcels and identify the owner(s). The amount' of delinquent Special Taxes, if any, that arose from each owner shall first be divided by the total Acres owned by such owner(s), and collected from the respective owner with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from Parcels in Resolution 1 9 1 OrS Page 1 1 the Vacant Land Category according to the procedure set forth in the preceding paragraph. Step 4: The total Special Tax for each Parcel shall be the sum of the Special Taxes for each Special Tax Area in which a Parcel is located. Resolution 19106 Page 12 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CAl .I~ORNIA (the "City Council"), desires to initiate proceedings to annex territory to an existing Community Facilities District and to designate such annexed territory as a separate improvement area therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof. The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District"); and, WHEREAS, there has been submitted a map entitled "Annexation Map No. 1 To Community Facilities District No. 97-2 (Preserve Maintenance District), City Of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map") showing the territory proposed to be annexed to the District (the "Territory"). _ NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showing the Territory proposed to be annexed to the District and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the intention to annex or extent of the annexation to the District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and Highways Code of the State of California. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney --. H:\SHARED\ENGINEER\RESOS & ATTACH\Res Approve Annex Map CFD 97 2.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CAI.1FORNIA, DECLARING ITS INTENTION TO AUTHOR IZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CAIJFORNIA, ("City Council"), formed a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District"); and, WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory"); and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 97-2 (Preserve Maintenance District) City of Chula Vista, County of San Diego, State of California" (the "Annexation Map") showing the Territory proposed to be annexed to the District has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to District, to describe the territory included within District and the Territory proposed to be annexed thereto, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all tree and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. INTENTION TO ANNEX; DESCRIPTION OF TERRITORY AND THE DISTRICT SECTION 3. This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and this City Council declares its intention to annex the Territory to the District. A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District. A copy of such map is on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT SECTION 4. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Services") are generally described in Exhibit A attached hereto and incorporated herein by this reference. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the Services. The Services authorized to be financed by the District from the proceeds of special taxes levied within District are the types of services to be provided in the Territory. If and to the extent possible the Services shall be provided in common within the District and the Territory. SPECIAL TAXES SECTION 5. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Special Tax Formula"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amsunt that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the Services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Services in the Territory is higher or lower than the cost of providing those Services in the original District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Special Tax Formula. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or - until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within the District shall not be increased as a result of the mmexation of the Territory to the District. PUBLIC HEARING SECTION 6. NOTICE IS GIVEN THAT ON THE 12th DAY OF DECEMBER, 2000, AT THE HOUR OF 6:00 PM, IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHiN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH 1N THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGAiNST THE PROPOSED ANNEXATION OF - THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHiN THE TERRITORY OR ANY OTHER PROPOSALS CONTAiNED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the Services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Services in the Territory is higher or lower than the cost of providing those Services in the original District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Special Tax Formula. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within the District shall not be increased as a result of the annexation of the Territory to the District. '-'~, PUBLIC HEARING SECTION 6. NOTICE IS G1VEN THAT ON THE 12th DAY OF DECEI~BER , 2000, AT THE HOUR OF 6:00 PM, IN THE REGLrLAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE Tills LEGISLATIVE BODY WllJ, CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND AIJ. OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES W1THIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORAIJ.Y BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FII.FD WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC - HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. MAJORITY PROTEST SECTION 7. If (a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or (d) owners of one-half or mom of the area of land in the territory included in the Territory, file written protests against the proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public heating. ELECTION SECTION 8. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. NOTICE SECTION 9. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public hearing. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHARED\ENGINEER\RESOS & ATTACH\Res Intent Annex CFD 97-2.doc EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) DESCRIPTION OF SERVICES The monitoring, maintenance, operation and management of public property in which the City has a property interest and which conforms to the requirements of the Ordinance or private property within the Otay Ranch Preserve which is required by the Preserve Owner/Manager to be maintained as open space or for habitat maintenance or both. Such property may be located outside the boundaries of the District and outside the jurisdictional boundaries of the City of Chula Vista. Such services shall not include the maintenance, operation and/or management of any property owned, maintained, operated and/or managed by the federal and/or state government as open space, habitat maintenance and/or for any other purpose. A-1 Ill I EXHIBIT A Community Facilities District No. 97-2 July 1, 1998 Page 3 Part II - Description of Facilities/Services The proposed services include all direct, administrative and incidental annual costs and expenses related to the maintenance, operation and management of public or private property required by the Preserve Owner/Manager (POM) to be maintained within the Otay Ranch Preserve as open space or habitat preservation or both. Such property may be located outside the boundaries of the applicable community facility district and outside, the jurisdictional boundaries of the City. The Otay Ranch Phase 2, Resource Management Plan (RMP) dated June 4, 1996, describes the POM functions that may be funded through land secured financing (pages 77-82), including this CFD. The document also identifies those POM functions that may not be funded through land secured financing, including this CFD. Revenues from this CFD may not be used for enhanced preserve functions such as: the maintenance of more lands than contemplated in the initial preserve boundaries; instructional or educational programs; and expanded or new management programs. Revenues from this CFD may not be used to fund the maintenance, operation or improvement of a regional park located in the preserve. Revenues from this CFD may be used for preserve maintenance, operation and management, biota monitoring, and preserve security including ordinary and necessary administrative expenses and reserve fund requirements. Such services shall include the following: A. Preserve Operations and Maintenance 1. Preserve Maintenance: Develop and implement programs to maintain, operate and manage preserve habitat values through: cultivation, irrigation, trimming, spraying, fertilizing, or treatment of disease or injury; removal of trimmings, rubbish, debris, and other solid waste; maintenance of trails; removal and control of exotic plants species (weeds); and control of cowbirds through trapping efforts. 2. Security: Develop and implement security programs to: enforce "no trespassing" rules; curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remove trash, litter, and other debris; control access; prohibit off-road traffic; and maintain fences and trails. 3. Preserve Improvements: Acquire (through lease or purchase) equipment or install improvements necessary to perform the maintenance, monitoring and security functions described herein. Community Facilities District No. 97-2 July 1, 1998 Page 4 B. Resource Monitoring Program 1. Biota Monitorin,q: Implement the annual biota monitoring and reporting program consistent with the RMP to identify changes in the quality and quantity of preserve resources including wildlife species, sensitive plants and sensitive habitat types. Resolution 19110 Page 5 ANNUAL TAX A Special Tax shall De levied annually on each Farcel of land within the Preserve Maintenance District, Community Facilities District No. ~7-2 of the City of Chula Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") through the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of appo,~ionment expressed below: shall be taxed to the extent an.Fi in the manner provided below. All Parcets within the District are included within either Improvement Area A or improvement Area B. A map of the improvement areas is included as Exhibit B. Ail Special Taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem properiy taxes, and Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in casa of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel es shown on the Ir. test maps of the Assessor of the County of San Diego, or if the area of such Parcel is not shown on such Assessors maps, the area as shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Parcel If the preceding maps are not available, the area shall be determined by the City Engineer. Administrative Expenses means the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of its counsel, any fees of the County related to the District or the collection of special taxes, an allocable share of the salades of City staff directty related thereto and a proportionate amount of the City's generaI administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District, and all other costs and - expenses of the City related to the District. Building Square Foot or Square Footage means the square footage as shown on a Parcel's building permit, excluding garages or other structures not used as living space. City means the City of Chula Vista. ~ ']~.~ '" ~ Resolution 19110 Page 6 Developed Parcel means 'Taxable Properly for which a foundation buildin~ perm,; ar other form of building permit has been issued as of March 1 of the preceding Fiscal Year. District means the Preserve Maintenance District Community Facilities District No. 97-2 of the City of Chula Vista. Final Map means a recorded Tract Map or Parcel Map. Fiscal Year means the period starting on July 1 and ending the foliowing June 30. improvement Area means one of the two specific areas es shown in Exhibit B. Maximum Special Tax r, neans the maximum special tax that can be levied within each Improvement Area within CFD No. 97-2 by the City Council in any Fiscal Year for each Parcel of Taxable Properly. Non-Residential Parcels shall include each Parcel within the District which is zoned for other than Residential Uses by the City. '"'" Non-Residential Uses shall include all Developed Parcels which are not zoned for Residenfial Uses including commercial, industrial, and Community Public Facilities (CPF). Operating Fund means a fund that shall be maintained for each Improvement Area within the District for any Fiscal Year to pay for Resource Monitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. Operating Fund Balance means the amount of funds in the Operating Fund for each Improvement Area at the end of the preceding Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount for each Improvement Area equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls of the County. Preserve Operations and Maintenance means those activities defined in Part II A. of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 97-2 of the City of Chula Vista. ? .~).. /~ Resolution 19110 Page 7 Preserve Operations and l~aintenance Fund Requirement means for any Fis:al Year an amour~t equal to the budgeted costs for Preserve Operations and Maintenan:e plus a pro-rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. Residential Parcels shall include each Parcel within the District which is zoned for Residential Uses by the City. Residential Uses shall include those residential uses as permitted in the City zoning ordinance. Reserve Fund means a fund that shall be maintained for each Improvement Area to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies that may arise in connexion with the collection of Special Taxes and a reasonable buffer against large variations in annual special tax amounts. Reserve Fund Balance means the amount of funds in the R~s.rw Fund at the end of the preceomg Fiscal Year. Reserve Fund Requirement means an ~mount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. Resource h~onitoring Program means those activities defined in Part II B. of the Special Tax Repod dated July 1, 1998 for Community Facilities District No. 97-2 of the City of Chuta Vista. Resource rCtonitoring Fund Requirement means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. An Improvement Area's '¥air share" shall be based upon the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism h-s been established. Special Tax means the special tax or special taxes actually levied within CFD No. 97-2 each Fiscal Year. Special Tax Liability for any Fiscal Year is an amount sufficient to pay the costs of an Improvement Area within the District equal to: (i) the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (ii) the Reserve Fund Requirement, less the Reserve Fund Balance. Resolution 19110 Page 8 Tax Categories are those Categories I, II and II1 descrih~ed in the body hereof Taxable ProperLy is all real property or Parcels within the boundaries of the Distrist whish are not exempt from the Special Tax pursuant to the law or which are not classified or assigned to the Exempt Category as defined herein. Cateoories of Special Taxes Category I Category 1 insludes each Developed Parcel within the District. (Category I) The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 1998/99 on each Developed Parcel shall be at the rates set fbrth in Table 1 below. For Residential Parcels the Special Tax shall be levied based upon Building Square Footage and for Non-Residential Parcels shall be levied based on Acreage. The Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. TABLE 1 Maximum Special Tax Category ( Resource Operation & Monitoring Maintenance Residential Parcels $0.0049 per sq. ft. S0.0078 per sq. ft. Non-Residential Parcels $80.96 per Acre S128.53 per Acre Category I1 Category II includes each Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Parcel (Category II). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 1998/99 on each Parcel In Cat~gory II shall be as shown in Table 2 below (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Resolution 191i0 Page 9 Dudo~t oubiished = ~ Capita Personal income as Contained in the Governor's ' _=' , _v~,y January. TABLE 2 Maximum Special Tax Category II Resource Operation & Monitoring Maintenance $80.96 per Acre 5128.53 per Acre Category I11 Category III includes each Parcel of Taxable Property within the District not subject to a Special Tax lander any other category ("Category II1"). The Maximum Special Tax which may be levied for Fiscal Year 1998/99 on Taxable Proper/y within Category Ill shall be as shown in Table 3 below (said amount tc be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which is the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Four[h Quarter Per Capita Personal Income as contained in the Governor's budget published every January. TABLE 3 i Maximum Special Tax Category 111 I Resource Operation & Monitoring Maintenance $51.21 per Acre t $81.30 per Acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set for[h in the easement impractical common areas, private streets and parks, and open space tots ("Exempt Category"). Assi(]nment to Cateeories of Soecial Tax On or about July I of each year, (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll), the City shall assign each Parcel within the District to-Category I, Category II, Category III or the Exempt Category. Resolution 19110 Page 10 ,,--~ Parcels subject to levy shall be determined Based upon the records of the San Diego County Assessor. _Levv and Apportionment of Special Taxes The City shall determine the Special Tax Liability for each Improvement Area in each Fiscal Year on or about every July. 1. Special Taxes shall then be levied on each Parcel classified as the Category 1, Category Il, or Category Ill in the following order of priority: lmDrovement Area A Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by multiplying the Building Square Footage for Parcels classified as Residential ParCels by the Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operations and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area A, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for Improvement Area A, a Special Tax shall be levied upon each Parcel within Improvement Area A, classified es Category II. The Special Tax for Parcels assigned to Category II shall be calculated as the lessor of: (il The Special Tax Liability for Improvement Area A as determined by the City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area A assigned to Category II, OR' (ii) the Maximum Special Tax rate for Parcels assigned to Category II Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area A, a Special Tax shall be levied upon each Parcel within Improvement Area A classified as Category Ill. The Special Tax for Parcels assigned to Category III shall be calculated as the lessor of: Resolution 1 91 1 0 Page 1 1 (il The Special Tax Liability for Improvement Area A as ~e~ermined by the City, less the total revenue generated for all Parcels under Step i and 3 above, divided by the total Acres for all Parcels within improvement Area A assigned to Category OR (ii) the Maximum Special Tax rate for Parcels assigned to Category Ill and within Improvement Area A. However, in the event it is determined that the Special Tax Liability for Improvement Area A includes delinquent Special Taxes from Parcels in Category II1 from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shaII first be divided by the total Category I11 Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the preceding paragraph. Improvement Area B ? Step 1: Determine the revenue which could be generated by Parca!s assigned to Improvement Area B for Resource Monitoring by multiplying the total Acres for Parcels assigned to Category III by the Maximum Special Tax for Category I11. Step 2: If the total revenue as calculated in Step 1 is greater tha,q the Special Tax [..iabiiity for Improvement Area B, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for Improvement Area B for the Fiscal Year. However, in the event it is determined that the Special Tax Liability for Improvement Area B includes delinquent Special Taxes from Parcels in Category Ill from the prior Fiscal Year, the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any, that arose from the applicable owner(s) shall first be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category Ill according to the procedure set forth in the Step 1 and Step 2 above. Resolution 1 9 1 1 0 Page 1 2 COUNCIL AGENDA STATEMENT Item -~ Meeting Date 11/07/00 ITEM TITLE: A. Resolution of the City Council of the City of Chula Vista, California, declaring its intention to authorize the annexation of territory to Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC- OVP-SPA One, Villages 1 West & 2]) B. Resolution of the City Council of the City of Chula Vista, California, adopting an Annexation Map showing property to be annexed to Community Facilities District No. 98-1 (Interim open Space District [Otay Project, LLC-OVP-SPA One, Villages I West & 2]) C. Resolution of the City Council of the City of Chula Vista, California, declaring its intention to authorize the annexation of territory to Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC- OVP-SPA One, Villages 6 & 7]) D. Resolution of the City Council of the City of Chula Vista, California, adopting an Annexation Map showing property to be annexed to Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 6 & 7]) SUBMITTED BY: Director of Public Works/y~/ REVIEWED BY: City Manageg~ (4/5ths Vote: Yes No X ) McMillin and the Otay Ranch Company are currently processing a lot line adjustment Parcel Map in order to clearly define their ownership within Villages 2 and 6 of the Otay Ranch. Both developers have also requested that the City initiate proceedings for adjusting the boundaries of the existing Community Facilities Districts 98-1 and 98-2 to be consistent with the land swap. Staff has determined that the proposed changes would not affect the districts' ability to provide sufficient funding for their operation and maintenance. Best Best and Krieger LLP, the Legal Counsel retained by the City, has recommended the fo]lowing procedure: 1st) Annexing the land swapped parcels to the respective district, and 2nd) recording the corresponding notices of special tax lien cancellation. Tonight, Council would initiate the proceedings by declaring its intention to annex the land swapped parcels to the respective CFD and setting the public hearing for December 19, 2000. RECOMMENDATION: That Council: 1. Approve the resolution declaring the intention to authorize the annexation of territory to Community Facilities District No. 98-1, 2. Approve the resolution adopting an annexation map showing property to be annexed to Community Facilities District 98-1. 3. Approve the resolution declaring the intention to authorize the annexation of territory to Community Facilities District No. 98-2, 4. Approve the resolution adopting an annexation map showing property to be annexed to Community Facilities District 98-2. Page 2, Item Meeting Date 11/07/00 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: CFDs 98-1 and 98-2 wcrc formed by Council on September 15, 1998. CFI) 98-1 encompasses all parcels 1) within Villages 1 West , 2, 2 West, 6 and 7 that are owned by the Otay Ranch Company (see Exhibit A). CFD 98-2 encompasses all the parcels within Otay Ranch Villages 6 and 7 that are owned by McMillin (see Exhibit A). Both CFDs are considered "interim" districts and would levy special taxes on vacant land in order to guarantee the maintenance of certain landscaping improvements. Those improvements are currently being constructed as a requisite for developing Villages 1 and 5; but the responsibility for their maintenance falls on future Otay Ranch Villages. "Permanent" maintenance districts would be created with the subsequent development of these Villages. McMillin is in the process of developing a portion of Village 6 located with CFD 98-2. In order to clearly define their ownership within Villages 2 and 6, McMillin and The Otay Ranch Company are currently pursuing a land swap (see Exhibit B). With the impending land swap, ownership property lines will change; thus, an adjustment to the boundaries to CFDs 98-1 and 98-2 is needed. The proposed land swap would result in an increase of 3.462 acres to CFD 98-1 and a corresponding decrease of 3.462 acres to CFD 98-2. CFDs 98-1 and 98-2 are responsible for funding their pro-rata share of maintaining the Poggi Canyon Channel and the medians and parkways along their respective frontage on Olympic Parkway. After the land swap, the maintenance responsibilities of CFD 98-1 along the frontage on Olympic Parkway will increase while the CFD 98-2 responsibilities would be reduced. Exhibit C presents the changes in the subject districts due to the proposed land swap. The annexed parcels would be subject to the provisions of the adopted "Rate and Method of Apportionment" and "Special Tax Report" of the respective CFD. These documents authorize levying taxes on vacant land at a maximum rate of $103/acre for CFD 98-1 and $47.52/acre for CFD 98-2. Exhibit C shows that, based upon the approved tax rates, both districts will be able to provide enough revenues for funding their operation and maintenance. This Exhibit shows a maximum collectible special tax for CFD 98-1 of $104,953.00 versus a maintenance budget of $71,797.20. Similarly, the maximum collectible tax for CFD 98-2 is $18,910.11 versus a maintenance budget of $15,143.80. Please note that both CFDs would have to collect less that the approved tax rate to meet the estimated funding need. Resolutions There are four resolutions in today's agenda which, if adopted will accomplish the following: o The RESOLUTION DECLARING THE INTENTION TO ANNEX PROPERTY TO CFD 98-1 will declare Council's intention to authorize the annexation of ten-itory to Community Facilities District No. 98-1 and will set the public heating for December 19, 2000. 1) On August 1, 2000, Council formed CFD 99-2 to replace CFD 98-1 as the funding mechanism for the maintenance of the landscaping improvements within Village I West. Page 3, Item Meeting Date 11/07/00 · The RESOLUTION ADOPTING THE ANNEXATION MAP FOR CFD 98-1 will adopt an Annexation Map showing property to be annexed to CFD No. 98-1 · The RESOLUTION DECLARING THE INTENTION TO ANNEX PROPERTY TO CFD 98-2 will declare Council's intention to authorize the annexation of territory to CFD 98-2 and will set the public hearing for December 19, 2000. · The RESOLUTION ADOPTING THE ANNEXATION MAP FOR CFD 98-2 will adopt an Annexation Map showing property to be annexed to CFD No. 98-2. Fiscal Impact: None to the General Fund. All cost of these annexation proceedings is being borne by the developers. Exhibit A - CFD 98-1 and CFD 98-2 Boundary Maps Exhibit B - Proposed Land Swap Exhibit C - Changes in CFD 98-1 & 98-2 due to land swap H:XHOM E\ENGIN EER',LAND D EVXO tay Ranch-McMillin\OR403F Al l 3 Village 6 Intent to annex to 98-1 and 98-2.DOC OR403F/CGB EXHIBIT A 2200 0 2200 Graphic Scare In Feet """' - :- CFD 98-1 LAND SWAp AREA (See Exhibi~ B) 98-2 CFD 98-1 Otay Landfill x ' ' ~' EXHIBIT/B Land Swaps Land Swaps Property to go to Otay Ranch Co. and CFD 98-1 Property to go to McMillin Otay Ranch and CFD 98-2 Note: Swapped Land Uses in Italics SFD Vii. MF CPF MF MF MF '-' SFD P SFD Freeway ~ -, ES c~..~ · ~- SFD SFD SFD SFD Vii. 2 Pri. HS SFD  V i I I a g e S i x ,~, Land PI(:]nninQ McMillin - Lomas Verdes ~ ~5; ~oo EXHIBIT C ESTIMATED ANNUAL BUDGET ,I CFD 98-1 .CFD 98-2 Current Budget $67,868.00 2~ $19,073.00 Land Swap Changes $3,929.20 ($3,929.20) Final Budget $71,797.20 $15,143.80 1. At district formation 2. Excludes Village 1 West MAXIMUM ANNUAL SPECIAL TAX ,I CFD 98-1 CFD 98-2 Current Area (acres) 1015.50 2) 401.40 Land Swap Changes (acres) 3.46 (3.46) Final Area (acres) 1018.96 397.94 Maximum Special Tax $104,953.00 ~1 $18,910.114) 1. At district formation 2. Excludes Village I West 3. 1018.96 acres X $103 (approved CFD 98-I special tax per acre of vacant land) 4. 397.94 acres X $47.52 (approved CFD 98-2 special tax per acre of vacant land) \\CITYWIDE\SYS\HOME\ENGINEER\LANDDEV\Otay Ranch-McMillin\OR403F Al 13 Exhibit 4.DOC RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC~OVP-SPA ONE, VILLAGES 1 WEST & 2]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, ("CiD, Council"), formed a Community Faci!ities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]) (the "District"); and, WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory"); and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 98-1 (Inter'un Open Space District [Otay Project, LLC-OVP-SPA One, Villages 1 West & 2]) City of Chuta Vista, County of San Diego, State of Califomia" (the "Annexation Map") showing the Territory proposed to be annexed to the District has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to District, to describe the territory included within District and the Territory p~oposed to be annexed thereto, to specify the services to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to f'mance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all tree and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the Services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Services in the Territory is higher or lower than the cost of providing those Services in the original District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to the Special Tax Formula. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative b6dy may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within the District shall not be increased as a result of the annexation of the Territory to the District. PUBLIC HEARING SECTION 6. NOTICE IS GIVEN THAT ON THE 19th DAY OF DECEMBER,2000, AT THE HOUR OF 6:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH iN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGA1NST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY INTENTION TO ANNEX; DESCRIPTION OF TERRITORY AND THE DISTRICT SECTION 3. This legislative body hereby determines that the public convenience and necessity requires that the Territory be added to the District and this City Council declares its intention to annex the Territory to the District. A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on fde in the Office of the City Clerk and shall remain open for public insl~ection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District. A copy of such map is on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT SECTION 4. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Services" are generally described in Exhibit A attached hereto and incorporated herein by this reference. The District shall finance all direct, adm'mistrative and incidental annual costs-and expenses necessary to provide the Services. The Services authorized to be financed by the District from the proceeds of special taxes levied within District are the types of services to be provided in the Territory. If and to the extent possible the Services shall be provided in common within the District and the Territory. SPECIAL TAXES SECTION 5. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Special Tax Formula"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such OF THE PROCEEDINGS SHALL BE 1N WRITING AND SHALL CLEARLY SET FORTH THE,''''~, IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. MAJORITY PROTEST SECTION 7. If(a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or (d) owners of one-half or mor~ of the area of land in the territory included in the Territory, file written protests against the proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a major/W, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public hearing. ELECTION SECTION 8. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered---~, voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereo, within the Territory. NOTICE SECTION 9. Notice of the time and place of the public heating shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public hearing. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHARED~Attomey~Res Intent Annex CFD 98-1.doc EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST &2]) DESCRIPTION OF THE SERVICES The maintenance and servicing of public facilities including irrigation, cultivation, installation and replacement of plant material, tree trimming and necessary supplies, personnel, utility and equipment costs; contract services where applicable; maintenance and servicing of park's, parkway landscaping and medians, drainage facilities, pedestrian bridges and open space slopes, trails and walls. IIT'T EXHIBIT B · Community Facility District No. 98-i Special Tax Report July 1, 1998 Page 6 Part IV - Rate and Method of Apportionment of Special Taxes ANNUAL TAX A Special Tax shall be levied annually on land within Community Facilities District No 98-i (Interim Open Space Maintenance District) of the City of Chula Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the ~City") through'the application of the following procedures. All of the property within the District. unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below All Special Taxes applicable to Parcels shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that Special Taxes so levied wilt be subiect to the same penalties and procedures, sale and lien priority in case of delinquency as ~s provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor s maps the area as shown on a current recorded subdivision map, parcel map, record of survey o, ~ other recorded document creating or describing the Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer· - Administrative Expenses means the direct and indirect expenses incurred by the C~:? ;n carrying out its duties with respect to the District (including, but not limited to the levy collection of the Special Taxes) including the fees and expenses of its counsel Any fees of the County related to the District or the collection of Special Taxes. an allocable share of the salaries of City staff directly related thereto, any amounts paid by the City from its general fund with respect to the District, and expenses incurred by the City in undertaking actions to foreclose on properties for which the payment of Special Taxes is delinquent, and all other costs and expenses of the City related to the District. City means the City of Chula Vista District means the Interim Open Space Maintenance District - SPA One (Villages One West. Two West, and portions of Villages Two, Six, Seven and Planning Area 12) of the Community Facilities District No_ 98-1 of the City of Chula Vista. Facilities means those improvements defined in Part II of the Special Tax Report dated July 1. 1998 for Community Facilities District No. 98-1 of the City of Chula Vista. Fiscal Year means the period starting on_ July 1 and ending the following June 30. ~,l:/$prolect/chulavista/CFD98~l 2.c~oc ~ '~ ~ Community Facility District No. 98-I Special Tax Report July !, 19~c8 Page 7 Maximum Special Tax means the maximum special tax that can be levied within CFD No. 98-1 by the City Council in any Fiscal Year for each Parcel of Taxable Property. Operating Fund means a fund that shall be maintained within the District for any Fiscal Year to pay for the-actual costs of maintenance, repair, and replacement of the Facilities. and the Administrative Expenses. Operating Fund Balance means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount equal to the budgeted costs of the maintenance, repair and replacement of the Facilities which have been accepted and maintained by the District or are reasonably expected to be accepted and maintained by the District during the current Fiscal Year plus the budgeted Administrative Expenses of the District for thee current Fiscal Year in which Special Taxes are levied.' Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls of the CounTy. Reserve Fund means a fund that shall be maintained to provide necessary cash flow for operations and maintenance for the first six months of each Fiscal Year. working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Special Taxes and a reasonable buffer against large variations in a~nual special tax amounts. - Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to 100% of the Operating Fund Requirement. Special Tax means the special tax or special taxes actually levied within CFD No. 98-l. Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Fund to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, less the Reserve Fund Balance. bl:/Sproiect/chulav~sta/CFD§8-1 2 acc .,i~,~/~¢~ "~Y Community. Facility District No. 98-1 Special Tax Report July 1, 1998 Page 8 Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law, or which are not classified or assigned to the Exempt Category as defined herein. Cateaories of Special Taxes Taxable Ca~:egory The taxable land category includes each Parcel of Taxable Property assigned to the District (Taxable Ca!egory). The M~imum Special Tax whic_hJ~ay be levied on each Parcel within the Taxable Category for Fiscal Year 1998/99 shall be $103 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Sp'~i'~l Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as centained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots (Exempt Category). Assianment to Cateaories of Special Taxes On or about July 1 of each year (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the District to the Taxable Category, or Exemp. t Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levv and Apportionment of Special Taxes The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District as follows: Step 1: The Special Tax per Acre for Parcels assigned to the Taxable Category shall be calculated as the lessor of: (i) The Special Tax Liability for the District as determined by the City, divided by total Acres for all Parcels assigned to the Taxable Category. / M:lSprojec'Jchu~avistalCFD98-~, .2 aoc ~ / RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), desires to initiate proceedings to annex territory to an existing Community Facilities District and to designate such annexed territory as a separate improvement area therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982', being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof. The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]) (the "District"); and, WHEREAS, there has been submitted a map entitled "Annexation Map No. 1 To Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC-OVP- SPA One, Villages 1 West & 2]), City Of Chula Vista, County Of San Diego, State Of California' (the "Annexation Map") showing the territory proposed to be annexed to the District (the "Territory."). NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showing the Territory proposed to be annexed to the District and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the intention to annex or extent of the annexation to the District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and Highways Code of the State of California. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHARED\Attomey\Res Approve Aanex Map CFD 98-1~doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLCoOVP-SPA ONE, VILLAGES 6 &7]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, ("City Council"), formed a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982', being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), and the City of Chula Vista Co _mmunity Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 &7]) (the "District"); and, WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory"); and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 6 &7]) City of Chula Vista, County of San Diego, State of California" (the "Annexation Map") showing the Territory proposed to be annexed to the District has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to District, to describe the territory included within District and the Territory proposed to be annexed thereto, to specify the services to be f'manced from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such services, and to set a time and place for a public hearing relating to the annexation of the Territory to the District. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: RECITALS SECTION 1. The above recitals are all tree and correct. LEGAL AUTHORITY SECTION 2. These proceedings for annexation are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. INTENTION TQ ANNEX; DESCRIPTION OF TERRITORY AND THE DISTRICT ~ SECTION 3. This legislative body hereby determines that the public convenience and necessity. requires that the Territory be added to the District and this City Council declares its intemion to annex the Territory to the District. A description of the Territory is as follows: All that property witl~in the Territory proposed to be annexed to the District, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is 9n file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: All that property and territory as originally included within the District, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the original District. A copy of such map is on file in the Office of the City Clerk and have also been filed in the Office of the County Recorder. SERVICES AUTHORIZED TO BE FINANCED BY THE DISTRICT ~ SECTION 4. The services that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Services") are generally described in Exhibit A attached hereto and incorporated herein by this reference. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide the Services. The Services authorized to be financed by the District from the proceeds of special taxes levied within District are the types of services to be provided in the Territory. If and to the extent possible the Services shall be provided in common within the District and the Territory. SPECIAL TAXES SECTION 5. It is the further intention of this City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Special Tax Formula"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of sucl¥~'', special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. The special tax proposed to be levied within the Territory shall be equal to the special tax levied t o pay for the Services in the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Services in the Territory is higher or lower than the cost of providing those Services in the original District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher than the maximum special tax authorized to be levied pursuant to the Special Tax Formula. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case o f delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. The maximum special tax rate authorized to be levied within the District shall not be increased as a result of the annexation of the Territory to the District. PUBLIC HEARING SECTION 6. NOTICE IS GIVEN THAT ON THE 19th DAY OF DECEMBER,2000, AT THE HOUR OF 6:00 PM CLOCK P.M., IN THE REGULAR MEETING PLACE OF THE LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, 276 FOURTH AVENUE, CHULA VISTA, CALWORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS LEGISLATIVE BODY WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED METHOD AND APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHIN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF INTENTION. AT SUCH PUBLIC HEARING, THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. AT SUCH PUBLIC HEARING, PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH THI~"'"~ IRREGULARITIES OR DEFECTS TO WHICH OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. MAJORITY PROTEST SECTION 7. If(a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or (d) owners of one-half or more oi= the area of land in the territory included in the Territory, file written protests against the proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public hearing. ELECTION SECTION 8. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. NOTICE SECTION 9. Notice ofthe time and place ofthe public hearing shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public hearing. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHAREDkAuorney\Res Intent Annex CFD 98-2.doc EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 &7]) DESCRIPTION OF THE SERVICES The maintenance and servicing of public facilities including irrigation, cultivation, installation and replacement of plant material, tree trimming and necessary supplies, personnel, utility and equipment costs; contract services where applicable; maintenance and servicing of parks, parkway landscaping and medians, drainage facilities, pedestrian bridges and open space slopes, trails and walls. EXHIBIT B Community Facilit, y District No. 98-2 Soecia! Tax Repo~ July 1, 1998 Page 5 Part IV- Rate and Method of Apportionment of Special Taxes ANNUAL TAX A Special Tax shall be levied annually on land within Community Facilities District Nc. 98-2 (interim Opi~n Space Maintenance District) of the City of Chula Vista (the "District"), end collected accoj"ding to the Special Tax Liability determined by the City of Chula Vista (the Dis~rlc,. "City*) thr.ough the application of the following procedures. All of the property within the ' unless otheh,vise exempted by law or the express provisions of the rate and method of apport]o-nment expressed below, shall be taxed to the extent and in the manner provided below. All Special Taxes applicable to Parcels shall be collected in the same manner and at the same time as ordinary ad valorem properly taxes, and that Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of deIinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of survey or other recorded document creating or describing the Parcel. If the preceding maps are not available, the area shall be determined by the City Engineer. Administrative Expenses means the direct and indirect expenses incurred by the Ch.v ]n carrying out its duties with respect to the District (including. but not limited to, '~'-~, ,= Le~,'~/en.d collection of the Special Taxes) including the fees and expenses of its counsel. ,Any fees of County related to the District or the collection of Special Taxes, an allocable share of the salaries of City staff directly related thereto, any amounts paid by the City from its general fund with respect to the District, and expenses incurred by the City in undertaking actions to foreclose on properties for which the payment of Special Taxes is delinquent, and all other costs and expenses of the City related to the District. City means the City of Chula Vista District means the Interim Open Space Maintenance District - SPA Two (Villages 6 & 7.) of the Community Facilities District No. 98-2 of the City of Chute Vista. Facilities means those improvements defined in Part I1 of the Special Tax Report dated July i, t998 for Community Facilities District No. 98-2 of the City of Chula Vista. Fiscal Year means the period starting on July 1 and ending the fol,owing wu,,~ 30. M:/SprojectJchulavista/CFD98-2.1 .doc community Facility District No. 98-2 Special Tax Report July 1, 1998 Page 6 Maximum Special Tax means the maximum special tax that can be levied within CFD No. 98-2 by the City Council in any Fiscal Year for each Parcel of Taxable Property. Operating Fund means a fund that shall be maintained within the District for any Fiscal Year to pay for the.actual costs of maintenance, repair, and replacement of the Facilities. and the Administrative Expenses. Operating F~und Balance means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount equal to the budgeted costs of the maintenance, repair and replacement of the Facilities which have been accepted and maintained by the District or are reasonably expected to be accepted and maintained by the District during the current Fiscal Year plus the budgeted Administrative Expenses of the District for th..e current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls of the County Reserve Fund means a fund that shall be maintained to provide necessary cash flow for operations and maintenance for the first six months of each Fiscal Year, working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Special Taxes and a reasonable buffer against large variations in annual special tax ~ =mourns. Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to 100% of the Operating Fund Requirement. Special Tax means the special tax or special taxes actually levied within CFD No. 98-2. Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Fund to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, tess the Reserve Fund Balance. Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law, or which are not classified or assigned to the Exempt Category as defined herein. M :/$project/chulavista/CFD98-2 1 .doc '~"~'~" ¢ ~ Community Faciti.ty District No. 98-2 Special Tax Report July 1, 1998 ...,,... Page 7 ( Cateeories of Special Taxes Taxable Category The taxable land category includes each Parcel of Taxable Property assigned to the District (Taxable Category). The Maximum 'Special Tax which may be levied on each Parcel within the Taxable Category for Fiscal Ye~¢ 1998/99 shall be $47.52 per Acre (said amount to be levied pro rata for any portion of an ~,-cre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of,way unmanned uti ty,._. easements which make utilization for other than the purpose set forth in the easeme~ impractical, common areas, private streets and parks, and open space lots ('Exempt Category"). Assianment to Cateoories of Special Taxes On or about July 1 of each year (but in any event in sufficient time to include thee'levv of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel wiihin the District to the Taxable Category, or Exempt Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levv and Apportionment of Special Taxes The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District as follows: Step 1: The Special Tax for Parcels assigned to the Taxable Category shall be calcu!ated as the lessor of: (i) The Special Tax Liability for the District as determined by the City, divided by th,~"-', total Acres for all Parcels assigned to the Taxable Category. OR, M:lSprojec'dchulavistalCFD98-2.1 .doc Community Facili!y District No. 98-2 Special Tax Report July 1, 1998 Page 8 (ii) the Maximum Special Tax rate for Parcels assigned to the Taxable Category Step 2: The City shall advise the owner of Parcels within the District of the Special Tax Liability for the next Fiscal Year. Step 3: The owner(s) of Parcels Within the District, may at its election, deposit funds with the City prior to July 15 of each Fiscal Year, in an amount equal to the Parcel's Special Tak' which shall be deposited into the Operating Fund and Reserve Fund of the - -District. Step 4: If the funds deposited with the City are less than the Parcel's Special Tax obligation for the Fiscal Year, then a Special Tax shall be levied equal to the Parcel's Special Tax as determined in Step 1 minus any funds deposited for the current Fiscal Year pursuant to Step 3. M:lSprojectJchulavista/CFD98-2.1 .doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING AN ANNEXATION MAP SHOWING PROPERTY TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC~OVP-SPA ONE, VILLAGES 6 & 7]) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), desires to initiate proceedings to annex territory to an existing Community Facilities District and to designate such annexed territory as a separate improvement area therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of Califomiv, and specifically Article 3.5 thereof. The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]) (the "District"); and, WHEREAS, there has been submitted a map entitled "Annexation Map No. 1 To Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP- SPA One, Villages 6 & 7]), City Of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map") showing the territory proposed to be annexed to the District (the "TenStory"). NOW,THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showhag the Territory proposed to be annexed to the District and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the intention to annex or extent of the annexation to the District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and Highways Code of the State of California. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H:\SHARED\AUomey\R¢$ Approve Annex Map CFD 98-2.doc COUNCIL AGENDA STATEMENT Item t~ Meeting Date 11/7/00 ITEM TITLE: A. Resolution of the City Council of the City of Chula Vista, California certifying and adding property to Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Villages One & Five and V~llage One West) B. Resolution of the City Council of the City of Chula Vista, California certifying and adding property to Community Facilities District No. 99-2 (Otay Ranch Spa One - Village One West) SUBMITTED BY: Director of Public Works~ REVIEWED BY: City Manager/~(~J (4/5ths Vote: Yes__ No X ) The Otay Ranch Company has submitted a letter dated September 6, 2000, (Exhibit A) requesting the City to conduct annexation proceedings for the last remaining out-parcel within Village One West, Parcels 1 & 2 as indicated on the Future Annexation Exhibit recorded in Book 34 at Page 39 on July 6th, 2000, into the Community Facilities District No. 99-2 (CFD No. 99-2). (Refer to Exhibit B) Community Facilities District No. 99-1 (CFD No. 99-1) will be annexing certain territories within both Villages One West and Village Five. These territories are described as the three (3) out-parcels (approximately 32 acres) within Village One West and Parcel 35A (17 acres) within Village Five. (Refer to Exhibit C) Tonight's action is to initiate proceedings to annex certain territories into the CFD No.'s 99-1 and 99-2. Per the adopted formation proceedings for CFD Nos's 99-1 and 99-2 completed in June, these summary annexations will not require a public hearing. The actions tonight will require the consent and waiver from the property owners and recordation of documents with the County. RECOMMENDATION: That Council: 1. Approve the resolution certifying and adding property to Community Facilities District No. 99-1 (Otay Ranch SPA One - Portion of Villages One & Five and Village One West), 2. Approve the resolution certifying and adding property to Community Facilities District No. 99-2 (Otay Ranch SPA One -Village One West). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. Page 2, Item Meeting Date 11/7/00 DISCUSSION: In mid-1999, the City Council undertook proceedings to form and did form Cormmunity Facilities District No.'s 99-1. The purpose of CFD No. 99-1 is to fund the construction and/or acquisition of certain public improvements serving the Otay Ranch SPA One properties. The financing structure contemplated the sale of two series of bonds to fund the necessary improvements within Otay Ranch SPA One. Series "A" bonds (23 million) were sold in late 1999, with the next Series "B" bonds anticipated to be issued in early 2001. The annexations will add approximately 154 residential units into CFD No. 99-1. The 154 residential units will be subject to the special provisions of the adopted Rate and Method of Apportionment prepared for Community Facilities District No. 99-1. Based upon the adopted Special Tax Report the annexation areas fall into two (2) of the three Zone categories - Zone B: Village Five and Zone C: Village One West. Tables 5 & 6 of the Special Tax Report will need to be revised to reflect the additional units, residential square footage and expected annual tax revenues. (Revised -Tables 5 & 6 are attached as Exhibits D & E) In mid-2000, the City Council undertook proceedings to form and did form Community Facilities District No. 99-2. The purpose of CFD No. 99-2 is to permanently fund the operation and maintenance of certain landscape improvements within Otay Ranch SPA One - Village One West, Based on the adopted Special Tax Report, the budget and per unit allocations it appears that the additional twenty-eight (28) single-family units will generate sufficient tax revenues to offset the anticipated maintenance costs related to this annexation. The annual special tax rate (FY 2000-01) for CFD No. 99-2 with the addition of the 28 units will be reduced from the adopted $.3857/square foot to $.3749/square foot. The revised maximum special tax table is attached for reference (Exhibit F). The new tax rates will be applied to the FY 2001-02 and be subject to the provisions Of the RMA for annual increases. Staff, the legal counsel, and the special tax consultant have reviewed the proposed methodology, allocation of units, square footage calculations, and consider these annexations ready for council approval. Resolutions Them are two resolutions on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION CERTIFYING AND ADDING PROPERTY to Community Facilities District No. 99-1 (Otay Ranch SPA One - Portions of Villages One & Five and Village One West) The RESOLUTION CERTIFYING AND ADDING PROPERTY to Community Facilities District No. 99-2 (Otay Ranch SPA One - Village One West) Page 3, Item __ Meeting Date 11/7/00 Future Actions There are no further actions or findings for the City Council to consider at this time. The approved annexations will be completed by staff and recorded at the County. Fiscal Impact All costs related to these annexation proceedings for CFD No.'s 99-1 and 99-2 are being borne by the developers and the on-going administration will be funded entirely by the district. Exhibits: A. September 6, 2000 - Annexation request letter B. CFD No. 99-2 Annexation Map C. CFD No. 99-1 Annexation Map D. CFD No. 99-1: Table 5 Zone B - Village Five anticipated tax revenues E. CFD No. 99-1: Table 6 Zone C - Village One West anticipated tax revenues F. CFD No. 99-2: Revised Special Tax Table H:~HOME~ENGINEER~AGENDA~Revised CAS-Outparcels(99- I +99~2).doc 11/1/00 12:50:55 PM S~tember 6, 2000 Ta[ OTAY RANCH COMPANY Mr. John Lippitt Director of Public Works CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 RE: Chula Vista CFD 9%2 and 99-2 Dear John: On August 22, 2000, the Chula Vista City Council authorized the formation of CFD No. 99-2 (Open Space Maintenance District) for the Otay Ranch Village One West area. At that same meeting, the Council authorized the annexation of the Village One West area into CFD No. 97-2 (Preserve Maimenance District). Subsequent to that action Otay Project L.P. has acquired Parcels 1 and 2 identified as future annexation parcel in the CFD No. 99-2 boundary exhibit. Please initiate the process to annex Parcels 1 and 2 into both CFD No. 97-2 and CFD No. 99-2. If you have any questions, please don't hesitate to contact me. We look fonvard to completing the annexation as soon as possible. Sincerely, THE OTAY RANCH COMPANY Ranie L. Hunmr Vice President cc: Greg Matson, MMS ~1 ~ z ~ oSOZ ~ Z o < o 0 REVISED TABLE 5 Expected Development and Special Tax Revenue by Planning Area within Zone B Community Facilities District No. 99-1 ~ER EXPECTED OF UNITS/ TOTAL SPECIAL PERCENT PLANNING EXPECTED ACRES RESIDENTIAL TAX OF TOTAL AREA PRODUCT TYPE FLOOR AREA REVENUE REVENUE R-25 Residential Property 48 units 150,624 62,881 5.96% R-26 Residential Property 52 units 137,124 60,566 5.74% R-27 Residential Property 37 units 75,332 36,646 3.47% R-28 Residential Property 56 units 93,072 49,391 4.68% R-29 Residential Property 83 units 128,733 70,533 6.68% R-30 Residential Property 119 units 197,778 104,956 9.95% R-31 Residential Property 71 units 144,556 70,321 6.67% R-32 Residential Property 105 units 259,560 117,272 11.11% R-33 Residential Property 47 units 123,939 54,742 5.19% R-34 Residential Property 35 units 92,295 40,766 3.87% R-35 Residential Property 36 units 11:2,968 47,161 4.47% R-35A* Residential Property 62 units 150,842 45,207 4.28% R-36 Residential Property 62 units 153,264 69,247 6.56% R-37 Residential Property 60 units 99,720 52,919 5.02% R-38 Residential Property 43 units 87,548 42,589 4.04% R-39 Residential Property 182 units 182,000 125,579 11.90% CPF-5 Community Purpose 4.7 acres N/A 4,366 0.41% Facility Property TOTAL 1,098 units 2,189,355 $1,055,142 100.00% *Annexation of Parcel 35A included units to be incorporated into residential areas (R-25, R- 26A, R-26B, R-27 and R-28). H:\SHARED\ENGINEER~RESOS & ATFACH~Revised CFD 99-I TABLE 5.doc ! -3. y E×PIIBIT~ REVISED TABLE 6 Expected Development and Special Tax Revenue by Planning Area within Zone C Community Facilities District No. 99-1 NUMBER EXPECTED OF TOTAL SPECIAL PERCENT PLANNING EXPECTED UNITS/ RESIDENTIAL TAX OF TOTAL AREA PRODUCT TYPE ACRES FLOOR AREA REVENUE REVENUE R-49A Residential Property 87 units 177,132 $112,738 9.61% R-49B Residential Property 27 units 54,972 34,988 2.98% R-50 Residential Property 83 units 205,176 123,477 10.52% R-51A Residential Property 62 units 163,494 96,737 8.24% R-51B Residential Property 28 units 73,836 43,688 3.72% R-52A Residential Property 55 units 172,590 97,940 8.35% R-52B Residential Property 8 units 25,104 14,246 1.21% R-53 Residential Property 36 units 112,968 64,106 5.46% R-54A Residential Property 9 units 18,324 11,663 1.00% R-54B Residential Property 28 units 57,008 36,284 3.09% ... R-55 Residential Property 84 units 171,024 108,851 9.28% R-56 Residential Property 68 units 149,600 93,024 7.93% R-57 Residential Property 20 units 49,440 29,754 2.54% R-58 ! Residential Property 71 units 222,798 126,431 10.77% R-59 Residential Property 55 units 145,035 85,815 7.31% R-60 Residential Property 63 units 155,736 93,724 7.99% TOTAL 784 units 1,954,237 $1,173,466 100.00% H:~SHARED~ENGINEER\RESOS & ATtAClqXRevisecl CFD 99 ITable 6.doc EXHIBIT Revised Special Tax Table Expected Development Type and Special Tax for Each Use within Community Facilities District No. 99-2 Previously adopted special tax rate for development types within CFD No. 99-2: Unit Type with Average Square Footage Village One West at $.3857/SF Single Family Detached (Largest Average Product Proposed for Village One West at 3,619 SF) $1,396.00 Single Family Detached (Smallest Average Product Proposed for Village One West at 2,016 SF) $777.00 Vacant Land $4,766/Acre Future Annexation Parcels (Parcels 1 & 2) are annexed into CFD 99-2, the maximum special tax rates will be is reduced to the following: Unit Type with Average Square Footage Village One West at $.3749/SF Single Family Detached (Largest Average Product Proposed for Village One West at 3,619 SF) $1,357.00 Single Family Detached (Smallest Average Product Proposed for Village One West at 2,016 SF) $756.00 Vacant Land $4,623/Acre H:\SHAREDkENGINEERXRESOS & ATTACI-BRevised Table A.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, CERTIFYING AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VII I .AGES ONE & FIVE AND VI11 .AGE ONE WEST) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CAI JFORNIA (the "City Council"), has previously formed a Community Facilities District pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities 'District Law"). The existing Community Facilities District being designated as COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VII J.AGES ONE & FIVE AND VII I ,AGE ONE WEST) (the "District"); and, WHEREAS, the City Council has also established a procedure to allow and provide for future annexations to the District and the territory proposed to be so annexed in the future was designated as COMMUNITY FACILITIES DISTRICT NO. 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VITJ.AGES ONE & FIVE AND VILLAGE ONE WEST), FUTURE ANNEXATION AREA (the "Future Annexation Area"); and WHEREAS, at this time the unanimous consent of the property owner or owners of certain specific territory proposed to be annexed (the "Annexed Area") has been received; and WHEREAS, a map showing the Annexed Area and designated as "Annexation Map No. 1 of Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Villages One & Five and Village One West) of the City of Chula Vista, County of San Diego, State of California" has been submitted to the City Council. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Findines. The City Council does hereby determines as follows: A. The unanimous consent and election to the annexation of the Annexed Area to the District has been given by all of the owners of the Annexed Area and such consent and election shall be kept on file in the Office of the City Clerk. B. The legislative body is authorized to levy the authorized special taxes within the Annexed Area pursuant to the rate and method of apportionment of such special tax. SECTION 3. Annexed Area. The boundaries and parcels of territory within the Annexed Area and on which special taxes will be levied is described as follows: All that property annexed to the District as said territory is shown on a map as submitted to and hereby approved by the City Council, such map designated as "Annexation Map No. 1 of Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Villages One & Five and Village One West) of the City of Chula Vista, County of San Diego, State of California" (the "Annexation Map"), a copy of which is on file and shall remain open for public inspection. SECTION 4. Declaration Of Annexation. The City Council does hereby determine and declare that the Annexed Area is now added to and becomes a part of the District. SECTION 5. Notice. Immediately upon adoption of this Resolution, notice shall be given as follows: A. A copy of the Annexation Map as approved shall be immediately, and no later than fifteen (15) days after the date of adoption of this Resolution, filed in the Office of the County Recorder. B. An amendment to the Notice of Special Tax Lien shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney H :XS HARED~EN G/NEER~°,E S OS & ATI'ACI~Res Add Property - CFD 99-1.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CAI JFORNIA, CERTIFTING AND ADDING PROPERTY TO COMMUNITY FACILITIES DISTRICT NO. 99-2 (OTAY RANCH SPA ONE - VII,I.AGE ONE WEST) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CAI JIFORNIA (the "City Council"), has previously formed a Community Facilities District pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). The existing Community Facilities District being designated as COMMUNITY FACILITIES DISTRICT NO. 9%2 (OTAY RANCH SPA ONE - VII .1 .AGE ONE WEST) (the "District"); and, WHEREAS, the City Council has also established a procedure to allow and provide for futura annexations to the District and the territory proposed to be so annexed in the future was designated as COMMUNITY FACILITIES DISTRICT NO. 99-2 (OTAY RANCH SPA ONE - VIIJ.AGE ONE WEST), FUTURE ANNEXATION AREA (the "Future Annexation Area"); and WHEREAS, at this time the unanimous consent of the property owner or owners of certain specific territory proposed to be annexed (the "Annexed Area") has been received; and WHEREAS, a map showing the Annexed Area and designated as "Annexation Map No. 1 of Community Facilities District No. 99-2 (Otay Ranch Spa One - Village One West) of the City of Chula Vista, County of San Diego, State of California" has been submitted to the City Council. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Findings. The City Council does hereby determines as follows: A. The unanimous consent and election to the annexation of the Annexed Area to the District has been given by all of the owners of the Annexed Area and such consent and election shall be kept on file in the Office of the City Clerk. B. The legislative body is authorized to levy the authorized special taxes withifi the Annexed Area pursuant to the rate and method of apportionment of such special tax. SECTION 3. Annexed Area. The boundaries and parcels of territory within the Annexed Area and on which special taxes will be levied is described as follows: All that property annexed to the District as said territory is shown on a map as submitted to and hereby approved by the City Council, such map designated as "Annexation Map No. i of Community Facilities District No. 99-2 (Otay Ranch Spa One - Village One West) of the City of Chula Vista, County of San Diego, State of California" (the "Annexation Map"), a copy of which is on file and shall remain open for public inspection. SECTION 4. Declaration Of Annexation. The City Council does hereby determine and declare that the Annexed Area is now added to and becomes a part of the District. SECTION 5. Notice. Immediately upon adoption of this Resolution, notice shall be given as follows: A. A copy of the Annexation Map as approved shall be immediately, and no later than fifteen (15) days after the date of adoption of this Resolution, filed in the Office of the County Recorder. B. An amendment to the Notice of Special Tax Lien shall be recorded in the Office of the County Recorder no later than fifteen (15) days after the date of adoption of this Resolution. ""~' PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny Director of Public Works City Attorney HSSHARED~ENGINEER~RESOS & ATrACHXRes Add Property - CFD 99-2.doc COUNCIL AGENDA STATEMENT Item ~- Meeting Date 11/7/00 ITEM TITLE: Resolution Accepting bids and awarding contract for the "Halecrest Drive Improvements Between Hale Street and Telegraph Canyon Road, in the City of Chula Vista, CA (STM-342)" Project to Southern California Underground Contractors, Inc., in the amount of $78,475.00. SUBMITTED BY: Director of Public Work~,~/' REVIEWED BY: City Manager/t~ (4/5ths Vote: Yes __ No X ) At 2:00 p.m. on Wednesday, October 18, 2000, the Director of Public Works received sealed bids for the "Halecrest Drive Improvements Between Hale Street and Telegraph Canyon Road, in the City of Chula Vista, CA (STM-342)" Project. This project provides for the construction of four (4) pedestrian ramps and storm drain improvements at Halecrest Drive between Hale Street and Telegraph Canyon Road. The work also includes all labor, material, equipment, transportation, protection of existing improvements and traffic control necessary for the project. RECOMMENDATION: That Council accept bids and award the contract for the "Halecrest Drive Improvements Between Hale Street and Telegraph Canyon Road, in the City of Chula Vista, CA (STM-342)" Project to Southern California Underground Contractors, Inc. in the amount of $78,475.00. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: General This project provides for the construction of storm drain improvements and four (4) pedestrian ramps at Halecrest Drive between Hale Street and Telegraph Canyon Road. According to Title II of the Americans With Disabilities Act (ADA), when streets or highways are newly built or altered, pedestrian ramps shall be constructed at all intersection adjacent to the construction. Due to the interchange improvements at 1-805/Telegraph Canyon Road, pedestrian ramps had to be installed at the intersection of Halecrest Drive and Telegraph Canyon Road. In order to construct a pedesthan ramp at the northwest comer of the intersection, an existing curb inlet required modification, reducing the storm water capacity of the curb inlet. By reducing the size of the curb inlet, additional inlets had to be constructed upstream at the intersection of Halecrest Drive and Hale Street to ensure proper drainage of the surface streets. The storm drain runoff'outlets into the adjacent Telegraph Canyon Channel. Page 2, Item Meeting Date 11/7/00 The general scope of the project involves the construction of four (4) pedestrian ramps and drainage facilities which includes two (2) storm drain inlets and construction of 18-inch and 36-inch storm drain pipes. The work also includes all labor, materials, equipment, transportation, protection of existing improvements and traffic control necessary for the project and other work necessary to render the new improvements complete and workable. Bidding Process Engineering staffprepared plans and specifications and advertised the project. Staffreceived and opened bids for the project on October 18, 2000. Bids were received from six (6) contractors to perform the work as follows (listed in order of base bid amount): Contractor Base Bid Amount Southern California Underground Contractors, Inc., Brea, CA $ 78,475.00 MJC Construction, Chula Vista, CA $109,125.00 New Century Construction, [nc., San Diego, CA $114,125.00 E.V. Constructors, Inc., San Diego, CA $119,718.44 Pullman Engineering, Inc., San Diego, CA $122,769.94 Scheidel Contracting & Engineering, Inc., La Mesa, CA $134,375.00 Staffreceived excellent bids for the proposed project. The low bid submitted by Southern California Underground Contractors, Inc. is below the Engineer's estimate orS112,025.00 by $33,550.00 or approximately 30.0%. Staff's bid estimate was based on average prices for similar type work completed during the last three years. The engineer's estimate is slightly below the average of the second through last bidder by 3.4%. While staffhas seen a recent trend with bids coming in below the estimate, it is unclear as to the eventual impact on our future construction estimates and construction costs. Engineering staff checked the references provided by the contractor. All references were verified and their work has been satisfactory. Their Contractor's License No. 611356 is clear and current. Staff has reviewed the low bid and is recommending awarding the contract to Southern California Underground Contractors, Inc. of Brea, California, in the amount of $78,475.00. Disclosure Statement Attachment is a copy of the contractor's Disclosure Statement. Environmental Status The City's Environmental Review Coordinator has reviewed the work involved in this project and has determined that the project is exempt under Section 15301, Class lc of the California Environmental Quality Act (Minor Alterations of Existing Public Improvements or Public Structures). Page 3, Item Meeting Date 11/7/00 Prevailing Wage Statement This project is funded through Trans DIF fimds. Based on the current project funding guidelines, no prevailing wage requirements were necessary as part of the bid documents. Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount (Southern California Underground Contractors, Inc.) $ 78,425.00 B. Contingencies (approx. 10%) $ 8,000.00 C. Staff Costs (Design, Inspection) $ 15,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $ 91,425.00 FUNDS AVAILABLE FOR CONSTRUCTION Trans DIF $ 91,425.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $ 91,425.00 The above action of awarding the contract will authorize a total expenditure of $91,425.00 from the budgeted CIP project. After construction, only routine City maintenance will be required. Attachments: Contractor's Disclosure Statement bvh H:\HOM E\ENGIN EER~AGENDA\STM 342A 113,bvh.doc THE CITY OF CHULA VISTA DISCLOSURE STATEMENT You are required to file a Statement of Disclosure of certain ownership or financial interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodig.~., The following information must be disclosed: 1. List the names of all persons having a financial interest hi the property which is the subject of the application or the Contract, e.g., owner, applicant, Contractor, subcontractor, material supplier. 2. If any per~0n* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any parmer*hip interest in the partncmhip. 3. If any person* identified pursuant to (1) above is non-profit orgamzatinn or a trust, list the names of any person serving as director of the non-profit organization or as frustee or beneficiary or trnstor of the trust. 4. Have you had more than $250 worth of business transacted with any member of the City *taft, Boards, C~mmissions, Committees, and Council within the past twelve month? Yes No .~lf yes. please indicate person(s): 5. Please identify each and every person, including any agents, employees, consultants, or independent Contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the ag~ttegate, contri~ Ired more than $1,000 to a Council member in the current * * * (NOTE: Attache~l additinmll P!hg~ necessary) * * * Sigaatu~ of Contractur/Apl~licant Print type name of Contractor/Applicant * Person is deigned ~: ~An)' individual, firm. co-parrnership, joint vetm~re, a*sociazion, social club, paternal organization, corporation, estate, trust~ receiver, syru~cate. this and any other couno_,, ciO, or counto', cio' rnunicipalio', district, or other political subdivision, or any other group or combination acting as a unit. 14 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTR3~CT FOR THE "HALECREST DRIVE IMPROVEMENTS BETWEEN HALE STREET AND TELEGRAPH CANYON ROAD IN THE CITY OF CHULA VISTA, CA (STM-342)" PROJECT TO SOUTHERN CALIFORNIA UNDERGROUND CONTRACTORS, INC. IN THE AMOUNT OF $78,475.00 WHEREAS, at 2:00 p.m. on Wednesday, October 18, 2000, the Director of Public Works received the following six sealed bids for the "Halecrest Drive Improvements between Hale Street and Telegraph Canyon Road, in the City of Chula Vista, CA (STM- 342)" project: Contractor Base Bid Amount Southern California Underground Construction $ 78,475.00 Brea, Ca. MJC Construction, Chula Vista $109,125.00 New Century Construction, Inc., San Diego, Ca. $114,125.00 E. V. Constructors, Inc., San Diego, Ca. $l 19,718.44 Pullman Engineering, Inc., San Diego, Ca. $122,769.94 Scheidel Contracting & Engineering, inc., La Mesa, $134,375,00 Ca. WHEREAS, the low bid submitted by Southern California Underground Contractors, Inc. is below the Engineer's estimate of $112,025.00 by $33,550.00 or approximately 30.0%; and WHEREAS, staff has reviewed the low bid and is recommending awarding the contract to Southern California Underground Contractors, Inc. in the amount of $78,475.00. WHEREAS, the project is funded through Trans DIF funds and based on the current project funding guidelines, no prevailing wage requirements were necessary as part of the bid documents; and WHEREAS, the City's Environmental Review Coordinator has reviewed the work involved in the project and has determined that the project is exempt under Section 15301, Class lc of the 1 California Environmental Quality Act (Minor Alterations of ~''~ Existing Public Improvements or Public Structures). NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept bids and award the contract for the "Halecrest Drive Improvements between Hale Street and Telegraph Canyon Road in the city of Chula Vista, CA. (STM-342)" project to Southern California Underground Contractors, Inc. in the amount of $78,475.00. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said contract for and on behalf of the city of Chula Vista. Presented by Approved as to form by John P. Lippitt John M. Director of Public Works City Attorney [H:IHOME\ATTORNEY~RESO% Halecrest Drive Improvemeiits (October 26, 2000 2 COUNCIL AGENDA STATEMENT Item (:~ Meeting Date 11/7/00 ITEM TITLE: Resolution Approving the selection of Vollmer Associates LLP to conduct a "peer" review of information used by CTV in making traffic and revenue projections for the SR-125 project, authorizing the City Manager to negotiate a contract for this purpose and waiving the consultant selection process as impractical. Resolution Approving the selection of Infrastructure Management Group, Inc. to conduct a financially-based appraisal of the SR-125 Franchise, authorizing the City Manager to negotiate a contract for this purpose and waiving the consultant selection process as impractical. Resolution Appropriating $200,000 from the Interim SR125 D1F Fund for a new CIP project, SR-125 Franchise Review, STM348. SUBMITTED BY: Director of Public Works REVIEW BY: City Manager ~ (4/5ths Vote: Yes X No ) The City Council recently authorized City staff to enter into discussions with consultants to conduct a "peer" review of information used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projects for the SR-125 Toll Road Facility. Further, the Council also authorized staff to enter into discussions with a financial consultant to conduct a financially- based appraisal of the SR-125 Franchise. Smith & Kempton, the City's transportation consultant, was requested to solicit proposals from qualified consultants to accomplish these tasks. Smith & Kempton has completed this task and presented its recommendations to staff. Staff conducted interviews with two respondents for the financial appraisal activity, and the following recommendations are submitted for the Council's action. RECOMMENDATION: That Council: 1. Approve the selection of Vollmer Associates LLP to conduct a "peer" review of information used by CTV in making traffic and revenue projections for the SR-125 project, authorize the City Manager to negotiate a contract with Vollmer Associates for this purpose and waive the consultant selection process as impractical. 2. Approve the selection of Infrastructure Management Group, Inc. to conduct a financially- based appraisal of the SR-125 Franchise, authorize the City Manager to negotiate a Page 2, Item Meeting Date 11/7/00 contract with Infrastructure Management Group, Inc. for this purpose and waive the consultant selection process as impractical. 3. Appropriate $200,000 from the Interim SR125 DIF Fund for a new CIP project, STM348 - SR- 125 Franchise Review. BOARDS/COMMISSION: Not Applicable DISCUSSION: On May 2, 2000, the City Council considered a report on the pros and cons of public ownership of the SR-125 Toll Road and directed staff to spend an adequate effort to investigate the necessary actions and commitments needed for the City to be involved in a public toll road. Then, on August 22, 2000, the Council reviewed a report from the firm of Smith and Kempton which outlined the necessary actions and studies required before considering entering into a JPA for ownership and operation of the toll road can be made. Copies of both those agenda statements are attached. Based on those actions it was determined that it would be in the best interests of the City to proceed with further discussions/negotiations with CTV on acceptable terms and conditions for a possible transfer of the SR-125 Franchise. To accomplish these discussions, it was also determined that it would be necessary to conduct an independent review of information relative to traffic and revenue projections and to conduct an independent financial appraisal of the SR-125 franchise prior to making a final decision on a possible transfer. Per the Council's instructions, the City Manager directed Smith & Kempton, the City's transportation consultants, to solicit proposals from qualified firms to conduct a "peer" review and a financial appraisal. The Council was previously advised that there are three top firms in the nation capable of conducting an investor-grade analysis of traffic and revenue projects for this project. One of those firms is already under contract with CTV and a second firm has acted as advisor for one of the teams which submitted a design-build proposal to CTV and, therefore, declined to make a proposal to the City. Smith & Kempton have recommended the City hire the firm of Vollmer Associates, the remaining top firm in this area, to conduct the "peer" review. Vollmer is anxious to perform this review and has submitted a budget of $50,000 for this assignment. Staff concurs in this recommendation. Attached is a proposed scope of work for Vollmer Associates. With respect to the appraisal, two well-respected and competent firms responded to the solicitation. Those firms were Infrastructure Management Group, Inc. of Bethesda, Maryland and Public Financial Management of Newport Beach, California. Both firms were deemed to be highly qualified by Smith & Kempton, and interviews were conducted with representatives from each firm prior to making a decision on a recommendation. The interview team consisted of George Krempl and Cliff Swanson with Will Kempton and Mark Watts of Smith & Kempton. References for both firms were also checked and found to be acceptable. Staff recommends that the City hire the firm of Infrastructure Management Group, Inc. to conduct the financially-based appraisal of the SR-125 Franchise. The budget for this work is estimated at $130,000. Attached is a proposed scope of work for Infrastructure Management Group, Inc. Page 3, Item __ Meeting Date 11/7/00 While Infrastructure Management Group, Inc. is being recommended for the appraisal work, Public Financial Management was also highly qualified. If we move forward to the next phase we will need financial advisory assistance and Public Financial Management would be well qualified and competent to perform that service. Waiver of Consultant Selection Process Staff recommends that Vollmer Associates and Infrastructure Management Group, Inc. be engaged to do this work without soliciting alternative bids in accordance with the City's standard consultant selection process. As indicated above, there are a limited number of nationally recognized experts in these areas, only one firm was available for the traffic analysis, staff interviewed the two firms competent to do the appraisal work, the firms selected are uniquely qualified, and them is a need to proceed in a timely manner. Under these circumstances it would be impractical to solicit alternative bid proposals, and staff recommends that the consultant selection process be waived. FISCAL IMPACT: Total cost for these additional studies and services should not exceed $200,000. The funding source for this work will be the Interim SR-125 DIF, fund number 592. In order to cover the cost of these contracts and related staff costs, Council needs to appropriate $200,000 to new CIP project number STM348 - SR-125 Franchise Review. Attachments: A. May 2, 2000 Council Agenda Statement B. August 22, 2000 Council Agenda Statement C. Proposed Scope of work Vollmer Associates D. Proposed Scope of Work Infrastructure Management Group, Inc. E. Biographical Sketches for Public Financial Management, Infrastructure Management Group, Inc. and Vollmer Associates LLP HAHOME~ENG[NEER\AGENDA\I25ag~eementsI [ 7,DOC ~TTACHMENT ~.,,,~ COUNCIL AGENDA STATEMENT Item Meeting Date 5L2/00 ITEM TITLE: Report on Additional Information Regarding Options for SR-125 Implementation SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager ~/¢~" (4/5tbs Vote: __ No ~X ) At the meeting of April 18, 2000, Council considered a report on the pros and cons of public ownership of Toll Road SR-125 by Smith and Kempton, governmental relations consultants. Council directed staff to come back as soon as possible with a more comprehensive report on issues and the possible JPA. RECOMMENDATION: That Council accept the report and direct staff to spend an adequate effort to investigate the necessary actions and commitments needed for the City to be involved in a public Toll Road. BOARDS/COMMISSION: Not applicable. DISCUSSION: The construction of SR-125 is absolutely necessary for the orderly development of Chula Vista and the South Bay. Chula Vista has supported and worked with California Transportation Ventures (CTV) for 10 years to site and build a Toll Road in the SR-125 Corridor. The reason that Council has supported a private Toll road is because funding was not available for the foreseeable future to build a freeway. Even though a Toll Road was not preferred, a Toll Road was superior to no road. It is expected that the Federal Highway Administration (FHWA) will sign the Record of Decision (ROD) this first week of May. That action in essence will allow the project to begin the design and property acquisition phase and allow CTV to finalize financing for the projecL As was mentioned in the last report, CTV has expressed an interest in converting this project to a public project if private financing proves to not be feasible. Council raised several concerns at the meeting of April 18,2000 in response to that report. Issues raised included: ,, How will the City and General Fund be protected if a JPA is created? Is legislation necessary to form a JPA and how long would it take? How would the financial advisor be selected? What are issues involving financing? What type of liability is the City exposed to? o Am them more disadvantages than mentioned in the previous report? II Page 2, Item / ~ Meeting Date 5/2/00 Most of the above concerns will need a concerted effort taking considerable time to develop a full response. They are the exact issues that staff and consultants would address before making a final recommendation to Council on other options to a private Toll Road. Staff wants to assure Council that until a decision is made to pursue a public road, the City will experience no cost to the general fund. The city will also not receive any liability or risk while examining these issues. There will be some staff and consultant costs involved, that can properly be charged to non- general fund accounts. Attached as Exhibit 1 is the updat&d report by Smith and Kempton. Exhibit 2 is the original report by Smith and Kempton submitted at the meeting of April 18,2000. Will Kempton will be at the meeting to answer questions of the Council. Exhibit 3 is a letter from CTV requesting the City to investigate alternate financing. FISCAL IMPACT: At this point the only fiscal impact may be consultant costs, that can be included in an existing contract with Smith and Kempton. H:~IOME~ENGINEERL~kGENq) A\sr 125~jpI.doc Smith & Kempton Consulting and Governmental Relations MEMORANDUM To: Mr. David Rowlands, City Manager City of Chula Vista From: Wit] Kempton and Mark Watts Date: April 26, 2000 Subject: Additional Information Regarding Options for SR 125 Implementation Following the Council's consideration of the question as to whether it makes sense to explore potential options for implementing the SR 125 toll facility, you asked us to expand our previous report to include some of the downside impacts of the City's possible involvement in an altemative financing/operating arrangement for the toll road. First, we want to reiterate that the Council is not being asked at this time to decide on an alternative approach to implementing the SR i25 facility. We do believe it is prudent for the City to investigate other alternatives should private financing delay the project significantly or the City discovers that the needs of the public are better met through other financing mechanisms. The recommendation to examine other alternatives is based on the undeniable premise that construction of SR 125 is extremely important to the economic vitality of the City of Chula Vista and will have significant positive impacts on traffic circulation within and through the City. Recognizing the importance to the City of early completion of this facility, we are recommending that the Council authorize an exploratory review of alternatives to project implementation which might be acceptable in the event that the current franchisee cannot proceed or runs into substantial delays in moving forward on this project. It is also possible that an alternative approach may provide more benefits to the City and its residents, a potential we want to fully explore. We stress that the objective here is to examine various alternatives and to more explicitly determine the pros and cons of a potential public structure for financing and/or operating a SR t25 facility. We are not asking the Council to comm/t to an altemative structure, but to authorize an exploratory review of possible options. Our previous memorandum outlined some of the benefits which might accrue under a public structure. Obviously, there are also potential drawbacks to a larger public role. Among these drawbacks is the potential for the political perception that govemment is assisting the private sector. Depending on the structure of any financing package, there would be a financial risk to 980 Ninth Street, Suite 156(I Sacramento, CA 95814 Telephone (916) 446-5508 FAX (916) 446-I499 April 26, 2000 Page 2 any involved public agencies which doesn't exist today. Another significant negative to increased involvement has to do with the inherent liability exposure which would come with a direct role in the project. Maintenance and reconstruction responsibilities could also increase that financial exposure; however, in Orange County, the public agencies involved in the toll corridors there obtained legislative relief assigning those responsibilities to Caltrans. In short, there are potential drawbacks to a larger City role in this project. However, some of the benefits we outlined in our memorandum would offset some of these risks. Public ownership through a Joint Powers Agreement, for example, may mitigate the City's direct liability for some of the issues discussed above. Given the timeline we are looking at for project implementation, we believe that now is the time to explore all prudent alternatives for getting this facility in place. As we anxiously await a Record of Decision from the Federal Highway Administration, CTV is gearing up to put a financing package together to begin construction of the toll road. At this point, CTV is looking at two basic options: financing through the private market place, and a possible tax exempt financing through creation of a 501(c)(3) organization and a transfer of ownership to the non- profit corporation. If CTV is successful in obtaining financing, and construction can move forward quickly, there may be other benefits (earlier retirement of debt, public control of toll rates, etc.) that suggest a larger role for the City in any event. We are not advocating for that expanded role at this time. We are simply suggesting that the City take a more in depth look at alternative financing and operating structures in parallel with CTV's efforts to pursue financial backing. What we are talking about hem is an exploratory effort. We have no preconceived perspectives on this subject and no predetermined solutions to recommend at this time. However, in the event that CTV does have difficulty in the financial markets, or if we are looking at undue delay for any number of masons, it makes perfect sense that the City would be prepared to at least consider other options for getting this facility in operation. For its part, CTV has indicated a willingness to look at a public financial and/or operating arrangement to bring this project to conclusion should the City determine that it is in its best interest to participate in such an arrangement. CTV fully intends to pursue private financing or a tax-exempt strategy as outlined above. However, the organization is willing to consider other options as well, and the Council received a letter from CTV on this subject prior to the last Council meeting. The review that we are proposing will be conducted at no additional expense to the City as the cost will be covered under our existing contract. Given the importance of this project to the City of Chula Vista, we think it is in the Council's best interest to at least look at other options for project implementation. EXHIBIT ~,~ CII'Y OF J CHULA VISTA MEMORANDUM April 14, 2000 To: The Honorable Mayor and City Council From: David D. Rowlands, ity Manager Subject: SR-125 The attached white paper prepared by Smith & Kempton will be presented by Mark Watts and Will Kempton at next Tuesday's Council meeting. The intent of the paper is to allow the Council to fully discuss the ramifications of public financing of SR-125 and to give the Council the opportunity to give direction to staff on this issue. DDR:mab Attachment ~,PR-14-OQ I§:0~' FROM- %688 POZ/06 F-gO9 Smith & Kempton Consulting and Governmental Relations MEMORANDUM T~. Mr. David Rowlands, City Manager City of Chula vista Frorr~. Will Kempton and Mark Watts Date:. April 14, 2000 Subject. Pros and Cons of Public Financing of SR 125 You have requested that we prepare this document to examine the arguments for and against the public financing of the SR 125 Toil Facility, As we have recenUy learned~ the present franchise holder for the right to construct and operate the SR 125 Toll Road, California Transportation Ventures, 1;nc. (CIA/), has indicated that they are considering the possibility of selling their interest in the franchise. Moreover, they have already initiated an exploratory effort to seek prospective buyers, including potential non-profit, public benefit corporations and public entities. With this development, it is important for the City Council to review and understand the merits of possible public ownership and to further consider the potential of the participation of the City in such a venture. BACKGROUND SR 125 is a ten-mile, four lane (ultimately 10 lane) facility that is intended to connect 1-905 in Otay Mesa with SR 154. The project is being developed under the auspices of the private developer, CTV, who was awarded a franchise by Caltrans in a statewide competitive bid process. Legislation approved in 1989 (AB 680) authorized Caltrans to un~lertake a public-private demonstration program to explore the receptivity of the private sector to invest in California infrastructure. Four projects were authorized under the enabling legislation, producing franchises around the state: (1) SR gl Express Lanes in Orange County, (2) Mid-State Toll Way in Contra Costa County, (3) SR 57 Toll Facility in Orange County and (4) the SR 125. Of these four projects, only the SR 91 Express Lanes project has become operational, with a start date of 1995. - SR 125 is on-line to become the second project to move into the financing, design, construction and operational phases. The environmental clearance process is nearing 980 Nind~ Street, Stt[te 1560 Sacramento, CA 95814 Telephone (916) 446-5508 FAX (916) 446-1499 APR-14-O0 15:o8 FROM- T-$86 P.03/08 F-go~ completion with a Record of Decision (ROD) for the NEPA document anUcipated to be approved shortly by the federal government. This was preceded by State approval of the CEQA document and formal adoption of the highway route. In the normal sequence for highway/toll .way development, the developers would next begin to pursue financing, design, and construction of the project. With the ROD in hand, CTV is expected to issue RFO.'s for potential design-build contracts. However, at this juncture the principals are considering selling their interests in the franchise. It is our view that in addition to responding to re-focusing of priorities by the parent companies, CTV also sees at least two other advantages to a potential this policy shift at this time: (1) C1'V has spent about ten years and considerable funds to bring the franchise to this point and a sale at this time would allow them the maximum opportunity to capture the investment to date; and (2) transfer to a public benefit corporation or public entity would result in less expensive financing, as will be ouUined below. One recent development with respect to one of the other AB 680 "demonstration" projects (the SR 91 Express Lanes) has important ramifications for the Council to consider. The holders of the SR 91 franchise, forming California Private Transportation Company, after becoming operational, de[ermined that they wanted to off-load their interest in the franchise and to re-coup their investment and opportunity costs of lost future profits. In their case, the approach they chose was to transfer their interests to a non-profit, public benefit corporation called Newtrac. They were able to obtain Caltrans approval of the transfer of interest, but as they attempted to finance the exchange, both the public entities involved and the bond market alike raised significant questions about the propriety and the viability, respectively, of the project. The resulting controversy, which drew in the Davis Administration, the Legislature, and the Counties of Riverside and Orange, became so intense that the CPTC withdrew their offer to sell and are presently considering their alternatives. This controversy is fresh in the minds of the Davis Administration and the Legislature, and it is our belief that a transfer to any entity other than a public entity will raise considerable alarm and opposition. CONSIDERATION OF= pUBLiC FINANC.[NG OF SR 12~ Financing ~ Tax-exempt bonding= California state law authorizes governmental entities to voluntary exercise their existing powers jointly. Tn doing so the law expressly declares that such joint powers agencies may issue "tax exempt" bonds to finance capital costs for building projects. The advantage of this to a public entity is that the issuer's costs for debt service and related reserves and sinking funds are less costly, resulting in more flexibility for the public entity. For example, the APR-14-OQ 15:08 FROM- T-688 P 04/DS F-gDg entity can choose to reduce the redemption period, financing the bonds over 20 years, rather than 30 years. Or, the entity can reduce the costs, in this case, the tolls, that comprise the revenue stream for redemption purposes, In contrast, transfer of the franchise contemplated by CTV to another private entity would bear the relaUvely higher burden of non-exempt, taxable bonds. However, there is a special potential mitigating circumstance in this instance, in that CTV has secured a specific federal authorization qualifying them to access a new federal innovative financing program CTIFiA), which offers a line of credit at reduced rates. Property Taxest Because the projects authorized under the AB 680 demonstraUon program are private improvements on land that is leased from the state, they are subject to a possessory interest tax, which is "in-lieu" of the local property tax. According to Caltrans staff, the County of Orange collects in excess of $1 million annually for the SR 91 project, and based on the costs for the improvements to SR 125 will result in taxes on the order of the $3 million. In contrast, a public entity would be able to construct and operate the SR 125 facility without this "property tax" burden, resulting in a significant cost burden being lifted of the total costs financed by tolls. Califomia joint powers law expressly exempts joint powers authorities from property taxes. > State participation: One source of potential assistance in reducing the cost burden for this project would be a grant of state funds. It is well established that the state is experiencing explosive revenue growth and a legitimate public purpose could be justified in providing direct funding assistance in the form of a grant because it would reduce the cost to the general public users of the facility. However, as discussed above, we believe that the SR 91 project has "poisoned the well" in the near term for state involvement or assistance for AB 680 projects in general. It is not clear that this same level of resistance would exist for a project that has been taken over by a public entity. At the very least, a good case can be made, in the event that SR 125 is transferred to a public entity, that this facility should enjoy the same level of state benefits that are involved in the three toll roads operated by the Transportation Corridor Agencies in Orange County. These roads are operated by a legislatively authorized joint powers agency and the enabling legislation expressly provided that the state would assume the responsibility for costs of maintenance and policing. Clearly this is not a direct benefit that would flow to a public entity, but this would be an achievable task that would benefit the project by reducing maintenance and policing costs on an ongoing basis. APR-14-00 15:D8 FROM- T-$88 F05/06 F-g08 Governance > Local Control: Any operator of a toll road facility in California, public or private, will be subject to intense public scrutiny simply due to the unique nature of the facility in contrast to California's long-standing involvement with toll*free freeways, establishing a public entity to control and operate SR 125 will ensure that the users and the traveling public will have a high degree of responsiveness to issues of operational flexibility and quality of the toll road experience. This is not to say that a private operator would not be as responsive, just that the public entity would have a project that is not perceived to be motivated by the "bottom-line" only, and the pubic would view local officials as having a stronger interest in being responsive. Limited city obligation: One benefit to California joint powers law is that it contains a bar on obligating the "parent" local government ageno/from obligations that the joint agency are committed to. This would free the city to participate in a public acquisition of the SR 125 facility without concern that the City would be somehow "underwriting" the acquisition. Thus the cio can consider the relative merits of public acquisition, whether as participants or not, without concern that their decisions would obligate the city to a burden that is too costly. POLTCY CONTROL Toll rates: The most probable scenario for a public acquisition of the SR 12S facility would involve the sale of bonds to purchase the franchise rights and the financing of the design, construction and initial start-up costs of the toll facility. The bonds would be paid by the revenue stream from the tolls that would be imposed. However, as we have seen above, there are several aspects of public ownership that are beneficial in that they significantly reduce the costs to operate the facility, and, thus, in the absence of a profit motive, can require tolls at a lesser rate than would otherwise be required. A locally established public agency would be in a position to control the toll rates in a manner that is more responsive to local public interest. Term of Franchise: The franchise term granted under AB 680 for each of the four franchises is 35 years from the start of operations. Under private ownership, the franchise holder will be responsible to bond holders and corporate parents to maximize the return on investment for the maximum allowable period. In contrast, a public agency will have the opportunity to negotiate a term less than the fully allowable 35 years, if it is financially sound. This would provide a APR-14-{)O 15:0g FRO~ T-SBB P OS/OS F-gng tangible benefit to local residents and toll users to enjoy the benefit of SR :125 flee of tolls at an earlier time than would otherwise be possible. DISCUSSION The benefit to the City of the advancement of SR 125 as a result of the flexibility granted under AB 680 cannot be understated. If required to rely on pre-existing state and local resources, without the involvement of the private sector, local residents would not be on the verge of receiving the transportation benefit of SR 125 for another decade or more. Nevertheless, given that the current franchise holders have determined to explore the possibilities of transferring their interest to a willing buyer, if available, the question arises as to whether the public agencies can organize themselves to offer to acquire the franchise rights and whether this is of benefit to the City and local residents. Clearly, there are major benefits to public acquisition of the franchise and facility, principally in the ability of public agencies to access cheaper financing. This in turn allows a public agency to turn the reduced costs into a local benefit by possibly offering access to the facility at reduced rates or freeing up the facility from tolls at an earlier point in time, both policy considerations not available under private control. i ' 1 Apdl 18, 2000 t~ The Honorable Shidey Horton Mayor, City of Chula Vista ~ er. ad~w 276 Fourth Avenue ~ 1600 Chula Vista, California 91 910 92101 619,338,~5 FAX 619.,338~123 Dear Mayor Horton: We have received and reviewed the Memorandum dated Apdl '14, 2000, from Smith & Kempton to the City of Chula Vista, explaining the benefits to the City of acquisition of the SR 125 South Project Franchise. We thank you for the opportunity to review this document, which was sent to us at the request of the City Manager and which we understand will be presented to the City Council on Apd118. As you are aware, Califomia Transportation Ventures Inc. (CTV) currently owns the SR 125 South Franchise and is planning to finance the project through privately placed financing. Our current schedule calls for close of financing in the fall of this year, and construction commencing in late 2000 or eady 2001. VVith the aid of the recently awarded Federal TIFIA loan and related credit enhancements, the prospects for expediently moving forward look highly promising. The support of the City of Chula Vista throughout the planning, development, and environmental clearance stages of the SR 125 Project has been exemplary, and we appreciate the continuing efforts that you and your staff have maintained to assure that the project moves forward. The project development process to date has been an exercise of creative public-private partnership of which we can both be proud. To our mutual credit, the project was touted at the Amedcan Road and Transportation Builders (ARTBA) annual meeting in November '1999 as one of the two best examples of cooperation between local government and the private sector currently underway in the United States. We appreciate and understand the City's potential interest in acquiring the Franchise as we jointly move forward with implementation of the project. As you know, CTV has carded forward a public financing option as a complement to the pdvate financing structure to preserve our options at the time of project financing. A tax-exempt public financing structure could provide additional benefits to the traveling public by potentially Iowedng toll rates or allowing eadier retirement of project debt. While our nominal public finance option has assumed the common approach of utilizing a not-for-profit structure as a conduit for tax-exempt ,.--- financing, we have also considered the possible acquisition of the Franchise by an existing government or special-purpose joint powers authority. Should the public financing option prove to be a more viable financing structure than the nominal pdvate structure, CTV will be amenable to receiving an appropriate indication of interest or offer for purchase from the City. We recognize that a partnership with the City of Chula Vista or City-sponsored JPA could provide substantial positive benefits for both the City and C'IV. Thus, while we are continuing to pursue the pdvate financing structure, we will commit our full cooperation to the City and/or its appointed agents in working toward the development of a viable public ownership structure upon confirmation by the City of its interest in purchasing the Franchise. To consider a public ownership and financing option, a number of factors will, of course, be important to CTV. These factors include, at a minimum (1) overall monetary value of the Franchise at the time of transfer; (2) contractual arrangements with C'IV and its parent organizations to continue project development and undertake construction management and project operations; ' and (3) the timing and structure of payments for acquisition and development. CTV is willing to entertain an indication of interest or offer from the City that provides benefits commensurate with the value of the Franchise, and we are willing to enter good-faith negotiations with the City and/or its agents to reach this _. goal. We look forward to receiving a communication or initial offer from the City, and we reiterate our commitment to seek a financing structure that is mutually beneficial to the City and to Califomia Transportation Ventures, and ultimately to the users of SR 125. Sincerel~/.j~ Mi~neider " Chairman ATTACHMENT COUNCIL AGENDA STATEMENT 'Item Meeting Date 8/22/00 ITEM TITLE: Resolution /,Oc ~ Directing the City Manager to conduct further analysis regarding the purchase of the SR-125 Toll Road Franchise SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager'~f''~'d (4/Sths Vote: Yes__ No X ) The City of Chula Vista has retained the firm of Smith and Kempton to assist the City in efforts to assure that SR-125 is constructed in a timely manner. This facility is a crucial transportation element to serve the new developments in Eastern Chula Vista and the entire eastern South Bay of San Diego County. At the Council meeting of May 2, 2000 Council directed staff to investigate the necessary actions and commitments needed for the City to be involved in a Public Toll Road. The attached report from Smith and Kempton outlines the necessary actions and studies required before considering entering into a JPA for ownership and Operation of the Toll Road can be made. RECOMMENDATION: That Council: 1. Proceed with further discussions/negotiations with CTV on acceptable term and conditions for a transfer of the SR-125 Franchise. 2. Request CTV to make available all data and information necessary for a full "peer" review subject 3. Authorize the City Manager to use appropriate funds to hire consultant resources to review traffic and revenue forecasts, to conduct a financial appraisal and to retain outside legal resources when necessary. 4. Enter into discussions with consultants to conduct a "peer" review of information used by CTV in making traffic and revenue projections for this project. 5. Enter into discussions with a financial consultant to conduct a financially based appraisal. 6. Engage outside legal counsel, when necessary, to advise the City on legal issues related to a public buyout. 7. Enter into discussions with SANDAG, the County of San Diego and other appropriate jurisdictions regarding potential creation of Joint Powers Authority. 8. Meet with the City's legislative delegation to discuss options and to gain support for the t~'~ City's objectives. Page 2, Item __ Meeting Date 8/22/00 9. Meet with Administration officials. CalTrans Business Transportation &Housing Agency State Treasurer Governor's office 10. Direct staff to explore the need for legislation and to identify any statutory changes which might be required. 11. Direct staff to develop a schedule for implementation. BOARDS/COMMISSION: Not applicable. DISCUSSION: Smith and Kempton have completed their analysis to determine if the City should take further actions to acquire the Franchise from California Transportation Ventures (CTV) for the SR-125 Tollway. Their report is attached. Due to the many issues raised in the report staff believes it crucial for the City to retain the necessary expert Consultants as recommended in the report. SR- 125 will be a very expensive facility which will need bonded indebtedness for 30 years. The sole source of revenues to service the debt will come from the Tolls. It is hoped that if it becomes a Public Tollway, more grants and assistance from the State and SANDAG will be forthcoming which will shorted the length of time the facility would have to charge tolls. As mentioned in the attached report further analysis is needed by firms having expertise in areas not provided by Smith and Kempton. The expertise needed includes: An independent review of the proposed revenues that would be generated by the Tolls. In order to determine the toll revenues, a traffic volume study needs to be performed in order to project toll revenues. Wilber Smith and Associates did this analysis for CTV; however, the City needs a review of those results by a firm representing the City. There are only 3 firms in the nation that are considered capable of conducting an investor grade product. Wilber Smith was one of those firms. The City should contract with one of the other two firms. This study will determine the financial strength of the project. ~, The City needs a financial based appraisal of the value of the Franchise. CTV has made an initial offer. The City needs to have a good understanding of the value of the Franchise in order to enter into negotiations for it's purchase.. Finally if the City decides to seriously enter into negotiations to purchase the Franchise, Smith and Kempton believe that we may need legislation to assist us in delivering the project. Page 3, Item __ Meeting Date 8/22/00 FISCAL IMPACT: At this point a funding source and total cost for these additional studies and services are not known. Staff believes that costs could range between $400,000 and $500,000. If the Interim SR-125DlF is amended then these funds could be used for this purpose. Any contracts with consultants will need Council approval. When staff returns for contract approval, a funding source for those contracts will be recommended. Staff will also be preparing material and setting a Public heating to modify the Interim SR-125. Attachment File: 0750-95-HT003 H:~HOMEkENGADMINXWORDJPL~sr 125j pasmdy.doc -,. Preliminary Review Ownership Options 4.. · State Route 125 South Toll Facility Chula Vista, California Introduction The SR 125 South project is a proposed new highway that will provide critical north-south transportation capacity to southern San Diego County thereby relieving existing and futura congestion on city streets and arterials and on 1-805 while serving the rapidly growing eastern territories of the City of Chula Vista. Eastem Chula Vista represents the largest tract of land available in the San Diego region for residential development, and accessibility to the eastern area is a critical factor in sustaining the City's economic vitality. In addition, the City strongly supports the location of a University of California in Chula Vista, and will need transportation facilities in place to serve the campus. Without adequate north-south access serving this area, the City's economic development and its long-term planning objectives will be severely impaired. The current estimated cost of the SR 125 South project is approximately $490 million. About $125 million of this cost is being paid with public funding through the Transnet program administered by the San Diego Association of Governments (SANDAG). This money will be applied to the northern 1.5-mile segment and the interchange with SR 54. The remaining 9.5 miles of roadway is currently planned to be constructed and operated as a privatized toll road under a franchise agreement between a private consortium and Caltrans, the State Department of Transportation. Environmental studies for the project were completed in 1999 and the Record of Decision approving the project was issued by FHWA in June of this year. The anticipated opening date for SR 125 is late-2003. California Transportation Ventures Inc. (CTV), the private consortium holding the franchise agreement for development of the SR 125 South project, is proceeding with selection of a "design-build" contractor and plans to seek financing for the project later this year or early next year. CTV is looking at two options for ownership of the toll facility, including private ownership/control and ownership by a not-for-profit corporation. The primary benefit of a not- for-profit ownership structure is the access to lower cost, tax-exempt financing for the project. At this time, both ownership options are being considered. A third option has recently surfaced whereby the City (or a joint powers arrangement with other jurisdictions) would purchase the franchise agreement from CTV. At the request of the City, CTV confirmed its willingness to consider a proposal from the City to purchase or invest in the Franchise, and June 6, 2000, CTV submitted an Indicative Term Sheet to the City which outlined terms and conditions for the sale or transfer of the SR 125 Franchise to the City or a Joint Powers Authority. The purpose of this preliminary review is to determine whether the City should proceed with a -. more in-depth examination of pursuing a public ownership, or participation in a tax-exempt financing of the SR 125 South Franchise. A mom detailed investigation, if authorized by the City Council, would involve a peer-level review of traffic and revenue forecasts for the SR 125 toll facility and a financial appraisal to determine a reasonable value range for the existing franchise. This information will be necessary prior to final consideration of a public purchase option so the council can make a fully informed decision before pursuing this matter further. Conclusions Information included in this repor~ was obtained from a variety of soumes, including data provided by CTV. To gain access to this information, Smith & Kempton signed a non-disclosure agreement with the franchisee. While we have reviewed CTV's current financial plan, and our conclusions reflect that review, we must respect the confidentiality of this information. Based on our preliminary review of the facts and circumstances associated with the SR 125 South Toll Road and considering the City's desire to complete the facility as soon as possible, w~e believe that further examination of a public ownership option is warranted. We base this conclusion on our assessment of the viability of a public buy-out of the existing franchise and the public benefits which could accrue from such an arrangement. We also have concluded that conducting further analysis now may offer the most expeditious means of completing the SR 125 project in the event CTV is unable to proceed in a timely manner with project construction for whatever mason. It is our further conclusion that the current Indicative Term Sheet presented by CTV does not include the appropriate terms and conditions which would be necessary for City acceptance of this offer. It should be noted, however, that CTV has expressed a willingness to consider adjustments to the terms and conditions contained in their June 6th communication. Recommendations If the City Council determines that the benefits of public ownership, i.e., greater control over operation of the project, the lower cost of financing of construction resulting in the possible reduction in toll charges to the public both with respect to toll amounts and the length of time tolls are in effect, and possibly the earlier completion of SR 125, are in the City's best interest, a public ownership option should be analyzed in greater detail. Accordingly, we make the following recommendations: o Proceed with further discussions/negotiations with CTV on acceptable terms and conditions for a transfer of the SR 125 Franchise. · Request CTV to make available all data and information necessary for a full "peer" review subject to assurances of confidentiality in accordance with State Law. · Authorize the City Manager to use appropriate funds to hire consultant resources to review traffic and revenue forecasts, to conduct a financial appraisal and to retain outside legal resources when necessary. · Enter into discussions with consultants to conduct a "peer" review of information used by CTV in making traffic and revenue projections for this project. 2 · Enter into discussions with consultants to serve the City as financial advisor and to assist the City in selecting appropriate aappraiser resources. · Engage outside legal counsel, when necessary, to review the terms of any deal and to advise the City on legal issues related to a public buy-out. · Enter into discussions with SANDAG, the County of San Diego and other appropriate jurisdictions regarding potential creation of Joint Powers Authority. · Meet with the City's legislative delegation to discuss options and to gain support for the City's objectives. · Meet with Administration officials to brief them on the City's decision to examine posible public ownership. Caltrans Business Transportation 8,: Housing Agency State Treasurer Governor's office · Direct staff to explore the need for legislation and to identify any statutory changes which might be required. · Direct staff to develop a schedule for implementation. Background The SR 125 South project involves eleven miles of new t~ighway facility in southern San Diego County. The proposed highway has been an integral part of the Regional Transportation Plan for San Diego County since 1984. It will relieve existing and growing congestion on local arterials and help maintain LOS required by City ordinance. It will provide regional transportation service to the rapidly growing areas of eastern Chula Vista and the Otay Mesa community within the County and City of San Diego. In conjunction with the planned extension of SR 905, this roadway will also help serve the extensive industrial development on both sides of the intemational border with Mexico. According to Caltrans and the San Diego Association of Governments, there are no other major transportation infrastructure projects planned for the transportation system in the Southbay region of San Diego County that will provide adequate north-south capacity to serve the current and future planned land use development. The southern 9.5-mile segment of the project is being developed as a privatized tollway by California Transportation Ventures Inc. CTV is the private consortium granted a franchise by the State of California to design, construct and operate the SR 125 facility pursuant to AB 680, legislation adopted in 1989. CTV was formed in 1990 to develop and operate the SR 125 South Roll Road, and is the managing partner of the San Diego Expressway Limited Partnership (SDELP). CTV is a corporation organized under the General Corporation Law of California, and SDELP is a California Limited Partnership. For purposes of this report, we will refer to CTV and SDELP intemhangeably. Under the terms of AB 680, CTV was one of four consortiums awarded the right by the State of California to develop a toll road within the State. The major players in the CTV consortium include Parsons Brinckerhoff, a large transportation engineering firm, and Egis Projects, a French company specializing in the financing, design, construction and operation of tollways. On January 6, 1991, a Development Franchise Agreement for a Privatized Transportation Project was executed between CTV and Caltrans. The franchise agreement gives CTV the exclusive rights to develop, finance, design, construct, lease and operate the SR 125 Tollway. In August of 1992, the Development Franchise Agreement was assigned to SDELP. In December of 1992, CTV and Caltrans executed an agreement for Caltrans to perform environmental studies using engineering information developed by CTV. A Draft Environmental Impact Report/Statement was circulated in July of 1996 and a public hearing was held later that summer. In 1998, a new endangered species, the Quino Checkerspot Butterfly, was discovered in the project right-of-way. This discovery prompted the preparation of a supplemental environmental document, which was circulated in April of 1999. The Final Environmental Impact Report/Statement was issued in February of this year. Final environmental approval under State law came later that month, along with route adoption by the California Transportation Commission. A Federal Record of Decision was signed in June. The project is currently facing litigation filed on behalf of Preserve South Bay, a local community group opposed to the highway. Pursuant to an amendment to the franchise dated September 27, 1997, the franchise was extended to include construction of the publicly funded portions of the highway known as the "Gap" and the "Connector." The "Connector" is the 2-mile northerly segment of SR 125 South and interchange between SR 125 South and SR 54, and the Gap is the main line portion of SR 54 through that interchange. SANDAG has agreed to reimburse SDELP for the costs of designing and constructing these portions of the project. One other significant feature of the SR 125 project involves Federal credit enhancement which has been provided by the U.S. Department of Transportation. In September of 1999, the project was awarded $127 million in credit enhancement under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program. This program was established in part to promote private investment in transportation projects. The credit enhancement is in the form of a $94 million direct loan and a ten-year $33 million line of credit. SR 125 was one of five projects selected nationwide for credit support under this program, and the award should be a very positive factor in attempting to gain financing for the tollway. CTV is in the process of selecting a "design-build" contractor. Requests for qualifications were distributed in May of 1999, and proposals, including lump sum prices for design and construction are due on September 15, 2000. The finalists in this process are well-established, experienced contractors, including Miramar Constructors (Modem Continental Construction, C.C. Meyers, Roadway Construction) with URS Greiner Woodward Clyde; The Washington Group (formerly 4 Morrison-Knudsen) with Erreca, Carter & Burgess, and AGRA; and Otay Transportation Constructors (Granite Construction Co. and FCI Constructors). The next step in the process for CTV will be to secure financing for the project. Traffic and revenue projections are currently being updated by Wilbur Smith and Associates, the transportation planning and engineering firm hired by CTV to develop these projections. CTV intends to seek financing for the project by year's end. In concluding this background discussion, it is important to recognize the politics of toll roads in California. What has happened on the SR 91 toll facility in Orange County and the ongoing controversy and litigation surrounding that project will have a marked impact on any attempts to accomplish a public ownership of the SR 125 franchise. The Governor's remarks when he eliminated the allocation earmarked for public acquisition of the toll facility indicated his opposition to the use of state funds for this purpose. If the City decides to pursue public ownership of the SR 125 facility, it will be absolutely imperative that we work with the State Administration and our local legislation delegation to gain support for the concept of helping the City not the private developer. Current Financial Plan The project financing structure proposed for the SR 125 tollway is similar to many other toll road projects that have been financed in the past decade, including the San Joaquin and Foothill Eastern Roads in Orange County. Essentially, a combination of bonds, equity investment and earned interest will provide the financing base for the project. The SR 125 Preliminary Financial Plan prepared by Salomon Smith Barney (SSB) delineates the ownership options which are being considered. Both ownership/control by the sponsor and ownership by a not-for-profit corporation are being considered at this time. The obvious reason that a not-for-profit structure is being looked at is to allow access to the lower cost, tax-exempt financial market. It is expected that the final decision on this issue will be made at least three months prior to anticipated financial closing. The SSB report also indicates that the not-for- profit approach can also be considered later as an "exit strategy" for the sponsors, after the opening of the project to traffic: the Project can initially be financed with taxable debt and equity, and if performance is sub-par, then the sponsors can sell the Project to a not-for-profit corporation. The financing pi'an being proposed by SSB is similar whether the sponsors retain ownership/control or ownership is through a not-for-profit corporation. The plan would involve selling a reasonable quality of debt consistent with requirements to obtain TII~IA enhancements, and to issue subordinated debt to ensure full utilization of the TIFIA credits. Any remaining costs would be funded with additional equity under the for-profit approach or a sponsor contribution repaid through additional subordinated debt under the not-for-profit approach. 5 1 The underlying assumptions that led SSB to recommend this structure are reliant on a number of very basic credit factors, some of which bear additional examination from the City's perspective. These factors are extracted directly from the SSB Preliminary Financing Plan. 1. Lien on all project revenues (primarily tolls) and debt and operating reserves and a trust deed based on interest in land and improvements; 2. Funding of previously-incurred development costs by CTV and affiliates; 3. Covenants imposing obligation on owner-operator to set tolls at a level to cover debt; and, 4. Pledge of project contracts relating to a.) Turnkey civil design-build contract, b.) Turnkey toll collection contract, c.) Operation and maintenance agreement, d.) Franchise agreement with Caltrans signed under provisions of AB 680. Although these factors are consistent with the types of investor assurances required in other toll road projects financed in the recent past, the City may question the need to tie themselves to pre- existing contracts as set forth in #4 above. Under a tax-exempt financing alternative, CTV/SDELP would sell their interest in the franchise and other development activities to the City or a JPA specially established to own the project. The sale price would be a negotiated value that is not greater than the fair market value of the sponsor's interests, determined through a fair market value appraisal. A portion of the sale price would probably have to be paid in cash and could be financed with tax-exempt debt. The sponsors could take the remaining amount through a subordinated, tax-exempt note with interest to be paid at a market rate. SSB's preliminary financing plan shows that the sponsors out of pocket development costs is paid in cash, and the remainder of the purchase price taken as a subordinated note. Analysis of assumptions Our review of the SR 125 South project is necessarily limited to the preliminary materials made available by the developers. While it is our view that the accuracy and validity of the estimates and projections inherent in support of the following major factors can only be determined by peer-level analysis, we have reviewed the available material and offer our comments. Growth and development: We find that the developer has undertaken a traditional approach consistent with the funding and financing of other similar toll-financed facilities constructed throughout the world. More specifically, the marketability of the SR 125 South Tollway bond issue is highly dependent on the developer demonstrating that this project will generate revenues in amounts sufficient to attract investors. For this and other similar projects, this task traditionally has been accomplished by engaging expert consultants to prepare projections of anticipated growth rates of population, economic activity and traffic demand in a given market area (Primary Market Area - PMA). CTV has engaged Wilbur Smith Associates 6 .... (WSA) for this activity, and WSA prepared an interim report in 1998 that they are currently updating as CTV prepares to take this project forward to financing. Our firm was afforded the opportunity to review the SR 125 South Tollway Traffic and Revenue Forecast prepared by WSA. Inasmuch as our work product serves as a preliminary review for the benefit of the City Council, and to respect the needs of the developer to preserve their proprietary interests, our review was undertaken under a confidentiality agreement b. etween Smith & Kempton and CTV. Consistent with this agreement, without divulging specific findings or projections, we have reviewed the document and are permitted to offer observations that are relevant to the task at hand. First, it is consistent with industry practice for the traffic and revenue forecasting consultant to utilize planning models and inputs developed by the local regional transportation planning agency, in this case, SANDAG. It appears that initial work by WSA was based on SANDAG's so-called "Series 8" traffic trip tables. These tables have since been superseded by SANDAG in the form of new tables, the "Series 9" tables. Sub consultant's working under WSA analyzed the Series 9 estimates prepared by SANDAG relating to population, housing, and employment and prepared, as well, their own independent estimates for the SR 125 market area that are higher than those projected under SANDAG's Series 9 and earlier models. We are unable to provide specific examples of these higher estimates, but we can conclude that there appears to be increased potential for traffic generation and, therefore, potential revenue for the facility than had previously been projected. This will require verification based on updated and reconciled Series 9 modeling numbers before a series of final trip tables and related revenue analysis can be performed. However, these findings must be reconciled by WSA with "corrected" Series 9 data before they can be used in the marketplace. Traffic Projections: A thorough review of pre-existing traffic trends is necessary as a means to understand travel patterns and trip data, which in turn are precursors to the modeling of future traffic demand and related potential for revenues. The WSA interim report builds on historical data collected by Caltrans with emphasis on I-5, 1-805 and State Routes 905, 54, 94, and 125. In the cases of both I-5 and 1-805, traffic roughly doubled in the period 1985 through 1994. In a similar vein, the traffic demand on SR 54 increased by more than 100 percent between 1985 and 1995. However, traffic counts for SR 94 did not mirror such high growth rates, although demand pressure was still significant. Finally, SR 125 between Lemon Avenue and Grossmont Boulevard experienced a continuous rate of annual growth of 3.5 percent in the decade ending 1995. (i.e. 41% total increase in 10 years) Demand was also reviewed at the three border crossings, and not surprisingly, it was determined that the number of passenger vehicles had increased significantly in a four year period ending in 1995, with an increase estimated to be 1.33 percent per year. Interestingly, the crossing with the most rapid growth rate was found to be Otay Mesa, 7 with annual increases in passenger vehicles in excess of 6 percent and trucks at nearly 9 percent. This data was then subjected to supplemental studies focusing on travel time and related distance traveled studies, which were useful in making adjustments in computer traffic models that were used by WSA in estimating traffic and toll revenue. Revenue estimates: As with the preceding factors, our review was performed on the 1998 WSA work product since an updated report being prepared for the benefit of the developers has not been completed. Basic assumptions contained in the revenue estimates include an initial four-lane facility, and an opening date of July 1, 2001. Further, WSA provides estimates for fifteen years of operations, operating under the presumption that a longer-term final report would be undertaken at the time of financing. The WSA report concludes that the first 6-month period of revenue operations, adjusted for an initial half-year of activity and the anticipated ramping up of demand as users adjust to the presence of the facility in the community, would produce $5.8 million. Looking forward to the third year of operation, WSA's report projects revenue to accumulate at mom than $23 million and by the fifteenth year of revenue operations, WSA shows annual revenue collections in excess of $55 million. We have also reviewed the SDELP preliminary financing plan that is directly tied to this preliminary revenue estimate. Based on this limited review, it appears that total operating revenues will provide an adequate revenue stream to support long-term debt service, operating costs and maintenance costs. Organizational/Ownership Options Them am essentially two basic options to consider in determining the ownership and operation of the SR 125 South project. Private Ownership - This option is the anticipated ownership option for this project. Ownership would remain in private hands, with CTV or another private entity holding the AB 680 franchise. This option could be accomplished on either a "for-profit" or a "not-for-profit" basis, with a tax- exempt structure being used to issue debt under the latter approach. On a "not-for-profit" basis, CTV would have to sell its interest to a viable non-profit organization eligible to take advantage of tax exempt financing. Currently, CTV is exploring both "for-profit" and "not-for-profit" alternatives and has been advised by its Financial Advisor that either approach is feasible in today' s financial markets. A decision will likely be based on the upside potential of sponsor ownership versus project economics and market conditions which may dictate the need for tax- exempt financing. Public Ownership - This option has several variations, including City ownership, City involvement in ownership through a Joint Powers Authority, or ownership by another public agency or group of agencies. All public ownership options, however, provide the benefit of being eligible for tax-exempt financing, possible property tax or "possessory interest" tax relief 8 and greater public control over toll operations. While it may be possible for the City of Chula Vista to accomplish a public buy-out on its own, them are other alternatives which involve less of a direct risk. One such alternative would involve creation of a Joint Powers Authority that is specifically established to take over ownership of the project. Under California law, two or more governmental units can form a JPA to finance and lease a toll road. The JPA could consist of entities under the City's control or the City could be involved with other entities as deemed appropriate. The JPA would be eligible for tax-exempt financing, and would be in a position to better control the amount of the tolls and the tenure of toll charges on SR 125. Another alternative which bears further examination would be to ask SANDAG, the San Diego County Metropolitan Planning Organization, to take a lead role in the public ownership process. SANDAG already administers the tolls on the Coronado Bridge and oversees the toll operations on Interstate 15 in San Diego County, so their involvement in this type of activity makes some sense. SANDAG could serve as the sole owner/operator, or could participate in a multi-agency JPA which could include the City. Since a substantial portion of the project is in the County's jurisdiction, it also seems appropriate that the County of San Diego be involved in any joint powers operation. Them is one other public ownership alternative which must be considered, and that is simply allowing the franchise to fail or expire. This would mean constructing the SR 125 South facility as a conventional state highway. Traditional funding for a project of this magnitude, absent an extension of the Transnet Program, would take longer to accomplish, but the city has resources that could finance an interim SR 125 facility to provide some additional north-south capacity until other funds become available. The City has already initiated planning efforts in the regard, and this year's City.budget includes $250,000 to begin the engineering work for an interim facility. Obviously, if the local transportation sales tax program (Transnet) is extended in the near futura, traditional financing for this project becomes more viable. Again, the key consideration hem is the additional time it would take to get a complete facility in place. A variation of this last alternative would be to delay any further review pending the results of CTV's efforts to obtain financing. If CTV is successful, the project can go forward without public involvement. If CTV is not successful, then the City could proceed to explore public ownership options but only after efforts to obtain private financing have failed. This would mean a delay of several months in being able to negotiate a purchase of the Franchise from CTV and implement the project, and the Council needs to consider this factor in deciding whether to proceed with additional analysis at this time. Potential Legislation The potential for legislation to enhance the fundability or attractiveness of the project is very limited in the near term. The State legislature is finishing up the last half of the 1999-2000 Session at the end of August, and no new legislation may be introduced until the next Session begins in early December. Even in that case, legislation introduced for consideration in 2001, 9 would not become effective as a change in law until January 1, 2002. If an Urgency Clause could be justified, then by two-thirds vote of both houses, a bill can become effective immediately upon Gubernatorial approval. Having said that, we believe that current law is adequate for establishing a Joint Powers Authority (IPA), which is one of the possible organizational structures discussed in this review document. However, it has not been unprecedented for entities exploring the benefits of existing JPA law to find it necessary to "tailor" JPA law by amendments to the act. We have identified an initial limited list of potential statutory amendments that could be beneficial to the transfer of the SR 125 franchise to a Chula Vista-organized JPA. These are not necessary to the formation of the JPA, but would be targeted at bringing this project to a level consistent with other state-authorized toll facilities, the Transportation Corridor Agencies of Orange County. Specifically, there are two potential legislative modifications that would provide financial relief to the project, which in turn would reduce the fiscal pressure on the revenue collections, resulting in a healthier project, a reduced toll collection period, or possibly reduced toll amounts. These amendments would be: > Recognize that SR 125 is a State Highway and recognize that the state has an obligation to cover maintenance costs; ~' Recognize the state's responsibility to cover law enforcement costs. In addition, if the City decides to further pursue a public ownership option, it would be our recommendation to monitor the progress of the "peer review" contractors to seek additional improvements to the law that would benefit the city. These might include organizational structure modifications such as membership, clarification of liability and the like. To reinforce our previous comments on the political aspects of toll roads, we need to make a final comment relative to any legislation which may be necessary. It has been very clear since. the public abandonment by the Governor of the attempted SR 91 transfer agreement late last year that the State's Chief Executive wants nothing to do with AB 680 projects. This sobering reality was driven home this summer by the Govemor's very pointed blue-pencilling of transportation appropriations for both the SR 57 and SR 125 franchise agreement projects. Conversations with the Governor's staff and state transportation officials subsequent to the Governor's actions indicate that any course of action requiring the Governor's involvement is in serious jeopardy. 10 RESOLUTION NO. ~000- ~/~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING THE CITY MANAGER TO CONDUCT FURTHER ANALYSIS REGARDING THE PURCHASE OF SR-125 TOLL ROAD FRA/qCHISE WHEREAS, the City of Chula Vista has retained the firm of Smith and Kempton to assist the City in efforts to assure that SR- 125 is constructed in a timely manner; and WHEREAS, this facility is a crucial transportation element to serve the new developments in Eastern Chula Vista and the entire eastern South Bay of San Diego County; and WHEREAS, at the Council meeting of May 2, 2000, Council directed staff to investigate the necessary actions and commitments needed for the city to be involved in a Public Toll Road. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby direct staff to take the following - actions: 1. Proceed with further discussions/negotiations with CTV on acceptable terms and conditions for a transfer of the SR-125 Franchise. 2. Request CTV to make available all data and information necessary for a full '~peer" review. 3. Authorize the City Manager to use appropriate funds to hire consultants to review traffic and revenue forecasts, to conduct a financial appraisal and to retain outside legal resources when necessary. 4. Enter into discussion with consultants to conduct a "peer" review of information used by CTV in making traffic and revenue projections for this project. 5. Enter into discussions with a financial consultant to conduct a financially based appraisal. -. 6. Engage outside legal counsel, when necessary, to 1 advise the City on legal issues related to a public buyout. 7. Enter into discussions with SANDAG, the County of San Diego or other appropriate jurisdictions regarding potential creation of Joint Powers Authority. 8. Meet wi~h the City's legislative delegation to discuss Options and to gain support for the City's objectives. 9. Meet with Administration officials: CalTrans Business Transportation & Housing Agency State Treasurer Governor's office 10. Direct staff to explore the need for legislation and to identify any statutory changes which might be required. ~-,, 11. Direct staff to develop a schedule for implementation. Presented by Approved as to form by John P. Lippitt John M. Kaheny Director of Public Works City Attorney [H:IHOME~A~FORNEY~RESO\ SR125 purchase analysis (August ~7, 2000 (1:59pm)] 2 OCT-31-O0 16:~4 FROM- T-4~8 P.D;'/03 F-1Q~ ATTACHMENT ~ - Scope of Work Vol[ruer Associates LLP 8. Scope of Work and Schedule: a. Detailed Scope of Work: Task 1. Review of Prior Reports Review all prior traffic and revenue material appropriate to the SR 125 project. Task 2. Conduct Kick-off Meetinqs Based upon review of prior reports, meet with City representatives to outline the critical steps that will be taken as part of the peer review. Evaluate reports and provide any early indications of key issues and findings. Task 3. Field Review Review area road network, undertake travel time runs, meet with City, County, MPO and State officials to secure independent traffic and socio-economic data. As part of this effort, undertake a review of land use and economic trends. Task 4. Meetinq with WSA Having accomplished a preliminary review, meet with WSA and provide a list of issues and concerns for their response. Have WSA run several sensitivities of their model based upon City specifications to test how it responds to varying assumptions. Task 5. Review WSA Response and Sensitivities Review and evaluate the matedal received from WSA, using such information to provide final judgments as to the traffic and revenue projections. Task 6. Prepare a Letter Report Summarizing findings. Task 7. Meet with City Representatives Provide a letter report to present and discuss the details of our work. OCT-31-ot~ 16:~6FRO~ T-468 P03/03 ic-lo~ A'II-FACHMEN~r , ~ ,...., Scope of Work Infrastructure Management Group, Inc. 8. Scope of Work and Schedule: Task 1. Establish Key Data Requirements Meet with the City and advisors to establish key data requirements. Task 2. Research and Development Begin additional comparable research and development of full valuation model. Task 3. Proqrarn Review Clarify with CTV their program, if appropriate and necessary. Task4. Proqram Adjustments Incorporate inputs from City and advisors and IMG research. Tasl< 5. Complete Preliminary Valuation { Conduct preliminary valuation and present to City representatives. Task 6. Refine Model ' Complete sensitivities and valuation model refinements. Task 7. Final Valuation Report Complete final valuation report (detailed presentation format) and present results to City_. Public Financial Management, Inc. General Background  Public Financial Management, Inc. ("PFM") was founded in 1975 on the principle of providing sound independent financial advice to state and local governments. Today PFM is the nation's leading municipal financial and investment advisory firm with over 195 employees and 20 offi~es throughout the United States. We are the largest and best capitalized financial advisory firm in the nation. PFM has three prima~y business activities: (~) transaction management related to debt issuance; (i~) investment advice and portfolio management for bond proceeds and working capital; and (iii) strategic consulting related to operating and capital budgets. 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PFM's only business is providing financial, investment and consulting advice re its clients. FROM- T-483 P.0Z/04 F-127 INFRASTRUCTURE MANAGEMENT GROUP, INC. Infrastructure Management Group, Inc. is a full-service infrastructure consulting firm specializing in improving the development, financing, management, and operations of transportation facilities, IMG's mission is to help its clients bridge the gaps between their infrastructure needs and financial resources by focusing on efficient project strategies, innovative financing, and value-for-dollar service delivery techniques. IMG offers integrated, highly insightful consulting services to ensure that each component of the planning, development, and operations process is influenced by the financial capacity, cost characteristics and revenue-generating environment of the infrastructure facility. The firm has experience in addressing asset transfers and acquisitions, project financing, organizational restructuring, and various levels of outsourcing and cost containment. The members of IMG's staff have advised a wide variety of local, state, national, and international public agencies, as well as numerous private sector clients, on the development and financing of new infrastructure facilities and on the forging of innovative public-private partnerships to advance infrastructure development and ~mprove services, IMG's national headquarters is located in the Washington, DC, metropolitan area at 4733 Bethesda Avenue, Suite 600, Bethesda, MD 20814, with additional staff in several North American cities. Our headquarters offices are conveniently located with access to Reagan National Airport, Dulles International Airport, and Baltimore-Washington International Airport. N~V-01-O0 18:~ FRo~ T-48~ P.0~/84 F-I~? - VOLLMER ASSOCIATES LLP Vollmer Associates is a multidisciplinary firm specializing in transportation projects. In addition to a staff of civil engineers, structural engineers, surveyors, amhitects and landscape architects, a group of some 40 transportation professionals in offices throughout the northeast United States provides the traffic engineering skills for the firm. Whit in this group are several individuals who are actively involved with their many toll facility clients. Vollmer's toll facility experience is both brad and diverse. The firm has worked since the 1970's for more than sixty clients in more than twenty states and Puerto Rico and internationally in Canada, Mexico and Central and South America. We have completed literally hundreds of toll facility assignments in every aspect of toll facility planning and operation. Toll facility experience falls into six general areas: 1. Toll Facility Feasibility Studies 2. Traffic and Revenue Consulting/Long-Term Assignments 3. Latin American Toll Studies 4. Electronic Toll Collection (ETC) 5. Operational Studies 6. Advisory Services Vollmer's traffic and revenue reports have been the basis for the sale of some 10 billions of dollars in revenue bonds. As a result of their experience in traffic and revenue studies, Vollmer Associates has become familiar with the staff and requirements of the rating agencies, national and international financial institutions, and major investment banking houses. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SELECTION OF VOLLMER ASSOCIATES LLP TO CONDUCT A ~PEER" REVIEW OF INFORMATION USED BY CTV IN MAKING TRAFFIC AND REVENUE PROJECTIONS FOR THE SR-125 PROJECT, AUTHORIZING THE CITY M3kNAGER TO NEGOTIATE A CONTRACT FOR THIS PURPOSE AND WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL WHEREAS, the City Council recently authorized City staff to enter into discussions with consultants to conduct a "peer" review of information used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projects for the SR-125 Toll Road Facility; and WHEREAS, Smith & Kempton, the City's transportation consultant, was requested to solicit proposals from qualified consultants to accomplish these tasks; and WHEREAS, Smith & Kempton have recommended the City hire the firm of Vollmer Associates who is anxious to perform this review and has submitted a budget of $50,000 for this assignment. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby waive the consultant selection process as impractical since there is a need to proceed in a timely manner and there are a limited number of nationally recognized experts in this area with only one firm available for the traffic analysis. BE IT FURTHER RESOLVED that the City Council does hereby approve the selection of Vollmer Associates LLP to conduct a "peer" review of information used by CTV in making traffic and revenue projections for the SR-125 project. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to negotiate a contract for this purpose. Presented by Approved as to form by John P. Lippitt Ji~ M. Kaheny( Director of Public Works Attorney RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SELECTION OF INFRASTRUCTURE M3kNAGEMENT GROUP, INC. TO CONDUCT A FINANCIALLY-BASED APPRAISAL OF SR- 125 FRANCHISE, AUTHORIZING THE CITY MANAGER TO NEGOTIATE A CONTRACT FOR THIS PURPOSE AND WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL WHEREAS, the City Council recently authorized City staff to enter into discussions with consultants to conduct a "peer" review of information used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projects for the SR-125 Toll Road Facility; and WHEREAS, Smith & Kempton, the City's transportation consultant, was requested to solicit proposals from qualified consultants to accomplish these tasks; and WHEREAS, Smith & Kempton conducted interviews with two well-respected and competent firms, Infrastructure Management Group, Inc. and Public Financial Management; and WHEREAS, both firms were deemed highly qualified and staff recommends that the City hire the firm of Infrastructure Management Group, Inc., who has submitted a budget of $130,000 for their work. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby waive the consultant selection process as impractical since there is a need to proceed in a timely manner and there are a limited number of nationally recognized experts in this area with only two firms available for the financially-based appraisal of the SR-125 Franchise. BE IT FURTHER RESOLVED that the City Council does hereby approve the selection of Infrastructure Management Group, Inc. to conduct a financially-based appraisal of the SR-125 Franchise. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to negotiate a contract for this purpose. Presented by Approved as to form by John P. Lippitt ~; ~t~;y ~ Director of Public Works ~ ~'~ /~~ ~, [H;/H OME/ATTORN EY~RESO/In frast ructure Management Group(November 2, 2000 (11:45am)] RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $200,000 FROM THE INTERIM SR125 DIF FUND FOR A NEW CIP PROJECT, SR-125 FRANCHISE REVIEW, STM348 WHEREAS, the City Council recently authorized City staff to enter into discussions with consultants to conduct a "peer". review of information used by California Transportation Ventures, Inc. in making traffic and revenue projects for the SR-125 Toll Road Facility; and WHEREAS, the Council also authorized staff to enter into discussions with a financial consultant to conduct a financially- based appraisal on the SR-125 franchise; and WHEREAS, the total cost for these additional studies and services should not exceed $200,000 with the funding source for this work being the Interim SR-125 DIF, fund number 592. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby appropriate $200,000 from the Interim SR125 DIF Fund for a new CIP project, SR-125 Franchise Review, STM348. Presented by Approved as to form by Director of Public Works G~y Attorney [H:/HOME~%TTORNEY~RESO/ SR125 appropriation (October 26, 2000 (3:19pm)] DRAFT COUNCIL AGENDA STATEMENT Item '~ Meeting Date 11/7/00 ITEM TITLE: Resolution Waiving the Formal Bid Requirements as Impractical and Awarding an Agreement for Citywide Street Sweeping Services to Cannon Pacific Services for the period of November 1, 2000 to April 30, 2001 and authorizing the Mayor to execute the Agreement. SUBMITTED BY: SpecialOperationsManager~ ~'~-i~' REVIEWED BY: City Manage~,~ (4/5ths Vote: Yes No x ) On June 24, 1997, the City Council approved a contract with R. F. Dickson, Inc. to provide citywide street sweeping services. The agreement provided for three years of street sweeping service (July 1, 1997 through June 30, 2000), with the option of extending the agreement for up to two additional years. The City had advertised and requested bid responses for a three-year contract, with 2 one-year renewable options. Four bids were received on May 13, 1997. R.F. Dickson Company, Inc. was the low bidder and Cannon Pacific Services was the second lowest bidder in that process. Staff and R.F. Dickson have been unable to reach an agreement on terms for the one-year options authorized under the current agreement, and Dickson has given 30 days notice, effective November 1, 2000. Staff has contacted the second lowest bidder, Cannon Pacific Services, and they have agreed to meet the terms of the initial agreement with modifications including an increase in total miles to be swept, a monthly credit to the City for free disposal, and a consumer price index adjustment to cover the period over the past 3 years. They have also offered a significant improvement in equipment and schedule that Staff believes will result in better service to residents and businesses. Staff is requesting that Council authorize the proposed agreement (Attachment A) with Cannon Pacific for a six-month extension retroactive to November 1, 2000. The additional time will provide Staff the time needed develop a new request for proposal. RECOMMENDATION: That City Council adopt the resolution waiving the bid process as impractical and award the contract for citywide street sweeping services to Canon Pacific Services for the period of November 1, 2000 through April 30, 2001, with up to two one month extensions at the City's discretion, and authorize the Mayor to execute the contract. BOARDS/COMMISSIONS RECOMMENDATION: The Resource Conservation Commission will receive an update as part of the next Conservation Program report regarding the increase in the swceping schedule as it relates to a reduction in storm water system and urban run-off impacts. DISCUSSION: On April 12, 1997 the City sent requests for bids to 14 firms located both in and out of the County. The lowest responsible bidder was R. F. Dickson Company, inc. with a bid of $167,948.67 per year. The second lowest bidder was Cannon Pacific Services with a bid of $176,224.46 7-,! Page 2, Item __ Meeting Date 11/7/00 The contract covered sweeping for the majority of City streets, center islands/medians, centerlines and parking lots. Private streets and new streets that were not yet accepted by the Director of Public Works were intentionally omitted. The original agreement outlines eight classes of street sweeping service and price levels (Attachment B). Under the proposed agreement the price per curb mile will be the same for each class. The class will continue to represent the frequency that each curb, median or centerline is swept. Several miles of new streets, centerlines and medians have been added to the street sweeping list since the bid was awarded. One of the primary reasons that staff is requesting this short term agreement is to have adequate time to develop a comprehensive list of new streets and distances for the bid process, to improve the coordination with solid waste collection, road construction and other development within the City. The comprehensive list will also allow the City to respond to inquiries regarding the sweeping schedule, increase public awareness and encourage residents to voluntarily park off street on street sweeping days. The Special Operations Manager, Engineering, Public Works Operations and GIS have begun to develop that list and develop a process to expedite the addition of streets to the sweeping agreement as the Director of Public Works accepts them. The proposed agreement reflects the increase in sweeping schedule authorized by Council as part of the current budget year. Service frequency for residential streets, centerlines and medians will double from once a month to twice per month sweeping. The increase in frequency will increase the monthly rate from approximately $14,500 per month to $26,553.36 per month. Under the proposed agreement, the new rate is a maximum rate, fixed for the term of the agreement. The maximum rate is based on $14.88 per mile, and the estimated mileage for the current list of streets. Newly constructed streets will be added to the list and swept as the Director of Public Works accepts them. Additional streets may be added or the frequency of sweeping may be increased for specific streets or classes at the rate of $14.88 per mile throughout the term, at the City's sole discretion. The City has also retained the right to reduce the frequency of sweeping, the mileage of sweeping, or the square footage of parking lots to be swept with no increase in the unit price compensation for the remaining work. Additionally, the contractor has committed newer equipment with improved sweeping technology. To assure maximum effectiveness, the contractor will schedule sweeping in residential and commercial areas when the least number of vehicles are parked at the curb. That schedule will be subject to the City Manager's approval. The Contractor will be required to sweep certain major streets and parking lots in the early morning to accommodate businesses and maximize effectiveness. No sweeping in residential areas shall be started prior to 8:00 a.m., or occur later than 4:00 p.m. Equipment will have sufficient mufflers and other silencing devices to permit its operation within City noise standards. The Contractor shall also make every effort to schedule the sweeping on days following regular trash collections, but in no event any closer than two days prior to trash pickup. Staff expects that residents and businesses will see a dramatic increase in the cleanliness of streets under the new agreement and contractor. Page 3, Item__ Meeting Date 11/7/00 Payment for sweeping will be based on the unit price per curb mile and made on monthly basis, after the work is completed. The City will be able to make deductions based on the curb mile rate and assess "enforcement penalties," for streets or areas not swept, or not properly swept according to the standards indicated in the agreement. Staff has also made a landfill fee adjustments allowed under the agreement. The City's agreement with Pacific Waste Services allows City contractors to dump a set amount of waste at the landfill at no charge. As the dump costs were built into the original per mile bid rate, the City will deduct $34 per ton from the monthly rate for each ton generated up to the first 100 tons and $17 per ton for each additional ton. Landfill fee adjustments have saved the City between $2,000 and $2,700 per month or about 16% of the monthly cost under the old agreement over the past eighteen months. For example, if the proposed street sweeping schedule collects 100 tons of litter and fines from City street sweeping in a given month the $26,553.36 per month rate - $3,400 (100 tons at $34 per ton) will result in a net cost to the City of $23,153.36. Payment for the addition of any street or parking lot accepted by the City during the life of this contract will be made at the same unit price as stated in the agreement. FISCAL IMPACT: Funds in the amount of $291,968 are budgeted to pay for these services for the 2000-2001 budget year. These funds are sufficient to cover the contract cost for scheduled street sweeping plus the estimated costs for special sweeping and the sweeping costs for any new streets that may be added during the year. Attachments Mtm:sU:eet sweeping agreement-cannon-cas -~, AGREEMENT BETWEEN CITY OF CHULA VISTA AND CANNON PACIFIC SERVICES FOR STREET SWEEPING SERVICES THIS AGREEMENT ("Agreement"), made and entered into this 7th day of November, 2000, by and between the City of Chula Vista, California, a Municipal Corporation, hereinafter designated as "City," and Canon Pacific Services, a California Corporation, hereinafter referred to as "Contractor". WITNESSETH WHEREAS, the City has solicited proposals for street sweeping within and on the streets of the City of Chula Vista; and, WHEREAS, R.F. Dickson and the Contractor have submitted to the City the first and second lowest bid respectively to sweep the public streets within the City limits, and R.F. Dickson has as the low bidder preformed those services for three years and four months; and WHEREAS, R.F. Dickson and the City have not been able to reach agreement on the first of two one-year extensions approved under the current agreement, and the Contractor has served 30 days notice; and WHEREAS, the City cannot reasonably complete the formal bid process within 30 days to assure that the streets continue to be swept without interruption, and the Contractor has agreed to assume the agreement under the compensation terms of their original bid as the second lowest bidder while the City implements a formal bid process; and WHEREAS, the agreement with the proposed Contractor will allow the City to continuing street sweeping without interruption, to keep streets free of litter, reduce urban run- off and its impact to the storm water management system and protect the public health and safety; and WHEREAS, the proposed Contractor 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 Contractor to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; and WHEREAS, the proposed Contractor has made certain representations on which the City is relying in entering into this Agreement, which representations are contained in the following documents, and which documents are incorporated herein by reference as though specifically set forth herein as representations: mtm: Sweep Agreement- Cannon Agreement for 11- 00- 6- 00 11/7/00 Page 1 1. Regarding Contractor's ability to perform such street sweeping services as contained in "Bid #12-96/97 Street Sweeping Services for the City of Chula Vista", available in the City Purchasing Office. 2. Regarding the length of time in business, states in which the Contractor is doing business, financial strength, credit standing, cities served, term of contract with such other cities served, equipment provided, and principal officers, all as set forth in the revised letter from the Contractor dated October 13, 2000 as part of the bid, attached hereto as Attachment A. WHEREAS, the Contractor originally selected by the City as the low acceptable bidder has requested to be relieved of any future obligations; and the Contractor has been determined to be the acceptable second low bidder and has agreed to hold bid prices firm, allowing for a pre-established consumer price adjustment; the City now desires to enter into an interim agreement through June 30, 2001 in order to maintain acceptable Citywide street sweeping service levels. NOW, THEREFORE, BE IT RESOLVED that the City and Comractor do hereby mutually agree as follows: 1. Contractor's Duties A. General Duties Contractor 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", Contractor 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, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work 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 mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 2 City may independently reduce the Defined Services to be performed by the Contractor under this Agreement. Upon doing so, City and Contractor 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 Contractor to perform additional street sweeping services related to the Defined Services ("Additional Services"), if they are within the scope of services offered by Contractor, Contractor shall perform same at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C). All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Contractor, 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 Contractor represents that it and its agents, staff and sub consultants 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 VII" 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 Contractor, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). 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. mtm: Sweep Agreement- Cannon Agreement for 11- 00- 6- 00 11/7/00 Page 3 (1) Certificates of Insurance. Contractor shall demonstrate proof of coverage herein required, prior to the effective date of 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 Contractor's Commercial General Liability Insurance Policy, Contractor shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. (Intentionally Omitted) (2) Letter of Credit. Intentionally Omitted) (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Contractor 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 Contractor 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 Contractor 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 Contractor 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. In addition thereto, City agrees to provide the information set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the original provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Contractor's performance of this agreement. mLm: Sweep Agreeraent -Cannon Agreement for 11 - 00- 6 - 00 11/7/00 Page 4 7-7 B. Compensation Upon receipt of a properly prepared billing from Contractor submitted m 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 Contractor for all services rendered by Contractor 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. All billings submitted by Contractor 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. 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"). mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 5 F" T · 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 Contractor A. Contractor is Designated as an FPPC Filer. If Contractor is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Contractor is deemed to be a "Contractor" 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 Contractor is designated as an FPPC Filer, Contractor shall not make, or participate in making or in any way attempt to use Contractor's position to influence a governmental decision in which Contractor knows or has reason to know Contractor has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Contractor is designated as an FPPC Filer, Contractor warrants and represents that Contractor has diligently conducted a search and inventory of Contractor's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Contractor does not, to the best of Contractor's knowledge, have an economic interest which would conflict with Contractor's duties under this agreement. D. (1) Promise Not to Acquire Conflicting Interests. Regardless of whether Contractor is designated as an FPPC Filer, Contractor further warrants and represents that Contractor will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. mtm: Sweep Agreement - Cannon Agreement for 11 - 00 - 6 - 00 11/7/00 Page 6 Regardless of whether Contractor is designated as an FPPC Filer, Contractor further warrants and represents that Contractor Will immediately advise the City Attorney of City if Contractor learns of an economic interest of Contractor'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. Contractor warrants and represents that neither Contractor, nor Contractor's immediate family members, nor Contractor's employees or agents ("Contractor 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. Contractor further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Contractor or Contractor Associates in connection with Contractor's performance of this Agreement. Contractor promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Contractor agrees that Contractor 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. Contractor may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Contractor's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Contractor 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 Contractor, 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. Contractor'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, Contractor 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. Contractors' indemnification of City shall not be limited by any prior or subsequent declaration by the Contractor. mtm: 8weop Agreement- Cannon Agreeraent for 11- 0 0 - 6- 0 0 ]_1/7/00 Page 7 --¥ 1 · il ! 8. Termination of Agreement for Cause If, through any cause, Contractor shall fail to fulfill in a timely and proper manner Contractor's obligations under this Agreement, or if Contractor 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 Contractor 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 Contractor shall, at the option of the City, become the property of the City, and Contractor 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 Contractor's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Contractors' 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, Contractor 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 Contractor 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, Contractor 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. Contractor hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Contractor are personal to the City, and Contractor 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. 12. Ownership, Publication, Reproduction and Use of Material mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 8 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 Contractor 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 Ac0, 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 Contractor 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 Contractor's work products. Contractor and any of the Contractor'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 Contractor 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, Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs mtm: Sweep Agreement - Cannon Agreement for 11 - 00 - 6 - 00 11/7/00 Page 9 -" In the event that Contractor prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Contractor 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. Contractor not authorized to Represent City Unless specifically authorized in writing by City, Contractor shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Contractor is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Contractor 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, Contractor represents that neither Contractor, 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 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. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 10 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.] mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 11 Signature Page to Agreement between City of Chula Vista and Cannon Pacific Services for Street Sweeping Services IN WITNESS WHEREOF, City and Contractor have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 19 City of Chula Vista by: Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, CkyAttorney Dated: Cannon Pacific Services, a California Corporation By: Pat Cannon, President mtm: Sweep Agreement - Cannon Agreement for 11 - 00 - 6 - 00 11/7/00 Page 12 T T · i1: ! Exhibit A to Agreement between City of Chula Vista and Cannon Pacific Services, Inc. 1. Effective Date of Agreement: November 1, 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: , a [insert business form] ("City") 3. Place of Business for City: City of Chula Vista City Manager's Office 276 44 Avenue Chula Vista, CA 91910 4. Contractor: Cannon Pacific Services Attention: Pat Cannon, President 5. Business Form of Contractor: ( ) Sole Proprietorship ( ) Partnership (x) Corporation mtm: Sweep Agreement- Cannon Agreement for 11 - 00- 6 - 00 11/7/00 Page 13 6. Place of Business, Telephone and Fax Number of Contractor: 6102 Avenida Encnias Suite H and I, Carlsbad CA, 92009 P.O. Box 230147 Encinitas CA, 92023-0147 Encinitas, California 90242 Phone (760) 943-9633 Fax (760) 602-0522 7. General Duties: Contractor shall provide sweeping of City streets, center islands/medians, centerlines and parking lots in accordance with the schedules included herein. The Scope of Services contained herein are designed to establish an effective, efficient and safe system of street cleaning that provides for the following intended purposes: A. Establish and maintain a continuous level of cleanliness of City streets in order to prevent as much litter and fines from entering the storm water system as possible assure protection of the health, safety and welfare of the community, to enhance the aesthetics of the City by providing litter free streets and to. B. Clean City streets in a coordinated manner, by a communicating with the City to regarding the development and implementation of a routing system that compliments solid waste and recycling collection, residential and commercial parking patterns and that will generally will improve current street cleaning practices while decreasing costs. 8. Scope of Work and Schedule: a. Detailed Scope of Work: The Contractor shall clean all curbs, gutters, cross gutters, median curbs and painted islands, centerlines, road shoulders, turning lanes, alleys and parking lots located in the City as designated below. At all intersections, the Contractor shall sweep the curb return areas. Parking is not restricted for street sweeping purposes. The contractor shall sweep around any vehicle on City streets and in doing so make every reasonable effort to sweep as close to the parked vehicle as possible. The streets and parking lots to be cleaned, the street segment lengths, and the frequency of cleaning are listed in Exhibit "A" and Exhibit "B". The lengths represent the City's best measurement. Payment will be based on the quantities indicated with no adjustments except as provided herein. Contractor is responsible for verifying and inspecting all conditions prior to starting work. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 14 The streets and parking lots to be cleaned are divided into the following categories: A. Streets swept twice per month. B. Streets swept once every week. C. Streets swept twice per week. D. Center islands and medians swept twice per month. E. Center lines swept twice per month. F. Non-curbed streets swept twice per month. G. Parking lots swept once per month*. H. Other special sweeping requested by the City at the rate of $65 per hour. * The City may add additional lots at it's sole discretion which shall be swept based on an agreed upon mount based on a rate of $35 per hour. b. Type of Equipment: The type of street sweeping equipment used by the Contractor shall be consistent with the current standards in the industry and shall be subject to the approval of the City Manager or his designee. The equipment to be used shall be specified in the Contractor's proposal. Vehicles and equipment used to perform the services provided for herein, shall be modern, clean, and maintained in good mechanical condition at all times. In addition, the following shall apply: A. Contractor shall use at least one standard heavy duty broom-type sweeper and one regenerative air sweeper, which will clean the streets of the City of paper, wet leaves, dirt, rocks and debris. The broom, brush and or air system shall be applied with sufficient pressure to pick up said material in one pass. B. The City recommends use of two (2) street sweepers with one backup sweeper. The age of any one vehicle shall not be more than six (6) years old at any time unless certification is presented by the Contractor and approved by the City Manager or his designee, that equipment has been completely overhauled and/or rebuilt. C. All equipment shall be equipped in accordance with existing State law, equipped with safety lighting and markings appropriate for slow-moving vehicles, and shall be equipped with a flashing light with the following characteristics: mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 15 7 1. Visible for a minimum of one mile. 2. Flash 60 to 90 times per minute. 3. Mounted for 360 degree visibility. 4. Equipped with amber lens. D. Equipment shall be kept clean at all times. E. Mechanical brushes and brooms shall be maintained in proper condition and shall be replaced by the sooner to occur of; as recommended by the manufacturer or when pick-up ability becomes impaired. F. All street sweepers shall be equipped with adequate water systems for dust control. G. All street sweepers shall be equipped with a 12-hour tachograph that indicates travel time, speed, mileage and broom-down sweeping time through an indication of broom-down time. In addition, Contractor shall indicate starting and ending streets on tachographs and/or route numbers. Alternately, the - contractor may use an approved Global Positioning System (GPS) and provide the City with Internet access to the real time report data at no additional cost. H. Contractor shall provide any adequate support equipment including debris transfer vehicles, pickup trucks, service trucks, tire trucks, and any other item of equipment necessary to provide sweeping services as described in these specifications. I. All equipment (including support equipmen0 to be used by the Contractor shall be listed as a part of the detailed inventory section of the Contractor's qualifications supporting data. All such equipment is subject to the inspection and final approval of the City. Such approval may require on-site demonstration of the capability of any proposed equipment. J. The City shall have the option to perform a complete inspection of all vehicles at any time throughout the term of the Contract. Should any vehicle, when inspected, and in the determination of the City, not meet standards that the City feels are necessary to complete the Contract or to operate safely, the City may require such vehicle to be brought to standard before being placed back in service. mtm: Sweep Agreement- Cannon Agreement for 11- 00- 6- 00 11/7/00 Page 16 '~' K. The City reserves the right over the life of this contract or extensions thereof to reject any equipment for use for sweeping City streets. The Contractor shall furnish at no additional cost equipment satisfactory to the City. L. Nothing herein shall preclude the Contractor from substituting other equal equipment due to maintenance or other factors upon prior notice to the City. Prior to awarding the bid, and at any time during the life of the contract to provide street sweeping service, all equipment shall be available for inspection by the City upon 24-hour notification to the Contractor. M. Equipment must have sufficient mufflers and other silencing devices to permit its operation within City noise standards (60db at 25 feet). All equipment shall be subject to City approval prior to use. N. Sweeper speeds shall not exceed eight (8) MPH when sweeping. c. Other Requirements: SIGNS. The Contractor shall at no additional cost to the City place signs approved by the City on the street sweeping equipment used in the performance of the work, which signs shall be visible from both sides of the vehicle and shall read "Under Contract to the City of Chula Vista." OFFICE. Contractor shall maintain an office within San Diego County, or provide an 800 telephone number, staffed by a responsible representative for receipt of requests from 8:00 a.m. to 5:00 p.m. (Pacific Time), Monday through Friday, not including approved holidays. Contractor shall provide a list of names and phone numbers of supervisory personnel who can be contacted on a 24-hour basis to respond to emergency needs. This list shall be kept current by the Contractor for the life of the contract. d. Standards of Performance: Street sweeping shall be performed in accordance with accepted standards for municipal street cleaning. When necessary for proper cleaning, Contractor shall slow down and/or make more than one pass on a street as necessary to meet the acceptable standard, without extra charge. Standards of performance shall include sweeping all intersection curb returns and all cross gutters in a manner as to eliminate "diamonds," of debris. If additional passes through an intersection are required in order to adequately sweep both a return and a cross gutter, the Contractor shall make the necessary passes without extra charge. On streets with uncurbed median islands created by pavement striping, the median areas shall be swept their entire width. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 17 7-20 The equipment operator shall maintain lists of locations that cannot be adequately swept because of obstructions such as low hanging limbs or vehicles that are parked on the City streets for extended periods of time. These locations shall be turned into the Public Works Department as soon as possible. Deductions may be made from Contractor's payments for areas not swept due to obstructions that were not reported to the Department. The Contractor shall repair or replace all existing improvements, which are damaged as a result of its operation. Improvements, such as, but not limited to, curbs, gutters, driveways, or signs, shall be repaired and replaced to a condition equal to or better than the original condition, and no additional compensation shall be made by City. The Contractor is expected to clean the entire area of the City parking lots and shall use air blowers or other methods in all parking lots to move debris to a location where it can be swept up. The Contractor shall dispose of all refuse collected by hauling the same to the Otay Landfill or by contracting with Pacific Waste Services for roll-off services. The hauling or delivery of waste to the Otay Landfill shall be at Contractor' s expense. Receipts of disposal shall be summarized and attached by the Contractor and submitted monthly to the City Manager's Office along with the monthly invoice. The cost for collection, hauling and disposal of sweeping refuse, including any and all landfill fees, is included in the bid prices, and no additional compensation will be paid therefore. The City shall provide the Contractor with three "landfill passes which shall provide access and free disposal for the Contractors sweepers. The disposal portion, (landfill tipping fee) shall be deducted from the monthly invoice at the rate of $34 per ton up to 100 tons per month, and $17 per ton above 100 tons. The City shall authorize free disposal at the landfill by providing the Contractor with three (3) original letters to use as passes for free disposal at the Otay landfill. The Contractor shall limit their use of the passes to waste generated under this agreement. Transfer points for storage of sweepings must be approved by the City, and in no case be stored in the City in excess of five working days. Disposal areas shall be approved in advance by the City. The Contractor shall provide security to such transfer points to prevent the spread of the refuse by others or by nature, or the addition of debris to the sweeping refuse by others. Transfer points shall be kept clean at all times. The City Manager or his designee reserves the right to inspect the transfer points, and if the City determines the transfer points are not being maintained properly, it will notify the Contractor to clean up the area. Said clean up will be completed within 24 hours of notification. The Contractor shall make all necessary arrangement to obtain and pay for water necessary for the operation from the appropriate water district or authority. The Contractor shall maintain an accounting of the amount of water used each day and have this information available upon request. No additional compensation will be paid. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 18 e. Sweeping Schedule: As soon as possible but no later than 30 days after the execution of the agreement the selected Contractor shall submit a sweeping schedule to the City Manager. The schedule shall identify the streets or neighborhoods to be swept each week. The schedule shall provide for the sweeping of streets and intersections. The required sweeping schedule must provide the following information: A. A list of the Contractor's proposed cleaning routes for a complete cycle of cleaning, with identification of all streets to be cleaned on each route in sequence. Routes shall show direction of travel and include head-in locations and routes shall indicate start/end locations for each day's work. B. The mileage for each street on each route must be identified as Right Hand or Left Hand sweeping mileage. C. Each route list must reference the segment of streets as listed in Exhibit A, List of Streets to be swept. D. The total mileage for all proposed routes must equal the mileages contained in the Designated Streets Section of the Specifications for each Section of streets to be cleaned. E. Maps of all routes shall accompany the Contractor's list of proposed cleaning routes. The Contractor shall schedule the hours of operation as approved by the City Manager's designee so as to sweep the streets when a minimum number of vehicles are expected to be parked at the curb such as prior to 7 am in commercial areas and after 8:30 am in residential areas. The Contractor shall also make every effort to schedule the sweeping on days following regular trash collections, but in no event any closer than two days prior to trash pickup. The hours during which the sweeping shall be performed shall be at the discretion of the Contractor, with the approval of the Director of Public Works. The Contractor may be required to do early morning sweeping as on certain major streets and parking lots. No sweeping in residential areas shall be started prior to 8:00 a.m., or later than 4:00 p.m. The City has several areas where on street parking of adjacent residents prevents adequate sweeping. City may, in future, provide legislation to prohibit parking at certain times or on alternate weeks for each side of the street. City reserves the right to require Contractor to revise the sweeping schedule accordingly to provide an adequate level of sweeping. All such changes shall be within the scope of Contractors bid and no additional charge or payment shall be made therefore. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 19 7 -AZ All municipal and park parking lots shall be swept on a weekday, between the hours of 4:30 a.m. and 7:00 a.m. The entire surface area of each lot shall be swept. The Contractor shall submit for approval a schedule indicating the days and times that these lots will be swept. f. Holidays and Inclement Weather: When inclement weather, in the opinion of the City Manager, prevent adherence to the regular sweeping schedule for two or less days in a given week, the sweeping areas so affected by the inclement weather shall be swept within the following one week period from the date of the scheduled sweeping, without interruption of the regular sweeping schedule. The Contractor shall perform all extra work required by such inclement weather without additional charge. As to holidays, when any holiday or observance as specified in the Government Code of the State of California occurs on a regularly scheduled sweeping day, the affected scheduled streets shall be swept within two days from the regularly scheduled sweeping day without interruption in the regular sweeping schedule. The Contractor shall perform make-up sweeping for holidays at no additional cost to the City. In the event the Contractor is prevented from completing the sweeping as provided in the schedule because of reasons other than inclement weather, the Contractor shall be required to complete the sweeping services so deferred prior to the next regularly scheduled date at no additional cost to the City, or give the City credit for the work not so performed at the rate specified in Section 1.08, if agreed to by the City. g. Interpretation of Specifications: Should any discrepancy appear, or any misunderstandings arise as to the meaning or interpretation of anything contained in these specifications, the matter shall be decided by the City Manager or his designee and the interpretation of the City Manager shall be binding upon the Contractor. h. Verification of Work: It shall be the responsibility of the Special Operations Manager to guarantee the execution of the contract in accordance with its terms and specifications. To this end, he (she) may appoint a designee who shall also be responsible for the inspection and monitoring of the work performed under the Contract. As required in this Agreement, the Contractor shall submit Route Lists for all scheduled cleaning as soon as possible but no later than 30 days from the effective date of this agreement. These schedules will be reviewed for accuracy and efficiency by the Manager and their designated representative prior to their acceptance. Prior to final award of the Contract, the successful Contractor shall meet with the Special Operations Manager and their designated representative to review the Contract and make any necessary changes to the Route Lists and/or Contractor's work plan. mtm: Sweep Agreement- Cannon Agreement for 11 - 00- 6- 00 11/7/00 Page 20 Upon commencing work, all Route Lists shall be updated by the Contractor, and thereafter shall become the basis for: A. The Contractor's cleaning routes, B. The City's inspection of cleaning, C. The invoicing of cycles completed, and D. Payment by the City for services rendered. Any subsequent changes or revisions to Route Lists throughout the contract period must have the prior written approval of the Special Operations Manager or their designated representative. Prior to Award of the Contract, the contractor shall provide the name of a contact person and phone number for use by the Special Operations Manager or designee in case of routine questions relating to the contract, street sweeping schedule, new street additions and resolution of citizen complaints. The Contractor shall prepare a monthly cleaning cycle showing the proposed sweeping route schedule and submit two copies to the City. In the event the schedule is changed, the Contractor shall submit a revised route schedule to the City at least five (5) working days prior to the change. In the event a sweeping route or routes are changed, the Contractor shall submit a revised list and map of the proposed route. Such route lists and maps shall be submitted for both Contractor and City initiated route changes, including additions caused by acceptance of new streets into the City's maintained mileage, at least five (5) working days prior to sweeping. The Special Operations Program Division will monitor the Contractor's work performance. All streets cleaned by the Contractor must present an appearance, which is completely satisfactory to the monitoring Inspector, and within the cleanliness guidelines of the City. Any deficiency in the Contractor's performance shall be reported to the Contractor within 24 hours following completion of work, and such deficiencies shall be corrected by the Contractor no later than 48 hours following receipt of such notice. Failure to cure the complaint within 48 hours shall result in the deduction of 150% of the contract value or $22.32 per mile. The City shall maintain a log of inspections and will verify completion of the contractor's work with the Contractor at a minimum of once per month. In the event a street rehabilitation or improvement project is under construction or will be under construction where cleaning is scheduled, that portion of a cleaning cycle will be deleted from the appropriate Route List at the direction of the Special Operations Manager. mtm: Sweep Agreement- Cannon Agreement for 11 - 00- 6 - 00 11/7/00 Page 21 The section(s) of streets deleted may be re-entered at the first scheduled cycle following completion of the rehabilitation. Such deletions shall be reflected in the Contractor's request for payments. Prior to re-entering any such street into the cycle, a field inspection shall be made by the Manager's Office and the Contractor to determine what cleaning will be required by others. In no event will the Contractor be allowed additional compensation by the Department for initial cleaning of a re-entered street following rehabilitation or construction. In addition to the procedure for verification of work performed as described herein, the Contractor shall lend whatever necessary assistance the City may request with respect to verification of work performed. i. Other Special Sweeping Services: The City may from time to time require miscellaneous sweeping on a callback basis, such as for accidental spills, sweeping after special events or miscellaneous needs. The Contractor shall bid a per hour rate for Miscellaneous Sweeping. The time charged for this callback work shall be as outlined in Class H and shall not include travel time to and from the work site. j. Accidents: Any and all accidents, regardless of how minor, involving another person, private property, or vehicle shall be reported immediately to the Chula Vista Police Department and a Police report requested. The Special Operations Manager shall also be contacted immediately. k. Date for Commencement of Contractor Services: (X) Same as Effective Date of Agreement ( ) Other: 1. Dates or Time Limits for Delivery of Deliverables: Not Applicable. m. Date for completion of all Contractor services: June 30, 2001, unless extended per the Agreement 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Employer's Liability Insurance coverage: $1,000,000 per accident for bodily injury or disease. mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 22 (x) Commercial General Liability Insurance: $1,000,000. Per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit is used, either separately to this project/location or other general aggregate limit shall be twice the required occurrence limit. (x) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Contractor: List of streets and parking lots to be swept 11. Compensation: Payment for sweeping shall be made by the contract unit price per curb mile or pass mile or square footage actually cleaned on a monthly basis. However, the monthly fee of $26, 553.36, less the monthly landfill credit, will be the maximum fee regardless of mileage, later to be determined by reconciliation of the initial street list by the City. Any streets added to the initial list shall be added to subsequent monthly invoices at the rate established in Attachment A. Request for payment must be made individually as follows: A. Streets swept twice per month B. Streets swept once every week. C. Streets swept twice per week. D. Center islands and medians swept twice per month. E. Center lines swept twice per month. F. Non-curbed streets swept twice per month. G. Parking lots swept at least once per month. H. Other special sweeping requested by the City at the rate stipulated within the bid. mtm: Sweep Agreement- Cannon Agreement for 11- 00 - 6- 00 11/7/00 Page 23 Request for partial payment must be made in duplicate to the Special Operations Manager and include the following: A. Claim for payment in a format approved by City (Exhibit C). B. Cover invoice showing linear miles swept or parking lot square footages swept and an extension in dollars at the quoted cost, (See Exhibit C-2). C. The original tachograph for each sweeper for each day showing speed, mileage, travel times and broom-down sweeping times labeled to indicate the route or routes swept and initialed by the Contractor's representative. In the case of parking lots, the tachograph should be labeled by the equipment operator with the lot being swept. Or access to complete online GPS reports identifying the same, E. The Contractor shall provide a letter with this agreement to the Special Operations Manager indicating the anticipated dates and times the parking lots will be swept. The Contractor shall also provide with each monthly statement a list of actual dates and approximate times each parking lot was swept. Payment shall be made on the basis of blanket curb miles cleaned at the quoted rate except that deductions shall be made for streets or areas not swept. Such deductions shall be made on the basis of curb miles not swept at the linear curb mile cost or area not swept at the quoted rate (parking lots). Deductions may also be made for streets or areas not properly swept according to the standards indicated in Section 2-04 A, Section 2-12, 8-h and other pertinent sections of this document. Prices bid shall be firm for the term of the contract (11/1/00 - 6/30/01). Payment for addition of any street or parking lot accepted by the City during the life of this contract shall be made at the same rate or unit price as existing streets or parking lots swept at the same frequency included in the appropriate bid item. The City retains the right to reduce the frequency of sweeping, the mileage of sweeping, or the square footage of parking lots to be swept with no adjustment in the unit price compensation for the remaining work. 12. Contract Administrators: City: Michael T. Meacham, Special Operations Manager, City Manager's Office, Administration Building 276 4th Avenue, Chula Vista, CA 91910, (619) 691-5122 Contractor: Pat Cannon, Cannon Pacific Services, P.O. Box 230147, Encinitas, CA 92023 mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 Page 24 13. Liquidated Damages Rate: ( ) $ per day. (x) Other: · Failure to cure unacceptable sweep within 48 hours of notification by the City; $22.32 per mile · Failure to report an accident or complaint from the public prior to the end of the next business day; $100. · Failure to make a good faith effort comply with any performance provision of this agreement within 24 hours upon notification by the City; $50 per day. 14. Statement of Economic Interests, Contractor Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. 15. Permitted Subconsultants: NONE 16. Bill Processing: a. Contractor's billing to be submitted for the following period of time: (x) Monthly ( ) Quarterly ( ) Other: b. Day of the Period for submission of Contractor's billing: ( ) First of the Month ( ) 15th Day of each Month (x) End of the Month ( ) Other: c. City's Account Number: 16733-6401 17. Security for Performance ( ) Performance Bond, 100% of the amount of the contract price ( ) 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 Contractor sooner, the mtm: Sweep Agreement - Cannon Agreement for 11- 00- 6- 00 11/7/00 Page 25 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 Contractor Services ( ) Other: mtm:Sweep ~reement-Cannon ~reement for 11-00-6-00 11/7/00 Page 26 Agreement Attachment A Street Classifications & Rates Class of Sweeping Frequency of Rate Sweeping A. Residential Twice Per month $14.88 per curb mile Streets B. Business Streets Once per week $14.88 per curb mile C. Business Streets Twice per week $14.88 per curb mile D. Center Islands Twice per month $14.88 per curb mile and Medians E. Center Lines Twice per month $14.88 per pass mile F. Non-Curbed Twice per month $14.88 per "curb" Residential Streets mile G. Parking Lots Once per month $1,200 per month @ $35 per hour H. Special Sweeping As needed $65 pr/hr {sweep tzme Requested by City only) mtm:Sweep Agreement-Cannon Agreement for 11-00-6-00 11/7/00 720 Page 27 ..... · Attachment (A-l) Chula Vista Parking Lots Swept By - Cannon Pacific Parking Lot Day Swept (Preferably Monday) Civic Center Library Civic Center Memorial Way Chula Vista Comm. Park Discovery Park Eucalyptus (Upper & Lower) Fire Station No Area E Fire Station No Area F Greg Rogers Park Hilltop Park ~ Tele Cyn Rd Ken Lee Building (430 F Street) Landis & Davidson North Landis & Davidson South Lauderbach Park Legislative Office - Area G Loma Verde Park Mc Candliss Memorial Park/Parkway Gym Norman Park Public Services - Area D Reinstra Park/Max Field Rohr Park (3 Separate lots) SDG & E on Hilltop ~ Reinstra South Chula Vista Library Terra Nova Park Voyager Attachment B Agreement Attachment A Street Classifications & Rates Class of Sweeping Frequency of Sweeping Dickson's Current Price/Cannon's Proposed Price A. Residential Streets Twice Per month $13.66/$14.88 per curb mile B. Business Streets Once per week $12.68/$14.88 per curb mile C. Business Streets Twice per week $12.47/$14.88 per curb mile D. Center Islands and Twice per month $13.68/$14.88 per curb mile Medians E. Center Lines Twice per month $13.68/$14.88 per pass mile F. Non-Curbed Residential Twice per month $13.90/$14.88 per "curb" mile Streets G. Parking Lots Once per month $750/$1,200 per month @ $35 per hour H. Special Sweeping As needed $70 per/hour (portal to portal)/$6$ Requested by City pr/hr (sweep time only) Exhibit C-1 Monthly Service Invoice # 1141310 Invoice Invoice Date 9/30/00 Terms - Net 30 ' Contract # BILL SHIP TO: 1CHU01 TO: 1CHU01 CHULA VISTA, CITY OF CHULA VISTA, CITY OF MICHAEL T. MEACHAM CONSERVATION COORDINATOR MICHAEL T. MEACHAM CONSERVATION COOR[ 276 4TH AVENUE Chula Vista, CA 91910 Chula Vista, CA 91910 619-691-5122 / Fax 619-565-5612 619-691-5122 P 0 # Sh~p Via ~ 0 B Rental Penod' Start End P10211 9/~/00 9/30100 ,~ ~;I # Unit # Make Model Amount SI ,~ ~0 14,878.01 STREET SWEEPING FOR SEPTEMBER PLEASE SEE ATTACHED SCHEDULE h_' ~.Taxable Rental = $14,878.01 Tax @ 7.75% $0.00 Total $14,878.01 ~age # I i ) · ,)I Exhibit C-1 Monthly Service Credit Memo # 1141311 Credit Memo Credit Memo Date 9/30/00 Terms - Net 30 - contract # BILL SHIP TO: 1CHU01 TO: 1CHU01 CHULA VISTA, CITY OF CHULA VISTA, CITY OF MICHAEL T. MEACHAM CONSERVATION COORDINATOR MICHAEL T. MEACHAM CONSERVATION COOR[ 276 4TH AVENUE Chula Vista, CA 91910 Chula Vista, CA 91910 619-691-5122 / Fax 619-585-5612 619-691-5122 ~ 0 # Shl~ Via F 0 B Rental Penod: Start End P10211 9tl/00 9/30/00 ~ _f_ # Unit # Make Model Amount S, ~ -2,650.12 STREET SWEEPING DEBRIS FOR SEPTEMBER ~LEASE SEE ATq'ACHED ~_ ~ 'axable Rental = ($2~650.12) Tax @ 7.75% $0.00 Total ($2,650.12) ~age # 1 Exhibit C-2 tCHULA VISTA STREET SWEEPING SCHEDULE ....... -~ SEPTEMBER BILLING CLASS A: RESIDENTIAL CIM'S $ PER CIM TOTALS 9/26,9127,9129 518.72 $13.66 $7,085.72 CLASS B: i X WEEK COMMERCIAL 9/1,915,916,917,9/8 94.17 9/12,9/13,9/14,9/15* WRONG TACH SHEET 94.17 9/19,9~20,9/21,9/22 94.17 9/26,9/27,9/28 94.17 94.17 PER WEEK 376.68 $12.68 $4,776.30 CLASS C: 2 X WEEK COMMERCIAL 9/5,9/7 9/26,9/28 8 X 9.70 = 77.60 77.60 $12.47 $967.67 CLASS D: I X MONTH CENTER ISLANDS 9/18 46.45 i $13.68 $635.44 CLASS E: 1 X MONTH CENTER LINES 9/18 21.70 $13.68 $296.86 '.ASS F: NON CURBED ~/5,917,9112,9/14,9128 28.32 $13.90 $393.65 PARKING LOTS: 1 X MONTH SOUTH CHULA VISTA LIBRARY 5-Sep LOMA VERDE PARK 7-Sep REINSTRA PARK/MAX FIELD 7-Sep SDG&E ON HILLTOP AT REINSTRA 7-Sep DISCOVERY PARK 13-Sep MEMORIAL WAY - AREA B 14-Sep EUCALYPTUS 14-Sep MEMORIAL PARK/PRKWY. GYM 14-Sep CIVIC CENTER LIBRARY 14-Sep ROHR PARK (3) SEPARATE LOTS** 19-Sep TERRA NOVA 19-Sep GREG ROGERS 21-Sep HILLTOP PARK & TELEGRAPH CYN. 27-Sep ABOVE LOTS SWEPT WITH A BROOM SWPR. LANDIS & DAVIDSON (N) 6-Sep LANDIS & DAVIDSON (S) 6-Sep NORMAN PARK CENTER 6-Sep LAUDERBACH PARK CENTER 6-Sep BAYFRONT 13-Sep PUBLIC SERVICES - AREA D 13-Sep FIRE STATION - AREA E 13-Sep =IRE STATION - AREA F 13-Sep "~ EGISLATIVE OFFICES -AREA G 13-Sep .qULA VISTA COMMUNITY PARK 20~Sep 722.38 I ABOVE LOTS SWEPT WITH AN AIR SWPR. TOTAL $14,878.01 Exhibit C-~ CHULA VISTA - OTAY RECEIPTS .~, SEPTEMBER 2000 DATE TONNAGE 43.00 PER TON 911 1 46 43.00 61.06 9/1 1.2~' 43.00 62.46 9/5 1 5~ 43.00 67.08 9/5 21[ 4300 9030 9/5 2.2." 43,00 95,89 9/5 2.11 43.00 90.73 Attachment D Pacific Services P.O. BOX 230167. ENCINITR5, CA 9'~023 October 13, 2000 City of Chula Vista Michael Mea~cham City Manager's Office 276 Fourth Avenue [hula Vista, CA 91910 Re: Street Sweeping Proposal De:~r Michael: Plea.se see the following points which address the ProposaJ for Street Sweeping Services: · Cannon Pacific Services (CPS will sweep all dedicated City Streets with an estimated mileage of 1,784..5 miles at $14.88 per mile, for a monthly fee of $26,553.36 (kequency will be determined by class, but not less than twice per month). · The $26,553.36 monthly fee, less trash deduction, will be the maximum lee regardless of mileage, later to be determined by reconciliation of the initial street list. · Sweep listed parking 1ors at least once per month for $1,200 per month. Additional lots will be added at $35.00 per hour. · Each additional mile of sweeping added to the list of streets initially submitted will be added at a rate of $14.88 per mile. ·The City will deduc'$ $34.00 per ton for every ton of waste up to 100 tons per month and $17.00 per ton for every ton over 100 tons in a given month. · CPS will perform requested special sweeps at $65.00 per hour. Ca Canno~ Padtic Services (7riO) g43-%33 Attachment B Agreement Attachment A Street Classifications & Rates Class of Sweeping Frequency of Sweeping Dickson's Current Price/Cannon's Proposed Price A. Residential Streets Twice Per month $13.66/$14.88 per curb mile B. Business Streets Once per week $12.68/$14.88 per curb mile C. Business Streets Twice per week $12.47/$14.88 per curb mile D. Center Islands and Twice per month $13.68/$14.88 per curb mile Medians E. Center Lines Twice per month $13.68/$14.88 per pass mile F. Non-Curbed Residential Twice per month $13.90/$14.88 per "curb" mile Streets G. Parking Lots Once per month $750/$l,200 per month @ $35 per hour H. Special Sweeping As needed $70 per/hour (portal to portal)/$65 Requested by City pr/hr (sweep time only) RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BID REQUIREMENTS AND AWARDING CONTRACT FOR CITYWIDE STREET SWEEPING SERVICES TO CANNON PACIFIC SERVICES FOR THE PERIOD OF NOVEMBER 1, 2000 TO APRIL 30, 2001 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, on June 24, 1997, the City Council approved a contract with R. F. Dickson, Inc. to provide citywide street sweeping services for three years (July 1, 1997 through June 30, 2000), with an option of extending the agreement for up to two additional years; and WHEREAS, the City advertised for bids for a three-year contract, with 2 one-year renewable options and four bids were received on May 13, 1997 with R. F. Dickson Company, Inc. being the low bidder and Cannon Pacific Services the second lowest bid; and WHEREAS, staff and R. F. Dickson have been unable to reach an agreement on terms for the first of two one year options authorized under the current agreement or the increase in sweeping frequency authorized by Council as part of the current fiscal year budget process and Dickson has given 30 days notice; and WHEREAS, staff is requesting that Council waive the bidding requirements and authorize an agreement for a six month extension with the second lowest bidder of the bid process; and WHEREAS, it is necessary to waive the bidding process at this time because: 1. City staff cannot reasonably complete the formal bidding process within thirty days. 2. It is necessary to ensure street sweeping continues uninterrupted to protect the public health and safety by keeping the streets free of litter and reduce urban run off and its impact to the storm water management system. NOW, THEREFORE, BE IT RESOLVED that the city Council of the City of Chula Vista does hereby waive th? bid requirements and award an agreement for citywide street sweeping services to Cannon Pacific Services for the period November 1, 2000 to April 30, 2001. 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 Michael Meacham ~ AM~t o~ra~h~ee~ Special Operation Manager H: \home \at t orney\ reso~ st reet sweeping