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HomeMy WebLinkAboutAgenda Packet 2001/01/16 CITY COUNCIL AGENDA January 16, 2001 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CHY OF CHULA VISTA City Council City Manager Patty Davis David D. Rowlands, Jr. Stephen C. Padilla City Attorney Jerry R. Rindone John M. Kaheny Mary Salas City Clerk Shirley A. Horton, Mayor Susan Bigelow The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 47 AGENDA January 16, 2001 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, Padilla, Rindone, Salas, and Mayor Horton. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · PRESENTATION OF A PROCLAMATION COMMENDING THE BONITA VISTA HIGH SCHOOL VOLLEYBALL TEAM CONSENT CALENDAR (Items 1 through 7) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak"form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will he the ftrst items of business. 1. APPROVAL OF MINUTES of January 9, 2001. Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS A. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on January 9, 2001, there were no actions taken which are required under the Brown Act to be reported. Staffrecommendation: The letter be received and filed. B. Letter from Lauren Tait, a student at Bonita Vista High School, requesting financial assistance to attend the 2000 Youth Leadership Conference at Freedoms Foundation, Valley Forge, Pennsylvania. Staffrecommendation: $50 from the Council Contingency Account be granted to Lauren Tait toward expenses incurred for her attendance at the Freedoms Foundation Conference. 3A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTiNG iN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT (CFD) NO. 98-1 (iNTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]), DECLARING THE RESULTS OF A SPECIAL ELECTION IN TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]), AND DETERMINING THAT SUCH TERRITORY IS ADDED TO AND PART OF SUCH COMMUNITY FACILITIES DISTRICT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTiNG iN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT (CFD) NO. 98-2 (iNTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]), DECLARING THE RESULTS OF A SPECIAL ELECTION iN TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (iNTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]), AND DETERMiNiNG THAT SUCH TERRITORY IS ADDED TO AND PART OF SUCH COMMUNITY FACILITIES DISTRICT On December 19, 2000, Council held a public hearing on the proposed annexations to CFD 98-1 and CFD 98-2, and authorized the submittal of the levy of special taxes to the qualified electors of the territory proposed for annexation. At the public heating, no public testimony was received by Council. On January 9, 2001, the City Clerk held an election to vote upon the proposed annexations and the levy of special taxes. The outcome of the election was that 100% of the qualified voting property owners have agreed to the annexation proceedings and have signed the appropriate ballots. Adoption of the resolutions will declare the results of the election and complete the annexation process into CFD 98-1 and CFD 98-2. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDiNG THE FISCAL YEAR 2000/2001 BUDGET BY APPROPRIATiNG $53,000 FOR THE PURCHASE OF AN AIR COMPRESSOR TRUCK (4/5THS VOTE REQUIRED) The 1992 air compressor truck currently utilized by the Traffic Signal Section of the Public Works Department is in need of replacement. However, this truck was not included in the current Fiscal Year 2000/2001 replacement program. Adoption of the resolution will allow the purchase of a new truck for the Traffic Signal Section. (Director of Public Works) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda 01/16/01 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2000/2001 BUDGET BY APPROPRIATING $28,512.04 FROM THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND FOR THE PURCHASE OF RESIDENTIAL GROWTH-RELATED VEHICLES FOR THE PARK MAINTENANCE AND URBAN FORESTRY SECTIONS (4/5THS VOTE REQUIRED) Due to residential population growth, and the resulting increased service demands, Public Works Operations is requesting an additional vehicle for the Park Maintenance Section, and the pumhase of a larger track for the Urban Forestry Section, scheduled for normal replacement. (Director of Public Works) Staffrecommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH AYRES LAND COMPANY, AS MANAGER OF ACI SUNBOW, LLC TO AUTHORIZE CONSTRUCTION OF PHASE 2A OF EAST PALOMAR STREET AS A CHANGE ORDER TO THE CONTRACT FOR PHASE lC OF EAST PALOMAR STREET AND TO RECEiVE TRANSPORTATION DEVELOPMENT IMPACT FEE (TDIF) CREDIT On November 14, 2000, Council authorized Ayres Land Company, as manager of ACI Sunbow, LLC, to construct phases lC and 2A of East Palomar Street and to receive TD1F credit. Ayres Land Company (ACI Sunbow, LLC), through the guest builder, Centex Homes, sought and received 3 bids for the construction of Phase lC of East Palomar Street, between Medical Center Court and Paseo Ladera. That project, along with the adjacent development's improvements, was awarded to Erreca's, Inc. ACI Sunbow is requesting that they be allowed to award the contract for Phase 2A, between Paseo Ladera and the Sunbow eastern boundary, to Erreca's Inc. as a change order to the contract for Phase lC. The TDIF ordinance requires developers to obtain three bids, but allows Council to modify that condition by agreement. (Director of Public Works) Staffrecommendation: Council adopt the resolution. 7 A. REPORT REGARDING THE DEVELOPMENT IMPACT FEE (DIF), PARK ACQUISITION AND DEVELOPMENT (PAD) FEE, AND TRUNK SEWER CAPITAL RESERVE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING FiNDiNGS THAT THE UNEXPENDED FUNDS IN THE PARKLAND ACQUISITION AND DEVELOPMENT (PAD) FEE FUND ARE STILL NEEDED TO PROVIDE CONSTRUCTION OF FACILITIES FOR WHICH THE FEES WERE COLLECTED State law requires local agencies assessing Development Impact Fees and capacity charges to make available specified financial data to the public each fiscal year. This report satisfies that requirement and also includes, for ease of reference and for the convenience of members of the public, information on Parkland Acquisition and Development fees. (Deputy City Manager Powell/Director of Public Works) Staff recommendation: Council accept the report and adopt the resolution. Page 3 - Council Agenda 01/16/01 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. 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 Commission on Aging - Martha Doiron. 10. COUNCIL COMMENTS CLOSED SESSION 11. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6 · City Negotiator: City Manager · Employee Organization: International Association of Firefighters ADJOURNMENT to the Adjourned Regular Meeting on January 18, 2001, and thence to the Regular Meeting of January 23, 2001, at 6:00 p.m. in the Council Chambers. Page 4 - Council Agenda 01/16/01 J~ 3rd4, 2001 MEMO TO: Cgty C~_2rk FROM: Pat~ We~p ~~ SUBJECT: SPECIAL ORDERS OF THE DAY -JAN 16, 2001 Would yow p ~e ckw3~W3~e~ iaff ~te.w O rd~s of the Day ftyr t~e 1/16/2001 pr~w~v co~ ~3~e Bov~ta V~ta H ~h ScY~vol Vo~ba21T~ cc: A~t city Mcvaaxffe~ Morris P c~tr6c ia S af6v ~ CI'IY OF CHULA VISTA OFFICE OF THE CITY A'I-FORNEY Date: January 10, 2001 To: The Honorable Mayor and City Council From: John M. Kaheny, City Attorney~L//d~ Report Regarding Actions Taken in Closed Session for the Meeting of 1/9/01 The City Council of the City of Chula Vista met in Closed Session on 1/9/01 to discuss: · CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.6: City Negotiator: city Manager Employee Organization: International Association of Firefighters The Redevelopment Agency of the City of Chula Vista met in Closed Session on 1/9/01 to discuss: · CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8: Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street Negotiating city Council/Redevelopment Agency(Sid Morris/Chris Parties: Salomone) and Chula Vista Center (Robert Caplan) Under Negotiation: Price and terms for acquisition Property: Assessor Parcel No. 568-270-30; 344 F Street (approximately .25 acres located at the southeast corner of Fourth Avenue and Garrett} Negotiating City Council/Redevelopment Agency(Sid Morris/Chris Parties: Salomone) and Park Centre (Richard Zogob) 276 FOURTH AVENUE · CHULA VISTA · CALIFORNIA 91910 · (619) 691-5037 · FAX (619) 409-5823 The Honorable Mayor and City Council January 10, 2001 Page 2 Negotiating City Council/Redevelopment Agency(Sid Morris/Chris Parties: Salomone) and Park Centre Richard Zogob) Under Negotiation: Price and terms for acquisition The City Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. JMK:lgk CITY OF CHULA VISTA '~11 December 26, 2OOO The City of Chula Vista [ 276 Fourth Avenue COUNCIL 0FFIC[S Chula Vista, CA, 91910 CHULA ViS 13. Dear members of the City of Chula Vista, My name is Lauren TaR, and I am one oftnirty-six nigh school students recently selected to attend the 2000 Youth Leadersnip Conference at Freedoms Foundation at Valley Forge, Pennsylvania and Washington, D.C. The Freedoms Foundation at Valley Forge is an organization whose mission is to impart to young Americans an understanding of and commitment to our national heritage, the basic values upon which this nation was built, the free enterprise system, and responsible citizenship. The conference will include meetings with prominent historians, educators, journalists, and economists. We will tour Valley Forge National Park, historic Philadelphia, and travel to Washington, D.C., to meet legislators and visit important national historical sites. I am a juniur at Bonita Vista High School. I am enrolled in the International Baccalaureate program and have a 4.8 GPA. I am on the varsity swim team and participate in the Key Club at school. In addition, I belong to Girl Scouts and show horses competitively. Although the San Diego County Chapter of Freedoms Foundation at Valley Forge underwrites a significant portion of the costs of this trip, we students must find £mancial sponsors within our community who support youth programs. I need to raise a total of $600 by February 1, 2000. I would like to ask that you will consider helping me achieve this goal. To show my appreciation for your sponsorship, I would be happy to provide a program on the conference and Freedoms Foundation at Valley Forge for one of your meetings. Please call me at (619) 421-3489 or Diana Nokes, Vice President of Youth, at (858) 538-5609 if you need more information. If you choose to sponsor me, your check must be made out to FFVF, San Diego County Chapter and mailed to my address given below. All sponsorships are tax deductible. Thank you so much for considering sponsoring me on this wonderful and exciting learning opportunity. 2c~ely, ~en Tail 1372 Cerritos Court Chula Vista, CA 91910 (6 ] 9) 421-3489 COUNCIL AGENDA STATEMENT Item Meeting Date 1/16/01 ITEM TITLE: A. Resolution of the City Council of the City of Chula Vista, California Acting as the Legislative Body of Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC-OVP- SPA One, Villages 1 West & 2]), Declaring the Results of a Special Election in Such Community Facilities District and Determining that such Territoi'y is Added to and Part o£such Community Facilities District B. Resolution of the City Council of the City of Chula Vista, California, Acting as the Legislative Body of Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP- SPA One, Villages 6 & 7]), Declaring the Results of a Special Election in Such Community Facilities District and Determining that such Territory is Added to and Part of such Community Facilities District SUBMITTED BY: Director of Public Works ~ REVIEWED BY: City Manager~ (4/5ths Vote: Yes__ No X ) On December 19, 2000, Council held a public hearing on the proposed annexations to CFD 98-1 and CFD 98-2 and authorized the submittal of the levy of special taxes to the qualified electors of the territory proposed for annexation. At the public hearing, no public testimony was received by Council. On January 9, 2001, the City Clerk held an election to vote upon the proposed annexations and the levy of special taxes. The outcome of the election was that 100% of the qualified voting property owners have agreed to the annexation proceedings and have signed the appropriate ballots. Tonight, Council would declare the results of the election and complete the annexation process into CFD 98-1 and CFD 98-2 and direct the recordation of a Notice of Cessation of Special Tax as appropriate. RECOMMENDATION: That Council: 1. Approve the resolution acting as the legislative body of Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 1 West & 2]), declaring the results of a Special Election in such Community Facilities District and Determining that such Territory is Added to and Part of such Community Facilities District, 2. Approve the resolution acting as the legislative body of Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 6 & 7]), declaring the results of a Special Election in such Community Facilities District No. 98-2 and Determining that such Territory is Added to and Part of such Community Facilities District. 3-! Page 2, Item Meeting Date: 1/16/01 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Council formed CFDs 98-1 and 98-2 on September 15, 1998. CFD 98-1 encompasses all parcels within Villages 1 West, 2, 2 West, 6 and 7 owned, at that time, by the Otay Ranch Company. CFD 98-2 encompasses all the parcels within Otay Ranch Villages 6 and 7 owned, at that time, by McMillin. Both CFDs are considered "interim" districts and would levy special taxes on vacant land in order to guarantee the funding of 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 future Villages to establish the means to finance the ongoing maintenance of the ultimate landscaping improvements. McMillin is in the process of developing a portion of Viltage 6 located with CFD 98-2. In order to clearly define their ownership within Villages 6 and 2, McMillin and The Otay Ranch Company are currently conducting a land swap. With the impending land swap, ownership boundaries will change; thus, an adjustment to the boundaries of CFDs 98-1 and 98-2 is needed. This will be accomplished by annexation of the land swap areas into the appropriate CFD and filing the corresponding Notices of Special Tax Lien Cancellation. The proposed land swap would result in a net increase of 3.462 acres to CFD 98-1 and a corresponding net decrease of 3.462 acres to CFD 98-2. The recorded Annexation Maps are shown in Exhibits A and B. The annexed areas will be subject to the provisions of the adopted Rate and Method of Apportionments of the respective CFD (see Exhibits C and D). Staff has deten~ined that the proposed changes would not affect the districts' ability to provide sufficient funding for the operation and maintenance of the improvements related to each respective District. On November 7, 2000, Council approved resolutions adopting two annexation maps showing the boundaries of the annexed territories and declaring its intent to authorize the annexation of certain parcels. On December 19, 2000, Council held a public hearing approving the resolutions making certain determinations and authorizing the submittal of the levy of special taxes to the qualified electors of certain territories proposed to be annexed into CFD 98-1 and CFD 98-2. At this public hearing no public testimony was received by the City Council. On January 9, 2000, in the office of the City Clerk, the qualified property owners held an election and voted upon the annexations into the fore mentioned districts. The qualified property owners have signed the consent to waiver forms to shorten the election timeframe. The Rate and Method has been considered and the property owners are aware of the maximum special tax that will be levied against the annexation territories. The outcome of the election was that 100% of the qualified voting property owners have agreed to the annexation proceedings and have signed the appropriate ballots. These are on file with the City Clerk. Tonight, Council will, by the adoption of the accompanying resolutions, declare the results of the election, declare the properties annexed to CFD No. 98-1 and 98~2, respectively, and direct the recordation of a Notice of Cessation of Special Tax as appropriate. Page 3, Item Meeting Date: 1/16/01 Future Actions There are no further actions required for these particular annexations within Community Facilities District Nos. 98-1 & 98-2 to be heard by the City Council. Staff and the City Clerk will record the appropriate documents with the County Recorder's Office. Resolutions There are two resolutions on today's consent calendar, which, if adopted, will accomplish the following: The RESOLUTION OF THE CITY COUNCIL OF CITY OF CHULA VISTA acting as the legislative body of CFD 98-1 would officially declare the results of a Special Election and complete the proceedings for the proposed annexation into Community Facilities District No. 98- 1. The RESOLUTION OF THE CITY COUNCIL OF CITY OF CHULA VISTA acting as the legislative body of CFD 98-2 would officially declare the results of a Special Election and complete the proceedings for the proposed annexation into Community Facilities District No. 98- 2 Staff and legal counsel have reviewed the proposed resolutions and consider them ready for approval. Fiscal Impact All costs related to these annexation proceedings for CFD No.'s 98-1 and 98-2 are being borne by the developers and the on-going administration and maintenance will be funded entirely by each district. Exhibits: A. CFD No. 98-1 Annexation Map B. CFD No. 98-2 Annexation Map C. Rate and Method of Apportionment - CFD No. 98-1 D. Rate and Method of Apportionment - CFD No. 98-2 I I:\ItOME\ENGINEER\LANDDEV~Otay Ranch-McMillin\OR403F Al 13 CERTIFICATION OF RESULTS.doc 1/9/01 8:04:05 AM Exhibit "C" Community Facility District ~,;u. 9b-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. 98-1 (Interim Open Space Maintenance District) of the City of Chuta Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") through'the application of the following procedures. All of the property within the District, unless otherwise exempted by law or the express provisions of the rate and method of apportionment expressed below, shall be taxed to the extent and in the manner provided below. All Special Taxes applicable to Parcels shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of 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 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) ofethe 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 peri'od starting on July 1 and ending the following June 30. M:/$project/chulavista/C F D98-1.2.doc ~__/~ Community. Facility District No. 98-1 Special Tax Report July 1, 1998 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 the current Fiscal Year in which Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls of the County. Reserve Fund means a fund that shall be maintained to provide necessary cash flow for operations and maintenance for the first six months of each Fiscal Year, working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Special Taxes and a reasonable buffer against large variations in annual special tax amounts. Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to 100% of the Operating Fund Requirement. Special Tax means the special tax or special taxes actually levied within CFD No. 98-1. Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating Fund to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total' amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, less the Reserve Fund Balance. 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. Cateqories of Special Taxes Taxable Category The taxable land category includes each Parcel of Taxable Property assigned to the District (Taxable Ca!egory). The M~imum Special Tax which may be evied on each Parcel within the Taxable Category for Fiscal Year 1998/99 shall be $103 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum SpeCial Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots (Exempt Category). Assiclnment to Cateqories of Special Taxes On or about July 1 of each year (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll) the City shall assign each Parcel within the District to the Taxable Category, or Exempt Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levy and Apportionment of Special Taxes The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District as follows: Step 1: The Special Tax per Acre for Parcels assigned to the Taxable Category shall be calculated as the lessor of: (i) The Special Tax Liability for the District as determined by the City, divided by the total Acres for all Parcels assigned to the Taxable Category, Community Facility District No. 98-1 Special Tax Report July 1, 1998 Page 9 OR, (ii) the Maximum Special Tax rate for Parcels assigned to the Taxable Category Step 2: The City shall advise the owner of Parcels within the District of the Special Tax Liability for the next Fiscal Year. Step $: The o.wner(s) of Parcels within the District, may at its election, deposit funds with the City prior to July 15 each Fiscal Year, in an amount equal to the Parcel's Special Tax v~hich shall be deposited into the Operating Fund and Reserve Fund of the District. Step 4: If the funOs Oeposited with the City is loss than the Parcel's Special Tax for the Fiscal Year, then a Special Tax shall be levied equal to the Parcel's Special Tax as determined in Step 1 minus any funds deposited for the current Fiscal Year pursuant to Step 3. M~$projectJchulavista/CFD98-1.2.doc ~ ~- ~ Exhibit "D" Community Facility District No. 98¥;~ Special Tax Repod 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 No, 98-2 (Interim Open Space Maintenance District) of the City of Chula Vista (the "District"), and collected according to the Special Tax Liability determined by the City of Chula Vista (the "City") thrp~gh the application of the following procedures. All of the property within the District, unless othei'wise exempted by law or the express provisions of the rate and method of apport~Cnment expressed below, shall be taxed to the extent and in the manner provided below. All Special Taxes applicable to Parcels shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that Special Taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes. DEFINITIONS Acre or Acreage means the area of a Parcel as shown on the latest maps of the Assessor of the County of San Diego, or, if the area of such Parcel is not shown on such Assessor's maps, the area as shown on a current recorded subdivision map, parcel map, record of 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 undertaking actions to foreclose on properties for which the payment of Special Taxes is delinquent, and all other costs and expenses of the City related to the District. City means the City of Chula Vista District means the Interim Open Space Maintenance District - SPA Two (Villages 6 & 7.) of the Community Facilities District No. 98-2 of the City of Chula Vista. Facilities means those improvements defined in Part II of the Special Tax Report dated July 1, 1998 for Community Facilities District No. 98-2 of the City of Chula Vista. Fiscal Year means the per!od starting on July 1 and ending the following June 30. [~! M:/$project/ch ulavista/CFD98-2.1.doc ~ ~ Community' Facility District No. 98-2 Special Tax Report Jury 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 precedir~g Fiscal Year. Operating Fund Requirement means for any Fiscal Year an amount equal to the budgeted costs of the maintenance, repair and replacement have been accepted of the Facilities which and maintained by the District or are reasonably expected to be accepted and maintained by the District during the current Fiscal Year plus the budgeted Administrative Expenses of the District for the current Fiscal Year in wt~ich Special Taxes are levied. Parcel means any San Diego County Assessor's Parcel or portion thereof that is within the boundaries of the District designated on a map of the San Diego County Assessor and which has been assigned a discrete identifying number on the equalized tax rolls of the County. Reserve Fund means a fund that shall be maintained to provide necessary cash flow for operations and maintenance for the first six months of each Fiscal Year, working capital to cover maintenance and repair cost overruns and delinquencies that may arise in connection with the collection of Special Taxes and a reasonable buffer against large variations in annual special tax amounts. Reserve Fund Balance means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. Reserve Fund Requirement means the required balance in the Reserve Fund equal to up to 100% of the Operating Fund Requirement. Special Tax means the special tax or special taxes actually levied within CFD No. 98-2. Special Tax Liability for any Fiscal Year is an amount determined sufficient to pay the costs of the District, including: (i) the amount required to be deposited into the Operating FUnd to meet the Operating Fund Requirement, less the Operating Fund Balance, and (ii) the total amount required to be deposited into the Reserve Fund if any, to meet the Reserve Fund Requirement, less the Reserve Fund Balance. Taxable Property is all real property or Parcels within the boundaries of the District which are not exempt from the Special Tax pursuant to law, or which are not classified or assigned to the Exempt Category as defined herein. M:/$projectJohulavista/CFD98-2.1.doc . ~.~ / / Community Facility District No. 98-2 Special Tax Report July 1, 1998 Page 7 Cateqories of Special Taxes Taxable Category The taxable land category includes each Parcel of Taxable Property assigned to the District (Taxable Category), The Maximum 'Special Tax which may be levied on each Parcel within the Taxable Category for Fiscal Ye~ 1998199 shall be $47.52 per Acre (said amount to be levied pro rata for any portion of an Acre). Said Maximum Special Tax shall be increased or decreased each Fiscal Year thereafter by a factor which shall be the lesser of the annual percentage change in the January to January San Diego Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. Exempt Category The exempt category includes each property owned by, conveyed or irrevocably offered for dedication to a public agency, land which is in the public right-of-way, unmanned utility easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). Assi.qnment to Cateqories of Special Taxes On or about July 1 of each year (but in any event in sufficient time to include the levy of the Taxes secured tax the shall each Parcel within the Special on the County's City assign District to the Taxable Category, or Exempt Category. Parcels subject to levy shall be determined based upon the records of the San Diego County Assessor. Levy and Apportionment of Special Taxes The City shall determine the Special Tax Liability for the District in each Fiscal Year on or about every July 1 (but in any event in sufficient time to include the levy of the Special Taxes on the County's secured tax roll). Special Taxes shall then be levied on each Parcel within the District as follows: Step 1: The Special Tax for Parcels assigned to the Taxable Category shall be calculated as the lessor of: (i) The Special Tax Liability for the District as determined by the City, divided by the total Acres for all Parcels assigned to the Taxable Category, M:/$projectJchulavista/CFD98-2.1 Community Facility 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 o,wner(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 Parcer's Special Ta~<' 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:/$project/chulavista/CFD98-2.1.doc ~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA~ CALIFORNIA~ ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 1 WEST & 2]), DECLARING THE RESULTS OF A SPECIAL ELECTION 1N TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-1 (iNTERIM OPEN SPACE DISTRICT [OTAY PROJECT~ LLC-OVP-SPA ONE~ VILLAGES 1 WEST & 2]) AND DETERMINING THAT SUCH TERRITORY IS ADDED TO AND PART OF SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the '~City Cotmcil'), has previously undertaken proceedings to annex certain property (the ~'Anncxation Area") to Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 1 West & 2]) (the '~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')~ and, WHEREAS, this City Council did call for and order to be held an election to submit to the qualified electors of the Annexation Area a proposition relating to the levy of special taxes within the Annexation Area; and, WHEREAS, at this time said election has been held and the measure voted upon and such measure did receive the favorable 2/Ys vote of the qualified electors within the Annexation Area~ and this City Council desires to declare the results of the election in accordance with the provisions of the Elections Code of the State of California and to determine that the Annexed Area is added to and made a part of the District. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA~ ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST & 2]), DOES HEREBY RESOLVE, DECLARE~ FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. This City Council hereby receives and approves the CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST, as submitted by the City Clerk, acting in her capacity as the Election official, said Statement setting forth the number of votes 1 cast in the election, the measure voted upon, and the number of votes given for and/or against the measure voted upon. A copy of said Certificate and Statement is attached hereto, marked Exhibit "A", referenced and so incorporated. SECTION 3. The City Clerk is hereby directed, pursuant to the provisions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said STATEMENT OF VOTES CAST. SECTION 4. This City Council hereby determines that the Annexed Area is added to and a part of the District. SECTION 5. This City Council hereby determines that the special tax shall cease to be levied on that territory within the District which is being concurrently annexed to Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 6 & 7]) and directs the Secretary to record or cause the recordation of a Notice of Cessation of Special Tax as to such territory. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny ~ Director of Public Works City Attorney 2 EXHIBIT "A" CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 98-1 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES I WEST & 2]) SPECIAL ELECTION in said City, held January 9, 2001. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the territory proposed to be annexed to such District (the "Aunexation Area") in such City, and the whole number of votes cast for the Measure in such Annexation Area, and the totals of the respective columns and the totals as shown for the Measure are full, true and correct. I. TOTAL NUMBER OF VOTES CAST: II. VOTES CAST ON PROPOSITION A: YES ~. NO WITNESS my hand and Official Seal this lO~4~l'J dayof ddoxLrzc&.~ ,2001. CITY CLERK ELECTION OFFICIAL CITY OF CHULA VISTA STATE OF CALIFORNIA 3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING iN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]), DECLARING THE RESULTS OF A SPECIAL ELECTION IN TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 98-2 (iNTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]) AND DETERMiNING THAT SUCH TERRITORY IS ADDED TO AND PART OF SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has previously undertaken proceedings to annex certain property (the "Annexation Area") to Community Facilities District No. 98-2 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 6 & 7]) (the "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"); and, WHEREAS, this City Council did call for and order to be held an election to submit to the qualified electors of the Annexation Area a proposition relating to the levy of special taxes within the Annexation Area; and, WHEREAS, at this time said election has been held and the measure voted upon and such measure did receive the favorable 2/3's vote of the qualified electors within the Annexation Area, and this City Council desires to declare the results of the election in accordance with the provisions of the Elections Code of the State of California and to determine that the Annexed Area is added to and made a part of the District. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. This City Council hereby receives and approves the CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST, as submitted by the City Clerk, acting in her capacity as the Election official, said Statement setting forth the number of votes 1 cast in the election, the measure voted upon, and the number of votes given for and/or against the measure voted upon. A copy of said Certificate and Statement is attached hereto, marked Exhibit "A", referenced and so incorporated. SECTION 3. The City Clerk is hereby directed, pursuant to the provisions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said STATEMENT OF VOTES CAST. SECTION 4. This City Council hereby determines that the Annexed Area is added to and a part of the District. SECTION 5. This City Council hereby determines that the special tax shall cease to be levied on that territory within the District which is being concurrently annexed to Community Facilities District No. 98-1 (Interim Open Space District [Otay Project, LLC-OVP-SPA One, Villages 1 West & 2]) and directs the Secretary to record or cause the recordation of a Notice of Cessation of Special Tax as to such territory. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt John Kaheny ~ - Director of Public Works City Attorney 2 EXHIBIT "A" CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 98-2 (INTERIM OPEN SPACE DISTRICT [OTAY PROJECT, LLC-OVP-SPA ONE, VILLAGES 6 & 7]) SPECIAL ELECTION in said City, held January 9, 2001. I FURTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in the territory proposed to be annexed to such District (the "Am~exation Area") in such City, and the whole number of votes cast for the Measure in such Annexation Area, and the totals of the respective columns and the totals as shown for the Measure are full, true and correct. I. TOTAL NUMBER OF VOTES CAST: /d~, II. VOTES CAST ON PROPOSITION A: YES ,g- NO WITNESS my hand and Official Seal this / ~2'~day of J~ , 2001. CITY CLERK ELECTION OFFICIAL CITY OF CHULA VISTA STATE OF CALIFORNIA 3 COUNCIL AGENDA STATEMENT Item Meeting Date 01 / 16/2001 ITEM TITLE: Resolution Amending the FY2000-01 budget by appropriating $53,000 for the purchase of an air compres~r truck. SUBMITTED BY: Director of Public Works A~_~j..!/ // REVIEWED BY: City Manager %aY~0~ o' (4/5ths Vote: Yes X No ) The 1992 air compressor truck currently utilized by the Traffic Signal Section of the Public Works Department is in need of replacement. However, this truck was inadvertently not included in the current FY2000-01 replacement program. This action will allow the purchase of a new truck for the Traffic Signal Section. RECOMMENDATION: That the City Council amend the FY2000-01 budget by appropriating $53,000 for the purchase of an air compressor truck. BOARD/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: The FY 2000-01 Equipment Maintenance budget provides for the routine replacement of various vehicles. However, the current air compressor track (1992) utilized by the Traffic Signal Section was inadvertently not included in the replacement list during the review process. Consequently, this track's condition has deteriorated to the point that expensive repairs are needed to keep it functioning. Rather than continue these expensive repairs, Central Garage has requested that the truck now be replaced. The new truck will have the newest technology for the operation of the truck and the air compressor. FISCAL IMPACT: The net total cost including taxes is estimated to be $53,000. Funds for replacement are routinely accumulated during the fiscal year from the various departments. This amount is available from the Equipment Replacement Fund. File No: 1320-Df H:\SHAREDkPubli¢ Works Operations~A 1 } 3 Signal Truok.doe RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY2000-01 BUDGET BY APPROPRIATING $53,000 FOR THE PURCHASE OF AN AIR COMPRESSOR TRUCK WHEREAS, the FY2000-01 Equipment Maintenance budget provides for the routine'replacement of various vehicles, however, the current air compressor truck was not included in the replacement list during the review process; and WHEREAS, the 1992 air compressor truck currently utilized by the Traffic Signal Section of the Public Works Department has deteriorated and expensive repairs are needed to keep · it functioning; and WHEREAS, Central Garage has requested that the truck be replaced with a new truck. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the FY2000-01 budget by appropriating $53,000 for the purchase of an air compressor truck from the Equipment Replacement Fund. Presented by Approved as to form by John P. Lippitt JO M. Kaheny ~ Director of Public Works ~ Attorney IH:IH OME~ATTORN EY/R ESO\ Air compressor truck (Januap7 9,2001 (4 42pm)] COUNCIL AGENDA STATEMENT Item Meeting Date: 1/16/2001 ITEM TITLE: Resolution Amending the FY00/01 budget by appropriating $28,512.04 from the Public Facilities Development Impact Fee Fund for the purchase of residential growth-related vehicles for the Park Maintenance and Urban Forest? Sections. ^~/ SUBMITTED BY: Director of Public Works ~.I~/ REVIEWED BY: City Manager ~TcdY (4/5ths Vote: Yes X No ) Public Works Operations is responding to the increased service demands due to residential population growth by adding a vehicle for the Park Maintenance Section to the City's fleet and purchasing a larger track for the Urban Forestry Section scheduled for normal replacement. RECOMMENDATION: That the City Council amend the FY00/01 budget by appropriating $28,512.04 from the Public Facilities Development Impact Fee Fund for the purchase of residential growth-related vehicles for the Park Maintenance and Urban Forestry Sections. BOARD/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: The Park Maintenance Section is requesting a vehicle for the Park Ranger position that was added in FY99/00 and approved without a vehicle in the Park Maintenance study. The Park Maintenance Section continues to experience dramatic growth in the number of City parks and greenscape areas it has to maintain. As a result, it has now been determined that this position cannot function without a vehicle due to the number of parks citywide. This vehicle will cost a total of $21,871.60 and will be purchased with Public Facilities Development Impact Fees (DIF). The FY 2000-01 Equipment Maintenance budget provides for the replacement of one pickup truck in the amount of $23,310 for the Urban Forestry Section. However, this track is too small to meet the current and future needs of the crew. This truck must be big enough to tow tree stumpers as well as haul plants and materials. Therefore, the Urban Forestry Section is requesting a larger, more versatile truck for replacement. Consequently, an additional $6,640.44 in DIF (in addition to the $23,310 already approved in Equipment Replacement Budget) is being requested to purchase a larger utility truck ($29,950.44) for the Urban Forestry Section. These two vehicles, for Park Maintenance and Urban Forestry, will be purchased under an existing purchasing agreement previously approved by City Council. FISCAL IMPACT: The net total cost including taxes is $51,822.04. ~m appropriation of $28,512.04 is requested from the Public Facilities Development Impact Fee Fund. The remaining $23,310 is available from the Equipment Replacement Fund. H:\SHARED\Public Works Operations\Al 13 Park Maint & Urban Forestry FY01 .doc File No: 1320-Df RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY2000-01 BUDGET BY APPROPRIATING $28,512.04 FROM THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND FOR THE PURCHASE OF RESIDENTIAL GROWTH-RELATED VEHICLES FOR THE PARK MAINTENANCE AMD URBAN FORESTRY SECTIONS WHEREAS, the FY2000-01 Equipment Maintenance budget provides for the replacement of one pickup truck in the amount of $23,310 for the Urban Forestry Section; and WHEREAS, the Park Maintenance Section is requesting a vehicle for the Park Ranger position that was added in FY99/00 and approved without a vehicle in the Park Maintenance study; and WHEREAS, the Park Maintenance Section continues to experience dramatic growth in the number of City parks and greenscape area it has to maintain; and WHEREAS, it has now been determined that this position cannot function without a vehicle due to the number of parks citywide and said vehicle will cost a total of $21,871.60 and will be purchased with Public Facilities Development Impact Fees; and WHEREAS, therefore, the Urban Forestry Section is requesting a larger, more versatile truck for replacement and an additional $6,640.44 in DIF (in addition to the $23,310 already approved in Equipment Replacement Budget) is being requested to purchase a larger utility truck ($29,950.44) for the Urban Forestry Section. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the FY2000-01 budget by appropriating $28,512.04 from the Public Facilities Development Impact Fee Fund for the purchase of residential growth-related vehicles for the Park Maintenance and Urban Forestry Section. Presented by Approved as to form by Director of Public Works /~j~y Attorney ~ IH \HOME~ORNEY/RESO\ Urban Forest~ t~ck (Janua~ 5. 2001 (12 29pm)] COUNCIL AGENDA STATEMENT Item ~ Meeting Date 1/16/01 1TEM TITLE: Resolution Approving an agreement with Ayres Land Company as manager of ACI Sunbow, LLC to Authorize construction of Phase 2A of East Palomar Street as a change order to the contract for Phase lC of East Palomar Street and to receive TDIF Credit REVIEWED BY: City Manager(.~? (4/5ths Vote: Yes No X ) On November 14, 2000, the City Council authorized Ayres Land Company as manager of ACI Sunbow, LLC to construct phases lC and 2A of East Palomar Street and to receive Transportation Development Impact Fee (TDIF) credit. Ayres Land Company (ACI Sunbow, LLC) through the guest builder, Centex Homes, sought and received 3 bids for the construction of Phase lC of East Palomar Street between Medical Center Court and Paseo Ladera. That project, along with the adjacent development's improvements, were awarded to Erreca's, Inc. ACI Sunbow is requesting that they be allowed to award the contract for Phase 2A, between Paseo Ladera and the Sunbow Eastern Boundary, to Erreca's Inc. as a change order to the contract for phase lC. The TDIF ordinance requires developers to obtain three bids, but allows the Council to modify that condition by agreement. RECOMMENDATION: That the City Council approve the resolution approving an agreement with Ayres Land Company as manager of ACI Sunbow, LLC to Authorize construction of Phase 2A improvements on East Palomar Street as a change order to the contract for Phase lC of East Palomar Street and to receive TDIF Credit. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: On November 14, 2000, the City Council adopted a resolution which authorized Ayres Land Company, as manager of ACI Sunbow, LLC, to construct East Palomar Street between Medical Center Court and the Eastern Boundary of Sunbow and to receive TDIF credit for that work. The construction on East Palomar Street was divided into two phases, lC and 2A. Centex Homes, acting on behalf of ACI Sunbow, sought and received three bids for the phase lC work on East Palomar Street between Medical Center Court and Paseo Ladera. The low bidder was Erreca's, Inc. and the construction contract was awarded to that firm. On December 12, 2000, Ayres Land Company requested that they be permitted to contract with Erreca's, Inc. to do the work on phase 2A as a change order to the contract on phase lC. With the exception of a few bid items, they have negotiated with Erreca's to do the construction of phase 2A at the same bid prices as that for phase lC. Ayres Land Company cites the following benefits as justification for doing this work as a change order: Page 2, Item __ Meeting Date: 1/16/01 Construction on this portion of East Palomar Street can begin much quicker if they do not have to go through the bid process. Erreca's was able to get their subcontractors to hold their bid prices, which might not be possible if they went through the bid process. Due to the current construction climate, it might be difficult to get three or more qualified bidders. Because Erreca's is doing the work on the adjacent segment of East Palomar Street and the adjacent subdivision, it would be a logistical nightmare of having multiple contractors on the same site. Attached is a spread sheet showing the comparison of prices between the contract for phase 1C and the proposed contract (change order) for phase 2A. The cost of construction of phase lC, based on the contract for that phase, is $738,809.10. The cost of construction of phase 2A, based on the proposed contract for that phase, is $836,052. I0. Section 3.54.040 of the Municipal Code (the TDIF Ordinance) requires a developer to secure at least three qualified bids for work to be done. However, paragraph C. 11 of that section permits the City, in their discretion, to modify any of the requirements through an agreement entered into with the developer. The attached agreement authorizes Ayres Land Company, as manager of ACI Sunbow, LLC, to enter into a change order on the phase lC contract with Erreca's, Inc. for the construction of phase 2A. A concern of staff is the price of the traffic signal shown on the bid for phase 2A. There is no similar work on phase lC and staff is comparing the proposed price with similar City contracts for traffic signal installation to determine whether or not the price for the traffic signal work is justified. The agreement provides that ACI Sunbow shall receive credit for the cost of the Traffic Signal installation at the price determined to be fair and reasonable by City staff, after the completion of the construction and the post construction audit. Last, the agreement also requires Ayres Land Company, as manager of ACI Sunbow, LLC, to indemnify the City and its employees should a lawsuit arise over the City's action in permitting the work to be done as a change order to a previous contract. FISCAL IMPACT: None to the City. Ayres Land Company will receive TDIF credit in accordance with the provisions of Municipal Code Chapter 3.54, Transportation Development Impact Fee. The actual amount of credit will be determined by the Director of Public Works and be based on final costs. The developer will pay all related City staff costs, including those for administration of the TDIF credit procedure. Attachments: December 12, 2000 letter from Ayres Land Company November 14, 2000 Council Agenda Statement East Palomar Street Bids - Phases 1C and 2A Agreement between Ayres Land Company and the City cls: H:\HOME\ENGINEER\AGENDASPalomar phase 2A.doc 1/10/01 3:10:23 PM ATTACHMENT AYRES Land Company December 12, 2000 Mr. Cliff Swanson CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 RE: EAST PALOMAR / PHASE 2A Dear Cliff: Please find enclosed the following documents: I. Phase lC bid fi.om Erreca's; Phase lC cost/quantity detail; 3. Phase 2A bid from Erreca's; and 4. Comparison worksheet These documents will show that Erreca's bid on 2A is at the same price as that for IC. We will be providing this document to Centex Homes, and their intention is to process this proposal as a change order to their existing In order for us to receive our TDIF credits, the City will need to approve this change order. The benefits of doing this as a change order are many: Construction on this crucial portion of East Palomar can begin much quicker (January); Erreca's was able to get their subs to hold their prices, which might not be possible if we went to a bid process; At this time, it might be difficult to get three or more qualified bidders; and It will eliminate the logistical nightmare of having multiple contractors on the same site. Please let me know if you have any questions. I will call you to schedule a meeting to discuss. Thank you for your cooperation in this matter. Sincerely, AYRES LAND COMPANY, INC. AS MANAGER OF ACI SUNBOW, LLC William R. Hamlin Executive Vice President Enclosures cc: George Krempl (w/o encls.) Anne Moore (w/o encls.) 750 B Slreet, Suite 2370 San Diego, CA 92101 (619) 544-9100 1619) .aagl-0646 FAX ATTACHMENT COUNCIL AGENDA STATEMENT Item Meeting Date 11/14/00 ITEM TITLE: Resolution ~.t)bO ~.~[I ~uthorizing Ayres Land Company as Manager of ACI Sunbow, LLC to construct the portions of East Palomar Sa'eet identified and included in Sunbow II, Phases lB, lC and 2A, as well as the Poggi Canyon Detention basin included in the Phase lA' contract, and receive credit against Transportation Development Impact Fees. REVIEwEDSUBMITTEDBy:BY: DirectOrcity of Public Manager~~10~' (4/Sths ¥ote: Yes_No_.X..) The City has received letters dated March 3, 2000 and October 9, 2000 from Ayers Land Company requesting authorization and Transportation Development Impact Fee credit for construction of roadway facilities along East Palomar Street from Medical Center Drive to the easterly boundary of Sunbow II, Phases lB, lC and 2A, and for improvements related to Olympic Parkway construction between Oleander Avenue and Brandywine Avenue, including drainage basin improvements in Poggi Canyon and mitigation (general biological, wetlands, CSS) for Phase lA and IB roads. RECOMMENDATION: That the City Council adopt the resolution authorizing Ayres Land Company as Manager of ACI Sunbow, LLC to construct the portions of East Palomar Street identified and included in Sunbow II, Phases IB, lC and 2A as well as the Poggi Canyon Detention basin included in the Phase lA contract, and receive credit against Transportation Development Impact Fees. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: East Palomar Street - Sunbow II Phase 1B On March 3, 2000, Samuel M. Holty, Vice-President o£ Ayres Land Company as Manager of ACI Sunbow, LLC, sent a letter (Exhibit "A') to the City requesting authorization and Transportation Development Impact Fee credit £or the construction o£ East Palomar Street from Medical Center Drive to the easterly boundary o£Sunbow II, Phase lB. This street segment is identified as a portion of Project No. 17 on the City's Transportation Development Impact Fee (TDIF) Capital Improvement Program (CIP) list included in the Development Impact Fee Report revision dated October 25, 1999 (Exhibit "B"). A minimum of three bids for the construction work involved are required for TDIF credit by Council. Kaufman and Broad, Inc., the guest builder for this portion o£ Sunbow II, obtained qualified bids from three companies. A contract was signed between Kaufman and Broad, Inc. and the low bidder, Erreca's, Inc., on May 13, 1999. Kaufman and Broad also entered into a "Purchase and Sale Agreement" with ACI Sunbow assigning the Development Impact Fee credits to Sunbow. A copy of the overall contract amounts for East Palomar Street are shown in Exhibit "C". Page 2, Item Meeting Date 11/14/00 Staff has reviewed the TDIF-eligible elements of the proposals submitted by the three firms that submitted bids. It appears that Erreca's bid is also the lowest of the three bids submitted for the TDIF items. The overall contract amounts for the work covered by this TDIF project are summarized as follows for the East Palomar Street portion of Sunbow II, Phase lB. 1. Storm drain construction: $206,500.00 Dry utilities: $70,610.00 3. Roadway construction/street improvements: $580,605.00 4. Grading/Earthwork: $499,992.00 5. Landscape, planting, hardscape, irrigation: $253,300.00 6. Street lights, traffic signal poles, street hardware: $71,725.00 TOTAL: $1,682,732.00 East Palomar Street - Sunbow II Phase 1C The City subsequently received a letter from Mr. Holty dated October 9, 2000 (Exhibit "D') requesting reimbursement by the City for improvement work related to additional phases (lC, 2A and 2B) of the Sunbow II project. Phase lC consists of certain residential developments known as Sunbow Village 5 and Sunbow Village 6 plus a portion of East Palomar Street. Centex Homes, the guest builder for this portion of Sunbow II, obtained qualified bids from four companies. A contract was signed between Centex Homes and the low bidder, Erreca's, Inc., on April 3, 2000. Centex Homes also entered into a "Purchase and Sale Agreement" with ACI Sunbow assigning the Development Impact Fee credits to Sunbow. The portion of Erreca's bid eligible for TDIF credit is included in Exhibit "E". Staffhas reviewed the TDIF-related elements of the proposals submitted by the four bidding companies. It appears in this case as well that the overall Erreca's bid is the lowest of the three bids submitted for the TDIF items. The contract amounts for the work covered by this TDIF project are as follows for the East Palomar Street portion of Sunbow II, Phase lC. 1. Storm drain construction: $27,010.00 2. Roadway construction/street improvements: $265,981.40 3. Grading/Earthwork: $92,530.00 4. Landscape, planting, hardscape, irrigation: $207,228.70 5. Street lights, traffic signal poles, street hardware: $146,059.00 TOTAL: $738,809.10 East Palomar Street - Sunbow II Phases 2A and 2B As part of their letter dated October 9, 2000, Ayres Land Company also requested reimbursement for facilities constructed within Phases 2A and 2B. They submitted a copy of preliminary estimates made by Rick Engineering Company, dated August 9, 2000, for all construction work associated with these projects. A review of the construction plans for Phase 2B indicates that no new TDIF-eligible Page 3, Item Meeting Date 11/14/00 improvements will be constructed with this phase. The construction estimate for the East Palomar Street portion of Phase 2B is summarized as follows. Note that the bonding mount (as discussed in Exhibit "F") will be used for credit at this time. Sunbow Phase 2A, East Pal0mar Street: 1. Grading and Mobilization: $83,153.00 2. Roadway construction/streets: $502,171.00 3. Storm drain construction: $26,984.00 TOTAL: $612,308.00 Total of bonding amount for this project: $591,205.00 GRAND TOTAL, PHASES lB, lC and 2A: $3,033,849.10 Under TDIF ordinance procedures, a developer may request credit for the construction of facilities identified in the TDIF project list. The construction cost estimate for Project No. 17, from Medical Center Drive to the eastern Sunbow boundaries, as revised in the October 25, 1999 report "Eastern Area Development Impact Fees for Streets", is $1,726,099 plus $258,915 for contingencies, or $1,985,014.00 total. This is significantly less than the estimated construction cost of $3,012,746 for this portion of East Palomar Street. However, this difference is relatively small when compared to the entire TDIF program of $216,752,798, and it should be made up by subsequent TDIF projects that cost less than the estimated amount. Olympic Parkway The City received an additional letter from Mr. Holty, dated March 3, 2000 (Exhibit "G"), requesting reimbursement by the City for improvements related to various components of Olympic Parkway improvements between Oleander Avenue and Brandywine Avenue, including drainage basin improvements in Poggi Canyon and mitigation (general biological, wetlands, CSS) for Phase IA and IB roads. Based on the cost breakdown from TC Construction, the total cost of the Poggi Canyon drainage basin was $916,969.50. Based on an impact analysis performed by Merkel & Associates in an August 31, 1999 letter (Exhibit "H") accompanying the October 9, 2000 Ayres Land Company letter, DIF element roads impacted 6.27 acres of wetlands and CSS of a total project impact area of 17.22 acres. Mr. Holty applied the percentage of the acreage impacted (36%) against the total cost of $916,969.50 to arrive at a figure of $330,109, which Ayres is requesting as reimbursement. Ten percent of the total ($91,697) would be associated with East Palomar, while 23 percent ($210,903) would be for Olympic Parkway and three percent ($27,509) for Medical Center Drive. Staffgenerally agrees with this methodology. Ayers' letter also requested reimbursement for plauning work performed for the off-site section of Olympic Parkway and mitigation (general biological, wetlands, CSS) for Phase lA and lB roads. Since these components are not directly construction-related, they would not be considered for TD1F credit at this time. Planning and design-related items will be considered for credit during the audit process after construction has been completed. Page 4, Item Meeting Date 11/14/00 TDIF Cr?dit Process The TDIF ordinance provides a procedure for issuance of credits to developers. According to Section 3.54.040 of the City of Chula Vista Municipal Code, the developer, upon approval of the estimated cost by the Director of Public Works, shall be entitled to immediate credit for 50 percent of the estimated cost of the construction attributable to the Transportation Facility Project. Once the developer has received valid bids for the project which have been approved by the Director of Public Works, the amount of the immediate credit shall be increased to 75 percent of the bid amount. The immediate credits shall be applied to the developer's obligation to pay fees for building permits issued after the establishment of the credit. Ayres Land Company has complied with the procedural requirements of the TDIF ordinance for credit at the 75 percent level for Sunbow II, Phases IA, lB and lC and at the 50 percent level for Sunbow II, Phase 2A. Per this ordinance a description and cost estimate of the improvements along with other information and statements are required to be submitted to the City Council. The October 9, 2000 letter from Ayres Land Company to the City transmitted an engineer's estimate for Phase 2A and 2B improvements to East Palomar Street and the credit requested by Ayres. The September 11, 2000 letter from the City to ACI Sunbow delineates the approved estimates for the Faithful Performance and Material and Labor Bonds for the street improvements to the Phase 2A portion of East Palomar Street. The following information has been submitted as required by the ordinance for credit at the 75 percent level: 1. Letters dated March 3, 2000 and October 9, 2000 to the City Engineer requesting that the City authorize reimbursement or credit for the construction of a portion of East Palomar Street as identified in Sunbow II, Phase lB and lC, and reimbursement for the construction of improvements related to various components of Olympic Parkway improvements §'etween Oleander Avenue and Brandywine Avenue, including drainage basin improvements in Poggi Canyon for Phase lA and lB roads. 2. Rick Engineering, under contract with Kaufrnan and Broad, has prepared and submitted grading and improvement plans to the City. The improvement plans were approved as of February 15, 1999. 3. Easements and rights-of-way for the project have all been obtained as required by the Director of Public Works. 4. All necessary permits and environmental clearances necessary for construction of the project have been obtained by Ayers Land Company. Ayers Land Company has also paid all required permit and plan check fees and posted any security which is necessary for the project. 5. The TDIF ordinances require a developer to secure at least three (3) qualified bids for the work to be done. This requirement has been complied with for the improvements included in the Phase 1B and 1 C portions of East Palomar Street. Page 5, Item Meeting Date 11/14/00 6. We have received copies of the "Purchase and Sale Agreement and Escww Instructions" entered into between ACI Sunbow and Kaufman and Broad Coastal, Inc. and Centex Homes. Exhibit 'T' includes the section of each Agreement which assigns to the seller, Ayres Land Company, Development Impact Fee credits. When work on these projects has been completed to the satisfaction of the City, Ayers Land Company shall submit verification of payments made for the construction of the project to the City. The Director of Public Works shall make the final determination on expenditures which are eligible for credit. FISCAL IMPACT: None to the City. Ayres Land Company as Manager ofACI Sunbow, LLC will receive credit in accordance with the provisions of Ordinance #2251 and as amended by Ordinances #2289, #2580 and #2802. Upon Council approval, Ayres Land Company as Manager ofACI Sunbow, LLC will be eligible to receive up to $2,063,738 at the 75 percent level and $295,602 at the 50 percent level against required Transportation Development Impact Fees. The actual amount of credit will be determined by the Director of Public Works and be based on actual final costs. The developer will pay all related City staff costs including those for administration of the TDIF credit procedure. Exhibits: A. Letter dated March 3, 2000 from Samuel M. Holty of Ayres Land Company to City re Sunbow II, Phase 1 B/Request for Authorization to Construct East Palomar Street. B. Plat for Project No. 17, East Palomar Street between Medical Center Drive and Sunbow Eastern boundary. C. Estimate for East Palomar Street in contract between Kaufman and Broad, Inc. and Erreca's, Inc. for Sunbow II, Phase lB. D. Letter dated October 9, 2000 from Samuel M. Holty of Ayres Land Company to City re Sunbow II, Phase lC, 2A and 2B. E. Bid Letters and estimates from Erreca's, Inc., for Sunbow II, Phase 1C. F. Letters dated September 11, 2000 from City to ACI Sunbow detailing approved estimates for construction bonds for Sunbow Phase II. G. Letter dated March 3, 2000 from Samuel M. Holty of Ayres Land Company to City on Request for Reimbursement for Improvements Related to Olympic Parkway. H. Letter and Table from Merkel & Associates, dated August 31, 1999, regarding DIF Elements for Sunbow Development Projects. I. Agreements between Ayres Land Company and Kaufman and Broad, Inc. and Centex Homes regarding assignment of DIF credit. H:\HOME\ENGINEER~AGENDA~ADS UNBOW.WPD FILE #0730-95 HX 059 ATTACHMENT ATTACHMENT Agreement by and between City of Chula Vista, a Municipal Corporation, and Ayers Land Company as Manager of ACI Sunbow, LLC Regarding Phase 2A Construction of East Palomar Street This Agreement is entered into effective as of ., 2001, by and between the City of Chula Vista ("City") and Ayers Land Company as manager of ACI S unbow, LLC ("Developer") with reference to the following facts: Recitals Whereas, on November 14, 200 the City Council of the City of Chula Vista authorized Developer to construct phases 1C and 2A of East Palomar Street and to receive credit against the Transportation Development Impact Fee (TDIF); and Whereas, Developer sought and received 4 bids for the construction of Phase 1C of East Palomar Street between Medical Center Court and Paseo Ladera; and Whereas, Phase lC and the adjacent developments improvements were awarded to Erreca's Inc (Contractor) as the lowest responsive bidder; and Whereas, Developer is now prepared to proceed with Phase 2A and has requested the City authorize a change order to the contract for Phase 1C to allow Contractor to construct Phase 2A; and Whereas, Section 3.54 of the Municipal code (the TDIF Ordinance) requires a developer to obtain at least 3 qualified bids; and Whereas, paragraph C. 11 of the TDIF Ordinance permits the City to modify any of the requirements through an agreement; and Whereas Developer recommends modifying the bidding requirement through this agreement, and City staff concurs, because the construction of this portion of East Palomar can begin much more quickly by using the same contractor, Contractor has negotiated with the subcontractors to hold their bid prices, logistical difficulties will be avoided by having the same contractor responsible for both segments of work, and due to current construction climate, it may be difficult to get three or more qualified bidders on the project. NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, Developer and City agree as follows: 1. Developer shall enter into a change order with Contractor constructing Phase 1C for the construction of Phase 2A of East Palomar Street provided construction is completed at the same bid prices as received through the bidding process utilized prior to the award of Phase 1C. 2. Developer shall receive TDIF credit for Phase 2A, provided Developer is in compliance with the terms of this agreement, in accordance with the provisions of Ordinance #2251 as amended by Ordinances #2289, #2580, and #2803. 3. Developer may receive TDIF credit for the cost of the Traffic Signal installation upon a determination, in the sole discretion of the Director of Public Works, in a reasonable and fair amount based upon the cost for similar work performed under City contract after completion of the construction and the post construction audit. 4. Developer shall and does hereby agree to indemnify, defend, protect and hold harmless the City, its officers, employees, agents and representatives, from and against any and all claims, suits, actions, liabilities, losses, damages, and demands to which the City is exposed resulting directly or indirectly from (a) the City's preparation, review, approval of this Agreement, (b) the granting of the modification by the City Council of the bidding requirements contained within the TDIF Ordinance, and (c) any and all other claims related to the construction of Phase 2A. Further, Developer, 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. Developer's indemnification of City shall not be limited by any prior or subsequent declaration by the Developer. 5. General Provisions a. Amendment or Cancellation of Agreement. This Agreement may be amended from time-to-time or cancelled by the mutual consent of the parties hereto but only in the same manner as its adoption. The term "this Agreement" includes any such amendment properly approved and executed. b. 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. c. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one instrument. d. Entire Agreement. This Agreement contains the entire agreement between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein. SIGNATURE PAGE TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND AYERS LAND COMPANY AS MANAGER OF ACI SUNBOW, LLC REGARDING PHASE 2A CONSTRUCTION OF EAST PALOMAR STREET City of Chula Vista ACI Sunbow, LLC by by Shirley Horton, Mayor William R. Hamlin Date ATTEST: Susan Bigelow, City Clerk Approved in form by: Approved in form by: John M. Kaheny City Attorney RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH AYRES LAND COMPANY AS M3kNAGER OF ACI SUNBOW, LLC TO AUTHORIZE CONSTRUCTION OF PHASE 2A OF EAST PALOMAR STREET AS A CHANGE ORDER TO THE CONTRACT FOR PHASE lC OF EAST PALOMAR STREET AND TO RECEIVE TRANSPORTATION DEVELOPMENT IMPACT FEE CREDIT WHEREAS, on November 14, 2000, the City Council authorized Ayres Land Company as managers of ACI Sunbow, LLC to construct Phases lC and 2A of East Palomar Street and to receive Transportation Development Impact Fee (TDIF) credit; and WHEREAS, Ayres Land Company (ACI Sunbow, LLC), through the guest builder, Centex Homes, sought and received 3 bids for the construction of Phase lC of East Palomar Street between Medical Center Court and Paseo Ladera and that project, along with the adjacent development's improvements, were awarded to Erreca's, Inc.; and WHEREAS, ACI Sunbow is requesting that they be allowed to award the contract for Phase 2A, between Paseo Ladera and the Sunbow Eastern Boundary, to Erreca's Inc. as a change order to the contract for Phase lC; and WHEREAS, proceeding through a change order instead of a new bid process is in the City's best interest because: 1. Construction on this portion of East Palomar can begin much more quickly. 2. Erreca's has been able to secure the Phase lC bid prices from the subcontractors for the Phase 2A work. 3. Due to the current construction climate, it may be difficult to get three qualified bidders at a reasonable cost. 4. The use of the same contractor on the adjacent segments of work will avoid the logistical difficulties presented by having multiple contractors on site. WHEREAS, the TDIF ordinance requires developers to obtain three bids, but allows the Council to modify that condition by agreement. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve an Agreement with Ayres Land as Manager of ACI Sunbow LLC to authorize construction of Phase 2A of East Palomar Street as a change order to the contract for Phase lC of East Palomar Street and to receive TDIF Credit, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement in substantially the form presented with such minor modifications as may be required or approved by the City Attorney for and on behalf of the City of Chula vista. Presented by Approved as to form by John P. Lippitt Director of Public Works City Attorney [H:\HOME~ORNE~RESO\ Sunbow Phase ~ TDIF (Janua~ 11,2001 ( 11:45am)] Page 1, Item V/ Meeting Date 1/16/2001 COUNCIL AGENDA STATEMENT ITEM TITLE: Report Regarding the Development Impact Fee (DIF), Park Acquisition and Development (PAD) Fee, and Trunk Sewer Capital Reserve Funds for the Fiscal Year Ended June 30, 2000 Resolution No. Making Findings that the Unexpended Funds in the PAD Fee Fund are still needed to provide construction of facilities for which the fees were collected SUBMITTED BY: Deputy City Manager-Administrative Services~ Director of Public Works/~ REVIEWED BY: City Manager~ ~'/~ (4/STHS Vote: Yes No X ) SUMMARY: State law requires local agencies assessing Development Impact Fees CDIF") fees and capacity charges to make available specified financial data to the public each fiscal year. This report satisfies that requirement and also includes for ease of reference and for the convenience of members of the public information on Parkland Acquisition and Development (PAD) fees. RECOMMENDATION: That Council accepts the report and approves the Resolution making findings that the unexpended PAD funds are still needed to provide construction of facilities for which the fees were collected. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: State law requires local agencies assessing Development Impact Fees CDIF") fees and capacity charges to make available specified financial data to the public each fiscal year. This report satisfies that requirement and also include for ease of reference and for the convenience of members of the public information on Parkland Acquisition and Development (PAD) fees. It Page 2, Item Meeting Date 1/16/2001 also requires that the local agency provide this information to the public for a minimum of fifteen days prior to reviewing this information at a public meeting. SB 1760 likewise requires local agencies to make available to the public, within 180 days after the last day of each fiscal year, information about capacity charges. These reports have been available in the City Clerk's office for public review since December 22, 2000. The City of Chula Vista has several types of Development Impact Fees CDIF"), Parkland Acquisition and Development fees ("PAD"), and Trunk Sewer Capital Reserve fees, which were assessed during the fiscal year, ended June 30, 2000. The major categories of DIFs are for transportation, traffic signal, park, drainage, sewer and public facilities. The TranspOrtation DIF was increased in November 1999 from $3,998 to $5,920 per EDU. The Public Facilities DIF fees were increased in June 2000 from $2,150 to $2,618 per EDU. Other existing DIFs remained at the same rate as the previous year. DEVELOPMENT IMPACT FEES (DIF) TRANSPORTATION DEVELOPMENT IMPACT FEE - This fee was adopted by the City to finance and coordinate the construction of new transportation facilities so that streets are built when needed. This fee is applicable to all new development east of 1-805. Prior to the program, streets were built by developers in a fragmented fashion with 6-lane facilities, necking down to 2-lanes and expanding back to 6 lanes again. In addition, there was a fairness issue since some developers fronted on large streets and others did not. Now all developers in the Eastern portion of Chula Vista pay the same fee per dwelling unit and either the City constructs the street or a developer does, using the cost to offset the TransDIF fee at the building permit stage. The fee for FY00 was $5,920 per equivalent dwelling unit (EDU). Detailed FY00 financial information is presented on Attachment A - Schedule 1. EASTLAKE PARK DEVELOPMENT IMPACT FEE - This fee was adopted by the City to finance and coordinate the construction of park facilities in the Eastlake area. During FY00, the City and Eastlake changed the terms of the loan through the Amended and Restated Eastlake II! Development Agreement, which was approved by the City Council on February 1, 2000. It is ordinance number 2805 which became effective March 6, 2000. Under the revised agreement, the City has loaned the principal plus accrued interest for a total of $880,738 from this fund to Eastlake. The demand for payment shall be within 90 days of City's written request or June 1, 2002 whichever occurs first. The amount of interest shall accrue based on the average quarterly interest earnings rate on the City's investmem pool of funds. When the funds are repaid, they will be used to build a community center. Detailed FY00 financial information is presented on Attachment A - Schedule 2. TRAFFIC SIGNAL FEE - This fee was adopted to provide for the projected traffic signal needs for the City that result from increases in traffic volume caused by development. As funds are accumulated they are expended on traffic signal projects that meet the warrants at the time the funds are available. This is a citywide fee with a FY00 rate of $13 per trip generated. Detailed FY00 financial information is presented on Attachment A - Schedule 3. Page 3, Item Meeting Date 1/16/2001 TELEGRAPH CANYON DRAINAGE DIF - This fee is applicable to all new development within the TeLegraph Canyon Drainage Basin. Detailed FY00 financial information is presented on Attachment A - Schedule 4. INTERIM PRE-SR125 DEVELOPMENT IMPACT FEE - This fee was adopted by the City to finance transportation facilities in the Eastern Territories that would be needed to provide adequate and safe transportation facilities if there are delays in the construction of State Route (SR) 125 by CALTRANS or others. The fee in FY00 was $820 per EDU. Detailed FY00 financial information is presented on Attachment A - Schedule 5. TELEGRAPH CANYON GRAVITY SEWER DIF - This is a fee for the expansion of the trunk sewer within the basin for tributary properties. The fee in FY00 was $216.50 per EDU. Detailed FY00 financial information is presented on Attachment A - Schedule 6. TELEGRAPH CANYON PUMPED SEWER DIF - This fee is collected for the expansion of the Telegraph Canyon trunk sewer to serve those properties outside of the basin. These flows are pumped into the trunk line temporarily and it is anticipated they will ultimately drain to another basin, either Pogo or Salt Creek, by gravity. If Telegraph Canyon basin becomes built out, there may be no reserve capacity for the temporary pumped flows and a parallel system must be built. At the time that the Pogo Canyon and/or Salt Creek Basin sewer facilities are completed, the unused funds paid by developments in the basin will be returned to the current property owners. The FY00 fee was $560 per EDU. Detailed FY00 financial information is presented on Attachment A - Schedule 6. SALT CREEK SEWER BASIN DEVELOPMENT IMPACT FEE - This fee was adopted to provide the necessary financing to construct the Salt Creek Interceptor. This fee is applicable to the Salt Creek Sewer Basin, that portion of the Upper Otay Lake Basin north of the Salt Creek Sewer Basin, and that portion of the Lower Otay Lake Basin east of the Salt Creek Sewer Basin. The fee in FY00 was $284 per EDU. Detailed FY00 financial information is presented on Attachment A - Schedule 6. POGGI CANYON SEWER BASIN DEVELOPMENT IMPACT FEE - This fee was adopted to provide the necessary financing to construct a trunk sewer in the Poggi Canyon Sewer Basin from a proposed regional trunk sewer west of 1-805 along Olympic Parkway to the boundary of Eastlake. The fee was established at $400 per single-family dwelling. Detailed FY00 financial information is presented on Attachment A- Schedule 6. OTAY RANCH VILLAGE 1 & 5 PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE - This fee was adopted to provide the necessary financing to construct the facilities. The fee was established at $545 per EDU. Detailed FY00 financial information is presented on Attachment A - Schedule 7. Page 4, Item Meeting Date 1/16/2001 PUBLIC FACILITIES DIF - The Public Facilities DIF is a citywide fee with several components levied to fund that portion of public facilities projects attributable to new development. The total fee for all components is $2,618 per EDU. Detailed FY00 financial information is presented on Attachment B - Schedules 1 and 2. The components of the Public Facilities DIF with the current fees are as follows: ADMINISTRATION ($134) - Administration of the Public Facilities DIF program, overseeing of expenditures and revenues collected, preparation of updates, calculation of costs, etc. CIVIC CENTER EXPANSION ($480) - Expansion of the Civic Center per the Civic Center Master Plan prepared in 1989, to provide sufficient building space and parking for the existing and anticipated staff and the public. The 1989 civic center master plan has also been updated to include the Otay Ranch impacts. POLICE FACILITY ($735) - Accommodation of the building space needs per the Civic Center Master Plan, which included upgrading of the communications center, construction of a new (or expanded) police facility, office improvements and installation of new communication consoles. Also included is the purchase and installation of a new computer aided dispatch system (CAD), a new Records Management System, and new Mobile Digital Terminals. CORPORATION YARD RELOCATION ($386) - Relocation of the City's existing corporation yard from the bay front area to the former SDG&E site rather than building from scratch. LIBRARIES ($638) - Improvements include construction of the South Chula Vista library and Eastern Territories library(ies), and installation of a new automated library system. This component is based on the updated Library Master Plan. FIRE SUPPRESSION SYSTEM ($203) - Projects include the relocation of Fire Station #4 & #3, construction of a fire training tower and classroom, purchase of a brush rig, expansion of Fire Station #1, installation of a radio communications tower and construction of an interim and permanent Station #6. This fee also reflects the updated Fire Station Master Plan, which includes needs associated with the Otay Ranch. GEOGRAPHIC INFORMATION SYSTEM ($16) - Purchase and installation of a GIS system for mapping of various base maps and creation of geo-data files to aid in planning and processing of land developments. This is a joint impetus project, with both a City and new development share. MAINFRAME COMPUTER ($7) - Purchase and installation of a new mainframe computer and various enhancements to meet existing and future needs for additional memory and storage space and enhanced processing speed. Page 5, Item Meeting Date 1/16/2001 TELEPHONE SYSTEM UPGRADE ($13) - Upgrading and expansion of the City's existing telephone system to accommodate growth, including installation of new conduit, wiring additional telephone lines, and a voice processing system. RECORDS MANAGEMENT SYSTEM ($6) - Updating and modernization of the existing records system to prepare the City for anticipated increases in transactions and volumes of records. Although the majority of project costs are to be borne by new development, it's important to note that various components or specific projects within a component contain both a City and new development cost share. The City share generally reflects "joint impetus" projects, which are necessitated by both growth and non-growth factors and/or the City's obligation to correct pre-existing space/equipment deficiencies. The PFDIF fees only relate to new development's cost share for each component. PARKLAND AQUISITION AND DEVELOPMENT (PAD) FEES This in lieu fee was adopted by the City to acquire neighborhood community parkland and construct parks and recreational facilities. The FY00 fee was $4,375 per single-family dwelling unit. Detailed FY00 financial information is presented on Attachment C. TRUNK SEWER CAPITAL RESERVE FEES This fee was established to pay all or any part of the cost and expense to enlarge sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity. Detailed FY00 financial information is presented on Attachment D. FY00 FINANCIAL INFORMATION Attachment A, Schedules 1 through 7 reports the required financial information for all DIFs other than public facilities. Attachment B, Schedules 1 and 2 reports the required financial information for the Public Facilities DIF and its components. Attachment C reports the required financial information for the PAD fees. Attachment D reports the required information for the Trunk Sewer Capital Reserve fees. The schedules contain the following items: The beginning balances as of July 1, 1999 The fees received during the fiscal year ended June 30, 2000 Other miscellaneous revenues received during the fiscal year ended June 30, 2000 The interest earned from investing the cash balances available in each fund during the Page 6, Item Meeting Date 1/16/2001 fiscal year ended June 30, 2000 The expenditures from each of the funds during the fiscal year ended June 30, 2000 A description of each capital project with expenditures funded entirely or in part by DIF/PAD/Trunk Sewer in FY00 and the percentage of the project funded by this fee through FY00. More detailed information on any project is available in the annual Capital Improvement Project (CIP) Budget. Information on any loans from DIF/PAD/Trunk Sewer Capital Reserve funds during FY00 The ending balances as of June 30, 2000 for each of the DIF/PAD/Trunk Sewer Capital Reserve Funds The amount, description and purpose of the fee An identification of an approximate date by which the construction of the public improvement will commence The ending balances as of June 30, 2000 are in the process of being audited as part of the audit of citywide financial statements, and are therefore subject to adjustment. FINDINGS REQUIRED FOR FUNDS IN POSSESSION OVER 5 YEARS Government Code Section 66001(d) requires the local agency to make findings every five years with respect to any portion of the DIF fees remaining unexpended to identify the purpose for which it was charged. This year the City has elected to make such findings for any funds remaining unexpended for five or more years. The following project has fees, which were collected five or more years ago, which remain unexpended and is listed to satisfy Section 66001(d) of the Government Code. a. Eastlake Park Development Impact Fee The fees collected prior to FY93 plus the interest earned is still needed for park facilities. Per Council approval and a request from the Eastlake Development Co. for their cash flow needs, the funds are on loan to Eastlake Development Company to be repaid on demand. No other DIF or PAD funds contain monies that have been on deposit for five or more years. Copies of this report were sent to the Ayres Land Company, the Building Industry Association of San Diego, the Eastlake Development Company, the McMillin Companies, the Otay Ranch Company and Pacific Bay Homes. Page 7, Item Meeting Date 1/16/2001 FISCAL IMPACT: With findings that identify the continued need for the unexpended and/or committed or uncommitted fees, the City retains the fees for the future projects. Without findings that the unexpended funds are still needed for the projects, the City would be obligated to refund the $783,060 in park funds plus interest accrued that have been held for five or more years pursuant to State Government Code Section 66000. Since the City has loaned $800,000 of the park funds to the developer, Eastlake Development Company, money would have to come from some other source to refund the $783,060 plus interest. The loss of the funds would jeopardize the Eastlake Park Agreement and the future EastLake community center. Attachment A - Schedules 1 through 7:FY00 Financial Information for all DIFs except Public Facilities DIF Attachment B - Schedules 1 & 2:FY00 Financial Information for Public Facilities DIF Attachment C - FY00 Financial Information for PAD fees Attachment D - FY00 Financial Information for Trunk Sewer Capital Reserve fees ATTACHMENT A ATTACHMENT A o ' ~ ' ~ .~c -- ~ ~ > ~ ~ W o~Z m----OW~o ATTACHMENT A ATTACHMENT A . > ~ <> Z ~ '- m ._ ~ .- ._ ~ Z ~ ~ ~ ~ E .~ c ~ '~ ~ ~ = - ATTACHMENT A o Z~ ~.~[=> ~=~ mo~ o~ ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT B ~z~ ~--~ ~ d ~ ~ ~ ~Oz ..... ~ m m~ ~ ~m ao.~ ATTACHMENT B ATTACHMENT B ATTACHMENT C ATTACHMENT C.1 u_~ ~ ~ o ooooooo~ooo mx ~ Eo~o~ - ~ ~o ~ x ~ ~=e~'~ ATTACHMENT D ATTACHMENT D.1 ATTACHMENT D.2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING FINDINGS THAT THE UNEXPENDED FUNDS IN THE PARKLAND ACQUISITION AND DEVELOPMENT (PAD) FEE FUND ARE STILL NEEDED TO PROVIDE CONSTRUCTION OF FACILITIES FOR WHICH THE FEES WERE COLLECTED WHEREAS, state law requires local agencies assessing Development Impact Fees ("DIF") and capacity charges to make available specified financial data to the public each fiscal year; and WHEREAS, these reports have been available in the City Clerk's office for public review since December 22, 2000; and WHEREAS, it also required that the local agency review this information at a public meeting; and WHEREAS, local agencies are also required to make available to the public, within 180 days after the last day of each fiscal year, information about capacity charges; and WHEREAS, Government Code Section 66001(d) requires the local agency to make findings every five years with respect to any portion of the DIF fees remaining unexpended to identify the purpose for which it was charged. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby make findings that the unexpended funds in the PAD Fee Fund are still needed to provide construction of facilities for which the fees were collected for the following projects: EastLake Park Development Impact Fee The fees collected prior to FY93 plus the interest earned are still needed for park facilities. Per Council approval and a request from the Eastlake Development Co. for their cash flow needs, the funds are on loan to EastLake Development Company to be repaid on demand. No other DIF or PAD funds contain monies that have been on deposit for five or more years. BE IT FURTHER RESOLVED that the staff report and all exhibits are hereby incorporated into the record of these proceedings. Presented by Approved as to form by Robert Powell, Deputy City aheny, Manager ~Attorney MEMO TO: C~ty C~k FROM: P~tyWe~p~~ SUBJECT: RATIFICATION OF APPOINTMENT W o~2d yo~ p ~o~e ~ ~q~e foq2ow i~ ~te~ ~ M a~yor's Repor~ for ~r~e f~t Co~nc~l mee~ in2001: COMMISSION ON AGING cc: Mayor H ort~v P ~tr~a S a~vacc~n A~ce Ke~p, C~ Se~eta~y Rafael AguJlar, 43; activist for juveniles, investigator with public defender's office The San Diego Union - rribut~e; San Diego, Cali[; May I 3, 2000; Jack Williams; Abstract: When he wasn't bu~y as ar) investigator for the county's Department of the Public Defender in Chula Vista, Mr. Aguilar was coordinating community social service projects and identifyiog needs for federal block grants, His community servtce resulted in commendations from O)e Chula Vista City Counol, the Chicano Federation of San Diego County and the state Assembly. Mr. Aguilar, a Chula Vista resident, died of complications from diabetes Tuesday at _~crtPps Memorial HosoitaI-Chula Vista. He was 43. Full 'lFext: Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY May 13, 2000 With a co[mnitment that reflected his family heritage, Rafael "lRafa" Aguilar championed the underdog during his 5 t/2 ,/ears on Ctmla Vista's Human Relations Commission When he wasn't busy a~ an investigator fo~ the county's Department of the Public Defender in Chula Vista, M~. Aguilar was coordinating community social serxice projects and identifying needs for ¢~deral block grants His community service resulted in commendations from the Chula Vista City Council, the Chicano Federation of San Diego County and the stale Assembly Mr Aguilar, a Chula Vista resident, died of complications from diabetes Tuesday at Scripps Memorial t-[ospital-Chula Vista He ,,vas 43 Five of Mr Aguilar's I 1 vears with the public det}ender*s office in Chula Vista were in the juvenile delinquency division "H~ loved working for the kids, prided himself on hi~ integrity and honesty, and took to heart everything he did," said Scott Gould, his supervising investigator With the Human Relations Commission, Mr. Aguilar coordi~mted efforts to send handymen to help ~eniors with home repairs, set up homeless services, and send the Sharp Mobile Clinic to elementary and middle schools to provide tree inoculations and other medical services. He was instrumental in suggesting how federal block grants are distributed to more than 30 commanitywide organizations. He also advised the City Council on matters af~ltecting civil rights and the pOOr. As a youth, Mr. Aguilar joined his parents, who were migrant workers in the Coachella V~ley, in marching with Cesar Chavez, the legendary labor leader who co-founded the United Farm Workers union Born m Arlington, Mr Aguilar grew up m Riverside County and graduated in 1975 From India ttigh School As a varsity wrestler, he advanced Ia championship competition in the Southern Section of the Califorma Interscholastic Federation After serving four years in lhe Navy, Mr. Agudar atte~Med College of the Desert for two years He ~ansferred to the University of' Cali£ort~Ja Berkeley, where he earned a bachelor's degree Jo political ucJence He joined the Chicano [;ederation of San Diego County in 1983 m~d completed the organization's i~eadership Training Institule program He also altended law school tor two years ar the University of San Diego Survivors include his daughter, Julietta Aguilar, 14; his companion, Angelica Vigueras of Chula Vista; his pareots, Delfh~a and lsmael Rivera of Indio; sisters. Norma Arballo, Nancy Aguilar, Rebecca ZamudJo, lanie Rivera and Naomi Diaz, all of lndio; m~d brothers, William and Ismael Rivera, both of I~dio Mass will be celebrated at 9 a.m. Tuesday at Our Lady of Perpetual Help Catholic Chinch, Indio, followed by [~terment i~ Coachella, [Illustration} t PlC; Caption: Rafael "Rafa" Agullar C~edit: STAFF WRITER Sub Title: [I 2 7 Edition] Column ~4ame: Obituaries Start Page: B-77; B-52; B-13:I 1).cp~,duced w~th permi~aio~ of thc co0~'igt',t ow~mr [rul'thcr reproduction ol di.sb-ibutiort is prol-~ibitt:d without [~ci'tntss~on CFIY OF CHUI.A VISTA MEMORANDUM DATE: February 6, 2001 TO: Michael Meacham, Special Operations Manager CC: Sid Morris, Assistant City Manager FROM: Willie M. Gaters, Environmental Resource Manager SUBJECT: City of Chula Vista Electricity Conservation Projects Below is a list of electricity conservation projects undertaken by the City since 1993. 1993 Civic Center Library - Chiller Project 1993 Police Department- Interior Lighting Retrofit 1995 Lighting Retrofit Phase I 1996 Lighting Retrofit Phase II 1997 Police Department- Replaced Chiller 1998 Traffic Signal Lights Red LEDs 1998 Police Department - Replaced Domestic Water Heater From the inception of the conservation efforts, the City has conserved approximately 13.8 MW of electricity and continues to conserve about 3.7 MW/year. This reflects a cumulative cost savings of approximately $1.15 Million to date at an on-going savings rate of over $300KJyear. The City's combined cost for the electricity conservation projects is approximately $990K with about $110K in incentives from SDG&E. In spring 2001, the City will retrofit green traffic signal lights with Green LED fixtures. This project will save an additional 1MW/year and result in a cost savings of about $74K/year. The City's cost for this project is $88K with $337K in incentives from SDG&E. After the completion of the Green LED replacement project, the City will conserve 4.8MW of electricity annually and will accrue savings of about $385K/year from all the electricity conservation projects combined. Additional electricity conservation projects involving the City and Community are being evaluated and will be presented to the council for approval prior implementation. If you have any questions, I can be reached at ext. 5918. cc: Energy File MEMORANDUM TO: San Diego County Board of Supervisors, Mayor of and San Diego City Council Mayor of and Chula Vista City Council FROM: william E. Claycomb, President SUBJECT: Responsibility for Electricity Industry Deregulation and Solutions for the Crisis Created We have attached copies of: 1. Our January 21, 2001, Certified Mail, Return Receipt Requested letter to Governor Gray Davis 2. January 30, 2001, two paragraphs about proton exchange membrane (pem) fuel cells. 3. History of AB1890: What it Did and Did Not Do 4. Ex-Governor Peter Barton Wilson's July 31, 1996, letter to the Federal Energy Regulatory Commission prgmising to oppose legislation which would alter the "basic framework or time line".. of electricity price deregulation. We will read into the record selected sentences from each of them. Sincerely~ 409 Palm Ave., Suite 100, Imperial Beach, CA 91932-1121 Tel: (619)429 7946 Honorable Gray Davis January 21, 2001 State Capitol Certified Mail #goo0/&~ ~DD~Dgg~%0 Sacramento, CA 95814 Return Receipt Requested Dear Gov. Davis The time has come! The solution is at hand! British Petroleum has described a plan to build a photovoltaic solar panel factory for $550 million that would manufacture 500 MW per year of solar panels. You could build it. It would reduce the cost of solar panels to about $1~000~ which is 20% of what they now cost. Elkem (Norway) and AstroPower (Delaware) have agreed to the future establishment, in Norway, of a jointly owned manufacturing venture that will supply low-cost silicon feedstock to the global solar power industry. Eileen Smith told the California PUC in September, 2000, that photovoltaic grade silicon costs only 10% of the cost of silicon now used in solar panels. You must ask your Energy Commission to combine these two break-throughs to see how low we can drive the cost of solar panel electricity. Meanwhile Enron Corp., Reliant Energy, Southern Co. and Sempra, maybe more, are all probably holding back generating plants to keep their obscene profits rolling in. When Harry Truman was president and the railroad workers went on strike, he called out the National Guard and took over the railroads to keep the workers on the job and the trains running. Governor Davis, the profiteering energy company executives are threatening the public health and safety with their rolling blackouts. You should follow Truman's exampler take Over the power plants and begin investiqations with the goal of bringing criminal charges a~ainst the execs. You would probably be guaranteed a second term. Sincerely " Clayco~b, President Tired of the electric energy crisis, the high cost of natural gas and electricity~ smogging your vehicle? Think proton exchange membrane, "pem" for short, fuel cells. Pems produce electricity from hydrogen which can come from water. The only output of a pem , in addition to the electricity, is distilled water. In the near future, the hydrogen can come from natural gas ~ethan~, but in addition to the electricity and water, the pem then produces carbon dioxide, CO?. Gasoline can be used to supply the hydrogen but at much g~eater cost and with more pollution The pem, instead of a gasoline engine, will drive your motor vehicle, and one at home will generate your electricity at night when you can't use solar cells (photovoltaics). Ballard Power Systems of Vancouver, British Columbia, Fuel Cell Energy of South Windsor, Connecticut, and Plug Power of Latham, New York, all in the fuel cell business, last September had a combined market capitalization of $12 billion. But use infoseek and search Fuel Cells 2000 for more information than you'll want to know. ~~, ~_4~~ History of/~B l~gq: W~hat it Did and Did Not D~ There is a ~at de~ of ~n~ion ~e~ding ABq890 ~d what it did ~d did not do. Much of · is ~on~ion h~ b~n du~ to p~s ~o~ ~u~ by ~pond~ who haw not ~d le~sla~on. Howev~, ~v~ F~ Ener~ ~e~lato~ Co~is~ion (FERC) Ch~ Ho~ker ~d FEKC in i~ most r~nt ord~ have ~pr~s~ ~u~fis~gly ~fo~ opi~o~ ~g~ing ~ 1890 ~d i~ ~le ~ ~e ~ent m~ltdo~ of ~e whol~ el~city m~et. ~, ~e p~ose of ~is s~ is to ~der ~ a~umte ac~t of ~e ~sto~ of ~ 1890 ~d what it did ~d did not do. ~e key point about AB 1890 is ~at it did not d~late C~ifo~a's clec~ m~ket ~d place it ~d~ f~e~ ~n~l. ~at a~on w~ ~en by &e CMifo~a P~lic Co~ission ~UC) ~ D~b~ 1995 wh~ it d~d~ ~t i~ j~s~on~ ufilifi~, Sou~ C~ifo~a Edison (SCE), Pacific G~ ~d Ele~c (PG&E) ~d S~ Diego G~ ~d El~c (SDG&E), wo~d h~cefo~ meet ~r ~tom~' pow~ n~ ~cl~ively ~u~ p~ ~m ~e f~ly m~at~ "~mp~five" whol~e ~. ~ PUC ufili~ ~ file FERC ~ ~lis~ng ~e ~d~t S~ Opmmr (ISO) ~d Pow~ ~ch~ge ~ ~d ~r m~ket s~c~, ~ ~ m s~l off ~r fossil-~cl~ ~w~ pl~, d~ ~ to sell ~1 ~r ~niniRg self-g~t~ pow~ ~m ~ ~ ~tom~' ~u~ out of~e PX ~ot ~. ~ ~e ~ w~ ~ly ap~v~ by FERC. ~e PUC's ~ng pl~ ~d i~ ~c~ el~ w~ a fait ~ccompli by ~la~ met ~ ~nf~c~ ~R~ to ~ ~ 1890 ~ Au~ 1996. At ~sla~ ~ m op~e on ~e p~mpfion ~t ~e PUC's ~~g pl~ wo~d ~ ~ ~e s~ el~ ~ ~e PUC oM~ wo~d be ~v~ by ~C, thln~ ~ffid not be ~g~ by ~e Le~sla~. ~s ~mp~on wm bm~ ~on a JMy 1996 I~ m &c ~nn of FERC ~m Gov~or Wilson piing ~ wo~d v~ my Ic~slafion ~ eh~B~ &c PUC ~g ~I~. ~m, ~c ~dam~ ~ of~ 1890 wm ~at ~c~g w~ ~e~le, ~g~s of ~y ~n~ lc~sl~vc d~. From ~s p~pe~ve it is ~i~ to ~d~d what ~e fo~ of~ 1890 wm ~ why, d~pite, ~dely ~v~t ~s ~ ~e ~sla~, ~g ~m a~d ~mi~ for m ought opposition a~t ~g, ~ 1890 w~ p~s~ ~out a ~g vo~ ~c si~fi~t el~ of~ 1890 w~ ~e follo~g: · Con~ua~on of &e s~te's ~to~c commi~t tO rm~ie ~ gme~Ron. A si~fi~t lc~sl~vc ~nc~ ~ ~c PUC o~ wm wh~ &c ~c's 5000 ~ of I ~ PUC ~ mofi~ ~ p~ by ~h~nges ~ f~ hW ~U~ ~ F"~ Po~y Act of 1992 ~h ~ a ~ c~s of ~ ~t g~, s~j~t o~y to ~C's j~fio~ ~ ~1o~ ~ m sell ~c~ ~ o~ u~ ~sion l~cs to ~o1~ cmmmm l~d ~ o~h~ ~. ~ C~fo~ uf]i6es' obli~on to sell ~m ~d buy out of~c PX ~ ~g ~v~ ~clves of ~,~ Ii: oO Governor Pete Wilson July 31, 1996 The Honorable Elizabeth A. Moler Chair Federal Energy Regulatory Commission 888 First St., N.E., Washington, DC 20426 Dear Chair Moler: I take the opportunity of your Commission's August I technical conference on California's electric restructuring to clarify my views on the vital issues of market structure, equitable distribution oi' benefits and timing. I am also writing to encourage your Commission to proceed with the implementation of its jurisdictional responsibilities as requested in the California Public Utilities Commission's (CPUC) Policy Decision. I have asked Commissioner Fessler to read this letter into the record &the proceeding so that the members oft. he Federal Energy Regulatory Commission (FERC) might have an accurate assessment of my Administration's position. For the past six years, I have made my opinion already known to each of my appointees to the CPUC and the California Energy Commission that California can no longer abide ever increasing costs in our electric infrastructure. The retail price &electricity has been, is and, if not for comprehensive reform, will remain too high for sustaining growth and improved standard of living in California. I have supported and am enthusiastically reconfirming today my strong commitment to opening robust competition at both the wholesale and retail levels for electrical generation. And, as I wrote on April 29 of this year to you and to Commissioner Fessler, I have specifically -,ndorsed the December 20, 1/)95 CPUC Policy Decision's basic framework as well as the FERC filings presented that day seeking approval of the Power Exchange and Independent Systems Operator. I also urged you and your colleagues as well as the CPUC Commissioners to proceed without delay in the implementation steps necessary to meet the start up date for this new market structure. In the intervening months, there has been neither any development nor any view that has persuaded me to alter my conviction. Indeed, I am encouraged by, and have joined, with Legislators in encouraging the responsible negotiations that have been occurring among the parties to accelerate the transition period of the Decisions so that all classes of customers will quickly and equitable share I the benefits of customer choice and lower generation costs without inequitably voiding the public contract with utility shareholders, large and small. Of course the California Legislature has an appropriate role to play in implementing these long needed reforms. Although the CPUC has sufficient statutory and constitutional authority to implement the industry restructuring the public interest will be served with statutory confirmation &the market structure called for in the Policy Decision, and the provision for a non-bypassable competition transition charge, to the extent that is needed. In addition, the CPUC is awaiting legislative direction on social, environmental and fiscal diversity programs and for the Legislature to provide a sustainable financial footing for these programs which does not distort the operation of competitive markets nor disadvantage any class of competitive entrance into the generation market. I would also seriously consider Legislative proposals to advance the date for collection of utility stranded costs, to faeilita~te the involvement of public power authorities and to accelerate the deployment of the direct access options. I wil! necessarily oppose any legislation which seeks to alter the Decision's basic framework or time line. 1 firmly believe that the CPUC has fostered unprecedented public debate on these difficult issues. The Public has been well served in the process and the CPUC has facilitated responsible joint proposals for refining the Decision from the interested parties. The Legislature, therefore, will benefit from being able to address mature and well-considered positions in its deliberations. For this reason, I am confident that the CPUC and the FERC should proceed quickly with implementation steps, knowing that the Decision's basic framework will remain stable and that a majority of the parties in the Decision are working to maintain a united California Front in the filings before your Commission. I look forward to working with both Commissions to see a successful conclusions to this historic effort. Sincerely, STATE CAPITOL · SACRAMENTO, CALIFORNIA · 95814 (916) 445-2841 POI ' San D' mgo Vista Execul F San Dieg kkam@sdenergy.org Sa n Diego Regional Energy Office 401'B Street, Suite 800 San Diego, CA 92101 www,sdenergy,org 1 O~FICE · Independent, not-for-profit corporation · Funded through state and federal public- interest energy programs · A Strategic Resource for Local Governments, Public Agencies and Consumers · Report to SANDAG Board of Directors 2 OICilCE U.S. Department of Energy California Energy Commission San Diego Association of OF Governments San Diego Gas & Electric A~Sempra£nergy'company 3 Provide Leadership on Regional Energy Issues, Policy and Planning, and Public-benefit Energy Programs Implement the Policy and Program Recommendations of the San Die o Re ional Ener Plan as Adopted by SANDAG 4 OFFICE SD · Educate - Business and Industry - Local Government/Policy Makers - Public · Facilitate - Regional Energy Planning - Local Programs - State Programs - Federal Programs · Encourage - Strategic Energy Planning - Energy-saving Practices and Policies 5 ~I#GIONil 6 · Electricity prices remain very high - Average PX Price 1999$30.89 - Average PX Price 2000$90.96 · Impact on Total SD Electricity Costs - Increased estimated cost of $3B · Primary Causes - Low Supply · Generator Maintenance · Market Power - High Natural Gas Prices 7 San I)iego Olll{l · Natural Gas Prices Spike in Fall 2000 - Price 1999 $2.40 MM/Btu - Price 2000 $6.40 MM/Btu · Primary Causes - High Demand - Utilities at near capacity/Iow storage levels - Low production levels at the well - Market power by Interstate Pipeline companies? 8 With · Evaluation of Strategic Options - Development and Implementation of Sound, Workable Energy Policies · New Construction Practices · Existing Building Upgrades · Self-generation Options · Operational Practices · Land Use Strategies · Purchasing · Transportation Opportunities- Fleets 9 D · Assistance with Identification and Selection of Consultant Support · Evaluation of Energy Procurement Strategies - Considering forming non-profit regional ESP · Energy Program Development and Administration - Efficiency and Demand Reduction Programs - Self-generation 10 O~FI([ · Clear Direction from City Manager and Identification of an Energy Champion · Close Coordination throughout City Departments · Early Close Integration of SDREO into Energy Team · Develop a Strategic Plan, then execute in order of priority - Don't over plan- adjustments can be made along the way. Most organizations are stuck at the starting line. - Don't try to do it all at once- target the Iow hanging fruit first. - Establish bounds- focus on public assets along, or will you encourage private development (e.g. m~cro-grids) 11 · Develop and adopt a comprehensive energy policy - Energy procurement - New buildings and infrastructure - Existing buildings - .Evaluate all supply alternatives (including on-site generation) - Transportation fuels - Procurement practices (including equipment and appliances) - Operational Policies · Establish a plan to accomplish achievable objectives in realistic timeframes 12 OFFI(E How ' ing · Position organization to maximize advantage of state and local funding and technical assistance - Complete building inventory · Identify buildings with high energy demand and/or older electric and mechanical systems · Audit buildings · Execute projects with attractive paybacks 13 FIFGY OFFICE City of · Adopted CO2 Reduction Plan in Nov 2000 - Provides for Energy Efficient Building Program (GreenStar) SDREO recommends a mandate for public buildings, encourage for private development · SDREO helps incorporate procedures to ensure policies are functional · Public Buildings- SDREO works with Public Works Director to evaluate Capital Improvement Plan (CIP) for next 3-5 years- helps target future energy program support 14 Diego INE~Y OF[I([ City of Vista · C02 Roduction ~lan - Solar Pool Heating Mandato (On hold) · Could set standard to address growing natural gas supply shortages - Green Power · ESP Procurement options limited · Solar Projects are good long-term investment 15 [II[R(~Y OF[ICE Next - Integrate SDREO into Strategic Energy Planning Team · Better position SDREO to bring benefits to Chula Vista - Complete building and energy system inventory and audit and aggressively pursue EE projects with high return (including ClP) - Develop and/or Implement Energy Policies · City-owned buildings · Private Development- encourage/incent in commercial and residential development 16 OFFICE Next - Evaluate Self Generation Opportunities · State funding is on its way to assist - Assemble Electricity Load Data · Be ready to commit to an energy commodity contract when market settles 17 San Diego Regi~al ~flergy Office 401 B ~6et, Suite 800 San Diego, CA 92101 www.sdenergy.org 18