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Agenda Packet 2001/08/07
AGENDA August 7, 2001 4:00 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 . RECOGNITION OF RICHARD RAEL, EQUIPMENT OPERATOR, UPON HIS RETIREMENT, FOLLOWING FORTY-ONE YEARS OF DEDICATED SERVICE TO THE CITY . EMPLOYEE OF THE MONTH - CONNIE BRENNAN, LEGAL ASSISTANT - CITY ATTORNEY'S OFFICE . RECOGNITION BY POLICE CHIEF RICHARD EMERSON OF RECENTLY PROMOTED POLICE DEPARTMENT EMPLOYEES: LIEUTENANT ROXANA KENNEDY, LIEUTENANT DAN LINNEY, ACTING LIEUTENANT TRO PEL TEKIAN, SEARGANT RICHARD POWERS, SEARGANT CHRIS HERERRA, ACTING SEARGANT STEVE FOBES, AGENT STEVE GUTHRIE, AGENT TED VILLARIN, AGENT RANDY SMITH, AGENT TONY PUYOT, ACTING AGENT LEO BANALES . INTRODUCTION OF AND OATHS OF OFFICE FOR RECENTLY HIRED POLICE OFFICERS DAVID OYOS, CRAIG ROLAIN, AND JAMES JOHNSON CONSENT CALENDAR (Items I through 10) 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 be the first items of business. 1. WRITTEN COMMUNICATIONS A. Letter ITom the City Attorney stating that to the best of his knowledge ITom observance of actions taken in Closed Session on July 24, 2001, there were no actions taken which are required under the Brown Act to be reported. Staff recommendation: The letter be received and filed. - . - ..-.------. B. Letter of resignation ITOm Robert Bliss, member of the Mobilehome Rent Review Commission. Staff recommendation: The resignation be accepted with regret and the City Clerk be directed to post immediately in accordance with the Maddy Act. 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE RETENTION AGREEMENT WITH PEGGY MCCARBERG, ESQ. FOR LEGAL SERVICES TO BE PERFORMED UNDER THE SUPERVISION OF THE CITY ATTORNEY FOR FISCAL YEAR 2001/2002 In this year's budget transmittal letter, the City Attorney advised Council that the City would need to continue to provide funding for a part-time contract attorney on a continuing basis to assist with the myriad land use issues facing the City. For the past seven years, the City has utilized the services of Ms. McCarberg on an hourly basis for this purpose. It is now necessary to authorize an amendment of the retention agreement for Fiscal Year 2001/2002. (City Attorney) Staff recommendation: Council adopt the resolution. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, WAIVING INCONSEQUENTIAL BID DEVIATION, WAIVING BID IRREGULARITY, AND AWARDING CONTRACT FOR TRAFFIC SIGNAL MODIFICATIONS: PROTECTED-PERMISSIVE, LEFT-TURN PHASING AT 12 INTERSECTIONS (TF278/282) TO HMS CONSTRUCTION, INc., IN THE AMOUNT OF $270,003.40 On July 3, 2001, the Director of Public Works received sealed bids ITom five electrical contractors for the traffic signal modifications project (TF278/282). This is a state grant- funded project under the Congestion Mitigation and Air Quality program. HMS Construction, Inc., submitted the low bid of $270,003.40 for this project. (Director of Public Works) Staff recommendation: Council adopt the resolution. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDER NO. 2 FOR THE GREG ROGERS PARK IMPROVEMENTS (PROJECT PR-169), IN THE AMOUNT OF $25,384, AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE SAID CHANGE ORDER ON BEHALF OF THE CITY On December 5, 2000, Council adopted Resolution No. 2000-448, awarding a contract in the amount of $492,212 (including contingencies of $82,000) to Famania Construction, Inc., for the Greg Rogers Park improvements (Project No. PR-169). On April 10,2001, the Director of Public Works approved Change Order No. I, in accordance with City Council Policy No. 574-01. Per Resolution 2000-451, Change Order No.2 exceeds the cumulative contract change order aggregate amount allowable to be approved by the Director of Public Works. Change Order No.2, in the amount of $25,384, is for extended general conditions and various items of work necessary to complete the project in accordance with City standards. (Director of Public Works) Staffrecommendation: Council adopt the resolution. Page 2 - Council Agenda 08/07/01 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CITY STAFF'S ACTION ON APPROVING CHANGE ORDERS ASSOCIATED WITH THE CONSTRUCTION OF THE PUBLIC WORKS OPERATIONS FACILITY AND CORPORATION YARD, APPROVING ALL THE CHANGE ORDERS LISTED ON ATTACHMENT B OF THE RESOLUTION, AND AUTHORIZING STAFF TO PROCESS UP TO AN ADDITIONAL $250,000 IN CHANGE ORDERS Last September, Council amended Policy No. 574-01, authorizing the City Manager to approve all change orders pertaining to the Corporation Yard project with a single change order, value not exceeding $50,000, and a cumulative value of up to $250,000. The policy permits the City Manager to exceed the limits if delay of the approval would cause a delay in the "critical path" schedule of the project. Adoption of the resolution will ratify staffs recent approval of change orders associated with the construction of the Corporation Yard project and valued at $246,810. Adoption of the resolution will also approve change orders valued at $199,751, and authorize staff to process up to an additional $250,000 in change orders, in accordance with the policy. (Director of Public Works) Staff recommendation: Council adopt the resolution. 6A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE MAXIMUM AUTHORIZED SPECIAL TAX RATES FOR FISCAL YEAR 2001/2002, FOR COMMUNITY FACILITIES DISTRICT NOS. 97-1, 97-2, 97-3, 98-1, 98-3, 99-1, 99-2 AND 2000-1, AUTHORIZING THE LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2001/2002 AT THE MAXIMUM AUTHORIZED SPECIAL TAX RATES APPLICABLE TO EACH DISTRICT, AND DELEGATING TO THE CITY MANAGER THE AUTHORITY TO ESTABLISH THE SPECIFIC SPECIAL TAX RATE APPLICABLE TO EACH PARCEL B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE CONTRACT WITH SPECIAL DISTRICT FINANCING AND ADMINISTRATION, LLC, FOR SPECIAL DISTRICT ADMINISTRATIVE SERVICES, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT One new Community Facilities District (CFD) was established during Fiscal Year 2000/2001 in the Otay Ranch and Sunbow developments, in addition to the eight CFDs established during Fiscal Years 1998-2000. Special taxes must be levied during Fiscal Year 2001-2002 in seven of these districts in order to pay for the maintenance of open space and preserve areas in CFDs 97-1, 97-2, 99-2 and 98-3, and bondholders must begin to be repaid in CFDs 97-3, 99-1 and 2000-1. Due to the cost associated with the new district added to this contract and the work associated with processing the large number of buy-downs in CFDs 97-3 and 99-1, an increase in the contract amount is required. (Director of Public Works) Staff recommendation: Council adopt the resolutions. Page 3 - Council Agenda 08/07/01 -. -. --.-------------. 7 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH VOLLMER ASSOCIATES, LLP, FOR A TOLL ROAD OPERATIONAL REVIEW FOR THE SR-125 PROJECT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH INFRASTRUCTURE MANAGEMENT GROUP, INC., FOR A FINANCIALLY- BASED APPRAISAL OF THE SR-125 FRANCHISE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $65,000 FROM THE INTERIM SR-125 DEVELOPMENT IMPACT FEE FUND TO THE SR-125 FRANCHISE REVIEW CAPITAL IMPROVEMENT PROGRAM PROJECT (STM-348) (4/5THS VOTE REQUIRED) On November 7, 2000, Council authorized staff to enter into an agreement with Vollmer Associates LLP (Vollmer), to conduct a "peer" review of information used by California Transportation Ventures, Inc., in making traffic and revenue projections for the SR-125 Toll Road Facility. Further, the Council also authorized staff to enter into an agreement with InITastructure Management Group, Inc., to conduct a financially-based appraisal of the SR-125 Franchise. The agreements, as originally approved, anticipated that the completion of certain items would require input ITom third parties. Due to circumstances beyond the consultants' and City's control, these items have not been made available by those parties, and amendments to the agreements need to be approved. (Director of Public Works) Staff recommendation: Council adopt the resolutions. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH THE SAN DIEGO UNIFIED PORT DISTRICT FOR RECEIPT OF FINANCIAL ASSISTANCE IN THE AMOUNT OF $26,000 FOR HARBOR DAYS, $22,500 FOR THE "SUMMER LEGACY" CONCERT AND $15,000 FOR THE TASTE OF THE ARTS BY THE BAY This spring, the City submitted a financial assistance request to the San Diego Unified Port District (Port) for partial funding of the Chula Vista Harbor Days & Tall Ship Festival, the "Summer Legacy" concert and Taste of the Arts by the Bay. The Board of Port Commissioners approved funding of$63,500 at a meeting in June 2001, and the Port requires that the City enter into formal agreements, which stipulate conditions and City requirements for receipt of the approved funding. (Deputy City Manager Palmer) Staff recommendation: Council adopt the resolution. Page 4 - Council Agenda 08/07/01 _.. _...._---- _0. .. 0.__.- "'---'---'-------'. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE LAND OFFER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BROOKFIELD SHEA OTAY, LLC, FOR CONVEYANCE OF LAND TO THE CITY FOR UNIVERSITY PURPOSES, AND AUTHORIZING THE MAYOR TO EXECUTE SAID FIRST AMENDMENT In April of2000, the City and NM Homes, Two, Inc. entered into an agreement where the City agreed to consider future entitlements for Village II of the Otay Ranch, if NM Homes would agree to convey 536.9 acres for a proposed university site. That agreement set time ITames for the consideration of the entitlements by the end of August 2001. The new property owner, Brookfield Shea Otay, LLC and City staff are proposing that the time ITames be extended to the end of October 2001. (Director of Planning and Building) Staff recommendation: Council adopt the resolution. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2001/2002 BUDGET BY APPROPRIATING $226,015 FROM THE AVAILABLE FUND BALANCE IN THE VEHICLE REPLACEMENT FUND, $155,677 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND FOR THE PURCHASE OF A FIRE APPARATUS AND ANCILLARY EQUIPMENT, AND $26,076 IN THE FIRE DEPARTMENT BASED ON UNANTICIPATED REVENUES FOR ASSOCIATED EQUIPMENT REPLACEMENT COSTS, AWARDING A PURCHASE AGREEMENT TO PIERCE MANUFACTURING/SOUTH COAST FIRE EQUIPMENT, INC., FOR ONE TRIPLE COMBINATION PUMPER IN THE AMOUNT OF $307,365, AND INCREASING THE FIRE DEPARTMENT'S EQUIPMENT REPLACEMENT LINE ITEM BY $34,768 IN THE APPROVED FISCAL YEAR 2003 GENERAL FUND SPENDING PLAN, BASED ON UNANTICIPATED REVENUES (4/5THS VOTE REQUIRED) With the purchase of a new pumper last year, the Fire Department initiated a program of maintaining three reserve vehicles. This program was intended to retain the oldest vehicle, a Telesqurt, as the third reserve vehicle in service. However, after recent analysis, the Public Works Fleet Manager has recommended replacing the Telesqurt rather than utilizing it as a reserve vehicle. The Telesqurt was purchased in 1975 and has approximately 115,000 miles. Due to the age and mileage of the vehicle, it is very costly to maintain, and may require extensive "down time" for maintenance and repair. The increased size of the City has had a significant impact on the overall mileage of the Fire Department fleet. (Fire Chief) Staff recommendation: Council adopt the resolution. 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. Page 5 - Council Agenda 08/07/01 -.. .... -.._.___.0.__--. . PUBLIC HEARINGS The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 11. CONSIDERATION OF ADOPTION OF ORDINANCES ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT FEE In conjunction with Council's approval of the project area's annexation to the City on December 19, 2000, Council also approved Ordinance 2829, which established the San Miguel Ranch Fiscal Deficit Account. Among its various provisions pertaining to the required fifteen annual fiscal reviews of the project, and payment to the City for any identified deficits, Ordinance 2829 also required that prior to approval of the first Final Map for San Miguel Ranch, the applicant (NNP- Trimark San Miguel, LLC) establish the permanent funding mechanism to pay for the annual fiscal reviews and any deficits. The applicant is now seeking approval of the first Final Map, and it is necessary to approve a permanent funding mechanism. The proposed Urgency Ordinance and Ordinance will establish identical fees to be paid in conjunction with building permits for all residential units in San Miguel Ranch. This item must be acted upon prior to action on the Final Map (Item No. 15). (Director of Planning and Building) Staff recommendation: Council conduct the public hearing, adopt the following urgency ordinance, and place the ordinance on first reading: A. URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT FEE AS A BUILDING PERMIT-BASED FEE TO PROVIDE PERMANENT FUNDING FOR THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS FOR THE SAN MIGUEL RANCH PROJECT, AND FOR THE PAYMENT OF ANY FISCAL DEFICITS IDENTIFIED BY THOSE ANNUAL REVIEWS, AS REQUIRED BY ORDINANCE 2829, WHICH ESTABLISHED THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT (4/5THS VOTE REQUIRED) B. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT FEE AS A BUILDING PERMIT-BASED FEE TO PROVIDE PERMANENT FUNDING FOR THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS FOR THE SAN MIGUEL RANCH PROJECT, AND FOR THE PAYMENT OF ANY FISCAL DEFICITS IDENTIFIED BY THOSE ANNUAL REVIEWS, AS REQUIRED BY ORDINANCE 2829, WHICH ESTABLISHED THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT Page 6 - Council Agenda 08/07/01 -.. "_... ----.------------ 12. CONSIDERATION OF ASSESSMENT OF CERTAIN DELINQUENT SOLID WASTE SERVICE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL FOR COLLECTION (CONTINUED FROM THE MEETING OF JULY 24, 2001) Municipal Code, Section 8.24.180 allows delinquent solid waste service charges to be assessed as liens upon the affected properties and ultimately placed on the property tax bills for collection. (Deputy City Manager Powell) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ASSESSING DELINQUENT SOLID WASTE SERVICE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL 13. CONSIDERATION OF A CONDITIONAL USE PERMIT TO INSTALL, OPERATE AND MAINTAIN A WIRELESS COMMUNICATIONS FACILITY, CONSISTING OF A 66-FOOT-HIGH LIGHT STANDARD, SUPPORTING NINE ANTENNAS, AND AN ASSOCIATED EQUIPMENT BUILDING AT AN UNLIT BASEBALL FIELD WITHIN ROHR PARK, 4548 SWEETWATER ROAD (APPLICANT - COX/SPRINT PCS) Cox/Sprint PCS is requesting a Conditional Use Permit to construct and operate an unmanned cellular communications facility at 4548 Sweetwater Road (Rohr Park). The project will consist of a 384 square-foot equipment and storage building, and a 66-foot high light standard, supporting nine antennas. The light standard location is proposed to be in the right field of a currently unlit baseball diamond in the park. The City will use revenue generated ITom the antennas to purchase and install five additional lights at the ball field. (Director of Planning and Building) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A CONDITIONAL USE PERMIT (PCC-00-58) TO COX/SPRINT PCS TO CONSTRUCT AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT 4548 SWEETWATER ROAD (ROHR PARK) ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussion and deliberation by the Council, staff, or members of the public. The items will be considered individually by the Council, and staff recommendations may, in certain cases, be presented in the alternative. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Page 7 - Council Agenda 08/07/01 14. CONSIDERATION OF THE SAN MIGUEL RANCH AFFORDABLE HOUSING AGREEMENT On February 29, 2000, Council approved the San Miguel Ranch tentative subdivision map, Chula Vista Tract 99-04. A condition of the tentative map requires that the developer, Trimark Pacific San Miguel, LLC, enter into an agreement with the City to guarantee the construction and delivery of housing units affordable to low and moderate income households prior to recordation of San Miguel Ranch's first final map. To comply with this condition, an affordable housing agreement for San Miguel Ranch has been prepared for Council's consideration. Action on this item must be taken prior to action on the final map (Item No. 15). (Director of Community Development) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AFFORDABLE HOUSING AGREEMENT RELATED TO SAN MIGUEL RANCH, AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT 15. CONSIDERATION OF A FINAL MAP FOR SAN MIGUEL RANCH PHASES 1,2 AND 4, CHULA VISTA TRACT NO. 99-04 On February 29, 2000, Council approved a tentative subdivision map for San Miguel Ranch, Chula Vista Tract 99-04. The developer has submitted a master final map showing "super-block" lots corresponding to the tentative map planning areas. This map also shows the public street dedications and backbone utility easements required to serve the super-block lots. (Director of Public WorkslDirector of Planning and Building/Director of Parks and Recreation) Staff recommendation: Council adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH, PHASE 1,2 AND 4, ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, MAINTENANCE AND ACCESS EASEMENTS, ASSIGNABLE GENERAL UTILITY AND ACCESS EASEMENTS, DRAINAGE AND ACCESS EASEMENTS, PUBLIC TRAIL AND LANDSCAPE BUFFER EASEMENTS, TREE PLANTING AND MAINTENANCE EASEMENTS, SIGHT VISIBILITY EASEMENTS, SEWER EASEMENTS, AND PEDESTRIAN ACCESS EASEMENTS, ACCEPTING ON BEHALF OF THE PUBLIC FOR PUBLIC USE: CALLE LA QUINTA, PASEO VERACRUZ, MOUNT MIGUEL ROAD, AND PROCTOR VALLEY ROAD, GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS, ACKNOWLEDGING ON BEHALF OF THE PUBLIC, THE IRREVOCABLE OFFERS OF DEDICATION FOR LOT "P" FOR OPEN SPACE, TRANSPORTATION AND OTHER PUBLIC PURPOSES; FOR LOTS "M" AND "GG" FOR PUBLIC PARK PURPOSES; FOR LOTS "A" AND "0" FOR OPEN SPACE AND OTHER PUBLIC PURPOSES, ALL AS SHOWN ON THIS MAP WITHIN THIS SUBDIVISION APPROVING THE SUBDIVISION IMPROEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISIONS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS, AND APPROVING A REDUCTION IN AREA FOR CPF LOT 13 FROM 2.7 ACRES TO 1.0 ACRE Page 8 . Council Agenda 08/07/01 ..-- ....-...------. B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PHASE 1,2 AND 4, CHULA VISTA TRACT NO. 99-04, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS LICENSE AND MAINTENANCE AGREEMENT BETWEEN NNP- TRIMARK SAN MIGUEL RANCH, LLC AND THE CITY OF CHULA VISTA FOR THE MAINTENANCE OF PUBLIC LANDSCAPING AND DRAINAGE IMPROVEMENTS WITHIN A PORTION OF SAN MIGUEL RANCH, PHASES 1,2 AND 4, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN OPTION AGREEMENT BETWEEN THE CITY AND NNP- TRIMARK PACIFIC, LLC, FOR THE SAN MIGUEL RANCH SECONDARY COMMUNITY PURPOSE FACILITY (CPF) SITE, CP-B, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT 16. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING AN ENCROACHMENT PERMIT FOR GLOBAL CROSSING LOCAL SERVICES, INC. TO INSTALL AND OPERATE A FIBER OPTIC CABLE SYSTEM THROUGH THE CITY Last fall, Global Crossing Local Services, Inc. approached staff with a request to install international fiber optic lines through Chula Vista. Negotiations began last November to provide Global Crossing Local Services, Inc. with a preferred route through the South Bay in exchange for inclusion of a single conduit. The conduit was to be capable of containing the fibers necessary for South Bay cities, Caltrans, and other traffic-related agencies to connect to a single traffic management network. The remaining capacity of the conduit could then be used by local jurisdictions for local uses. (Director of Public Works/Special Operations Manager) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ENCROACHMENT PERMIT FOR GLOBAL CROSSING LOCAL SERVICES, INc., TO INSTALL AND OPERATE A FIBER OPTIC CABLE SYSTEM COMPRISED OF ONE BUNDLE OF FIVE CONDUITS AND RELATED EQUIPMENT THROUGH THE CITY, VIA FOURTH AVENUE, MAIN STREET, BROADWAY AND BEYER BOULEVARD, AND APPROVING A CONDUIT AGREEMENT THAT TRANSFERS OWNERSHIP OF ONE OF THE FIVE CONDUITS TO THE CITY ITEMS PULLED FROM THE CONSENT CALENDAR Page 9 . Council Agenda 08/07/01 ....---....----- OTHER BUSINESS 17. CITY MANAGER'S REPORTS A. Scheduling of meetings. 18. MAYOR'S REPORTS A. Ratification of appointment to the Economic Development Commission - Ramin Moshiri B. Ratification of appointment to the Cultural Arts Commission - Thomas Brewer 19. COUNCIL COMMENTS CLOSED SESSION 20. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6 . City Negotiator: City Manager . Employee Organizations: Chula Vista Employees Association, Western Council of Engineers . Employee Groups: Executive, Senior-Management, Mid-Management, Confidential and Unrepresented 21. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) . Tuchscher Development Enterprises, Inc. v. City of Chula Vista (case no. GIC 758620) . City ofChula Vista v. Barnhart Construction (case no. SDSC GIS 3859) . Itam Plastering, Inc. v. City ofChula Vista (case no. IS 5571) ADJOURNMENT to a Regular Adjourned Meeting on August 11, 2001, at 9:00 a.m. in Conference Room I, located in the Public Services Building, at 276 Fourth Avenue, and thence to the Regular Meeting of August 14,2001, at 6:00 p.m. in the Council Chambers. Page 10 . Council Agenda 08/07/01 ~~I?- -.- ~- ..,.;::---- ~.;::::=-$ CllY OF CHUIA VISTA OFFICE OFTHE CITY ATTORNEY Date: July 25, 2001 To: The Honorable Mayor and city Council John M. Kaheny, ' Ç7t{ From: C1.ty Attorney Re: Report Regarding Actions Taken in Closed Session for the Meeting of 7/24/01 The city Council of the city of Chula vista met in Closed session on 7/24/01 to discuss: . CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54957.6 City Negotiator: City Manager Employee Organizations: Chula Vista Employees Association The Redevelopment Agency of the City of Chula vista met in Closed Session on 7/24/01 to discuss: . CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: 707 F Street Negotiating city Council/Redevelopment Agency (Sid Morris/Chris Parties: Salomone) Under Negotiations: price and terms for acquisition The City Attorney hereby reports to the best of his knowledge from the 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: Igk /11 276 FOURTH AVENUE. CHULA VISTA' CALIFORNIA 91910. (619) 691-5037. FAX (619) 409-5823 .o,,'"""'~,'""',."..""' -.. .- ..-....----..-- ..,...-....,-------' ROBERT J. BLISS COMMUNITY DEVELOPMENT CERTIFIED PUBLIC ACCOUNTANT i D ,.ART ENT 289 Church Avenue. Chula Vista, CA 91910 JUl 18 2001 (619) 585-7595 . Fax: (619) 585-7597 Lice",e #OC73717 HOUSING DIVISION July 16,2001 Juan AlToyo Housing Department 276 4th Avenue Chula Vista, CA 91910 Dear Mr. AlToyo: I have moved out ofChula Vista to Bonita. It is with regret that I must resign from the Mobile Home Rent Commission. Thank you for your assistance and attention to this matter. Sincerely, ~(.~ ~ ~-c: ' _.<~, /t;.~ ~,' .' ';.."2.-,--' Robert J. Bliss, .P.A. <=> ..<'-'-' If'. ~¡f CI 0 W is: >'4.. "",0 > Sf-" 0\ w - ::It~ U ::J 0",-, w ~ë5 0:: >->- P 1-1- õë /6 SeO""'e; offe,ed Ihwugh PMG SECURITIES CORPORATION. 500 S A~$I;oI,oc A""~ Sle 850' We$' Palm Beach, fl 33401 . (5611 820.0019 . Memb" NASD & SIPC -. - ..-. --- ..-- ---.-- CITY COUNCIL AGENDA STATEMENT Item :J Meeting Date: 8/7/01 ITEM TITLE: Resolution Amending the Retention Agreement with Peggy McCarberg, Esq. for legal services to be performed under the supervision of the city Attorney for fiscal year 2001/2002 SUBMITTED BY: city Attorney t" 4/5ths vote: Yes No X BACKGROUND: In this year's budget transmittal let ter, the City Attorney advised the city Council that the City would need to continue to provide funding for a part-time contract attorney on a continuing basis to assist with the myriad land use issues facing the City. For the past seven years, the City has utilized the services of Ms. McCarberg on an hourly basis for this purpose. It is now necessary to authorize an amendment of the retention agreement for fiscal year 2001/2002. RECOMMENDATION: That Council approve the resolution amending the retention . - agreement with Peggy McCarberg, Esq. BOARD/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: For the past seven years, Ms. McCarberg has assisted the Office of the City Attorney on an hourly basis in the preparation of numerous development agreements, planning and engineering documents and other assorted legal documents. The hourly retention agreement needs to be extended for this fiscal year. Ms. McCarberg charges either $92.50 or $115 per hour depending on the nature of the assignment. The rate will increase by $5 effective September 1, 2001. She normally performs 25-30 hours of legal services per week depending upon the needs of the City. FISCAL IMPACT, None, funding for Ms. McCarberg and other specialized legal services was provided in the city Attorney's budget. No additional appropriations are required. ".\ho~e\Jcmi",\nn\~mh,cg oZ ' / .-...-'---------- RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE RETENTION AGREEMENT WITH PEGGY McCARBERG, ESQ. FOR LEGAL SERVICES TO BE PERFORMED UNDER THE SUPERVISION OF THE CITY ATTORNEY FOR FISCAL YEAR 2001/2002 WHEREAS, for the past seven years, Ms. McCarberg has assisted the Office of the City Attorney on an hourly basis in the preparation of numerous development agreements, planning and engineering documents and other assorted legal documents; and WHEREAS, the hourly retention agreement needs to be amended for this fiscal year. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby amend the Retention Agreement with Peggy McCarberg, Esq. for Legal Services to be performed under the supervision of the city Attorney for fiscal year 2001/2002, a copy of which shall be kept on file in the office of the city Clerk. Presented and Approved as to form by y J lat ~-~ -. -. -..---...-----"------ AGREEMENT FOR LEGAL SERVICES THIS AGREEMENT is entered into this - of July, 2001, by and between the City of Chula Vista, (hereinafter "the CITY") and Peggy J. McCarberg (hereinafter "ATTORNEY"). RECITALS The following recitals are a substantive part of this Agreement: ATTORNEY represents she is qualified by virtue of her experience, training, education and expertise to accomplish the services necessary under this Agreement. AGREEMENT THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Term of Agreement. This Agreement shall cover services rendered from the above- referenced date of entry of this Agreement until June 30, 2002. This Agreement shall supersede the Agreement adopted by Council Resolution No. 2000-263 on August 1, 2000. 2. Services to be Provided. The services to be performed by ATTORNEY shall consist of any and all tasks reasonably required to advise, assist and fully represent the CITY in all legal matters presented to ATTORNEY and on any matters in litigation, wherein ATTORNEY is consulted by, or appears on behalf of, the CITY. ATTORNEY'S services shall include, but are not limited to, any and all reasonably required legal 1 0<-3 -. ..... - -.....-...-"'-'---- ---......... representation on behalf of the CITY. 3. Compensation - ATTORNEY shall be compensated as follows: 3.1 Arnoun t. The CITY shall compensate ATTORNEY for services rendered at the following hourly rate of $87.50/hour except on matters identified as developer deposit account funded matters for which ATTORNEY services shall be rendered at $110. OO/hour. Effective rates for the period of July 1, 2001 through August 31, 2001, shall be 92.50/hour and $115. OO/hour respectively. Commencing September 1, 2001, those rates shall increase to $95.00/hour and $120.00/hour respectively. Such hourly compensation shall be the sole and total remuneration for services rendered pursuant to this Agreement, 3.2 Billing. ATTORNEY agrees to provide detailed invoicing of all billing for services at a minimum of every three months. The invoice shall include the amount, billing rate and basis for calculation of all fees and costs. All billing for work performed under this Agreement shall be sent to the following: John Kaheny, City Attorney 276 Fourth Avenue Chula Vista, California, 91910 (619) 691-5037. 3.3 Reimbursements for Expenses. ATTORNEY shall keep accurate records of all costs, travel and expenses. These records shall be made available to the CITY upon reasonable request. The CITY will reimburse actual, reasonable and necessary out 2 =<-1/ .... C _c-_-'-'---""-'------ ..------ of pocket expenses incurred by ATTORNEY in performing any services under this Agreement, as follows: a. Parking Fees at the actual amount charged to ATTORNEY. b Travel/Mileage at the rate allowed by the Internal Revenue Service. Any travel fees incurred outside of San Diego County must be authorized and approved in advance by the CITY. c. ATTORNEY may seek reimbursement for any actual, reasonable and necessary expenses incurred on items not identified above with the prior authorization and approval by the CITY. To obtain reimbursement, ATTORNEY shall submit a summary of expenses, along with all supporting receipts. 4. Insurance. 4.1 Professional Errors and Omissions Insurance. ATTORNEY shall obtain and maintain in full force and effect at all times Professional Errors and Omissions Liability Insurance in a reasonable amount acceptable to the City Attorney. ATTORNEY agrees to immediately notify the CITY in the event that the limits shall fall below the acceptable coverage or if the insurance policies are allowed to lapse and substitute insurance is, or is not, obtained. 4.2 Workers Compensation Insurance. 3 .,;;- 6 - ----...-..--.--...-----' ATTORNEY shall obtain and maintain, if applicable, workers compensation insurance in accordance with section 3700 of the California Labor Code. 5. Citv AGent. John M. Kaheny, City Attorney, for the purposes of this Agreement is the Agent for the CITY. Whenever authorization or approval is required, ATTORNEY understands that the City Attorney has the authority to provide the authorization or approval. 6. Independent Contractor. ATTORNEY, and anyone employed by ATTORNEY, are not and shall not be, deemed employees of the CITY. ATTORNEY is solely responsible for the payment of employment taxes, workers compensation taxes, and any other taxes for employees. 7. Conflict of Interest. ATTORNEY represents that she presently has no material financial interest other than that which may be held by the general public and shall not acquire any interest, direct or indirect, in any contract or decision made on behalf of the CITY which may be affected by the services to be performed by ATTORNEY under this Agreement. In addition to the proscriptions regarding conflicts of interest imposed on ATTORNEY by the Business and Professions Code and by California Rules of Professional Conduct, ATTORNEY represents that ATTORNEY shall not represent clients before any 4 02-& --'" .-.-..,...-----....--------' -- -.. board, commission, committee or agency of the CITY or represent any client with interests adverse to the CITY. Furthermore, ATTORNEY shall at all times avoid conflicts of interest or the appearance of a conflict of interest in performance of this Agreement. ATTORNEY shall immediately notify the City Attorney of any circumstances, or change of circumstances, that may provide for the potential for a conflict of interest, or actual conflict of interest. 8. Non Liability of Officials/Emplovees of the CITY. No official or employee of the CITY shall be personally liable for any default or liability under this Agreement. 9. ComDliance with Law. ATTORNEY shall comply with all applicable laws, ordinances, codes and regulations of the Federal, State and local governments. In addition, ATTORNEY agrees to abide by all ethical and moral standards as represented by the Rules of Professional Conduct as applied to the California State Bar. 10. Work Product. All documents, or other information developed or received, by ATTORNEY shall be the property of the CITY. ATTORNEY shall provide the CITY with copies of items upon reasonable demand or upon termination of this Agreement. 11. Notices. All notice shall be personally delivered or mailed, via first class mail, to the below listed address. In addition, such 5 =?- -. -.. -..- ---_._- addresses shall be used for delivery for service of process. ATTORNEY agrees to notify the CITY within ten (10) days of the date of any change of address and agrees to keep an updated address with the applicable courts on any matters that ATTORNEY is representing the CITY. a. Address of ATTORNEY is as follows: Peggy J. McCarberg, Esq. 613 West Valley Parkway, Ste. 345 Escondido, CA 92025 b. Address of CITY is as follows: John M. Kaheny, Esq. CITY ATTORNEY 276 Fourth Avenue Chula Vista, CA 91910 12. Default/Termination of Agreement. CITY and ATTORNEY shall have the right to terminate this Agreement without cause by giving thirty (30) days written notice. 13. Limitations Upon Assignment/Subcontracting. ATTORNEY agrees that no portion of her performance or services rendered under this Agreement shall be assigned by ATTORNEY or subcontracted to any other without prior written authorization and approval of the CITY. 14. Non-Discrimination. ATTORNEY covenants there shall be no discrimination based upon race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement. 15. Time of Essence. 6 ~-¿3 --. -....- . -----------.---- Time is of the essence in the performance of this Agreement. 16. Entire Agreement. This Agreement represents the Parties' final and mutual understanding. This Agreement supersedes any previous Agreements, oral or written. 17. Modification. This Agreement shall not be modified or replaced except by another signed, written Agreement, properly executed by the parties. 18. Waiver. The waiver of any breach or any provision of this Agreement does not waive any other breach of that term, or any other term, in this Agreement. 19. Partial Invalidity. If any part of this Agreement is found for any reason to be unenforceable, all other parts nonetheless shall remain in force. 20. Governing Law. This Agreement shall be interpreted and construed in accordance with the laws of the State of California. 21. Interpretation. This Agreement shall be interpreted as though prepared by both parties. 22. Survival. All obligations arising prior to the termination of this 7 0(--; _. -.------.--.---""-' Agreement and all provisions of this Agreement allocating responsibility or liability between the CITY and ATTORNEY survive the termination of this Agreement. 23. Attornevs' fees. If a party brings an action, including an action for declaratory relief, to enforce or to interpret the provisions of this Agreement, the prevailing party is entitled to reasonable attorneys' fees and costs in addition to any other relief to which the party may be entitled. Such fees may be set by the court in the same action or in a separate action brought for that purpose. [NEXT PAGE IS SIGNATURE PAGE] 8 c:(-/D ..-----.--..-.-.--.,.... -..-'-'-- -- -.. [SIGNATURE PAGE TO AGREEMENT FOR LEGAL SERVICES AGREEMENT] IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below. Date: "7/z.-/c I CITY OF CHULA VISTA t . , By: Date: ATTEST: By: City Clerk Date: PEGGY J. MCCARBERG By: ~~ :s)1l ~ C~W?J'- P J. McCarberg APPROVED AS TO FORM: Jo ci ;, \ch, \carmen, \ ,;m\.grec \mccachccg.O 1 9 c?-/ / -. -. ...---.----------'--'- ~I~ --::...- CITY OF (HUlA VISTA DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION MEMORANDUM August 1,2001 TO: The Honorable Mayor and City Council FROM: John Lippitt, Director of Public Works ~ SUBJECT: Agenda Item for August 7, 2001, Accepting Bids and Awarding Contract for "Traffic Signal Modifications: Protected-Permissive Left Turn Phasing at 12 Intersections" (TF278/282) One of the intersections being modified by this project (Third Ave./Moss St.) is within the Montgomery Annexation district. The sites for this CIP project were selected based on the need to increase intersection capacity and decrease delay for the left turning traffic at the selected locations. J:\Engincer\AGENDA\TF278 info.doc I -/ -. ..---.. ----_...--- H._H' COUNCIL AGENDA STATEMENT "7 Item J Meeting Date 8/07/01 ITEM TITLE: Resolution Accepting bids, waiving inconsequential bid deviation, waiving bid irregularity and awarding contract for "Traffic Signal Modifications: Protected-Permissive Left Turn Phasing at 12 Intersections" (TF278n82) to HM3 CO""'7' '" ili, =0=' of$270,003.40 SUBMITTED BY: Director of Public Works øJI, REVIEWED BY: City Manager ~t'-f)(I/ (4/Sths Vote: Yes No...xJ " - On July 3, 2001, the Director of Public works received sealed bids ITom five (5) electrical contractors for the project "Traffic Signal Modifications: Protected-Permissive Left Turn Phasing at 12 Intersections" (TF278/282). This is a state grant funded project under the Congestion Mitigation and Air Quality (CMAQ) program. HMS Construction, Inc. submitted the low bid of$270,003.40 for this project. RECOMMENDATION: That Council accept bids, waive inconsequential bid deviation, waive bid irregularity and award the contract for the project "Traffic Signal Modifications: Protected-Permissive Left Tum Phasing at 12 Intersections" (TF278/282) to HMS Construction, Inc. in the amount of $270,003.40. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: This project combines two CIP projects, "ProtectivelPermissive Signals at Five Locations (TF278) and "ProtectivelPermissive Sigual Modifications - 7 Locations (TF282) into one project titled "Traffic Signal Modifications: Protected-Permissive Left Turn Phasing at 12 Intersections" (TF278/282). Both projects are funded by state grants under the Congestion Mitigation and Air Quality (CMAQ) program. Since both projects involve similar work and require the same type of contract administration involving grant funded projects, staff, after consulting with Caltrans, combined the two projects and bid them under one contract to minimize the workload involved in project administration and to increase the possibility of receiving good unit prices by increasing the quantities of work included in the contract. 3-~ Page 2, Item- Meeting Date 08/07/01 The work involved in the project will upgrade existing intersections and install protective/permissive left turn phasing at the following locations: I) Third Ave.! E St. 5) Third Ave.! Moss St. 9) Broadway/G St. 2) Third Ave.! F St. 6) Fourth Ave.! ESt. 10) Broadway/L St. 3) Third Ave.! H St. 7) Broadway/E St. II) East H St./Paseo Ranchero 4) Third Ave.! L St. 8) Broadway/F St. Intersection number 12 (Broadway/D St.) was omitted from the project since installing protected/permissive left turn phasing at that location would require the traffic signal to be completely rebuilt. Staff determined that the cost and amount of work involved in a total signal reconstruction were beyond the scope of the two projects funded under the CMAQ program. Bidding Process Engineering staff prepared plans and specifications and advertised the project. The following five bids were received on July 3, 2001: Contractor Bid Amount HMS Construction, Inc. $270,003.00 Select Electric, Inc. $305,425.00 Lekos Electric, Inc. $319,850.00 T&M Electric, Inc. $323,327.00 DBX, Inc. $343,770.00 The low bid, submitted by HMS Construction, Inc., is above the engineer's estimate of$267,165.00 by $2,838.00 or 1.06%. The engineer's estimate is based on average unit prices received recently on similar types of projects. Inconsequential Bid Deviation Subsequent to a review of the bid proposals for the project, staff discovered a deviation in Item 19 of the bid proposal ITom the apparent low bidder HMS Construction, Inc. For this item, the bidder incorrectly inserted a forty-cent ($0.40) error in the total cost for the item. This increase to the contractor's base bid does not affect their status as the low bidder for the project. Bid Irregularity As part of the bidding process tor CMAQ projects, Caltrans requires local agencies to check the status of the State of California wage rates within 10 days ofa bid opening. Ifit is found that the wage rates have been updated since the project was advertised then an addendum must be prepared for the project. Such an addendum was prepared and distributed for this project. This addendum --------~._-----...._-----~ -- ------ ---- . Page 3, Item- Meeting Date 08/07/01 was omitted ITom the apparent low bidder's bid proposal. HMS Construction, Inc. informed the City that the addendum had been inadvertently left out of their bid package and it was their intension to submit the addendum immediately. The signed addendum was submitted to the City immediately thereafter. The City Attorney's office, after consulting with staff, determined that the omission of the addendum ITom the bid package did not affect the bid prices submitted by HMS Construction, Inc. Staff, therefore, recommends that the inconsequential bid deviation previously discussed and the bid ilTegularity involving omission of the addendum ITom the low bidder's proposal be waived and the contact be awarded to HMS Construction, Inc. in the amount of $270,003.40. Disclosure Statement Attached is a copy of the contractor's Disclosure Statement. Environmental Status The work involved in this project is exempt under Section 15301, Class Ie of the California Environmental Quality Act (Minor Alterations of Existing' Public Improvements or Public Structures). Prevailing Wage Statement This project is funded through Stale CMAQ and City Traffic Signal funds. Therefore, the State of California General Wage Rate Determination of June 1,2001 has been incorporated into the bid documents for this project. Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount (HMS Construction, Inc.) $270,003.40 B. Contingencies (10%) $26,996.60 C. Staff Costs (Design, Inspection, Contract Administration) $131,829.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $428,829.00 FUNDS AVAILABLE FOR CONSTRUCTION A. CMAQ Funds $313,816.00 B. Traffic Sigual Funds $115,013.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $428,829.00 .,j-Lj Page 4, Item- Meeting Date 08/07/01 This is a State Grant funded project; therefore, the City funds all project costs initially. Requests for reimbursement are submitted to the State during the course of the project as allowed by State requirements. After completion of construction, only routine City maintenance will be required. The City, as a result of this project, will incur no significant additional maintenance and energy costs. Attaclunent: Contractor's Disclosure Statement J:IEngineerIAGENDAITF278AI13.doc 7/16/014:05:01 PM File: 0735-10-TF278 0735-10-TF282 . -j - - . . -~.._~--- - .-." ...-."-------' I I" THE CITY OF CHULA VISTA DISCLOSURE STATEMENT You are required to file a Statement of Disclosure of certain ownership or financial interests, payments, or campaign contributions, on all matters, which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodies. The following infonnation must be disclosed. : List the names of all persons having a financial interest in the .property that is the subject of the I 1. application or the contract, e.g., owner, applicant, contractor,subcontractor, and material supplier. I /hn <; ('(I,ù..!; 7¡? l/c7r d.v I/\JC.. é"ofi.}/tCA-C-rd¡L I i 2. Ifany person' identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $1000 investment in the business (corporation/partnership) entity. I /J1ICJ1t9G.L- H/G-# t 3. If any person' identified pursuant to (1) above is a non-profit organization or trust, list the names ¡ of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. r I 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. /rllc.ffl'l-EL. ///6 H I I I I I 20 H\HOME\E~GINEERIAD"IN\'ONTRAc-r<fl""', d~ I 3"c' .--'.""'-" 5. Has any person' associated with this contract had any financial dealings with an official** of the City ofChula Vista as it relates to this contract within the past 12 months? Yes_No-=:- If Yes, briefly describe the nature of the financial interest the official" may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? Yes_No--.£::::::1fYes, which Council member? 7. Have you or any member of your governing board (i.e. Corporate Board of DirectorsÆxecutives, non-profit Board of Directors made contributions totaling more than $1,000 over the past four (4) years to a current member of the Chula Vista City Council? Yes_No L.----(f Yes, which Council member? 8. Have you provided more than $300 (or an item of equivalent value) to an official" of the City ofChula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan. etc.) Yes - No~lfYes. which 0 ¡cia!" and what was the nature of item provided? Date: ~tvé)'1. 0/ /J11(".Hr7F;.L /I/6#' ?¡(,¿5;, Print or type name of Contractor/Applicant . Person is defined as: any individual, finn, co-partnership, joint venture, association, social club. fraternal organization, corporation, estate. trust, receiver, syndicate. any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as )l UOlt. .. Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 21 H \HOME\ENGINEER,^DM"",ONTRACTof'..7&2"cdo, 3- _... ....-----...---------- RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS, WAIVING INCONSEQUENTIAL BID DEVIATION, WAIVING BID IRREGULARITY AND AWARDING CONTRACT FOR "TRAFFIC SIGNAL MODIFICATIONS: PROTECTED- PERMISSIVE LEFT TURN PHASING AT 12 INTERSECTIONS" (TF278/282) TO HMS CONSTRUCTION, INC. IN THE AMOUNT OF $270,003.40. WHEREAS, on July 3, 200 I, the Director of Public works received the following sealed bids from five (5) electrical contractors for the project "Traffic Signal Modifications: Protected- Pennissive Left Turn Phasing at 12 Intersections" (TF278/282): Contractor Bid Amount HMS Construction, Inc. $270,003.00 Select Electric, Inc. $305,425.00 Lekos Electric, Inc. $319,850.00 T &M Electric, Inc. $323,327.00 DB X, Inc. $343,770.00 WHEREAS, the low bid, submitted by HMS Construction, Inc., is above the engineer's estimate of $267,165.00 by $2,838.00 or 1.06°/" which estimate is based on average unit prices received recently on similar types of projects: and WHEREAS, subsequent to a review of the bid proposals for the project, staff discovered a deviation in Item 19 of the bid proposal from the apparent low bidder HMS Construction, Inc where the bidder incorrectly inserted a forty-cent ($0.40) error in the total cost for the item which does not increase the contractor's base bid does not affect their status as the low bidder for the project; and WHEREAS, as part of the bidding process for CMAQ projects, Caltrans requires local agencies to check the status of the State of California wage rates within 10 days ofa bid opening. and if it is found that the wage rates have been updated since the project was advertised then an addendum must be prepared for the project; such an addendum was prepared and distributed for this project; and WHEREAS, this addendum was omitted from the apparent low bidder's bid proposal who informed the City that the addendum had been inadvertently left out of their bid package and the signed addendum was submitted to the City immediately thereafter; and WHEREAS, the Ci1y Attorney's office, after consulting with staff, determined that the omission of the addendum fi"om the bid package did not affect the bid prices submitted by HMS Construction, Inc. and staff, therefore, recommends that the inconsequential bid deviation previously discussed and the bid irregularity involving omission of the addendum ITom the low bidder's proposal be waived and 1he contract be awarded to HMS Construction, Inc. in the amount of$270,003.40. -... ..-- .-...----'-- NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept bids, waive inconsequential bid deviation, waive bid irregularity and award the contract for "Traffic Sigual Modifications: Protected-Permissive Left Turn Phasing at 12 Intersections" to HMS Construction, Inc. in the amount of$270,003.40. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said contract on behalf of the City ofChula Vista. Presented by Approved as to form by ~ td,~øL John P. Lippitt John. aheny Director of Public Works City Attorney J\annmcy\,cw\Tmmc Signal Mod,fication' 2 .;:;;-9 _. . -.---- .--... COUNCIL AGENDA STATEMENT Item: f Meeting Date 8/7/01 ITEM TITLE: Resolution Approving Change Order No.2 for the "Greg Rogers Park Improvements, in the City ofChula Vista, CA" (PR-169) Project in the amount of $25,384.00 and Authorizing the Director of 'oblie WmiŒ '" ,,~o" ",id ,?e Ood~ eo bdm\[ of \he Ci<y SUBMITTED BY: Director of Public Work~ REVIEWED BY: City Manager ¡f (4/5ths Vote: - No _X.....J 0('1 On December 5, 2000, the City Council approved Resolution No. 2000-448 awarding a contract in the amount of $492,212.00 to Famania Construction, Inc., for the Greg Rogers Park Improvements (CIP Project No. PR-169). On April 10, 2001 the Director of Public Works approved Change Order No. I in accordance with City Council Policy No. 574-01. According to that policy Change Order No.2 exceeds the cumulative contract change order aggregate amount allowable to be approved by the Director of Public Works. Change Order No.2 in the amount of $25,384.00 is for extended general conditions and various items of work necessary to complete the project in accordance with City standards. RECOMMENDATION: That Council approve the resolution approving Change Order No.2 for CIP Project PR-169, "Greg Rogers Park Improvements, in the City ofChula Vista, CA" in the amount of $25,384.00, and authorize the Director of Public Works to execute said Change Order on behalf of the City. BOARDS/COMMISSION: Not applicable. DISCUSSION: On December 5, 2000, the City Council awarded a contract in the amount of $492,212.00 to Famania Construction. The contract included general conditions, such as fencing, portable toilets and temporary storage. However, due to delays, an extension to the general conditions was necessary for construction to conlinue. During construction, City staff and contractor agreed that various items of work were required to assure the proper completion of work per City standards as well as meet ADA requirements. The items included in Change Order No.2 consist of adding ramps and railings to the south west field, installing concrete handicap wheelchair pads adjacent to the bleachers and the placement of crushed aggregate base in lieu of gravel at the parking lot, a drain for the drinking fountain, relocation and installation of irrigation piping, wiring al1d valves, the correct connection to a potable water source, the relocation of the sewer lateral, the installation of an ADA ramp with rails and concrete wheel chair pads, installation of a telephone feed ITom the street, and the installation of base and trim in the concession room. It also includes two credit items including unnecessary bleacher footings and erosion control provisions specified in the contract, but not required. Page 2, Item- Meeting Date 8/7/01 FISCAL IMPACT: Contract Change Order No. I was in the amount of $31,707.41, which when added to the original contract value of$492,212.00 brings the current value of the contract to $523,919.41. Proposed Change Order No.2 is $25,384.00 bringing the total contract to $549,303.41. There are sufficient funds in the contingency to cover this amount. Therefore, no additional appropriation of project funds would be needed. Attachments: Exhibit A: Change Order No. I Exhibit B: Change Order No.2 File: 0735-10-PR-169 J:\EngineerIAGENDAIA 113PR169.doc ~-----_.- ~'l PRINTED IN TRIPLICATE FORM EXHIBIT A ~~ r~t'~~ ATIACHMENT ~ CIlY OF CHUIA VISTA DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION CHANGE ORDER NO.1 April 10,2001 0735-10-PR169 CONTRACT: GREG ROGERS PARK IMPROVEMENTS IN THE CITY OF CHULA VISTA,CA (PR-169) CONTRACTOR: FAMANIA CONSTRUCTION, INC, The following changes shall be made to the above referenced contract between the CITY OF CHULA VISTA and FAMANIA CONSTRUCTION, INC. (Contractor): 1. Install 3 each 14-gauge stainless steel countertops at 3 rollup door opening's sill in lieu of plastic laminated. Lump Sum $3,469.33 2. Restake building pad and portion of site per revised elevations by the civil engineer. Lump Sum $1,615.99 3. Install additional concrete walks; add concrete steps and rails at building per revised drawings C1 and C2 forwarded by civil engineer. Lump Sum $2,834.30 4. Install precast concrete men's and women's handicap signs in masonry building per request. Lump Sum $350.97 5. Revised earthwork and grading at building per revised drawings C1 and C2 per civil engineer's request. Includes cost to raise and regrade building pad including additional move.in. Additional cut of 135 cu. yds. is balanced by additional fill of 148 cu. yds. Lump Sum $2,494.69 1 276 FOURTH AVENUE 1 CHULA VISTA, CALIFORNIA 91910-26311 (619) 691-5021 Lf--3 -" -...-.-------....-. 6. Install 3 each metal security screen doors at 3 score shacks and 8 each metal security screen windows at 4 score shacks that were not part of the plans per City of Chula Vista request. Lump Sum $4,058.91 7. Credit back meter main panel and conduit run to r~:trooms. Install new 2" conduit with pull string from restroom to phone service at street. Install power from restrooms to top score shack. Install power with 50 amp. Sub panel at lower score shack and feed other two score shacks from that point. Lump Sum $00.00 8. Hot dip galvanize 4 each metal security screen doors and 8 each metal security screen windows that were not called out for on plans per request. Lump Sum $1,262.49 9. Install extra thicken edge stem walls at concrete walks along backstops and between ramp, add 4' concrete curb at ramp edges, install handrails at ramp, and add to masonry retaining wall per revised drawings dated 2/6/01 and 2/9/01 by Rick Engineering. Lump Sum $7,009.08 1 0.lnstall1 0 If of 42' high pvc chain link fence at additional retaining wall per revised drawings dated 2/6/01 and 2/9/01 by Rick Engineering. Lump Sum $334.56 11. Install one (1) coarse of block at rollup door openings to raise stainless steel countertops heights to approximately 40". Includes dowel into existing, epoxy rebar and grout block solid. Lump Sum $311.84 12. Delete black PVC coated chain link fencing at all locations and replace with galvanized chain link fencing, also add approx. 50 If of 42" galvanized chain link fencing between retaining wall and new fence. Lump Sum $202.00 13. Provide one (1) standard and one (1) handicap temporary restrooms with weekly service for one month starting 3/28/01. Lump Sum $176.75 2 CITY °IíHu~tYlsTA --- - .___H" '.--""'."---'----. 14. Install an additional 30 If of galvanized handrails at handicap ramp per the drawing by Rick Engineering which was not originally correct in length and needed to lengthen the ramp to meet ADA requirements. Charged for 60 If in cost proposal #10. Lump Sum $1,325.62 15. Revised ~arthwork and grading per three revised dr~VJings dated 2/6/01 and 2/9/01 by Rick Engineering for Southwest and Northwest fields. Lump Sum $5,612.96 16. Revised construction staking for earthwork and grading per three drawings dated 2/6/01 and 2/9/01 by Rick Engineering for Southwest and Northwest fields. Lump Sum $647.92 Number of Additional working days: Fifty (50) working days. The upon prices include all costs for furnishing all tools, labor, materials, equipment, incidental costs and fees for performing the work in this contract change and no additional compensation will be due. ORIGINAL CONTRACT PRICE: $410,212.00 PREVIOUS CHANGE ORDERS: 0.00 THIS CHANGE ORDER: $31,707.41 REVISED TOTAL CONTRACT PRICE: $441,919.41 It is agreed by the undersigned that this work shall be performed and materials furnished in accordance with the original contract, Green Book specifications and applicable standard drawings. ~ CL ORD L. SWANSON Deputy Director of Public Worksl City Engineer ~ ' Nt. ¡J~ REVIEWED BY SAMIR M. NUHAIL Y Senior Civil Engineer Attachment: Greg Rogers Park Changes Spreadsheet 3 CITY OF CHULA VISTA 4 ~~~ ATIACHMENT 2- -.- "- - ~~ --== CllY OF CHUlA VISfA DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION CHANGE ORDER NO.2 July 25, 2001 0735-l0-PRI69 CONTRACT: GREG ROGERS PARK IMPROVEMENTS IN THE CITY OF CHULA VISTA, CA PR-169 CONTRACTOR: FAMANIA CONSTRUCTION, INc. The following changes shall be made to the above referenced contract betWeen the CITY OF CHULA VISTA and FAMANIA CONSTRUCTION, 1Nc. (Contractor): 1. (CP 1) Install a 6' temporary chain link fence at perimeter of job site approximately 1200 If for a three (3) month period. Lump Sum $1,969.25 2. (CP 16) Extend temporary fence rental through April 15,2001. Lump Sum $ 346.07 3. (CP 17) Extend temporary storage shed rental through April II, 2001. Lump Sum $ 187.01 4. (CP 18) Extend temporary storage shed rental through May 11, 200 I. Lump Sum $ 187.01 5. (CP 20) Extend temporary toile1 rental through May 19,2001. Lump Sum $ 136.35 6. (CP 21) Provide one (1) standard and one (1) handicap temporary restrooms with weekly service for an extended month until May 28, 2001. Lump Sum $ 176.75 7. (CP 22) Extend temporary fence rental through May 14, 2001. Lump Sum $ 346.07 8. (CP 24) Install two steel connectors at two rafters to ridge connections per engineer's drawings and per request. Lump Sum $ 174.22 9. (CP 26) Credit back balance of erosion control, installation of gravel bags per request. Lump Sum ($2,824.00) I 276 FOURTH AVENUE / CHULA VIS}A¡ CA}lFORNIA 91910-2631 / (619) 691 -5021 -. ---- ------- --- .. 10. (CP 27) Replace missing and broken plants, clean slope on east side and install one (I) roll of jute netting. Lump Sum $ 9]4.27 11. (CP 28) Instal140 If of 4" rubber cove base, also instal148 If of wood molding and paint and install support brackets at sink in concession building per request. Lump Sum $ 430.51 ]2. (CP 29) Install 20' X 2' X 10" drain for drinking fountain with perforated pipe and backfill with gravel per request. Lump Sum $ 398.95 13. (CP 30) Install 6 pair direct burial phone wire in existing conduit per your request. Lump Sum $ 347.19 14. (CP 32) Install 7 each 5' X 5' X 6" concrete handicap wheelchair pads adjacent to bleachers. One to have 6" curb at perimeter. All to have 6" blue HC paint at perimeter also includes relocating one sprinkler line. Lump Sum $2,535.09 15. (CP 33) Repair broken light pole lens cover. Lump Sum $ 220.94 16. (CP 35) Provide one (1) standard and one (1) handicap temporary restrooms with weekly service for an extended month until June 15,2001. Lump Sum $ 176.75 ] 7. (CP 36) Extend temporary construction toilet rental through June 15,200]. Lump Sum $ 68.17 18. (CP 37) Dry pack thirteen (13) each light poles base plates as requested. Lump Sum $ 477.22 19. (CP 38) Credit back bleacher concrete footings per request. Lump Sum ($ 400.00) 20. (FCO 39) Correct parking lot gravel and add gates Lump Sum$14,585.56 21. (FCO 3) Repair existing irrigation line and control wires. Lump Sum $2,0]2.00 .._...~- --. ....-- . -_.--- ~,..,,~c~"'" ""°.., - .-. 22. (FCO 4) Install 2" condui1 at restroom for underground wiring as requested by Isodoro Hernandez with the City of Chula Vista. Lump Sum $ 94.94 23. (FCO 5) Reconnect mainline at two (2) each different location ofremote control valve, one Q.V.c. and install one 2-1/2" ball valve at two lower ball fields. Lump Sum $ 722.73 24. (FCO 6) Reconnect 2" mainline at existing remote control valves at two upper ball fields. Lump Sum $ 161.12 25. (FCO 7) Reroute water supply line to restroom from between water meter and backflow preventers per RFI #17, ITom May I, 2001 to May 8, 2001. Lump Sum $1,604.28 26. (FCO 10) Dig up existing sewer lines to repair existing damages and remove an abandon line, backfill and compact. Lump Sum $ 335.55 Number of additional working days: Sixty-nine (69) working days. The above prices include all costs for furnishing all tools, labor, materials, equipment, incidental costs and fees for performing the work in this contract change. No additional time or compensation will be due. Original Contract Price: $ 410,212.00 Previous Change Orders: $ 31,707.41 This Change Order: $ 25,384.00 Revised Contract Price: $ 467,303.41 It is agreed by the undersigned that this work shall be performed and materials furnished in accordance with the original contract, Green Book specifications and applicable standard drawings. APPROVED BY ACCEPTED BY ORDERED BY JOHN P. LIPPITT OSCAR F AMAN1A CLIFFORD L. SWANSON Director of Public Works President Deputy Director of Public Works! Famania Construction City Engineer REVIEWED BY REVIEWED BY SAMIR M. NUHA1L Y DAN CURLEY Senior Civil Engineer Building Project Supervisor Attachment(s): Spreadsheet 3 CITY OF CHULA VISTA -' -. ",--'---'---"'-----""'-' RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDER NO. 2 FOR THE "GREG ROGERS PARK IMPROVEMENTS, IN THE CITY OF CHULA VISTA, CA." (PR-169) PROJECT IN THE AMOUNT OF $25,384.00 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE SAID CHANGE ORDER ON BEHALF OF THE CITY WHEREAS, on December 5, 2000, the City Council approved Resolution No. 2000-448 awarding a contract in the amount of $492,212.00 to Famania Construction, Inc. for the Greg Rogers Park Improvements; and WHEREAS, on April 10, 2001, the Director of Public Works approved Change Order No. 1 in accordance with City Council Policy No. 574-01; and WHEREAS, according to that policy, Change Order No. 2 exceeds the cumulative contract change order aggregate amount allowable to be approved by the Director of Public Works; and WHEREAS, Change Order No. 2 in the amount of $25,384.00 is for extended general conditions and various items of work necessary to complete the project in accordance with City standards. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve Change Order No. 2 for the "Greg Rogers Park Improvements, in the City of Chula vista, Ca. (PR-169)" Project in the amount of $25,384.00. BE IT FURTHER RESOLVED that the Director of Public Works of the City of Chula Vista is hereby authorized and directed to execute said change order on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt Director of Public Works [J.',"omey',e,,' Gceg Roge" P,'k CO2 (Joly26, 2001 ('20PM)) -....-----'--"- ...-.-------- -. COUNCIL AGENDA STATEMENT Item: Meeting Date: 8/7/01 ITEM TITLE: Resolution Ratifying City staffs action on approving change orders associated with the construction ofthe Public Works Operations Facility and Corporation Yard, listed on Attachment A, approving all the change orders listed on Attachment B, and authorizing staff to process up to an additional $250,090 in change orders SUBMrm:D BY, Dire"" of Po"li, wo"d REVIEWED BY: City Manag~2J)¿_VQ; <--'" (4/5ths Vote: Yes - No _X.J Last September the City Council amended licy #574~01 authorizing the City Manager to approve change orders pertaining to the Corporation Yard project with a single change order value not exceeding $50,000 and a cumulative value of up to $250,000, The policy permits the City Manager to exceed the limits if delay of the approval would cause a delay in the "Critical Path" schedule of the project. Approval of tonight's resolution will ratify staffs recent actions in approving change orders valued at $246,810 listed on Attachment A. Tonight's action will also approve change orders valued at $199,751 listed on Attachment B and authorize staff to process up to an additional $250,000 in change orders in accordance with the policy. RECOMMENDATION: That Council ratify City staffs action on approving change orders valued at $246,810 associated with the construction of the Public Works Operations Facility and Corporation Yard listed on Attachment A, approving change orders valued at $199,751 listed on Attachment B, and authorize staff to process up to an additional $250,000 in change orders. BOARDS/COMMISSIONS APPROVAL: Not Applicable DISCUSSION: Construction Progress Report: The following is a brief status report on the progress of the Corporation Yard project: 0 Household Hazardous Waste Disposal Facility (HHWD): Completed and opened to the public, 0 Public Fueling Facility: The curb, gutter and fueling island have been completed in this area. Special CNG piping to the fueling island is scheduled for installation pending change in service requirements, Electrical service to the Point of Sale Controller has been installed. 0 City "lleling Facility: All underground fuel tanks, associated electrical and plumbing have been installed and inspected by the appropriate State Agencies. Work is underway towards completion of Fuel Station masonry structure, All piping and electrical necessary to support the both the Fuel Station and the CNG facility is in the final stages of completion. .-'" ,.::;J -.. - --.....--.--- .......-----.. Page 2, Item: - Meeting Date: 8/07/01 . Bus Wash Facility: The bus wash facility structure is complete. All wash equipment is being installed and electrical and plumbing connections are ongoing. The concrete paving surrounding the Facility is pending installation. . Administration Building: All final finishes are in the process of being set. Final painting, installation of casework, wall coverings, tile, suspended ceilings, etc. are in progress. Confirmation of the sizes, location and configuration of the modular furniture has been completed and installation scheduled to coincide with the completion of voice data, communications and electrical wiring. The Administration building is on schedule to be completed in early September. . Shops Buildings A and B: Shops Building A (Existing) is ready to receive finishes. Rollup doors are scheduled for installation. All electrical, plumbing and fire sprinkler systems are nearing completion. Shops Building B trusses are installed and roof decking is nearing completion. . Maintenance Building: All exterior wall masonry work is complete. Truss installation continues as does roof decking. The structural steel for the mezzanine is currently being erected. Both inspection pits are completed. All in ground lifts are installed. Plumbing and electrical underground is 90% complete. All areas are being readied to receive slab on grade. . Site: The area immediately around the Administration building has been fine graded, curb and gutter is complete and concrete flatwork is being installed. All underground stOlID drainage is completed. . Storm Water Pollution Prevention Program: The Storm Water Pollution Prevention Plan (SWPPP) is fully implemen1ed, continually monitored and corrections made as necessary. . Service Utilities: All fire service underground water lines, backflow preventers, fire connectors and associated position indicator valves have been installed. The permanent power and San Diego Gas and Electric switchgear and associated equipment have been released for fabrication, delivery and installation. The house and compressed natural gas service meters have been released for fabrication, delivery and installation. Approval of Change Orders: On July 24, 2001, City staff forwarded an informational memorandum (Attachment C), to the City Council providing a detailed overview of the change orders process for the Corporation Yard project. As indicated in said memorandum, the construction of the Corporation Yard is a very complex project involving many building trades and contracts for that work. The project also involves the renovation and expansion of existing buildings and facilities which, by its very ...........-.-...-..-.-..-.--- Page 3, Item: - Meeting Date: 8/07/01 nature, is much more prone to uncovering unanticipated items needing to be handled through change orders. City and Highland staffs have aggressively managed the change order process for this complex project. The very nature of a multi-phase, multi-building project that includes new construction as well as substantial renovation, demands conscientious and continuous oversight of the change order management process. Change order avoidance and reduction for this project commenced with a thorough review of the plans and specifications. Following this initial strategic effort to mitigate the potential for change orders is the actual change order management process once a con1ractor presents a request for a change order. Regardless of the reason for the specialty contractor's submission of a request for a change order, City and Highland staffs closely scrutinize each and every line item on the request. This step is taken to determine if the items requested are covered within plans, specifications, contract documents and the respective specialty contract. If so, the request for a change order is rejected outright. Should the reques1 be found to have merit, itemized costs are compared to bid line item unit costs, industry standard "means and methods" cost analysis, and comparative bid proposals ftom like contractors. Particular attention is focused on capturing any credits that may be covered by the original contract scope. City and Highland staff automatically default to using the lowest cost calculation as a basis for further negotiation. Staff and Highland then enter into negotiations with the specialty contractor, more often than not resulting in a lower than requested change order amount. In those few instances where negotiations have failed to result in a price that staff and Highland feel is reasonable, then Highland negotiates the work with other project specialty contractors. This proven system has been successful in achieving the lowest possible cost associated with change orders. As previously indicated many of the change orders were initiated by the City in order to improve the facility and also to save on future maintenance and operations costs. While City staff and Highland Partnership rigorously review each and every change order, due to the number of contracts which the City has entered into on this project, many are required in order to complete the project. City staff has approved change orders up to the limits contained within the Council's authorization to do so and now presents this latest list of staff approved change orders for Council's ratification. Those change orders, totaling $246,810, are listed on Attaclunent A. In addition, several more change orders, exceeding the value of staff's authorization to ap'prove, are necessary to properly complete 1he project and are presented to Council for approval. These change orders, totaling $199,751, are listed on Attaclunent B. Following is a general description of the major Change Orders shown on Attachments A and B: Saturn Electric, Inc. ($41,252) Upsize and re-route a 6" gas line at the CNG facility to provide adequate supply pressure and volume of natural gas necessary to meet the CNG compressor requirements. SDG&E indicated they intend to upgrade their backbone system and the only change to the City's system when that upgrade is completed will be in the area immediately adjacent to the point of connection at the street. Therefore the current installation would be cost effective. I~ .? _.. ....'---'-'-- -- ..0...',_" Page 4, Item: - Meeting Date: 8/07/01 Lemon Grove Sheet Metal Works, Inc. ($29,116) Provide and install steel strainer filters as required on new and existing heating and cooling coils. Helix Electric, Inc. ($20,466) Per electrical plan revisions, this change order reflects the upgraded switch gear necessary to support the revisions. California Sheet Metal Works, Inc. ($39,000) Replace the existing barrel vault skylight system over the administration building entrance. The existing skylight exhibited sigus of long-term leakage. A detailed examination of structural elements of the barrel vault framing, plastic laminate glazing and weather tight system indicated that the existing system could not be repaired. California Sheet Metal Works, Inc. ($24,500) Per evaluation of the condition of the wash building roof, the architect and the sheet metal specialty contractor designed a new rainwater collection system for the roof. The additional work includes gutters and downspouts, wood nailers, ITaming for soffit and fascia, soffit and returns, design and drawings. Brady Company ($31,282) Security hardware power supply changes as directed by the architect. Changes were necessary to coordinate door hardware with the security system. AGRA ($22,985) The previous information memorandum referred to these change orders as being with AMEC, the City's consulting soils engineer. When the original contract was signed, they were known as AGRA, but have now changed their name to AMEC. This is for a supplemental increase of contract base amounts required for soils inspection services to carry the contract through the end of April 2001. The estimated time-and-materials budget was reached due to revised soil investigation, rain delays and delay in backfilling the maintenance building retaining wall. AGRA ($26,275) This is supplemental increase number 2 in the contract base amounts required for soils inspection services to carry the contract through the middle of August 2001. The estimated time-and-materials budget has been reached due to continued in-depth soil investigation and construction inspection activities to assure that proper soils related construction work has been completed. Mission Valley Cabinets ($20,213) This change order was necessary to cover the costs of revisions to the shops building casework. This is a City initiated change to make the shops area a more efficient work area for the City's mechanics. Because staff is aware of the possibility of further change orders, which was also discussed in the July 24 informational memorandum, staff is also requesting authorization to process up to an additional $250,000 in change orders. The same thorough review and documentation of the need .S-~ if -. _.....----- Page 5, Item: - Meeting Date: 8/07/01 for these additional change orders will continue to be followed. Staff may also return to Council for ratification and/or requesting approval of those potential future change orders. FISCAL IMPACT: Per Attachment A, the total value of the change orders to be ratified by the City Council is $246,810. Per Attachment B, the total value of the change orders to be approved by the City Council is $199,751. As of July 10,2001, the cumulative value of all change orders approved by the City Council was $1,166,576. Following tonight's action, the cumulative total value of all change orders approved to date will be $1,613,137. With tonight's authorization of $250,000, the new contingencies budget will be $1,863,137. The original Corporation Yard financing Plan presented to the City Council indicated a combined total for construction costs, contingencies and special inspections of$22,762,266. The current estimate for the total projected construction cost (including contingencies and special inspections) is approximately $20.3 million. The proposed change order amount does not require an appropriation and can be absorbed within the approved project budget. Attachments: A Summary of change orders proposed for ratification B Summary of change orders proposed for approval C Copy of informational memorandum dated July 24, 2001 File: 0735-10-GGl31 nEngineerlAGENDAICORPY ARDAUGCOA 1 IJa_SMN.doc 8/2/019:1105 AM f;-5 -., -......----.-----..--.--. I Change Orders For Ratification by City Council on August 7, 2001 I 1}1 Highland Attachment A Chula Vista Corp Yard Project # 092 Highland Partnership, Inc 1800 Maxwell Rd Tel: 619-397-0367 Chula Vista, CA 91910 Fax: 619-397-0389 .".111...-......... "'n' .~,.......... -.......,. .... ~"'."""'_'n" 'm""',,,,' 1I~!~~~_I\III!~mmi¡!(W¡:, 002 09201050.02 5114/01 Extra Survey ACCULINE 5/29/01 6/2/01 0 78000 002 09208110.01 5/14101 Rewock Hollow Metal Frames @Admin BRADY CO 5/29/01 6/7101 0 71800 004 09207600.01 5/31/01 Sheet Metal Mods @ Wash Bldg CSM 6/13/01 6/21/01 0 2",50000 007 09207600.01 6/6/01 Custom Color on Manufactured Wall CSM 6/13/01 6/21/01 0 8,30000 Panels 007 9202685-01 5/14/01 6" HP Gas Line For CNG SATURN 6/7101 5/18101 0 41,252.00 008 9202685-01 5/17/01 Fuel Island TŒk Conduit SATURN 617101 5/t8/01 0 17,11000 009 9202685.01 5/17101 Point of Sate Controller Conduit SArURN 617101 5/t8/01 0 7,41000 010 9203200.01 5/14/01 Added Rebar@ Pit #1 Footings PCS 5/29/01 6/6/01 0 54100 011 9203200-01 5/t4/o1 Structural Reinforcement Overtime @ PCS 5/29/01 6/6/0t 0 203.00 Maint Bldg 012 9203200.01 5/14/01 SOG @ HHWD Facility PCS 5/29/01 6/6/01 0 1,10200 013 9203200-01 5/30/01 Added Rebar Scope PCS 6/13/01 6/20/01 0 1,10500 003 9203300-01 4/3101 Revised Site LIghting Plan Standards SOLPAC 4/18/01 4/30/01 0 .2,50000 009 9204150-01 5/21/01 Parapet@ Existing Shops FABER 617101 6/18/01 0 4,411 00 010 9204150.01 5/21/01 Wash Bldg, Masonry Changes FABER 6/7/01 6/18/01 0 972.00 005 09206100.01 5/30/01 Build AC & Mechanical Boxes on Roof HELIX CDNSr, 6/13/01 6/18/Ot 0 1,B54.oo of Old Shops BLDG, 001 9209255.01 4/3/01 Shops Bldg MS Framing Change WRCHAVEZ 4117/01 5122/01 0 360.00 OOt 9209900.01 5/30/01 Painting et HHWF PECORARO 6/13/0t 6118/01 0 6,365.00 003 9215000-01 5/17/01 Strainars For Heating & Coating Coils LGSMTl 617101 6/13/001 0 29,11600 004 9215000.01 5/17101 Cut & Cap Bypass @ Existing AH.1 LGSMrL 5/29/01 6/4/01 0 485.00 011 9215400.01 5/11/01 Maintenance Bldg Vent Value MHP 5/29101 6/4101 0 .4,65100 Engineering 012 9215400-01 5/14/01 HHWD Facility Pumbing, Storm & MHP 5/29/01 6/4/01 0 1,99000 Waste 013 9215400-01 5/1B/01 Flush Valves MHP 6/7/01 6/14/01 0 520 00 014 9215400-01 5/24101 NG Connections' CREDIT MHP 6/7/01 6/1"/01 0 .2,410.00 OOt 9216000.01 4/16/01 Electrical Plan Clarification Changes HELIX ELEC 4/18/01 5/2101 a .19,970.00 002 9216000.01 "/16/01 Added Admin Bldg Electrical HELIX ELEC 4/18/01 5/23/01 0 4,32000 Recepticals 004 9216000.01 4/24/01 Add Duct Detector@AdminA HELIX ELEC 5/3/01 5/20/01 0 521.00 006 9216000.01 4/27101 Remote Display Panel HELIX ELEC 513/01 5/20/01 0 867.00 007 9216000-01 4/24/01 Copier Circuit @ Admin HELIX ELEC 5/3/01 5/20/01 0 1,000 00 011 9216000-01 6/5/01 Change, In Switch Gear HELIX ELEC 6/11/0t 6/13/01 0 20,46600 012 9216000-01 6/11/01 Added Feeders & Circuit to Chiller HELIX ELEC 6/13/01 6/19101 0 4,94900 004 09205120-01 3/27/01 Revised Opereble Pertlllan@Admin C&S DOC 0 10,938.00 -?? . -. .----------- - 005 09205120.01 615/01 Correction o/Weiding Pracedu....S C&S DOC 6/13101 0 .72000 015 9202660-01 615/01 Replace Exi,ting Fire Service @ Cent",1 SHERWOOD 6/13/01 0 3,571.00 Stores 001 0920000-01 6/12/01 Web Cam Removal/Replace STUDIO 3.G 0 900 003 09201050.02 6/12101 Restake Admin & Maintenance Bldgs ACCULINE 0 780 004 09201050.02 6/19/01 RestakelRe/resh Curb Stakes @ Admin ACCULINE 0 520 005 09207600.01 615/01 Replace Existing Barrel Skylite@Admin CSM 0 39,000 001 09208110.01 2/16/01 Door Security Ha'dwa.... Change' BRADY CO 0 31.282 014 9202660.01 7/24/01 A-4 Catch Basin @ Bus Parking SOLPAC 0 3,100 008 9203200.01 416101 Material Storage Bins. Rebar Deletion pes 4126/01 5/3101 0 .1,469 009 9203200.01 4111101 CREDIT For Double Charge pes 4118101 5/11101 0 .434 014 9203200.01 6/13101 HHWD Facility Reinforcing peS 0 1,237 003 9204150.01 2/16/01 He Modification to Door Openings @ FABER 0 127 Admin 006 9204150.01 4/6/01 HHWD Facility Footing eMU Change FABER 4126/01 5/8/01 0 170 011 9204150.01 6/13101 Replace Temporary Power Poie FABER 0 .300 002 9209900.01 6/15/01 Water Repellanl @ Wash Bldg PECORARO 0 1,092 002 9215000.01 5/1/01 Stub.up Chilled Water Pipes@Chlller LGSMTL 0 1,896 Yard 015 9215400-01 6/13/01 Plumbing Valve Specification Change MHP 0 1,595 016 9215400.01 6/19/01 Ga, Leak'@AdminA&B MHP 0 3,135 017 9215400.01 6/20/01 HHWD Facility Plumbing Connections MHP 0 803 016 9216000.01 6/13101 Replace Temp Power Pole HELIX ELEC 0 300 018 9216000.01 6/19101 Signal Sy,tems . Slurry. CREDIT HELIX ELEC 0 .2,399 ~!I:¡I\I8J .I.--_B¡¡_.IiI.i~lli..fJlJ1~,ml~wl¡~i1ili¡liHi!i~lmm~!limIm¡¡'~'I¡¡¡~#lil!llilli!!II~~'!!ï¡¡~: - ._. .--....---'--- ..--.., , I $~ Change Orders For Approval by City Council on August 7,2001 I Attachment B Chula Vista Corp Yard Project # 092 Highland Partnership, Ine 1800 Maxwell Rd Tel: 619-397-0367 Chula Vista. CA 91910 Fax: 619-397-0389 .".....-..........-"",. .,~,.......... ø"....." m" ."'...,,""_..,,~ "".,..,11111 :ïm '.~~~.!I.l Jlllllllllllltlml~~¡~IIìf~~t~~il~lrn~I~¡~l~~.~!~ii!!!ij~ii 006 09207600.01 6/5/01 T"be Sleel S"Pport@ Co""gated Panel, CSM a 19.300 003 9201050-02 4/27/01 S"pplemenlal A"lhoriza(;on #3 AGRA 5/3/01 5114/01 a 22,985 004 9201050-02 6/12/01 S"ppllmental #2 Geotechnical Services AGRA 0 26,275 016 9202660.01 6/5/01 Sewer Lateral@AdmlnBldg SHERWOOD a 5,600 011 9202660.01 6/20/01 Fire Service @ New Shops SHERWOOD a 8.069 018 9202660.01 6/20/01 Fire Service @ Central Receiving SHERWOOD a 15,373 002 9206402.01 1116/01 Ca'ework PI., Change,. Admin & Maint MVC a 7.450 003 9206402.01 5/21/01 Shops Casework Revi'ion' MVC a 20,213 001 9213202.01 6/15/01 Modlfica(;on 01 Exi'ting F"el Tank, WESTERN a 14,336 002 9214451.01 4111/01 Encl,,",es In LIe" of Wall @ Vert LIft, MCKINLEY 411 BIOI 5/7/01 a 1,253 010 9216000.01 6/1/01 Added Speakers at Administration Bldg, HELIX ELEC a 5,169 014 9216000.01 6/12/01 Added Control LIght Switching @Admin HEUX ELEC a 5,605 015 9216000.01 6/13/01 Signal System Cond"its to Each Bldg HEUX ELEC 0 36,399 011 9216000.01 6/14/01 Egress LIghting HEUX ELEC a 1,481 002 92002110.01 7/24/01 Vari", Sawc"t& Cored,iII CEMENT CUTTING a 10,243 i~-""""'IIIIIIII....".I_lI1imlmllli~lifflli~~~~~J~~r 5-8 .. -- ._--- ._.. .. -----. ATTACHMENT C MEMORANDUM July 24,2001 File: 0735-10-GGI31 TO: The Honorable Mayor ¡¿ City Council VIA: David D. Rowlands, Jr., City Manager i FROM: John P. Lippitt, Director of Pub he work!Jl! SUBJECT: Chula Vista Corporation Yard At its May 29, 2001 meeting, the Council approved an increase in the approved contingencies for the City's Corporation Yard project. Council questioned staff regarding the process used for the approval and monitoring of pending and proposed change orders. The purpose of this memorandum is to provide the City Council with a more complete briefing regarding the status of the Corporation Yard and pending change orders. The City Council has approved the award of multiple contracts for the construction of the Corporation Yard Project under the Construction Manager/Constructor (CMC) delivery approach. Collstruction Manager/Constructor Approach As has been previously approved by the City Council, the City is utilizing the CMC delivery system in order to facilitate construction of the Corporation Yard. Highland Partnership, Inc., the City's Construction Manager/Constructor, along with City staff, has been overseeing the construction work. Under this approach, Highland Partnership was required to conduct a public bidding process and make a recommendation for award of contracts on each of the individual specialty trades work. The City Council then awards the contract to the specialty trade contractor for each of the individual trades much like a general contractor would award separate subcontracts for the specialized trades work. Highland Partnership retains the overall contract nanagement work that would normally be perfornJed by a general contractor under the heretofore normal process for the City of awarding one overall contract. This delivery system ensures that Highland represents the City's interests and gives Highland more control over scheduling "subcontractor" work and other issues that may arise during construction. In addition this arrangement reduces the typical incentives for a general contractor to pad change orders because there is no general contractor "markup" on change orders; the City is dealing directly with the "subcon1ractor." As of the current date, the City has entered into contracts with over 46 contractors representing approximately 53 vaIious specialties in the building trades and a grand total of $17,758,402 in value. Change Orders On September 26, 2000, the City Council amended Council Policy #574-01 authorizing the City Manager to approve change orders pertaining to this job only with a single change order value not exceeding $50,000 and a cumulative value of up to $250,000. In addition, Council Policy on 5-1 -' - ..----- ----. ..-. --....--- Honorable Mayor and City Council -2- July 24, 2001 change orders authorized the City Manager and Director of Public Works to approve change orders exceeding $50,000 or beyond the $250,000 if delay of the approval would cause a delay in the "critical path" schedule of the project. As of May 29, 2001, the cumulative value of al1 change orders approved by Council was $1,046,914 (Attachment A). On May 29, 2001, the City Council authorized staff to process up to an additional $250,000 in change orders bringing the total change order budget to $1,296,914. Then, on July 10,2001, the City Council approved a change order to Professional Services, Inc. for $119,662 bringing the approved change orders total to $1,166,536 and the change order budget to $1,416,536. While the rate of change orders to date is greater than original1y anticipated by staff and the original1y anticipated budget for contingencies of $1,073,186 has been exceeded, staff has very careful1y reviewed the change orders and believes that neither the number of change orders nor the dollar value is excessive. Al this time staff believes the project will be completed within the previously appropriated amounts for the construction budget which has a sufficient balance to cover the higher contingencies. The fol1owing discussion shows that many of the change orders were initiated by the City in order to improve the facility and also to save on future maintenance and operations costs. This is the first project that the City has undertaken through the Construction Manager/Constructor delivery method and the only mechanisms that the City has to add additional work during the construction phase is either the change order process or new càntracts. Under the CMC method the number of change orders is directly prop0l1ional to the number of trade contracts, which as pointed out above, is more than 46. If we had chosen to construct the project through traditional means by award to a general contractor, the general would have consolidated many of the change orders from the subcontractors and the number of change orders would have been lower. The dollar value, however, would probably have been greater because the City would have had 1ess control over the costs and markups of a general contractor who, under the normal contracting procedures, is able to add a markup to subcontractors bids. Re1a1ed to the number of change orders, staff has gained quite a bit more experience in the process of constructing buildings since this project began. As indicated above, staff originally anticipated a lower number of change orders based upon our previous experience with infrastructure type projects. As has clearly been learned, the process of constructing buildings is much more complicated. This is especial1y true in a situation like the Corporation Yard where much of the construction pertains to renovating and expanding existing buildings. As the construction moves into the existing buildings many issues from the previous construction are uncovered which could not necessari1y have been anticipated, but which require either change orders or new contracts to hand1e. WheT! a new item of work not included in a previous contrac1 is needed, staff careful1y reviews whether to advertise and bid for a new contract or to work with an existing subcontractor to obtain a change order. In most of these situations the City already has a subcontractor for that specialty and it is appropriate to obtain a competitively priced change order from that contractor. It would be difficult, if not impossible, to bring on a different contractor to do a closely related part of the ultimate work. In those instances where we need 10 obtain a change order, both Highland Partnership and City staff, using their combined knowledge of building construction, review the work orders for appropriateness, price, cost effectiveness, and 10ng-tem1 benefits. As indicated above, the incentive is for City staff and !S / -----. .." ._._- Honorable Mayor and City Council -3- July 24, 2001 Highland Partnership to keep change orders competitively priced: staff wants to keep the cost as low as possible and Highland's incentive to closely monitor and keep down such costs is their desire to perfonn future City work. Staff believes the approved change orders to date will improve the facility and, in some cases have mitigating circumstances that are explained by these categories: 1. Energy Savings and Utility Items of Additional Scope initiated by City ($476,304): This category covers items to date that have been initiated by the City during the construction phase. These items maximize the energy savings of the facility and support the City's "Green Progran1" as well as enhance the overall facility's utility. These additional items include: . A "Cool Roof' system throughout the facility for long-term energy savings. . Hi-efficiency skylights providing increased natural lighting within the buildings thereby reducing electrical consumption for overhead artificial lighting. As a side note, these skylights were designed and manufactured by a local Chula Vista firm, Hi-Lite Company. . Household Hazardous Waste Disposal Facility (HHWDF) improvements include the addition of a shade canopy with solar electric generating panels (photovoltaic panels). It should also be noted here that the HHWDF was designed and implemented quickly to take advantage of a state grant to improve service to City residents without negatively impacting the overall Corporation Yard budget. In order to meet the deadlines of the grant all work for the HHWDF were given to contractors already on site in the form of change orders. Slightly more 1han 80% of these change order costs were paid by the grant, the remainder came out of the Corporation Yard contingencies. 2. Regulatory Requirements ($234,469): This category covers the costs of compliance with the latest code and other agency requirements that surfaced during the construction phase. It also includes the relocation of fire hydrants and adding new firewater service lines per Fire Department requirements as well as the addition of project site erosion controls in support of the Storm Water Pollution Prevention Program (SWPPP). Some of these change orders were in areas that had been approved with the original plan approval, but when the responsible agency reviewed the on-site work, changes to the plans were ordered. The major change order in 1his category was approved July 10, 2001 for additional inspection costs to insure that structural components of the projec1 were being constructed according to codes and City specifications. 5--/ Honorable Mayor and City Council -4- July 24, 2001 3. Soils Issues ($205,278): This category covers the additional soil export/import and compaction costs to date. The soils engineer, AMEC, conducted a more detailed exploration and analysis of the site during the construction phase. As a result of their findings, AMEC required that more extensive measures be undertaken throughout the site. Also, the grading contractor encountered some difficulties during the grading work related primarily to the stability of the hillside and the presence of poor soils conditions. As a result, approximately 35,000 tons of expansive soil was required to be exported to the neighboring landfill site and more suitable soil material imported ITom other sites. Staff and the landfill representatives have agreed to allow the future ultimate height of the landfill to increase by nine inches over the entire landfil1. This action is allowed within the original CEQA approvals for the landfill and requires no formal action by Counci1. As a result, the landfill will relieve the City of all tipping fees and charges totaling approximately $1.2M. 4. Cost Benefit and Value Engineering (Ne1 Savings of$51,043): During the course of the construction phase the project/construction management teanl (City staff and Highland) look for ways to improve upon the design details outlined in the plans and specifications. Value engineering and cost benefit items to date include changing the employee lockers ITom the specified special plastic to a "quiet metal" locker and maximizing savings of various construction/design issues. Please note that in this category there is a net reduction in contract costs. 5. Design Clarifications ($229,413): The change orders covered under this category were needed as a result of sometimes less than adequate plan coordination between the many consultants responsible for preparing the different sections of these plans which include 327 different plan sheets and combine work of all of the trade specialties. This category covers those design details to date that are clarified and/or revised during the construction phase that also required trade contractor change orders. Examples include SDG&E underground permanent electrical service, electrical revisions to the initial design and trade work clarifications. The project/construction management team has been instrumental in saving money in this category through excellent communications among the trade contractors by successfully implementing many design clarifications without the need for change orders. City staff is carefully scrutinizing these change orders and may discuss some of these issues with the City Attorney's office. 6. Field Conditions, General Requirements, and Administrative Contract Adjustments ($72,115): During the course of construction a number of building and inITastructure field conditions were discovered which were not originally identified on the plans. Such issues are normally encountered during the construction of a project when having to work around 5 -lz.. -. -".--. ...-. .--------.-- ..--- HonorabJe Mayor and City Council -5- July 24,2001 existing conditions. This category covers those field conditions associated with remodeling an existing facility, temporary electrical power pole and site distribution, general requirement scopes of work normally performed by the general contractor such as miscellaneous labor, carpentry, as well as the administrative contract adjustments for the performance and payment bonds for two contracts. These change orders are items that would have cost the City approximately the same amount of money had they been included during the original bidding phase. Staff approved Change Orders since Mav 29. 2001 As has been illustrated above, the construction of the Corporation Yard is a very complex project involving many building trades and contracts for that work. The project also involves the renovation and expansion of existing buildings and facilities which, by its very nature, is much more prone to uncovering unanticipated items which need to be handled through change orders. Based on the ongoing work, staff and Highland partnership have been working closely with each of the "subcontractors" and have identified several more areas for which we have processed and approved change orders since the last City Council action giving staff the additional authority on May 29, 2001. The cumulative value of all these change orders is $249,646 (Attachment B). Staff will be returning to Council on August 7, 2001 seeking ratification of these change orders and authorization to process up to an additional S250,000 worth of change order requests. Pen1iQg Change Orders or possible additional contracts City and Highland staffs have aggressively managed the change order process for this complex project. The very nature of a multi-phase, multi-building project that includes new construction as well as substantia] renovation, demands conscientious and continuous oversight of the change order management process. Change order avoidance and reduction for this project commenced with a thorough review of the plans and specifications. During the bidding process every attemp1 was made to clearly identify the individual trade scopes. Prior to contracting, the apparent low bidder was interviewed to ensure that their proposal included each and every item of scope necessary to deliver a complete project. Finally, contracts were drafted to clearly require completion of all trade scopes as outlined in the plans, specifications and bid documents. Following this initial strategic effort to mitigate the potential for change orders is the Request for Information (RFI) management process. Every RFI has the potential for becoming a change order. Precisely because of this eventuality, the project team has closely tracked the process to ensure minimal costs associated with responses to RFI's. Because this is a complex project, there have been numerous RFI's from the specialty contractors. City and Highland staffs recently completed an analysis of the relationship between RFI's and resultant change orders for the electrical trade scope. The results were surprising and highlight the commendable efforts involved in managing the change order process. Overall only 5% of electrical RFI's resulted in change orders. Regardless of the reason for the specialty contractor's submission of a request for a change order, City and Highland staffs closely scrutinize each and every line item on the request. The first step taken is to determine if the items requested are covered within plans, specifications, contract -' --, -""--_..._-- ....-...-...-.--- Honorable Mayor and City Council -6- July 24, 2001 documents and the respec1ive specially contract. If so, the request for a change order is rejected outright. Should the request be found to have merit, itemized costs are compared to bid line i1em unit costs, industry standard "means and methods" cost analysis, and comparative bid proposals from like contractors. Particular attention is focused on capturing any credits that may be covered by the original contract scope. City and Highland staff automatically default to using the lowest cost calculation as a basis for further negotiation. Staff and Highland then enter into negotiations with the specialty contractor, more often than not, resulting in a lower than requested change order amount. In those few instances where negotiations have failed to result in a price that staff and Highland feel is reasonable, then Highland negotiates the work with other project specialty contrac10rs. This proven system has been successful in achieving the lowest possible cost associated with change orders. A prime example of the success of1his methodology is demonstrated by the change order request for the voice data telephone and computer signal system installation. After submission and receipt of the answer to an RFI concerning a revision in the electrical drawings, the electrical specialty contractor submitted a request for a change order in the amount of approximately $64,000. Detailed analysis by City and Highland staffs ensued and after several rounds of negotiation the final change order was reduced to $34,000. To date, City staff and Highland have outright rejected approximately $100,000 in reques1s for change orders while ensuring that the work outlined in the request was completed at no additional cos1 10 the City. Additionally, this detailed screening, analysis and change order negotiation process has resulted in over $166,000 in cost reduction to date. The combination of rejections and reductions have resulted in net savings to the City of over $266,000, which equates to a 22 percent reduction in original requested change order amounts. Attachment C shows a list of "Pending Change Orders or Possible Contracts." These items may result in change orders to existing contracts or possible additional contracts and are currently projected to total approximately $1,019,000. It needs to be noted that, due to the project's complexity, staff is continually on site evaluating the work and addresses issues as they arise. Some of these issues could resul1 in change orders which are not included within this listing, bUI such change orders would not be recommended wi1hout the same extensive review process. The items on this ¡ist fall into the same general categories identified above. That is: (I) City Additions; (2) Soils Issues; (3) Value Engineering; (4) Design Clarification; and (5) Field Conditions, General Requirements & Administrative Adjustments. The largest projected item is concrete paving. City and Highland staffs, with the input from team consultants, have carefu11y analyzed specific paved areas within the Corporation Yard that will benefit ITom being paved with concrete instead of asphalt paving as shown on the plans. As a direct result of this potential City Addition change order the paving service life of the targeted areas. would dramatica11y increase and the costs associated with maintenance would appreciatively decrease resulting in a favorable cost 10 benefit ratio. If staff does not see a favorable cost to benefit ratio, the necessary change orders, which at this time are estimated to be in the neighborhood of $225,000, would not be approved nor recommended for approval. '5 -.---.-..--..,. Honorable Mayor and City Council - 7- July 24, 2001 The second largest potential change order relates to the soils issue presented to Council April 3, 2001. Due to a more detailed exploration and analysis of the site during the construction phase the City's soils engineering consultant required that more extensive measures related to removal of expansive, clayey soil. In addition, the grading contractor encountered some difficulties during the grading work related primarily to the stability of the hillside and the presence of these same unsuitable soils. As a result, all of this soil had to be removed ITom the site, which City staff was able to negotiate with minimal additional cost. However, now that the retaining walls are completed, a large portion of the soil required for backfill needs to be imported and placed. To mitigate the associated costs and reduce the amount of this potential change order, City and Highland staffs are using as much recycled material ITom the site as possible. As an example, City staff worked with contractors on other city projects such as Olympic Parkway to have the excess soil ITom those projects brought to the Corporation Yard. This minimized the amount we now have to import and, at the same time, helped to hold down costs ITom those other projects by providing a place those contractors could dispose of the excess material at no additional cost. Project Schedule Since the construction of the Maintenance Building follows the project schedule's "Critical Path," the delays that were experienced due to the soils conditions described above had an impact on the overall work schedule. The "Critical Path" is that sequence of items which must be constmcted in a specified order and will control the schedule for the final completion of the project Through Highland and City staff efforts, it is cuITently projected thai there will be a 45- day delay in completion of the project. It should be noted that originally approximately 75 days were submitted for rain delay and soils issues, but only a 45 day extension was approved. The CUITent completion date is scheduled for September 27, 2001, however, staff believes a substantial amount of work remains to be completed and this date could be modified in the future. Staff will be returning to Council on August 7, 2001 seeking approval to amend the CMC contract with Highland to cover their fees for the initial extension period and will bring appropriate documents back to the Council if the completion date needs to be modified further. Attachments: A List of change orders approved by the City Council to date B Lis1 of change orders approved by staff since last Council action on May 29, 2001 C List of pending change orders or possible additional contracts J. IEngmeerlADMINICorp Y ardCO InfoI tem2-cls.doc 6-J5 _. -...---..-..--.- . ----..- ---.. 1}1 Change Orders Approved I Highland Attachment A Summary, Gcouped by Change Orders Appcoved by City Council thcough 10 July 2001 Chula Vista Corp Yard Project # 092 Highland Partnership, Inc 1800 Maxwell Rd Tel: 619-397-0367 Chula Vista, CA 91910 Fax: 619-397-0389 CO No Can No Date Description Camp ID NTP Executed Days Appr Amt Change Orders Approved by City Council on 6 March 2001 001 09201000.0211/29/00 Demo Shops Canopy GARDNER 11/29/00 11/29/00 0 18,975,00 001 09201050-02 11/27/00 Restake Slope, Maint Bldg ACCULINE 11/21/00 0 2.480.00 001 09202110-01 11/16/00 Ha,d Demolition. Wall Sawcutling CEMENT CUT 0 42,24800 001 09202110.02 1/16/01 Demo of Specified HVAC Ductwork DEMKO 3/1/01 0 1,121,80 003 9203200-01 1/16/01 Step Bars @ Wash Bldg Plumbing PCS 0 434.00 001 09202211-01 11/29/00 Temp Access Road. Slope Geo FJWILLERT 10/25/00 0 1.262.50 Payment & Pertormance Bond For 001 09205120.01 12/5/00 Structu'al Steel. Aluminum Storefront & C&S DOC 12/5/00 0 14,040,00 Glazin9 003 09205120.01 1/23/01 Delete PIP Trench Drain An91e Sleel C&S DOC 3/14/01 0 (1.822.00) 001 09206100.01 11/6/00 Structural En9 Change GLBs to HELIX CON 12/11/00 0 4,237,00 Paralam 001 9201050-02 11/6/00 Additional Geotechnicallnvesti9ation AGRA 10/26/00 10/26/00 0 20.490.00 001 9202520.01 12/5/00 Payment & Pertonnance Bond SOL PAC 12/5/00 0 2,820,00 001 9202660.01 12/7/00 Excess Spoits Transfer Foe Fill SHERWOOD 11/28/00 12/5/00 0 13,801,13 002 9202660-01 1/18/01 Relocate Type F Box SHERWOOD 0 906,00 004 9202660.01 1/26/01 Fire Test Pit Manhole Covers SHERWOOD 0 1,979.00 005 9202660-01 1/26101 Added A-4 Cleanout, Vanous Slurry SHERWOOD 0 10,054.51 006 9202660.01 217101 Added Fire Hydrant Lateral @ New SHERWOOD 0 24,763,97 Shops 007 9202660.01 217101 Clean Existin9 Storm Drain SHERWOOD 0 4.260.12 001 9202685.01 11/27/00 Credit foe Excess Trench Spoils SATURN 1126/01 0 (2,040,00) 002 9202685-01 12/27/00 Temp Power. Maint, Wash & Central SATURN 12/27/00 12/27/00 0 5,872.99 Stores 001 9202900.01 1/3/01 Erosion Control. Bonded Fiber Matrix BENCHMARK 113101 1131/01 0 33,670.00 001 9203200.01 113/01 Added Rebar @ Admin A Stepped PCS 2/5/01 0 4.246.00 Footin9 002 9203200-01 1/3/01 Structural Plan Revisions - Rebar PCS 2/5/01 0 4,949,00 001 9203300.01 12118/00 Struc Concrete@AdminBOvertime SOLPAC 12/15100 12115/00 0 918,00 002 9203300.01 12/27/00 Change CIP to Precast Trench Drain SOLPAC 12/27/00 0 12,500.00 001 9204150.01 11/6100 CMU Changes @ Admin Bldg FABER 11/6/00 0 21.446.00 001 9206402-01 1/4/01 Stainless Steel Cladding & Casework MVC 0 26,961.00 001 9207100-01 12/27/00 Waterproofin9 at Interio, ofTest Tank SADDLEBACK 0 5,988.71 12/14100 001 9215400-01 11/3/00 Foe Construction Plan Changes MHP 11/6/00 12/5/00 0 4,684.00 Plumbin9 6 ....-----. EXHIBIT A -. FY 01-02 MAXIMUM RATES FOR CFDS - - CFD 97-1 Otay Ranch Open Space Maintenance Category FY2000-01 FY2001-02 Maximum Maximum Area A $0.O897/SF $O.0958/SF Residential Area A Non- $1214.23/A $1296.79/A Residential Area A Vacant $1373.57/ A $1466.97/A Area B $0.2100/SF $0.2243/SF Residential Area B Non- $2696.15/A $2879.49/A Residential Area B Vacant $3048.84/A $3256.16/A I CFD 97-2 Otay Ranch Preserve CateGory FY 2000-01 FY 2001-02 " . Maximum Maximum Area A: $O.O13S/SF $O.OI44/SF I Residential Non- $224.84/Acre $232.93/Acre I Residential I Final Map $224.87/Acre $232.93/Acre I Vacant $140.76/ Acre $ 150.33/Acre Area B: $54.40/Acre S58.l0/Acre Vacant . ----..----.--,. --",. E\h / bl-l A CFD 99-2 Ota)' Ranch SPA One Village 1 West - Category FY 2000-01 FY 2001-02 Maximum Maximum Residential $O.3749/SF $0.4004/SF Vacant $4623/Acre $4937/Acre CFD 2000-1 Sunbow II Villages 5 through 11 Category Maximum Residential $.44/SF Undeveloped $785líAcre Property Owner $7851/Acre Association ç-y h / [) / f It -, CFD 99-1 Otay Ranch SPA One Bond \ Issue Category Maximum ZONE A Village 1 Residential SO.28/SF Commercial $1600/Acre Community Purpose $400/ Acre Facility ZONE B Village 5 Residential $400 + $.29/SF Commercial $3717/Acre Community Purpose $ 929/Acre Facility ZONE C Village 1 West Residential $400 + $.44/SF Commercial $4266/ Acre I CommuniIy Purpose $1066/Acre I Facility COMBINED I I Undeveloped $8864/Acre Property Owner $8864/Acre Association : 002 9215400.01 12/26/00 ~:~sn Change to Precast TenCh MHP 1/25/01 0 (12.37500) 004 9215400.01 1/3/01 Added Floor Drains.Wash 81d9 MHP 1/25/01 0 2.50500 005 9215400.01 1/3/01 Temp Waste & Water Hookup City MHP 1/25/01 0 1.07000 Trailer 006 9215400.01 1/16/01 Repair/Reroute 3" Waterline @ Wash MHP 2/26/01 0 2.50000 Bldg. 001 9214451-01 11/17/00 Lift #1 Gate Change MCKINLEY 1117/00 0 576.00 Total Change Orders Approved by City Council on 6 March 2001 275,522.73 Change Orders Approved by City Council on 3 April 2001 001 09207500.01 12/19/00 g~~~~~~~~i~i~~ting Admin. Shops & ROEJACK 4/11101 4/19/01 0 216,30500 002 09202211.01 1/29/01 Grading Changes Associated With FJWILLERT 4/5/01 0 143,98900 Revised Soils Total Change Orders Approved by City Council on 3 April 2001 360,294,00 Gh3nge Orders Approved by City Council on 29 May 2001 002 09201000.02 4/12/01 General Requirements - Adds GARDNER 4/26/01 4/26/01 0 49.000.00 002 09202110.02 4/3/01 HVAC Demo & Cleanup DEMKO 4/18/01 4/20/01 0 1,294.00 -- 002 09206100.01 4/3/01 Framin9 Hardware Change HELIX CON 4/18/01 4/23/01 0 616.58 003 09206100.01 4/3/01 Roof Framing Clarification HELIX CON 4/18/01 4/23/01 0 1,565.00 004 09206100.01 4/3/01 Mechanical Curb Framing @ Admin HELIX CON 4/18/01 4/23/01 0 1,091.00 001 09207600-01 3/27/01 Expansion Joint @ New Admin CSM 4/5/01 4/11101 0 760.00 Construction 002 09207600-01 4/13/01 Change in Skylight Specification CSM 4/26/01 4/26/01 0 63,130.00 003 09207600.01 4/20/01 HHWD Facility Canopies CSM 0 90,900.00 008 9202660-01 316/01 Location & Excavation of 3" Waterline SHERWOOD 4/17/01 4/23/01 0 1.355.00 @ Bus Wash 009 9202660-01 316101 Move Tie-ins for Fire Hydrant Run @ SHERWOOD 3/26/01 0 4,108.00 Bus Wash 010 9202660-01 4/3/01 HHWF Fire Service SHERWOOD 4/17/01 4/23/01 0 17,250.00 011 9202660-01 4/6/01 Unmarked Existing Utilities SHERWOOD 4/17/01 4/23/01 0 6,462.00 012 9202660.01 4/11/01 Fire Service @ Administration Building SHERWDOD 4/17/01 4/23/01 0 10,713.00 013 9202660.01 4/17/01 D.27 Split Storm Drain Into (2) 3" @ SHERWOOD 4/18/01 4/23/01 0 1.235.00 Admin 004 9202685-01 2/16/01 SDG&E Temporary Power SATURN 0 6,69648 005 9202685.01 2/27/01 UIG Permanent Electric Per SDG&E SATURN 3/2/01 0 16,031.00 006 9202685.01 3/27/01 Revised Site Lighting SATURN 3/28/01 4/11/01 0 15.993.00 004 9203200-01 2/27/01 Added Step Bars @ Wash Bldg PCS 3/2101 4/11101 0 1,368.00 Plumbing 005 9203200-01 3/6/01 ~~~~~~~ Time For Rebar @ Maint Bldg PCS 3/14101 0 1,143.00 006 9203200.01 3127101 HHW Facility Canopy Pedestals Rebar PCS 41Sl01 4/9101 0 780.00 007 9203200.01 3/27101 Public Access CNG Rebar PCS 415101 4/10101 0 (137.00) ..>17 ..-.- ------..-----.--- 005 9203300.01 4110/01 HHWD Footing Bust SDLPAC 4/18/01 4/30/01 0 (170.00) 006 9203300.01 4/30/01 HHWD Facility Structural Concrete SDLPAC 5/1/01 5/9/01 0 47.293.00 002 9204150-01 2/16/01 Admin Bldg Grout @ E Wall FABER 3/2/01 0 450.00 004 9204150-01 3/27/01 Maint Bid CIP Wall CMU Modifications FABER 4/5/01 4/17/01 0 4.203.00 005 9204150.01 3/27/01 Public Access CNG CMU Change FABER 4/5/01 4/17/01 0 136.64 007 9204150.01 4/11/01 Deletion of Materials Bunkers FABER 4/18/01 0 (34.830.00) 008 9204150-01 4/17/01 HHWD Facility Masonry Overtime FABER 4/18/01 0 1.288.00 001 9211132.01 4/11/01 Deleting Projection Screen in Rm 145 SPECIFIED 0 (2.016.00) Admin 4/18/01 4/18/01 001 9215000-01 4/17/01 Variable Frequency Drives for AH-1 LGSMTL 4/18/01 4/24/01 0 7.544.00 007 9215400.01 2/27/01 Cap Severed House Water 3" Line MHP 3/20/01 0 275.00 008 9215400.01 4/3/01 Plumbing Connections @ Pit MHP 4/23/01 0 1.303.00 Waterproofing 4/18/01 009 9215400.01 4/3/01 OF/CI Specialty Sinks @ Admin MHP 4/18/01 4/23/01 0 11.548.26 010 9215400.01 4/16/01 House Gas Leak Repair MHP 4/18/01 4/23/01 0 870.00 003 9216000.01 4/18/01 4kW Grid Tied Photo voltaic Power HELIX ELEC 0 45.059.87 Syslem 005 9216000-01 4/27/01 Revised Light Fixtures HELIX ELEC 0 11.193.00 008 9216000-01 5/1/01 Add Light Fixture Rm S122 HELIX ELEC 5/8/01 5/20/01 0 300.00 Total Change Orders Approved by City Council on 29 May 2001 385.801.83 Cummulative Value of All Change Orders Approved through 29 May 2001 1.021.618.56 Status Presented to City Council as Separate Agenda Item 10 July 2001 001 9201050.3 5/29/01 Added Scope for Testing Inspections PSI 0 119.622 SubTotal Status Presented to. City Council as Separate Agenda Item 10 July 2001 119,622 Cummulative Value of All Change Orders Approved through 10 July 2001 1,141,240.56 5.)8 -. _.. -.-----..- . -.-.-----.------ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING CITY STAFF'S ACTION ON APPROVING CHANGE ORDERS ASSOCIATED WITH THE CONSTRUCTION OF THE PUBLIC WORKS OPERATIONS FACILITY AND CORPORATION YARD, LISTED ON ATTACHMENT A, APPROVING ALL THE CHANGE ORDERS LISTED ON ATTACHMENT B, AND AUTHORIZING STAFF TO PROCESS UP TO AN ADDITIONAL $250,000 IN CHANGE ORDERS WHEREAS, on September 26, October 20, October 17, October 24 and November 14, 2000 the City Council approved the award of multiple contracts for the construction of the Corporation Yard project; and WHEREAS, Highland Partnership, Inc., the City's Construction Manager, along with city staff have been overseeing the construction work; and WHEREAS, on September 26, 2000, the City Council amended policy #574-01 authorizing the City Manager to approve all change orders pertaining to this job with a single change order value not exceeding $50,000 and a cumulative value of.up to $250,000; and WHEREAS, this resolution will ratify staff's recent actions in approving change orders valued at $246,810 listed on Attachment A, and approve change orders valued at $199,751 listed on Attachment B; and WHEREAS, staff is seeking authorization to process up to an additional $250,000 for change orders in accordance with policy outlined above. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby ratify City staff's action on approving change orders valued at $246,810 associated with the construction of the Public Works Operations Facility and Corporation Yard listed on Attachment A, and approving change orders valued at $199,751 listed on Attachment B, attached hereto and incorporated herein as if set forth in full. BE IT FURTHER RESOLVED that staff is hereby authorized to process up to an additional $250,000 for change order approval in accordance with the policy outlined above. Presented by Approved as to form by John ~Lippitt "--- 2ß/~ Director of Public Works City Attorney iHIHOMEIATTORNEY\RESOI CocpY"d11 (J"y26" 2001 (1235PM)J -/9 -..-.-.. -"...".---..--.--" ------." COUNCIL AGENDA STATEMENT Item ',0 Meeting Date 8/7/01 ITEM TITLE: Resolution Establishing the maximum authorized special tax rates for Fiscal Year 2001-2002 for Community Facilities District Nos. 97-1, 97-2, 97-3,98-1,98-3,99-1,99-2, and 2000-1, authorizing the levy of special taxes for Fiscal Year 2001-2002 at the maximum authorized special tax rates applicable to each district and delegating to the City Manager the authority to establish the specific special tax rate applicable to each parcel Resolution Approving a First Amendment to the contract with Special District Financing and Administration, LLC for Special District Administrative Services and authorizing the City Manager to execute the agreement SUBMITTED BY: Director of Public Works ~ REVIEWED BY: City Manager ~: :¿i"" (4/5ths Vote: YesXNo..) One new Community Facilities District (CFD) was established during Fiscal Year 2000-2001 in the Otay Ranch and Sunbow developments, in addition to the eight CFDs established during Fiscal Years 1998-2000. Special taxes must be levied during Fiscal Year 2001-2002 in seven of these districts in order to pay for the maintenance of open space and preserve areas in CFDs 97-1, 97-2, 99-2 and 98-3; and to begin repaying bondholders in CFDs 97-3, 99-1 and 2000-1. Due to the cost associated with this new district added to scope of services required to be provided by SDF A and the work associated with processing the large number of buy downs in CFDs 97-3 and 99-1, an increase in the contract amount with SDFA is required. RECOMMENDATION: That Council: 1. Authorize the levy of special taxes for Fiscal Year 2001-2002 within CFDs 97-1, 97-2, 97-3, 98-3,99-1,99-2 and 2000-1 at the maximum authorized special tax rates applicable to each district and delegate to the City Manager the authority to establish the specific special tax rate applicable to each parcel so long as such tax rate does not exceed the applicable maximum special tax rate authorized to be levied by the City Council. 2. Approve an ¡¡mendment to the contract with SDFA to increase the maximum contract amount to $90,000 for these districts and authorize the City Manager to execute the agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. ENVIRONMENTAL: ¿,¡ ( -. ----------.--- ...-..------ Page 2, Item ~ Meeting Date 8/7/01 The City's Environmental Review Coordinator has reviewed the item before the City Council and has determined that the levy of special taxes and the amendment to the contract with Special District Financing and Administration to increase the maximum three-year contract amount is not a project as defined by the California Environmental Quality Act (CEQA) Section 15378, and therefore is not subject to CEQA. DISCUSSION: Background During Fiscal Years 1998-99 and 1999-2000, the following Community Facilities Districts were formed in the Otay Ranch and Sunbow II areas. 1. CFD 97-1: Open Space Maintenance District (Otay Ranch - SPA One, Villages 1 & 5) 2. CFD 97-2: Preserve Maintenance District (Otay Ranch) 3. CFD 97-3: Bond Issue for Acquisition of Public Facilities (Otay Ranch McMillin SPA One) 4. CFD 98-1: Interim Open Space Maintenance District (Otay Project, LLC-OVP, Villages I West, 2, 2 West, 6, 7 & Planning Area 12) 5. CFD 98-2: Interim Open Space Maintenance District (McMillin - D.A. America, Otay - SPA Two, Villages 6& 7) 6. CFD 98-3: Open Space Maintenance District No. 35 (Sunbow II) 7. CFD 99-1: Bond Issue for Acquisition of Public Facilities (Otay Ranch - SPA One, Portions of Village 1,5 and I West) 8. CFD 2000-1: Bond Issue for Acquisition of Public Facilities (Sunbow II Villages 5 -10) On August 1,2000 Council adopted Resolution No. 2000-265, which established the maximum and actual special tax rates for Fiscal Year 2000-01 for CFDs 97-1, 97-2, 97-3, 98-1, 98-3 and 99-1. On the same date, Council also adopted Resolution No. 2000-267, which established the annual special tax for CFD 2000-1. The exact rate for undeveloped properties for this district was not known at the time of the Council meeting because the bonds had not yet been priced. Resolution No. 2000-267 allowed for minor adjustment to the rate based on actual bond pricing (Attachment A). The special tax rate applicable to undeveloped property in this district was subsequently adjusted ITom $3263.61 per acre to $3273.90 per acre. On August 11,2000, the City's administrator ofthe Community Facilities Districts was notified by the County that one of the parcels within CFD 99-1 had been acquired by the Chula Vista Elementary School District and was therefore exempt from the special tax levy. This would have meant a loss in revenue of approximately $30,000 unless the rates in CFD 99-1 were revised. Since any changes needed to be done immediately in order to accommodate the County's schedule, City staff and the administrator, upon consultation with the City's bond counsel, adjusted the rates ofthe City's special tax to recover the loss in revenue ITom the undeveloped properties. On September 26,2000 Council adopted Resolution No. 2000-327, which ratified the revised rates for CFD 99-1 (Attachment B). In ), -. ... -..----.--.. --.---------..-.. Page 3, Item -.þ.-. Meeting Date 8/7/01 One new Community Facilities District was formed during Fiscal Year 2000/2001. CFD 99-2 covers Otay Ranch Village One West and will fund the maintenance of public open space and landscaping improvements. These improvements will include medians, parkways and walls along Telegraph Canyon Road, Olympic Parkway, Paseo Ranchero and East Palomar Street. Levy ofthe Special Tax was authorized through adoption of Ordinance No. 2820 on September 12, 2000 (Attachment C). The budget for Fiscal Year 2001-02 for this district is $54,011.00. Existing Districts The City has three existing CFDs for which bonds have been issued: 97-3,99-1 and 2000-1. CFD 97-3 finances improvements in Otay Ranch McMillin SPA One, such as portions of La Media Road, East Palomar Street. Administration costs for Fiscal Year 2001-02 for CFD 97-3 are projected to be $75,000 (as given in the bond indenture) and scheduled debt service on the bonds is $854,140. CFD 99-1 finances improvements in a portion ofOtayRanch Village I, Village 5 and Village I West. The main public facilities included are Olympic Parkway Phases I and 2, Paseo Ranchero Phase 2, and East Palomar Street. For CFD 99-1, administrative costs of$75,000 (as given in the bond indenture) and scheduled debt service on the Bonds of$I,985,473.76 are anticipated during Fiscal Year 2001- 02. The third district, CFD 2000-1, relates to the financing of various public facilities serving the Sunbow II development such as Telegraph Canyon Road, Medical Center Road and East Palomar Street. For CFD 2000-1, administration costs for Fiscal Year 2001-02 are projected to be $50,000 (as given in the bond indenture) and scheduled debt service on the bonds is $550,740. Note that Parcel No. 641-200-21, which is located within CFDs 2000-1 and 98-3, is proposed to be acquired by the school district. However, since the parcel has not yet changed ownership, it must be taxed as an undeveloped parcel during Fiscal Year 2001-02. Community Facilities Districts 97 -I, 98-1 and 98-2 all finance the maintenance of open space within the Otay Ranch development. CFD 97-1, which finances open space maintenance for Otay Ranch SPA One Villages One and Five, is broken down into two Special Tax Areas. Area A covers the entire district and includes maintenance of parkways, medians and regional trails along Telegraph Canyon Road, Otay Lakes Road, Paseo Ranchero, La Media Road and Olympic Parkway; Telegraph and Poggi Canyon detention basins and channels; and pedestrian bridges. Area B, which excludes the McMillin development, includes maintenance of connector trails, slopes and perimeter walls or fences along major streets in the district. A budget has been prepared for this District which totals $664,402 for Area A and $452,611 for Area B for Fiscal Year 2001-02. Community Facilities Districts 98-1 and 98-2 were set up as interim districts because the areas of Otay Ranch included in these districts were not developed and the density of development was not yet known at the time that these districts were established. These districts were formed to finance the portion of the cost of the maintenance of portions of the parkways and medians along Telegraph Canyon Road, Paseo Ranchero and Olympic Parkway and Telegraph and Poggi Canyon detention basins and channels allocable 10 the properties within these districts. The new CFD 99-2 has taken over the financing ofthat portion of costs of maintenance allocable to the property within CFD 98-1 ¿ ð -.. ...----- Page 4, Item ~ Meeting Date 8/7/01 that is north of Olympic Parkway. All ofthe open space areas within CFD 98-1 that are scheduled for maintenance during Fiscal Year 2001-02 are included in CFD 99-2. Therefore, special taxes will not be levied within CFD 98-1 during Fiscal Year 2001-02. The existing budget reserve for CFD 98- 1 will be divided between CFDs based on parcel acreage/ payment during Fiscal Year 2000-01. None of the improvements in CFD 98-2 are expected to be turned over to the City for at least two years, so special taxes will not be levied within this district for Fiscal Year 2001-02. Community Facilities District 98-3 finances open space maintenance in the Sunbow II development. This includes maintenance of street medians, parkways, slopes, and drainage channels and basins, and biological monitoring of native and revegetated open space. A total budget of$78l,165.00 is projected for Fiscal Year 2001-02 for this district. Several Planning Areas within CFD 98-3 were modified during the past fiscal year. The size of Planning Areas lOA and 10 both changed. This particularly affected Planning Area lOA, which was reduced ITom 7.83 Acres to 10.9 Acres. Additionally, Planning Areas 20,21 and 22 were approved by the same final map and could be considered to be one consolidated planning area. In accordance with the Rate and Method for CFD 98-3 and subsequent interpretations adopted by the City Council, the City Engineer shall reapportion the projected developments within the modified SPA Planning Areas. These revisions are shown on the Modified Exhibit C (Attachment D). These revisions do not result in a decrease in revenue ITom either Phase I C or Phase 2A. Community Facilities District 97-2 finances maintenance and biological monitoring ofthe preserve created in the Otay Ranch area. It is anticipated that the County of San Diego will take the lead in maintaining this area in cooperation with the City. Although no maintenance or monitoring costs were incurred during Fiscal Years 1999-2000 and 2000-01, it is anticipated that this work will commence during Fiscal Year 2001-02. Based on the Community Facilities District Report and the spreadsheet estimating the first year's monitoring costs, a maintenance budget of $35,137 and a monitoring budget of$114,635 has been included for Fiscal Year 2001-02. The large monitoring budget is due to the several biological surveys that need to be conducted, particularly during the initial year. The Community Facilities District Reports for CFDs 97-1, 97-2, 98-1 and 98-3 require the establishment ofa reserve in the funds established for each district of up to 100 percent of the total budget in order to provide revenue for the first half of the fiscal year before any income is received and to provide for cost overruns and delinquencies. A 50 percent reserve has been provided by including an additional 50 percent ofthe Fiscal Year 2001-02 budget. Additionally, in CFD 97-2 a buffer of$19,959 has been included to eliminate Special Tax swings. This should provide sufficient funding through December 31, 2002. Additional reserves may be provided depending on the schedule for accepting landscaping improvements. Fiscal Year 2001-02 Rates According to the Community Facilities District Reports for CFDs 97-1, 97-2, 98-1 and 98-3, the maximum Special Tax Rates for each fiscal year after 1998-99 shall be increased or decreased by the Ie, ----- -. .--- -...--.--.----- -----. ------- Page 5, Item ~ Meeting Date 8/7/01 lesser of the annual percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. The CPI increase between the second halfof2000 and the second halfof2001 was 6.8%. The change in the estimated California fourth quarter personal income was 6.98%. Therefore, staff used the CPI increase, which was the lesser of the two figures. The maximum authorized and projected annual special tax rates for all Community Facilities Districts are given below. Square footage (SF) refers to building floor area, while acreage refers to the total lot size. The projected annual rates are estimated based on square footage information given on the building permits. Staff proposes that the City Manager be authorized to modify the annual special tax rates based on actual square footage and acreage so long as such annual special tax rates do not exceed the maximum authorized special tax. Since the rates have been rounded, actual revenue may be slightly different. CFD 97-1 Otay Ranch Open Space Maintenance Category FY2000-01 FY2001-02 FY2000-01 FY2001-02 Estimated Maximum Maximum Annual Projected Revenue Annual Area A $0.0897/SF $0.0958/SF $0.0897/SF $.0958/SF $519,281 Residential Area A Non- $1214.23/A $1296.79/A $1214.23/A $1296.79/A $0 Residential Area A Vacant $1373.57/A $1466.97/A $487.78/A $ 460.56/A $139,130 Area B $0.2100/SF $0.2243/SF $0.2100/SF $.2243/SF $366,811 Residential Area B Non- $2696.15/A $2879.49/A $2696.15/A $2696.15/A $0 Residential Area B Vacant $3048.84/A $3256.16/A $213.57/A $ O/A $0 CFD 97-2 Otay Ranch Preserve Category FY 2000-01 FY 2001-02 FY 2000-01 FYOI-02 Estimated Maximum Maximum Annual Projected Revenue Annual Area A: $0.0135/SF $0.0144/SF $0.0069/SF $0.0038/SF $21,255 to - s Page 6, Item~ Meeting Date 8/7/01 CFD 97-2 Otay Ranch Preserve Residential Non- $224.84/Acre $232.93/Acre N/A $61.37/ $0 Residential Acre Final Map $224.87/Acre $232.93/ Acre $0 $0 $0 Vacant $140.76/Acre $150.33/Acre $0 $0 $0 Area B: $54.40/ Acre $58.IO/Acre $ 11.21/Acre $0 $0 Vacant CFD 97-3 Otay Ranch McMillin Bond Iss le Category Maximum FY 2000-01 FYOI-02 Estimated Annual Projected Revenue Annual Residential $O.392/SF $O.392/SF $0.3920/ $815,335 SF Commercial $4000/Acre N/A $4000/ 0 Acre Community Purpose $1000/ Acre N/A $1000/ 0 Facility Acre Undeveloped $7954/Acre $5013.62/A $ 1968.75/ $64,279 (Unrestricted) Acre Undeveloped $7954/ Acre $1986.39/A (Restricted) Property Owner $7954/Acre N/A $O/Acre 0 Association Land CFD 98-1 Otay Project Interim Open Space Maintenance District Category FY 2000-01 FY 2001-02 FY 2000- FYOI-02 Estimated Maximum Maximum 01 Annual Projected Revenue Annual Taxable Land $109.41/Acre $116.85/Acre $15.56/A $0 $0 / / I~ ,~, -- ~~._--'"--_._-_.._. Page7,Item~ Meeting Date 8/7/01 CFD 98-3 Open Space Maintenance District No. 35 - Snnbow II Category FY 2000-01 FY 2001-02 FY 2000- FYOI-02 Estimated Maximum Maximnm 01 Annual Projected Revenne Annual Residential $369.54/ EDU $394.66/ EDU $369.54 $394.66 $691,781.14 Industrial $2880.41/ Acre $3076.28/ Acre N/A N/A 0 Commercial $3224.65/ Acre $3443.93/Acre N/A $3443.93/ $42,670.32 Acre Undeveloped $2208.06/ Acre $2208/Acre $0/ $ 899.18/ $157,887.58 Acre Acre Undeveloped- N/A N/A N/A N/A 0 Extraordinary Acre Special Tax Note that a single family dwelling is equivalent to one EDU. Costs are spread to multiple family units on the basis of 0.8 EDUs per unit for street medians and parkways and 1.0 EDUs per unit for all other facilities in the CFD. CFD 99-1 Otav Ranch SPA One Bond Issue Category Maximum FY2000-01 FY 2001-02 Estimated Annual Projected Revenue Annual ZONE A Village 1 Residential $0.28/SF $0.28/SF $0.28/SF $517,540 Commercial $1600/Acre $1600/Acre N/A $0 Community Purpose $400/Acre $400/Acre N/A $0 Facility ZONE B Village 5 Residential $400 + $.29/SF $400 + $0.29/SF $400 + $0.29/SF $225,732 Commercial $3717/Acre $37 I 7/Acre N/A $0 (p ? .--.--- I Page 8, Item ~ Meeting Date 8/7/01 CFD 99-1 Otav Ranch SPA One Bond Issue Community Purpose $929/ Acre $929/Acre N/A Facility $0 ZONE C Village lWest Residential $400 + $.44/SF $400 + $0.44/SF $400 + $0.44/SF $77,110 Commercial $4266/Acre $4266/Acre N/A $0 Community Purpose $1066/ Acre $1066/ Acre N/A $0 Facility COMBINED Undeveloped $8864/Acre $2965.93/Acre $2286.96 $1,102,255 Property Owner $8864/Acre $2965.93/Acre $0 $0 Association The square footage of residential floor area is used to determine the charge for all developed residential properties. For all other categories, the parcel gross acreage is used. CFD 99-2 Otav Ranch SPA One Villal!e I West Category FY 2000-01 FY 2001-02 FY2001-02 Estimated Maximum Maximum Projected Revenue Annual Residential $0.3749/SF $0.4004/SF $0.4004/SF $54,152.74 Vacant $4623/ Acre $4937/ Acre $99.13/A $21,277.44 The above rates assume that the Future Annexation Areas (Parcels I and 2) have been annexed into CFD 99-2. / (,;; - -. -----,,-----,"--'-'-."" ....-------..----------.------ Page 9, Item ~ Meeting Date 8/7/01 CFD 2000-1 Sunbow II Villages 5 throueh 11 Category Maximum FY2000-01 FY 2001-02 Estimated Revenue Annual Projected Annual Residential $.44/SF $.44/SF $0.44/SF $111,272 Undeveloped $7851/Acre $3273.90/Acre $4832. I 7/A $429,902 Property Owner $7851/Acre $O/Acre 0 $0 Association The special taxes which will be applicable to typical single family dwelling units are shown in Attachment E for Otay Ranch Village I and 5, Otay Ranch McMillin and Sunbow II. Special taxes and assessments other than the seven Community Facilities Districts discussed herein are not included. Maps are provided for all districts in Attachment F. The final Special Tax Levy Reports will include a list of all parcel numbers and charges applicable to each parcel. Since the valid parcel numbers cannot be known for certain until after the assessment tape has been submitted to the County for inclusion on the County tax roll, the final reports will be prepared in August using the rates established in the draft reports. Contract Amendment The City has an existing one-year contract, with a two-year extension, with Special District Financing and Administration (SDFA) to perform administrative services for the City's CFDs (Attachment G). The maximum three-year contract amount was set at $65,000, and there is a clause that allows the City to add additional CFDs to the contract as long as the maximum is not exceeded. However, the establishment ofCFD 2000-1 in Fiscal Year 2000-01 was not anticipated when this estimate was prepared. The administrative cost for Fiscal Year 2000-01 was $4,379.50. Additionally, staff assumed a relatively low amount of buydowns based on past experience that indicates that few property owners would want to prepay their bonded indebtedness immediately after purchasing a new home. Although there were few buydown requests ITom home buyers, the developers were required to prepay a portion ofthe bonds on several properties in order to meet the City's limitation on general taxes and bonded indebtedness (2% of the purchase price per year). The administrative cost for this work for CFD 97-3 was $9200 during calendar year 2000. In order to pay the additional administrative costs associated with CFD 2000-1 and the bond prepayments for Fiscal Years 2000-01 and 2001-02, staff therefore requests that the maximum (p-Cj -- ..... m. .---------'.--------"---'---'" Page 10, Itero ~ Meeting Date 8/7/01 contract amount with SDFA be increased by $25,000 for these two years to $90,000. These additional expenses will be paid out ofthe budgets for the CFDs. Several other minor contract changes are also recommended. The date for completion of contract services will be changed to reflect the two-year contract extension. Staff has also negotiated a lower variable rate for new CFDs, which will be added to the appropriate contract section. It is requested that the City Manager be authorized to execute an amendment to the agreement which reflects these changes (Attachment H). FISCAL IMPACT: Budgeted expenditures total approximately $2,305,674 for all CFDs for Fiscal Year 2000-2001, excluding reserves. The scheduled debt service on bonds will be $854,140 for CFD 97-3, $1,985,473.76 for CFD 99-1, and $550,740 for CFD 2000-1. The projected revenues will be sufficient to cover this amount. The general fund will be reimbursed up to a maximum of$368,808 for City staff services performed during Fiscal Year 2000-2001. The additional $25,000 in administrative expenses has already been included in the budgets for the CFDs. Since these expenses will be paid through the revenues ofthe CFDs, there will be no impact on the City's general fund. Attachments: A. Resolution 2000-267 B. Resolution 2000-327 C. Ordinance 2820 authorizing the levy of Special Tax for CFD 99-2 D. Modified Exhibit C to CFD 98-3 E. Table on typical single family home charges F. Maps for all CFDs G. Original Agreement between City of Chula Vista and Special District Financing and Administration (SDFA) H. First Amendment to Agreement between City and SDFA j,IENGlNEERIAGENDAICFDLEVYO2a.EMc.DOC FILE 0725-IO-CFDOO C - '-'----""'-'-- -.... ----- - ."- ...---.------. Iirr/J&!1/'-téA/T A 1 RESOLUTION NO. 2000-267 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ESTABLISHING AN ANNUAL SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOWII- VILLAGES 5 THROUGH 10) FOR FISCAL YEAR 2000-2001 WHEREAS, the City Council has initiàted proceedings, held a public hearing, conducted an election and received a favorable vote ITom the qualified electors to authorize the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code of the State of California (the "Act"). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SunbowlI-Villages 5 through 10) (the "District"); and WHEREAS, this City Council has, by the adoption of Ordinance No.2814 (the "Ordinance") pursuant to the Act, authorized the levy of special taxes within the District to pay for costs and expenses ofthe District, and this City Council desires to establish the specific rate of the special tax to be levied and collected for the current fiscal year; and WHEREAS, this City Council has previously authorized the issuance ofbonds ofthe District in the principal amount not to exceed $8,000,000 (the "Bonds") to be secured by and paid ITom the - proceeds ofthe levy of the special taxes within the District; and I WHEREAS, such Bonds are to be sold and the debt service schedule for the Bonds is to be established after the date on which this resolution is adopted; and WHEREAS, there has been presented to this City Council for its consideration specific rates of the special tax to be levied and collected for the current fiscal year which are based upon projections of the debt service schedule for the Bonds and other authorized costs and expenses of the District; and WHEREAS, this City Council desires to establish specific rates of the special tax to be levied and collected for the current fiscal year based upon such projections and to delegate to the City Manager the authority to adjust such specific rates based upon the actual debt service schedule established for the Bonds; and WHEREAS, Government Code Section 53340 provides that this City Council may provide, by resolution, for the levy of the special taxes in the current tax year at the same rates or at a lower rate than the rate provided for in the Ordinance, if such resolution is adopted and a certified list of all parcels subject to the special tax levy including the amount ofthe special tax to be levied on each parcel for the current tax year (the "Certified Parcel List"), is timely filed by the official designated by this City Council with the Auditor ofthe County of San Diego (the "County Auditor"). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista, acting as the legislative body of Community Facilities District No. 2000-1 (Sunbow II - Villages 5 through 10), as follows: -'1 SECTION 1. The above recitals are all true and correct. I (y II -" "' - ---". . -..---.--- ,-"-""--'-""'-~-- Resolution 2000-267 .-_\ Page 2 ~ SECTION 2, Subject to adjustment as provided for in Section 3 below, this City Council hereby authorizes the levy of the special tax for the current fiscal year (Fiscal Year 2000/2001) at the rates set forth in Exhibit "A" attached hereto and incorporated herein by this reference. SECTION 3. The City Manager is hereby authorized to adjust and finalize the specific rates of the special tax as set forth in Exhibit "A" to reflect the actual debt service schedule for the Bonds so long as such special tax rates do not exceed the maximum special tax authorized to be levied in accordance with the Ordinance. The City Manager is further authorized and directed to prepare or cause to be prepared the Certified Parcel List based upon the final special tax rates and to submit or cause the Certified Parcel List to be submitted to the County Auditor on or before August 10th, 2000, or such later date to which the County Auditor may agree. SECTION 4. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected, and shall be subject to the same penalties and same procedure and sale in cases of any delinquency for ad valorem taxes, and the tax collector of the County of San Diego is hereby authorized to deduct reasonable administrative costs incurred in collecting any said special tax. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurerofthe CityofChula Vista, acting for and on behalfofthe District. SECTION 5. The County Auditor is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel ofland effected in a space marked "public - improvements, special tax" or by any other suitable designation, the installment of the special tax I' as shall be set forth in the Certified Parcel List. SECTION 6. The County Auditor shall then, at the close of the tax collection period, promptly render to the District a detailed report showing the amount and/or amounts of such special tax instal1ments, interest, penalties and percentages so col1cctcd and from what property eol1ected, and also provide a statement of any percentages retained for the expense of making any such col1ection. SECTION 7. This resolution shall become effective upon its adoption. Prepared by Approved as to form by lJrL/i~ ~e Jt: P. Lippitt Jo aheny L./ P lie Works Director . Attorney .- ~ - . ..~- . --_...:'-.....:...:c._-_.. --- - 1 Resolution 2000-267 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City ofChuia Vista, California, this I" day of August, 2000, by the following vote: AYES: Councilmembers: Davis, Moot, Padilla, Salas, and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None , ¿';,:"':,I.//"~"-'I Shirley HQrton.!Mayor ATTEST: ~Cu...í3~ ~ Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) - CITY OF CHULA VISTA ) \ I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2000-267 was duly passed, approved, and adopted by the City Council at a regular meeting ofthe Chula Vista City Council held on the I" day of August, 2000. Executed this I" day of August, 2000. ~tlt:L~t~ Susan Bigelow, City Clerk' - I --. it? .-.... ---.--------'-'- R2000-267 -1 EXHIBIT A I CFD 2000-1 Sunbow II Villages 5 through 11 Category Maximum FY2000-01 Estimated Revenue Actual Residential $.44/SF $.44/SF 0 Undeveloped $7851/Acre $3263.61/Acre $611,214 Properly Owner $7851/Acre $01 Acre 0 Association - I - I I. ./ --" -" ---------.-.... .---.- /J TT /-Jt!H J-1 ¿- Æ/T ß .. - RESOLUTION NO. 2000-327 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND RATIFYING A REVISION TO THE LEVY OF THE SPECIAL TAX FOR FISCAL YEAR 2000/2001 FOR COMMUNITY FACILITIES DISTRICT 99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VILLAGE ONE WEST) WHEREAS, on August I, 2000, this City Council, by the adoption of Resolution No. 2000-265 ("Special Tax Resolution"), previously authorized the levy of the special tax for Fiscal Year 20001001 for Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) ("CFD No. 99-1"); and WHEREAS, on August II, 2000, a date subsequent to the adoption of the Special Tax Resolution, the City's administrator of certain community facilities districts formed by the City, including CFD No. 99-1, was notified that one of the parcels within CFD No. 99-1 had been acquired by the elementary school district and was, therefore, exempt trom the levy of the special tax for CFD No. 99-1 pursuant to the provisions of the rate and method of apportionment of the special tax for such district; and ~ WHEREAS, the exemption of such parcel from the levy of the special tax for CFD No. 99-1 would have resulted in the loss of approximately $30,000 in anticipated special tax revenue unless the special tax levy as approved by the Special Tax Resolution was revised; and WHEREAS, as a result of the timing of the notification of the City's administrator of the acquisition of the subject parcel by the elementary school district and in order to insure that sufficient special taxes were levied and placed on the tax roll for Fiscal Year 2000-2001 to pay debt service on the bonds secured by such special taxcs and to administer such bonds and CFD No. 99-1, the City staff and the Ci1y's administrator, upon consultation with bond counsel, adjusted the rates of the special tax previously approved in the Special Tax Resolution to be levied in Fiscal Year 2000/200 I on undeveloped property within the District to reflect the loss of special tax revenue ITom the exemption of the elementary school district parcel trom the levy of the special tax; and WHEREAS, the City Council desires to approve and ratify the adjustment in the special tax rates levied in CFD No. 99-1. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista, acting as the legislative body for Community Facilities District 99-1, as follows: SECTION 1. The foregoing recitals are true and correct. ---" -~--_. / (tJ /':.")' --- - ------ ----------..-------' Resolution 2000-327 (, Page 2 SECTION 2. This City Council does hereby approve and ratify the revised levy of the Special Tax for Fiscal Year 2000/2001 for Community Facilities District 99-1 as set forth in Exhibit A, a copy of which is on file in the Office of the City Clerk. Presented by Approved as to form by CJ¿A~p) It: M. Kaheny Ú ity Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 26th day of September, 2000, by the following vote: AYES: Counci1members: Davis, Moot, Salas, and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla /----" . ",1;;/ 'j ;'J ;/ ¡ý{,Ctn.1 Shirley HO1idl~ Mayor' ATTEST: -:;:::- ='iI .11"6..0 ~~ Susan Bigelow, City Cler STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VrST A ) I, Susan Bigelow, City Clerk ofChula Vista, California, do hereby certify that the foregoing Resolution No. 2000-327 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 26th day of September, 2000. Executed this 26th day of September, 2000. -:::- .::;j. J.t1..~---¡'~~ (.........., Susan Bigelow, City Clerk r I -------,__..~":"""'2_._. I ., r - . R2000-327 CFD 99.1 AGENDA TABLE - LEVY 2000.{l1 I Original Submittal/Resolution I Revised Submittal /Resolution I FY 2000-01 ESTIMATED FY 2000-01 ESTIMATED CATEGORY MAXIMUM ACTUAL REVENUE ACTUAL REVENUE $0.0000 $0.0000 $0.0000 RESIDENTIAL - ZONE A PER DU PER DU $174,951.96 PER DU $174,951.96 $0.2800 $0.2800 $0.2800 PER SO FT PER SO FT PER SO FT $400.0000 $400.0000 $400.0000 r RESIDENTIAL - ZONE B PER DU PER DU $42,162.73 PER DU $42,162.73 f $0.2900 $0.2900 $0.2900 PER SO FT PER sa FT PER sa FT $400.0000 $400.0000 $400.0000 RESIDENTIAL - ZONE C PER DU PER DU $0.00 PER DU $0.00 $0.4400 $0.4400 $0.4400 PER SO FT PER sa FT PER SO FT COMMERCIAL - ZONE A $1,600.00 $1,600.00 $0.00 $1,600.00 $0.00 PER ACRE PER ACRE PER ACRE COMMERCIAL - ZONE B $3,717.00 $3,717.00 $0.00 $3,717.00 $0.00 PER ACRE PER ACRE PER ACRE COMMERCIAL - ZONE C $4,266.00 $4,266.00 $0.00 $4,266.00 $0.00 - PER ACRE PER ACRE PER ACRE CPF - ZONE A $400.00 $400.00 $0.00 $400.00 $0.00 PER ACRE PER ACRE PER ACRE CPF - ZONE B $929.00 $929.00 $0.00 $929.00 $0.00 PER ACRE PER ACRE PER ACRE CPF - ZONE C $1,066.00 $1,066.00 $0.00 $1,066.00 $0.00 PER ACRE PER ACRE PER ACRE UNDEVELOPED $8,864.00 $2,916.28 $1,816,275.84 $2,965.93 $1,816,276.68 PER ACRE PER ACRE PER ACRE PROPERTY OWNER $8,864.00 $0.00 $0.00 $0.00 $0.00 ASSOCIATION PROPERT'r PER ACRE PER ACRE PER ACRE TOTAL $2,033,390.53 $2,033,391.37 Actual levy after roundin9 to two decimals: 2,033,387.54 $2,033,388.54 Difference ($2.99) ($2.83) 09106/2000 ~ r . 11 ¡ ~-(7 .------ .--..--.... 1Î7T#e#/;?'~A//~ ~ ORDINANCE NO. 2820 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 99-2 (OTAY RANCH SPA ONE - VILLAGE ONE WEST) AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council has initiated proceedings, held a public hearing, conducted an election and received a favorable vote ITom the qualified electors authorizing the levy of a special tax in a community facilities district, all as authorized pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act ofl 982," being Chapter 2.5, Part 1. Division 2, Title 5 ofthe 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 ofChula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 99-2 (OTAY RANCH SPA ONE - VILLAGE ONE WEST) (the "District"). The City Council of the City ofChula Vista, California, acting as the legislative body of Community Facilities District No. 99-2 (Otay Ranch Spa One - Village One West), does hereby ordain as follows: SECTION I. This City Council does, by the passage of this ordinance, authorize the levy of special taxes pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A," attached hereto (the "Special Tax Formula"), referenced and so incorporated. SECTION 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annually determine the special tax to be levied for the then current tax year or future tax years, except that the special tax to be levied shall not exceed the maximum special tax calculated pursuant to the Special Tax Formula, but the special tax may be levied at a lower rate. SECTION 3. The special taxes herein authorized, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4. The special tax shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special tax. The lien of the special tax shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. ------- -.. ¿'If -- Ordinance 2820 Page 2 - SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. Presented by Approved as to form by ~~~~~ ity Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this 12th day of September, 2000, by the following vote: AYES: Councilmembers: Davis, Moot, Padilla, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None ~*~~~ Shirley Horton ayor v ArrEST: ~~~ro, ) Susan Bigelow, City Cler STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, CaJifomia, do hereby certify that the foregoing Ordinance No. 2820 had its first reading at a regular meeting held on the 22"" day of August, 2000 and its second reading and adoption at a regular meeting of said City Council held on the 12th day of September, 2000. Executed this 12th day of September, 2000 ~1.1t1.1~O~ Susan Bigelow, City Cle - -'-'- &.../9 /! 7T#M/'-1ß"fi/r :0 5 ~~~O OMN ~~~~ ~~~~ 0 ~~ 8 ~ ~~~~ ~~~ ~~~~ ~~~~ ~ ~~ ~ ~ ~~~~~ ~~~ ~~~~ ~~~~ ~ ~~ ~ ~ ~~~~~ ~~~ ~~~~ ~~~~ ~ ~~ 0 ~ ~~~~ ~~~ ~~~~ ~~~~ ~ ~~ ~ ~ ~~~~ N~~ ~~~~ ~~~~ ~ ~~ ~~Ææ~~N æ~~ ~~~~ ffi~~m N ~~ w~=~~~~ ~NN M~~N ~~~~ ~ ~~ ~õ~~~~~ ~~~ igæ~ ~~~~ ~ i~ E ~~~~ ~~~ ~~~~ ~~~~ ~ ~~ ] ~~N~ ~~N O~~N ~M~O ~ ~N ~~.~~NO ~~M ~o~~ O~M~ 0 ~W ].~oom~a ~~~ soooooo N~~N a ~m 1j!~~~~ ~~~ ~~~. ~~~~ ~ ~~ ~I~N~~~ ~~~ ~~w~ ~M~~ ~ ~~ ~ ~~~~ ~~~ ~~~~ ~~~~ ~ ~~ ðððð ~ðð ðððð ðððð ð ~ wwww ~ww wwww wwww w ~ ~ ~~~~ ~~~ ~~~~ ~~~~ ~ ! ~ 00000000 OOO~ oo~oo~ ~OOOO~ 00 0 ~ .~~~~ ~~~ ~~~~ ~~~~ ~ ~ ~~Æ~~~~ ~~~ ~~~~ ~~~~ ~ ~ ::;:£MMMMM WMM MMMM MMMM M W - g gO~~~~~ ~~~ ~~~~ ~~~~ ~ ~ ~ ~ ~ NNNN ONN NNNN NNNN N N § ~~~~~~~~~ R~~ ~~~~ ~~~~ ~ ~ ~~ ro~ ~!~~~~ ~~~ ~~~~ ~~~~ ~ ~ ~~o ~~ ~~wwww ~ww wwww w~~w w ~ üò¡;¡ 0»( I~~ I~ .gggg ~gg gggg gggg g g~ o~u j~ ~ð~æ~~ ~~~ ~~B3 ~~~~ ~ ~~ ~ i~£ i~ ~w ~N~ - -M~~ ~ ~ ~ NÑ ~ ~g~ oo~ ~ 0000 oog 0000 0000 0 0 ~ ~~] ~~ ~B~oo~ ~~~ ~~~~ ~~~~ ~ ~ 'ê~<= ~Q õ:,¡ ~ i11 ~ 5i ~ ~ §w::;: Æa 0000 ~oo 0000 0000 0 o~ o:,¡ ~o ~~~~~~ ~~~ ~~~~ ~~~~ ~ ~6 a ~~ !OM~N~ ~~~ ~~~~ ~ ~~ ~ ~g ~ ] ~w M 0 ~ ~ 0000 000 0000 0000 0 0 - 00 ¡;B~~~~ ~~~ ~~~~ ~~~~ ~ ~ ]~ N N ::;: ~~oo~N ~~~ ~~~~ ~~w~ ~ w~ ~~~ßg ~~~ ~-~~ ~~~N ~ ~~ ~~~~~ ~~ ~~B3 ~~~~ N ~ :::¡ ~N~ - -M~~ ~ ~ - ~~~~~~ ~~~ ~~~~ ~~~~ ~ ~ ro::J::;:::;:ww oww 0 oww oooww w E ~ 0 00 0 '" Imw~NM ~~~ COo~~ -O~N ~ M. ¡;~ ~~ ~~ ~--~ ~NNN - Nro ~ Õ ~ w ~1 5' ;? ~ :z M ~ ~ ~ 0 w ;;, - -) n - . ---- - ---...._,,--- ._--" ¡fÏrr~PNG;H~T ¿- TYPICAL SINGLE FAMILY HOME CHARGES (2000 SQUARE FEET) COMMUNITY FACILITIES DISTRICTS ONLY OTAY RANCH OTAY OTAY DISTRICT NO. SPA 1 RANCH RANCH SPA SUNBOW II VILLAGES 1 & 5 McMILLIN 1 VILLAGE (EXCEPT 1 WEST McMILLIN) CFD 97-1 Area A $191.60 $191.60 CFD 97-1 Area B $448.60 CFD 97-2 Area A $13.80 $13.80 $13.80 CFD 97-3 $784.00 CFD 98-3 $394.66 CFD 99-1 I West $1280.00 CFD 99-1 Village I $560.00 CFD 99-1 Village 5 $980.00 CFD 99-2 $800.80 CFD 2000-1 $880.00 TOTAL Village I: $1214.00 $989.40 $2094.60 $1274.66 Village 5: $1634.00 Note: Only Villages 5 -- lOin Sunbow II are located in CFD 2000-1. A portion of Otay Ranch Village I is excluded ITom CFD 99-1. July 26,2001 H,IHOMEIENGINEEIAGENDA ICFDLEVYO2c- EMC ?;-.J./ - - .--- ...-------... .----..---- J ~ ] ] I c:r: ] x , : ro . I- ro 'õ J ! 1 "" J ~í==' Q)u ì .~ J ~t;ï8 f-O6 1 ~w ~ ,, ~U ~ "' f- Z 0" £IJ j~<{>-~ 1 ~OZz::: .. f- ~(fJ~8j £IJ ~wZ. - :r: '¡¡:::::;:¡:~5 , x U-L>W i w~.....J:¡ .. "'Ow~:;; ;:::UG -¡ <{ ~ , >- 0... 0 '" f-(fJç zzu '; :::Jw I Lo... ,,¡ LO 0"-' -z- U ] ~ . ci ~~ "> z 'z z< ] ."§ U~ d ~ . ~ å I~! 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(J) ,¡ 0 z . t5 .¡:: d ~ < - ~ i ~ H ~I¡ ~ .~ ~ n H ~ !:~ - LL §,,~~"" :::¡, >,a:J ;..H "'I' _-g85 IE~~I ~; :::J ~ " e!, E ~- ~ è I ~i¡ E >, OJ ~,; ~ R -S ~ & 'd,,6 ~ -. .- --,,- -----,----,0 --'--- '-C; I ¡McMillin I Otay Ranch EXHIBIT "A" I CFD No. 97-3 PLANNING AREA MAP I j I I I I \ I I ì ¡ " j I ' ~ ~ ~&D CON~~LT~NTS ~ - - - - I ~ . ~ -,), 1 .. _. _._-- -"----..-. ,--.----'-'--- I '" ..., 111 w "" >= f- ;2 0 0 t=1 ¡g :: 'é' a a W :>- W ~ - :>-0 ~ 0 O'¡"~ ' mi5::~ õ f-QJ Z~~~ ~:;; W '¿ Ul ~ :;; a. z if> 0 f= z ~ w u a.. 0 a ...J > ~ û . '. " , " ". ~~ '-..., " ... ~- . . , ¡, -- " , ' .' -~~- ..' " . --- ~ ." . , " ~ ¡ " ¡ w ~ ~ 3 . ¡;;~~~-~~ . ...J;:!~~~ _I; .u:¡"" If' !; ~~. ;~ §u ~~ ~~~ ¡Ii; .- " - z< " .. z; >.~ ~: ", ., .' II'; >- ". .. o' . .O.Ii!I~¡' I . . ¡illillmm: ~_m--'------~-'-~----'- ~ ~ ~ S- , ~ ~ l n ! ~~ ~. ~ Z t " cj¡1 ~ 5 B ¡ ~ ~ 'I, '¡.. ;; g :. f- ,;¡ ¡,j! ^ w " " "Ul -¡, ',,¡ -- ;U U "' '; " w ~"""-- ~ < ~oo >, ^" S -,> ',:. {ì "' " "6 "I, '" ",¡ ~ ð 0 ~. 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I ~ r:) a a~o 0 "~ ~~~~i I ~ rlì ~ "." ,~ ., ""-,. , .~ "~~~. b - ---.- _._-- § " " ~ . ?i ; - Ë' ~ ¡s ~ ;; 0 t u. (J) ~ ~ ;¡ LO IJ)tJ 2. >~. .~<¡ "'- ~~ ~ '% U"'1 . ~~ ::::222.::..::. 0. ¡¡ ~ ~ ~ ~L ~~ ~ 0 ::¡ - ~~ « ~ . ~ 0 " .:" ~ .~~~ ::)0 ~~z~zzzz :::;0 " ~. ,..,~. ~",'\' z 00 '" - ~ ~ " ..s ,~,~ 0 ZIJ) oQQQ-e: >-0 ~" ~ "'... ~.~:: ¡;j~ ~~~~~¡s m~ ë> > ~t~ !~H U:J 0000::;>0. 00 I -..of: ~.~.. r "'- o.o.o.~~ Wo .... ok; ~I «U ~~~~~ ¡;: I "'~J!. ~.:;~.. \.~ 0. ~ '" ,-.. '" '" Vo a 00 8 ~ ~~ t<l - -000 0 "'" . ~ ~"""'6>2 " ~'¡~cn I I ""=0 OON~-N "" ~ I ,..,~~. 0 °zo N"'NOOO (f) ~ G~.. , /""'\ 1J)::)°oo-111 «w I U"!' "-.J 0 ~::::;N II1-vvv ~=' :;¡¡j;/I 8 lJ)ôo:¡::¡:v.;-v~.::.~ ~~ a ~O% 000"0 i N I ð 0 ~ c\I z ~ ~/ / I- " U § f'V'õÕ L.L....- z I-J¡ ~ (j) (f) LJ.. <:: " D.._w 02 g ~ 0 ~ ~~ >- (j)::J ::) :J a: - 0<:: <w> °.° 0 I <{ LJ.. -- r-O 21-- (l)w :J-s >~ ~ ~- 0 -I 0 <{ r- -~ CO-co 5(1) Uš 13 ~ « (f) LJ.. "v '--' 0 LL >- r- ~ Õ - I- Z . "I; ~ ~I ~ II ¡ I ,3 ~ ~~ ~ åJ~ffi ~~ l ~ tfJ 0 ~ ¡¡¡ ß~'~ ~Q~ 8 ~ ~: ~~ ~~~ ~~5 . ~ ~ . U J .' " ! J._¡, .;,' "~ .~ ~o 1\ ~.~~~ ,,~u~ "-r" ~> - ~~ , >~§æ~, 5§§:;; ~ ...C .,,¡. . t~ 8 ~;("1a~" " ~ f() ~W \. .:;; "oJ "Š~~:i . , §~ " . P<§~ ~ - /' ~; . 4 ~~.~ § ~ æ. u e¡;¡~" "cD .~ 1 ~~,.. ~ ~~ . ----- , /"~ /1 Tm:v; /-7;-Aff G - / .' Agreemem between City of Chula Vista and Special District Financing & Administration, LLC for Special District Administration Services This agreement ("Agreement"), dated ~c.5/ /95' for the purposes of reference only. and effective as of the date last execute ess an'other'date is otherwise specified in EXl'1ibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A. paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragrap4 4, as Consultant, whose business fonn is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A. paragraph 6 ("Consultant"). and is rnade with reference to the following factS: Recitals Whereas, the City recently fonned six Community Facilities (Mello-Roos) Districts to provide funding for the construction of inÏrastrucrure or for the maintenance of open space areas in accordance with the Community Faciiities Act of 1982; and, Whereas, the City requires a consultant for the performance of administrative services which shall include, bUt not be limited to, calculation of the maximum and annual special tax rates for developed and undeveloped propenies, submittal of all special tax levies per parcel to the County via magnetic tape, preparation of an annual repon for all districts, and performance of bond services (where applicable); and, Whereas, the Request for Proposals was prepared and advenised, proposals were received and reviewed, and ftTIlli were interviewed and ranked in accordance with City policies; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page stam Obligatory Provisions.) 2pty12.wp Standard Fonn Two Pany Agreement (Twelfth Revision) January 20, 1999 Page 1 ¿-,JA f /c £/1 2 I 1 /, -. -~---_.._-_. . ObligalOry Pro,'isions Pages NOW. THEREFORE, BE IT RESOLVED that the City and Consultant do hereby murually agree as follows: 1. Consultant's Duties A, General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entit]~d "General Duties"; and. B. Scop~ of Work and Schedule In the pro~ess of performing and delivering said" General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule". not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of th~ ess~nce of this agr~~ment. Th~ General Duties and the work and deliverables required in the Scop~ of Work and Schedule shall be herein referred to as the "DefIDed Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request ITom Consultant, frorn time to time reduce the DefIDed Services to be performed by the Consultant under this Agreement. Upon doing so. City and Consultant agree to mee1 in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the DefIDed Services herein set forth, City may require Consultant to perform additional consulting services related to the DefIDed Services (" Additional Ser\'ices "), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rare Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fIXed fee is otherwise agreed upon. AU compensation for Additional Services shan be paid monthly as billed. 2ptyl2.wp Standard Form Two Pany Agreement (Twelfth Revision) January 20, 1999 Page 2 -,._~-~--.,-_. -----..,-_¿ --)CJ -' -.. -.... E. Standard of Care Consultant, in performing any Services under this agreement, whether Defmed Services or Addirional Services, shall perfonn in a manner consistent with that level of care and skiil ordinarily exercised by members of the profession currently pracricing under similar conditions and in similar locarions. F . Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of Joss by the following insurance coverages, in the foil owing categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A. Paragraph 9, combined single limit applied separately to each project away ITom premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liabiliry Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shail demonstrate proof of coverage herein required, prior to the commencernent of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. 2pty12. wp Standard Fonn Two Pany Agreement (Twelfth Revision) January 20, 1999 Page 3 h --3 Ò ~- - ~..._....-~--_._-"-"~----- In order to demonscrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonscrating same, which shall be reviewed and approved by the Risk Manager. H. SecuritY for Performance. (1) Perfonnance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Perfonnance Bond"), then Consultant shall providè to the City a perfonnance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the tenn, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocab1e letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The lener of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. 1. Business License Consulumt agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 4 (;3/ -. -"--" . ._--------- A. Consulration and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the DefIDed Services and Schedule therein conrained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout !he term of !he agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for !he justifiable delay in !he Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing ITom Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event rnore frequently than monthly, on the day of !he period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement. subject to the requirernents for retention se1 forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each pany designates the individuals ("Contract Administrators") indicated on Exhibi1 A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent !hem in !he routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 5 ~ .3~ .'-'-'.-"---'-"'---' The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defmed Services within the alloned time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A. Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor porTions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall reporT economic interests to the City Clerk on the required Statement of Economic Interests in such reponing categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Anorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or parTicipate in making or in any way anempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial imerest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's 2ptyl2. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 6 & -33 -,- -.. . ---.---,.---------- economic interests. as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defmed Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement. or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 7 !oj?' Consultant may not conduct or solicit any business for any pany to this Agreement. or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except wi!h the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, ITom and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of !he Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers. agents, or employees in defending against such claims. whether the same proceed to judgment or not. Further, Consultant at its own expense shall. upon written request by the City, defend any such suit or action brought against the City. its officers, agentS. or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. T~rrnination of Agr~ement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have !he right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event. all finished or unfmished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City. and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the Ciry Administrator determines that the Consultants' negligence, errors. or omissions in the performance of work under this Agreement has resulted in expense to City greater !han would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 2pty12. wp Standard Form Two Parry Agreement (Twelfth Revision) January 20, 1999 Page 8 ~ -3!J .. .-_--,. . ---. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific wrinen notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all fmished and unfmished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 1 L Assignability The services of Consultant are personal to me City, and Consultant shall not assign any interest in this Agreement. and shall not transfer any interest in me same (whether by assignment or novation), withoUt prior wrinen consent of City. City hereby consents to the assignment of the portions of the Defmed Services identified in Exhibit A, Paragraph 17 to me subconsultants identified thereat as "Permined Subconsultants". 12. Ownership, PublicalÍon, Reproduction and Use of Material AIl reportS, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in pan: under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express wrinen consent of City. City shall have umestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records AC1), distribUte. and otherwise use, copyright or patent, in whole or in part. any such reports, studies, data, statistics. forms or other materials or properties produced under mis Agreement. 13. Independent ContractOr City is interested only in the results obtained and Consultant shall perform as an independent contractOr with sole control of me manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an' employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 9 b -310 -. --.,-...----------"--- compensation b~n~fits, injury leave oroth~r leave benefits. Therefore, City will not withhold stare or federal income tax. social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hoJd the City hannless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has fIrSt been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended. the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consulrant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Anorney's F~~s Should a dispUt~ arising oUt of this Agreement result in litigation, it is agreed that the prevailing parry shall be entitled to a judgment against the other for an amount equal to reasonable anorney's fees and court costs incurred. The "prevailing parry" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the ev~nt that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defrned Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless sp~ciñcally authorized in writing by City, Consultant shall have no authority to act as CitY's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 10 - . If the box on Exhibit A, Paragraph 16 is marked, the Consultam and/or rheir principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Orherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permined to be given pursuant to this Agreement rnust be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or cenified, with rerum receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Emire Agreemem This Agreement, togerher with any other wrinen document referred to or contemplated herein, embody rhe entire Agreemem and understanding between the panies relating to rhe subject mailer hereof. Neither this Agreemem nor any provision hereof rnay be amended, modified, waived or discharged except by an instrument in wriÚng executed by the party against which enforcement of such amendmem. waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the oilier party that it has legal authority and capacity and direction ITom its principal to enter into this Agreement, and that all resolutions or oilier actions have been taken so as to enable it to emer into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courtS located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreemem, and performance hereunder, shall be rhe City of Chula Vista. [end of page. next page is signarure page.] 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 11 (; ~ 31 ...-.-. SignatUre Page to Agreement betWeen City of Chula Vista and Special District Financing & Administration, LLC for Special District Administration Services IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: -ø_S/. 19 iJ City of Chula Vista / Anest: ~~LJ¡111 at Ley Susan Bigelow, City C erk Approved as to form: ':& ~¡~ JOm Kaheny, City Ano ey Dated: Special District Financing & Administration, LLC BY:~~;~~;:/ e - ( Cli h-., Barbara e-Carter, Prmclpal By: 9i ¡þJ) Jeffery Hamill, Principal 2ptyl2.wp Standard Form Two Parry Agreement (Twelfth Revision) January 20, 1999 Page 12 - . Exhibit List to Agreement (X) Exhibit A. 2pty12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 13 h' I() ..-.-'-------------... Exhibir A ro Agreement between City of Chula Vista and Special District Financing and Administration, LLC I. Effective Date of Agreement: Date of approval bv CitY Council 2. City-Related Emity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the Stare of California () ~ndustrial Deve10pment Authority of the City of Chula Vista. a ( ) Other: . a [insert business form] ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista. CA 91910 4. Consultant: Special District Financing & Administration, LLC (SDFA) 5. Business Form of Consultam: ( ) Sole Proprierorship (X ) Partnership ( ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 333 South Juniper Street 2ptyl2.wp Standard Form Two Parry Agreement (Twelfth Revision) January 20, 1999 Page 14 fo, -" ------ --_..,-------- . m_---_-- ---- Escondida. California 92025 Voice Phone (760) 233-2630 Fax Phone (760) 233-2631 7. General DUties: The consultant shan provide special district administration services relating to the billing of pro perry owners for six Mello-Roos Community Facilities Districts (CFDs), including CFD 97-1, CFD 97-2, CFD 97-3, CFD 98-1, CFD 98-2 and CFD 98-3. This work shall commence with the 1999-2000 tax year (commencing on date of City approval of contract through March 31, 2000) and can be extended to include the 2000-01 and 2001-02 tax year (through March 31,2002) at the City's option by written request of the DirectOr of Public Works prior to May 1,2000. 8. Scope of Work and Schedule: A. Detailed Scope of Work: ACTIVITY 1 Review all relevant documents City will provide Consultant with a list of all building permits issued during the periods specified in the Methods of Apportionment within Otay Ranch and Otay Ranch McMillan planning areas. Consultant will obtain and review building permit information, fmal maps and site development plans for an CFDs as welJ as all reJevant information on me. Note that building permits may refer to Lot numbers rather than parcel numbers or addresses. Current Assessor Parcel listings shall be obtained. ACTIVITY 2 Update parcel database/ spreadsheets Based on information provided by the County and the City on currently valid parcels, update the database for each CFD no later than June 30. Separate databases used for fee calculation must be prepared where there is more than one bilJing area (such as Area A and Area Bin CFD 97-1 and 97-2). Updating databases shall include changes in billing category (from "Undeveloped" to "Developed") and subtraction of acreage for developed and exempt areas from the undeveloped acreage. ACTIVITY 3 Determine charge on each parcel As part of updating the parcel database, calculate the maximum Special Tax rates by adjusting the previous year's rares by the lesser of the increase in the San Diego Consumer Price Index or the California Fourth Quarter Per Capita Income. Based on information provided by the City regarding budget requirements for the folJowing fiscal year, fund balances and reserve requirements, the actUal Special Tax rates for each billing category shall be determined and the 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 15 b' .- --.------ ... --""""~.._----- costs distribUted in accordance with the Rate and Method of Apportionment included in the Engineer's Report for each CFD. The Extraordinary Special Tax for CFD 97-3 mUSI be calculated separately, with a list of parcels and amounts owed provided lO the City. ACTIVITY 4 Provide disk for property owner mailing Within 30 days of the City's request, the consultant must provide lO the City a'disk or other mumally agreed upon fonnat which will include the CFD number, site address, property owner name and address, parcel number and maximum Special Tax charge on each parcel in a fonnat which will be acceptable to the City's printer. ACTIVITY 5 Prepare and submit tape Compile and transmit a comple1e list of the acmal special tax levies for each assessor's parcel in each CFD to the County via magnetic tape prior to July 31. Note that since there will be a separate fund for each CFD, the list for each CFD must be kept separate]y. The consultant shall make any corrections to the infonnation on the tape requested by the County prior to the County's [mal deadline of August 10. ACTIVITY 6 Prepare and submit annual Special Tax Report to City Deliver a draft annual report to the City on or prior to June 30, and the [mal annual report to the City on or prior to August 15. Both [mal and draft reports shall include information and assumptions used to derive the maximum and annual rates; a report on the Extraordinary Special taxes owed, with parcel numbers and amounts given (CFD 98-3); and the amount of delinquent taxes in CFDs 97-1 and 97-2 to be spread over the undeveloped parcels; and a list of all parcels in each CFD with the following infonnation: acreage, residential square footage, rate category, area (where applicable), maximum allowable charge and acmal charge. Such [mal report shall meet the satisfaction of the City Engineer. ACTIVITY 7 Prepare delinquency report (for CFDs 97-1 and 97-2) Based on infonnation obtained from the County, prepare an annual written delinquency report in order to detennine the amount of delinquent taxes which will need to be spread to the undeveloped parcels. Such report shall be delivered to the City on or before June 30 and shall meet the satisfaction of the City Engineer. ACTIVITY 8 Perform bond services for CFD 97-3 Perform all required bond call spreads when requested and coordinate the early redemption of oUtstanding bonds. Each year during which a sale of any bonds occurs, prepare an annual 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 16 &-+3 - ....._- ." .. -- ....--.---------"--" repon to be submined no later than October 30 to the California Debt and Invesunent Advisory Commission as required by Section 53359.5(b) of the California Government Code as amended. ACTMTY 9 Perform services regarding individual special tax liens for CFD 97-3 Calculate wrinen prepayment quotes for individual special tax liens upon request therefore. For parcels prepaying the special tax, prepare the documents required to release the liens to the satisfaction of the City. ACTMTY 10 Prepare a spreadsheet for calculation of the Backup Special Tax for CFD 97-3 Prepare a spreadsheet(s), using Microsoft Excel or other program as requested by the City, which will allow the City to collect Backup Special Tax Payments at building permit issuance to accommodate changes in density or building square footage. The City shall be provided with the disk containing the file for this spreadsheet. This is a one time only task to be completed on or before June 30. 1999. ACTMTY 11 Meetings with City staff The consultant's staff shall anend an initial kickoff meeting and a meeting upon completion of the draft Special Tax Repon with the City's staff. These meetings shall be scheduled by the City. ACTMTY 12 Attendance at City Council meetings (at the City's option) At the City's request, the consultant shall anend City Council meeting(s) at which the assessment for the above mentioned Community Facilities Districts are to be discussed. ACTIVITY 13 Perform Annual Arbitrage Calculations for CFD 97-3 (at the City's option) If City so requestS. schedules to be prepared include: 1. Determination of yield on bond issues utilizing the present value of debt service payments 2. Computation of invesunent earnings subject to arbitrage rebate for each applicable fund Utilizing the furure value of nonpurpose investments 3. Table of assumptions and computational information 4. Summary lener indicating the results of Consultant's fmdings with respect to any required arbitrage rebate liability 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 17 ¿--ti4 -. . -.--...-.--....."......--- Such schedules shall be deIivered within 60 days of City' s request. B. Date for Commencement of Consultant Services: ex) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverab1es: Deliverable No. I: On or before June 30 of every year, commencing in 1999, draft Special Tax Rep0l1 and delinquency report for CFD 97-1 and 97-2. Deliverable No.2: On or before June 30, 1999, deliver the computer disk containing the files for the spreadsheet for calculation of the Bach.llp Special Tax for CFD 97-3. Deliverable No.3: On or before July 31 of every year, commencing in 1999. electronic tape with parcel numbers and billable amounts for each Community Facilities District shall be submined to the County of San Diego Deliverable No.4: On or before August 10 of every year, commencing in 1999, final corrections to the tax roll shall be submined to the County Deliverable No.5: On or before August 16 of every year, commencing in 1999, subminal of Final Special Tax Report with corrected printouts shall be delivered to the City D. Date for cornpletion of all Consultant services: March 31,2000, unless extended pursuant to Paragraph 7 above. 9. Insurance Requirements: (X) StatUtory Worker's Compensation Insurance ( ) Employer's Liability insurance coverage: $1,000.000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 18 ¿ 115- ...,._.. 10. Materials Required to be Supplied by City ro Consultant: A. Copy of the Final EngiDeer's Report for all CommuIDty Facilities Districts B. Copy of the Final Official Statement, bond iDdenture, arbitrage certificate and other documents as required for CommuIDty Facilities Districts iDvolviDg a bond issue (CFD 97-3) C. Access to the City's compUterized permit tracking system D. For CFD 98-3, copies of site development plans (for commercial and multiple family properties) and FiDal Maps which have been approved prior to March 1 of the previous fiscal year E. (After frrst fiscal year) Copies of taX reapportionment forms completed by City for parcels which have been segregated by the County duriDg the previous fiscal year 11. Compensation: A. () SiDgle Fixed Fee Arrangement. For performance of all of the Defmed Services by Consultant as hereiD required, City shall pay a siDgle f!Xed fee iD the amounts and a1 the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows; Milestone or Event or Deliverab]e Amount or Percent of Fixed Fee () 1. Interim Monthly Advances. The City shall make iDterim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as iDterest ITee loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back ITom the compensation due for thar phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the 2pty12. wp Standard Form Two Parry Agreement (Twelfth Revision) January 20, 1999 Page 19 6-~ ---. .-...--.--.--......, City that has been provided. but in no event shan such interim advance payment be made unless the Contractor shan have represented in writing that said percentage of completion of the phase has been performed by the Conttactor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. () Phased Fixed Fee Arrangement. For the perfonnance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shan pay the fIXed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shan not be entitled to the compensation for a Phase, unless City shan have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1 $ ~ $ 3. $ () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be retUrned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shan have represented in writing that said percentage of comp1etion of the phase has been performed by the 2pty12.wp Standard Fonn Two Party Agreement (Twelfth Revision) January 20, 1999 Page 20 ~ Contracrof. The practice oî making interim monthly advances shall not conven this agreement ro a time and materials basis of payment. C. () Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shan pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the îollowing terms and conditions: (1) () Not-ro-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defrned Services herein required of Consultant for $ including an Materials, and other "reimbursables" ("Maximum Compensation"). (2) () Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant ITom providing additional Services at Consultant's own cost and expense. (3) (X) Additional Services Upon Request At any time during the term of this agreement the City Engineer may request the Consultant to perform additional services. The Consultant shall perform the same on a rime and material basis at the rates listed below, in an amount not to exceed $5,000 per year. Rate Schedule Category of Employee Hourly oî Consultant Name Rate PrincipaJ Jefferv Hamill $110.00 2pty12.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 21 6-ç/P Principal Barhara Hale-Caner 5110.00 Programmer 59500 Associate ~ Data Entrv! SecretarY ~ () HourJy rates may increase by 6% for services rendered after [month], 19 , if delay in providing services is caused by City. D. (X) Other Work shall be paid on the following basis per Community Facilities District, with all costs, materials, expenses and labor included in said costs. Costs are per year unless otherwise indicated. (1) CFD 97-1 a. Fixed fee for Activiries I through 7: $1,850; and b. 52.50 per parcel when such parcel is fIrst included in the CFD (2) CFD 97-2 a. Fixed fee for Activiries 1 through 7: $1,850; and b. $2.50 per parcel when such parcel is fIrst included in the CFD (3) CFD 97-3 a. Fixed fee for Activities 1 through 6: $1,800; and b. $2.50 per parcel when such parcel is first included in the CFD c. Activity 8: $850 per year during any year in which bond services are required and in which this agreement is in force d. Activity 9: No charge for prepayment quotes; $250 per prepayment request paid by requesting party ro prepare all documems necessary to release the lien ~. Activity 10: No charge to City f. Acrivity 13 (optional): Arbitrage calculations - $500 for inirial set- up for the schedules, $1250 per year for annual calculations up ro an 18-month period, £1500 for transaction periods exceeding 18 months (4) CFD 98-1 a. Fixed fee for Activiries I through 6: $1600 2pty12. wp Standard Form Two Parry Agreement (Twelfth Revision) January 20, 1999 Page 22 r; /~., -4- '1 ---.--. --.- -.-.---..--.-------"'---'.- Should this interim district be converted to a permanent district, it shall be renegotiated at City's option per Section lID.(8) below. (5) CFD 98-2 a. Fixed fee for Activities 1 through 6: $1600 Should this interim district be converted to a permanent district, it shall be renegotiated at City's option per Section lID.(8) below. . (6) CFD 98-3 a. Fixed fee for Activities 1 through 6: $1650; and b. $2.50 per parcel when such parcel is first included in the CFD (7) Overall Expenses a. Activity 11: No charge for first two meetings; $100 per meeting over two meetings. Meetings held prior to execution of this contract are excluded. b. Activity 12 (optional): $100 total per attendance at a Council meeting (8) New CFDs: The number of districts included in this contract may be increased after the 1999-2000 tax year billing at the City's option. Fixed fees for Activities 2 and 5 will be negotiated for these new districts. Fixed fees will be as follows for these new districts: Activity 1: $150 per year. Activity 3: $500 per year Activity 4: No charge Activity 6: $350 per year Activity 7 (if required): $150 per year Activity 8 (if a bond issue is involved): $850 per year during any year in which bond services are required Activity 9 (if a bond issue is involved): No charge for prepayment quotes; $250 per prepayment request paid by requesting party to prepare all documents necessary to release the lien Activity 10 (if required): No charge to City Activity 13 (optional, if a bond issue is involved): Arbitrage calculations - $500 for initial set-up for the schedules, $1250 per year for annual calculations up to an 18-month period, $1500 for transaction periods exceeding 18 months 12. Materials Reimbursement Arrangement 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 23 Ie ----- For the cost of out of pocket expenses incurred by Consultant in the performance of ser\'ices herein required. City shall pay Consultant ar the ra1es or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate () Reports, not to exceed $_: () Copies, not to exceed $_: () Travel. not to exceed $_. () Prin1ing, not to exceed $_: () Postage. not to exceed $_. () Delivery, not to exceed $- () Long Distance Telephone Charges. not to exceed $ () Other Acrual Identifiable Direct COSts: , not to exceed $ - . not 10 exceed $ - 13. Contract Adminis1rators: City: Elizabeth Chopp, Civil Engineer, Ciry ofChula Vis1a, 276 Fourth Ave., Chula Visra CA 91910, (619) 691-5258 Consultan1: Barbara Hale-Caner, Special District Financing and Administration (SDFA), 333 South Juniper Street, Suite 208. Escondido CA 92025, (760) 233-2630 14. Liquidated Damages Rate: ( ) per day. ( ) Other: 15. Sratement of Economic IntereslS, Consultant Reporting Ca1egories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer, ( ) FPPC Filer () Category No.1. Investments and sources of income. () Category No.2. Interests in real property. 2pry.l2.wp Srandard Form Two Party Agreernent (Twelfth Revision) January 20, 1999 Page 24 -- . ----------- ..- . ._------- ~ ~I _. () Category No.3. Investments. interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. () Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) TO provide services, supplies, materials, machinery or equipment. () Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, rnaterials, ma"";nery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17, Permitted SubconsultantS: 18. Bill Processing: A. Consultant's Billing TO be submitted for the following period of time: ( ) Monthly 2ptyl2. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 25 to --- ------.--. ---".--- ( ) Quarterly (X ) Other: Upon completion of all duties within Deliverables ] through 5 Quarterlv thereafter B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: 19. Security for Performance ( ) Performance Bond, $ ( ) leITer of Credit, $ ( ) Other Security: Type: Amount: $ () Retention. If this space is checked. then notWilhstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the Cily shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: - % ( ) Retention Amount: S Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: 2pty12. wp Standard Form Two Party Agreernent (Twelfth Revision) January 20. 1999 Page 26 ¿ C2 ,; ,-:J.) --- - . .-. --------.----- /l7mej-J¡tj£~ H FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND SPECIAL DISTRICT FINANCING AND ADMINISTRATION, LLC FOR SPECIAL DISTRICT ADMINISTRATIVE SERVICES This first amendment to the agreement for Financial-based appraisal of toll franchise is entered into effective as of August 7, 2001 by and between the City of Chula Vista, (CITY) a municipal chartered corporation of the State of California, and Special District Financing and Administration, LLC (CONSULTANT). RECITALS WHEREAS, the CITY has approved an Agreement with CONSULTANT dated May 25,1999 and approved by Resolution 19472 (Agreement); and WHEREAS, Agreement was for a one-year term, with a two-year extension at City's option, and a maximum amount of $65,000; and WHEREAS, Agreement was extended two years by the Director of Public Works through a letter dated March 16, 2000, a copy of which is attached hereto as Attachment One; and WHEREAS, CONSULTANT is required to do a greater volume of work than was anticipated in the original Agreement; and WHEREAS, both CITY and CONSULTANT desire to amend the Agreement to revise the maximum contractual amount and to revise the Date for Completion of all consultant services and the scope of work to agree with the terms of the extension granted by CITY; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; NOW, THEREFORE, the agreement is hereby amended as follows: I. Exhibit A, Section 80, is amended to read as follows: D. Date for completion of all Consultant services: March 31,2002 J:\EngineerIASMTDISTI 1 st-exten-SDF A-contract.doc Page 1 b _.. ------_..- ----------- II. Exhibit A, Section 11 C(2), is amended to read as follows: (2). (X) Limitation without Further Authorization on Time and Materials: At such time as Consultant shall have incurred time and materials equal to $90,000 ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. III. Exhibit A, Section 110(8), is amended to add the following to the end ofthe Section: The variable fee for Activities 1 through 6 will be $1.50 per parcel billed. IV. Except as modified herein, all other provisions of the Agreement approved by Resolution No. 19472 on May 25,1999 shall remain in full force and effect. END OF FIRST AMENDMENT SIGNATURE PAGE FOLLOWS J:\EngineerlASMTDISn 1 st-exten-SDF A-contract.doc Page 2 ...-------- ¿ ¿'"4::;- - . SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND SPECIAL DISTRICT FINANCING AND ADMINISTRATION, LLC FOR SPECIAL DISTRICT ADMINISTRATIVE SERVICES IN WITNESS WHEREOF, as of the Effective Date, City and Consultant have executed this First Amendment thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: David D. Rowlands, Jr., City Manager Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Special District Financing and Administration, LLC By: [Signature] By: [Print Name and Title] By: [Signature] By: [Print Name and Title] J :\EngineerIASMTD ISTì 1 st-exten-SDF A-contracl.doc Page 3 6 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA EST ABLISHIN G THE MAXIMUM AUTHORIZED SPECIAL TAX RATES FOR FISCAL YEAR 2001-2002 FOR COMMUNITY FACILITIES DISTRICT NOS. 97-1, 97-2, 97-3, 98-1, 98-3, 99-1, 99-2 AND 2000-1, AUTHORIZING THE LEVY OF SPECIAL TAXES FOR FISCAL YEAR 2001-2002 AT THE MAXIMUM AUTHORIZED SPECIAL TAX RATES APPLICABLE TO EACH DISTRICT AND DELEGATING TO THE CITY MANAGER THE AUTHORITY TO ESTABLISH THE SPECIFIC SPECIAL TAX RATE APPLICABLE TO EACH PARCEL WHEREAS, pursuant to the rates and method of apportiomnent of the Special Tax for Community Facilities Districts Nos. 97-1, 97-2, 98-1 and 98-3 approved by the qualified ejectors of each respective community facilities district, the maximum Special Tax rates for each fiscal year after 1998-99 for each community facilities district shall be increased or decreased by the lesser of the annual percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index ("CPI") or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January; and WHEREAS, the CPl increase between the second half of calendar year 1999 and the second half of 2000 was 6.8% and the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income was 6.98%, therefore, the increase in the CPI index will apply to the increases in the maximum Special Tax rates for each community facilities district for Fiscal Year 2001-2002; and WHEREAS, the maximum Special Tax rates for Fiscal Year 2001-2002 for all community facilities districts are set forth in Exhibit A, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, this City Council desires to establish the maximum Special Tax rate that may be levied in Community Facilities Districts Nos. 97-1, 97-2, 97-3, 98-1, 98-3 and 99-1 in Fiscal Year 2001-2002 at the rates as set forth in Exhibit A hereto and to delegate to and designate the City Manager as the official to prepare a certified list of all parcels subject to the Special Tax levy including the amount of the Special Tax to be levied on each parcel for Fiscal Year 2001-2002 as authorized by Government Code Section 53340. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista, acting as the legislative body of Community Facilities Districts Nos. 97-1, 97-2, 97-3, 98- 1,98-3 and 99-1 respectively, as follows: 1:,11-1 -. --,---'-'-'" SECTION I. The foregoing recitals are true and correct. SECTION 2. This City Council does hereby establish the maximum Special Tax rates that may be levied for Fiscal Year 2001-2002 in Community Facilities Districts Nos. 97-1, 97-2, 97-3,98-1,98-3 and 99-1 as the rates set forth in Exhibit A attached hereto. SECTION 3. Pursuant to Govemment Code Section 53340, this City Council hereby delegates the authority to and designates the City Manager as the official to prepare and submit a certified list of all parcels subject to the levy of the Special Tax within the community facilities districts to which this resolution applies including the amount of the Special Tax to be levied on each parcel for Fiscal Year 2000-2001 and to file such list with the auditor of the County of San Diego on or before August 10,2000 or such later date on or before August 21, 2000 with the prior written consent of such auditor. The amount of the Special Tax to be levied on each such parcel shall be based upon the budget for each such community facilities district as previously approved by this City Council and shall not exceed the maximum Special Tax as set forth in Exhibit A hereto applicable to the community facilities district in which such parcel being taxed is located. Presented by: Approved as to form by: John P. Lippitt Director of Public Works í,11 .1 --' _. -...-..------.----,.. -------- EXHIBIT A FY 01-02 MAXIMUM RATES FOR CFDS CFD 97-1 Otay Ranch Open Space Maintenance Category FY2000-01 FY2001-02 Maximum Maximum Area A $0.0897/SF $0.0958/SF Residential Area A Non- $1214.23/A $1296.79/A Residential Area A Vacant $1373.57/A $1466.97/A Area B $0.2100/SF $0.2243/SF Residential Area B Non- $2696.l5/A $2879.49/A Residential Area B Vacant $3048.84/A $3256.16/A CFD 97-2 Otay Ranch Preserve Category FY 2000-01 FY 2001-02 Maximum Maximum Area A: $0.0 135/SF $0.0144/SF Residential Non- $224.84/Acre $232.93/Acre Residential Final Map $224.87/Acre $232.93/ Acre Vacant $140.76/Acre $150.33/Acre Area B: $54.40/ Acre $58.10/Acre Vacant I 611 _. .----....--------- ...-.- CFD 97-3 Otay Ranch McMillin Bond Issue Category Maximum Residential $O.392/SF Commercial $4000/ Acre Community Purpose $IOOO/Acre Facility Undeveloped $7954/Acre (Unrestricted) Undeveloped $7954/ Acre (Restricted) Property Owner $7954/Acre Association Land CFD 98-1 Otay Project Interim Open Space Maintenance District Category FY 2000-01 FY 2001-02 Maximum Maximum Taxable $109.41/Acre $116.85/Acre Land CFD 98-3 Open Space Maintenance District No. 35 - Sun bow II Category FY 2000-01 FY 2001-02 Maximum Maximum Residential $369.54/ EDU $394.66/ EDU Industrial $2880.41/ Acre $3076.28/ Acre Commercial $3224.65/ Acre $3443.93/ Acre Undeveloped $2208.06/Acre $2208/ Acre Undeveloped- N/A N/A Extraordinary Special Tax 2 !,.-¡A -------- --- -. .--, . --, ..._-- CFD 99-1 Otay Ranch SPA One Bond Issue Category Maximum ZONE A Village 1 Residential $0.28/SF Commercial $1600/ Acre Community Purpose $4001 Acre Facility ZONE B Village 5 Residential $400 + $.29/SF Commercial $37 I 7/Acre Community Purpose $929/ Acre Facility ZONE C Village lWest Residential $400 + $.44/SF Commercial $4266/ Acre Community Purpose $1066/ Acre Facility COMBINED Undeveloped $8864/ Acre Property Owner $8864/Acre Association 3 r;,4~5 - . -... --.--- .---- CFD 99-2 Otay Ranch SPA One Village I West Category FY 2000-01 FY 2001-02 Maximum Maximum Residential $O.3749/SF $0.4004/SF Vacant $4623/ Acre $4937/Acre CFD 2000-1 Sunbow II Villages 5 through 11 Category Maximum Residential $.44/SF Undeveloped $7851/Acre Property Owner $7851/Acre Association 4 /, fl-!, - . - . -"-------' .- RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE CONTRACT WITH SPECIAL DISTRICT FINANCING AND ADMINISTRATION LLC FOR SPECIAL DISTRICT ADMINISTRATIVE SERVICES, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT WHEREAS, the City has an existing one-year contract, with a two-year extension, with Special District Financing and Administration (SDF A) to perform administrative services for the City's CFDs; and' WHEREAS, the maximum three-year contract amount was set at $65,000, and there is a clause that allows the City to add additional CFDs to the contract as long as the maximum is not exceeded; and WHEREAS, the establishment ofCFD 2000-1 in Fiscal Year 2000-01 was not anticipated when this estimate was prepared and the administrative cost for Fiscal Year 2000-01 was $4379.50; and WHEREAS, additionally, staff assumed a relatively low amount ofbuydowns based on past experience that indicates that few property owners would want to prepay their bonded indebtedness immediately after purchasing a new home; and WHEREAS, although there were few buydown requests from home buyers, the developers were required to prepay a portion of the bonds on several properties in order to meet the City's limitation on general taxes and bonded indebtedness (2% of the purchase price per year) and the administrative cost for this work for CFD 97-3 was $9200 during calendar year 2000; and WHEREAS, in order to pay the additional administrative costs associated with CFD 2000-1 and the bond prepayments for Fiscal Years 2000-0 I and 2001-02, staff therefore requests that the maximum contract amount with SDF A be increased by $25,000 to $90,000 with the additional expenses to be paid out ofthe budgets for the CFDs. I ~~ I /. . I 0 L,'; f ._, - --..----- NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Chula Vista does hereby approve a First Amendment to the contract with Special District Financing and Administration LLC for Special District Administrative Services, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Manager of the City of Chula Vista is hereby authorized to execute said Amendment on behalf ofthe City ofChula Vista. Presented by Approved as to form by & ' , John P. Lippitt JOh~ ~ Director of Public Works City Attorney ""'ttomey\"eso\!" Ameodment SOFA 2 -,. ---,---- / /I,. J ,.... COUNCIL AGENDA ST A TEMENT k Item Meeting Date ~ ITEM TITLE: Resolution Approving First Amendment to the Agreement with Vollmer Associates LLP for a toll road operational review for the SR-125 Project, and authorizing the City Manager to sign the amendment. Resolution Approving First Amendment to the Agreement with InITastructure Management Group, Inc for a financially-based appraisal of the SR-125 Franchise, and authorizing the City Manager to sign the amendment. Resolution Appropriating $65,000 ITom the Interim SR-125 DIF Fund to CIP Project, SR-125 Franchise Review, STM-348. SUBMITTED BY: Director of Public Works~~ REVIEWED BY: Gl?- (4/5ths Vote: Yes..x.. No---.J City Manager f-t' ¡? IV On November 7, 2000 the City Council authorized staff to enter into an agreement with Vollmer Associates LLP (Vollmer), to conduct a "peer" review of information used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projections for the SR-125 Toll Road Facility. Further, the Council also authorized staff to enter into an agreement with Infrastructure Management Group, Inc. (IMG) to conduct a financially based appraisal of the SR-125 Franchise. The agreements, as originally approved, anticipated that completion of certain items would require input ITom third parties. Due to circumstances beyond the consultants and City's control, these items have not been made available by those parties and amendments to the agreements need to be approved. RECOMMENDATION: That Council approve the resolutions: 1. Approving the First Amendment to the Agreement with Vollmer Associates LLP for a toll road operational review for the SR-125 Project, and authorizing the City Manager to sign the amendment; 2. Approving the First Amendment to the Agreement with InITastructure Management Group, Inc for a financially-based appraisal of the SR-125 Franchise, and authorizing the City Manager to sign the amendment; and 3. Appropriating $65,000 ITom the Interim SR-125 DIF Fund to CIP Project, SR-125 Franchise Review, STM-348. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. .-....-- ----...-.----. -. Page 2, Item- Meeting Date: 8/7/01 DISCUSSION: On May 2, 2000, the City Council considered a report on the pros and cons of public ownership of the SR-125 Toll Road and directed staff to spend an adequate effort to investigate the necessary actions and commitments needed for the City to be involved in a public toll road. Then, on August 22, 2000, the Council reviewed a report ITom the firm of Smith and Kempton which outlined the necessary actions and studies required before considering entering into a JP A for ownership and operation of the toll road can be made. Based on those actions it was determined that it would be in the best interests of the City to proceed with further discussions/negotiations with CTV on acceptable terms and conditions for a possible transfer of the SR-125 Franchise. To accomplish these discussions, it was also determined that it would be necessary to conduct an independent review of information relative to traffic and revenue projections and to conduct an independent financial appraisal of the SR-125 ITanchise prior to making a final decision on a possible transfer. Per the Council's instructions, on November 7, 2001, staff brought agreements forward for approval for a "peer" review and a financial appraisal. The City contracted with Vollmer Associates LLP conduct an independent review of the proposed revenues that would be generated by the tolls, a copy of the agreement is attached (Attachment I). In order to determine the toll revenues, a traffic volume study needed to be performed in order to project toll revenues. Wilbur Smith and Associates (WSA) was preparing this analysis for CTV and Vollmer's contract authorized them to do that work. In addition, the City contracted with Infrastructure Management Group, Inc. to provide a financial based appraisal of 1he Franchise. A copy of the agreement is attached (Attachment 2). The City needs to have a good understanding of the value of the Franchise in order to enter into negotiations for its purchase. IMG requires the information ITom Vollmer's review in order to complete the appraisal. Due to circumstances beyond the control of either the City or the consultants the work under these contracts cannot be completed as originally scheduled. Attached is a letter ITom the firm of Smith, Kempton & Watts (SK&W), who are acting on behalf of the City as project managers, dated June 12, 2001 outlining the delays (Attachment 3). As indicated in the letter, the delays mean that the time frames in the original agreements need to be extended. In addition, the scope of work for the contract with IMG needs to be modified inasmuch as City staff requested IMG to make a preliminary presentation of the draft report on their evaluation work at a Council workshop. Attached isa letter ITom IMG to Will Kempton of SK&M outlining the proposed amendments to 1he scope of work (Attachment 4). Due to the delay in receiving the information from Wilbur Smith Associates, IMG needs to incorporate the new forecast into the financial and evaluation models, perform any necessary model restructuring, and prepare the final reports for presentation to the Council. Because of the duplicative evaluation work and attendance at additional Council meetings beyond the scope of the original contract, The first amendment to IMG's contac1 includes an additional $30,000 in compensation, including additional travel expenses (Attachment 5). 7 Page 3, Item- Meeting Date: 8/7/01 In addition, IMG proposes, and staff concurs, that because of the extensive delays related to the WSA forecast work, it is recommended that the Council authorize preliminary discussions between the City, IMG, SK&W, and CTV to update CTV's 1999 offer to the City to acquire the toll road franchise, to examine areas of possible initial agreement between the parties, and to begin the process that could establish a workable ITamework for the City's acquisition of the ITanchise. Such steps were originally envisioned to be taken after the final report was given to the Council, but are recommended to start as soon as possible. Such steps would not only substantially shorten the timeframe for action should the Council wish to proceed after the final report is presented to the Council, but would allow the City's team to obtain preliminary indications of the terms of a possible agreement. This portion of the contract amendment with IMG includes and additional $35,000 in compensation, including travel expenses, for a total additional compensation of $65,000. The new contract total would be increased ITom $118,000 to $183,000. FISCAL IMP ACT: The total additional cost for the First Amendment to the agreements is $65,000. The original overall estimate of the studies and services was $200,000. These amendments bring the total to $265,000. There is no additional cost for the time extension to Vollmer's contract. The funding source for this work is the Interim SR-125 DlF, fund number 592. In order to cover the additional cost of these amendments Council needs to appropriate $65,000 to CIP project number STM348 - SR-125 Franchise Review. Attachments: 1. Agreement with Vollmer Associates LLP 2. Agreement with InITastructure Managemenet Group, Inc. 3. June 12,2001 letter from Smith, Kempton & Watts 4. June 30 letter ITom Infrastructure Management Group, Inc to Will Kempton 5. First Amendment to Agreement with Vollmer Associates LLP 6. Firs1 Amendment to Agreement with InITastructure Management Group, Inc. CLS: STMJ48 J:\Engineer\AGENIJA\125agmnt-1 st.amendslJOC AT! ACHMENi I AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR TOLL ROAD OPERATIONAL REVIEW This agreement ("Agreement"), is entered into effective as of November 27, 2000 ("Effective Date") by and between the City of Chula Vista, a chartered municipal corporation ("City") and Vollmer Associates LLP ("Consultant") and is made with reference to the following facts: Recitals Whereas, the City of Chula Vista is considering the possibility of a public purchase of the State Route 125 South Toll Franchise, and I Whereas, the City Council has recently approved the selection of Consultant to conduct a "peer" review of information used by California Transportation Ventures, Inc. in making traffic and revenue projections for the SR 125 project, and Whereas, the City Council has authorized the City Manager to negotiate a contract with Consultant for this purpose, and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals, next page starts Obligatory Provisions) H:\HOMElENGINEERIADMIN\Voliemer Contractdoc Page 1 -- -... .--------"'-"----- OBLIGATORY PROVISIONS PAGES NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11, unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. H:IHOME\ENGINEERIADMINIVoliemer Contract.doc Page 2 E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H:\HOMElENGINEERIADMIN\Voliemer Contract.doc Page 3 7-& --,."-----' .-".u_u H. Security for Performance. (1) Performance Bond. In the event that Exhibit A. at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined SeNices and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term H:\HOMElENGINEERIADMIN\VoJlemer Contractdoc Page 4 ..-----...--....----- -~----- of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization 10 proceed, shall constitute a basis for the'justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12, All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3, Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4, Term, This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5, Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14, It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance, The parties have used their judgment to arrive at a reasonable amount to compensate for delay, Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from H:IHOMElENGINEERIAOMINIVoliemer ContracLdoc Page 5 7-8 -, -,-.----.-."'--' monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. H:IHOME\ENGINEERIADMINIVollemer Contract.doc Page 6 7 j'¿ , I .__0.--.-.-... E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the negligence or wilful misconduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall in- clude any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. H:\HOMElENGINEERIADMIN\Vollemer Contract.doc Page 7 - 7- -. -..-------- ,....--- 8, Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. (Intentionally Deleted) 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other H:\HOMElENGINEERIADMIN\Voliemer Contract.doc Page 8 country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. H:\HOMElENGINEERIADMIN\Vollemer Contract.doc Page 9 --.n~_'~'--' -----. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. H:\HOMElENGINEERIADMIN\Voliemer Contract.doc Page 10 -----------------.-- --- F. Governing lawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) H:\HOME\ENGINEERIADMINIVoliemer Contractdoc Page 11 SIGNATURE PAGE TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR "PEER" LEVEL REVIEW OF SR 125 SOUTH TOLL FACILITY IN WITNESS WHEREOF, as of the Effective Date, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: ~?'JZ~--~) David D. Rowlands, Jr., City M~nager Attest: -~~ ~~?;,~ Susan Bigelow, City Clerk Approved as to form: C' Vollmer Associates, LLP. By: a//~ 1Sig'háfure] / By: (::'e v-c I ¿ v. ¡J: e I ~ k" pc., t....r~ [Print Name and Title] , By: [Signature] By: [Print Name and Title] Exhibit List 10 Agreement (x) Exhibit A. H:\HOME\ENGINEERIADMIN\Voliemer ContracLdoc Page 12 --.----' .. -------- --- ------ EXHIBIT A TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP 1. Effective Date of Agreement: November 27, 2000 2. City-Related Entity: (x) City of Chula Vista, a municipal chartered corporation of the State of California ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Vollmer Associates LLP 5. Business Form of Consultant: ( ) Sole Proprietorship (x) Partnership ( ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: Vollmer Associates LLP 50 West 23rd Street New York, New York 10010-5205 Voice Phone: (212) 366-5600 Fax Phone: (212)366-5629 7. General Duties: Conduct a "peer" level review of traffic and revenue projections for the SR 125 toll facility H:\HOMElENGINEERIADMIN\Voliemer Contract.doc Page 13 . --- -- -----...--------" ------ -- .--.--.- -------- . 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1) Review of Prior Reports. Review all prior traffic and revenue material appropriate to the SR 125 project. 2) Kick-off Meetinqs. Based upon review of the prior reports, meet with the City's representatives to outline the critical steps that will be taken as part of the peer review and a specific schedule for performance. Evaluate the reports and provide any early indications of key issues and findings. 3) Field Review. Key staff members will ride the area road network, undertake travel time runs, as well as meet with City, County, MPO and State officials to secure independent traffic and socio-economic data. Undertake a review of land use and economic trends. 4) Meetinq with Wilbur Smith Associate. Having finished preliminary review, meet with WSA and provide a list of issues and concerns for their response. Coordinate with WSA the run of several sensitivities of the traffic model based upon City specification to test how it responds to varying assumptions. WSA (and/or CTV) shall be responsible for the cost of such runs. 5) Review WSA Response and Sensitivities. Review and evaluate the material received from WSA, using such information to provide final judgments as to the traffic and revenue projections. 6) Prepare a Letter Report summarizing findings. 7) Meet with City Representatives after providing a letter report to present and discuss the details of work and, at City's request, prepare a revised letter report incorporating City comments. B. Date for Commencement of Consultant SeNices: (x) Same as Effective Date of Agreement C. Dates or Time Limits for Delivery of Delivérables: Deliverable No.1: Letter report summarizing findings -- to be delivered by a date to be agreed upon by the parties (currently estimated to be January 27, 2000) such that the report can be utilized by IMG in a timely manner to prepare its Preliminary and Final Valuation Reports under separate contract with the City. H:\HOMElENGINEERIADMIN\Voliemer Contract.doc Page 14 "'-"- - ...-.------- . ----.,.- --- D. Date for completion of all Consultant services: February 23, 2001 9, Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Commercial General Liability Insurance: $1,000,000. 10. Materials Required to be Supplied by City to Consultant: Not applicable. 11. Compensation: A. (x) Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay Consultant for time expended, at the rates set forth below, and reasonable materials costs incurred, in a total amount not to exceed $50,000. Consultant shall bill City monthly. City's obligation to make payments hereunder at the time of Consultant's second monthly invoice shall not exceed $30,000, in the aggregate. Any amounts billed under the first two invoices in excess of $30,000 shall be carried over to, and be due and payable with, Consultant's third monthly invoice. City payments shall be due and payable within 15 days after receipt and approval of the submitted invoices. Rate Schedule Category of Employee of Consultant. Name Hourly Rate Principal $210.00 Project Manager! Coordinator $150.00 Senior Professional $140.00 Professional $120.00 Junior Professional $90.00 Technical Typist $75.00 Technician $70.00 Field Technician $60.00 OTHER Mini Computer Per Usage Minute $10.00 Engineering! Architectural Work Station Per Hour $15.00 CADD Work Station Per Hour $30.00 H:IHOMElENGINEERIADMINIVoliemer Contract.doc Page 15 0-7 -- --..-.'--""""" 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of seNices herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. 13. Contract Administrators: City: John Lippitt, Public Works Director, City of Chula Vista Will Kempton, Smith & Kempton, City Transportation Consultant Consultant: Gerald V. Nielsten, Partner 14. Liquidated Damages Rate: Not applicable. 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. 16. Consultant is Real Estate Broker and/or Salesman: Not applicable. 17. Permitted Subconsultants: None 18. Bill Processing: A. Consultant's billing to be submitted tor the following period of time: Monthly B Day of the Period for Submission of Consultant's Billing: By no later than the 15th of each month. C. City's Account Number: 2401348592 (STM 348) 19. Security for Performance: Not applicable. H:\HOME\ENGINEERIADMIN\VolJemer Contract.doc Page 16 ""'-----.---- -.. ...-.-"-'.'-- ..'---. ATTACHMENT ~ AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIAL-BASED APPRAISAL OF TOLL FRANCHISE This agreement ("Agreement"), is entered into effective as of November 27,2000 ("Effective Date") by and between the City of Chula Vista, a chartered municipal corporation ("City") and Infrastructure Management Group, Inc. ("Consultant") and is made with reference to the following facts: Recitals Whereas, the City of Chula Vista is considering the possibility of a public purchase of the State Route 125 South Toll Franchise, and Whereas, the City Council has recently approved the selection of Consultant to conduct a "financially" based appraisal of the Toll Franchise, and Whereas, the City Council has authorized the City Manager to negotiate a contract with Consultant for this purpose, and Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals, next page starts Obligatory Provisions) H:\HOME\ENGINEERIADMIN\IMG contract1.doc Page 1 --'~-~- OBLIGATORY PROVISIONS PAGES NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11, unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. H:IHOME\ENGINEERIADMINIIMG contract1.doc Page 2 ........-.-.....-...--......-....---'--' ." E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H:\HOME\ENGINEERIADMIN\IMG contract1.doc Page 3 T ... _. -..-..-.---...---' -.-.---" ------'-- -- H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security I n the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined SeNices and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall H:\HOME\ENGINEERIADMIN\IMG contract1.doc Page 4 ---.---.-..--- .. ..---..------------- permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 1O, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment H:\HOME\ENGINEERIADMIN\IMG contract1.doc Page 5 7 .- -..------- . -n _._-n.-'----'-'-'--- -"-- or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. H:\HOMElENGINEERIADMIN\IMG contract1-doc Page 6 -- --- --- --------'------ - .- ---------- D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the negligence or wilful misconduct of the Consultant, or any agent or employee, subcon- H:IHOMElENGINEERIADMINIIMG contract1.doc Page 7 7 ..--..- ..--.----.--.- ...-......-.......----.----- tractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall in- clude any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. (Intentionally Deleted) 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. if the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby H:\HOME\ENGINEER\ADMIN\IMG contract1.doc Page 8 - --...---------------- - -.-.. consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for Ule purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal H:IHOMElENGINEERIADMINIIMG contract1.doc Page 9 -. ---------. ",..., to reasonable attorney's fees and court costs incurred. The "prevailing party" shall.be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals islare licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. H:\HOMElENGINEERIADMIN\IMG contract1.doc Page 10 ..-...' ......- .....-...." - E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing lawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) H:\HOMElENGINEERIADMINIIMG contract1.doc Page 11 7 -. .~..-'~ .-. -~.__..--~' ..--.-...' SIGNATURE PAGE TO ACREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIALLY-BASED APPRAISAL OF TOLL FRANCHISE IN WITNESS WHEREOF, as of the Effective Date, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: /~,þ?~ 'David D. Rowlands, Jr., . y Manager Attest: ~~ Susan Bigelow, City lerk Approved as to form: Infrastructure Management Group, Inc. By: eft; 0. ~ [Signature] By: ~-h Vt 4 SJtJJe y, Y,r€s;de.r>+ 6Z~ [Signature] By: Sít <; i-/1- !11 %6 E, I/IC E f?rP>I{)EYvT [Print Name and Title] , Exhibit List to Agreement (x) Exhibit A. H:\HOMElENGINEER\ADMIN\IMG eDnlraell.doc Page 12 .. ,--""-"'~ .. . EXHIBIT A TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. 1. Effective Date of Agreement: November 27, 2000 2. City-Related Entity: (x) City of Chula Vista, a municipal chartered corporation of the State of California ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista. CA 91910 4. Consultant: Infrastructure Management Group, Inc. 5. Business Form of Consultant: ( ) Sale Proprietorship ( ) Partnership (x) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: Infrastructure Management Group, Inc. 4733 Bethesda Avenue, Suite 600 Bethesda, MD 20814 Voice Phone (301) 907-2900 Fax Phone (301) 907-2906 7. General Duties: Conduct financially based appraisal of the SR 125 South Toll Franchise. H:IHOME\ENGINEERIADMINIIMG contract1.doc Page 13 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Meet with the City and advisors to establish: a. key data requirements, b. a schedule for performance of interim tasks and, c. an acceptable valuation approach that includes City-approved valuation factors. 2. Begin additional com parables research and development of full valuation model. 3. Clarify with CTV their program, if appropriate and necessary. 4. Incorporate inputs from City, Vollmer Associates LLP, other City and advisors and IMG research. 5. Prepare and deliver draft evaluation report (detailed presentation format). 6. Carry out sensitivities and valuation model refinements. 7. Complete and deliver final valuation report (detailed presentation format). 8. Unless approved by the City in writing, all written reports and materials shall be prepared at the direction of and be submitted to the City Attorney and shall be kept strictly confidential. B. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: Draft Valuation Report -- To be delivered by no later than the date agreed upon by the parties as the date sufficient to allow full City review and comment and timely preparation and delivery of the final report. Deliverable No.2: Final Valuation Report -- To be delivered by no later than February 23, 2001. D. Date for completion of all Consultant services: February 23, 2001 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Commercial General Liability Insurance: $1,000,000. H:\HOMElENGINEERIADMIN\IMG contract1.doc Page 14 10. Materials Required to be Supplied by City to Consultant: Not applicable. 11. Compensation: A. (x) Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay Consultant for time expended, at the rates set forth below, and reasonable materials costs incurred, in a total amount not to exceed $118,000. City shall pay Consultant in three installments. The first two installments shall be paid based upon invoices submitted by Consultant for time expended at the rates set forth below and reasonable materials costs incurred. The maximum amount owed by the City for the first installment shall not exceed $40,000; the maximum amount owed for the first two installments, in the aggregate, shall not exceed $80,000. The first installment invoice shall be submitted on December 15th and shall cover the period commencing with the Effective Date and ending December 14,2000. The second installment invoice shall be submitted on January 15, 2001 and shall cover the period commencing with December 15, 2000 and ending January 14, 2001. Amounts billed under an invoice that are not immediately payable shall be carried over to and be due and payable with, Consultant's next invoice subject to the then applicable maximum compensation amount. City payments shall be due and payable within 15 days after receipt and approval of the submitted invoices. The final invoice shall be submitted with Consultant's submittal of the Final Valuation Report and shall be due and payable within 15 days after City receipt and approval of the submitted invoice and report. Rate Schedule Category of Employee of Consultant Name Hourly Rate Director $300.00 Project Manager/ Senior Staff $210.00 - $240.00 Senior Financial Analyst $150.00 Staff Analyst $100.00 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. H:IHOMElENGINEERIADMINIIMG contracl1.doc Page 15 -.- -..----...-.----.--.-.-----... 13. Contract Administrators: City: John Lippitt, Public Works Director, City of Chula Vista Will Kempton, Smith & Kempton, City Transportation Consultant Consultant: Steve Steckler, President 14. Liquidated Damages Rate: Not applicable 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. 16. Consultant is Real Estate Broker and/or Salesman Not applicable. 17. Permitted Subconsultants: None 18. Bill Processing: A. Consultant's billing to be submitted for the following period of time: (1) Through December 15, 2000 (2) Through January 15, 2001 (3) Through February 23, 2001 (or date for completion of services) B. Day of the Period for Submission of Consultant's Billing: (1) December 15, 2000 (2) January 15, 2001 (3) With Final Valuation C. City's Account Number: 2401348592 (STM 348) H:IHOMElENGINEERIADMINIIMG contract1.doc Page 16 ~ .-- . --. .--- ..... ..----..------- ATTACHMENT --2- Smith, Kempto n & Watts Consulting and Governmenral Relations June 12,2001 - ;:7q;~;6~\ c" ì ($1 !'VI 0, Mr. Dave Rowlands h,,! ^' / City Manager .~~fI City of Chula Vista >~~~ 276 Fourth Avenue Chula Vista. CA 91910 Dear Dave: You asked me [0 provide a brief update on the status of the SR 125 peer review and financial appraisal. Your request is based on the fact that the schedule for the development of revenue and traffic projections for the SR 125 corridor continues to be substantially delayed by the actions of CTC. Moreover, the City can't proceed to analyze the relevant data until they are provided [0 our consultants by California Transportation Ventures, Inc. (CTV). As you know, CTV recenrly requested additional analysis of land use data generated by SANDAG due to questions regarding future development in the vicinity of the SR 125 project. Wilbur, Smith Associates, the firm performing this analysis, has indicated that they likely will not complete their work until the end of July. Our consultants, Vollmer and Associates, will need to have these revised numbers to complete their peer review of this data. In addition, the validity of the financial appraisal commissioned by the City is also dependent on these updated figures. As a result of this delay, which means that we will not be able to provide a final report [0 the Council until September, we are recommending that a workshop be held for the Council. The purpose of this workshop will be to bring the Council up to date on the status of the overall effort to determi]le the viability of a public buyout of the SR 125 franchise, and to revisit the report being prepared by the Infrastructure Management Group (IMG). This will also allow an opportunity for the Council to discuss this issue in a public meeting, and [0 publicly raise any issues or concerns the Council Members may have. Finally, we will present an updated schedule for this process as well as a summary of next steps should the Council desire to proceed after reviewing the final report. We suggest that the workshop meeting be held on June 28, 2001, at 4:00 p.m. IMG staff will be present [0 answer questions, and we will use the opportunity to meet again with 980 Ninth Streer, Suire 1560 . Sacramento, CA 95814 Telephone (916) 446-5508 . FAX (916) 446-1499 -. ----. -.----- ---- ------. Mr. Dave Rowlands 06112/01 Page 2 of 2 City staff and with representatives of CTV. Our consultants will fly to San Diego on the 21th of June and will depart the day following the workshop. If I can be of any further assistance or if you need more detailed information, please contact me immediately. lJJJ ~~ WILL KEMPTON c.. George Krempl, City of Chula Vi~ John Lippitt, City of Chula Vista Sasha Page, IMG Joe Sobleskie, Vollmer & Associates "7-7,7 - .." . -----.---.-.--. . SM ITH & KEMPTON 927 P02 JUL 24 '01 14,S4 III Infra structur e Þ ;ï ACHMENT if- II Management Group, Inc. -.-,- June 20, 2001 Mr. Will Kempton Smith, Kempton & Watts 980 Ninth SI., Suite ]560 Sacramento, CA 95814 Dear Mr. Kempton: This letter is to summarize tbe revised project schedule and activities discussed in our conference call with you and Dave Rowlands in May, and again with you and Mark Watts.on June 15th. We also provide a SUrrul1ary of the budgetary impacts related to the project extension and additiomd staff effort and travel committed beyond the original scope, The revised activity and schedule items were as follows: 1. Based on those discussions, it was agreed that the lMG team would take part in a workshop of the Council on June 28th at wbich we would provide a status report on our evaluation work, explain the reasonS for the delays encountered, present the draft report, explain its rationale, and outline next steps, We plan to be available in the afternoon of June 27'" and all day on the 28" for other meetings and discussions, 2. Based on the latest projected schedule from WHbur Smith & Associates (WSA) specifying a mid.to.late July completion of their traffic and revenue work, it wa..' agreed that a finallMG report and presentation would be scheduled in September, This would provide time for the Vollmer review of WSA forecastS, after which lMG would incorporate the new forecast into OUr financial and evaluation models, perform any necessary model restructuring, and prepare our final repon and presentation for the CounciL 3. Because of the extensive delays related to the WSA forecast work, we discussed our mutual concern that the opportunity and enthusiasm for Chula Vista involvement in the SR.125 project could easily, if not certainly, diminish substantially unless interim steps were taken to funher prepare and validate franchise acquisition options available to the Council. Therefore, we recommend that the Council atlthorize Dreliminarv discussions between !MG, SK&W, and CTV to update crv's 1999 offerto the C;ty, to examine areas of probable initial agreement betw=n the parties, and to begin the process that could establish a workable framework for Cit)' acquisition of the franchise. Such stepS would not on])' substantially shorten the tjmeframe for action should the Council wish to proceed after our final report in September, but would allow us to obtain preliminary indications of the terms of a possible agreement. Should crv obtain their remaining environmental perCTÛts during this period, as expected, then these preliminary discussions would be even more fruitful because they would make it pos.<ible to proceed immediately with possible next steps, should the Council decide to do so, IMG's Agreement for the financial appraisal contemplated three working meetings with the City in Chula Vista and included three trips for at least two IMG project sUiff We agreed to prepare one draft and one final valuation report. Comp1etion of all services was expected by February 23, 2001 4733 8cÚIcSda Avenue S<I!<c 600 Be<hr<ð3, MD 20814 (3D!) 9O7-29<JO FAX (301) 907-2906 - -..--- -' -,_. ._-_.._-"-""---'--- SMITH 8. KEMPTON 927 P03 IUL 24 '131 14055 Letter to Mr. Kempton 2 June 20, 2001 Because WSA and CTV have progressively delayed the completion of tn1ffic and revenue forecasts, it has been necessary and mutually desirable to extend the period ofperfonnance and to provide interim findings informally to individual City Council members and staff on several additional occasions not initially contemplated. We have already discussed our prelinùnary findings on three separate occasions, in January, March, and April. two of which involved additional travel to Chula Vista. In every case, IMG has involved three senior project staff (not two) by mut1Jal agreement. Each of these occasions has required. incorporation ofthe most recent forecasts and other information on the project, and repeated adjustments to the IMG model. essentially making a series of updated draft reports. IMG agreed 1:0 provide incremental services for our April visit for a flat sum of $15,000, inclusive oUrave/. Our June 28'h visit (task #1 above) was initially planned as our final presentation, then later convened to a workshop with the Council. This requires further updates and reruns of our financial model not contemplated under our current budget and uses the IIip resources originally planned for the "final" presentation. The final ptesentation in September (task #2 above) will require IMG to again incorporate another WSA forecast and make another trip to Chura Vista. The preliminary discussion efforts proposed (under task #3 above) are completely new to the scope and will be provided for a flat sum of $20,000. This effort would indude the following steps in order to make productive use of the time gap caused by the delay in obtaining traffic forecasts from WSA and CTV: . Preparation and conference calls to establish format and ground rules for preBminary discussions with crv (in July) . Two-days on-site in Chu1a Vista for preBmínary discussions, including fu"her discussions with Chula Vista staff and Council as needed (in July or August) . Obtain clarifications from CTV and City staff and advise OD probable frameworks that could lead to a speedy transfer of the franchise, should the Counci11ater d"cide to moveín that direction (in August) In order cany out all these remaining activities, continue and complete the repeated adjustments and reruns of our financial model. and undertake the preliminary discussions and framework building with CTV, additional budget resoul'ces need to be provided in the total amount of $65,000, incJusive of our April :visit, the additional model runs, the preliminary discussions with CTV, and other additional efforts. This amount is quoted as a fixed price and will cover all the activities and travel nece.ssat)' to carry OUt thi> remaining tasks discussed above. Of course, our agreement also needs to be extended to September 3D, an addition of mori> than seven months to the original schedule agreed to. I trust that this letter reflects your understanding of our discussions and additional tasks going forward. We look forward to continuing to develop the franchise evaluation and assist in framing this very promising opportunity for the City of Chu[aYista. SUou~'-;rPf- &::~ SashaN. Page Vice President Chief Economist III I~ -7 --~. ----. - . .._- --- ---~- .-' ATTACHMENT £~ FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIAL-BASED APPRAISAL OF TOLL FRANCHISE This first amendment to the agreement for Financial-based appraisal of toll franchise is entered into effective as of August 7, 2001 by and between the City of Chula Vista, (CITY) a municipal chartered corporation of the State of California, and Infrastructure Management Group, Inc. (CONSULTANT). RECITALS WHEREAS, the CITY has approved an Agreement with CONSULTANT dated November 27,2000 and approved by Resolution 2000-404 (Agreement); and WHEREAS, CONSULTANT cannot meet the Date for completion of all Consultant services due to circumstances beyond CONSULTANT's control; and WHEREAS, CONSULTANT is required to do additional work not anticipated in the original Agreement; and WHEREAS, both CITY and CONSULTANT desire to amend the Agreement to revise the Date for Completion of all consultant services and to revise the scope of work to include additional items requested by CITY. WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; NOW, THEREFORE, the agreement is hereby amended as follows: I. Amend Exhibit A, Section SA, by expanding the Detailed Scope of Work as set forth in the original agreement, as follows: A. Detailed Scope of Work: 9. Attend up to two additional City Council meetings/workshops as directed by the City's Contract Administrator to discuss valuation approach, preliminary valuation and final evaluation report. J :\EngineerIADM I N\ 1 st-exten.1 MG-contractdoc Page 1 --.. ...--....---"'------""'" 10. Revise preliminary sensitivities and valuation model refinements using updated draft evaluation report based on updated information. (Deliverable No.1) 11. Upon request of the City Contract Administrator, initiate and participate in preliminary discussions with City, other City advisors and CTV to review and update CTV's 1999 offer to the City, to examine and advise City regarding areas of probable initial agreement between the parties and to begin the process that could establish a workable framework for City acquisition of CTV's toll road franchise. II. Exhibit A, Section 8C, is amended to read as follows: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.2: Final Valuation Report -- To be delivered by no later than November 6, 2001 III. Exhibit A, Section 8D, is hereby amended to read as follows: D. Date for completion of all Consultant services: November 6, 2001 IV. Exhibit A, Section 11A. the first two paragraphs shall be amended to read as follows: For performance of all of the Defined Services by Consultant as herein required, City shall pay Consultant for time expended, at the rates set forth below, and reasonable materials costs incurred, in a total amount not to exceed $148,000 for tasks 1 through 10 inclusive and in a total amount not to exceed $35,000, including travel expenses, for task 11. Consultant shall bill City no more than once a month. Installments for Tasks 1 through 10 shall be paid based on invoices submitted by Consultant for time expended at the rates set forth below and reasonable materials costs incurred. The maximum amount invoiced by the Consultant for Tasks 1 through 10 shall not exceed $133,000 prior to completion of Deliverable No.2. Any amounts billed for Tasks 1 through 10 in excess of $133,000 prior to completion of Deliverable No.2 shall be carried over to, and be due and payable with, Consultant's final invoice for those tasks. City payments shall be due and payable within 15 days after receipt and approval of the submitted invoices. The final invoice for tasks 1 through 10 shall be submitted with Consultant's submittal of the Final Valuation Report and shall be due and payable within 15 days after City receipt and approval of the submitted invoice and report. Rate.§chedule (Unchanged) J:\EngineerIADMIN\ 1 st.exten-iMG-Gontractdoc Page 2 _.. -...-....--- ---------- 7...1/1____----.-- V. Except as modified herein, all other provisions of the Agreement approved by Resolution No. 2000-403 on November 7, 2000 shall remain in full force and effect. END OF FIRST AMENDMENT SIGNATURE PAGE FOLLOWS J :\EngineerIADMI N\ 1 st-exten-IMG-contract.doc Page 3 -. -,------ '" .__. ,-,..- SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIALLY-BASED APPRAISAL OF TOLL FRANCHISE IN WITNESS WHEREOF, as of the Effective Date, City and Consultant have executed this First Amendment thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: David D. Rowlands, Jr., City Manager Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Infrastructure Management Group, Inc. By: [Signature] By: [Print Name and Title] By: [Signature] By: [Print Name and Title] J :\EngineerIAOM I N\ 1 st-exten-IMG-contractdoc Page 4 __0- --0__--'0 ..~ o. ___0______- FIRST AMENDMENT ." 'tTACHMENT ~ TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR TOLL ROAD OPERATIONAL REVIEW This first amendmentto the agreementfortoll road operational review is entered into as of August 7,2001, by and between the City of Chula Vista (CITY) a municipal chartered corporation of the State of California, and Vollmer Associates LLP (CONSULTANT). RECITALS: WHEREAS, the CITY has approved an Agreement with CONSULTANT dated November 27,2000 and approved by Resolution 2000-403 (Agreement); and WHEREAS, CONSULTANT cannot meet the Date for completion of all Consultant services due to circumstances beyond CONSULTANT's control; and WHEREAS, both CITY and CONSULTANT desire to amend the Agreement to revise the Date for Completion of all consultant services. NOW, THEREFORE, the Agreement is hereby amended as follows: I. Exhibit A, Section 8D, is hereby amended to read as follows: D. Date for completion of all Consultant services: November 6, 2001 II. Except as modified herein, all other provisions of the Agreement approved by Resolution No. 2000-403 on November 7, 2000 shall remain in full force and effect. END OF FIRST AMENDMENT SIGNATURE PAGE FOLLOWS J :\EngineerIADMIN\ 1 sl -exlen. vollmer -contract.DOC Page 1 "7 -'k _....~.._._----_..-.__. SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR TOLL ROAD OPERATIONAL REVIEW In witness whereof, as of the Effective Date, City and Consultant have executed this First Amendment WHEREAS thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: David D. Rowlands, Jr., City Manager Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Vollmer Associates, LLP. By: [Signature] By: [Print Name and Title] By: [Signature] By: [Print Name and Title] J: IEngineerlAD MINI 1 sl -exten- vollmer -contraclDOC Page 2 ~ Lf:; ....-- ..~~~--" RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FIRST AMENDMENT TO THE AGREEMENT WITH VOLLMER ASSOCIATES LLP FOR A TOLL ROAD OPERATIONAL REVIEW FOR THE SR-125 PROJECT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT WHEREAS, on November 7, 2000, the City Council authorized staffto enter into an agreement with Vollmer Associates LLP to conduct a "peer" review of infonnation used by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projections for the SR-125 Toll Road Facility; and WHEREAS, the agreement, as originally approved, anticipated that completion of certain items would require input from third parties; and WHEREAS, due to circumstances beyond the consultants and City's control, these items have not been made available by those parties and an arnendment to the agreement needs to be approved. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the First Amendment to the Agreement with Vollmer Associates LLP for a toll road operational review for the SR-125 Project, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Manager of the City of Chula Vista is hereby authorized to execute said Amendment on behalf ofthe City ofChula Vista. Presented by Approved as to fonn by ~~ John P. Lippitt Director of Public Works City Attorney bottomcY\Ieso\l" Amendment Vollmer --.--------- ------.------------------------.-- -. FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR TOLL ROAD OPERATIONAL REVIEW This first amendment to the agreementfor toll road operational review is entered into as of August 7.2001, by and between the City ofChula Vista (CITY) a municipal chartered corporation of the State of California. and Vollmer Associates LLP (CONSULTANT). RECITALS: WHEREAS. the CITY has approved an Agreement with CONSULTANT dated November 27.2000 and approved by Resolution 2000-403 (Agreement); and WHEREAS. CONSULTANT cannot meet the Date for completion of all Consultant services due to circumstances beyond CONSULTANTs control; and WHEREAS, both CITY and CONSULTANT desire to amend the Agreement to revise the Date for Completion of all consultant services. NOW. THEREFORE, the Agreement is hereby amended as follows: I. Exhibit A, Seclion 80, is hereby amended to read as follows: D. Date for completion of all Consultant services: November 6, 2001 II. Except as modified herein. all other provisions of the Agreement approved by Resolution No. 2000-403 on November 7. 2000 shall remain in full force and effect. END OF FIRST AMENDMENT SIGNATURE PAGE FOLLOWS J :IEngineerIADMlNl! st-exten-vollmer-eontractDOC Page 1 -" -.---.....---.--.....----- SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND VOLLMER ASSOCIATES LLP FOR TOLL ROAD OPERATIONAL REVIEW In witness whereof, as of the Effective Date, City and Consultant have executed this First Amendment WHEREAS thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: David D. Rowlands, Jr., City Manager Attest: Susan Bigelow, City Clerk Approved as to form: {<~~)1\ Ctð-tø John. a ny, City Attor Vollmer Associates, LLP. BY~~ "1' ture] By: G<",.\¿ \I. ¡J;e\J'¡""" . P---I..-t"r [Print Name and Title] I By: [Signature] By: [Print Name and Title] J:\Engineer\ADMIN\! st-exten-vollmer-contractDOC Page 2 . .._. 7tj> ._--- RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FIRST AMENDMENT TO THE AGREEMENT WITH INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR A FINANCIALLY-BASED APPRAISAL OF THE SR-125 FRANCHISE, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AMENDMENT WHEREAS, on November 7, 2000, the City Council authorized staffto enter into an agreement with Infrastructure Management Group, Inc. to conduct a financially based appraisal of the SR-125 Franchise; and WHEREAS, the agreement, as originally approved, anticipated that completion of certain items would require input from third parties; and WHEREAS, due to circumstances beyond the consultants and City's control, these items have not been made available by those parties and an amendment to the agreement needs to be approved. NOW, THEREFORE, BE IT RESOL VED that the City Council of the City of Chula Vista does hereby approve the First Amendment to the Agreement with Infrastructure Management Group, Inc. for a financially-based appraisal of the SR- 125 Franchise, a copy of which shall be kept on file in the office ofthe City Clerk. BE IT FURTHER RESOLVED that the City Manager of the City of Chula Vista is hereby authorized to execute said Amendment on behalf of the City ofChula Vista. Presented by Approved as to fonn by ~(~ John P. Lippitt John M. Kaheny Director of Public Works City Attorney Jlattomeylce>üll" Amendment Infiastruetur' Management Gmup I -. -..------.,-..----- FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIAL-BASED APPRAISAL OF TOLL FRANCHISE This first amendment to the agreement for Financial-based appraisal of toll franchise is entered into effective as of August 7, 2001 by and between the City of Chula Vista, (CITY) a municipal chartered corporation of the State of California, and Infrastructure Management Group, Inc. (CONSULTANT). RECITALS WHEREAS, the CITY has approved an Agreement with CONSULTANT dated November 27,2000 and approved by Resolution 2000-404 (Agreement); and WHEREAS, CONSULTANT cannot meet the Date for completion of all Consultant services due to circumstances beyond CONSULTANT's control; and WHEREAS, CONSULTANT is required to do additional work not anticipated in the original Agreement; and WHEREAS, both CITY and CONSULTANT desire to amend the Agreement to revise the Date for Completion of all consultant services and to revise the scope of work to include additional items requested by CITY. WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; NOW, THEREFORE, the agreement is hereby amended as follows: I. Amend Exhibit A, Section 8A,.by expanding the Detailed Scope of Work as set forth in the original agreement, as follows: A. Detailed Scope of Work: 9. Attend up to two additional City Council meetings/workshops as directed by the City's Contract Administrator to discuss valuation approach, preliminary valuation and final evaluation report. J:\EngineerIADMIN\ 1 st-exten.IMG-contract.doc Page 1 .-----' ---- _.. .....-.-...,..-..-. .-. 10. Revise preliminary sensitivities and valuation model refinements using updated draft evaluation report based on updated information. (Deliverable No.1) 11. Upon request of the City Contract Administrator, initiate and participate in preliminary discussions with City, other City advisors and CTV to review and update CTV's 1999 offer to the City, to examine and advise City regarding areas of probable initial agreement between the parties and to begin the process that could establish a workable framework for City acquisition of CTV's toll road franchise. II. Exhibit À, Section SC, is amended to read as follows: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No.2: Final Valuation Report -- To be delivered by no later than November 6, 2001 III. Exhibit A, Section SO, is hereby amended to read as follows: D. Date for completion of all Consultant services: November 6, 2001 IV. Exhibit A, Section 11 A, the first two paragraphs shall be amended to read as follows: For performance of all of the Defined Services by Consultant as herein required, City shall pay Consultant for time expended, at the rates set forth below, and reasonable materials costs incurred, in a total amount not to exceed $148,000 for tasks 1 through 10 inclusive and in a total amount not to exceed $35,000, including travel expenses, for task 11. Consultant shall bill City no more than once a month. Installments for Tasks 1 through 10 shall be paid based on invoices submitted by Consultant for time expended at the rates set forth below and reasonable materials costs incurred. The maximum amount invoiced by the Consultant for Tasks 1 through 10 shall not exceed $133,00O.prior to completion of Deliverable No.2. Any amounts billed for Tasks 1 through 10 in excess of $133,000 prior to completion of Deliverable No.2 shall be carried over to, and be due and payable with, Consultant's final invoice for those tasks. City payments shall be due and payable within 15 days after receipt and approval of the submitted invoices. The final invoice for tasks 1 through 10 shall be submitted with Consultant's submittal of the Final Valuation Report and shall be due and payable within 15 days after City receipt and approval of the submitted invoice and report. Rate SchedJdlli (Unchanged) J:\EngineerIADMIN\ 1 st-exten-IMG-contractdoc Page 2 -..-...-.-.-,----..,..- . - . V. Except as modified herein, all other provisions of the Agreement approved by Resolution No. 2000-403 on November 7,2000 shall remain in full force and effect. END OF FIRST AMENDMENT SIGNATURE PAGE FOLLOWS J :\EngineerIADM I N\ 1 st-exten-IMG-contractdoc Page 3 7trLf SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND INFRASTRUCTURE MANAGEMENT GROUP, INC. FOR FINANCIALLY-BASED APPRAISAL OF TOLL FRANCHISE IN WITNESS WHEREOF, as of the Effective Date, City and Consultant have executed this First Amendment thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: David D. Rowlands, Jr., City Manager Attest: Susan Bigelow, City Clerk Approved as to form: (fw c ÛìlI-1. J~aheny, City Atto~y Infrastructure Management Group, Inc. BY:~~ [Signa] By: J}{y~ A. S; led/". f/mdulf [Print Name and Title] By: [Signature] By: [Print Name and Title] J:\EngineerIADMIN\ 1 st-exten-IMG-contract.doc Page 4 /-:;- - ~ RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $65,000 FROM THE INTERIM SR-125 DIF FUND TO CIP PROJECT, SR-125 FRANCHISE REVIEW, STM- 348 WHEREAS, on November 7, 2000, the City Council authorized staffto enter into an agreement with Vollmer Associates LLP to conduct a "peer" review of infonnation usèd by California Transportation Ventures, Inc. (CTV) in making traffic and revenue projections for the SR-125 Toll Road Facility; and WHEREAS, further Council authorized staff to enter into an agreement with Infrastructure Management Group, Inc. to conduct a financially based appraisal ofthe SR-125 Franchise; and WHEREAS, due to circumstances beyond the .consultants and City's control, these items have not been made available by those parties and amendments to the agreements need to be approved; and WHEREAS, the total additional costs for the amendments to the agreements is $65,000; and WHEREAS, the funding source for this work is the Interim SR -125 DIF Fund 592. NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Chula Vista does hereby appropriate $65,000 from the Interim SR-125 DIF Fund to crp Project, SR-125 Franchise Review, STM-348. Presented by Approved as to fonn by ~c~ John P. Lippitt John M. Kaheny Director of Public Works City Attorney .I1"'tomcylm,oll" Am",dmcnt Appmpha"on, 7(; -/ --. -. ..-.-..,...---.. , -----.. COUNCIL AGENDA STATEMENT Item b Meeting Date 08/07/01 ITEM TITLE: Resolution Authorizing the Mayor to execute agreements with the San Diego Unified Port District for receipt of financial assistance in the amount of $26,000 for Harbor Days, $22,500 for the "Summer Legacy" concert and $15,000 for Taste of the Arts by th~ SUBMITTED BY: Deputy City Manager David Palm' REVIEWED BY: &l<-- 4/Sths Vote: Yes No..L City Manager ~ \7 ('- - This spring, the City submitted a financial assistance request to the San Diego Unified Port District (Port) for partial funding ofthe Chula Vista Harbor Days & Tall Ship Festival, the "Summer Legacy" concert and Taste of the Arts by the Bay. The Board of Port Commissioners approved funding of $63,500 at a meeting in June 200 I, and the Port requires that the City enter into formal agreements, which stipulate conditions and City requirements for receipt of the approved funding. This item executes those agreements. RECOMMENDATION: That Council adopt the resolution authorizing the Mayor to execute three agreements with the San Diego Unified Port District for receipt of financial assistance. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: The City submitted financial assistance requests to the San Diego Unified Port District for co- sponsorship of the Harbor Days & Tall Ship Festival, "Summer Legacy" concert (previously referred to as "Summer Pops"), and Taste of the Arts by the Bay. Port District funding greatly enhances the scope, quality, and diversity of these events, and benefits the City and its populace by providing attractive special events that attract large numbers of people to the Bayfront. The Board of Port Commissioners approved the funding for all three events (for a total of$63,500) at a meeting in June 2001. Following approval, the Port District requires the City to enter into formal agreements which stipulate certain conditions and City requirements for receipt ofthe approved funding (Attachments "A-C"). The Port agreements include a General Terms and Conditions section, which contains Hold Harmless language and insurance requirements. This agreement process was instituted by the Port District in 1993, to ensure that all recipients of Port District funding were using funds for the purposes indicated on the request for funding, and to ensure that the Port District was given adequate recognition in advertising and promotions for events that are co-sponsored and partially or completely funded by the Port District. The City has entered into similar agreements in the past for Port District funding. Page 2, Item- Meeting Date 08/07/01 The City had previously executed a contract with the Chula Vista Chamber of Commerce to produce Harbor Days (Attachment "D"). The contract stipulates funding allocated by the City during the FY 01-02 budget process as well as Port District funding. It was executed with the Chamber to allow the Chamber to proceed with the planning of Harbor Days and was finalized after receiving notification that the Port District Board had approved $26,000 in funding. The Port District has reduced its financial grant program for the past several years. The Port District reductions have been applied to member cities as well as outside agencies requesting funds. These reductions have decreased financial support of Chula Vista events significantly. For example, in FY94-95, the Port District helped in funding five City events for a total of$99,500. This year's total funding is $63,500 for three events, which is an increase of $3,000 over FYOO-OI. FISCAL IMP ACT: The Port has approved $26,000 of financial assistance for Harbor Days, which supplements approved City funds of$12,000 for this event. In addition, the City provides a number of services and support for an estimated total in-kind contribution of more than $21,000. The Port also approved financial assistance of$22,500 for the Summer Legacy concert, to be held on August 26, and $15,000 for Taste of the Arts, which will be held in the Spring 2002. These Port funds of $63,500 were appropriated as part of the adopted FY200 1-02 City operating budget. Attachments: "A-C" - Port Agreements - Harbor Days and Tall Ship Festival, Summer Legacy, Taste of the Arts "D" - City Contract with Chula Vista Chamber of Commerce - Harbor Days Festival C:\My Documents\CultArts\PortagmtsharbordaysetalOl-O2.doc -..-..- .----------- ----'------'----.----- . RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE AGREEMENTS WITH THE SAN DIEGO UNIFIED PORT DISTRICT FOR RECEIPT OF FINANCIAL ASSISTANCE IN THE AMOUNT OF $26,000 FOR HARBOR DAYS, $22,500 FOR THE "SUMMER LEGACY" CONCERT AND $15,000 FOR THE TASTE OF THE ARTS BY THE BAY WHEREAS, this Spring, the City submitted a financial assistance request to the San Diego Unified Port District (Port) for partial funding of the Chula Visa Harbor Days & Tall Ship Festival, the "Summer Legacy" concert and Taste of the Arts by the Bay; and WHEREAS, the Board of Port Commissioners approved funding of $63,500 at a meeting in June 2001; and WHEREAS, the Port requires that the city enter into formal agreements, which stipulate conditions and City requirements for receipt of the approved funding. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve agreements with the San Diego Unified Port District for receipt of financial assistance in the amount of $26,000 for Harbor Days, $22,500 for the "Summer Legacy" concert and $15,000 for Taste of the Arts by the Bay, copies 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 agreements on behalf of the City of Chula Vista. Presented by Approved as to form by /¿~ David Palmer Jo / . Kaheny Deputy City Manager Attorney J, \Attorney\Reso \Port Financial Assistance .--------, -. _. .--.-----____._n. ATTACHMENT A Port of San Diego and Lindbergh Field Air Terminal (619) 686-6200' PO. Box 120488, San Diego, California 92112-0488 www.portofsandiego.org June 29, 2001 Dear Financial Assistance Recipient: Congratulations! Financial assistance in the amount of $26,000 has been approved for your program - Harbor Days and Tall Ship Festival. A Port representative will be contacting you soon to discuss the attached documents' 1. A Q&A format explaining the terms and conditions that must be met in order to receive the funding. 2 Two copies of a contract. Please sign and return both copies with an Exhibit A attached to Sheila Abrenica, Marketing and Communications. An Exhibit A IS a detailed outline of the services you intend to provide for the Port in return for your financial assistance. Please see the enclosed example. We look forward to working with you. Sincerely, ¡(% (J~ Rita A. Vandergaw Director, Marketing & Communications enc. --'-'.---'. .. .--.'---'.'- --..---..-----.------ AGREEMENT This agreement is made by the SAN DIEGO UNIFIED PORT DISTRICT, a public corporation, herein called "District" and the City of Chula Vista, a municipal corporation, herein called "Contractor." RECITALS 1. Contractor has a program known as "Harbor Days & Tall Ships Festival" ("Program"). 2. The Program to be accomplished by Contractor contributes to a balance of District navigational, commercial, fisheries, recreational and promotional programs designed to enhance the well-being of San Diego Bay tidelands. 3. The Program to be accomplished by Contractor is of such nature that the interests of District are better served by an agreement with Contractor than by the performance of such a program by District. THE PARTIES AGREE: In consideration of the recitals and the mutual obligations of the parties as herein expressed, District and Contractor agree as follows: 1. ProGram: Contractor shall conduct those program activities budgeted and contained in Exhibit A, attached hereto and incorporated herein by reference as a part of this agreement. Each specific program activity shall be subject to prior approval of the District pursuant to the terms of Board of Port Commissioners Policy Number 025. 1 f?-5 -... - _.. .._--.._'------- "-----"---------'--------' 2. Contract Administrator: The Marketing & Public Relations Department of the District is designated as the Contract Administrator of this agreement and shall receive and process all reports and requests for payment. All correspondence shall be sent to the following address: San Diego Unified Port District Attn: Financial Assistance Program Sheila Abrenica Post Office Box 120488 San Diego, CA 92112-0488 3. Term of Aqreement: The term of this agreement shall be from July 1, 2001, through June 30, 2002. 4. General Terms and Conditions: The General Terms and Conditions attached hereto are incorporated by reference as though fully set forth herein and by this reference are made part of this agreement. 5. Pavment: District shall pay Contractor a sum not to exceed twenty six thousand dollars ($26,000.001 plus "In Kind" support to be used to perform the Program activities shown in Exhibit A, subject to obtaining prior approval from the District as provided in Section 1, above. a. No payment shall be made by District if any report (see Sections 1, 5, 8 and 9) required by this and previous agreements is not on file at the time payment is due. 2 -" _. ---._- -..-- -.......----....-.... b. Payment shall be solely for reimbursement of expenses already paid by Contractor. Requests for reimbursement shall be submitted no more often than monthly and shall provide proof of both incurrence and payment [See Section 5.c.(2)]' Expenses must be incurred within the term of this agreement. c. Payments shall be made upon written request to the Contract Administrator. Each request shall consist of: (11 A formal request for reimbursement in the form of a letter to the Contract Administrator. Only expenditures for program activities for which prior approval from the District was obtained will be reimbursed, provided, however, the Contract Administrator may in exceptional circumstances reimburse unforeseen expenses relating to the funded objectives of the Contractor. (2) Proof that the expenses were both incurred and paid. Proof of incurrence and payment is defined in General Terms and Conditions attached hereto. Expenses must be incurred within the term of this agreement. d. Final requests for payment shall be submitted within Sixty (60) days after the end of the term of this agreement. 3 'ðr7 e. Payments shall not be made by District unless, and until, Contractor has provided to Contract Administrator a plan, acceptable to said Administrator, of appropriate public recognition or credit for the financial assistance as described herein. f. No portion of District funds under this agreement shall be used for the purchase of awards, trophies, prizes, gifts, uniforms, capital outlay or equipment or for the buildup of reserves. 6. Excess Costs: District shall not be held accountable or liable for any monetary losses incurred as a result of conducting said program. It is agreed that District's monetary contribution is limited to that stated herein and that District shall not be responsible for cash costs or support services. 7. Limits of District Responsibilitv: It is expressly understood and agreed that this agreement constitutes the entire agreement between Contractor and District and supersedes all prior negotiations. In no event shall Contractor be entitled to any compensation, benefits, reimbursements or ancillary services other than as expressly provided in this agreement. No modifications or amendments of this agreement shall be valid unless duly authorized, reduced to writing and signed by the parties hereto. 4 --- 8. Reportinq Requirements: a. Contractor shall submit a Quarterly Performance Report, if applicable, which shall provide a quantitative indicator of the extent to which the Program activities contained in Exhibit A have been met for the immediately preceding quarter and fiscal year to date. This report form shall be provided by the Contract Administrator. Quarterly rprrrl-~ qhall be accompanied by copies of publicity and advertising material evidencing credit to the District for its financial support. c. Contractor shall inform Contract Administrator in writing upon the resignation, retirement or discharge of its executive director or other managing agent, or a majority change in the membership of the board of directors. 9. Financial Disclosure: Within Ninety (90) days after the end of Contractor's fiscal year, Contractor shall file with the Contract Administrator duly certified copies of true, accurate and complete documents evidencing Contractor's financial status as follows: a. A statement of the expenditure of District funds by Program activities identified in Exhibit A and compared with budgeted amounts. b. A statement of compliance with the terms of the District's agreement. c. A statement of revenues and expenditures and a balance sheet of all funds received by the Contractor. 5 ð~7 -. .--.------. ..-.... . ..__n....--.-. d. If District funding is Twenty Thousand Dollars ($20,000.00) or greater, audited financial statements, including that mentioned in a, band c, above, must be prepared by an independent Certified Public Accountant. (If Contractor receives funding from Two (2) District fiscal years during Contractor's fiscal year, financial disclosure shall include separate data for each District fiscal year.) 10. No Third Partv Beneficiary: This agreement is made and entered into for the benefit of the District and Contractor only, and is not intended for the benefit of any third party or any other person, and no such third party or any other person shall be a third party beneficiary to this agreement or otherwise have the right to enforce any provisions of this agreement. 11. Siqnatures Required: This agreement shall not be complete nor effective until signed by either the Executive Director or authorized designee on behalf of the District and by the other party. DATED: SAN DIEGO UNIFIED PORT DISTRICT By CITY OF CHULA VISTA By 6 5:? -- ---- -.--. .-.".'-- ..-.-.-...---.- ATTACHMENT A HARBOR DAYS AND TALL SHIP FESTIVAL The City of Chula Vista shall produce the Fourteenth Annual Chula Vista Harbor Days and Tall Ship Festival on September 16 and 17, 2000, on the tidelands along Chula Vista Yacht Harbor and in Bayside Park. The City will provide overall administration and coordination of the event. The event shall include two full days of activities including free tall ship tours; maritime displays; arts, craft and business booths; a 200-vehicle Classic Car Show; musical entertainment stages; strolling entertainment and children=s activities. City shall provide all required equipment and services for the event, which includes, but is not limited to, the following: A. Overall event coordination B. Police services required for traffic and crowd control C. Fire services required including EMT support D. Free tours on tall ship A Bill of Rights@ (provided as part of city=s contract with Nautical Heritage Society) and the steam yacht AMedea@ as well as modern working vessels E. Parks and Recreation staff services including clean up in the park F. Free shuttle bus service from H Street Trolley Station to bay front events G. Public information services including development of publicity materials City shall provide extensive promotions and media exposure for the event, identifying the San Diego Unified Port District as a major co-sponsor of the event. Publicity shall include, but not be limited to, the following: A. Writing and mailing/faxing of press releases and photographs B. Direct contact with local and regional media including newspapers, radio and TV stations C. Production and purchase of advertising D. Design, printing and distribution of event flyers E. Design, printing and distribution of event programs F. Inclusion of Port vessels (i.e. Harbor Police) as part of ship tours/displays, if available G. Invitation to Port commissioners to introduce event entertainment H. Invitation to Port to have booth(s) which could include displays on recreational activities on tidelands, efforts to clean up San Diego Bay, and/or trade and cargo activities of the port I. Placement of Port banners in prominent event locations J. Features in special audience publications such as the City of Chula Vista newsletter (60,000 mailed) and the Chamber of Commerce newsletter K. Announcements on 161O-Am Traveler=s Information Radio Station L. Design and placement of exterior advertising on a number of Pacific Waste trash trucks that serve the South Bay Region 1/ .---- ATTACHMENT B Port of San Diego and Lindbergh Field Air Terminal (6191 686-6200 . 1'0. Box 120488, San Diego, California 92112-0488 www.portofsandiego.org June 29, 2001 Dear Financial Assistance Recipient: Congratulations! Financial assistance in the amount of $22,500 has been approved for your program - Summer Legacy Concert. A Port representative will be contacting you soon to discuss the attached documents 'í A Q&A format explaining the terms and conditions ¡hat must be met in order to receive the funding 2. Two copies of a contract. Please sign and return both copies with an Exhibit A attached to Sheila Abrenica, Marketing and Community Relations. An Exhibit A is a detailed outline of the services you intend to provide for the Port in return for your financial assistance. Please see the enclosed example, We look forward to working with you. Sincerely, ¡(i ()~ Rita A. Vandergaw Director, Marketing & Community Relations enc. '2~/2. .--.--- , AGREEMENT This agreement is made by the SAN DIEGO UNIFIED PORT DISTRICT, a public corporation, herein called "District" and the City of Chula Vista, a municipal corporation, herein called "Contractor." RECITALS 1. Contractor has a program known as "Summer Legacy Concert" ("Program"). 2. The Program to be accomplished by Contractor contributes to a balance of District navigational, commercial', fisheries, recreational and promotional programs designed to enhance the well-being of San Diego Bay tidelands. 3. The Program to be accomplished by Contractor is of such nature that the interests of District are better served by an agreement with Contractor than by the performance of such a program by District. THE PARTIES AGREE: In consideration of the recitals and the mutual obligations of the parties as herein expressed, District and Contractor agree as follows: 1. Prooram: Contractor shall conduct those program activities budgeted and contained in Exhibit A, attached hereto and incorporated herein by reference as a part of this agreement. Each specific program activity shall be subject to prior approval of the District pursuant to the terms of Board of Port Commissioners Policy Number 025. 1 .. :3 -. -- ....--.....-----..-..' ....--.--.---..--------... 2. Contract Administrator: The Marketing & Public Relations Department of the District is designated as the Contract Administrator of this agreement and shall receive and process all reports and requests for payment. All correspondence shall be sent to the following address: San Diego Unified Port District Attn: Financial Assistance Program Sheila Abrenica Post Office Box 1 20488 San Diego, CA 92112-0488 3. Term of Aqreement: The term of this agreement shall be from July 1. 2001, through June 30, 2002. 4. General Terms and Conditions: The General Terms and Conditions attached hereto are incorporated by reference as though fully set forth herein and by this reference are made part of this agreement. 5. Pavment: District shall pay Contractor a sum not to exceed twenty two thousand and five hundred dollars ($22,500.00) to be used to perform the Program activities shown in Exhibit A, subject to obtaining prior approval from the District as provided in Section 1, above. a. No payment shall be made by District if any report (see Sections 1, 5, 8 and 9) required by this and previous agreements is not on file at the time payment is due. 2 ..-------...--- ----."" .---------- b. Payment shall be solely for reimbursement of expenses already paid by Contractor. Requests for reimbursement shall be submitted no more often than monthly and shall provide proof of both incurrence and payment [See Section 5.c.(2)]. Expenses must be incurred within the term of this agreement. c. Payments shall be made upon written request to the Contract Administrator. Each request shall consist of: (1) A formal request for reimbur~ement in the form of a letter to the Contract Administrator. Only expenditures for program activities for which prior approval from the District was obtained will be reimbursed, provided, however, the Contract Administrator may in exceptional circumstances reimburse unforeseen expenses relating to the funded objectives of the Contractor. (2) Proof that the expenses were both incurred and paid. Proof of incurrence and payment is defined in General Terms and Conditions attached hereto. Expenses must be incurred within the term of this agreement. d. Final requests for payment shall be submitted within Sixty (60) days after the end of the term of this agreement. e. Payments shall not be made by District unless, and until, Contractor has provided to Contract Administrator a plan, acceptable to said Administrator, of appropriate public recognition or credit for the financial assistance as described herein. 3 g- -. -.--.-............---.--..--..---. f. No portion of District funds under this agreement shall be used for the purchase of awards, trophies, prizes, gifts, uniforms, capital outlay or equipment or for the buildup of reserves. 6. Excess Costs: District shall not be held accountable or liable for any monetary losses incurred as a result of conducting said program. It is agreed that District's monetary contribution is limited to that stated herein and that District shall not be responsible for cash costs or support services. 7. Limits of District Responsibilitv: It is expressly understood and agreed that this agreement constitutes the entire agreement between Contractor and District and supersedes all prior negotiations. In no event shall Contractor be entitled to any compensation, benefits, reimbursements or ancillary services other than as expressly provided in this agreement. No modifications or amendments of this agreement shall be valid unless duly authorized, reduced to writing and signed by the parties hereto. 8. Reportinq Requirements: a. Contractor shall submit a Quarterly Performance Report, if applicable, which shall provide a quantitative indicator of the extent to which the Program activities contained in Exhibit A have been met for the immediately preceding quarter and fiscal year to date. This report form shall be provided by the Contract Administrator. b. Quarterly reports shall be accompanied by copies of publicity and advertising material evidencing credit to the District for its financial support. c. Contractor shall inform Contract Administrator in writing upon the resignation, retirement or discharge of its executive director or other managing agent, or a majority change in the membership of the board of directors. 4 ",-,-,,'-~--'--"-'-'--- -., -_._-,--_......, 9. Financial Disclosure: Within Ninety (90) days after the end of Contractor's fiscal year, Contractor shall file with the Contract Administrator duly certified copies of true, accurate and complete documents evidencing Contractor's financial status as follows: a. A statement of the expenditure of District funds by Program activities identified in Exhibit A and compared with budgeted amounts. b. A statement of compliance with the terms of the District's agreement. c. A statement of revenues and expenditures and a balance sheet of all funds received by the Contractor. d. If District funding is Twenty Thousand Dollars ($20,000.00) or greater, audited financial statements, including that mentioned in a, band c, above, must be prepared by an independent Certified Public Accountant. (If Contractor receives funding from Two (2) District fiscal years during Contractor's fiscal year, financial disclosure shall include separate data for each District fiscal year.) 10. No Third Partv Beneficiary: This agreement is made and entered into for the benefit of the District and Contractor only, and is not intended for the benefit of any third party or any other person, and no such third party or any other person shall be a third party beneficiary to this agreement or otherwise have the right to enforce any provisions of this agreement. 5 <8-/7 -- .-.---.-- '-' -' -----------"'------- 11. Siqnatures Required: This agreement shall not be complete nor effective until signed by either the Executive Director or authorized designee on behalf of the District and by the other party. DATED: SAN DIEGO UNIFIED PORT DISTRICT By Senior Director, Administrative ServicesfTreasurer CITY OF CHULA VISTA By 6 ATTACHMENT C OF, ~~ Port of San Diego 0"" ð% Q 0 C '., and Lindbergh Field Air Terminal '\oo'å~;:;i' (619) 686-6200 . PÜ 80x 120488, San Diego, California 92112-0488 www.portofsandiego,org June 29, 2001 Dear Financial Assistance Recipient: Congratulations! Financial assistance in the amount of $15,000 has been approved for your program - Taste of the Arts. . A Port representative will be contacting you soon to discuss the attached documents: 1. A Q&A format explaining the terms and conditions that must be met in order to receive the funding. . 2. Two copies of a contract. Please sign and return both copies with an Exhibit A attached to Sheila Abrenlca, Marketing and Communications. An Exhibit A is a detailed outline of the services you intend to provide for the Port in return for your financial assistance. Please see the enclosed example. We look forward to working with you. Sincerely, ~()~ Rita A. Vandergaw Director, Marketing & Communications enc. -'---"-- -' . AGREEMENT This agreement is made by the SAN DIEGO UNIFIED PORT DISTRICT, a public corporation, herein called "District" and the City of Chula Vista, a municipal corporation, herein called" Contractor." RECITALS 1. Contractor has a program known as "Taste of the Arts" ("Program"). 2. The Program to be accomplished by Contractor contributes to a balance of District navigational, commercial, fisheries, recreational and promotional programs designed to enhance the well-being of San Diego Bay tidelands. 3. The Program to be accomplished by Contractor is of such nature that the interests of District are better served by an ag'reement with Contractor than by the performance of such a program by District. THE PARTIES AGREE: In consideration of the recitals and the mutual obligations of the parties as herein expressed, District and Contractor agree as follows: 1. Proqram: Contractc '_.~~ those program activities budgeted and contained in Exhibit A, attached hereto and incorporated herein by reference as a part of this agreement. Each specific program activity shall be subject to prior approval of the District pursuant to the terms of Board of Port Commissioners Policy Number 025. 1 8' -,'-"'---- ....-.-----...-.-----' 2. Contract Administrator: The Marketing & Public Relations Department of the District is designated as the Contract Administrator of this agreement and shall receive and process all reports and requests for payment. All correspondence shall be sent to the following address: San Diego Unified Port District Attn: Financial Assistance Program Sheila Abrenica Post Office Box 120488 San Diego, CA 92112-0488 3. Term of Aqreement: The term of this agreement shall be from July 1, 2001, through June 30, 2002. 4. General Terms and Conditions: The General Terms and Conditions attached hereto are incorporated by reference as though fully set' forth herein and by this reference are made part of this agreement. 5. Pavment: District shall pay Contractor a sum not to exceed fifteen thousand dollars ($15.000.00) to be used to perform the Program activities shown in Exhibit A, subject to obtaining prior approval from the District as provided in Section 1, above. a. No payment shall be made by District if any report (see Sections 1, 5, 8 and 9) required by this and previous agreements is not on file at the time payment is due. b. Payment shall be solely for reimbursement of expenses already paid by Contractor. Requests for reimbursement shall be submitted no more often than monthly and shall provide proof of both incurrence and payment [See Section 5.c.(2)]. Expenses must be incurred within the term of this agreement. 2 2? -.. _. -......- --"'--"- ,"'-'-"'---"'--"--'-' c. Payments shall be made upon written request to the Contract Administrator. Each request shall consist of: (1) A formal request for reimbursement in the form of a letter to the Contract Administrator. Only expenditures for program activities for which prior approval from the District was obtained will be reimbursed, provided, however, the Contract Administrator may in exceptional circumstances reimburse unforeseen expenses relating to the funded objectives of the Contractor. (2) Proof that the expenses were both incurred and paid. Proof of incurrence and payment is defined in General Terms and Conditions attached hereto. Expenses must be incurred within the term of this agreement. d. Final requests for payment shall be submitted within Sixty (60) days after the end of the term of this agreement. e. Payments shall not be made by District unless, and until, Contractor has provided to Contract Administrator a plan, acceptable to said Administrator, of appropriate public recognition or credit for the financial assistance as described herein. f. No portion of District funds under this agreement shall be used for the purchase of awards, trophies, prizes, gifts, uniforms, capital outlay or equipment or for the buildup of reserves. 3 £' - .--_. . ------- . ---- ---------- 6. Excess Costs: District shall not be held accountable or liable for any monetary losses incurred as a result of conducting said program. It is agreed that District's monetary contribution is limited to that stated herein and that District shall not be responsible for cash costs or support services. 7. Limits of District Responsibility: It is expressly understood and agreed that this agreement constitutes the entire agreement between Contractor and District and supersedes all prior negotiations. In no event shall Contractor be entitled to any compensation, benefits, reimbursements or ancillary services other than as expressly provided in this agreement. No modifications or amendments of this agreement shall be valid unless duly authorized, reduced to writing and signed by the parties hereto. 8. Reportinq Requirements: a. Contractor shall submit a Quarterly Performance Report, if applicable, which shall provide a quantitative indicator of the extent to which the Program activities contained in Exhibit A have been met for the immediately preceding quarter and fiscal year to date. This report form shall be provided by the Contract Administrator. b. Quarterly reports shall be accompanied by copies of publicity and advertising material evidencing credit to the District for its financial support. c. Contractor shall inform Contract Administrator in writing upon the resignation, retirement or discharge of its executive director or other managing agent, or a majority change in the membership of the board of directors. 9. Financial Disclosure: Within Ninety (90) days after the end of Contractor's fiscal year, Contractor shall file with the Contract Administrator duly certified copies of true, accurate and complete documents evidencing Contractor's financial status as follows: 4 23 a. A statement of the expenditure of District funds by Program activities identified in Exhibit A and compared with budgeted amounts. b. A statement of compliance with the terms of the District's agreement. c. A statement of revenues and expenditures and a balance sheet of all funds received by the Contractor. d. If District funding is Twenty Thousand Dollars ($20,000.00) or greater, audited financial statements, including that mentioned in a, band c, above, must be prepared by an independent Certified Public Accountant. (If Contractor receives funding from Two (2) District fiscal years during Contractor's fiscal year, financial disclosure shall include separate data for each District fiscal yeaL) 10. No Third Party Beneficiary: This agreement is made and entered into for the benefit of the District and Contractor only, and is not intended for the benefit of any third party or any other person, and no such third party or any other person shall be a third party beneficiary to this agreement or otherwise have the right to enforce any provisions of this agreement. 5 -~ .-.--------.. 11. Siqnatures Reauired: This agreement shall not be complete nor effective until signed by either the Executive Director or authorized designee on behalf of the District and by the other party. DATED; SAN DIEGO UNIFIED PORT DISTRICT By Senior Director, Administrative Services/Treasurer CITY OF CHULA VISTA By 6 -. ---.. -.--------------..-.----- ATTACHMENT D AGREEMENT SETTING OUT THE TERMS AND OBLIGATIONS OF THE CHULA VISTA CHAMBER OF COMMERCE FOR THE HARBOR DAYS FESTIVAL IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED THIS AGREEMENT, made and entered into the 16th dayofJuly, 200 I, by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "City", and the CHULA VISTA CHAMBER OF COMMERCE for the HARBOR DAYS FESTIVAL, hereinafter referred to as "Chamber"; WITNESSETH: WHEREAS, the Chamber is the primary organizer of the HARBOR DAYS FESTIVAL, a special event promoting Chula Vista Harbor, to be conducted in the City of Chula Vista on September 28 and 29, 2001, and WHEREAS, both the City and the Chamber will benefit ITom the media exposure attendant to the Festival, and WHEREAS, the City of Chula Vista desires to encourage the beneficial aims of the HARBOR DAYS FESTIVAL through appropriation of reasonable amounts of City funds, and WHEREAS, the City of Chula Vista has established a policy for consideration of requests for funding by private organizations and individuals, and WHEREAS, such policy stipulates that no expenditure may be made out of any appropriation awarded said organization unless an agreement has been reached between the parties setting out the terms and conditions for the expenditure of such funds. NOW THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. The organization known as the CHULA VISTA CHAMBER OF COMMERCE/HARBOR DAYS FESTIVAL agrees to produce the Fifteenth Annual Chula Vista Harbor Days and Tall Ship Festival including ITee-to-the-public musical entertainment, tall ship tours and related activities for the two-day event. 2. The CHULA VISTA CHAMBER OF COMMERCE/HARBOR DAYS FESTIVAL agrees to expend City appropriated funds to meet bona fide obligations incurred in performing services related to participation for the Harbor Days and Tall Ship Festival, in an amount not to exceed $12,000, in fiscal year '01-02. The Chamber further agrees that an additional $26,000 will be expended only on Harbor Day activities once the City's contract is executed with the San Diego Unified Port District that appropriates $26,000 in FY '01-02 to co-sponsor this event. All of these funds shall be used only for Harbor Days expenses and may not be transferred to other accounts. . --.---------- 3. The Chamber agrees to list the City and Port District as co-sponsors of the Harbor Days Festival and publicize the City and Port in all releases and fliers, print advertising, programs and information sheets. 4. The Chamber agrees to submit, within 60 days following the event, a complete report of all expenditures and shaH specifically list the purposes furthered by the City-appropriated funds of $12,000 and Port-appropriated funds of$26,000 for fiscal year '01-02. 5. That the City of Chula Vista, at its discretion, may require the CHAMBER OF COMMERCEIIIARBOR DAYS FESTIVAL to provide or allow the City to undertake a complete financial audit of their records. 6. That the term of this Agreement shall be for a period of one (I) year, ITom 7/16/0 I through 6/30/02, unless further modified to include other permitted expenditures of funds that are appropriated by the City of Chula Vista. 7. The Chamber agrees to indemnify and hold harmless the City against and ITom any and all damages in property or injuries to or death of any person, or persons, including employees or agents of the City, and shall defend, indemnify and hold harmtess the City, and its officers, agents and employees ITom any and all claims, demands, suits, actions or proceedings of any kind or nature of or by anyone whomsoever in any way resulting ITom or arising out of the negligent or intentional acts, errors or omissions of Chamber, or any of its officers, agents or employees relating to the event. 8. The Chamber shaH throughout the duration of this Agreement maintain comprehensive general liability insurance covering all operations hereunder of Chamber, its agents and employees with minimum coverage of one million dollars ($1,000,000). Evidence of such coverage, in the form of a certificate of insurance and policy endorsement which names the City as additional insured, shall be submitted to the City Manager's Office, 276 Fourth Avenue, Chula Vista, California 91910, on or before September 10,2001. 9. Chamber hereby agrees to abide by aU ofthe terms and conditions set forth by the San Diego Unified Port District ("Port") for the Chula Vista Harbor Days & TaU Ship Festival, which conditions are incorporated herein by reference as if set forth in full. 9 .- .-- '-'------------------ --- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA CHULA VISTA CHAMBER OF COMMERCE/ HARBOR DAYS FESTN AL ,.. ò\ ~O-C~ /Ç~~~.,r City Manager Chamber CEO ) Approved as to form by ~~¿7 Date: ;;/30/0/ , ' , Cit)\ttorney. 6- ----. COUNCIL AGENDA STATEMENT Item No.: o¡ Meeting Date: 8/7/01 ITEM TITLE: Resolution approving the flfSt amendment to the Land Offer Agreement between the City of Chula Vista and Brookfield Shea Otay LLC for Conveyance of land to the city for University purposes, and authorizing the Mayor to execute said first amendment. SUBMITTED BY: Director of Planning and BUilding~~ 11.- ~ REVIEWED BY: City Manager (; \)V (4/SIh Vote: Yes - No-1L} In April of 2000, the City and NM Homes Two, Inc. entered into an agreement where the City agreed to consider future entitlements for Village II of the Otay Ranch if NM Homes would agree to convey 536.9 acres for a proposed University Site. That agreement set time ITames for the consideration of the entitlements by the end of August of 2001. The new property owner, Brookfield Shea Otay, and City staff are proposing that the time frames be extended to the end of October 2001. The environmental review coordinator has determined that this action is exempt from CEQA under the General Rule (Section l501[b]) because it does not have the potential for causing a significant effect on the environment. RECOMMENDATION: That the City Council approve the resolution amending the land offer Agreement between the City and Brookfield Shea Otay extending the dates for project approval and land conveyance and authorizing the mayor to execute said agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/ A DISCUSSION: The new property owners of Village II, Brookfield Shea Otay, and City staff have agreed to extend the time frames for consideration of the Village II entitlements including General Plan and Otay Ranch General Development Plan (GDP) amendments, Village 11 Sectional Planning Area (SPA) Plan and tentative map to October 30, 2001. The extension is necessary in order to provide both the developer and the city sufficient time to fully address all of the issues involved in the General Plan and Otay Ranch GDP amendments, Village 11 SPA Plan and tentative map. The applicant and City staff have analyzed the remaining tasks and agreed on a schedule to bring the project forward for City Council consideration. The SPA Plan is tentatively scheduled for Planning Commission consideration on September 26th and City Council on October 9th. The tentative map is also scheduled for Planning Commission and City Council action in October of this year. q -I -. ------_.---. """"-"'-'-------" Page 2, Item No.: Meeting Date: It should be noted that the revised agreement now includes an agreed upon schedule for the processing of mass grading for phase one of the project. This schedule reflects a time frame, which is standard for the review of mass grading plans for a project of this nature. FISCAL IMPACT: The applicant has an existing deposit account with the City that funds all costs associated with the processing of their project. Attachments 1. Land Offer Agreement Extension J,IPlanningIJimlNM Homes Council Report.doc q~ ..-.-.-- ---. -.-.---....- RESOLUTION NO. 2001- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE LAND OFFER AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BROOKFIELD SHEA OTAY FOR CONVEYANCE OF LAND TO THE CITY FOR UNIVERSITY PURPOSES, AND AUTHORIZING THE MAYOR TO EXECUTE SAID FIRST AMENDMENT WHEREAS, in 1999, the City entered into a Letter oflntent with NM Homes Two, Inc. and other associated companies under which the City agreed to negoliate an Offer Agreement which would provide for the conveyance of 536.9 acres to the City for a University Site; and WHEREAS, under the tenDS of the proposed Land Offer Agreement, NM Homes would agree to convey 536.9 acres, which has been designated as a portion of the proposed 1,100+ acres "University Site" to the City of Chula Vista for future conveyance to the University of California or other qualified higher education institution; and WHEREAS, under the tenDS of the proposed Land Offer Agreement, the City agreed to a certain time schedule for discrelionary approvals on NM Homes ownership in Village II;and WHEREAS, NM Homes sold their interest in the Otay Ranch Project to Brookfield Shea Otay LLC and Brookfield has requested an extension of the schedule for discretionary approvals; and WHEREAS, the Environmental Review Coordinator has detennined that the use of the property as described in the subject agreement was previously considered in the Otay Ranch General Development Plan/Subregional Plan Program EIR-90-01. NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does hereby approve the First Amendment to the Land Offer Agreement between the City ofChula Vista and Brookfield Shea Otay LLC, for conveyance of land to the City for University purposes, a copy of which shall he kept on file in the office of the City Clerk. BE IT FURTHER RESOL VED that the Mayor of the City of Chula Vista is herehy authorized and directed to execute said First Amendment to the Land Offer Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to fonn by r& ~ e.-ð~-- Robert Leiter John ~y Planning and Building Director City Attorney IIIAtto",cyIßSOlo"Rcso.doc 3 RECORDING REQUESTED BY ) WHEN RECORDED M.AJL TO: ) ) ) City Clerk ) City ofChula Vista ) 274 Fourth Avenue ) Chula Vista, CA 91910 ) ) SPACE ABOVE THIS LINE FOR RECORDER'S USE FIRST AMENDMENT TO LA:t\TD OFFER AGREEMENT This First Amendment to Land Offer Agreement ("First Amendment") effective as of JuJy]2, 2001, is executed by and between Brookfield Shea Otay LLC, a California limited liability cornpany ("Owner"), and the City ofChuJa Vista, California ("City"). RECITALS A. City and Owner=s predecessors in interest, NM Homes Two, Inc., a Delaware corporation, B ill Capital Partners LP., a Delaware limited partnership, Otay Land Holdings, LLC, a Delaware limited liability company, Pearl Tech, LLC, a Delaware limited liability company and M/O Holdings, LLC, a Delaware limited liability company entered into that certain Land Offer Agreement effective as of March Î, 2000 and recorded May 12, 2000 as Document No. 2000- 0248234 ("Land Offer AgreemenC). B. City and Owner now desire to amend the Land Offer Agreement. NOW, THEREFORE, for good and valuab1e consideration the receipt and adequacy of which is hereby acknowledged, Owner and City agree to amend the Land Offer Agreement as folJows: .. 9,,4 Brookfield Shea Otay LLC First Amendment to Land Offer Agreement Page 1 0:\0."\278034 I w"" -. ",,---"-"--'---- ..............,--------" Section 3.2 shall be amended as follows: Owners shall have until September 5, 2001 to re\'iew the draft Public Facility Finance Plan (PFFP) and draft conditions of approval for the SPA ("Review Period'"). Ov.'IJers shall have the right to review said documents and decide whether to proceed with the processing the Entitlements. During the Ov.'IJer's Review Period., City agrees to meet with Owners in good faith to discuss draft documents and consider any changes Owners may request Owners agree to notify the City in ,,:riting, on or before September 5, 2001, as to whether Ovmers wish to continue processing the Entitlements. Owners may decide to stop processing the Entitlements if Owners determine that the conditions of approval for the SPA or the PFFP would render the Project economically infeasible. If the City is notified to stop processing the Entitlements and the reasons thereof, this Agreements and the Processing Agreement shall be terminated and the applications shall be considered withdrav.'IJ. The City shall return the Irrevocable Offer of Dedication to the Owners and take whatever actions necessary to remove said docwnent ITom the University Property's chain of title within thirty days of the termination notice by Owners. Owners shaH agree to pay any outstanding processing fees due the City in accordance v.~th the terms of the Processing Agreement. Section 3.4 shall be amended to eÀ'tend the approval date from August 31,2001 to October 30,2001. Section 4.3 shaH be amended to extend the termination date ITom August 31,2001 to October 30,2001. Section 4.4 shall be added to the Land Offer Agreement and shall provide as follows: "City agrees to complete processing of a mass grading permit for Phase One of the Project on or before January 18, 2002. Such processing shall be completed only on the condition that after August I, 2001 but no later than August 31,2001, Owner submits mass grading plans to the City which compJy with all applicable City Ordinances, policies and procedures of the City to the sarisfaction of the City Engineer. Shou1d Owner fail to comply with this condition precedent. City shall have no obligation to complete the processing of the mass grading permit on or before Janua,"y 18, 2002." Except as otherwise eÀ-press]y provided herein, City and Owner hereby affirm and ratiDc the Land Offer Agreement. Except as specifically set forth herein, the Land Offer Agreement shall remain unmodified and continue in full force and effect. City and Owner further agree that the original of this First Amendment to the Land Offer Agreement shall be recorded with the San Diego County Recorder's Office. In the event of any conilict betwe~ the terms of this First /\In~àment and the tenDS of the Land Offer Agreement, the terms of this First Amendment shall conn-a!. This First Amendment may be signed in counterpart and the counterparts so signed shall be deemed and shall constitute a single document. Brookñeld Shea Otay LLC :5 ëirst Amendment to Land Offer Agreement Page 2 O\D.ê3BO3'_'.W?D ..'--'----"--" ---_..' ..- -..-.---.... --. City and Owner, by !heir signatures set forth below, agree to the foregoing First Amendment and make it a part of !he Land Offer Agreement. City ofChula Vista Brookfield Shea Otay LLC, a California limited liability company By: By: Shea Otay Village 11 LLC, a , its Califorrua limited liability cornpany, Member Attest: By: Shea Homes Limited Partnership, a Califorrua lirruted partnership, its Sole Member Approved as to Form: By: J.f. Shea Co., Inc., a Nevada corporation, its General Partner J.9 ",,~\. So< .- By: By ~=¡" C ~ }O'¡-,-fVi Ie. AnÇuç',ltS . . By: Brookfield Otay LLC, a De1aware limited liability company, Member By: ~ D~ ~íE\"~" Ie , its Prwd......j- By ~l/\~ JPI. . ,its i . Brookfield Shea Otay LLC b First Amendment to Land Offer Agreement Page 3 D\D.c'-"803'.i.WPD _.. -.....--.--.---.....---.-------..----.--- CITY COUNCIL AGENDA STATEMENT ITEM NO: 10 MEETING DATE: 08-07-01 ITEM TITLE: RESOLUTION AMENDING THE FISCAL YEAR 2001-02 BUDGET BY APPROPRIATING $226,015 FROM THE AVAILABLE FUND BALANCE IN THE VEHICLE REPLACEMENT FUND, AND $155,677 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DIF FUND FOR THE PURCHASE OF A FIRE APPARATUS AND ANCILLARY EQUIPMENT, AND $26,076 IN THE FIRE DEPARTMENT BASED ON UNANTICIPATED REVENUES FOR ASSOCIATED EQUIPMENT REPLACEMENT COSTS AND AWARDING A PURCHASE AGREEMENT TO PIERCE MANUFACTURING! SOUTH COAST FIRE EQUIPMENT, INC. FOR ONE TRIPLE COMBINATION PUMPER IN THE AMOUNT OF $307,365, AND INCREASING THE FIRE DEPARTMENT'S EQUIPMENT REPLACEMENT LINE ITEM BY $34,768 IN THE APPROVED FY03 GENERAL FUND SPENDING PLAN BASED ON UNANTICIPATED REVENUES. SUBMITTED BY: FIRE CHIEF YIJ.I{-; , ()iv :1/ REVIEWED BY: CITY MANAGER (,I I) I 4/5THS VOTE: YES X NO City of Chula Vista Municipal Code Section 2.56.140 authorizes the Purchasing Agent to participate in cooperative arrangements with other governmental agencies for the acquisition of equipment purchased through a competitive process. Based on a recent Request for Bid, the City of San Diego formally awarded a contract to Pierce Manufacturing for purchase of twelve (12) similar Triple Combination Pumpers. BACKGROUND From 1986 to 2000 the Fire Department maintained two reserve vehicles for it's six fire stations (operating with 7 companies). With the purchase of a new pumper last year the Fire Department initiated a program of maintaining three reserve vehicles. This program was intended to retain in service the oldest vehicle- a Telesqurt-as the third reserve. However due to the recent analysis by the Public Works Fleet Manager it is -... -.--........-..---"'-"-- -.. .-.-..."--- PAGE 2, ITEM NO.: /0 MEETING DATE: 08-07-01 recommended to replace the Telesqurt rather than utilize it as a reserve. The Telesqurt was purchased in 1975 and has approximately 115,000 miles. Due to the age and mileage of the vehicle it was determined to be very costly to maintain and may require extensive "down time" for maintenance and repair. The increased size of the City has had a significant impact on the overall mileage of the Fire Department fleet. As was reported during the Budget hearings, a thorough study of the current fire department vehicle replacement policy will be conducted during Fiscal Year 2002. RECOMMENDATION City Council approve the appropriation of $226,015 from the vehicle replacement fund and $155,677 from the Public Facilities Development Impact Fee Fund, for the purchase of a fire apparatus and ancillary equipment for this apparatus, and $26,067 from the General Fund based on unanticipated revenues for the equipment replacement costs associated with this apparatus, and award a purchase agreement to Pierce Manufacturing/ South Coast Fire Equipment, Inc. in the amount of $307,365 (excluding sales tax, discount and trade-in) or a Triple Combination Pumper. That Council also approve an amendment to the adopted FY03 spending plan to increase the Fire Department's equipment replacement line item by $34,768, based on unanticipated revenues, to cover equipment replacement costs associated with the new apparatus. BOARDS/COMMISSIONS RECOMMENDATION None DISCUSSION The Public Facilities Development Impact Fee (PFDIF) provides for a prorated share of the purchase price for placing one additional vehicle into reserve. Since the apparatus was on a twenty-year replacement schedule and was 12 years old 60% of the cost of the new apparatus is recommended for payment from the equipment replacement fund, with the remaining forty percent to be paid from the Public Facilities DIF. Through a Public Agency clause on a City of San Diego bid, Chula Vista can take advantage of favorable pricing, terms and conditions for purchase of the desired apparatus. The City of San Diego bid for twelve (12) triple combination fire apparatus was awarded at their Council meeting on June 22, 2001. Thirty-three (33) potential bidders had been contacted; five (5) bids were received. Pierce Manufacturing was recommended as the low bidder meeting specifications. The apparent low bids from American LaFrance and Westates were rejected as they failed to meet the specifications for critical ...--. --------...-...... - PAGE 3, ITEM NO.: -1fJ MEETING DATE: 08-07 -01 requirements. No Chula Vista vendors were contacted because there are no suppliers in Chula Vista that sell this type of commodity. The City acquired a like apparatus last year from Pierce based on a cooperative purchase arrangement with the City of EI Segundo. Pricing for the requested apparatus is approximately $37,894 (11.6%) higher than last year's purchase. However, there have been two 3% annual price increases from Pierce since the last purchase, and the Fire Department is requesting approximately $11 ,000 in additions/modifications over the prior year model. These enhancements include an on-board diagnostic computer, a mechanical siren, hose bed dividers, running board modifications, phone system speakers, and storage compartment reconfigurations. To help offset this price increase, the Purchasing Agent is recommending taking advantage of a pre-payment discount, a trade-in offer from Pierce, and direct payment of sales tax to the state. Specifically, Pierce will reduce the purchase price by almost $12,000 for pre-payment of the apparatus. The pre-payment risk is minor because the City would have a 100% performance bond on file until acceptance of the apparatus, and there is a relatively quick lead-time for specialty equipment of this type (6% - 7% months). Pierce has also made a $5,000 trade-in offer for the existing 1975 reserve Telesqurt. This would be more than we would expect to receive should the City dispose of this unit at auction. Finally, by the City paying sales tax directly to the state, the City would be able to retain over $3,200 (1 %) now rather than wait for a lesser share of an allocation sometime next year. The following table summarizes comparable apparatus purchases made recently by other public agencies. Cost differences may be attributable to agency-specific equipment requirements and/or compartment configurations. Public Agency Apparatus Cost City of Poway $373,804 City of Oceanside $357,938 City of Chula Vista (Proposed) $348,6751 1 Includes 7.5% California Slate Sales Tax. Prepayment discount and trade-in allowance not included. /0-3 -. - .-..---.--. ......---..-------'---- PAGE 4, ITEM NO.: 10 MEETING DATE: 08-07-01 This will be the third Pierce apparatus purchased by the City over the past three years. The Fire Department has been pleased with not only performance, but also with the level of service provided. Other agencies throughout California have also reported satisfactory results. FISCAL IMPACT The total cost of the apparatus including sales tax and ancillary equipment less discounts is $386,692. Based on the twenty year replacement schedule and the 12 year life of the vehicle being placed into reserve the Public Facilities DIF is responsible for 40% of the purchase, or $155,677 and the equipment replacement fund is responsible for 60% of the purchase, less the $5,000 residual value of the Telesqurt, or $226,015. There will be no increased ongoing maintenance costs as a result of this purchase since the old apparatus is being placed in reserve. The equipment replacement costs of $26,067 for the remainder of this fiscal year and $34,768 for FY03 can be funded based on unanticipated property tax revenues in both years. -.....-......------- "-""""'-" -..---......-... --. RESOLUTION NO. 2001- ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2001-02 BUDGET BY APPROPRIATING $226,015 FROM THE AVAILABLE FUND BALANCE IN THE VEHICLE REPLACEMENT FUND, AND $155,677 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DlF FUND FOR THE PURCHASE OF A FIRE APPARATUS AND ANCILLARY EQUIPMENT, AND $26,076 IN THE FIRE DEPARTMENT BASED ON UNANTICIPATED REVENUES FOR ASSOCIATED EQUIPMENT REPLACEMENT COSTS AND AWARDING A PURCHASE AGREEMENT TO PIERCE MANUFACTURING/SOUTH COAST FIRE EQUIPMENT, INc. FOR ONE TRIPLE COMBINATION PUMPER IN THE AMOUNT OF $307,365, AND INCREASING THE FIRE DEPARTMENT'S EQUIPMENT REPLACEMENT LINE ITEM BY $34,768 IN THE APPROVED FY03 GENERAL FUND SPENDING PLAN BASED ON UNANTICIPATED REVENUES WHEREAS, City of Chula Vista Municipal Code Section 2.56.140 authorizes the Purchasing Agent to participate in cooperative arrangements with other governmental agencies for the acquisition of equipment purchased through a competitive process; and WHEREAS, based on a Recent Request for Bid, the City of San Diego formally awarded a Contract to Pierce Manufacturing on June 22, 2001 for purchase of twelve (12) similar Triple Combination Pumpers; And WHEREAS, from 1986 to 2000 the Fire Department maintained two reserve vehicles for its six fire stations (operating with 7 companies) and with the purchase of a new pumper last year the Fire Department initiated a program of maintaining three reserve vehicles; and WHEREAS, this program was intended to retain in service the oldest vehicle, a Telesqurt, (which was purchased in 1975 and has approximately 115,000 miles) as the third reserve, however, due to the recent analysis by the Public Works Fleet Manager, it is recommended to replace the Telesqurt rather than utilize it as a reserve; and WHEREAS, due to the age and mileage of the vehicle, it was determined to be very costly to maintain and may require extensive "down time" for maintenance and repair and the increased size of the City has had a significant impact on the overall mileage of the Fire Department fleet; and WHEREAS, as was reported during the Budget hearings, a thorough study of the current tire department vehicle replacement policy will be conducted during Fiscal Year 2002. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the Fiscal Year 2001-02 budget by appropriating $226,015 ITom the available fund balance in the Vehicle Replacement Fund, and $155,677 from the available fund balance in the Public Facilities DIF Fund for the purchase of a fire apparatus and ancillary -..-. .-.-..-.-..-......-- ----~--'-'--' -. equipment; and $26,076 in the Fire Department based on unanticipated revenues for associated equipment replacement costs. BE IT FURTHER RESOLVED that the City Council does hereby award a Purchase Agreement to Pierce Manufacturing/South Coast Fire Equipments, Inc. for one Triple Combination Pumper in the amount of$307,365. BE IT FURTHER RESOLVED that the Fire Department's equipment replacement line item be increased by $34,768 in the approved FY03 General Fund Spending Plan based on unanticipated reserves. Presented by Approved as to form by James Hardiman Fire Chief J:\attorncy\rcso\Fire Apparatus ) _.. ..----.-. CITY COUNCIL AGENDA STATEMENT Item No. I Meeting Date: 8/07/01 ITEM TITLE: PUBLIC HEARING; 8M-00IF; Consideration of Ordinances Establishing the San Miguel Ranch Fiscal Deficit Fee. An Urgency Ordinance of the City of Chula Vista Establishing the San Miguel Ranch Fiscal Deficit Fee as a building permit based fee to provide permanent funding for the preparation of 15 annual fiscal reviews for the project, and for the payment of any fiscal deficits identified by the reviews, as required by Ordinance 2829 which established the San Miguel Ranch Fiscal Deficit Account. An Ordinance of the City of Chula Vista Establishing the San Miguel Ranch Fiscal Deficit Fee as a building permit based fee to provide permanent funding for the preparation of 15 annual fiscal reviews for the project, and for the payment of any fiscal deficits identified by the reviews, as required by Ordinance 2829 which established the San Miguel Ranch Fiscal Deficit Account. SUMITTED BY: Director of Planning and Building ~ {;i¿ " (4/5ths Vote: Yes ~ - No ~ REVIEWED BY: City Manager t.... ,IV On October 19,1999, the City Council approved the San Miguel Ranch Sectional Planning Area (SPA) Plan and related documents including a Public Facilities Financing Plan and Fiscal Impact Analysis (PFFPIFIA). The PFFPIFIA identified a projected, annual deficit of $125,100 attributable to the project at its buildout. As a result, both the SPA and Tentative Map (subsequently approved by the City Council on February 29, 2000) were conditioned to require the applicant to establish a mechanism to fund the preparation of annual fiscal reviews, and to pay for any fiscal deficits identified by the reviews, prior to approval of annexation and the first Final Map within the project. In conjunction with the City Council's approval of the project area's annexation to the City on December 19, 2000, the Council also approved Ordinance 2829 which established the San Miguel Ranch Fiscal Deficit Account. Among its various provisions pertaining to the required 15 annual fiscal reviews of the project and payment for any identified deficits, Ordinance 2829 requires that prior to approval of the first Final Map for San Miguel Ranch, the applicant (NNP- Trimark San Miguel, LLC) establish the permanent funding mechanism to pay for the annual fiscal reviews and any deficits. The applicant is now seeking approval of the first Final Map (to be considered under a separate item on tonight's Agenda), and it is necessary to approve a permanent funding mechanism. The proposed Urgency Ordinance and permanent Ordinance .- - _. ......-"'--'---------" Page 2, Item:- Meeting Date: 8/07/01 will establish identical fees to be paid in conjunction with building permits for all residential units in San Miguel Ranch. The Environmental Review Coordinator has determined that this action is not a project as defined in the California Environmental Quality Act, and therefore is not subject to environmental review. No further action is necessary. RECOMMENDATION: That the City Council approve the Urgency Ordinance to take effect immediately for a period of 30 days, and place on first reading the Ordinance, both of which are required to establish the San Miguel Ranch Fiscal Deficit Fee. BOARDS AND COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Calculation of the Projected Deficit and Requirements of Previous Project Approvals: The approved San Miguel Ranch Public Facilities Financing Plan and Fiscal Impact Analysis (PFFPIFIA) analyzed the costs and revenues associated with the project over time, and at buildout, and identified that projected revenues generated by the project (e.g., property tax, sales tax, etc.), would not cover the City's costs to serve the project area (e.g., police and fire service, parks and recreation, street maintenance, etc.). As presented during the SPA and Tentative Map approval process, the PFFPIFIA identified that the project would operate at a net, annual fiscal deficit of $125,100 at project buildout, due largely to property tax revenue sharing under the Master Property Tax Transfer Agreement (MPTTA) which applies to areas to be annexed. Excerpts ITom the adopted PFFPIFIA regarding the projected deficit are presented in Exhibit 2, attached to the proposed Ordinances. Although the identified deficit could continue indefinitely, it is difficult to forecast future revenue and expenditures. The City therefore required the deficit to be mitigated for each of the years the project is under construction, plus 10 years beyond project buildout, or 15 years total. The annual fiscal reviews would commence in year 2001 and continue through 2015. As a result, the SPA was conditioned to require that the applicant mitigate the fiscal deficit by establishment of a reserve fund or other appropriate mechanism to the satisfaction of the City. Council subsequently approved a Tentative Subdivision Map on February 29, 2000, by Resolution 2000-068 for the 743.1 acre project area (see Attachment A- Locator). Tentative Map condition #95 required the applicant to establish and fund a Fiscal Deficit Account to finance the 15 annual fiscal impact reviews, and to pay for any deficits identified by the reviews. The condition also required the applicant to select a mechanism satisfactory to the City, such as a building permit fee or one time payment, to ensure a permanent funding source to pay for the reviews and any deficits. Pursuant to these conditions, when the City Council approved annexation of San Miguel Ranch to the City on December 19,2000, Council also approved Ordinance 2829 which established the /I - .__.0. _._,-----'~_._---' Page 3, Item:- Meeting Date: 8/07/01 San Miguel Ranch Fiscal Deficit Account (see Attachment B). Following are that Ordinance's maIn provIsIOns: Established an account to be used for preparation of 15 annual fiscal reviews and to pay the City for any fiscal deficits identified by the annual reviews, along with various authorities and requirements for accounting and expenditures. Required the applicant to deposit an initial $10,000.00 into this account to ensure availability of monies to pay for preparation of the annual fiscal reviews. Set forth the requirements and standards for conducting the annual fiscal reviews, starting with fiscal year 2001/2002 and continuing through fiscal year 2015/2016. Required the applicant or their successors and assigns in-interest to pay the City for any fiscal deficits identified by the annual reviews. In addition, it also required that, prior the approval of the first Final Map within the project, the applicant establish a permanent funding mechanism, to the City's satisfaction, to pay the City for the ongoing cost of preparing the 15 annual fiscal reviews for the project, and for any fiscal deficits identified by the annual reviews. As noted earlier in this report, the applicant is now seeking approval of the first Final Map for the project area east of future SR125, and pursuant to Ordinance 2829 it is necessary to establish the required permanent funding mechanism. The applicant has elected to establish a building permit based fee to be paid to the City in conjunction with permits for each residential unit within San Miguel Ranch. The following section discusses the proposed fee. Proposed San Miguel Ranch Fiscal Deficit Fee: Staff has previously worked with CIC Research, Inc., who prepared the project's FIA, to quantify the projected costs of the deficit over time, and to develop possible funding alternatives including a one-time deposit, or a fee, which could be paid with each residential building permit (see Exhibit 3 attached to the proposed Ordinances). The applicant has reviewed CIC's information regarding alternatives for the permanent funding mechanism, and has elected to establish a fee to be paid prior to issuance of each building permit. The San Miguel Ranch Fiscal Deficit Fee provides a permanent source of sufficient funds to offset projected, eventual operating deficits. The proposed fee structure considers the gradual collection of funds throughout the project's construction, along with interest earnings on those funds, and inflation, to ensure that adequate funds will exist to pay the City for projected deficits through the year 2015. The methodology utilizes a discounted cash flow analysis (Net Present Value). The Net Present Value was calculated utilizing a 3 percent discount rate, which assumes that the difference between inflation and interest rates is 3% per year. That rate was calculated using an assumed 3% inflation rate and a 6% return on funds. The discount and inflation rate values are valid assumptions because they reflect historical averages. Net Present Value for purposes of this ordinance is the discounted value or amount of the building permit fee required, /1 Page 4, Item:- Meeting Date: 8/07/01 with consideration given to two things: First, that the money in the fiscal deficit account will earn interest or a return on funds estimated at approximately 6% per year; Second, that inflation, estimated at 3%, will decrease the value of the dollar and thus the City's spending power. As presented in the proposed Ordinances, the proposed fee would be as follows: (J $896.00 for each dwelling unit issued a building permit during year 2001. (J $922.00 for each dwelling unit issued a building permit during year 2002. (J $950.00 for each dwelling unit issued a building permit during year 2003. 0 $979.00 for eath dwelling unit issued a building permit during year 2004. 0 $1,008.00 for each dwelling unit issued a building permit during year 2005. If project construction activity continues beyond year 2005, the per-dwelling-unit fee would continue to increase at the rate of an additional 3% per year to compensate for inflation. For example, the per-dwelling-unit fee for year 2006 would be $1,038, and $1,069 in the year 2007. As a result, the above methodology equally considers all 1394 units within the project, and allows the fee to be independent of the particular number of dwelling units that may be permitted in any calendar year. For instance: Should permits be pulled at a more rapid rate in the first year (or any other year) than original projections, the City would actually benefit even though the per-unit fee is lower. This results ITom the fact that those funds would then begin earning interest at the approximate rate of 6% per year earlier than anticipated, and that the 6% rate is greater that the 3% inflationary increase in the annual dwelling unit permit fee. Should permits be pulled at a slower rate than original projections, remaining permits pulled in subsequent years would pay at the increased rates (3%/year) which compensate for annual inflationary losses. As a result, while the City does not specifically benefit ITom this slower rate (as with the accelerated permit scenario), there would be no negative impact. Annual Fiscal Analysis and Review of Fees: It should be noted that, as an additional protection to the City, each of the project's required annual fiscal deficit reviews will also include an evaluation of the necessity for, and amount of, the fee. This would include such considerations as the amount of fees collected and interest earned to-date, the rate of inflation, and the state of the economy. If the annual fiscal review discovers any significant changes ITom assumptions used in the FIA regarding the amount of the project's fiscal deficit, or the fee's structure, amendments to this ordinance would be brought forward for Council consideration along with the report on the results of each annual fiscal review. .. .-...-.--.-...----- - -" . ...-----.-... PageS,ltem:- Meeting Date: 8/07/01 Adoption of Urgency Ordinance: Approval by the City Council of the first Final Subdivision Map for San Miguel Ranch has been recommended by staff in a separate item on this Council Agenda. This Final Map creates certain legal, buildable residential parcels. If the City's development regulations are satisfied for these parcels, it is possible that application for and issuance of building permits could occur in San Miguel Ranch within the next 30 days following approval of the Final Map. A current, immediate threat to public safety could result if the San Miguel Ranch project does not pay its fair share of costs for City services related to its development, and a shortfall occurs which requires that funding be transferred ITom other City funds or programs which could directly impact existing residents. Therefore, staff recommends the adoption of the attached urgency ordinance to enact the fiscal deficit fee immediately. CONCLUSION In conclusion, staff recommends adoption of the proposed urgency and permanent Ordinances establishing the San Miguel Ranch Fiscal Deficit Fee in order to satisfy project conditions of approval, mitigate the anticipated fiscal impact to the City, and enable the Council to approve the first Final Map for San Miguel Ranch. FISCAL IMPACT: Staff time and associated costs for preparing an implementing the ordinance are being paid by the Applicant. Adoption of the proposed urgency and permanent Ordinances effectively creates a positive fiscal impact for the City, in that it ensures that a permanent funding mechanism will exist to pay the City for conducting the annual fiscal reviews over the next 15 years, and for any fiscal deficits identified by those reviews. Attachments: A. Locator Map B. Ordinance 2829, San Miguel Ranch Fiscal Deficit Account (without attachments) (HWLANNINGI,mr-fi,cal-RevlaJ 13.rptdoc) I -. o. '----' -... ,""" .,._- I PH.lm mcmo. SDGOE MIGUEL ORDINANCE NO. 2829 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT, REQUIRING NNP-TRIMARK SAN MIGUEL, LLC, TO DEPOSIT AN INITIAL $10,000 INTO SAID ACCOUNT PRIOR TO ANNEXATION, AND REQUIRING NNP-TRIMARK SAN MIGUEL, LLC, PRIOR TO APPROVAL OF ANY FINAL SUBDMSION MAP FOR THE PROJECT, TO ESTABLISH AND FUND A PERMANENT MECHANISM TO PAY THE CITY FOR FINANCING THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS AND DEFICIT ANALYSES FOR THE SAN MIGUEL- RANCH PROJECT, AND FOR ANY FISCAL DEFICITS IDENTIFIED BY THE ANNUAL REVIEWS AND ANALYSES WHEREAS, the San Miguel Ranch Sectional Planning Area (SPA) Plan and Public Facilities Financing Plan/Fiscal Impact Analysis (PFFPIFIA) were approved by the City Council on October 19,1999, by Resolution No. 19631; and WHEREAS, the PFFPIFIA identified that the San Miguel Ranch Project would operate at an annual net fiscal deficit to the City; and WHEREAS, Condition No. 22 of Resolution 1963 I required the project applicant to establish a mechanism to mitigate that deficit to the City's satisfaction prior to annexation of the project site; and WHEREAS, on February 29, 2000, the City Council approved a Master Tentative Subdivision Map for the San Miguel Ranch project by Resolution No. 2000-068; and WHEREAS, Condition Nos. 95a. & 95b. of Resolution No. 2000-068 further specified the applicant's responsibility to establish an account to finance the preparation of annual fiscal reviews and deficit analyses for the project, and to establish a permanent mechanism, prior to approval of the first Final Map within the project, to pay the City for the ongoing preparation of the annual reviews, and for any fiscal deficits identified by the annual reviews; and WHEREAS, on April 3, 2000, the San Diego Local Agency Formation Commission (LAFCO) adopted a Resolution (Ref. No. R099-42) approving the San Miguel Ranch Reorganization subject to conditions, one of which reads "Pursuant to conditions regarding a forecasted annual fiscal deficit, contained in the SPA and Tentative Map, the property owner will establish and fund a mitigating mechanism to the City's satisfaction"; and WHEREAS, the City, as LAFCQ's designated conducting authority, is ready to consider the San Miguel Reorganization and to order the changes of organization pursuant to LAFCO's Resolution; and WHEREAS, in accordance with the City's noted conditions of approval in Resolution Nos. 19631, and LAFCO's noted condition of approval, it is now necessary to establish and fund a mitigating mechanism; and WHEREAS, Exhibit 2 attached hereto is an excerpt ITorn the San Miguel Ranch PFFPIFIA and generally describes the forecasted annual fiscal deficit; and A TTA-r JJ f\ltr: ~ IT R -. --..------...---..-..-- Ordinance 2829 ') Page 2 WHEREAS, Exhibit 3 attached hereto identifies potential accounting alternatives for ensuring payment to the City for any fiscal deficits resulting ITom the project, and which will be used to establish a permanent accounting mechanism prior to approval of the first Final Map within the project; and WHEREAS, the Environmental Review Coordinator has determined, pursuant to Section 15162 of the CEQA Guidelines, that the actions proposed in this ordinance are in substantial conformance with the project analyzed in FSEIR-97-02 which was certified by the City Council on October 19, 1999, and that no further action is necessary. NOW, THEREFORE, the City Council of the City ofChula Vista does ordain as follows: SECTION 1. Territory to Which Annual Fiscal Review and Deficit Analysis is Applicable. The area to which the San MigueLRanch annual fiscal' analysis funding herein established and which will be established prior to approval of the first Final Map shall be applicable to the project area defined in the SPA Plan and PFFPIFIA adopted by the City Council on October 19, 1999, and reflected on Exhibit I attached hereto. SECTION 2. Purpose. In accordance with applicable conditions of City Council Resolutions 19631, the purpose of this ordinance is to establish and fund a mechanism to mitigate the deficit for the San Miguel Ranch project. SECTION 3. Establishment and Funding Requirements of the San Miguel Ranch Fiscal Deficit Account, and Authority for Accounting and Expenditures The project applicant, NNP- Trimark San Miguel, LLC, shall, prior to final recordation of the San Miguel Ranch Reorganìzation, deposit an initial $10,000.00 dollars into an account with the City, which is hereby created. The applicant, or their successors and assigns in-interest shall initially and at all times maintain a minimum balance of $10,000.00 in the Account. Prior to approval of the first Final Map within the project, and subject to the approval of the City, the applicant shall establish and fund a permanent mechanìsm to satisfy the applicant's responsibility for funding preparation of the 15 annual reviews, and for payment of the project's fiscal deficits identified by those reviews. Such permanent mechanìsm may include payment of a one-time fee, a fee to be paid with each building permit, or other method acceptable to the City. Associated monies shall be placed into the above created Account. The Director of Finance is authorized to periodically make expenditures ITom the Account for the purposes set forth herein. Expenditures ITom the Account and any interest earned thereon shall be accounted for separately ITom other City accounts. SECTION 4. Requirements for Conducting Annual Fiscal Reviews and Deficit Analyses The Account shaH be used for the purpose of accounting 15 annual reviews of the project's fiscal operation deficits, to be conducted by the City or its consultants to evaluate the -., -. -- .--------------------.---- Ordinance 2829 Page 3 fiscal impact of the project on the City. These annual reviews shaH be similar in nature to those used in the project's adopted PFFP/FIA, using factors deemed relevant by the City manager. The reviews shall contain such information so as to enable the City to ensure that all City services provided to the project including direct and indirect costs, as wen as capital and operating costs, are covered by project revenues and project exactions. The first annual review shall be for fiscal year 2001/2002, and annual reviews shall continue through fiscal year 2015/2016. The reviews shaH be completed within 180 days of the end of each fiscal year. SECTION 5. Requirements for Mitigating Fiscal Deficits Identified by the Annual Reviews The applicant or their successors and assigns in-interest shall be responsible for paying the City for any fiscal deficits identified by the annual reviews through establishment of a permanent funding mechanism. SECTION 6. Expiration of This Ordinance This ordinance shall be of no further force and effect when,the City Council determines that the accounts are no longer needed for the purposes stated herein. SECTION 7. EffectiveDate This ordinance shall become effective thirty days after its second reading and adoption. Presented by Approved as to form by UÆk C~~ ý..-/ Robert A. Leiter ~aheny Planning & Building Director Ci Attorney -. ----._..--_00______-- Ordinance 2829 -) Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of January, 2001, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None JíØÆt4(.JhtZ; ¡ I Shirley Horto¡f, Mayor ATTEST: -::. .;;:iLl). tLLf3. g ~ Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No- 2829 had its first reading at a regular meeting held on the 19th day of December, 200 I and its second reading and adoption at a regular meeting of said City Council held on the 9th day of January, 2001- Executed this 9th day ofJanuary, 2001. ~U LLLt~'@>~ Susan Bigelow, City Clerk ---.-.. -----..---.-----.-- . ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT FEE AS A BUILDING PERMIT BASED FEE TO PROVIDE PERMANENT FUNDING FOR THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS FOR THE SAN MIGUEL RANCH PROJECT, AND FOR THE PAYMENT OF ANY FISCAL DEFICITS IDENTIFIED BY THOSE ANNUAL REVIEWS, AS REQUIRED BY ORDINANCE 2829 WHICH ESTABLISHED THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT WHEREAS, the San Miguel Ranch Sectional Planning Area (SPA) Plan and Public Facilities Financing PlanlFiscal Impact Analysis (PFFPIFIA) were approved by the City Council on October 19,1999, by Resolution No. 19631; and WHEREAS, the PFFPIFIA identified that the San Miguel Ranch Project would operate at an annual net fiscal deficit to the City; and WHEREAS, condition no. 22 of Resolution 19631 required the project applicant to establish a mechanism to mitigate that deficit to the City's satisfaction prior to annexation of the project site; and WHEREAS, on February 29, 2000, the City Council approved a Master Tentative Subdivision Map for the San Miguel Ranch project by Resolution No. 2000-068; and WHEREAS, condition nos. 95a. & b. of Resolution No. 2000-068 further specified the Applicant's responsibility to establish an account to finance the preparation of annual fiscal reviews and deficit analyses for the project, and to establish a permanent mechanism, prior to approval of the first Final Map within the project, to pay the City for the ongoing preparation of the annual reviews, and for any fiscal deficits identified by the annual reviews; and WHEREAS, on April 3, 2000, the San Diego Local Agency Formation Commission (LAFCO) adopted a Resolution (Ref. No. R099-42) approving San Miguel Ranch Reorganization subject to conditions, one of which reads "Pursuant to conditions regarding a forecasted annual fiscal deficit, contained in the SPA and Tentative Map, the property owner will establish and fund a mitigating mechanism to the City's satisfaction"; and WHEREAS, on December 19, 2000, in conjunction with actions on annexation of the San Miguel Ranch project area, the City Council approved Ordinance 2829, establishing the San Miguel Ranch Fiscal Deficit Account; and WHEREAS, pursuant to Sections 3 and 5 of Ordinance 2829, the Applicant (NNP- Trimark San Miguel, LLC) ( "Applicant" ) shall, prior to approval of the first Final Map within the project, establish and fund a permanent mechanism to satisfy the Applicant's responsibility for funding preparation of the 15 annual reviews, and for payment of the project's fiscal deficits identified by those reviews; and ORDINANCE NO. PAGE 2 WHEREAS, Exhibit 2 attached hereto is an excerpt ITom the approved San Miguel Ranch PFFPIFIA and generally describes the forecasted annual fiscal deficit; and WHEREAS, Exhibit 3 attached hereto identifies the proposed San Miguel Ranch Fiscal Deficit Fee which will establish a permanent funding mechanism and ensure payment of said fee to the City prior to issuance of building permits, to mitigate any fiscal deficits resulting ITom the project; and WHEREAS, the City Council has determined, based upon information presented to it in conjunction with prior action on the Project's SPA, PFFPIFIA, Tentative Subdivision Map and Annexation, that imposition of the San Miguel Ranch Fiscal Deficit Fee on all developments within the San Miguel Ranch SPA Plan area for which building permits have not yet been issued is necessary in order to protect the public safety and welfare, to ensure the effective implementation of the San Miguel Ranch SPA Plan, and is reasonably related to the development of the San Miguel Ranch Project; and WHEREAS, the Project's PFFPIFIA indicates that the City's operating deficits result ITom residential development, not commercial, so the proposed fees are proposed to be tied to residential dwelling units, both single and multiple family; and WHEREAS, the Environmental Review Coordinator has determined that the action is not a project as defined by the California Environmental Quality Act (CEQA), and therefore is not subject to environmental review. No further action is necessary. WHEREAS, said interim measure will be effective for thirty (30) days and may be extended twice for additional thirty (30) day periods upon subsequent action by the City Council, and WHEREAS, state law requires said urgency ordinance to be adopted by a four- fifths vote. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows; Section 1. Territory to Which Fee is Applicable. The area to which the San Miguel Ranch Fiscal Deficit Fee herein established shall be applicable is the same as the San Miguel Ranch SPA Plan, and defined by the San Miguel Ranch Reorganization (City Council Resolution 2000-482) and reflected on Exhibit I attached hereto ("Affected Territory"). Section 2. Purpose. By Ordinance 2829, the City Council established the San Miguel Ranch Fiscal Deficit Account. Pursuant to Sections 3 and 5 of Ordinance 2829, the purpose of this ordinance is to establish the pelmanent funding mechanism to pay the City for !/kZ -. - ...--.- ----------.......-.-.-.. . .---" .--- ORDINANCE NO. PAGE 3 conducting 15 annual fiscal reviews and analyses, and for any fiscal deficits resulting ITom the San Miguel Ranch project. Section 3. Finding of Urgency That the City Council of the City of Chula Vista finds that it is necessary that this ordinance go into effect immediately to enable the collection of the San Miguel Ranch Fiscal Deficit Fee at the time ofthe issuance of the building permits for each dwelling unit, so that the San Miguel Ranch property pays its fair share of the cost of delivering City improvements and services during the development ofthe project, and thereby mitigate any fiscal impact to the City. Immediate implementation ofthis fee is necessary due to current and immediate threat to public safety which will result should there be a shortfall in the amount of money necessary to provide City improvements and services. The City Council finds that the prospect of a financial shortfall and concern about increasing charges to existing City property own~rs constitutes a current, immediate threat to the public health, safety and welfare justifying the immediate imposition of this fee. Section 4. Establishment of Building Permit Fee A San Miguel Ranch Fiscal Deficit Fee ("Fee") to be expressed on a per- residential-dwelling-unit basis, shall be paid prior to the issuance of a building permit for any residential project with the Affected Territory. Section 5. Determination of Dwelling Units Each single family attached and detached dwelling unit shall be considered one dwelling unit for purposes of this Fee. Each multi-family attached and detached dwelling unit shall also be considered a dwelling unit for the purposes of this Fee. Commercial and other non-residential uses shall not be charged this Fee. Section 6. Time to Determine Amount Due; Advance Payment Prohibited. The Fee for each residential dwelling unit shall be calculated at the time of building permit issuance and shall be the amount as indicated at that time and not when the tentative map or final map was granted or applied for, or when the building permit plan check was conducted, or when application was made for the building permit. The Fee shall be adjusted from time to time as the City determines appropriate. Section 7. Amount of Fee. The Fee shall be calculated at the following rates: $896.00 for each dwelling unit issued a building permit during calendar year 2001; and $922.00 for each dwelling unit issued a building permit during calendar year 2002; and $950.00 for each dwelling unit issued a building permit during calendar year 2003; and II A .. 3 -" _.,---_...~ ..-.-,---,,----..----"'--- ORDINANCE NO. PAGE 4 $979.00 for each dwelling unit issued a building permit during calendar year 2004; and $1,008.00 for each dwelling unit issued a building permit during calendar year 2005. The calculation of the initial Fee for the San Miguel Ranch Fiscal Deficit Fee is shown in Exhibit 3. Should issuance of building permits for residential dwelling units continue beyond calendar year 2005, the fee shall be increased an additional 3% (percent) for each subsequent calendar year, and the increased fee shall be applied to all residential units issued building permits in that calendar year. The City Council intends to review the anmunt of this Fee annually or fi:om time to time. The City Council may, at such reviews, adjust the amount of this Fee as necessary to assure compliance with the purposes of this Fee as set forth herein, and the San Miguel Ranch SPA Plan and PFFP/FIA. Section 8. Authority for Accounting and Expenditures. The proceeds collected from the imposition of this Fee and any interest earned thereon shall be deposited into the San Miguel Ranch Fiscal Deficit Account established by Ordinance 2829, and such proceeds shall be expended only for the purposes and under the authorities set forth in that Ordinance 2829. Section 9. Revision and Refund of Fees. At such time as the City Council determines that this Fee is no longer required to be collected for the purposes set forth herein, the Fee shall be suspended. If the Fee is suspended as provided above, the Finance Director shall provide a report to the City Council summarizing the revenues and expenditures to date resulting from the Fee. If there are surplus funds available, the City Manager shall provide a recommendation to the City Council on the most fair and equitable disposition of any excess Fees that may have been collected. In the absence of an alternative determination of fairness by the City Council, a refund which divides the remaining unused balance by the residential units for each developer or applicant who has paid the Fee shall be deemed a fair method. Section 10. Findings. The City Council of the City of Chula Vista does hereby find that the establishment of the Fee is necessary to protect the public safety and welfare, to ensure the effective implementation of the San Miguel Ranch SPA Plan, and is reasonably related to the development of the San Miguel Ranch Project, for the following reasons: ORDINANCE NO. PAGE 5 A. The San Miguel Ranch Tentative Map Resolution, Condition of Approval #95 requires that a Fiscal Deficit program be established to correct any annual operating deficiencies incurred by the City as a result of the development of the San Miguel Ranch Project. This program will finance the cost of 15 annual reviews and analyses of the fiscal impact of the Project upon the City, and payment of any fiscal deficits identified by those annual reviews. B. The San Miguel Ranch PFFP/FIA produces a representation of the project's fiscal impacts upon the City for any given year to the buildout of the project. C. It is projected that the City's operating deficits will result from residential development, not commercial or industrial, so the proposed fees are to be tied to residential units, both single family and multi-family. D. The amount of the Fee levied by this ordinance to fund the annual fiscal deficit analyses does not exceed the estimated cost of providing this service. E. The collection of the Fee established by this ordinance at the time of the building permit is necessary to ensure that funds will be available for the purposes described in the San Miguel Ranch PFFP/FIA and in Ordinance 2829. Section 1 t. Fee Additional to Other Fees and Charges. The Fee established by this ordinance is in addition to the requirements imposed by other City laws, policies or regulations relating to the development of San Miguel Ranch. Section l 2. Time Limit for Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by Govenunent Code Section 54995 after the effective date of this ordinance. Section 13. Expiration of This Ordinance This ordinance shall be of no further force and effect 30 days after its adoption. Section 14. Effective Date This ordinance shall become effective immediately upon four-fifths vote. ORDiNANCE NO. PAGE 6 Presented by Approved as to form by Robert A. Leiter J~o'hn Director of Planning & Building City Attorney Exhibit 1: Area Subject to Fiscal Deficit Fee Exhibit 2: Excerpt from PFFP/FIA Identifying the San Miguel Ranch Project's Fiscal Deficit Exhibit 3: Table of Potential Funding Alternatives for Fiscal Operating Deficit H:\shared\planning\ smr-fiscalordinance.urg.doc) Area Subject to Annual Fiscal Ileficit Fee SDG&E BONITA / BUNNY~IDE MIGUEL SUB-STATiON HALE'S BONITA MEADOWS CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT TRI MARK PACIFIC-SAN MIGUEL LLC. PROJECT DESCRIPTION: ^.PUC^.~ San Miguel Ranch: PROJECT Unincoq~orated County area adjacent LOCATION: to the northerly boundary of Cht~la Vista. Fiscal Impact Review Ordinance ,, i An ordinance establishing a Fiscal Impact Review Process SCALE: FILE NUMeER: and Fund for the San Miguel Ranch Planned Community, NORTH No Scale PCM - 96-04 Fiscal Analysis handles the'maintenance of ciD' parks and provided park maintenance costs ofS8.399 per public park acre. CIC allocated the park cost on a per acre (340 acres citvwide and 12.45 required acres for San Miguel Ranch) and recreation costs on a per housing unit basis. Annual park maintenance costs allocaled to San Migud Ranch are estimaled at $104.568 at build*out ($8.399 * 12.45). Vista Mother Miguel does not include an>' park uses. However. park costs of $8.399 X .4 acres were applied because of the city's requirement for 3 acres of park per 1.000 population. Therefore, annual park maintenance engineering costs for Vista Mother Migud are $3,400. Excluding the Women*s Club, which is assumed to be self-supporting, costs for recreation services total $46 per housing unit. Using this multiplier, resuhs in costs of $64,600 for the San Miguel Ranch (refer to Table A-18) and $2,000 for Vista Mother Miguel (refer to Table B-18). The following table details the cost allocation for Parks and Recreation. 98/99 Budget Cost Allocation Unit/Acre Parks $3,127,684 $8.399 per park acre Administration-Parks 374.260 Administration-Open Space 334.552 Provided by lighting & landscape diswict Maintenance 2,418.870 Gsneral 2,147,445 Marina Park 271,425 Not applicable Recreation $2,502,606 $46 per housing unit Athletics 260,720 $5 per housing unit Aquatics 516,172 $10 per housing unit Senior Citizens 288.839 $5 per housing unit General 1,062.615 $20 per housing unit Administration-Recreation 374.260 $7 per housing unit Net Fiscal Impact Utilizing the previously mentioned methodologies, estimated net fiscal impacts are presented in Tables 61 and 62. As previously mentioned, ail values are in 1998 dollars. No annual adjustments to revenues or costs were utilized. The estimated annual flows of costs and revenues are primarily related to the estimated project absorption. Table 61 presents the results of the fiscal impact associated with the S an Miguel Ranch. Fiscal revenues range from $219,500 in the first >,ear of development (2001) to $1,137~300 at build-om (2006). Fiscal expenditures range from $219,1'00 in year one m $1,262,400 at build-out. The net fiscal impact from developing the San Miguel Ranch is a positive $400 in year one and becomes a negative $125,100 at project build-out. It should be noted that during some years the net fiscal impact will be more or less due to iafi-equently needed street repairs. San Miguel Ranch ?ublicFacilitiesFinanzePlan 4.4.14-i8 ~l~y~ I ~11 I ~ San Migue] Ranch consists of a typical mixed landmse plan including single family homes. multi-family homes, neighborhood shopping center, parks and school. The homes range from $140.000 for a multi-family unit to $400.000 for a single family home on a large lot. The median ho.using price and associated estimated household income for San Miguel Ranch are significantly higher than ~he overall ciU'. The San Miguel Ranch is expected to generate higher Lan average per unit properly and sales taxes. Other revenues are expected lo be at or above city averages. In terms of expenditures, this project is not expected to incur any unusual or higher than average costs for city services. The primary, factor responsible for this project's negative fiscal impact is primarily due to the relatively small city share of property taxes under the existing annexation agreement with the Count)'. Because the project is currently located in the County of San Diego and proposed to be annexed into the City of Chula Vista, the city's share of property tax is determined by the City/County Master Tax Agreement. which limits the city's share to 8.6 percent. For properties located within the City of Chula Vista. the average ciw. share of property tax is roughly 14.7 percent. If San Miguel Ranch utilized a 14.7 percent share, the fiscal impact would be positive for all )'ears presented in Table 61. The last >'ear presented based on a 14.7 percent share would be positive $98.200. Table 62 presents the results of the fiscal impact associated with Vista Mother Miguel. Fiscal revenues are 532,700 in ),ear 2002 and remain the same throughout the presented developm:nt schedule, due to forecasted one-year absorption schedule. Fiscal expenditures are $34,700 in 2002 and increase to 535,000 at build-om. The increase in expenses is related to the infrequent s~reet repair costs. The net fiscal impact from developing Vista Mother Miguel is a negative $2,000 for all presented years except the year 2006 ($2~300), which includes street maintenance costs. Similar to San Miguel Ranch, the median housing price and associated estimated household income for Vista Mother Miguel are significantly higher than the overall city. Vista Mother Miguel is expected to generate higher than average per unit property and sales taxes. Other revenues are expected to be at or above city averages. In terms of expenditures, this project is not expected to incur any unusual or higher than average costs for city services. This project is also proposed 'to be annexed into the city.', which limits the city's share of property tax to 8.6 percent. For both the San Miguel Ranch project and the Vista Mother Miguel subdivision, Lhe City and the developer will negotiate and establish a fee program to off%et the projected fiscal deficits ffirough a condition of approval of the SPA and/or tentative subdivision map. · San .IVligu.el~anch . Fiscal Analysis Table 61 NET FISCAL IMPACT OF THE SAN MIGUEL RANCH ON THE CITY OF CHULA VISTA Revenue Sources Revenues (In Thousands) 2001 2002 2003 2004 2005 2006 Secured ProperS.' Tax S60.4 $131.4 $196.5 $262.3 S314.7 $314.7 Unsecured ProperDj Tax $0.0 $0.0 $0.0 $0.0 $3.3 $3.3 Property Transfer Tax $5.5 $12.0 $17.9 $24.0 $27.9 $27.9 Sales & Use Tax $87.0 $188.5 $265.6 $352.9 $451.1 $451.1 Franchise Tax $4.7 510.2 $14.4 $19.1 $30.8 530.8 TOT Tax $0.7 $1.5 $2.1 $2.7 $4.0 $4.0 Utility Tax $6.4 5;13.8 $19.5 $25.9 $41.7 $41.7 Business License $0.0 $0.0 $0.0 $0.0 5;;6.3 $6.3 Miscellaneous Revenues $54.8 $118.8 $167.4 5;222.4 $257.6. $257.6 TOTAL REVEN~JES $219.5 $476.1 5683.3 5;909.3 $1,137.3 $1,137.3 Expenditure Sources Expenditures (In Thousands) 2001 2002 2003 2004 2005 2006 Government Admin. $39.8 $94.1 $137.2 $185.0 $225.6 $229.3 Planning $3~8 $8.3 $11.7 $15.6 $19.1 $19. I Police $88.9 5192.6 $271.5 5;360.7 $467.4 $467.2 Fire $36.2 $78.4 $110.5 $146.9 $I80.1 $180.1 LibraD' $22.2 $48.0 $67.7 5;;89.9 $103.0 $103.0 Public Works $14.2 $33.5 $48.7 $65.7 $77.6 $94.5 Park and Recreation 513.9 $62.9 $108.0 $154.7 $169.2 $169.2 TOTAL EXPENDITURES $219.1 S518.0 $755.4 $1,018.4 S1,241.7 Sl,262.4 2001 2002 2003 2004 2005 2006 TOTAL REVENUES $219.5 $476.1 $683.3 5;909.3 $I,137.3 $1,137.3 TOTALEXPENDITUKES $219.1 $518.0 $755.4 $1.018.4 51.241.7 '$1_262.4 NET FISCAL EVIPACT S0.4 ($41.9) (572.0) ($109.1) ($104.3) ($125.1) San Miguel Ranch Public Facilities Firmnce Plan 4.4.14 - 20 Table 62 NET FISCAL IMPACT OF VISTA YIOTHER YIIGUEL ON THE CITY OF CHULA ¥1STA Revenue Sources Revenues (In Thousands) 2001 2002 2003 2004 2005 2006 Secured Propert3., Tax 5;0.0 $9.8 59.8 $9.8 59.8 59.8 Unsecured Property Tax 5;0.0 S0.0 S0.0 5;0.0 S0.0 S0.0 Property Transfer Tax $0.0 $0.9 $0.9 5;;0.9 5;;0.9 S0.9 Sales & Use Tax $0.0 $12.5 $12.5 $12.5 5;12.5 $12.5 Franchise Tax 5;0.0 $0.7 $0.7 $0.7 $0.7 $0.7 TOT Tax $0.0 $0.1 S0.1 5;;0.1 $0.1 $0.1 Utili~.' Tax 5;0.0 $0.9 $0.9 $0.9 5;;0.9 5;;0.9 Business License $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Miscellaneous Revenues $0.0 $7.9 $7.9 $7.9 $7.9 _$7.9 TOTAL REVENUES $0.0 $32.7 S32.7 $32.7 5;32.7 S32.7 Expenditure Sources Expenditures (In Thousands) 2001 2002 2003 2004 2005 2006 Government Admin. $0.0 $6.3 $6.3 $6.3 S6.3 $6.4 Planning 5;0.0 $0.6 S0.6 $0.6 5;0.6 $0.6 Polize 5;0.0 S12.7 512.7 $12.7 $12.7 $12.7 Fire $0.0 S5.2 S5.2 $5.2 $5.2 $5.2 '-- - Lib?ary $0.0 $3.2 $3.2 5;3.2 5;3.2 5;3.2 Public Works $0.0 51.4 51.4 $1.4 5;1.4 21.7 Park and Recreation $0.0 55.4 $5.4 $5.4 25.4 $5.4 TOTAL EXPENI)ITUR_ES $0.0 S34.7 S34.7 234.7 $34.7 S35.0 2001 2002 2003 2004 2005 2006 TOTAL REVENUES S0.0 532.7 532.7 532.7 $32.7 532.7 TOTAL EXPENDITURES S0.0 5;34.7 534.7 $34.7 $34.7 $35.0 NET FISCAL Lb'fi'ACT 5;0.0 ($2.0) (S2.0) (5;2.0) (5;2.0) (S2.3) San Miguel Ranch 4 4. 1.-4- - 91 r~.,~.~:A r'__:, ....... REOBVED CIC RESEARCH, INC Economic Research · Marketing Research o Environmental Research o Sun/ey Research January 4, 2000 Mr. Ed Batchelder City of Chula Vista 3115 Four[h Avenue, Suite R Chula Vista CA 91910 Re: San Miguel Ranch Fiscal Deficit Funding Alternatives Dear Ed: The purpose of this letter is to present potential funding alternatives for the identified San Miguel Ranch fiscal operating deficit. The fiscal analysis presents an estimated annual net fiscal impact over the proposed development period (2001 to 2005) and one year beyond, to account for some public works costs, which do not occur until after 5 years. The fiscal impact was slightly positive in the first year and negative in the 2no through the 6th year. At build-out, the estimated annual fiscal impact was a negative $125,000 (current 1999 dollars). At the request of the City of Chula Vista, CIC developed two 'Funding alternatives for the forecasted fiscal impact deficit. The inciuded table presents the' net fiscal impact for the presented development period and an additional 25 years beyond build-out. Although very unlikely, for the purpose of this analysis, CIC assumed the City of Chuta Vista's public costs and revenues would adjust at the same rate over the subject period. From 2006 to 2030 the fiscal deficit is assumed to remain at an annual 2125,000 (FY 99/00 dollars). CIC presented different time periods for which the developer could be responsible for the fiscal deficit. Aisc presented in the table is the estimated annual number of housing units built and sold. This absorption period was utilized in CIC's fiscal reporL The table presents two funding alternatives for 5 different time periods. Although the identified fiscal deficit could continue indefinitely, it is very difficult to f6reCast future revenues and expenditures. The presented time pedods range from a six year (consistent with the fiscal analysis) period to a 30-year pedod. The two funding alternatives include a one-time payment and a per-housing unit fee. The per-unit fee is to be paid at the same time as the building permit, based on the presented building schedule. Both methodologies utilize a discounted cash flow analysis (Net Presedt Value) of the annual deficit. In both altema'~ives a net present value was calculated ~r[ilizing a 3 ¢ercent E36f ~cke~ St/eot · Sa~ Diego, CCalifomJa Teleph~ne. (519) ~37..40DOoFax; (61g) 637-4040 01/,04/00 TL'£ 14:00 ?~X 6]9 637 4040 C I C RESEARCH Mr. Batchaider _ January 4, 2000 page 2 discount rate, which assumes that the difference between inflation and interest rates is 3%~ per year. The one-time payment-funding alternative ranges from $397,000 (assumes the developer is responsible for a 6-year pedod) to $2,170,000 (assumes the developer is responsible for a 30-year period). These one-time payments represent the net present values (NPV) of the presented cash flows utilizing the 3% discount rate. The per-unit fee is based on the above net present values divided by the number of units proposed and increased three percent each year to adjust for inflation. This fee ranges from a low of $293 (2001 dollars for a 6-year period) to a high of $1,805 (2005 dollars for a 30-year pedod) per housing unit, based on the presented absorption schedule. Based on discussions with City of Chula Vista's department heads, a pedod to include 10 years beyond the build out represents an equitable time period for which the developer should be responsible for the fiscal deficit. This represents a 15-year pedod from 2001 to 2015. Utilizing the two presented funding alternatives results in a one time fee of $1.2 million or a per- building permit fee, which ranges from $896 in 2001 to $1,008 by 2005. Sincerely, Mark Crooks Senior Market Analyst MCC:slf The 3% discount rate was calculated using a 3% inflation rate and a 6% return on funds. CIC Re~eam~, Ina. 836t ~ckers ~et . San Die~, ~ie g2111-2112 01/04/00 TL'E 14:00 F&X 619 637 4040 C I C RESEARCH Proposed San Miguel Development Potential Funding Alternatives for Fiscal Operating Deficit Alternative Alternative Per Building Permit Fee One-time 2001 I 2002 2003 2004 i 2005 Time Period Paym, ent (2001 (2002 (2003 (2004 (2005 for Estimates (FY99/00 dollars) dollars) . dollars) dollars) dollars) dollars) 6 Year 2001 to 2006 $396,623 $293 $302 $311 $320 $330 10 Year 2001 to 2010 $785,905 $581 $598 $616 $635 $654 15 Year 2001 to 20!5 $1,212,042 $896 $~22 $950 $979 $1,008 25 Year 2001 to 2025 $1,836,993 $1,357 , $1,398 $1,440 $1,483 $1,528 ~0 Year !.~2_?01 to 2030 $2,170,239 $1,604 $],652 $1,701 . $1,752 $1,805 !) Assumes 3% inflation and 6% interest (net discount rate of 3%) _2) Assumes the City of Chula Vista's public costs and revenues djust at the same rate over the subject periOd 3) The one-time payment fee is in FY 99/00 dollars, the per building permit tee is presented in 2001 to 2005 dollars. Net Fiscal (O00s) Build-Out Number (FY99/00 Schedule of Years Year dollars) (units) I I I 2001 $0.4i 300 i 2l 2002 ($41.9)] 350 I 3l 2003 ($72.o)l 266 I 4[ 2004 ($109.1); 30t [ 5t 2005 ($104.3)] 177 ! , 6l 2006 ($125.1) 0 ! 7t 2007 ($. 125.1) L__ 8 2008 ($125.1) I 9 2009 ($125.1) [ 10 2010 ($125.1) i 11 2011 ($125.1) I 12 2012 ($125.1) [ 13 2013 ($125.1) i' 14 2014 ($125.1) _ 15 to 30[ 2015 to 2030 ($125.1) per year Source: CIC Research. Inc, December 1999 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA ESTABLISHING THE SAN MIGUEL RANCH FISCAL DEFICIT FEE AS A BUILDING PERMIT BASED FEE TO PROVDE PERMANENT FUND1NG FOR THE PREPARATION OF 15 ANNUAL FISCAL REVIEWS FOR THE SAN MIGUEL RANCH PROJECT, AND FOR THE PAYMENT OF ANY FISCAL DEFICITS IDENTIFIED BY THOSE ANNUAL REVIEWS, AS REQUIRED BY ORDINANCE 2829 WHICH ESTABLISHED THE SAN MIGUEL RANCH FISCAL DEFICIT ACCOUNT WHEREAS, the San Miguel Ranch Sectional Planning Area (SPA) Plan and Public Facilities Financing Plan/Fiscal Impact Analysis (PFFP/FIA) were approved by the City Council on October 19, 1999, by Resolution No. 19631; and WHEREAS, the PFFP/FIA identified that the San Miguel Ranch Project would operate at an annual net fiscal deficit to the City; and WHEREAS, condition no. 22 of Resolution 19631 required the project applicant to establish a mechanism to mitigate that deficit to the City's satisfaction prior to annexation of the project site; and WHEREAS, on February 29, 2000, the City Council approved a Master Tentative Subdivision Map for the San Miguel Ranch project by Resolution No. 2000-068; and WHEREAS, condition nos. 95a. & b. of Resolution No. 2000-068 further specified the Applicant's responsibility to establish an account to finance the preparation of annual fiscal reviews and deficit analyses for the project, and to establish a permanent mechanism, prior to approval of the first Final Map within the project, to pay the City for the ongoing preparation of the annual reviews, and for any fiscal deficits identified by the annual reviews; and WHEREAS, on April 3, 2000, the San Diego Local Agency Formation Commission (LAFCO) adopted a Resolution (Ref. No. R099-42) approving San Miguel Ranch Reorganization subject to conditions, one of which reads "Pursuant to conditions regarding a forecasted annual fiscal deficit, contained in the SPA and Tentative Map, the property owner will establish and fund a mitigating mechanism to the City's satisfaction"; and WHEREAS, on December 19, 2000, in conjunction with actions on annexation of the San Miguel Ranch project area, the City Council approved Ordinance 2829, establishing the San Miguel Ranch Fiscal Deficit Account; and WHEREAS, pursuant to Sections 3 and 5 of Ordinance 2829, the Applicant (NNP-Trimark San Miguel, LLC) ( "Applicant" ) shall, prior to approval of the first Final Map within the project, establish and fund a permanent mechanism to satisfy the Applicant's responsibility for funding preparation of the 15 annual reviews, and for payment of the project's fiscal deficits identified by those reviews; and ORDINANCE NO. PAGE 2 WHEREAS, Exhibit 2 attached hereto is an excerpt fi.om the approved San Miguel Ranch PFFP/FIA and generally describes the forecasted annual fiscal deficit; and WHEREAS, Exhibit 3 attached hereto identifies the proposed San Miguel Ranch Fiscal Deficit Fee which will establish a permanent funding mechanism and ensure payment of said fee to the City prior to issuance of building permits, to mitigate any fiscal deficits resulting fi.om the project; and WHEREAS, the City Council has determined, based upon information presented to it in conjunction with prior action on the Project's SPA, PFFP/FIA, Tentative Subdivision Map and Annexation, that imposition of the San Miguel Ranch Fiscal Deficit Fee on all developments within the San Miguel Ranch SPA Plan area for which building permits have not yet been issued is necessary in order to protect the public safety and welfare, to ensure the effective implementation of the San Miguel Ranch SPA Plan, and is reasonably related to the development of the San Miguel Ranch Project; and WHEREAS, the Project's PFFP/FIA indicates that the City's operating deficits result from residential development, not commercial, so the proposed fees are proposed to be tied to residential dwelling units, both single and multiple family; and WHEREAS, the Environmental Review Coordinator has determined that the action is not a project as defined by the California Environmental Quality Act (CEQA), and therefore is not subject to environmental review. No further action is necessary. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: Section 1. Territory to Which Fee is Applicable. The area to which the San Miguel Ranch Fiscal Deficit Fee herein established shall be applicable is the same as the San Miguel Ranch SPA Plan, and defined by the San Miguel Ranch Reorganization (City Council Resolution 2000-482) and reflected on Exhibit 1 attached hereto ("Affected Territory"). Section 2. Purpose. By Ordinance 2829, the City Council established the San Miguel Ranch Fiscal Deficit Account. Pursuant to Sections 3 and 5 of Ordinance 2829, the purpose of this ordinance is to establish the permanent funding mechanism to pay the City for conducting 15 annual fiscal reviews and analyses, and for any fiscal deficits resulting from the San Miguel Ranch project. ORDINANCE NO. PAGE 3 Section 3. Establishment of Building Permit Fee A San Miguel Ranch Fiscal Deficit Fee ("Fee") to be expressed on a per- residentialqdwelling-unit basis, shall be paid prior to the issuance of a building permit for any residential project with the Affected Territory. Section 4. Determination of Dwelling Units Each single family attached and detached dwelling unit shall be considered one dwelling unit for purposes of this Fee. Each multi-family attached and detached dwelling unit shall also be considered a dwelling unit for the purposes of this Fee. Commercial and other non-residential uses shall not be charged this Fee. Section 5. Time to Determine Amount Due; Advance Payment Prohibited. The Fee for each residential dwelling unit shall be calculated at the time of building permit issuance and shall be the amount as indicated at that time and not when the tentative map or final map was granted or applied for, or when the building permit plan check was conducted, or when application was made for the building permit. The Fee shall be adjusted from time to time as the City determines appropriate. Section 6. Amount of Fee. The Fee shall be calculated at the following rates: $896.00 for each dwelling unit issued a building permit during calendar year 2001; and $922.00 for each dwelling unit issued a building permit during calendar year 2002, and $950.00 for each dwelling unit issued a building permit during calendar year 2003, and $979.00 for each dwelling unit issued a building permit during calendar year 2004, and $1,008.00 for each dwelling unit issued a building permit during calendar year 2005. The calculation of the initial Fee for the San Miguel Ranch Fiscal Deficit Fee is shown in Exhibit 3. Should issuance of building permits for residential dwelling units continue beyond calendar year 2005, the fee shall be increased an additional 3% (percent) for each subsequent calendar year, and the increased fee shall be applied to all residential units issued building permits in that calendar year. The City Council intends to review the amount of this Fee annually or from time to time. The City Council may, at such reviews, adjust the amount of this Fee as necessary to assure compliance with the purposes of this Fee as set forth herein, and the San Miguel Ranch SPA Plan and PFFP/FIA. ORDINANCE NO. PAGE 4 Section 7. Authority for Accounting and Expenditures. The proceeds collected from the imposition of this Fee and any interest earned thereon shall be deposited into the San Miguel Ranch Fiscal Deficit Account established by Ordinance 2829, and such proceeds shall be expended only for the purposes and under the authorities set forth in that Ordinance 2829. Section 8. Revision and Refund of Fees. At such time as the City Council determines that this Fee is no longer required to be collected for the purposes set forth herein, the Fee shall be suspended. If the Fee is suspended as provided above, the Finance Director shall provide a report to the City Council summarizing the revenues and expenditures to date resulting from the Fee. If there are surplus funds available, the City Manager shall provide a recommendation to the City Council on the most fair and equitable disposition of any excess Fees that may have been collected. In the absence of an alternative detemfination of fairness by the City Council, a refund which divides the remaining unused balance by the residential units for each developer or applicant who has paid the Fee shall be deemed a fair method. Section 9. Findings. The City Council of the City of Chula Vista does hereby find that the establishment of the Fee is necessary to protect the public safety mhd welfare, to ensure the effective implementation of the San Miguel Ranch SPA Plan, and is reasonably related to the development of the San Miguel Ranch Project, for the following reasons: A. The San Miguel Ranch Tentative Map Resolution, Condition of Approval//95 requires that a Fiscal Deficit program be established to correct any annual operating deficiencies incurred by the City as a result of the development of the San Miguel Ranch Project. This program will finance the cost of 15 annual reviews and analyses of the fiscal impact of the Project upon the City, and payment of any fiscal deficits identified by those annual reviews. B. The San Miguel Ranch PFFP/FIA produces a representation of the project's fiscal impacts upon the City for any given year to the buildout of the project. C. It is projected that the City's operating deficits Mil result from residential development, not commercial or industrial, so the proposed fees are to be tied to residential units, both single family and multi-family. D. The amount of the Fee levied by this ordinance to fund the annual fiscal deficit analyses does not exceed the estimated cost of providing this service. E. The collection of the Fee established by this ordinance at the time of the building permit is necessary to ensure that funds will be available for the purposes described in the San Miguel Ranch PFFP/FIA and in Ordinance 2829. Section 10. Fee Additional to Other Fees and Charges. The Fee established by this ordinance is in addition to the requirements imposed by other City laws, policies or regulations relating to the development of San Miguel Ranch. Section 11. Time Limit for Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by Government Code Section 54995 after the effective' date of this ordinance. Section 12. Expiration of This Ordinance This ordinance shall be of no further fome and effect when the City Council determines that the accounts are no longer needed for the purposes stated herein. Section 13. Effective Date This ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by Approved as to form by RobertA. Leiter J:~v( v(~ Director of Planning & Building City Attorney Exhibit 1: Area Subject to Fiscal Deficit Fee Exhibit 2: Excerpt from PFFP/FIA Identifying the San Miguel Ranch Project's Fiscal Deficit Exhibit 3: Table of Potential Funding Alternatives for Fiscal Operating Deficit H:\shared\planning\ smr-fiscalordinance.doc) Area Subject to Annual Fiscal Deficit Fee ROAD SDG&E HONITA I SUNNYSIHE MIGUEL HUE-STATION HALE'dS E~ONITA MEADOWS CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT TEl MARK PACIFIC-SAN MIGUEL LLC, PROJECT DESCRIPTION: ^PPU~NT: San Miguel Ranch: pROJECT Unincorporated County area adjacent LOCATION: to the northedy boundary of Chu]a Vista. Fiscal Impact Review Ordinance , An ordinance establishing a Fiscal Impact Review Process SCALE: FILE NUMBER: and Fund for the San Miguel Ranch Planned Community. NORTH No Scale PCM - 96-04 Fiscal Analysis bandies ihe'maimenance of city parks and provided p~k maintenance costs of 58.399 per pubtic park acre. CIC allocated the park cost on a per acre (340 acres citvwide and 12.45 required acres for San Miguel Ranch) and recreation costs on a per housing unit basis. Annual park maintenance costs allocated to San Miguel Ranch are estimated at 5; 104_568 at build-out ($8.399 * 12.45). Vista Mother Miguel does not include an>' park uses. However. park costs of $8.399 X .4 acres were applied because of the city's requirement for 3 acres of park per 1.000 population. Therefore, annual park maintenance engineering costs for Vista Mother Miguel are $3,400. Excluding the Women's Club. which is assumed to be self-supporting, costs for recreation services total $46 per housing unit. Using this multiplier, results in costs of $64,600 for the San Miguel Ranch (refer to Table A-18) and $2,000 for Vista Mother Miguel (refer to Table B-18). The following table derails the cost allocation for Parks and Recreation. 98/99 Budget Cost Allocation Unit/Acre Parks $3,127,684 $8.399 per park acre Administration-Parks 374.260 Administration-Open Space 334.552 Provided by lighting & landscape district Maintenance 2,4 t 8.870 General 2,147/415 Marina Pazk 271,425 Not applicable Recreation 52.502,606 $46 per housing unit Athletics 260,720 55 per housing unit Aquatics 516.172 Sl 0 per housing unit Senior Citizens 288.839 $5 per housing unit General 1,062.615 $20 per housing unit Administration-Recreation 374.260 $7 per housing unit Net Fiscal Impact Utilizing the previously mentioned methodologies, estimated net fiscal impacts are presented in Tables 61 and 62. As previously mentioned, all values are in 1998 dollars. No annual adjustments to revenues or costs were utilized. The estimatad annual flows of costs and revenues are pr/maNly related to the estimated project absorption. Table 61 presents the results of the fiscal impact associated with the San Miguel Ranch. Fiscal revenues range from $219,500 in the first year of development (200I) to $1,137,300 at build-om (2006). Fiscal expenditures range from $219,100 in year one to $1,262,400 at build-out. The net fiscal impact from developing the San Miguel Ranch is a positive $400 in year one and becomes a negative $125,100 at project build-out. It should be noted that during some years the net fiscal impact will be more or less due to infrequently needed street repairs. San Miguel Ranch PubiicFacilitiesFinanzePian 4.4.14-18 ~Y~ I ~ I ~ San Mieud Ranch consis'-s ofa D'pical mixed land-usc plan including single family homes. multi-family homes, neighborhood shopping center, parks and school. The homes range from $140.000 for a muhi-family, unh to $400.000 for a single family home on a large loL The median ho)asing price and associated estimated household income for San Miguel Ranch are significantly higher than the overall civ.'. The San Miguel Ranch is expected to generate higher than average per urdt proper~y and sales taxes. Other revenues are expected to be at or above ci~ averages. In terms of expenditures, this project is not expected to incur any unusual or higher than average costs for city services. The primary, factor responsible for this project's negative fiscal impact is primarily due to the relatively small city share of property taxes under the existing annexation agreement with the County. Because the project is currently located in the County of San Diego and proposed to be annexed into the City of Chula Vista, the city's share of property tax is determined by the City/County Master Tax Agreement, which limits the city's share Io 8.6 percent. For properties located within the City of Chula Vista. the average ciw share of property tax is roughly 14.7 percent. If San Miguel Ranch utilized a 14.7 percent share, the fiscal impact would be positive for all 3,ears presented in Table 61. The last >'ear presented based on a 14.7 percem share would be positive $98.200. Table 62 presents the results of the fiscal impact associated with Vista Mother Miguel. Fiscal revenues are $52,700 in 5'ear 2002 and remain the same throughout the presented development schedule, due to forecasted one-year absorption schedule. Fiscal expendirares are $34,700 in 2002 and increase to $35,000 at build-out. The increase in expenses is related to the infrequent street repair costs. The net fiscal impact from developing Vista Mother Miguel is a negative $2,000 for all presented years except the year 2006 ($2,300), which includes street maintenance costs. Similar to San Miguel Ranch. the median housing price and associated estimated household income for Vista Mother Miguel are significantly higher than the overall city. Vista Mother Miguel is expected to generate higher than average per unit property and sales taxes. Other revenues are expected to be at or above city averages. In terms of expenditures, this project is not expected to incur any unusual or higher than average costs for city services. This project is also proposed to be annexed into the ci~, which limits the city's share of properzy tax to 8.6 percent. For boih the San Miguel Ranch project and the Vista Mother Miguel subdi~sion, the City and the developer will negotiate and establish a fee program to offset the projected fiscal deficits through a condition of approval of the SPA and/or tentative subdivision map. ,~ , .. San .lyligu.elJ~.anch . Fiscal Analysis Table 61 NET FISCAL IMPACT OF THE SAN MIGUEL R.&NCH ON THE CITY OF CHULA ¥1STA Revenue Sources Revenues (In Thousands) 2001 2002 2003 2004 2005 2006 Secured ProperD.' T~LX $60.4 $131.4 5196.5 $262.3 $314.7 $314.7 Unsecured ProperD.' Tax $0.0 $0.0 $0.0 $0.0 S3.3 $3.3 Property Transfer Tax $5.5 $12.0 $17.9 S24.0 $27.9 $27.9 Sales & Use Tax $87.0 $188.5 $265.6 5;352.9 $451.1 5451.1 Franchise Tax $4.7 $10.2 $14.4 $19.1 5;30.8 530.8 TOT Tax $0.7 $1.5 $2.1 $2.7 54.0 $4.0 UtiliB, Tax 56.4 $13.8 $19.5 $25.9 $41.7 $41.7 Business License $0.0 $0.0 $0.0 $0.0 $6.3 $6.3 Miscellaneous Revenues $54.8 $118.8 $167.4 $222.4 $257.6 $257.6 TOTAL R.EVEN-LIES $219.5 S476.1 5683.3 $909.3 $1,137.3 51,137.3 Expenditure Som-ces Expenditures (In Thousands) 2001 2002 2003 2004 2005 2006 Government Admin. $39.8 $94.1 5137.2 $I85.0 $225.6 $229.3 Planning $3.8 $8.3 $11.7 $15.6 519.1 $19.1 Police $88.9 5192.6 5271.5 $360.7 $467.4 $467.2 Fire $36.2 $78.4 $110.5 $146.9 $180.1 LibraD' $22.2 $48.0 567.7 589.9 $103.0 $103.0 Public Works $14.2 g33.5 548.7 $65.7 5;77.6 $94.5 Park and Recreation 513.9 S62.9 5108.0 $154.7 $]69.2 $169.2 TOTAL EXPENDITURES 5219.1 5518.0 S755.4 51,018.4 Sl,241.7 S1,262.4 2001 2002 2003 2004 2005 2006 TOTAL REVENUES $219.5 $476.1 5683.3 $909.3 51,137.3 $1,137.3 TOTAL EXPENDITURES $219.1 5518.0 $755.4 $1_018.4 Sl.24117 '$1.262.4 NET FISCAL I/VWACT $0.4 (541.9) ($72.0) ($109.1) (5;104.3) ($125.1) San Miguel Ranch Public Facilities Finance Plan 4.4.14 - 20 Table 62 NET FISCAL IMPACT OF VISTA MOTHER MIGUEL ON THE CITY OF CHULA ¥1STA Revenue Sources Revenues (In Thousands) 2001 2002 2003 2004 2005 2006 Secured Properly Tax $0.0 $9.8 $9.8 $9.8 $9.8 59.8 Unsecured Proper'fy Tax $0.0 S0.0 S0.0 5;0.0 S0.0 S0.0 Property. Transfer Tax $0.0 $0.9 50.9 $0.9 $0.9 S0.9 Sales & Use Tax $0.0 512.5 512.5 $12.5 $12.5 $12.5 Franchise Tax $0.0 50.7 50.7 50.7 $0.7 $0.7 TOT Tax $0.0 $0.1 $0.1 $0.1 $0.1 $0.1 Utility Tax $0.0 50.9 $0.9 $0.9 $0.9 $0.9 Business License $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Miscellaneous Revenues 5;0.0 $7.9 $7.9 $7.9 $7.9 5;7.9 TOTAL REVEN-UES 5;0.0 532.7 S32.7 $32.7 S32.7 S32.7 Expenditure Sources Expenditures (In Thousands) 2001 2002 2003 2004 2005 2006 Gox eminent Adm in. 50.0 S6.3 $6.3 $6.3 $6.3 56.4 Planning $0.0 $0.6 S0.6 $0.6 $0.6 $0.6 Polize $0.0 5t2.7 $12.7 $12.7 $12.7 $12.7 Fire $0.0 55.2 S5.2 $5.2 $5.2 $5.2 - ' Library 50.0 53.2 $3.2 $3.2 $3.2 $3.2 Public Works $0.0 51.4 $1.4 $1.4 $1.4 $1.7 Park and Recreation $0.0 55.4 55.4 $5.4 $5.4 $5.4 TOTAL EXP E.N2) ITURES $0.0 S34.7 534.7 $34.7 5;34.7 S35.0 2001 2002 2003 2004. 2005 2006 TOTAL REVENUES 5;0.0 532.7 532.7 $32.7 $32.7 $32.7 TOTAL EXPENDITURES $0.0 534.7 534.7 $34.7 S34.7 S35.0 NET FISCAL ][bi:PACT 5;0.0 (S2.0) (52.0) ($2.0) ($2.0) ($2.3) San Miguel Ranch 4.4.14 - 21 Pul~lic Fo,~illti~., !:; ..... ~t~_ "'' CIC RESEARCH, INC. january 4, 2000 Mr. Ed Batcheider City of Chula Vista 3115 Fourth Avenue, Suite R Chula Vista CA 91910 Re: San Miguel Ranch Fiscal Deficit Funding Alternatives Dear Ed: The purpose of this letter is to present potential funding alternatives for the identified San Miguel Ranch fiscal operating deficit. The fiscal analysis presents an estimated annual net fiscal impact over the proposed development period (2001 to 2005) and one year beyond, to account for some public works costs, which do not occur until after 5 years. The fiscal impact was slightly positive in the first year and negative in the 2nd through the 6~h year. At build-out, the estimated annual fiscal impact was a negative $125,000 (current 1999 dollars). At the request of the City of Chula Vista, CIC developed two 'Funding alternatives for the forecasted fiscal impact deficit. The included table presents the' net fiscal impact for the presented development period and an additional 25 years beyond build-out. Although very unlikely, roi' the purpose of this analysis, CIC assumed the City of ChuIa Vista's public costs and revenues would adjust at the same rate over the subject period. From 2006 to 2030 the fiscal deficit is assumed to remain at an annual $125,000 (FY 99/00 dollars). CIC presented different time periods for which the developer could be responsible for the fiscal deficit. Also presented in the table is the estimated annual number of housing units built and sold. This absorpSon period was utilized in CIC's fiscal report. The table presents two funding alternatives for 5 different time periods. Although the identh~'ied fiscal deficit could continue indefinitely, it is very difficul1~ to forecast future revenues and expenditures. The presented time periods range from a six year (consistent with the fiscal analysis) period to a 30-year period. The two funding alternatives include a one-time payment and a per-housing unit fee. The per-unit fee is to be paid at the same time as the building permit, based on the presented building schedule. Both methodologies utilize a discounted cash flow analysis (Net Presedt Value) of the annual deficit. In both altemal~ives a net present value was calculated utilizing a 3 IJercent E36 f Vicker~ Street · San Diego, C~difomia 92111-21~ 2 Teleph~n~($19) E37~OOOoFax:(6~9)637-4040 ~1~ · ~ ~ ~ ~ 01/04/00 TLE 1~:00 FkX 6]9 ~37 4040 C I C RESE.(RCH ~0 Mr. Baicheider ~, ,, _ January 4, 2000 I ! I I Page 2 discount rate, which assumes that the difference between inflation and interest rates is 3%~ per year. The one-time payment-funding alternative ranges from $397,000 (assumes the developer is responsible for a 6-year pedod) to $2,170,000 (assumes the developer is responsible for a 30-year period). These one-time payments represent the net present values (NPV) of the presented cash flows utilizing the 3% discount rate. The per-unit fee is based on the above net present values divided by the number of units proposed and increased three percent each year to adjust for inflation_ This fee ranges from a Iow of $293 (2001 dollars for a 6-year period) to a high of $1,805 (2005 dollars' for a 30-year period) per housing unit, based on the presented absorption schedule. Based on discussions with Oity of Chula Vista's department heads, a period to include 10 years beyond the build out represents an equitable time period for which the developer should be responsible for the fiscal deficit. This represents a 15-year period from 2001 to 2015. Utilizing the two presented funding alternatives results in a one time fee of $1.2 million or a per- building permit fee, which ranges from $896 in 2001 to $1,008 by 2005. Sincerely, Mark Croaks Senior Market Analyst MCC:sIf ~ The 3% discount rate was calculated using a 3% inflation rate and a 6% return on funds. cio Re.~earch, Ins. 8361 ~ckers S~reet * San Die~, ~l~¢ia g2111-2112 Telephone (619) 637~000 . ~: (61gJ ~7~0 01/04/00 Tt'E 14:00 F%X 619 637 4040 C I C RESE&RCH ~0¢ Proposed San Nliguel Development _ Potential Funding Alternatives for Fiscal Operating Deficit Alternative Alternative Per BuildinB Permit Fee One-time 2001 2002 2003 2004 2005 Time Period Paym, ent (200! (2002 (2003 (2004 (2005 I t_~or Estimates (FYg9/00 dollars) dollars) dollars) dollars) dollars) dollars) I 6 Year 2001 to 2006; $396,623 $293 I $302 $311 $320 $330 10 Year ! 2001 to 2010 $785,905 $581 $598 $616 $635 $654 15 Year t 200.1 to 20!5 $1,212,042 $896 $922 $950 $979 $1,008 25 Year 2001 to 2025 $1,836,993 $1,357 $1,398 $1,440 $!,483 $1,528 30 Year / I $1,6041 $1,652 i 2001 to 2030 $2,170,239 . . Z) Assumes 3% inflation and 6% interest (net discount rate of 3%) _2) Assumes the City of Chula Vista's public costs and revenues djust at the same rate over the subject period 3) ihe one-time payment tee is in FY 99/00 dollars, the per building permit'iee is presented in 2001 to 2005 dollars. Net Fiscal (000s) ~uild-Out Number (FY99/00 Schedule of Years Year dollars) (units) 1 2001 $0.41 300 2 2002 ($41.9)! 350 3 2003 (.$72.0) 266 4 2004 ($109.1) 301 5 2005 ($104.3) 177 6 2006 ($125.1) 0 7 2007 ($125.1 8 2008 ($125.1' 9 2009 ($125.1) 1D 2010 ($125.1 11 2Oll ($125.1 12 2012 ($125.1 13 2013 ($125.1 14 2014 ($125.1 15 to 30 2015 to 2030 ($1,25.1 per year ] Source: CtC Research. Inc. December 1999 ?; ~¢ COUNCil AGENDA STATEMENT Item -JfY /2 Meeting Date IlIly 74 7001 ITEM TITLE: PUBLIC HEARING: Regarding the Proposed Assessment of Certain Delinquent Solid Waste Service Charges as Liens Upon the Respective Parcels of land and Placement of Delinquent Charges on the Next Regular Tax Bill for Collection RESOLUTION No. Assessing Delinquent Solid Waste Service Charges as Liens Upon the iiespective Parcels of land and Approving Placement of Delinquent Charges on the Next Regular Tax Bill SUBMITTED BY: Deputy City Manager Powell f:R ~ ~ REVIEWED BY: City Manager ~;)V (4/5ths Vote: Yes ~No-X-) In October, 1998, City Council amended Municipal Code Section 8.24 to establish collection methods for delinquent solid waste service accounts. Pacific Waste Services and city staff estimated that up to 10% of the City's generators were not paying for solid waste services as required by ordinance. Adoption of this resolution will enhance the collection process for delinquent solid waste service charges by reducing the amount of uncollectible losses and ensure that payment will be received on a more timely basis. RECOMMENDATION: That Council open the public hearing to consider assessing delinquent solid waste service charges as liens on the affected properties, consider all testimony, and adopt the resolution overruling all protests and assessing these charges as liens upon the respective parcels of land. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: In November 1998, City Council amended Municipal Code Section 8.24 to require participation in solid waste service and eliminate suspension of solid waste service for nonpayment. To ensure that all residents pay their fair share of the costs of this program, the ordinance also allows delinquent solid waste service charges to be assessed as liens upon the affected properties and ultimately placed on the property tax bills for collection. The ordinance states that upon notification of the property owners, a public hearing is set for solid waste service accounts which are over sixty I:/- Page 2, Item_~- Meeting Date lolly 17 7001 days of delinquent. At the hearing the City Council considers the delinquent accounts together with any objections or protests by interested parties. At the conclusion of the hearing, the City Council, may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the City Council. Lastly, the City Council adopts a resolution assessing such amounts as liens upon the respective parcels of land, and the amounts are charged to the property owners on the next regular property tax bill. As these amounts are collected, the monies are remitted to Pacific Waste Services less the City's Franchise Fees, AB939 fees and late charges. Although this collection process was approved in concept in November 1998, this is the first time the process has been implemented. Pacific Waste Services submitted over 1,000 delinquent accounts valued at $186,000 to the city for collection, and through our own internal collection efforts, city staff has collected $42,500 to date. The remaining 663 accounts totaling $149,900 are being submitted for placement on the next regular tax bill for collection. (listing available at the City Clerk's office). These property owners have been notified of their delinquencies, and two weeks ago, they were notified of the public hearing and were asked to pay their delinquent sewer service charges by July 23, 2001 to avoid a lien being placed on their property. Payment arrangements have been set up as needed, and staff will continue to update this list as payments are received and accounts are cleared. A final list will be submitted to the City Council for consideration as soon as all payments are recorded. Staff is recommending that the City Council approve the final list of delinquent solid waste accounts as submitted, and that these charges be forwarded to the County and assessed as liens on the respective parcels of land and ultimately placed on the next regular tax bill for collection. FISCAL IMPACT: By placing delinquent solid waste service charges on the property owner's regular tax bill, an estimated $102,000 should be collected for FY 01-02 from this collection method. These funds would then be forwarded to Pacific Waste Services less the city's Franchise Fees, AB939 fees and late charges. The city should recognize an estimated $9,200 increase in Franchise Fees, $1,800 in AB939 fees, and $4,500 in late charges for FY01-02. .;J- RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ASSESSING DELINQUENT SOLID WASTE CHARGES AS LIENS UPON THE RESPECTIVE PARCELS OF LAND AND APPROVING PLACEMENT OF DELINQUENT CHARGES ON THE NEXT REGULAR TAX BILL WHEREAS, in October, 1998, the City Council amended Chapter 8.24 of the Chula Vista Municipal Code to establish collection methods for delinquent solid waste service accounts to be placed on the property tax bill for collection; and WHEREAS, the ordinance states upon notification of the property owners, a public hearing is set for solid waste service accounts which are over sixty days delinquent; and WHEREAS, at the hearing, the City Council is to consider the delinquent accounts together with any objections or protests by interested parties; and WHEREAS, at the conclusion of the hearing, the City Council may either approve the delinquency and amount owed on the accounts as submitted or as modified or corrected by the City Council; and WHEREAS, a public hearing on delinquent assessments was properly noticed for July 24, 2001, at which all protests or objections presented were considered by the City Council; and WHEREAS, staff is recommending that the City Council approve the final listing of delinquent solid waste service accounts as submitted and that these charges be forwarded to the County for placement on the next regular tax bill for collection; and WHEREAS, any delinquent accounts that are cleared by July 23, 2001, as a result of the public hearing set for July 24, 2001, will be removed from the list prior to the submittal of these charges to the County. City of protests approve, by staff NOW, THEREFORE, BE IT RESOLVED the City Council of the Chula Vista does hereby (1) overrule any and all or objections presented at the public hearing and (2) with respect to the delinquent account list presented and on file in the office of the City Clerk, assessing d- delinquent solid waste service charges as liens upon the respective parcels of land and the placement of such delinquent charges on the next corresponding regular tax bill unless cleared by July 23, 2001. Presented by Approved as to form by Robert Powell Deputy City Manager J, lattorneylresolsolid waste. delinquency /7- ~ ~\d- . JERRY K. OHM 1571NKOPAH ST CHULA VISTA CA 91911 6 August 2001 To: Chula Vista City Council The following is a listing of numerous proposed changes and corrections to CVMC chapter 8.24 SOLID WASTE AND LITTER, and chapter 8.25 RECYCLING. It is believed that these changes are necessary in order to correct contradictory regulations within the codes, clarify the meaning of the codes and be in the best interest and benefit to all residents in the city. Chapter 8.24 SOLID WASTE AND LITTER 1. Section 8.24.030. This section is vague and undefined; it states that "any accumulation of materials that are dangerous...". The word "materials" is not defined herein or in chapter 8.25. The amount of materials must also be quantified, i.e. is one newspaper dangerous and a fire menace? Are twenty newspapers dangerous and a fire menace? 2. Section 8.24.045. It states that "...it is unlawful for any person to... throwaway solid waste... in a city litter or solid waste containers ...". The definition of "solid waste", per section 8.25.020.lll, specifically excludes hazardous and infectious waste from the term "solid waste", as such it would not be unlawful for a person to dispose of hazardous and infectious waste in city litter containers. The type of waste than can be disposed in city litter containers needs to be clarified. 3. Section 8.24.070. The title "Solid Waste - Collection prohibited when Burning prohibited", is confusing and misleading. It makes you believe that there is a connection between burning and collection of solid waste, the code does not make any such connection, only stating that burning of solid waste is unlawful. (title modified in printed code book) 4. Subsection 8.24.080.A. After the words "... metal or plastic covers and handles, and', delete "which". The word is inappropriate and as written does not make sense. 5. Section 8.24.090. After the words "Containers shall also have tight-fitting lids sufflcient to keep out the rain and prevent ", delete "litter. ", and insert "littering. ". A lid would not prevent or cause litter, it would prevent littering. 6. Section 8.24.090. This section specifies that a fully loaded container shall not exceed 60 pounds. Information provided by Pacific Waste Services, indicate a maximum weight limit of 55 pounds. If the weight limit from Pacific Waste Services is correct and applicable, then the code in this section needs to be corrected. 2 JERRY K. OHM 7. Subsection 8.24.090.C. Per section 8.24.010 Purpose and intent; section 8.24.060 Owner or occupant responsibility to maintain sanitary premises; subsection 8.24.080.C; and subsection 8.24. 180. H. 2; requires the minimum of weeklv collection of solid waste from all residences. In accordance with this subsection 8.24. 090. C Enforcement; generators that fail to place solid waste containers out for collection will be tagged and notified, and are subject to a $10 penalty per incident. Therefore any resident (generator) who does not place solid waste out for collection for anyone week for any reason, or goes on vacation for a few weeks, or any other absences is subject to notification and penalties. The language in this subsection of the code needs to be revised in order that residents can legally not put out a garbage can, when on vacation, or when there is no garbage generated. 8. Subsection 8.24.090.C.3. This section of the code requires that an additional fee be added to the service fee, in order to restart services. In accordance with section 8.24.010, collection of solid waste is mandatory and cannot be discontinued, therefore since service cannot be discontinued; an additional fee to restart services cannot be imposed. As such, subsection 8.24.090.C.3 should be deleted. 9. Section 8.24.100. This section states that "All solid waste placed at such collection points shall be deemed a request for service by the city's contract or franchise agent." In accordance with section 8.24.010, collection of solid waste is mandatory; therefore putting out a garbage can cannot be a request for service. As such this sentence of the code should be deleted. 10. Subsection 8.24.180.C. This subsection requires solid waste service charges for small generators to be billed in advance, while large generators are billed in arrears. This seems to be blatantly discriminatory and unfair to small generators. All utility services and just about every commercial transaction, with the exception of fast food restaurants, services and products are provided before the transaction is billed and paid, including the City's own procedure for sewer service. This subsection of the code needs to be revised to not only provide for billing in arrears for small generators, but also to exclude periods when no services were provided. The billing for solid waste and recyclable services should reflect the period of actual services being provided. For any one week period or longer, that no service was provided (for any reason), the resident should not be billed for. This is a key issue of fairness to consumers. I am sure that other utilities and service providers (energy, water, cable TV, newspaper, etc.) would love to bill their consumers at a constant rate, regardless of the amount of services, or if services were provided. 11. Subsection 8.24. 180.E. This subsection requires the city contract or franchise agent to send a first warning notification to small generators, ten days before the due date, if payment has not been made. Again this is blatantly discriminatory and unfair. If the bill is not due, then no waming notifications are to be made. I know of no other institution that would engage in this reckless type of billing procedures. 3 JERRY K. OHM 12. It is noticed thatlhe numbering and lettering of subsection 8.24.180. H has been changed from the signed and dated copy of the code (ordinance 2764), to the commercial printed copy of the code. Subsection 8.24.195 has also been altered by changing the number and a word. The legal implications of these changes need to be addressed and corrected as required. The numbering and identification of subsections, as written in the signed and dated copy of the code is used below. 13. Subsection 8.24.180. H. This subsection list's three specific situations (subsections 8.24.180.H.1, 2, & 3) for which and exemption can be applied for. Subsections 8.24.180.H.4 & 5 apparently do not require an application for exemption. 13a. Subsection 8.24. 180.H. 1. Vacancy Exemption for Unoccupied Premises: This subsection requires that owners apply for an exemption if the property is vacant. In no way should a vacancy require an owner to apply for an exemption. When an owner or tenant vacates a property, he notifies Pacific Waste Services, and the billing is stopped and/or started at the new location. For the city and its franchise agent to request payment, when no services have been provided (and have been notified of vacancy) is nothing less than extortion. This problem is further exacerbated by the practice of the city, to not approve exemptions unless the property is vacant for at least two month (as stated and written by Mr. Meacham). I am sure that our utility providers would love to bill us for an additional two month of services when we leave or are not using the services. As stated, vacancy cannot be grounds for an exemption, the code needs to be revised to include only those provisions that apply to retroactive refunds of payment in case of death or similar hardship, and the requirements to restart service upon occupancy. 13b. Subsection 8.24. 180.H.2. Self-Haul: The following sentence of this subsection needs to be deleted; "Such persons must provide weekly receipts for disposal at a state-permitted landfill or transfer station and/or appropriate recycling facility at the end of each billing cycle or upon demand by the city or its contract or franchise agent." By eliminating the requirement for weekly receipts, would permit residents to haul their own solid waste, as residents of other nearby cities are permitted to do. As the code is currently written, why would anyone self-haul at the rate of $120 per bi-monthly period (at the current rate of $15 per week) versus the $27 charge from Pacific Waste Services? There certainly may be a situation where it would be beneficial to self-haul at the rate of $120, however I can not think of any. To allow a resident to self-haul is clearly authorized in section 8.24.070. 13c. Subsection 8.24. 180.H.2.d: This subsection is in conflict with itself. Section 8.24.180.H.2 states in part, "Occupant or tenant of premises maV....remove or convey waste and/or recyclables for processing and disposal... ". Then it states that "Persons provided an exemption....mav not: ... d) dispose of designated recyclables... ". Either on can or cannot dispose of recyclables, it cannot be both. CITY COUNCIL AGENDA STATEMENT Item: Meeting Date: 8/7/01 ITEM TITLE: Public Hearing: PCC-00-58; Conditional Use Permit to install, operate and maintain a wireless communications facility consisting of a 66-foot-high light standard supporting nine antennas; and an associated equipment building at an unlit baseball field within Rohr Park, 4548 Sweetwater Road. Applicant: Cox/Sprint PCS Resolution: of the City Council of the City of Chula Vista granting a Conditional Use Permit, PCC-00-58, to Cox/Sprint PCS to construct an umnanned cellular communications facility at 4548 Sweetwater Road (Rohr Park). SUBMITTED BY: Director of Planning and Building/~ REVIEWED BY: City Manager ~.~? /'z/ (4/Sths Vote: Yes No X) Cox/Sprint PCS is requesting a Conditional Use Permit to construct and operate an unmanned cellular communications facility at 4548 Sweetwater Road (Rohr Park). The project will consist of a 384-square-foot equipment and storage building, and a 66-foot-high light standard supporting nine antennas. The light standard location is proposed in the right field of a currently unlit baseball diamond at the park. The City will use revenue generated from the antennas to purchase and install five additional lights at the ball field. In accordance with the California Environmental Quality Act (CEQA) city staffprepared an Initial Study (IS-01-044), and the Environmental Review Coordinator posted notice of a Mitigated Negative Declaration (MND) on May 29, 2001. BOARDS/COMMISSIONS RECOMMENDATION: On January 17, 2001, this project was brought before the Planning Commission. Public testimony was heard; however, there was no discussion. The project was continued until the Initial Study for the six light standards could be completed. (See minutes, Attachment 3.) On June 18, 2001, the Resource Conservation Commission determined that the Initial Study prepared for this project was adequate, and recommended adoption of a Mitigated Negative Declaration. The public comment period, as noticed by the Environmental Review Coordinator regarding the Mitigated Negative Declaration (MND), ended on July 5, 2001. On July 1 I, 2001 this project was brought back to the Planning Commission, who voted 5-0-1-1 to adopt Resolution PCC-00~58, which recommends that the City Council adopt the Mitigated Negative Declaration and approve the Conditional Use Permit for PCC-00-58. --! Page 2, Item: Meeting Date: 8/7/01 RECOMMENDATION: That the City Council adopt the resolution adopting the Mitigated Negative Declaration and approving a Conditional Use Permit for a wireless con~nunications facility in Rohr Park, subject to the conditions of approval (including the mitigation monitoring and reporting program measures). DISCUSSION: 1. Site Characteristics The project site is an unlit baseball field, east and across the parking lot from a lit baseball field, within a 23-acre public park owned by the City of Chula Vista. It is accessed by a 400-foot-long driveway to the north thai runs parallel to Sweetwater Road, which is about five feet higher in elevation than the field. There is a dirt parking lot east of the field, and a paved parking lot west of it. Between the paved parking lot and the field are a block wall restroom building and a few small trees. The baseball field consists of a clay infield surrounded by a grassy outfield. A chain link fence encloses the diamond on three sides, and spectator bleachers are positioned on two sides. There are some light poles in the paved parking lot, but there are currently none in the ball field. 2. General Plan, Zoning, and Land Use General Plan Zoning Current Land Use Site: Public & Open Space AD-Agricultural with Rohr Park Parks & Recreation design overlay North: Residential, Low Residential (County) Single-Family Residential South: Public & Open Space AD-Agricultural with Rohr Park Parks & Recreation design overlay East: Residential, RE-Residential Estates Vacant Low-Medium West: Residential, Low RED-Residential Estates Single-Family Residential with design overlay 3. Proposal Cox/Sprint proposes to construct an unmanned cellular communications facility at 4548 Sweetwater Road, specifically, a 66-foot-high light standard pole consisting of lights at approximately 55 feet up the pole, and nine antennas (each of which is approximately six- Page 3, Item: Meeting Date: 8/7/01 feet-long and eight-inches-wide) above the lights. The pole would be placed on the southwestern edge of the infield, near right field. Telephone, electrical and radio equipment would be placed in a 384-square-foot building to be constructed directly north of an existing restroom building west of the ball field, and would be constructed of the same materials as the restroom building (block wall with asphalt shingles). The new building would also include a storage area for the park. The proposed site would provide service to portions of Sweetwater Road, commercial areas along Bonita Road, and surrounding residential areas. The revenue generated to the City of Chula Vista by lease for the proposed antenna/light standard in Rohr Park would be approximately $87,000 over a five-year time period. If Council approves this Conditional Use Permit, the city plans to enter into an agreement with the applicant that would result in prepayment of up to $87,000 for installation of five other lights in the ball field, as the one light standard this project proposes would not adequately light the field. (After five years, applicant would pay the city a monthly use fee of approximately $1,650.) The 60-70-foot-high lights would be installed in conjunction with the proposed light standard, or shortly thereafter. The City's Parks & Recreation Department is supportive of this proposal, as this would provide the park with a second lit baseball field. The proposed light standard supporting nine antennas is an Unclassified Use, according to Section 19.54 of the City of Chula Vista Municipal Code. Section 19.54.010 states that matters "possessing characteristics of such unique and special form as to make impractical their being included automatically in any classes of use as set forth in the various zones herein defined" are unclassified uses, and, as such, are required to have Conditional Use Permits. Section 19.54.020 requires the project to be considered by the City Council, upon recommendation by the Plarming Commission. 4. Analysis Location: In order to accomplish its desired radius of service, the applicant originally evaluated at least three other locations to place antennas. Those locations included a church in San Diego County at the intersection of Sweetwater Road and Bonita Road; the Kaiser Permanente building at the intersection of Willow Street and Bonita Road; and the water tank on Greenwood Place. It was determined that the buildings on the south side of Bonita Road were too low to meet the applicant's objectives. Therefore, the applicant concentrated on locations north of the Sweetwater River, and determined that the Rohr Park location could serve a broad area, requiring only one antenna site rather than two or three to accomplish the desired radius of service. Page 4, Item: Meeting Date: 8/7/01 The city encourages applicants of wireless telecommunications facilities to co-locate with other companies whenever possible in order to keep the number of new poles and structures to a minimum. There are currently very few wireless communication facilities within the city limits in the region where the light standard/antenna is proposed, however. Two companies have co-located through architectural integration at the intersection of Willow Street and Bonita Road, and one company has architecturally integrated on the water tank at Greenwood Place. The water tank was determined to be too high for the applicant's objectives. Public Concerns: This project was originally scheduled to go before the Planning Commission on December 13, 2000. Ten days prior to that hearing, a public notice was sent to all property owners within 500 feet of the boundaries of the parcel where the antennas were proposed, and a notice was published in The Star News. On the afternoon of December 13~, staff received three letters opposing the project, and a petition with 14 signatures opposing the project (see Attachment 4). The petition stated: This petition is in opposition to the proposed issuance of a conditional use permit to Cox/Sprint for the construction of a wireless antenna on the grounds that the proposed project is environmentally unsafe. That the proposed project is adjacent to and near a populated Bonita community in front of Rohr Park that will be adversely impacted. That the Envkonmental Review Coordinator has erred in not requiring an environmental impact report and the Chula Vista Planning Commission not issue a permit. That the proposed project is in violation of the California Environmental Quality Act which requires an environmental impact report that will study in detail the impact of the proposed project on the adjoining residents and property owners of the Bonita community. In light of community concerns, the project was continued umil January 17, 2001 so that Planning staff and the applicant could meet with residents to address questions and discuss concerns, prior to the public hearing. A community meeting was held on January 16, 2001, and was attended by seven private citizens, in addition to the applicant and Planning staff. A verbal summary of that meeting was delivered to the Planning Commission by Planning staff during the advertised public hearing on January 17, 2001 (see minutes, Attachment 5), and copies of the December 13, 2000 letters and petition from citizens opposing the project were attached to the planning commissioners' January 17 staff reports. The three primary concerns expressed by citizens were: 1. That the monopole would be the tallest structure in the area. 2. That putting the monopole in the park is perceived to be a commercial enterprise by Page 5, Item: Meeting Date: 8/7/01 the city. 3. Health concerns. Planning staff explained that topographic maps of the vicinity demonstrate a variety of elevations, and some of the trees in the park are several feet higher than 66-feet. Therefore, it appears that the proposed monopole would not be the tallest structure in the area. Staff also explained that the FCC regulates wireless communications facilities in order to ensure they comply with all health and safety standards; therefore, city government is not legally entitled to deny a wireless communications facility proposal on the basis of health and safety concerns. After Planning staff and the applicant presented the project, public testimony was heard. Six citizens spoke, reiterating concerns expressed at the community meeting held on January 16. (See Attachment 3 for January 17, 2001 Planning Commission minutes.) There was no discussion because it was determined that the project should be continued until an Initial Study could be conducted for the six ballpark lights that would be erected if the Conditional Use Permit for the antennas on a light standard was approved. The project was continued to when the Initial Study would be completed. Planning staff called each of the citizens who spoke at the January 17~h Planning Commission hearing and informed them of the July 11, 2001 Planning Commission hearing. Public notices were sent and a notice was published in The Star News, once again, for the July 11"~ hearing. One citizen (Mike Kujawa) attended the Planning Commission public hearing for this project on July 11"~. Previously, he had attended the community meeting on January 16, 2001 and spoken at the Planning Commission hearing on January 17, 2001. Also, he had written a letter and submitted the petition opposing the project back in December 2000. At the July 11'h meeting he reiterated his concerns regarding safety, and stated he is opposed to the project because: 1) He is opposed to "commercial use of Rohr Park." 2) The project will only serve Sprint customers. 3) The antennas are "visual pollution." After the July 11~' Planning Commission hearing, Planning staff was contacted by a citizen (Christa Hoffman) who was unable to attend the meeting. She had stated her opposition at previous meetings, and said she is still opposed to the project. In particular, she has concerns about the safety of the antennas, and had been under the impression that the Initial Study was required for safety issues related to the antennas, not for impacts from the lights. Staff has since provided Ms. Hoffman with FCC publications regarding wireless communications facilities and how they are regulated. Page 6, Item: Meeting Date: 8/7/01 Conclusion With the attached conditions of approval, the proposal is consistent with the City of Chula Vista Municipal Code and the General Plan. Therefore, staff recommends approval of the proposed conditional use permit in accordance with the attached City Council resolution. FISCAL IMPACT: There will be no fiscal impact to the General Fund. The applicant will be responsible for all processing fees. Attachment I of the Master Licensing Agreement between the city and Cox/Sprint states that: Prior to the comanencement of construction [of the light standard and antennas in Rohr Park], Sprint shall, in lieu of rent for the first five-year term as described in Section IV.A of the agreement, pay the city the full cost of the purchase and installation of the remaining [five] poles and lights for the field, but not more than the equivalent 5-year rental fee of approximately $87,000. Attachments 1. Locator Map 2. Planning Commission Resolution 3. Minutes from 1/I7/0l PC Meeting 4. Letters and petition from concerned citizens 5. Minutes from 7/11/PC Meeting 6. Mitigated Negative Declaration 7. Disclosure Statement H:\HOME\PLANNING\KIM\REPORTS\PCC-00-58 Cox Sprint, Rohr.doc ROHR PARK CHULA VISTA MUNICIPAL GOLF COURSE BONITA CENTER ALLEN ELEMENTARY SCHOOL WATER ~ CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PRO~EC~' COY/SPRINT PCS I PROJECT DESCRIPTION: ^PPu~T: CONDITIONAL USE PERMIT PROJECT Rohr Park, ADDRESS: 4548 Sweetwater Road Request: Proposed wireless telecommunications facility consisting of up to (9) panel antennas mounted on SCALE: FILE NUMBER: a 72 foot light standard. All equipment will be located NORTH No Scale PCC 00-*58 on the ground adjacent to the base of the pole. C:\myfiles\lo cators\PCC0058.cd r 01/05/01 / ~ ,~ ~/ ATTACHMENT 1 RESOLUTION NO. PCC-00-58 RESOLUTION OF TI~ CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL GRANT A CONDITIONAL USE PERMIr, PCC-00-58, TO COX/SPRINT PCS TO CONSTRUCT AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT 4548 SWEETWATER ROAD OIOItR PARK). WHEREAS, a duly verified application for a Conditional Use Permit was filed with the City of Chula Vista Planning Department on May 12, 2000 by Cox/Sprint PCS; and WHEREAS, said application requests permission to construct an unmanned cellular communications facility consisting of a 66-foot-high light standard supporting nine antennas, and a 384- square-foot equipment building in the area of a baseball field within Rohr Park at 4548 Sweetwater Road; and WHEREAS, the Resource Conservation Commission determined that the initial study was adequate and recommended adoption of a Mitigated Negative Declaration as to the effects of the proposal on the environment in compliance with the Califomia Environmental Quality Act; and WHEREAS, the Planning Director set the time and place for a hearing on said Conditional Use Permit and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and residents within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and WHEREAS, the hearing was scheduled and advertised for December I3, 2000 at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the Planning Commission; was continued to January 17, 2001 at 6:00 p.m.; and was continued again to July I 1, 2001; and WHEREAS, the Planning Commission considered all reports, evidence, and testimony presented at the public hearings with respect to subject application. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION does hereby recommend that the City Council adopt the Mitigated Negative Declaration and approve Conditional Use Permit PCC-00-58 in accordance with the findings and subject to the conditions and findings contained in the attached City Council Resolution. BE IT FURTHER RESOLVED THAT a copy of this resolution be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF CHULA VISTA, CALIFORNIA, this 11th day of July 2001 by the following vote, to-wit: AYES: Castaneda, Cortes, Hall, Thomas, Willett NOES: ABSTAIN: McCann ABSENT: O'Neil Kevin O'Neil, Chair ATTEST: Diana Vargas, Secretary ATTACHMENT 2 Planning Commission Minutes - 4 - January 17, 2001 2. PUBLIC HEARING: PCC-00-58; Conditional Use Permit to install, operate and maintain a wireless telecommunications facility consisting of a 66-foot high light standard supporting nine antennas, and an associated equipment building at 4548 Sweetwater Road (Ruhr Park). Cox/Sprint PCS. Jim gandovaJ, Assistant Planning Director stated that this item has received a considerable amount of public interest, therefore, staff helcJ a cbmmunity meeting to hear those concerns. The purpose of tonight's meeting is to give the Commission an opportunity to hear comments from the community, and staff is therefore recommending that the Commission not take any action tonight, but that the PubJic Hearing be opened, public testimony be taken, and thatthis item be continued to ,~pri[ 11, 2001 for final action. Background: Klm Vander Bie, Associate Planner, reported that Cox/Sprint PCS is requesting a Conditional Use Permit to install, operate and maintain a wireless telecommunications facility consisting of a 384 sf equipment and storage building, and a 66-foot high light standard supporting nine antennas at 4548 Sweetwater Road (Ruhr Park). The light standard location is proposed in the right field of a baseball diamond at the park, and the project would result in the ATTACHMENT 3 Plannin§ Commission Minules ~ 5 - January 17, 2001 City addin~ five more li§hts to the basebatl field. The projec! site is an unlit baseball field across the parkin~ lot of a lit baseball field. The pole would be placed on the southwest ed[~e of the endfield near ri§hr field. The proposed site would provide service to portions of Sweetwater Road, commercial areas alon 8 Bonita Road and surroundin[; residential areas. The revenue generated to the City b;, the proposed light standard would be approximately $80,000 over a five-year time period and the City has elected to enter into an a§reement with the applicant thai would result in prepayment of installation of five other li§hts in the ball field. The $SAoot hifh lights would be installed in conjunction with the proposed light standard or shortly thereafter. Because of me additional li,~hts that would be added as a result of the monopole, the Environmental Review Coordinator has concluded that this proiect is subject to C[~©A and an Initial Study is required. There were seven private citizens, staff and the applicant present at the community forum and three primary concerns that were expressed. Staff's responses to these concerns are: 1. That the monopole would be the tallest structure in the area. Topo maps from els clearly indicate that the monopole would not be the tallest structure in the area. Copies of those maps will be presented to the Commission at the next hearing. 2. That putting, the monopole in the park is perceived to be a commercial enterprise by the city. The $80,000 generated by this proposal would be put back into the park and not into the Ci~'s General Fund. 3. Health concerns. This proje~ would compliance with FCC heatth standards. Staff recommendation: That the Plannin§ Commission review the application, hear public testimony, and continue this project until the initial Study is completed. Public Hearin§ Opened 7:55. Mike Sloop, representin§ Sprint PCS stated that various sites in the area were looked into, but other than the proposed site, there existed topodraphical constraints and would not offer optimal covera[e to the area. This proposal meets the federal safety sl:andards that are overseen by the Federal Communications Commission. Based on the concerns that were raised by the citizens, the applicant re-evaluated the calculations for EMF emissions in the areas closes to the monopole, which would be the area around first base and some bleacher seatin§, and it would be less than ~/2 of 1% of the FCC Planning Commission Minutes ~ 6 - January 17, 2001 standard, which is over 200 times below the standard. Peter Pearce, 4802 Birch Bark, Bonita, C,~, representing the Bonita Woods homeowners group expressed their collective concern with "commercializing' the park and the precedence this would set for other carriers to come into the park as well. In their opinion, parks are designed to have a large open space with vegetation and to be enjoyed by people, not for ar[ificial structures or commercial enterprises. Gil Hartson, 4231 S,weetwater Road, Bonita, CA stated ne opposes the p oject because the pole would create an eye-sore. Additionally, he is not convinced that the emissions would not create a hazardous condition because the effect of EMF exposure is not an exact science. Christa Hoffman, :]580 Evergreen Road, Bonita, CA stated that the beautiful view of the park she enjoys from her home of mature vegetation, ioyful noise of families and children enioying the park, and the serenity it brings would be diminished with the 66 foot high light standard with 9 antennas, which is totally incompatible with the park. There{ore, she urged the Commission to vote against it. Mike Kujawa, 3580 E~,ergreen Road, Bonita, CA stated he opposes the facility as it would be a very imposing and the tallest structure in the immediate area. He also is not convinced that the health hazarc~s are as benign as previously stated because the standards that are used to measure today are nine years old. Lille Pedrum, 4328 Grace Road, Bonita, CA opposes the project because of the visual impacts the artificial structure will create. Additionally, as a cancer survivor, she is especially concerned with the potential health hazards the proiect could pose, therefore she urged the Commission to vote agains[ it. Phil Pedrum, 4328 Grace Road, gonita~ CA stated that he too is concerned with health risks and with the light standard being an eye-sore that could po[entially diminish his property vaiue, therefore, he urged the Commission to vote against it. MSC (McCann/Cortes) (7-0) to continue public hearing to April 11, 2001. Motion carried. TO: Chula Vista Planning Commission Re Case Number: PCC-00-58 DATE: 12/12/00 PLANNIi'tG Dear Planning Commission; 1 am opposed to the proposed Cox/Sprint 66-foot high light standard being erected in Rohr Park or the immediate vicinity for the following reasons: a) The light standard will become the highest structure in the park and will detract from the beauty of the surrounding vegetation. The standard may very will exceed even the height of the highest trees in the park. b) Although the City notice says that the project is exempt from any environmental review, 1 am concerned about the effects of emissions from the tower on health and on interference With various receivers like radios, TVs, cordless phones, electric gates, etc. and on the possibility of attracting lightening strikes. c) Any detraction from the park's natural atmosphere, especially when the standard will be visible above the trees and visible from windows of residences bordering the park, will reduce property values. I urge the Planning Commission to reject the proposed project as unsuitable for the proposed location in or around Rohr Park. If the Commission decides to support the project, I urge the Commission to delay the approval for six months to allow adequate study of the project by those residents and users of the Park who will be negatively affected by the project. Thank you Veryeea~*LTruly Yours, ~ ~7~ Micho~l A. Kujawa 3580 Evergreen Road Bonita, CA. 91902 (619) 479-1717 DECEMBER 12, 2000 TO: CITY OF CHULA VISTA PLANNING COMMISSION DEC 1 3 2000 RE: CASE #PCC-00-58 FROM: JESUS H. KURODA-SAN PkANNING TO WHOM IT MAY CONCERN: I HAVE RECEIVED THE PLANNING COM~MISS!ON'S NOTICE REGARDING THE 66' ANTENNA THAT WILL BE INSTALLED IN ROHR PARK. I WOULD LIKE TO FORMALLY OPPOSE TO THIS. I PURCHASED MY HOME, 1N THIS AREA BECAUSE I WANTED TO LIVE IN AN AREA WHERE I COULD SEE THE TREES ANS STILL SMELL THE FRESH AIR. THIS ANTENNA WILL BE A TOTAL EYESORE TO OUR COMMUNITY I DO NOT WANT TO LOOK OUT MY WINDOW AND SEE ANTENNAS, I WANT TO CONTINUE TO SEE TREES. MINUTES OF THE CITY PLANNING COMMISSION OF CHULA VISTA, CALIFORNIA Council Chambers 6:00 p.m. Public Services Building Wednesday, July 11, 2001 276 Fourth Avenue, Chula Vista ROLL CALL/MOTIONS TO EXCUSE: Present: Commissioners, Castaneda, Hall, Cortes, Thomas, Willett, McCann Absent: Chair O'Neill Staff Present: Jim Sandoval, Assistant Director of Planning and Building Klm Vander Bie, Associate Planner Sunny Shy, Assistant Director of Recreation Michael Meacham, Special Operations Manager Bart Miesfeld, Deputy City Attorney MSC (Willett/Thomas) to excuse Commissioner O'Neill. Motion carried. PLEDGE OF ALLEGIANCE/SILENT PRAYER INTRODUCTORY REMARKS: Read into the record by Vice Chair Hall. ORAL COMMUNICATIONS: 1. PUBLIC HEARING: PCC-00-58; Conditional Use Permit to install, operate and maintain a wireless telecommunications facility consisting of a 66-foot high light standard supporting nine antennas; and an associate equipment building at an unlit baseball field within Rohr park, 4548 Sweetwater Road. Cox / Spring PCS. Background: Klm Vander Bie, Associate Planner reported that the application is requesting a Conditional Use Permit to construct and operate an unmanned cellular communications facility consisting of a 384 sf equipment and storage building, a 66 foot high light standard supporting 9 antennas, which is to be located in the right field of a currently unlit baseball diamond at the park. The City will use revenue generated from the antennas to purchase and install 5 additional lights at the ball field. The Parks and Recreation Department is supportive of this proposal, as this would provide the park with a second lit baseball field. Planning Commission Minutes - 2 - July 11, 2001 Telephone, electrical and radio equipment would be housed in a 384 sf equipment room to be constructed north of an existing restroom building and would be constructed of the same material as the restroom building (block wall and asphalt shingles). Part of the roof would be opened with a trellis-type roof and part of it would be a solid shingle roof. The equipment building would also house park maintenance equipment. On January 17, 2001 this project was brought before the Planning Commission at which time the project was continued to allow time for an Initial Study, reviewing the six light standards, be completed. The Resource Conservation Commission has determined that the Initial Study is adequate and recommends adoption of a Mitigated Negative Declaration. At the January 2001 Planning Commission meeting several residents expressed concern with: 1 ) visual impacts, 2) commercialization of the park, and 3) health concerns with EMF emissions. The project complies with all FCC regulations for EMF emissions and the law precludes the Planning Commission from denying the project based on health issues. Ms. Vander Bie stated that she contacted all of the residents who spoke at the January 2001 meeting notifying them of tonight's meeting. In addition, notices were mailed to residents within the 500 foot radius of the project site. Staff Recommenation: That the Planning Commission adopt the Resolution PCC-00~58 recommending adoption of the Mitigated Negative Declaration and approval of the Rohr Park wireless communications facility, subject to the conditions of approval (including the mitigation monitoring and reporting program measures). Commission Discussion: Commissioner Willett stated that the existing ball field at the park has light refraction that needs to be corrected by placing shields on the lights and directing the lighting system downward. Additionally, the City should make every effort to conserve energy by turning off the lights when the ball field is not being used. Sunny Shy, Assistant Director of Recreation stated that the ball field receiving the new light standards is at a lower elevation and the lighting consultant will be looking at implementing mitigation measures to reduce the glare. Michael Meacham, Special Operations Manager stated that the City is working on a lighting management system throughout the City for all facilities that will allow those adjustments to be made remotely. Commissioner Thomas asked for clarification on the prepayment of the revenue that will be generated by this project. Additionally, Cmr. Thomas stated he would like to see the Planning Commission Minutes - 3 - July 11, 2001 roof of the equipment room be extended to be a complete shingle roof to match the adjacent restroom building. Mr. Meacham stated that the applicant will reimburse the City for the cost of purchase and installation of the lights up to $80,000, which should cover all costs. The amount is intended to be a cap on the cost relative to the actual cost of purchase and installation of the light standards. Mr. Meacham stated that the reason why half of the roof is proposed to be an open trellis is because the equipment needs air circulation. If the ceiling is completely covered, then there may need to be more ventilation around the facia of the building, which could create an even greater visual distinction bet~veen the two buildings. Commissioner Castaneda stated he remembers that when this item first came before the Commission there was considerable opposition from the area residents and asked if staff had received any new communication from residents. He also stated that when items are continued, he would like to see all of the background information included in the new staff report. Cmr. Castaneda also asked if there were any restrictions on commercial use of the park when it was originally conveyed to the City. Kim Vander Bie stated that she received no new communication from residents and there also were no responses to the Initial Study, which was noticed. Mr. Meacham stated that there are no restrictions now, however, the original restriction was designed to prevent uses that would restrict the use of the park. The secondary nature of this project, which is the lighting of the ball field, will enhance the park and will enable its use by more people, for extended hours. Commissioner Thomas stated that he would like to see some type of condition where the appropriate party would be required to make any necessary adjustments to the lighting system after its been in operation for a couple of months. Ms. Shy stated that, in fact, this is part of the scope of work for the lighting consultant to make any necessary adjustments. Public Hearing Opened 6:45 Robert Krebbs, 9225 Dowdy Drive, #112, San Diego, CA 92126, Sprint PCS stated he is pleased to present this win-win proposal, which will provide wireless service to the community as well as lighting for a City-owned ball field. He urged the commission to support this proposal and stated he was available to answer any questions they may have. Planning Commission Minutes - 4 - July 11, 2001 Mr. Krebbs also stated that they would be willing to cover the entire roof to match the adjacent restroom building, and if additional ventilation is needed, they would ensure that it is done in a manner that will not create an obvious difference between the two buildings. Mike Kujawa, 3580 Evergreen Road, Bonita, CA 91902 asked if there would be any fencing around this facitity and equipment room, as well as any warning signs stating there may be potential radiation around the building. He also asked if the cabling between the antenna and equipment room would be underground. Mr. Kujawa still opposes the proiect because of visual impacts and because of the precedence this sets for future commercial ventures wishing to locate on the park. Mr. Krebbs responded that the facility will comply with all Municipal Code and federal regulations and if posting warning signs is a requirement, then they definitely will be posted. The cables will be underground. Mr. Meacham clarified that the older cellular sites produce greater emission amounts than the newer digital technology, which is the only type of facility that the City now allows. Public hearing closed 7:05. Commissioner Willett stated that due to a proliferation of these facilities, he would recommend that the City place a public information article in the newspaper explaining that these facilities pose no public health risk because the emissions are so minimal. The Commission collectively stated that although they are fully supportive of co-location whenever possible, there are exceptions where it may not be desirable, particularly in a site such as the park where the visual impacts need to be carefully considered. Commissioner Hall stated that he is supportive of this project and is particularly encouraged with the public benefit it creates with the installation of the lighting system on the ball field, which is one of the City's best leveled fields that has been underutilized because of the lack of lighting. Planning Commission Minutes - 5 - July 11, 2001 MSC (Thomas/Castaneda) (6-0-1-1) that the Planning Commission adopt Resolution PCC- 00-58 recommending adoption of the Mitigated Negative Declaration and approval of the Rohr Park wireless communications facility, subject to the conditions of approval (including the mitigation monitoring and reporting program measures) including the following two additional conditions: 1. That the equipment building roof be a full shingled roof and that the building be redesigned to provide the necessary ventilation for the equipment, and at the same time be aesthetically compatible with the adjacent restroom building; and 2. That the applicant be required, upon renewal of the Conditional Use Permit, to provide evidence of compliance with FCC regulations for EMF emissions. Motion carried. Case No.IS-01-044 · ENVIRONqMENTAL CHECKLIST FOI~ 1. Name of Proponent: City of Chula Vista Cox/Sprint PCS 2. Lead Agency Name and Address: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 3. Address and Phone Number of Proponent: 4683 Chabot Dri,~e, Suite 100 Pleasanton, CA 94588 4. Name of Proposal: IS-01-044 5. Date of Checklist: May 29, 2001 I. LAND USE AND PLANNING. Would the proposal: a) Conflict with general plan designation or c2 r2 [] [] zoning? b) Conflict with applicable environmental plans or [] [] ~ [] policies adopted by agencies with jurisdiction over the project? c) Affect agricultural resources or operations [n [] [] [] (e.g., impacts to soils or farmlands, or impacts from incompatible land uses)? d) Disrupt or divide the physical arrangement of [] tn [] [] an established community (including a low- income or minority community)? Comments: The project is consistent with the Public & Open Space land use designation (Parks and Recreation) of the General Plan. The project is also consistent with the zoning designation of the AD - Agricultural with Design Overlay and designated. The proposed ball field lights and cellular transceiver base station ("base station") are permitted with a Conditional Use Permit (CUP). The site is located 'aSthin a City Park (Rohr Park). The proposed site is a public park. The proposed ball field lights are proposed for an existing ball field and the proposed base station will be incorporated in the design of one of the light standards. The subject ball field is located at the eastern portion of the Park. Rohr Park is a 23-acres in size and is surrounded by residential development to the north (County of San Diego) and west, commercial to the east, and the Chula Vista Municipal Golf Course to the south. The proposed project does not require the physical arrangement of the community to be changed. Page- 1 ATTACHMENT 6 .Mitigation: No mitigation measures are required. II. POPULATION AND HOUSING. Would the Vo,=,i~n: si~,ir,~., ~ ~ a) Cumulatively exceed official regional or local [] [] [] [] population projections? b) Induce substantial growth in an area either [] [] [] [] directly or indirectly (e.g., through projects in an undeveloped area or extension of major infrastructure)? c) Displace existing housing, especially affordable [] [] [] [] housing? The proposed project would result in the installation of lights and base station (for wireless communications) on an existing ball field in a public park. The project does not exceed regional or local population projections because it does not create any growth. The project does not create any employment opportunities or housing units in the area. The project does not displace any housing, including affordable housing. Therefore, the project will not result in any potential impacts related to population and housing. Mitigation: No mitigation measures are required. III. GEOPHYSICAL. Would the proposal resu# in or ~o,~m_ s~,~m=.t ~,~a. expose people to potential impacts involving: Impaa Mitigaied Impact [mpaa a) Unstable earth conditions or changes in [] [] [] [] geologic substructures? b) Disruptions, displacements, compaction or [] [] [] t~ overcovering of the soil? c) Change in topography or ground surface relief [] [] [] [] features? d) The desnmction, covering or modification of [] [] [] [] any unique geologic or physical features? e) Any increase in wind or water erosion of soils, ~ rn [] [] either on or off the site? f) Changes in deposition or erosion of beach [] [] [] [] sands, or changes in siltation, deposition or erosion which may modify the channel of a river or stream or the bed of the ocean or any bay inlet or lake? g) Exposure of people or property to geologic [] [] [] [] hazards such as earthquakes, landslides, mud slides, ground failure, or similar hazards? Page - 2 There are no known geophysical conditions present that expose people to geologic o? earth hazards and the proposal does not include an3' grading. Therefore, no significant impacts have been identified. Mitigation: No mitigation measures are required. IV. WATER. Would the proposal result in: ~.~r,=.~ v.~,~ sl;~,,=.~ No a) Changes in absorption rates, drainage patterns, [] tn [] [] or the rate and amount of surface runoff?. b) Exposure of people or property to water [] [] [] [] related hazards such as flooding or tidal waves? c) Discharge into surface waters or other , [] [2 [] [] alteration of surface water quality (e.g., temperature, dissolved oxygen or mrbidi .ty)? d) Changes in the amount of surface water in any [] [] [] [] water body? e) Changes in currents, or the course of direction ' [] [] [] [] of water movements, in either marine or fresh waters? f) Change in the quantity of ground waters, either [] [] [] [] through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations? g) Altered direction or rate of flow of ~ [2 [] [] groundwater? h) Impacts to groundwater quality? t2 [] t2 [] i) Alterations to the course or flow of flood [] [] [] [] waters? j) Substantial reduction in the amount of water [] [] rn [] otherwise available for public water supplies? Comments: Construction of the light standards and 384 square foot equipment building would have a negligible effect on surface runoff and would not have any effect on groundwater because no grading is proposed. The proposed park improvements will be located within the 100 year flood plain of the Sweetwater River. Due to the nature of the project, no significant impacts related to flooding are anticipated. As a standard Engineering Division condition of approval the applicant is required to implement Best Management Practices to prevent pollution of storm drainage systems, during and after construction. Therefore, no significant impacts to water resources have been identified and no mitigation is required. Page - 3 Mitigation: No mitigation measures are required. V. AIR QUALITY. Would the proposal: a) Violate any air quality standard or contribute to [] r2 [] [] an existing or projected air quality violation? b) Expose sensitive receptors to pollutants? [] r2 c] [] c) Alter air movement, moisture, or temperature, [] [] [] [] or cause any change in climate, either locally or regionally? d) Create objectionable odors? [] al [] [] e) Create a substantial increase in stationary or [] [] r2 [] non-stationary sources of air emissions or the deterioration of ambient air quality? Comments: The bail field lights and base station would not produce any air emissions. One to two service truck trips per month would be generated for the maintenance of the telecommunications equipment. The proposed lighting would allow the use of t_he ball field until the park closes at 10:00 PM. According to the Engineering Division, the proposed project will generate an insignificant amount of daily trips. Therefore, no significant air quality impacts would result and no mitigation is required. Mitigation: No mitigation measures are required. VI. TRANSPORTATION/CIRCULATION. Would the proposal result in: a) Increased vehicle trips or traffic congestion? [] [] [] [] b) Hazards to safety from design features (eo.~., [] [] [] [] sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? c) Inadequate emergency access or access to [] [] [] [] nearby uses? d) Insufficient p~rking capacity on-site or off-site? in [2 [] [] e) Hazards or barriers for pedestrians or z] [] [] [] bicyclists? f) Conflicts with adopted policies supporting [] [] [] alternative transportation (e.g. bus turnouts, bicycle racks)? g) Rail, waterborne or air traffic impacts? [] [] [] [] Page - 4 h) A "large project" under the Congestion [] [] [] [] Management Program? (An equivalent of 2400 or more average daily vehicle trips or 200 or · more peak-hour vehicle trips.) Comments: No additional roadway facilities are required to serve the site. Short-term effects would consist of construction trucks required to install the ball field lights and base station. Long-term effects would consist of one to two service truck trips per months associated with the base station and an insignificant amount of daily vehicle trips associated with the use of the ball field in the evening hours. On-site parking is provided in a paved parking lot immediately south of the ball field. Parking is also available in a dirt parking lot immediately east of the ball field adjacent to the equestrian facility. Therefore, no significant transportation effects would result and no mitigation is required. Mitigation: No mitigation measures are required. VII. BIOLOGICAL RESOURCES. Would the proposal result in impacts to: ~p,~ Mitil~ated lmpacl Impart a) Endangered, sensitive species, species of [] [] [] [] concern or species that are candidates for listing? b) Locally designated species (e.g., heritage [] [] [] trees)? c) Locally designated natural communities (e.g., ~ [] [] [] oak forest, coastal habitat, etc.)? d) Wetland habitat (e.g., marsh, riparian and [] [] vernal pool)? e) Wildlife dispersal or migration corridors? [] [] [] [] f) Affect regional habitat preservation planning [] [] [] [] efforts? Comments: The project site is currently developed as a public park and contains no native vegetation or habitat. The subject ball field is fully improved with a clay infield and tuff. Rohr Park is not identified as containing significant biological resources on the City's General Plan. The Draft Multiple Species Conservation Program (MSCP) Subarea Plan identifies Rohr Park as an area designated for development (developed or take authorized). Therefore, no endangered, threatened, or rare plant or animal species are expected to occur on site. Mitigation: No mitigation measures are required. VIII. ENERGY AND MINERAL RESOURCES. P~,~,~ ~caat Would the proposal: a) Conflict with adopted energy conservation ~ [] ~ [] plans? b) Use non-renewable resources in a wasteful and ~ r2 ~ [] inefficient manner? c) If the site is designated for mineral resource [] [] r~ [] protection, will this project impact this protection? Comments: The proposed project is consistent with the General Plan Open Space and Conservation Element. The project does not conflict with the recently adopted CO2 Reduction Plan. The proposed project does not result in the use of resources in a wasteful and inefficient manner because the proposed lights will operate during the off-peak hours (after 6:30 PM) when energy reliability is not a primary concern. The project is not located in an area designated for mineral resource protection as defined in the City's General Plan. Mitigation: No mitigation measures are required. IX. HAZARDS. Would the proposal involve: Vo,e.,i~n.*Significant ~ Ihan a) A risk of accidental explosion or release of r~ [] [~ [] hazardous substances (including, but not limited to: petroleum products, pesticides, chemicals or radiation)? b) Possible interference with an emergency rn [] :] [] response plan or emergency evacuation plan? c) The creation of any health hazard or potential [] [] ~ [] health hazard? d) Exposure of people to existing sources of [] [] ~ [] potential health hazards? e) Increased fire hazard in areas with flammable [] [] [] [] brush, grass, or trees? Comments: The proposed sports lighting system and base station would not involve operations involving hazardous substances. The base station is subject to Federal Communication Commission (FCC) regulations. Sprint has a license to operate from the FCC and is required to provide documentation for the proposed base station to the FCC for verification that Federal regulations are met. No significant impacts are expected to occur due to compliance with FCC permitting requirements. A 24-hour power outage is an unlikely event, however, an emergency power generator would be brought to the site if an extended power outage (i.e., in excess of two hours) should occur. These generators have an internal diesel fuel tank that provides a minimum of 24 hours of run time. In the event an emergency power generator is needed, a liner would be required to prevent any fuel spillage that could result in a potential fire hazard. Compliance with the condition for a liner would result in a less than significant impact. Page - 6 Mitigation: In the event that an emergency power generator is needed, a liner would be required to prevent any fuel spillage that could result in a potential fire hazard. X. NOISE. Would the proposal result in: Po,,.,~: $iguifiean! ~ thaB a) Increases in existing noise levels? o [] [] [] b) Exposure of people to severe noise levels? [] [] [] [] Comments: The proposed lighting system and base station are not anticipated to result in a significant increase in existing noise levels. The proposed lighting system will extend the use of the existing sports fields until 10:00 PM Monday through Friday. Weekend night use of the lighted field is not typical, but could occur; however, the light system will not operate past 10:00 PM. The subject ball field is located on the valley floor, approximately 5-feet lower in elevation than Sweetwater Road and the nearest single-family residential units to the north. Therefore, due to the separation from the nearest residential units and the difference in elevation the proISosed sports field lighting system and base station are not anticipated to result in significant noise impacts. Mitigation: No mitigation measures are required. XI. PUBLIC SERVICES. Would the proposal have ~p~c, ~i~i~ ~=~ ~m~, an effect upon. or result in a need for new or altered government sen,ices in any of the following areas: a) Fire protection? r~ [] [] [] b) Police protection? ri [] ~ [] c) Schools? [] [] [] [] d) Maintenance of public facilities, including [] [] [] [] roads? e) Other governmental sen, ices? [] [] [] ~ Comments: No new or altered governmental services will be required to serve the project. The proposal does not impact existing Fire and Police services. Mitigation: No mitigation measures are required. XII. Thresholds. Will the proposal adversely impact [] [] [] [] ' the City's ThreshoM Standards ? As described below, the proposed project does not adversely impact any of the seen Threshold Standards. Pa~e - 7 a) Fire/EMS [] [] [] The Threshold Standards requires that fire and medical units must be able to respond to calls within 7 minutes or less in 85% of the cases and within 5 minutes or less in 75% of the CaSeS. Comments: The addition of a sports lighting system and base station to an existing sports field does not impact the provision of Fire/EMS services to the site. The City of Ohula Vista Fire Departh~ent has indicated that they will be able to meet this Threshold Standard without adding any additional equipment or personnel. The nearest fire station is approximately 1.5 miles away and the estimated response time is 3 to minutes. Mitigation: No mitigation measures are required. b) Police r~ [] [] ~ The Threshold Standards require that police units must respond to 84% of Priority 1 calls within 7 minutes or less and maintain an average response time to all Priority 1 calls of 4.5 minutes or less. Police units must respond to 62.10% of Priority 2 calls within 7 minutes or less and maintain an average response time to ail Priority 2 calls of 7 minutes or less. Commaents: The Police Threshold Standard would be met as reported by the Police Department. Mitigation: No mitigation measures are required. c) Traffic [] [] ri ~ 1. City-wide: Maintain LOS "C" or better as measured by observed average travel speed on all signalized arterial segments except that during peak hours a LOS "D" can occur for no more than any two hours of the day. 2. West of 1-805: Those signalized intersections which do not meet the standard above may continue to operate at their current 1991 LOS, but shall not worsen. Paee- 8 Comments: The Traffic Section of the Engineering Division has reported that the proposed project ,.','ill generate an insignificant amount of daily trips associated with the extended usage of the sports fields. Therefore, no significant impact to the City's Traffic Threshold Standard is anticipated. Mitigation: No mitigation measures are required. d) Parks/Recreation [] r~ r2 [] The Threshold Standard for Parks and Recreation is 3 acres of neighborhood and community parkland with appropriate facilities per 1,000 residents east of Interstate 805. Comments: The proposed project does not impact Threshold Standards for Parks and Recreation because the proposal does not result in an increase in population. The proposed lighting structure will provide extended use of an existing recreational facility within a City park. Mitigation: No mitigation measures are required. e) Drainage [] [] [] [] The Threshold Standards require that storm water flows and volumes not exceed City Engineering Standards. Individual projects will provide necessary improvements consistent with the Drainage Master Plan(s) and City Engineering Standards. The proposed project will comply with this Threshold Standard. Comments: No additional storm water flows would be generated by the installation of the proposed sports lighting system and base station. Therefore, no conflict with the City's threshold is anticipated. Mitigation: No mitigation measures are required. f) Sewer [] D [] [] The Threshold Standards require that sewage flows and volumes not exceed City Engineering Standards. Individual projects will provide necessary improvements consistent with Sewer Master Plan(s) and City Engineering Standards. The proposed project will comply with this Threshol.d Standard. Page - 9 No sewer facilities are required to se~'e the proposed sports lighting system and base station. Therefore, no conflict with the City's Sewer Threshold Standard is anticipated. Mitigation: No mitigation measures are required. g) Water [] [] [] [] The Threshold Standards require that adequate storage, treatment, and transmission facilities are constructed concurrently with planned growth and that water quality standards are not jeopardized during growth and construction. The proposed project will comply with this Threshold Standard. Applicants may also be required to participate in whatever water conservation or fee off- set program the City of Chula Vista has in effect at the time of building permit issuance. Comments: No water service is required to serve the proposed sports lighting system and base station. Therefore, no conflict with the City's Water Threshold Standard is anticipated. Mitigation: No mitigation measures are required. XIII. UTILITIES 3d~FD SERVICE SYSTEMS. Would s~r~n, un ~,~n,~t ~o the pro?osal result in a need for new systems, or substantial akerarions to the following utilities: a) Power or natural gas? [] [] [] [] b) Communications systems? n [] ~ [] c) Local or regional water treatment or [] t2 [] [] distribution facilities? d) Sewer or septic tanks? tn [] [] [] e) Storm water drainage? [] [] [] [] f) Solid waste disposal? [] [] [] ~ Comments: The proposed sports lighting system and base station would not result in the need for new systems or substantial alteration of existing utilities. Electrical service will be extended to the site from an existing transformer located within the Park. The extension of electrical services would not require new systems to be installed, or alterations of existing utilities. No significant impacts to utilities and service systems is anticipated. Mitigation: No mitigation measures are required. Page- 10 XIV. AESTHETICS. Would rhe proposal: a) Obstruct any scenic vista or view open to the r3 rn ~ [] public or will the proposal result in the creation of an aesthetically offensive site open to public view? b) Cause the destruction or modification of a rn r~ ~ ~ scenic route? c) Have a demonstrable negative aesthetic effect? [] [] [] [] d) Create added light or glare sources that could [] ~ [] [] increase the level of sky glow in an area or cause this project to fail to comply with Section 19.66.100 of the Chula Vista Municipal Code, Title 197 e) Produce an additional amount of spill light? [] :~ [] rn Comments: The proposed lighting system for the ball field #18 and the proposed base station are not anticipated to obstruct any scenic vista or view open to the public. The subject ball field is located on the valley floor, approximately 5-feet lower in elevation than Sweetwater Road and the nearest single-family residential units to the north. Dense vegetation including tall eucalyptus trees block most of the view of the ball field from Sweetwater Road and the subject site is separated from Bonita Road (a designated scenic roadway) by the Chula Vista Municipal Golf Course ("Golf Course"). The proposal is not anticipated to obstruct any scenic vista or view open to the public because of the surrounding topography and vegetation and the separation by SweeV,vater Road from the nearest single-family residences to the north. These conditions provide an effective shield for residential properties closest to the subject ball field. Additionally, due to the separation from Bonita Road to the south by the Golf Course, and the existing vegetation on the Golf Course and Park, the proposal is not anticipated to cause the destruction or modification of Bonita Road, which is identified as a scenic route in the City's General Plan. The proposed project would create a new source of light and glare on the unlighted ball field and views from the adjacent residential uses could be noticeably affected because of the current absence of lighting at the project site. However, because the Park already contains existing lighting associated with the parking lots and ball fields, the proposed lighting of ball field #18 would not be expected to create a noticeable increase in light and glare from distant views. Additionally, the proposed lighting system (manufactured by Mus¢o Systems) increases light levels up to 25 % and reduces wasted spill light up to 95 %, thereby reducing impacts to surrounding residential properties. In an effort to reduce any potential light and glare impacts to surrounding residential properties the proposed lighting system shall be directed downward to provide the uniform distribution of lighting on to the ball field and soccer field overlay and reduce wasted spill light. Mitigation: 1. The proposed lighting system shall be directed downward to provide a uniform distribution of lighting on to the subject ball field and soccer field overlay and reduce wasted spill light. Page - 11 NV. CULTUIL~.L RESOURCES. Would the proposal: a) Will the proposal result in the alteration of or [] r2 [] [] the destruction or a prehistoric or historic archaeological site? b) Will the proposal result in adverse physical or ~ t2 rn [] aesthetic effects to a prehistoric or historic building, structure or object? c) Does the proposal have the potential to cause a [] [] - [] [] physical change which would affect unique ethnic cultural values? d) Will the proposal restrict existing religious or [] [] ~ [] sacred uses within the potential impact area? [] [] [] [] e) Is the area identified on the City's General Plan EIR as an area of high potential for . archeological resources? Comments: The Conservation and Open Space Element of the General Plan does not identify the subject site or surrounding vicinity as an area of potential cultural resources. The project does not include grading for the installation of the sports lighting system and base station; therefore, there would be no significant impacts to cultural resources on the project site. Mitigation: No mitigation measures are required. XVI. PALEONTOLOGICAL RESOURCES. Will the [] [] [2 [] proposal result in the alteration of or the destruction of paleontological resources ? Comments: The Conservation and Open Space Element of the General Plan does not identify the subject site or surrounding vicinity as an area of potential paleontological resources. The project does not include grading for the installation of the sports lighting system and base station; therefore, there would be no significant impacts to paleontological resources on the project site. XVII. RECREATION. Would the proposal: Vo,~ s~g, an,,~t z~ a) Increase the demand for neighborhood or [] [] r~ [] regional parks or other recreational facilities? b) Affect existing recreational opportunities? [] [] ~ [] Paee- 12 c) Interfere with recreation parks & recreation ~ [] [] [] plans or programs? C omnlellts: The proposed project is a sports lighting system and base station in an existing City park, which does not affect the need for parks and recreational facilities. The proposed project would extend the use of an existing recreational facility. Therefore, no significant impacts to recreational needs are anticipated from the proposed project. XVlII. MANDATORY FINDINGS OF slg~.~ u.t~, slg,~-~., ~o SIGNIFICANCE: See Negative Declaration for tm~.,~ M~tigatt~d lm!~cl Im!~,cl mandato~ findings of significance. If an EIR is needed, this section should be completed. a) Does the project have the potential to degrade [] [] [] [] the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods or California history or prehistory? Comments: The proposed project is located in a fully developed park in the City of Chula Vista. The surrounding area is developed with residential uses and a municipal golf course. Neither sensitive plant nor animal resources, nor historical or archeological resources are present on the site. The proposed project will have no significant impact to the quality of the environment, reduction of habitat of wildlife species or threaten the historical preservation of the area. b) Does the project have the potential to achieve [] [] [] ~ short-term, to the disadvantage of long-term, environmental goals? Comments: Installation of the sports lighting system and the base station is consistent with the City's General Plan and the City Council approved Draft Multiple Species Conservation Plan (MSCP) dated October 9, 2000. The proposed project will not negatively affect long-term environmental goals. c) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project Pa~e- 13 are considerable when viewed in connection with the effects of past projectS, the effects of other current projects, and the effects of probable furore projects.) There are no other current or foreseeable projects in the surrounding area that would contribute to cumulatively considerable impacts. The proposed project is consistent with the Rohr Park Master Plan. Mitigation Measures: No mitigation measures are required. d) Does the project have environmental effects, [] [] [] ~ which will cause substantial adverse effects on human beings, either directly or indirectly? Comments: The proposed sports lighting system and base station is not anticipated to cause any direct or indirect substantial adverse effects on human beings. The proposed project would not involve operations involving hazardous substances. The base station is subject to Federal Communication Commission (FCC) regulations. Sprint has a license to operate from the FCC and is required to provide documentation for the proposed base station to the FCC for verification that Federal regulations are met. No significant impacts are expected to occur due to compliance with FCC permitting requirements. The proposed project will result in a new source of light and glare on the unlighted ball field and views from the adjacent residential uses could be noticeably affected because of the current absence of lighting at the project site. To reduce any potential light and glare impacts to surrounding residential properties the proposed lighting system shall be directed downward to provide the uniform distribution of lighting on to the bail field and soccer field overlay and reduce wasted spill light. Mitigation: The proposed lighting system shall be directed downward to provide a uniform distribution of lighting on to the subject ball field and soccer field overlay and reduce wasted spill light. XIX. PROJECT REVISIONS OR MITIGATION MEASURES: Aesthetics & Mandatory Findings of Significance I. The proposed lighting system shall be directed downward to provide a uniform distribution of lighting on to the subject ball field and soccer field overlay and reduce wasted spill light. Hazards I. In the event that an emergency power generator is needed, a liner would be required to prevent any fuel spillage that could result in a potential fire hazard. P~e- 14 XX. AGREEMENq' TO IMPLEMENT MITIGATION MEASURES By signing the line(s) provided below, the Applicant(s) and/or Operator(s) stipulate that they have each read, understood and have their respective company's authority to and do agree to the mitigation measures contained herein, and will implement same to the satisfaction of the Environmental Review Coordinator. Failure to sign the line(s) provided below prior to adoption of the Addendum shall indicate the Applicants' and/or Operator's desire that the Project be held in abeyance without approval. Printed Name and Titlte of Afplicant or At?thorized Representahve Date/ Signature of Applicant or Authorized Representative Date -- Prihted ~ame and Tide of Applicant or Authorized Representative ~ate! XXI. ENVIROhrM~ENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated," as indicated by the checklist on the following pages. [] Land Use and Planning [] Transportation/Circulation [] Public Services [] Population and Housing [] Biological Resources [] Utilities and Service Systems [] Geophysical [] Energy and Mineral Resources · Aesthetics [] Water · Hazards [] Cultural Resources [] Air Quality [] Noise [] Recreation [] Paleontological [] Mandatory Findings of Significance Resources Pa~e- 15 XXI1. DETE1LMINATION: On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, [] and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, · there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environmem, and an [] ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a significant effect(s) on the environment, but at [] least one effect: I) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impacts" or "potentially significant unless mitigated." An ENViRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, [] there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in an earlier EIR pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. An addendum has been prepared to provide a record of this determination. ~arilyn ~.F. 15onseggi Environmental Review Coordinator Appendix B THE CITY OF CHULA VISTA'DISCLOSURE STATEMENT You are required to file a Statement of Disclosure of certain ownership or financial interests, payments, o~' campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodies. The following information must be disclosed: 1. List the names of all persons having financial interest in the property which is the subject of the application or the contract, e.g., owner applicant, contractor, subcontractor, matedal supplier. City of Chula Vista Cox/Sprint PCS Lucent, Inc 2. If any person' identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. 3. If any person" identified pursuant to (1) above is non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Have you had more than $250 worth of business transacted with any member of the City staff, Boards, Commissions, Committees,'and Council within the past twelve months? Yes __ No X If yes, please indicate person(s):. 5. Please identify each and every person, including any agents, employees, consultants, or independent contractors who you have assigned to represent you before the City in this matter. Wireless Facilities Incorporated (WFI) 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding election pedod? Yes, No X If yes, state which Councilmember(s): Date: -,~//'t 'c-/d-/.~) Sign at u re o'f-p n t r~ct o r/~'ppl,~.a n t Pdnt o ~pe*n~me of'contracto~applicant * Person is defined as: ".4n.v individual, firm, co-partnership, joint venture, association, social club. freaternal organi'.atior[ corporatio~ estate, trust, receiver o,ndicate this and any other count~, ci~, and countm: ciG. municipality district or other political subdivision or any other group or combination acting a.~ a unit," I¢ ~'~ ATTACHMENT 7 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A CONDITIONAL USE PERMIT, PCC-00-58, TO COX/SPRINT PCS TO CONSTRUCT AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT 4548 SWEETWATER ROAD (ROI-IR PARK). A. RECITALS 1. Project Site WHEREAS, the parcel that is the subject matter of this resolution is represented in Exhibit A attached hereto and incorporated herein by this reference, and for the purpose of general description is located at Rohr Park, 4548 Sweetwater Road ("Project Site"); and 2. Project Applicant WHEREAS, on May 12, 2000 a duly verified application for a Conditional Use Permit (PCC-00-58) was filed with the City of Chula Vista Planning Division by Cox/Sprint PCS (Applicant); and 3. Project Description; Application for Conditional Use Permit WHEREAS, Applicant requests permission to construct an unmanned cellular communications facility consisting of a 66-foot-high light standard supporting nine antennas, and a 384-square-foot fenced equipment and storage building on the Project Site; and 4. Environmental Determination WHEREAS, in accordance with the requirements of the California Environmental Quality Act (CEQA), the Environmental Review Coordinator has determined that the Project requires the preparation of an Initial Study. Such study (IS-0D044) was prepared by city staff, and based on such study, a Mitigated Negative Declaration was prepared and circulated for public review. WHEREAS, the Resource Conservation Commission determined that the Initial Study was adequate and recommended adoption of a Mitigated Negative Declaration on June 18, 2001, in compliance with CEQA. The Planning Commission recommended adoption of the same Mitigated Negative Declaration on July 11, 2001. 5. Planning Commission Record on Application WHEREAS, the Planning Commission scheduled and advertised a public hearing on the Project for December 13, 2000; continued the Project to January 17, 2001; and continued the project again to July 11, 2001; and WHEREAS, at the July 11, 2001 meeting, the Planning Commission considered a motion to support staffs recommendation for the cellular facility and voted 5-0-1-1 to recommend that the City Council approve the Project based on the findings and subject to the conditions listed below in accordance with Planning Commission Resolution PCC-00-58; and 6. City Council Record of Application WHEREAS, a duly called and noticed public hearing on the Project was held before the City Council of the City of Chula Vista on August 7, 2001 to receive the recommendation of the Planning Commission, and to hear public testimony with regard to same. NOW, THEREFORE BE IT RESOLVED that the City Council does hereby find, determine and resolve as follows: B. PLANNING COMMISSION RECORD The proceedings and all evidence on the Project introduced before the Planning Commission at their public hearing on this Project held on July 11, 2001 and the minutes and resolution resulting therefrom, are hereby incorporated into the record of this proceeding. C. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council does hereby find that the Mitigated Negative Declaration issued for this Project has been prepared in accordance with requirements of the California Environmental Quality Act and the Environmental Review Procedures of the City of Chula Vista. D. INDEPENDENT JUDGEMENT OF THE CITY OF CHULA VISTA CITY COUNCIL The City Council finds that the Mitigated Negative Declaration prepared for this Project reflects the independent judgment of the City of Chula Vista City Council. E. INCORPORATION OF MITIGATION MEASURES The City does hereby adopt and incorporate herein as conditions for this approval all applicable mitigation measures, as set forth in the Environmental Document IS-01-044. Resolution No. Page #3 F. CONDITIONAL USE PERMIT FINDINGS The City Council of the City of Chula Vista does hereby make the findings required by the City's rules and regulations for the issuance of conditional use permits, as herein below set forth, and sets forth, thereunder, the evidentiary basis that permits the stated f'mding to be made. 1. That the proposed use at the location is necessary or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the community. The proposed cellular facility is necessary to provide and maintain a quality cellular phone system in northeastern Chula Vista, specifically providing service for portions of Highway 54, Sweetwater Road, commercial areas along Bonita Road, and surrounding residential areas in all directions. The cellular facility will contribute to the general well being of the community by facilitating telephonic communication in the area surrounding said facility. 2. That such use will not under the circumstances of the particular case, be detrimental to the heaRh, safety or general welfare of persons residing or working in the vicinity or injurious to property or Lmprovements in the vicinity. Emissions from cellular antennas have been shown to be below any levels that would cause hazardous biological effects. In addition, cellular antenna emissions are so far below all recognized safety standards that they constitute no hazard to public health or safety. The project has been conditioned that the applicant prove compliance with the accepted ANSI standards for emissions control. 3. That the proposed use will comply with the regulations and conditions specified in the code for such use. Conditional Use Permit PCC-00-58 requires the permittee to comply with all the applicable regulations and standards specified in the Municipal Code for such use. The conditioning of PCC~00-58 is approximately proportional both in nature and extent to the impact created by the proposed development in that the conditions imposed are directly related to and are of a nature and scope related to the size and impact of the project. 4. That the granting of this conditional use permit will not adversely affect the general plan of the City or the adopted plan of any government agency. Land use patterns within the City will not be affected by the granting of PCC-00-58. Monthly maintenance visits that the project may generate will not result in the intensification of the use of the site and is an insignificant increase in the traffic for the neighborhood. The integration of the light standard with other field lights will not be a visual intrusion in Chula Vista. Resolution No. Page #4 G. TERMS OF GRANT OF PERMIT The City Council hereby grants Conditional Use Permit PCC-00-58 subject to the following conditions whereby the applicant and/or property owner shall: l. Construct the Project as described in the application, except as modified herein to allow for the light standard and equipment/storage building. The light standard shall be no taller than 66-feet, and shall support no more than nine antennas. The telephone, electrical and radio equipment shall be placed in a new 384-square-foot block wall building with shingled roof adjacent to the ball field, and it shall match an existing restroom building to the south of the new building. 2. Cooperate in good faith with other communications companies in co-locating additional antenna on pole structures and/or on the tops of buildings, provided said co-locates have received a conditional use permit for such use at said site from the City. Permittee shall exercise good faith in co-locating with other communications companies and sharing the permitted site, provided such shared use does not give rise to a substantial technical level- or quality-of-service impairment of the permitted use (as opposed to a competitive conflict or financial burden). In the event a dispute arises as to whether permittee has exercised good faith in accommodating other users, the City may require a third party technical study at the expense of either or both the permittee and applicant. 3. Comply with ANSI standards for EMF emissions. Within six (6) months of the Building Division final inspection of the project, the Applicant shall submit a project implementation report to the Director of Planning and Building which provides cumulative field measurements of radio frequency (EMF) power densities of all antennas installed at subject site. The report shall quantify the EMF emissions and compare the results with currently accepted ANSI standards. Said report shall be subject to review and approval by the Director of Planning and Building for consistency with the project proposal report and the accepted ANSI standards. If on review the City in its discretion finds that the Project does not meet ANSI standards, the City may revoke or modify this conditional use permit. 4. Ensure that the project does not cause localized interference with reception of area television or radio broadcasts. If on review the City, in its discretion, fmds that the project interferes with such reception, the City may revoke or modify the conditional use permit. 5. Provide one 2A:10BC fire extinguisher at a location satisfactory to the Fire Marshal upon completion of construction. 6. Obtain all necessary permits from the Chula Vista Building Division and Fire Department. Resolution No. __ Page #5 7. Comply with the City's Municipal Code noise standards. Within three (3) months of the Building Division's final inspection, the applicant shall submit a report to the Director of Planning and Building which provides cumulative field measurements of facility noises. The report shall quantify the levels and compare the results with current standard specified in the Municipal Code for public and open space uses. Said report shall be subject to review and approval by the Director of Planning and Building for consistency with the project proposal dated May 12, 2000 and Municipal Code noise standards. If on review the City finds that the project does not meet the Municipal Code noise standards, the City may revoke or modify the permit. 8. This permit shall be subject to any and all new, modified or deleted conditions imposed after approval of this permit to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance written notice to the Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive Permittee of a substantial revenue source, which the Permittee cannot, in the normal operation of the use permitted, be expected to economically recover. 9. This Conditional Use Permit shall become void and ineffective if not utilized or extended within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. 10. Upon cessation of the business operations and use of the light standard for antennas by the applicant, the applicant has 90 days to submit a substitute user to the satisfaction of the Director of Planning and Building Department and/or remove the antennas from the light standard and equipment from the storage building. Any changes on the conditional use permit shall require modification. 11. Applicant/operator shall and does hereby agree to indemnify, protect, defend and hold harmless City, its City Council members, officers, employees, agents and representatives, from and against any and all liabilities, losses, damages, demands, claims and costs, including court costs and attorney's fees (collectively, liabilities) incurred by the City arising, directly or indirectly, from (a) City's approval and issuance of this Conditional Use Permit, (b) City's approval or issuance of any other permit or action, whether discretionary or non-discretionary, in connection with the use contemplated herein, and c) Applicant's installation and operation of the facility permitted hereby, including, without limitation, any and all liabilities arising from the emission by the facility of electromagnetic fields or other energy waves or emissions. Applicant/operator shall acknowledge their agreement to this provision by executing a copy of this Conditional Use Permit where indicated, below. Applicant's/operator's compliance with this provision is an express Resolution No. __ Page #6 condition of this Conditional Use Permit and this provision shall be binding on any and all of Applicant's/operator's successors and assigns. 12. Prior to issuance of a building permit, the applicant shall submit a site plan which identifies any and all existing site features which are anticipated to be disturbed/disrupted by construction activity related to the project and appropriate notes and construction details which describe the construction methods and materials to be utilized to restore site features to original condition. Said site plan is subject to the review and approval by the Director of Public Works and the Director of Parks and Recreation or their designees prior to issuance of building permit. 13. This permit shall expire five (5) years after the date of its approval. After the first five (5) years, Planning staff shall review this conditional use permit for compliance with the conditions of approval, and shall determine, in consultation with the applicant, whether the project shall be modified from its original approval. 14. Project site shall be inspected six months subsequent to the issuance of building permits to check conformance with project plans and conditions of approval. 15. A graffiti resistant treatment shall be specified for all wall and building surfaces. This shall be noted on any building and wall plans and shall be reviewed and approved by the Planning Director prior to issuance of building permits. Additionally, the project shall conform to Sections 9.20.055 and 9.20.035 of the C.V.M.C. regarding graffiti control. 16. The power source for the project shall be independent of existing site facilities. Electrical service connections and the locations of related components such as meters and transformers shall be coordinated with SDG&E and City of Chula Vista Electrician prior to issuance of building permit. Disruption of existing site improvements and facilities, including site landscaping improvements, resulting from the installation of said electrical services shall be replaced/repaired in kind subject to the approval of the Director of Public Works, Director of Planning and Building, and Director of Parks and Recreation or designees. 17. Damage of existing park grounds and/or facilities resulting from the installation and/or maintenance of the antenna and equipment building including but not limited to turf areas, walkways, irrigation systems, any and all site utilities and fixtures shall be replaced in kind and under the authority and supervision of the Director of Public Works and Director of Parks and Recreation or designees. 18. Installation and scheduled maintenance of the antenna and related components shall be coordinated with parks operation personnel and on-site recreation staff prior to CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT COX/SPRINT PCS PROJECT DESCRIPTION: APPECANT: ( CONDITIONAL USE PERMIT PROJECT Rohr Park, ADDRESS: 4548 Sweetwater Road Request: Proposed wireless telecommunications faoility consisting of up to (9) panel antennas mounted on SCALE: FILE NUMBER: a 72 foot light standard. All equipment will be located NORTH No Scale PCC 00.-58 on the ground adjacent to the base of the pole. c' 4~'Y~°~"""*" "'~ °'~'"""= °.cd r 01/05/01 CITY COUNCIL AGENDA STATEMENT / ITEM NO.: MEETING DATE: 08/07/01 ITEM TITLE: CONSIDERATION OF THE SAN MIGUEL RANCH AFFORDABLE HOUSING AGREEMENT RESOLUTION APPROVING AN AFFORDABLE HOUSING AGREEMENT RELATED TO SAN MIGUEL RANCH AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR ~ REVIEWED BY: CITY MANAGER~ ~d 9~/ 4/5THS VOTE: YES ~ NO ~ BACKGROUND On February 29, 2000, by Resolution No. 2000-068, City Council approved the San Miguel Ranch Tentative Subdivision Map Chula Vista Tract 99-04. The Final Maps, Subdivision Agreements, and Supplemental Subdivision Improvement Agreements for Phases 1, 2 and 4 are now before the City Council for consideration and approval. Condition number 194 of the tentative map required that Trimark Pacific San Miguel, LLC, the developer, enter into an agreement with the City to guarantee the construdion and delivery of housing units affordable to Iow and moderate income households prior to recordation of San Miguel Ranch's first final map. To comply with this condition, an Affordable Housing Agreement for San Miguel Ranch has been prepared for Council's consideration and approval. RECOMMENDATION That Council adopt the resolution approving the Affordable Housing Agreement for San Miguel Ranch and authorizing the Mayor to sign such Agreement on behalf of the City. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. PAGE 2, ITEM NO.: / MEETING DATE: 08/07/01 DISCUSSION The Cih~s State-mandated Housing Element, which was adopted by Council in December 2000, requires the provision of housing for all economic groups and distribution of affordable housing developments throughout the Ciys jurisdiction. The City's strategy to implement this mandate is to require 10 percent of any new subdivision in excess of fifty (50) units to be made affordable for Iow and moderate-income families (5% Iow and 5% moderate) and to balance affordable housing development throughout the City. The primary obiedive of this policy is to increase affordable housing opportunities in the new planned communities in the eastern part of the City. Under the City's Affordable Housing Program and based on a total of 1,394 residential housing units which are currently allowed to be constructed within San Miguel Ranch, the developer has an obligation to provide 70 units affordable to Iow income households and 70 affordable to moderate income households within the project. In order Jo ensure satisfaction of this obligation, the City has prepared an Affordable Housing Agreement for San Miguel Ranch for Council's consideration and approval. The Iow income housing units would be located in the Central (Phase II) and/or the Southern area (Phase IV} of the planned community within the areas identified in the San Miguel Development Phasing Plan as Neighborhoods A and B. As prescribed in the General Plan, the Iow-income housing sites were selected for their proximity and/or access to future public transit facilities and neighborhood services and facilities, such as retail commercial centers, public parks and schools. Neighborhood A was designated for single family attached use in the General Development Plan and the SPA Plan. Neighborhood B was designated for multifamily use (rental or for-sale). Therefore, both site~ would be adequate to accommodate affordable housing as prescribed in the Agreement. The moderate-income housing units will be located in Neighborhoods C, D, and E. The San Miguel Ranch Affordable Housing Agreement is expected to be implemented in three phases. The Initial Phase consists of a total of 464 units with the provision of forty-eight (48) Iow income and lwenty-five (25) moderate-income housing units. The Second Phase consists of a total of twentydwo (22) Iow income, which represents the final phase for the Iow income housing units, and F*venty-five (25) moderate income housing units. The Remaining Phase consists of hvenly-h, vo (22) moderate income housing units only. Construction of the forty-eight (48) Iow income and twenty-five (25) moderate income housing units in the Initial Phase is expected to begin before the issuance of the 616th building permit. The Second Phase is expeded to start prior to the issuance of the 1,334~h building permit. The proposed terms of the Agreement for San Miguel Ranch meets the requirements of the City's Housing Element of the General Plan. Trimark Pacific San Miguel, LLC has agreed to all terms. PAGE 3, ITEM NO.: /~/ MEETING DATE: 08/07/01 CEQA Compliance The proposed Agreement for the provision of affordable housing for San Miguel Ranch has been reviewed for compliance with CEQA. The proposed Agreement is a mechanism for implementation of affordable housing within the prescribed densities and maximum unit count of the San Miguel Ranch Genera[ Development Plan and SPA plan. Approval and execution of the Agreement would not, therefore, result in the construdion of any housing beyond that anticipated in the GDP and SPA plans and the environmental review documents previously certified for those plans. Therefore, no additional CEQA adion is necessary. FISCAL IMPACT The developer has paid all costs associated with the processing of the Affordable Housing Agreement. ATTACHMENTS 1. Affordable Housing Agreement for San Miguel Ranch (HJN ES) J:\COMMDEV~STAFF REP\08 07-0] \Al 13 SMR Afl Hsg Agr doc [8/1/01; 3:14 PMJ EXHIBIT A /,-/-~ Recording Requested by: ) ) CITY CLERK ) ) When Recorded, Mail to: ) ) CITY OF CHULA VISTA ) Attn: Community Development Department ) 276 Fourth Avenue ) Chula Vista, CA 91910 ) ) AFFORDABLE HOUSING AGREEMENT [SAN MIGUEL RANCH] This Affordable Housing Agreement ("Agreement") is made as of__ _, 2001, by and between the NNP-Trimark San Miguel Ranch, LLC, a Delaware Limited Liability Company ("Developer"), and the City of Chula Vista, a California municipal corporation ("City"), with reference to the following facts: A. The City of Chula Vista Housing Element established the City's "Affordable Housing Policy" which requires 10% of each housing development of 50 or more units to be affordable to low and moderate income households, with at least one half of those units (5% of project total units) being designated for low income households. (The Chula Vista Housing Element of the General Plan, Page II1-4.) B. Developer owns 742.94 acres of that certain real property, as shown on Exhibit "A", and located in the portion of the City of Chula Vista (referred to herein as "Project"). The Project is more particularly described in Exhibit "B" (Legal Description) which is attached hereto and incorporated herein by this reference. C. On December 17, 1996, the City approved an Amended General Development Plan for the Project, by Resolution Number 18532, which required compliance with the City's Housing Element of the General Plan. On October 19, 1999, the City approved Ordinance No. 2799 adopting the San Miguel Ranch Sectional Planning Area Plan-Planned Community District Regulations. D. On October 19, 1999, the City approved the San Miguel Ranch Sectional Planning Area (SPA) Plan for the Project by Resolution Number 19631. E. On February 29, 2000, the City approved the San Miguel Ranch Tentative Subdivision Map, Chula Vista Tract 99-04, by Resolution Number 2000-068("Project Tentative Map"). Condition number 194 of the Project's Tentative Map requires that Developer enter into an affordable housing agreement with the City prior to recordation of its first final map for purposes of further implementing its affordable housing obligation for the project. NOW THEREFORE, in consideration of the mutual promises described herein, and other good and valuable consideration, the parties agree as follows: 1. Definitions. Unless otherwise indicated, for purposes of this Agreement, the following terms shall mean: a. "Low income housing" means housing affordable to a household of persons who claim primary residency at the same unit with combined incomes that do not exceed 80% of the area median income (adjusted annually) based on household size, as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at the same unit as their primary residency. b. "Moderate income housing" means housing affordable to a household of persons who claim primary residency at the same unit with combined incomes between 80% and 120% of the area median income (adjusted annually) based on household size as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at the same unit as their primary residency. The range of income levels described in the above defined terms may chhnge from time to time in accordance with changes to federal, state and local laws. c. "Affordable housing" means housing for which the rent/housing payment paid by an income qualified household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for the following classes of housing: 1. Extremely low-income, rental or for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at thirty (30%) percent of the county median income; 2. Very low-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at fifty (50%) pement of the county median income; 3. Low-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at eighty (80%) percent of the county median income; and, 4. Moderate-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at one hundred twenty (120%) percent of the county median income. Should subsidized financing and/or other offsets to development costs from a public agency be proposed and obtained, the affordable housing expense shall be dictated by such program or granting Agency. If no affordable housing expense is specified, the affordable monthly rent] housing payment shall be established in accordance with Sectibn 50053 and 50052.5 of the Califomia Health and Safety Code, respectively. d. "Developer's Obligation" means the Developer's obligation to provide 10% of the total number of residential units constructed within the Project as low and moderate income housing, with at least 5% consisting of low income housing units, as more particularly set forth in GDP, SPA and this Agreement. e. "Regulatory Agreement" means a City-approved agreement imposing certain covenants, terms, and conditions on all or any portion of the Project relating to the acquisition, construction, equipping, operation, and occupancy of a residential development providing affordable housing units for low and/or moderate income households to ensure that such development will be developed, owned, and operated in accordance with this Affordable Housing Agreement. 2. Duty to Build. Developer shall satisfy its developer's obligation as follows: a. Moderate income housing units. In order to satisfy Developer's Obligation with regard to moderate income housing, Developer agrees to construct five pement of the total number of the Project's residential units as moderate income housing units. Developer shall complete construction of the moderate income housing units in accordance with the Implementation schedule, attached hereto as Exhibit C. Developer shall provide the City a biannual report documenting the progress Developer has made toward meeting Developer's Obligation for moderate income housing. b. Low income housing units. In order to satisfy Developer's Obligation with regard to low income housing, Developer agrees to construct low income housing units equal to at least five pement of the total number of the Project's residential units. The Developer shall commence construction of 70% of the total number of qualified low income housing units required by the Project, on or before the issuance by the City of the 616th building permit for the Project ("Initial Phase"). Developer shall thereafter diligently pursue completion of construction of the Initial Phase with construction of the Initial Phase to be completed no later than one year from the date of commencement of construction of said units. Thereafter, the Developer shall commence construction of the remaining number of qualified low income housing units required by the Project, on or before the City's issuance of the 1,334th building permit for the Project ("Remaining Phase"). Developer shall diligently pursue completion of construction of the Remaining Phase with construction of the Remaining Phase to be completed no later than one year from the date of commencement of construction of said units. Commencement of construction shall mean the Developer has obtained a build permit for that first building providing units affordable to and restricted for occupancy by low income households. The Developer may deliver 100% of the qualified low income housing units (construct both the Initial phase and Remaining phase) at the time of the Initial Phase. 3 c. Completion of construction; For purposes of paragraph 2(a) and 2(b) of this Agreement, construction shall be considered completed when final inspection of the low or moderate housing unit has been completed and occupancy and utility clearances have been issued in writing by the City. d. Minor delays. The thresholds described heroin for commencing construction of low and moderate income housing units are based upon the current phasing proposals for the Project as shown on the Tentative Map. City and Developer acknowledge that changes to the Project may be required from time to time which could have a minor or insubstantial impact on the timing of construction of the low or moderate income housing units. Accordingly, changes to the Project that could result in a delay of less than three months in the construction of such units may, in the City's sole discretion, be considered minor or insubstantial by the City's Community Development Director and made without amendment to this .Agreement. All other changes shall require a written amendment to this Agreement. 3. Duty to Identify. Developer shall construct the affordable housing units at the site(s) as identified on Exhibit "D". Such sites were selected based upon their proximity to and availability of existing and proposed public transit facilities and services, community facilities and services, and employment opportunities. 4. Duty to Implement Affordable Housing Program. Developer shall cause the Affordable Units to be developed, marketed, rented/sold in accordance with the City's goals, policies and programs contained in the Housing Element of the General Plan and the Affordable Housing Program Implementation Guidelines, and the Project's Sectional Planning Area (SPA) Affordable Housing Program, as they may be adopted and amended from time to time, the terms and conditions of which are hereby incorporated by this reference. In the event that there is an inconsistency between this Agreement and the City's affordable housing policies (collectively the "Affordable Housing Policies"), this Agreement shall control and the parties agree, as City deems necessary, to seek any appropriate modifications to the Affordable Housing Policies to create consistency with the terms and conditions hereof. 5. Demand to Build. Notwithstanding the provisions of paragraph 2 of this Agreement, if the City reasonably believes that the Developer will not reach the building permit thresholds described in paragraph 2 (which would trigger the construction of the low income housing units) or not complete construction of the moderate income housing units, the City shall have the right to demand that Developer construct a proportional amount of low and/or moderate income housing units relative to the total number of residential building permits that have been issued for the Project. The City shall provide the Developer with the written demand to construct the units within a reasonable period of time for the Developer to commence construction of said units. Developer shall complete construction of the low and/or moderate income housing units, as required by this paragraph, within one year of the commencement of construction of the units so demanded. The duty contained in this paragraph is non-cumulative to the duty in paragraph 2 with the City providing the Developer with the appropriate amount of credit for completed construction. 4 6. Right to Withhold Permits. The City has the absolute and unfettered right to withhold the issuance of any building permit for any residential unit within any residential development within the Project that has not been released in accordance with paragraph 8 herein if the Developer is not in compliance with the terms and/or obligations of this Agreement. 7. Development Permits, Maps and Documents. Developer shall at its sole expense, cause the preparation and diligent processing of all permits, agreements, plans, maps, and other documents, including but not limited to, market strategy plans, design development plan, and any amendments to the Project's General Development Plan and Section Planning Area Plan that may be necessary to meet the Developer's Obligation in the time frames set forth herein as Exhibit C, or shall cause such actions to occur. City and Developer agree to cooperate with each other in processing Developer's permits for the Project. Any unreasonable delay caused by City in this regard that is not caused by the fault of the Developer shall not be cause for City declaring Developer in default hereunder and Developer's performance schedule may be extended for a period of time equal to such delay provided that Developer has used, and continues to use, its best efforts to cause Project completion in a timely manner. 8. Release. a. If Developer transfers any portion of the Project which is subject to the burden of this Agreement, upon request by the Developer or its assignee, the City will release the portion so transferred of the burden of this Agreement as to such assigned portion if such portion has either complied with the requirements of this Agreement or if the Director of Community Development, in the Director's sole discretion, determines that other land within the Project will accommodate Developer's Duty to build low income housing units, b. Upon the sale of any individual unit to a homebuyer, the parties agree that such unit shall be released from the provisions of this Agreement. Such release shall not limit or modify in any way Developer's duty to build. c. City further agrees to timely consider any request for release by Developer pursuant to (a) above. When such release is granted, Developer and City agree to amend Exhibit D to identify those other sites to accommodate the affordable housing units in place of those sites originally identified and subsequently released of such burden. cl. In the event that a parcel is to be released pursuant to the provisions of paragraphs (a) or (b) above, the parties agree to execute and record such documentation as is reasonably required by a reputable title insurance company to evidence such release. All costs related to any such release shall be paid by Developer or its assignee; City shall have no responsibility of such costs. e. Upon the recordation of a City-approved regulatory agreement imposing affordable housing covenants with respect to all or any portion of the Project, unless such Regulatory Agreement otherwise expressly provides, the provisions of this Affordable Housing Agreement shall no longer be applicable to such portion of the Project, and the recordation of the Regulatory Agreement shall operate to release such portion of the Project from the terms hereof. f. The release of a portion of the Project from the terms of the Affordable Housing Agreement shall in no way alter the obligations of the Developer under the Affordable Housing Agreement with respect to other portions of the Project which shall continue in full force and effect until such time as Developer satisfies, in full, Developer's obligation hereunder. 9. Subordination and Notice. a. Subordination. Developer shall enter into subordination agreements with all lien holders having any interest in the Project to ensure that the provisions of this Agreement bind such lien holders should they take title to all or part of the property through quitclaim deed, sale, foreclosure or any other means of transfer of property. D~veloper shall deliver to the City the fully executed subordination agreements in a form acceptable to the City Attorney and suitable for recording on or before the issuance of the first building permit for the Project. b. Notice. Developer shall provide written notice of the terms of this Agreement (which could be a copy of this Agreement) to all purchasers and potential purchasers of real property within the Project, excluding however, a buyer of an individual housing unit. 10. General Provisions. a. Authority of Signatories. The individuals signing this Agreement on behalf of the City warrant that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of the City in accordance with a duly adopted resolution of the City Council of the City and (ii) this Agreement is binding upon the City in accordance with its terms. Developer and each individual signing this Agreement on behalf of Developer warrants that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of Developer, and (ii) this Agreement is binding upon the corporation in accordance with its terms. b. 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. c. Applicable Law. This Agreement will be construed and enforced in accordance with the laws of the State of California. d. Successors. All terms of this Agreement will be binding upon and inure to the benefit of the panics and their respective administrators or executors, successors and assigns. Developer hereby subjects the Project to the covenants, reservations and restrictions set forth in this Agreement. The Developer and the City hereby declare their express intent that the covenants, reservations and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the developer's successors in title to the Project; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions 6 shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. e. Modifications. No modification, waiver or discharge of this Agreement will be valid unless the same is in writing and signed by the parties to this Agreement. f. 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. g. Attorney's fees and costs. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. h. Exhibits. All exhibits referred to in this Agreement are attached, and are a part of, this Agreement. i. Captions. Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement. j. Recording. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County of San Diego. k. No Third party Beneficiary. No claim as a third-party beneficiary under this Agreement by any person, corporation or any other entity, shall be made or be valid against City or Developer. 1. Incorporation of Recitals. The recitals set forth herein are part of this Agreement. m. Assignment. The obligations of the Developer under this Agreement shall not be assigned in whole or apart, without the express written consent of the City in its sole discretion. Any unapproved assignment shall be null and void. (Next page is Signature Page) 7 SIGNATURE PAGE TO AFFORDABI.E HOUSRqG AGREEMENT SAN MIGUEL RANCH IN WITNESS WHEREOF, City and Developer have executed this Agreement this day of ,2001. CiTY OF CHULA VISTA NNP-TRIMARK-PA-L:SFi~-.SAN MIGUEL RANCH, 11 C.,. a Delaware Limited Liability Company Stephen\ E. Hester By: ShirleyHo~on, Its: vice P~esident Mayor By: , , . ~NNA K. MONSEES I. VICE PRESIDENT AND Attest: [ t s: CHIEF FINANCIAL OFFICER Susan Bigelow City Clerk Approved as to form by City Attorney Approved as to form by Attorney for Developer 8 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Californ~a~ County of 0 }F ~ ~,. ~ Z.~ ss. On _'~ / ?~ U!~t! i I before me personally appea ed ~ersonally known to me ~ proved to me on the basis of satisfacto~ evidence j ~-- -- ~;~W~-- -- [ to be the person~ whose name~ is/~ ~ ~ subscribed to t~e within instrument and ~ ~/ ~on~ Coun~ ~ acknowledged to me that he/s~ executed ~~mm.~,~ ~ the same in his/h~/the!r authorized ~~-~' ~'~'~~ capacity~, and that by his/hcr/~ signature(an the instrument the person~or the entity upon behalf of which the person~ acted, executed the instrument. WlT~SS my hand an~3officia~ seal Place Notary Seal Above Signature of Nota~ Publgc OPTIONAL Though the information below ~s not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ids} Claimed by Signer Signer's Name: ~ J Individual ~op of thumb I~ere [ ~ Corporate Officer ~ Title(s): I~} Padner~r. Limited F~ General ' ] Attorney in Fact f' Trustee [ Guardian or Conservator I Other: Signer Is Representing: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County personally appeared ~~ ~ ...... Name(s) of Signer(s) ~ personally known to me [~ proved to me on the basis of satisfactow evidence to be the perso~ whose name(~) is/~ subscribed to the within instrument ahd acknowledged to me that ~/she/~executed the same in ~her/t~ authorized capacity(i~), and that by ~her/t~ signature(~ on the instrument the person~, or the entity upon behalf of which the person(~ ~ LIZ GROMAN I ~ ~ ~. · 1298761 ~ acted, executed t~ instrument. fEP~ NOTARY PU~~ ~ WITNE~ h~d and official seal. Place NotaW Seal Above '- nsture of NOla~ Public OPTI L Though the mformahon below is not required by law. it may prove valuable to persons relying on the document and could prevent haudulent removal and reattachment of this form to another document Description of Attached .¢~ ?tleorTypeofDocument: ::~~,v~ ~ ~¢' Document Date: ~O ~ Number of Pages: ~ Signer(s) Other Than Named Above: ;~'2 Capacity(ies) Claimed by Signer ~N~ K. J Individual ~ ~ ~F~ Top o~ Ihumb here ~, ; Corporate Officer -- Title(s): ~ ! , Padner~ ILimited ;]General ~' [ ~ Trustee ~ J J Guardian or Conse~ator Signer is Representing: ~P¢ /~~ Page 10 EXHIBIT B DESCRIPTION OF SUBJECT PROPERTY All the certain real property located in the City of Chula Vista, County of San Diego, State of California, described as follows: Portions of Sections 21, 22, 27 and 28 Township 17 South, Range 1 West, San Bemardino Meridian, According to Official Plat Thereof, All in the City of Chula Vista, County of San Diego, State of California. B-! EXHIBIT C SAN MIGUEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE FIRST PHASE - 48 UNITS Timing Tasks Prior to approval of the Final Map Identify/Define low-income housing project and Involving the 616th dwelling unit for the submit the following information to the satisfaction Project. of the Housing Division of the Community Development Department: 1. Identify and provide proof of control of site. 2. Determine number of units (minimum 48), proposed affordability levels, terms of affordability, and type of housing (rental vs. for-sale). 3. Identify subsidies, incentives and financing mechanisms. Prior to approval of the Final Map Submit complete site plan application for Design Involving the 892® dwelling unit for the Review Commission review of a minimum of 48 project or prior to issuance of the 360t~ low-income housing units. ! Building Permit for the Project, whichever occurs first. !Prior to issuance of the 465th Building Finalize proposed minimum 48-unit low-income Permit for the Project. housing project by submitting the following information to the satisfaction of the Housing Division of the Community Development Department: 1. Submit Affordable Housing Review Application, including project pro-forma analysis. 2. Identification of financing cycles (tax-credit or bond financing) and timing of financing (each March or July). 3.Affirmative marketing plan. 4. Site Plan approved by Design Review Commission. Prior to Issuance of the 544th Building Obtain financing for a minimum of 48 low-income Permit for the Project. housing units to the satisfaction of the Housing Division of the Community Development Department. SAN MIGUEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE Prior to Issuance of the 616th Building Obtain building permit approval and commence Permit for the Project. construction of 48 low-income housing units. Prior to Issuance of the 946tn Building Obtain Final Inspection and release of utilities for a Permit for the Project. minimum of 48 low-income housing units SECOND PHASE - 22 UNITS Prior to issuance of the 1,105tn building IdentifyfDefine low-income housing project and permit for the Project. [note: approx. 7 submit the following information to the satisfaction months after 947tn bldg. permit issued, the of the Housing Division of the Community 1st in phase 3]. Development Department: 1. Identify and provide proof of control of site. 2. Determine number of units (minimum 22), proposed affordability levels, terms of affordability, and type of housing (rental vs. for-sale). 3. Identify subsidies, incentives and financing mechanisms. Prior to approval of the 1,171st Building Submit complete site plan application for Design Permit for the Project [3 months later]. Review ConUmssion review of a minimum of 22 low-income housing units. Prior to issuance of the 1,236th Building Finalize proposed minimum 22-unit low-income Permit for the Project. [3 months later housing project by submitting the following because the absorption rate slows to 15 per information to the satisfaction of the Housing month between 1217 and 1394 units] Division of the Community Development Department: I. Submit Affordable Housing Review Application, including project pro-forma analysis. 2. Identification of financing cycles (tax-credit or bond financing) and timing of financing (each March or July). 3. Affirmative marketing plan. 4. Site Plan approved by Design Review Commission. C-2 SAN MIGUEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE Prior to Issuance of the 1,289th Building Obtain financing for a minimum of 22 low-income Permit for the dwelling units of the housing units to the satisfaction of the Housing Project.[3-1/2 months later] Division of the Community Development Department. Prior to Issuance of the 1,334th Building Obtain building permit approval and commence Permit for the Project. [3 months later], construction of 22 remaining low-income housing ' units. Prior to Issuance of the 1,394th or final Obtain Final Inspection and release of utilities for a Building Permit for the Project [4 months 22 remaining low-income housing units. later], or one year from the date of issuance of the building permit, whichever occurs first. C-3 SAN MIGUEL RANCH MODERATE INCOME HOUSING IMPLEMENTATION SCHEDULE INITIAL PHASE - 25 UNITS TIMING TASKS Prior to the approval of the last Final Map Submit detailed marketing information to satisfaction showing individual lots in phase 1 of Housing Division/Community Development (approximately 359 single family lots in Department showing that 25 qualified moderate phase 1). income units will be constructed during phase 1. Prior to Issuance of the 441st Building Submit detailed information to the satisfaction of Permit in phase 1, or 95% of Building Housing Division/Community Development Permits in phase 1, whichever occursfirst. Department showing that 25 qualified moderate income housing units have been constructed and sold to qualified buyers in phase 1. SECOND PHASE - 25 UNITS Prior to the approval of the last Final Map Submit detailed marketing information to satisfaction showing individual lots in phase 2 of Housing Division/Community Development (approximately 622 single family lots in Department showing that 25 qualified moderate phases1 and 2). income units will be constructed during phase 2. Prior to Issuance of the 899th Building Submit detailed information to the satisfaction of Permit, or all Building Permits in phase 1 Housing Division/Community Development plus 95% of Building Permits in phase 2, Department showing that 25 qualified moderate whichever occurs first, income housing units have been constructed and sold to qualified buyers in phase 2. FINAL PHASE - 20 UNITS Prior to the approval of the last Final Map Submit detailed marketing inforrnation to satisfaction showing individual lots in Phase 3 of Housing Division/Community Development (Approximately 941 single family lots in Department showing that 20 qualified moderate phases 1,2, and 3). income units will be constructed during phase 4. Prior to Issuance of the 1,324th Building Submit detailed information to the satisfaction of Permit, or all Building Permits in phases Housing Division/Community Development 1,2,3 and 95% of Building Permits in phase Department showing that 20 qualified moderate 4, whichever occurs first, income housing units have been constructed and sold to qualified buyers in phase 4. C-4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AFFORDABLE HOUSING AGREEMENT RELATED TO SAN MIGUEL RANCH AND AUTHORIZING THE MAYOR TO SIGN THE AGREEMENT WHEREAS, a condition of approval for the San Miguel Ranch Tentative Subdivision Map Chula Vista Tract 99-04 required Trimark Pacific Homes, L.P. (the "Developer") to enter into an agreement with the City of Chula Vista to guarantee the construction and delivery of housing units affordable to Iow and moderate income households prior to recordation of San Miguel Ranch's first final map; and WHEREAS, to comply with this condition, the City has prepared an Affordable Housing Agreement for the San Miguel Ranch Planned Community for City Council's consideration and approval; and WHEREAS, this Agreement implements affordable housing requirements and impacts previously analyzed in the certified EIR for the San Miguel Ranch GDP and SPA Plan, therefore, no additional action is required under CEQA. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that this City Council does hereby approve in the form presented an Affordable Housing Agreement related San Miguel Ranch, 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 for and on behalf of the City of Chula Vista. Presented by Approved as to form by Chris Salomone J~r~(~ Ati°r~yM' ~'~h enY f ,~,,~I ~';~ Community Development Director [Hines] J:/HO M E/COM MOEV~RESOS\CC Reso SMR Afl Hsg Agr COUNCIL AGENDA STATEMENT Item '~ Meeting Date 8/7/01 ITEM TITLE: Report: Consideration of a Final Map for San Miguel Ranch Phases 1, 2 and 4, Chula Vista Tract 99-04. Resolution Approving Final Map of Chula Vista Tract No. 99-04, San Miguel Ranch Phase 1, 2 and 4, Accepting on behalf of the City of Chula Vista, Maintenance and Access Easements, Assignable General Utility and Access Easements, Drainage and Access Easements, Public Trail and Landscape Buffer Easements, Tree Planting and Maintenance Easements, Sight Visibility Easements, Sewer Easements, and Pedestrian Access Easements; Accepting on behhlf of the public for public use: Calle La Quinta, Paseo Veracruz, Mount Miguel Road and Proctor Valley Road, granted on said maps within said subdivision; Acknowledging on behalf of the public, the Irrevocable Offers of Dedication for Lot "P" for open space, transportation and other public purposes; for Lots "M" and "GG" for public park purposes; for Lots "A' and "O' for open space and other public purposes; all as shown on this map within this subdivision; approving the Subdivision Improvement Agreement and authorizing the Mayor to execute said agreement; and approving a reduction in area for CPF Lot I3 from 2.7 acres to 1.0 acres. Resolution Approving a Supplemental Subdivision Improvement Agreement for San Miguel Ranch Phase 1, 2 and 4, Chula Vista Tract No. 99-04, and authorizing the Mayor to execute said Agreement Resolution Approving a Grant of Easements, License and Maintenance Agreement between NNP-Trimark San Miguel Ranch, LLC and the City for the maintenance of public landscaping and drainage improvements within a portion of San Miguel Ranch Phases 1, 2 and 4 and authorizing the Mayor to execute said agreement. Resolution Approving an Option Agreement between the City and NNP-Trimark San Miguel Ranch, LLC, for the San Miguel Ranch Secondary Community Purpose Facility site CP-B, and authorizing the Mayor to execute said Agreement. SUBMITTED BY: Director of Public Works Director of Planning and Building Director of Parks and Recreation~ REVIEWED BY: City Manage~? l? ~ (4/5ths Vote: Yes_No~ Page 2, Item __ Meeting Date 8/07/01 On February 29, 2000 by Resolution No. 2000-068, the City Council approved a Tentative Subdivision Map for San Miguel Ranch Chula Vista Tract 99-04. The Developer has submitted a master final showing "super-block" lots corresponding to the Tentative Map planning areas. This map also shows the public street dedications and backbone utility easements required to serve the super block lots. Three other San Migue! Ranch items on tonight's agenda precede the Final Map approval: 1. The San Miguel Ranch Fiscal Deficit Fee Ordinance and Urgency Ordinance 2. The San Miguel Ranch Affordable Housing Agreement 3. The CPF Option Agreement The above items are prerequisites to the approval of the Final Map. RECOMMENDATION: That Council approve the Resolutions approving the Final Map and the Supplemental Subdivision Improvement Agreement, the Grant of Easements, License Maintenance Agreement and the Option Agreement, subject to the conditions and findings contained therein. ENVIRONMENTAL REVIEW A Subsequent Enviromnental Impact Report for San Miguel Ranch Sectional Planning Area Plan and Tentative Maps (FSEIR 97-02) was certified by fhe City Council on October 19, 1999. Pursuant to Section 15164 of the State CEQA Guidelines, an Addendum to the Final SEIR that addresses minor technical changes in the Final Maps for Phases 1, 2 and 4 was prepared. The conclusion of the Addendum is that only minor technical additions are necessary to make the previously certified FSEIR 97~02 adequate under CEQA and therefore an addendum is the appropriate environmental document. Pursuant to CEQA, the City Council should consider the Addendum prior to making a decision on the final map. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The project is generally located north of Proctor Valley Road and east of the SR-125 corridor within the area of San Miguel Ranch designated as Phase 1, 2 and 4 (see locator map, Attachment A). The subdivision map consists of 47 numbered lots and 33 lettered lots for a total of 474.86 acres. Ten residential super blocks, corresponding to the Tentative Map planning areas are being created north of Proctor Valley Road to be further subdivided by the subsequent planning area maps ("B" Maps). The developer is dedicating or offering for dedication to the City: ,, A 19.0-acre gross area community park site per the Tentative Map, north of Mount Miguel Road Right of Way for Mount Miguel Road and Proctor Valley Road and other backbone streets o A public greenbelt trail along Proctor Valley Road, Mount Miguel Road and through Open Space Lot O to the eastern City limits. · 49 acres of right of way for SR-125 adjacent to the subdivision. 127 acres of open space preserve area for future acquisition by the United States Government for inclusion in the San Diego National Wildlife Refuge. The final map for said subdivision has been reviewed by the Public Works Department and found to be in substantial conformance with the Tentative Map. Approval of the map constitutes acceptance by the City of all assignable and irrevocable general access and utility easements, sight visibility easements the Page 3, Item Meeting Date 8/07/01 maintenance and access easement, public trail easements, landscape buffer easements, and all public drainage easements within the subdivision. Approval of the map also constitutes acknowledgment on behalf of the public of Irrevocable Offers of Dedication for Lots "A" and "O" for Open Space, Lot "P" for Open Space and Public Transportation (the future SR-125 right-of-way) and Lots "M" and "GG" for Public Park Purposes. The developer has executed a Subdivision Improvement Agreement (SIA) wherein all backbone improvements and subdivision monumentation are bonded and the developer agrees to construct the required improvements within two years of this Council action. The developer has also entered into a Supplemental Subdivision Improvement Agreement (SSIA), which addresses several on-going conditions of the tentative map, which must be satisfied prior to the approval of the subsequent "B" Maps, or further development of Phases 1, 2 and 4. The SSIA also sets forth detailed provisions for implementing all park development conditions and indemnifies and holds the City harmless from actions of the developer. The SIA and SSIA have been approved as to form by the City Attorney and is ready for Council approval. A plat of the subdivision, the Minutes of the 2/29/00 Council meeting and the Developer's Disclosure statement are attached herewith as Attachments B, C and D, respectively. GRANT OF EASEMENT, LICENSE AND MAINTENANCE AGREEMENT In compliance with Tentative Map conditions of approval, the developer has formed the San Miguel Ranch Master Association as the Master Homeowner Association (MHOA) to maintain common area landscaping and drainage improvements within the San Miguel Ranch Project. The developer of the project has requested that the MHOA be assigned the responsibility for maintaining certain public landscaping and drainage improvements, specifically the landscaping of medians and parkways within the public right-of-way of Mount Miguel Road, the drainage improvements within the General Utility and Access Easement located within Lot "N" and a planted retaining wall within the community park site. Initially, the developer will construct and maintain the landscaping and drainage improvements until acceptance by the City. After the landscaping has been established and accepted, the developer will transfer its obligations under the proposed Grant of Easements, License and Maintenance Agreement ("Agreement") and the Master Declaration of the MHOA to the MHOA, which in turn may transfer said obligations to a sub-association or an apartment project's owner as the case may be. The key points of the Agreement, which is Attachment E to these Resolutions, are as follows: 1. The City shall grant an easement for landscape maintenance purposes over those public areas to be maintained by the MHOA. 2. The City shall grant an access easement for maintenance purposes over its own General Utility and Access Easement within Lot "N" for use by the developer and the MHOA in order to maintain the detention basin outlet facilities within Lot "N". The City shall grant a right-of- access license to the retaining wall on the park property (Lot "M"). 3. The developer and the MHOA are required to maintain all landscaping in the medians and landscaped parkways, according to the terms of the Agreement. 4. The Agreement requires the MHOA to repair, at MHOA cost, any City's facility (i.e., irrigation facilities, sidewalks curbs, gutters, pavement and trees) damaged by the MHOA maintenance operations. Page 4, Item __ Meeting Date 8/07/01 4. The Agreement requires the MHOA to repair, at MHOA cost, any City's facility (i.e., irrigation facilities, sidewalks curbs, gutters, pavement and trees) damaged by the MHOA maintenance operations. The Agreement contains provisions governing the transfer of the MHOA maintenance obligations, insurance requirements, and indemnity provisions to a Transferee. The Agreement provides for the developer to be released from all maintenance responsibilities of this Agreement once transfer to the MHOA occurs. Staffbelieves that the proposed Agreement will guarantee the maintenance of the aforementioned public improvements and recommends Council approval. The City Attorney has reviewed and approved the proposed Agreement as to form. COMMUNITY PURPOSE FACILITIES REQUIREMENTS: Pursuant to the Municipal Code, the San Miguel Ranch Tentative Map (TM) was approved containing 5.8 net useable acres of Community Purpose Facility (CPF) lands in compliance with the requirements of the Planned Community zone (Municipal Code Section 19.48.025). Analysis at the TM level determined that lot "M" had topographical constraints that made it impossible to meet the entire CPF requirement at that site. So, two CPF sites were designated, a 3. i acre Lot "M" on the northeast side of the Mt, Miguel Road/Proctor Valley Road intersection, and a 2.7 hcre lot "CP-B" (Lot 13 of the Final Map), adjacent to the Community Park site. Lot M (Lot 10 of the Final Map) is the primary site for providing traditional CPF uses such as a church. The additional CPF site, lot CP-B, is considered a secondary CPF site, which would best serve future residents of the community by providing authorized CPF uses compatible to and integrated with the future community park. Such uses could include community facilities such as a multi-purpose building for a YMCA, Boys or Girls Club, or other recreational fields. Adopted TM conditions required that the applicant agree to accordingly restrict use of the site. To that end, Trimark has executed a covenant restricting uses of the site to those compatible with the Community Park, and requiring them to submit the proposed uses in writing to the City for approval by the City Manager. REDUCTION 1N TOTAL ACREAGE FOR CPF LOT CP-B (Final Map Lot 13) During the preparation of more detailed grading, subsequent to the TM, necessary refinements in grading resulted in a proposed reduction in the net acreage of the community park site. Staff required that the applicant maintain the 16.2 net acres for the community park site shown on the approved TM. '['he solution was to shift 1.7 acres of the CPF site into the community park. Staffwas comfortable with the shift, since as noted above, the CPF use and the park use were required to be integrated by the approved TM. Since the adjoining area was envisioned to be a parking area for the park, it logically followed that the two uses could share parking, such that the remaining 1.0 acres of CPF land could still sufficiently accommodate the type of uses required by the TM approval. This effective reduction in designated CPF lands, however, requires specific Council action per the CPF Ordinance. Pursuant to the Community Purpose Facilities Ordinance (Municipal Code section 19.48.025(B)), the City Council can determine "that a lesser amount of land is needed, based on availability of shared parking with other facilities or other community purpose facilities that are guaranteed to be made Page 5, Item __ Meeting Date 8/07/01 available to the conununity". Municipal Section 19.48.025(C) further requires that all CPF uses, including shared parking, obtain approval of a Conditional Use Permit. Consistent with those provisions, staff recommends that the size of lot CP-B be reduced from 2.7 acres to 1.0 acre on the Final Map (Lot 13). This would thereby reduce the project's overall 5.8-acre CPF requirement to 4.1 acres. The subject 1.7-acre area is part of Lot GG, designated on the Final Map as "Community Park" instead ofCPF. The amount and location of the shared parking will be determined by approval ora Conditional Use Permit and the Director of Parks and Recreation. Staff has included language in the Resolution of Approval of the Final Map that makes the finding that formally reduces the project's CPF acreage requirement, based on the availability of shared parking within the Community Park. The Supplemental Subdivision Improvement Agreement (SSIA) for the Final Map contains provisions to ensure that Condition 112 is satisfied, including the requirement that a Conditional Use Permit be filed for the shared parking use. It is anticipated that the San Miguel Ranch Community Park Master Plan will identify the general location and design of recreational facilities for the Community Park lots and shared parking. Approval of the Conditional Use Permit showing detailed design for shared parking will be required as part of the Conditional Use Permit for the CPF use. The SSIA also contains provisions wherein the Applicant acknowledges the benefit of this finding and agrees to provide improvements on 1.7 acres of park land, as defined by the San Miguel Ranch Community Park Master Plan, beyond the Project's park obligations. COMMUNITY PURPOSE FACILITIES SITE OPTION TO PURCHASE AGREEMENT Trimark is required by Condition of Approval 112D of the San Miguel Ranch Tentative Map (TM) to enter into an "Option Agreement" with the City which grants the City an option to purchase the CPF site CP-B adjacent to the Community Park at any time for so long as it is designated a CPF site. Once the option is exercised, the sale must close within 90 days. It further protects the City in the event that there is a cloud upon the title to the property, or if the property has financial encumbrances, and ensures that it will be free and clear of any hazardous materials. In the event the developer sells the property to a non-profit entity, the agreement requires the developer to provide 10 days notice prior to execution of the purchase agreement, should the City desire to exercise its option to purchase. This agreement also is intended to satisfy Condition 112F, which specifies requirements regarding sale of the site to a non- profit entity. The Condition grants the City the right of approval over the sale of the CPF site, to insure the proposed use is compatible with the adjacent Community park. This Agreement has been reviewed by the City Attorney, who has determined that it satisfies the above TM conditions of approval. The Agreement has already been executed by Trimark as required m~d no further action is necessary. FISCAL IMPACT: Map and Subdivision Agreement Review: None to the City. Developer has paid all costs associated with the proposed Final Map and all agreements The Cities'cost for review and processing of the Agreements has been covered by the San Miguel Ranch Project deposit account. Community Purpose Facility Option Agreement: There are no fiscal impacts at this time. Should the City exercise its option to purchase, the fiscal impact to the City will be re-evaluated at that time. The City's costs for processing of the Option Agreement has been covered by the San Miguel Ranch Project deposit account established for NNP-Trimark Pacific San Miguel. Page 6, Item __ Meeting Date 8/07/01 Attachments: Attachment A: Locator Map - San Miguel Ranch Attachment B: Plat - Chula Vista Tract 98-04, San Miguel Ranch, Phase 1, 2 and 4 Attachment C: Minutes of 2/29/00 (Resolution No. 2000-068) Attachment D: Developer's Disclosure Statement Attachment E: Grant of Easements, License and Maintenance Agreement Attachment F: CPF Option Agreement Attachment G: Plat of CPF Lot 13/Park Site J:\EngineerLt~GENDA\San Miguel Map No 1.doc SAN MIGUEL RANCH FINAL SUBDIVISION MAP BONITA SIJNNYSIDE PROJECT LOCATION ESTANCIAr CANYON~ CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT City of Chula Vista PROJECT DESCRIPTION: C) ^PP,,OAN~ San MiQuel Ranch PROJ£CT Norih of Proctor Valley Rd ^DCRESS: & West of Rolling Hills Ranch I/// // ISan Miguel Ranch '---- -- Project Boundary SCALE: FILE NUMBER: NORTH No Scale PCM-01-07 ATTACHMENT A ATTAOHM N"i" PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 3. CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING PCS-99-04, THE TENTATIVE SUBDIVISION MAP AND CONDITIONS OF APPROVAL FOR SAN MIGUEL RANCH, CHULA VISTA TRACT 99~04 The applicant, Tr'lmark Pacific-San Miguel LLC, is requesting approval of a Tentative Subdivision Map for the entire 743-acre San Miguel Ranch project area, involving 820 single-family lots, four residential super lots with capacity for 575 dwelling units, one commemial center lot, two community purpose facility lots, two park lots, one elementary school lot, and nine open space lots on 743. I acres located east and north of Proctor Valley Road, south of Sweetwater Reservoir and Mother Miguel Mountain, and west of the Rolling Hills Ranch area. The Tentative Map is consistent with land uses established in the SPA plan, approved by Council in October 1999, and is the next stage in the master planned community approval process after SPA approval. 'Director of Planning and Building) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Senior Planner Batchelder presented an overview of the project site and its characteristics and constraints, the tentative map considerations, a summary of administrative density transfers, and the grading plan. Mayor Horton opened the public hearing and asked if anyone from the audience wished to speak. Stephen Hester, representing Trimark Pacific Homes-San Miguel, stated that the project is in compliance with the SPA Plan, the General Development Plan, the Environmental Impact Report and the management plan for the Otay Tar Plant preserve areas. He asked the Council to approve the project. Joseph Janosik, 6645 Jonel Way, asked the Council to provide access to SR 125 and to the new development areas from his residential area, since he and other neighboring property owners may wish to annex to Chula Vista sometime in the future. Ray Ymzon, representing the Sweetwater Valley Civic Association in Bonita, read a letter into the record objecting to the project. PUBLIC HEARINGS (Continued) There being no further comments, Mayor Horton closed the hearing. ACTION: Councilmember Salas offered Resolution ?40. 2000~068, Resolution of the City Council of the City of Chula Vista approving the Tentative Subdivision Map and Conditions Of Approval for San Miguel Ranch, Chula Vista Tract 99-04, heading read, text waived. The motion carried 4-0-1, with Mayor Horton abstaining. TTACHMENT CITY OF CHULA VISTA DISCLOSURE STATEMENT You are required to fde a Statement of Disclosure of certain ownership or financial interests, payments, or campaign contributions on ail matters which will require discretionary action on the part of the City Council, Planning Commission, and all other official bodies. The following information must be disclosed: 1. List the names of ail persons having a financial interest in the property which is thc subject of the application or the Contract, e.g., owner, applicant, Contractor, subcontractor, material supplier, etc. 2. If any person* identified pursuant to ( 1 ) above is a corporation or partnership, list the names of all individuals oWning more than 10% of the shares in the corporation or owning any partnership interest in the parlnership. 3. If any person* identified pursuant to (1) above is a non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as lxnstee or beneficiary or tmstor of the trust. 4. Have you had more than $250 worth of business transacted with any member of tDe City staff, Boards, comrmssions, comrmttees, and Council within the past twelve months? Yes No/,/If yes, please indicate person(s): 5. Please identify each and every person, including agents, employees, consultants, or independent Contractors who you have assigned to represent you before the City in this matter. 6. Have you and/or your officers or agents, in the aggregate, contrib~d more than $1,000 to a Council member in the current or preceding election period? Yes No ,~ If yes, state which Council member(s): ** *(NOTE: Attach Addltiona~)lages~as ~eee~aryt *: ~ Date: '~ - '~..~ - C)[ ~--~~ Signa~ of Co~a&odApplig~t ~ Prated o~T~ed Name of Con~actor/Applic~t * Pers~nisde~nedas:AAnyindividuaL~rm~c~-parmersh¢~j~intvenmre~ass~ciati~n~s~cialclub~patemal organization, corporation, estate, ~st, receiver, syndicate, this and any other counF, ciF, or count, ciF municcaliF, diswicL or other poli~cal subdivision, or any other ~oup or combination acting as a unit. H:~HOMEXENG~EERXLANDDE~FO~SXDISCLOSE.FRM ATTACHMENT~. RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency for less than a fee interest for which no cash consideration has been paid or received. (ABOVE SPACE FOR RECORDER*S USE} GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT Map (DEDICATED EASEMENTS) This GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT ("Agreement") is made as of this day of ,200_, by and between the CITY OF CHULA VISTA, a municipal corporation ("City"), and NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ("NNP"). RECITALS A. This Agreement concerns and affects certain improvements with portions of the real property located in Chula Vista, California, more particularly described in Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part of a planned residential development project commonly known as "San Miguel Ranch.", Chula Vista Tract No. 99-04, being the subject of the City Council Resolution No. 2001- (the "City Resolution"). For purposes of this Agreement, the term "Project" shall refer to the overall San Miguel Ranch project, including, but not limited to the "Property." B. NNP is the Declarant under that certain Master Declaration of Restrictions For San Miguel Ranch Master Association filed for record on as Document 2001 - , Official Records of San Diego County, California (the "Master Declaration"). NNP has caused the formation of SAN MIGUEL RANCH MASTER ASSOCIATION, a California Nonprofit Mutual Benefit Corporation ("MHOA") to maintain certain areas in the Project. Furthermore, one or more sub-associations may be formed ("SHOA") for a particular project(s) within San Miguel Ranch, the purposes of which would include the maintenance of certain amenities within the project over which the SHOA has jurisdiction. C. The Property is covered by the certain final map (the "Final Map") described on Exhibit "A" attached hereto and referenced in the title to this Agreement. D. In order for NNP to obtain the Final Map and for the City to have assurance that the maintenance of certain areas within the Project would be provided for, the City and NNP entered into a Supplemental Subdivision Improvement Agreement pursuant to the City Resolution, in which NNP agreed that maintenance of such areas shall be accomplished by the creation of a home owners association. Parcels "A" and "B" and "C" shown on Exhibit "El" attached hereto describe those particular areas which were dedicated to the public on the Final Map but which include landscaping and drainage improvements to be maintained by the MHOA. The public areas to be maintained by the MHOA are collectively referred to as the "MHOA Maintained Public Areas." E. The City desires to grant to NNP easements for landscape maintenance purposes upon, over and across the MHOA Maintained Public Areas within portions of Parcels "A" and "B" of Exhibit "A" and a license for wall maintenance purposes within Parcel "C" of Exhibit "A" and as shown on Exhibit "S," in order to facilitate the obligations of NNP as set forth in Supplemental Subdivision Improvement Agreements, adopted pursuant to the City Resolution. NOW, TH EREFORE, in consideration of the mutual covenants herein contained, the parties agree as set forth below. 1. Grant of Easements and License. The City hereby grants to NNP and its agents, successors and assigns, the following easements over Parcels "A" and "B" of Exhibit "A" and the following license for wall maintenance purposes within Parcel "C" of Exhibit "A": (i) Non-exclusive easements and rights-of-way over and across Parcels "A" and "B" of Exhibit "A" for the purpose of maintaining, repairing and replacing the following: (A) The landscaping within median and parkways in Mount Miguel Road shown and described on Exhibit "B" attached hereto; (B) The drainage and access improvements within the Maintenance and Access Easement adjacent to the detention basin outlet structure within lot N of CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PHASES 1, 2 & 4 "A" MAP NO. 1, shown and described on Exhibit "El" attached hereto; (ii) A non-exclusive license across lot M of CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PHASES 1, 2 & 4 "A" MAP NO. 1, to maintain the retaining wall within lot M shown and described on Exhibit "B" attached hereto. This license is unilaterally revocable by the City. These grants are made without any warranties of any kind, express or implied, other than the warranty stated in Paragraph 13(f) below. 2. Maintenance Responsibilities. -2- {a) NNP to Initially Maintain. NNP hereby covenants and agrees, at its sole cost and expense, to maintain, repair and replace, or cause to be maintained, repaired or replaced, those improvements within the MHOA Maintained Public Areas which are described on Exhibit "C" attached hereto, at a level equal to or better than the level of maintenance set forth in the Section of the Master Declaration entitled "Level of Landscape Maintenance". For purposes of this Agreement, the term "Maintenance" or "Maintain" shall mean the maintenance, repair and replacement obligations described herein and on Exhibit "C" hereto and shall also include repair and replacement at no cost to the City of any City owned property that is damaged during performance of the maintenance responsibilities pursuant to this Agreement. Exhibit "C" also refers to the maintenance responsibilities of City. (b) Transfer to MHOA. Upon NNP's transfer of maintenance obligations to the MHOA, (i) the MHOA shall become obligated to perform the obligations so transferred, and (ii) subject to the City determining that the requirements of Paragraph 3 below have been satisfied, NNP shall be released from such obligation. (c) Transfer By MHOA. 'Fhe MHOA shall have the right to transfer Maintenance obligations to a sub-association ("SHOA") or to the owner of an apartment project ("Transferee"). Upon the MHOA's transfer of Maintenance obligations to a Transferee, (i) the Transferee shall become obligated to perform the obligations so transferred, (ii) the MHOA shall retain the right to perform the Maintenance should the Transferee fail to do so, and (iii) the MHOA shall be released from the obligations so transferred subject to the City determining that the requirements of Paragraph 4 below have been satisfied. Although it is possible that Maintenance obligations might be transferred to an apartment owner, NNP does not believe it is likely that Maintenance obligations will be transferred to an apartment owner. 3. Assiqnment by NNP and Release of NNP (a) Assignment. Upon NNP's transfer of the Maintenance obligations to the MHOA, it is intended by the parties that the MHOA shall perform the Maintenance obligations either itself or by contractors. Such transfer wiil release NNP from its obligations only if all of the following occur: (i) MHOA Accepts Obligation. The MHOA has unconditionally accepted and assumed all of NNP's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of NNP under this Agreement. The assignment shall also have been approved by the appropriate governing body of the MHOA by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) MHOA's Master Declaration. The City has reviewed and approved the MHOA's recorded Master Declaration to confirm that said document contains appropriate maintenance, indemnity and insurance provisions. The City hereby -3- acknowledges that it has so approved the Master Declaration. This condition "(ii)" will apply to any further amendments which require City's consent pursuant to provisions of the Master Declaration or which would be contrary to the terms of this Agreement. (iii) MHOA Insurance. The MHOA procures and formally resolves to maintain at its sole cost and expense, commencing no later than the City's release of all of NNP's landscape maintenance bonds, a policy of public liability insurance which at least meets the requirements of Section 5.1 (a) of the Master Declaration which reads as follows: "(a) General Liabilitylnsurance. The Master Association shall obtain a comprehensive general liability and property damage insurance policy insuring the Master Association and the Owners against liability incident to ownership or use of the Master Association Property. The timits of such insurance shall not be less than $3 Million covering all claims for death, personal injury and property damage arising out of a single occurrence. The insurer issuing such insurance shall have rating by A.M. Best of "A, Class V" or better with no modified occurrences and as admitted by Best's Insurance Guide. Such insurance shall include the following additional provisions provided they are available on a commercially reasonable basis: (i) The City of Chula Vista shall be named as an additionally insured party to such insurance pursuant to the City's requirements the Master Association do so; (ii) The policy shall not-contain a cross-suit exclusion clause which would abrogate coverage should litigation ensue between insureds; (iii) The policy shall contain the following severability clause (or language which is substantially the same): "q'he coverage shall apply separately to each insured except with respect to the limits of liability'." The MHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obligations herein. (b) Release. When all conditions precedent in Paragraph 3(a) are fulfilled, NNP shall be released from its obligations under this Agreement, including its security and insurance requirements. NNP acknowledges that it has a contractual obligation to perform the terms and conditions of this Agreement until and unless released by the City from this Agreement. At least sixty (60) days prior to such transfer, NNP shall give a notice to the City of NNP's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 3(a). 4. Assiqnment by MHOA and Release of MHOA. (a) Assignment. Upon MHOA's transfer of the Maintenance obligations to a Transferee, it is intended by the parties that the Transferee shall perform the Maintenance obligations either itself or by contractors. Such transfer will release the MHOA from its obligations onty if all of the following occur: (i) Transferee Accepts Obligation. The Transferee has unconditionally accepted and assumed all of the MHOA's bbligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of the MHOA under this Agreement. if the Transferee is an SHOA, the assignment shall also have been approved by the appropriate governing body of the SHOA by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreaso[~ably withhold its consent to such assignment. (ii) SHOA's Declaration of Restrictions. If the Transferee is an SHOA, the City has reviewed and approved the SHOA's recorded Declaration of Restrictions to confirm that said document contains appropriate maintenance and insurance provisions. (iii) SHOA insurance. The Transferee procures and formally resolves to Maintain at its sole cost and expense, a policy of public liability insurance which meets the requirements set forth in Paragraph 3 (a) (iii) above. The SHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obligations herein. (b) Release. When all conditions precedent in Paragraph 4(a) are fulfilled, the MHOA shall be released from its obligations under this Agreement, including its security and insurance requirements. At least sixty (60) days prior to such transfer, MHOA shall give notice to the City of MHOA's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 4(a). 5. NNP's Insurance. Until such time as the MHOA has obtained the general liability insurance required by Section 5.1 (a) of the Master Declaration, NNP hereby agrees to procure and maintain a policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than One Million Dollars ($1,000,000) combined single limit, at its sole cost and expense. -5- 6. Indemnity. NNP hereby indemnifies the City as set forth in Section 6.3 of the Master Declaration, which reads as follows: "6.3 Indemnity. The Declarant and Master Association, respectively, shall indemnify and hold the City, its officers, agents and employees harmless from any liability, cost or expense, including reasonably incurred attorneys' fees, which result from the Declarant's or the Master Association's respective failure to comply with the requirements of the Section above entitled "Continuing Obligation To Maintain Certain Public Areas". Neither the Declarant nor the Master Association shall have any liability under this Section by reason of (i) the other party's failure to maintain or (ii) any Transferee's failure to maintain. It is specifically intended that the City shall have the right to enforce this Section. This Section may not be amended without the written consent of the City Planning Director or City Attorney." 7. indemnity If Transferee. The document whereby the MHOA transfers a Maintenance obligation to an SHOA or apartment owner shall be signed by both the MHOA and the Transferee and shall set forth an express assumption of Maintenance and other obligations hereunder and shall include the following indemnification provision: Indemnity. The [Transferee's name] shall indemnify and hold the City, its officers, agents and employees, harmless from any liability, cost or expense, including reasonably incurred attorneys' fees, which result from the Transferee's failure to comply with the requirements of the obligations transferred hereby to Transferee. Transferee shall not have any liability under this Indemnity by reason of another party's failure to maintain. It is specifically intended that the City shall have the right to enforce this Indemnity. This Indemnity may not be amended without the written consent of the City Planning Director or City Attorney. 8. _Aqreement Applicable to Subsequent Owners. (a) Agreement Binding Upon Any Successive Parties. This Agreement shall be binding upon NNP and any successive Declarant under the Master Declaration. This Agreement shall be binding upon MHOA and any Transferees upon transfer of maintenance obligations to the MHOA or Transferee, ;'espectively. This Agreement shall inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property. (b) Agreement Runs With the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns, and any successor-in-interest thereto. The City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit such covenants running with the land have been provided, without regard to whether the City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. 9. Governinq Law. This Agreement shall be governed and construed in accordance with the laws of the State of California. 10. Effective Date. The terms and conditions of this Agreement shall be effective as of the date this Agreement is recorded in the Official Records of the San Diego County Recorder's Office. 11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be original and all of which shall constitute one and the same document. 12. Recordinq. The parties shall cause this Agreement to be recorded in the Official Records of the San Diego County Recorder's Office within thirty (30) days after this Agreement has been approved by the City Council. 1 3. Miscellaneous Provisions. (a) Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered and received when personally delivered to the party to whom it is directed or, in lieu thereof, when three (3) business days have elapsed following deposit in the United States mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this Paragraph by giving written notice of such change to the other party. If To City: CITY OF CHULA VISTA Department of Public Works/Engineering Division 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Engineer If To NNP: NNP-TRIMARK SAN MIGUEL RANCH, LLC The San Miguel Ranch Company 613 West Valley Parkway, Suite 270 Escondido, CA 92025 Attn: Mr. Bill Pennington -7- (b) Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. (c) Entire Agreement. This Agreement, together with any other written document referred to herein, embody the entire agreement and understanding between the parties regarding the subject matter hereof, and any and all prior or contemporaneous oral or written representations, agreements, understandings and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. (d) Recitals; Exhibits. Any recitals set forth above and any attached exhibits are incorporated by reference into this Agreement. (e) Compliance With Laws. In the performance of its obligations under this Agreement, NNP, its agents and employees, shall comply with any and all applicable federal, state and local rules, regulations, ordinances, policies, permits and approvals. (f) Authority of Signatories. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions and/or other actions have been taken so as to enable said signatory to enter into this Agreement. (g) Modification. This Agreement may not be modified, terminated or rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Official Records of the San Diego County Recorder's Office. (h) Severability. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to person or circumstance, shall not be affected thereby and each term, covenant or condition shall be valid and be enforced to the fullest extent permitted by law. (i) Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Agreement. it shall be conclusively presumed that both parties participated equally in the preparation and/or draffing of this Agreement. -8- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first set forth above, CITY OF CHULA VISTA, a municipal corporation By: Mayor Attest: Susan Bigelow, City Clerk APPROVED AS TO FORM: By: City Attorney NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) On ~L.~ (~ ,200 / , before me, ~f~; ~'/:2'4}~r1~ Notary Public in and for said State, personally appeared ~.~D0~N~ K MONSEES D~q~ C. THOM~ ............ ~ ~ ~-'~ ...... ~":~ the person(s) personally known to me (o, p,~ved .......... he .................. z ..... ~co) to be whose name(s) ~/are subscribed to the within instrument and acknowledged to me that h~/they executed the same in ~r/their authorized capaci~(ies), and that by h~/their signature(s) on the instrument, the person(s), or the entiW upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and o~ioial seal. Signature ~ ~~ (Seal) STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) On ,200 , before me, , Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(iDs), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrumen.t. WITNESS my hand and official seal. Signature (Seal) EXHIBIT "A" Leqal Description Parcel A: MOUNT MIGUEL ROAD AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. __ FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON Parcel B: THE MAINTENANCE AND ACCESS EASEMENT WITHIN LOT N AS DEDICATED ON CHULA VISTA TRACT NO. 99-04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. FILED IN THE OFFICE OFTHE COUNTY RECORDER OF SAN DIEGO COUNTY ON Parcel C: LOT M (THE PUBLIC PARK) AS DEDICATED ON CHULA VISTA TRACT NO. 99~04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. __ FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON EXHIBIT "B" CHUIA VISTA TRACT NO. 99-04 MAINTENANCE AND ACCESS EASEMENT IN LOT "N" WA/NTENANCE AND ACCESS EASEMENT LOT "N" LHUNSAKER & ASSOCIATES P< \0249\/~NI~D~DP Lot N SHT O! .D~G[ 1857]dul-20-200~: EXHIBIT "B" (_PARCEL "¢') CHULA VISTA TRACT NO. 99-04 ~rALL MAINTENANCE AREA IN LOT "M" 2:1 /'~ ,'~ // EXHIBIT "C" Maintenance Responsibilities City of Chula Vista Area HOA Maintenance Maintenance Median and parkways (one Landscaping in parkways Maintenance of curb, gutter, side only) within Mount including irrigation, trimming sidewalks and pavement. Miguel Road. and pruning of trees, and maintenance and irrigation of turf areas. Maintenance And Access Clearance of debris, plant None Easement Within Lot N. materials, sedimentation and obstructions from easement area adjacent to detention basin; maintenance of blacktop and concrete pad within access easement area. The retaining wail within lot Maintenance, repair, and if None M. required, replacement of retaining wall. ATT, ACHMEN~' ~" OPTION AGREEMENT This Option Agreement (this "Agreement") is entered into as of ,2001 by and between NNP - Trimark San Miguel Ranch, LLC, a Delaware limited liability company ("Developer"), and the City of Chula Vista ("City"). Recitals: A. Developer owns approximately 743.1 gross acres of real property located within the City of Chula Vista (the "Project Site"); and B. Developer intends to subdivide the Project Site into varions residential, commercial and other lots, including two community purpose facility lots (collectively, the "Project"); and C. Pursuant to Condition 112D of the approval by City of Tentative Subdivision Map Chula Vista Tract 99-04 (Resolution No. 2000-068) ("TM"), Developer must grant to City an option to purchase certain real property consisting of community purpose facility lot CP-B, as more specifically described in attachment "A" hereto (the "Property"). Agreements: Now therefore, in consideration of the foregoing and the mutual covenants of the parties set forth in this Agreement, the parties agree as follows: 1. Grant of Option. City is hereby granted an option (the "Option") to purchase the Property for a purchase price to be determined pursuant to TM condition 112E at any time for so long as the property is a designated CPF site. 2. Exercise of Option. The Option shall be exercised by City giving Developer written notice (the "Option Notice"), and the sale shall be closed within ninety (90) days after the date of the Option Notice. Upon the closing of the sale, the purchase price shall be paid in full and Developer shall deliver to City fee simple title to the Property, which title shall be transferred by grant deed pursuant to escrow instructions and such other commemially reasonable terms upon which the parties may agree. Notwithstanding any other provision of this Agreement, Developer agrees that it will provide the Property free and clear of all liens and encumbrances other than (i) the deed restriction SD:DAPLa, GR\S FD51161588.5 072001 - 1 - described in TM Condition 112C; (ii) prorated non-delinquent real estate taxes, and (iii) title encumbrances which the City specifically approves. Developer further agrees that the Property is and will be, upon sale to City, free and clear of any environmental condition which would be a violation of any applicable federal, state or local law, ordinance or regulation relating to hazardous materials. 3. Excluded Sale. The foregoing provisions regarding the Option shall not apply in the event that (a) Developer sells the Property to a non-profit entity pursuant to TM Condition 1 i2F, (b) Developer provides City with written notice of its intent to sell the Property at least ten (10) days prior to the execution of a purchase agreement for such sale, accompanied by a genuine and complete copy of such purchase agreement and sufficient information to enable City to determine the purchaser's intended use, and (c) City fails, within such ten (10) day period, to give written notice to Developer that City disapproves of the sale, which notice shall set forth in reasonable detail the basis for City's disapproval. The approval of City shall not be unreasonably withheld. 4. City's Obligations Regarding an Excluded Sale. In the event that City fails to disapprove ora sale as set forth in Section 3, City shall execute and deliver a quitclaim deed in the form of Exhibit "B" attached hereto, and shall take such further action as Developer may reasonably request in order to remove the Memorandum of Option Agreement (as defined below in Section 6) from the Official Records for the County of San Diego, California. All such actions taken with respect to this Section 4 shall be at Developer's sole cost and expense. 5. Memorandum of Option. Upon execution of this Agreement, the parties shall execute and acknowledge a Memorandum of Option Agreement in the form attached hereto as Exhibit "C", (the "Memorandum of Option Agreement") which shall be recorded in the Official Records for the County of San Diego, California. 6. Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. SD:DAP~AGR~SFDLq 1161588.5 072001 -2- 7. Counting of Days. Whenever a time period set forth in this Agreement would otherwise expire on a Saturday, Sunday, or banking or federally recognized holiday, such time period shall be deemed extended to the next following day which is not one of the foregoing. 8. Attorneys' Fees. Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 9. Waiver. Failure of either party at any time to require performance of any provision of this Agreement shall not limit such party's right to enforce such provision, nor shall any waiver of any breach of any provision of this Agreement constitute a waiver of any succeeding breach of such provision or a waiver of such provision itself. 10. Notices. Notices under this Agreement shall be in writing and shall be effective two days after being deposited in the United States Mails, certified, return receipt requested, directed to the other party at the address set forth below, or to such other address as the party may indicate by written notice to the other party: sD:DAP~AGR\SFDX51161588.5 072001 -3- If to Developer: NNP - Trimark San Miguel Ranch, LLC 85 Argonaut, Suite 205 Aliso Viejo, CA 92656 Attention: Mr. Stephen E. Hester Telephone: (949) 465-1655 Telecopy: (949) 465-1660 and NNP - Trimark San Miguel Ranch, LLC 31248 Oal~. Crest Drive, Suite 150 Westlake Village, CA 91361 Attention: Mr. Clinton R. Stevenson, Jr. Telephone: (818) 706-9797 Telecopy: (818) 706-9777 alia · · NNP - Trimark San Miguel Ranch, LLC c/o Newland National Partners, LP 9404 Genesee Avenue, Suite 230 La Jolla, CA 92037 Attention: Mr. Derek C. Thomas Telephone: (858) 455-7503 Fax: (858) 455-5368 (with copies to:) NNP - Trimark San Miguel Ranch, LLC c/o Newland National Partners, LP 9404 Genesee Avenue, Suite 230 La Jolla, CA 92037 Attention: Martha K. Guy, Esquire Telephone: (858) 455-7503 Fax: (858) 455-6142 072001 -4- and Sheppard, Mullin, Richter & Hampton LLe 50I West Broadway, Suite 1900 San Diego, CA 92101 Attention: Mr. Domenic C. Drago Telephone: (619) 338-6607 Fax: (619) 234-3815 If to City: David D. Rowlands, Jr. City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 11. Amendment. This Agreement may not be modified or amended except by the written agreement of the parties. No modification or amendment or attempted waiver of any provision of this Agreement shall be binding unless in writing and signed by the party to be bound. This Agreement may not be modified or amended orally. 12. Severabilitv. If any term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term or provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 13. Inteeration. This Agreement contains the entire agreement and understanding of the parties with respect to the option granted hereunder and supersedes all prior and contemporaneous agreements between them with respect to such option. 14. Governine Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. SD:DAPLAGR~SFD'~51161588.5 072001 -5- ! 5. Assi.~omnent. City may not assign this Agreement, in whole or in part, without Developer's consent, which consent may be withheld by Developer in its absolute discretion. 16. Counterparts. This Agreement may be signed in counterparts, each of which will be deemed an original and all of which, when taken together, shall constitute one and the same document. 17. No Third Party Beneficiaries. This Agreement does not confe~ any rights or remedies upon any person other than the parties and their respective successors and permitted assigns. 18. Time of Essence. Time is of the essence of the parties' obligations under this Agreement. 19. Conflicts. Should there be a conflict between this Agreement and the TM for the Property, the provisions of the TM shall control. [SIGNATURE PAGE FOLLOWS] SD:DAP~.GRXSFD 51161588.5 072001 -6- IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above. Developer: NNP - TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company By: ~.~.~ ~----'-7. [Print~ Name and Title] By: ~ ,e,~/~ 2 ~ [ermteT~e an~f¥~e] City: CITY OF CHULA VISTA By: Shirley Horton, Mayor Attest: City Clerk Approved as to form by: City Attorney SD:DAPLAGRkSFD\51161588.5 072001 co=tyof O e- f) On, ~ /T l!['l beforeme,X, ll,/~B~lt' [~' , Notary Public, personally appeared '..(.J~ j,k~ ~ :~ ~c~'f-~ ~ , ~personally known to me or Cl proved to me on the basis of satisfactory evidence to be the person~whose name~is/ar-~ subscribed to the within instrument and acknowledged to me that he/r~.&hey executed the same in his/h-offt=h-ek author/zed capacity. Oes~, and that by his/her/l~ signature(,s.)"on the instrument the person~, or the entity upon behalf of which the personJf) acted, execdted the instrument. WITNESS my hand and official seal. State of ~'~-XI'~O~AJ{ ~ ) County of <~'Pc/U ~{~---{~0_ ) ) ,,J~ personally known to me or Ul proved to me on the basis of satisfactory evidence to be the personO-) whose name~) is/a~re subscribed to the within instrument and acknowledged to me that ~h~/she/tgnoy executed the same in N-s/her/their authorized capacity(ips), and that by lq~s/her/thm~ signature(}') on the instrument the person(g), or the entity upon behalf of which the person~) acted, executed the instrument. WITNESS my hand and official seal. ~ LIZ GROM/~q o ~_~ir~ NOTARY PUBUC-CA/.JFORNIA ~,.~./' S~N OmO0 coum-v . , Notary Public EXHIBIT A LEGAL DISCRIPTION Lot 13 of final map for San Miguel Ranch, Phase 1, 2 and 4 "A" Map No. 1 City of Chula Vista Tract No. 99-04 per map thereof number EXHIBIT B FORM OF QUITCLAIM DEED [ATTACHED] SD:DAP~AGR~SFD't51161588.5 072001 ~9- RECORDING REQUESTED BY AND WHEN RECORDED MAIL THIS DEED AND, UNLESS OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO Cay & Zip SPACE ABOVE THIS LINE FOR RECORDER'S USE Quitclaim Deed THE UNDERSIGNED GRANTOR(s) DECLARE(s) DOCUMENTARY TRANSFER TAX IS $ [] _ unincorporated area [] City of Parcel No. [] computed on full value of property conveyed, or [] computed on full value less value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, hereby REMISE, RELEASE AND FOREVER QUITCLAIM to the following described real property in the count), of , state of California: Dated STATE OF CALIFORNIA COUNTY OF j' On before me, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that be/she/they executed the same in his/her/their authorized capacity0es), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal · Sig.a,ure /5-37 EXHIBIT C MEMORANDUM OF OPTION AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: NNP - Trimark San Miguel Ranch, LLC 85 Argonaut, Suite 205 Aliso Viejo, CA 92656 Attention: Mr. Stephen E. Hester THIS SPACE ABOVE FOR RECORDER'S USE MEMORANDUM OF OPTION TO PURCHASE PROPERTY This Memorandum of Option to Purchase Property (this "Memorandum") is entered into as of ,2001 by and between the City of Chula Vista ("Optionor"), and NNP - TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ("Optionee"), regarding that certain real property described in Exhibit "A" attached hereto (the "Property"). Optionor and Optionee are parties to that certain Option Agreement dated as of _, 2001 (the "Agreement") pursuant to which Optionor has granted to Optionee the exclusive right and sole option (the "Option") to purchase the Property on the terms and conditions set forth in the Agreement. The Option shall be exercisable for so long as the Property is a designated community purposes facility. This Memorandum is being recorded to give notice to the public that the Property is subject to the provisions of the Agreement and of the need to inquire into all of the terms and conditions of the Agreement, which terms and conditions are hereby incorporated by reference into this Memorandum. This Memorandum is intended to summarize some of the provisions of the Agreement, but in no way changes, modifies or otherwise affects any provision of the Agreement. In the event of any conflict between this Memorandum and the Agreement, the provisions of the Option Agreement shall prevail. [SIGNATURE PAGE FOLLOWS] SD:DAPXAGR\SFD'~51161588.5 072001 - 10- IN WITNESS WHEREOF, Optioner and Optionee have executed this Memorandum as of the date first above written. CITY OF CHULA VISTA By: City Manager Attest: City Clerk Approved as to form by City Attorney NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company By: [Printed Name and Title] By:__ [Printed Name and Title] San Miguel Ranch Community Purpose Facility / Community Park Site ATTACHMENT G RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAP OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH, PHASE 1, 2 AND 4 ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA MAINTENANCE AND ACCESS EASEMENTS, ASSIGNABLE GENERAL UTILITY AND ACCESS EASEMENTS, DRAINAGE AND ACCESS EASEMENTS, PUBLIC TRAIL AND LANDSCAPE BUFFER EASEMENTS, TREE PLANTING AND MAINTENANCE EASEMENTS, SIGHT VISIBILITY EASEMENTS, SEWER EASEMENTS, AND PEDESTRIAN ACCESS EASEMENTS; ACCEPTING ON BEHALF OF THE PUBLIC FOR PUBLIC USE: CALLE LA QUINTA, PASEO VERACRUZ, MOUNT MIGUEL ROAD AND PROCTOR VALLEY ROAD, GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS; ACKNOWLEDGING ON BEHALF OF THE PUBLIC THE IRREVOCABLE OFFERS OF DEDICATION FOR LOT "P" FOR OPEN SPACE, TRANSPORTATION AND OTHER PUBLIC PURPOSES; FOR LOTS "M" AND "GG" FOR PUBLIC PARK PURPOSES; FOR LOTS "A" AND "O" FOR OPEN SPACE AND OTHER PUBLIC PURPOSES; ALL AS SHOWN ON THIS MAP WITHIN THIS SUBDIVISION; APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISIONS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS; AND APPROVING A REDUCTION IN AREA FOR CPF LOT 13 FROM 2.7 ACRES TO 1.0 ACRES WHEREAS, the San Miguel Ranch Sectional Planning Area was approved on 10/19/99 and required 5.8 net useable acres of Community Purpose Facilities (CPF) Lands in compliance with Municipal Code Section 19.48.025 (CPF Ordinance); and WHEREAS, the Tentative Subdivision Map for San Miguel Ranch Chula Vista Tract 99-04 was approved by Council on 2/29/00 pursuant to Resolution 2000-068, which included CPF Lot "M" at 3.1 net acres in size and lot "CP-B" at 2.7 net acres in size; and WHEREAS, in the review of grading plans for the project, the Community Park Site was required to ~naintain the 16.2 minimum net useable acres for the park site as shown on the approved tentative map; and WHEREAS, in the preparation of the grading plans for the project, due to site constraints, it became necessary to seek additional net useable acreage to maintain the 16.2 minimum net useable acres for the park site; and WHEREAS, the Tentative Subdivision Map approval required the CPF lot CP-B to be a use compatible to and integrated with the Community Park use; and WHEREAS, the adjoining Community Park area is intended to provide parking whereby the 1 two uses could share parking; and WHEREAS, Municipal Code Section 19.48.025 (B) (CPF Ordinance) allows for the reduction of the CPF useable acreage requirement if the City Council can determine that a lesser amount of land is needed, based on the availability of shared parking with other facilities or other CPF facilities that are guaranteed to be made available to the community"; and WHEREAS, Municipal Code Section 19.48.025 (C) (CPF Ordinance) requires a Conditional Use Permit for all CPF uses including shared parking; and WHEREAS, pursuant to Paragraph 43(e) of the San Miguel Ranch Final Map Supplemental Subdivision Improvement Agreement for Phases I, 2, and 4, executed by the Developer,_it is acknowledged and agreed that CPF user parking will be shared with Community Park users within the Community Park in an amount to be determined by the Conditional Use Permit for the CPF site, and by the Director of Parks and Recreation; and WHEREAS, a Final Subsequent Environmental Impact Report (FSEIR 97-02) for the San Miguel Ranch Sectional Plarming Area Plan and Tentative Maps (FSEIR 97-02) was certified by the City Council on October 19, 1999; and WHEREAS, an Addendum to FSEIR 97-02 was prepared that addresses a 15-foot access road in the OS-1 parcel and installation of a 1 O-foot wide pedestrian/equestrian trail within a 15-foot easement in the OS-3 pamel; and WHEREAS, pursuant to Section 15164 of the State CEQA Guidelines, revisions to the final map will result in only minor techlfical additions to make the previously certified FSEIR 97-02 adequate under CEQA. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista hereby finds and determines: 1. That a lesser amount of land is needed for Community Purpose Facilities (CPF) uses on CPF lot CP-B based on the availability of shared parking with the adjoining Community Park site; and 2. That shared parking bet~veen the San Miguel Ranch Community Park and secondary CPF lot CP-B (Lot 13 of the Final Map) upon approval of a Conditional Use Permit is guaranteed to be available to serve the public; and 3. That the CPF requirement for San Miguel Ranch be reduced from 5.8 to 4. I net useable acres by the reduction of acreage in the secondary CPF Lot CP-B (Lot 13 of the Final Map) from 2.7 acres to 1.0 acres on the Final Map. BE IT FURTHER RESOLVED that the City Council finds that the Addendum to FE1R 97-02 reflects the independent judgment of the City of Chula Vista City Council. 2 BE 1T FURTHER RESOLVED that the City Council has considered the Addendum to FEIR 97-02 prior to making a decision on the project (CEQA 15164) and hereby adopts the Addendum to FEIR 97- 02. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled Chula Vista Tract 99-04 SAN MIGUEL RANCH PHASES 1, 2 AND 4 and more particularly described as follows: Portions of Sections 21, 22, 27 and 28 Township 17 South, Range 1 West, San Bemardino Meridian, According to Official Plat Thereof, All in the City of Chula Vista, County of San Diego, State of California. Area: 474.863 Acres No.ofLots: 80 Numbered Lots: 47 Lettered Lots: 33 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED said Council hereby accepts on behalf of the City of Chula Vista Maintenance and Access Easements, Assignable General Utility and Access Easements, Drainage and Access Easements, Public Trail and Landscape Buffer Easements, Tree Planting and Maintenance Easements, Sight Visibility Easements, Sewer Easements, and Pedestrian Access Easements; accepting on behalf of the public for public use: Calle La Quinta, Paseo Veracruz, Mount Miguel Road and Proctor Valley Road, granted on said maps within said subdivisions; acknowledging the Irrevocable Offers of Dedication for Lot "P" for open space, transportation and other public purposes; for Lots "M" and "GG" for public park purposes; for Lots "A" and "O" for open space and other public purposes all as shown on this map within this subdivision, subject to the conditions set forth thereon; noting that use of said Easements by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula Vista. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista be and she is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that those certain easements with the right of ingress and egress for general utility, and general access, as granted thereon and shown on said map within said subdivision, are accepted on behalf of the City of Chula Vista as hereinabove stated. BE IT FURTHER RESOLVED that City Clerk be and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. BE IT FURTHER RESOLVED that that certain Subdivision Improvement Agreement dated the for the completion of improvements in said subdivision, a copy of which is on file in the office of the City Clerk is hereby approved. Presented by Approved as to form by .John P. Lippitt Joh?~'I~t.~l~aheny Director of Public Works City Attorney 3 Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, Ca. 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Declarant SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 2001, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City", and NNP-TRIMARK SAN MIGUEL RANCH, LLC, 613 West Valley Parkway, Suite 270, Escondido, CA 92025, hereinafter called "Subdivider" with reference to the facts set forth below, which Recitals constitute a part of this Agreement; RECITALS: WHEREAS, Trimark Pacific-San Miguel LLC, a California limited liability company, conveyed title of the Project area to NNP- Trimark San Miguel Ranch, LLC a Delaware limited liability company on July 14, 2000. WHEREAS, Subdivider is about to present to the City Council of the City of Chula Vista for approval and recordation, a final subdivision map of a proposed subdivision, to be known as San Miguel Ranch, Phases 1, 2 and 4, pursuant to the provisions of the Subdivision Map Act of the State of California, and in compliance with the provisions of Title 18 of the Chula Vista Municipal Code relating to the filing, approval and recordation of subdivision map; and WHEREAS, the Code provides that before said map is finally approved by the Council of the City of Chula Vista, Subdivider must have either installed and completed all of the public improvements and/or land development work required by the Code to be installed in subdivisions before final maps of subdivisions are approved by the Council for purpose of recording in the office of the County Recorder of San Diego County, or, as an alternative thereto, Subdivider shall enter into an agreement with city, secured by an approved improvement security to insure the performance of said work pursuant to the requirements of Title 18 of the Chula Vista Municipal Code, agreeing to install and complete, free of liens at Subdivider's own expense, all of the public improvements and/or land development work required in said subdivision within a definite period of time prescribed by said Council; and WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into this agreement wherein it is provided that Subdivider will install and complete, at Subdivider's own expense, all the public improvement work required by City in connection with the proposed subdivision and will deliver to City improvement securities as approved by the City Attorney; and WHEREAS, a tentative map of said subdivision has heretofore been approved, subject to certain requirements and conditions, as contained in Resolution No. 2000-068, approved on the 29th day of February, 2000 ("Tentative Map Resolution") ~ and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improvement work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 00041-01 through 00041-37, on file in the office of the City Engineer; and WHEREAS, an estimate of the cost of constructing said public improvements according to said plans and specifications has been submitted and approved by the City in the amount of FOUR MILLION NINE HUI~DRED SIXTEEN THOUSAND DOLLARS AND NO CENTS ($4,916,000.00). NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: 1. Subdivider, for itself and his successors in interest, an obligation the burden of which encumbers and runs with the land, agrees to comply with all of the terms, conditions and requirements of the Tentative Map Resolution; to do and perform or cause to be done and performed, at its own expense, without cost to City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of the City Engineer, all of the public improvement and/or land development work required to be done in and adjoining said subdivision, including the improvements described in the above Recitals ("Improvement Work"); and will furnish the necessary materials therefor, all in strict conformity and in accordance with the plans and specifications, which documents have heretofore been filed in the office of the City Engineer and as described in the above Recitals this reference are incorporated herein and made a part hereof. 2. It is expressly understood and agreed that all monuments have been or will be installed within thirty (30) days after the completion and acceptance of the Improvement Work, and that Subdivider has installed or will install temporary street name signs if permanent street name signs have not been installed. 3. It is expressly understood and agreed that Subdivider will cause all necessary materials to be furnished and all Improvement Work required under the provisions of this contract to be done on or before the second anniversary date of Council approval of the Subdivision Improvement Agreement. 4. It is understood and agreed that Subdivider will perform said Improvement Work as set forth hereinabove, or that portion of said Improvement Work serving any buildings or structures ready for occupancy in said subdivision, prior to the issuance of any certificate of clearance for utility connections for said buildings or structures in said subdivision, and such certificate shall not be issued until the City Engineer has certified in writing the completion of said public improvements or the portion thereof serving said building or structures approved by the City; provided, however, that the improvement security shall not be required to cover the provisions of this paragraph. 5. It is expressly understood and agreed to by Subdivider that, in the performance of said Improvement Work, Subdivider will conform to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. 6. Subdivider further agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of TWO MILLION FOUR HUNDRED FIFTY-EIGHT THOUSAND DOLLARS AND NO CENTS ($2,458,000.00) which security shall guarantee the faithful performance of this contract by Subdivider and is attached hereto, marked Exhibit "A" and made a part hereof. 7. Subdivider further agrees to furnish and deliver to the City of Chula Vista simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of TWO MILLION FOUR HUNDRED FIFTY-EIGHT THOUSAND DOLLARS AND NO CENTS ($2,458,000.00) to secure the payment of material and labor in connection with the installation of said public improvements, which security is attached hereto, marked Exhibit "B" and made a part hereof and the bond amounts as contained in Exhibit "B", and made a part hereof. 8. Subdivider further agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of SEVENTY-EIGHT THOUSAND DOLLARS AND NO CENTS ($78,000.00) to secure the installation of monuments, which security is attached hereto, marked Exhibit "C" and made a part hereof. 9. It is further agreed that if the Improvement Work is not completed within the time agreed herein, the sums provided by said improvement securities may be used by City for the completion of the Improvement Work within said subdivision in accordance with such specifications herein contained or referred, or at the option of the City, as are approved by the City Council at the time of engaging the work to be performed. Upon certification of completion by the City Engineer and acceptance of said work by City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required' for payment thereof, may be released to Subdivider or its successors in interest, pursuant to the terms of the improvement security. Subdivider agrees to pay to the City any difference between the total costs incurred to perform the work, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds from the improvement security. 10. It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall any officer, his sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor, except to the limits established by ~he approved improvement security in accordance with the requirements of the State Subdivision Map Act and the provisions of Title 18 of the Chula Vista Municipal Code. 11. It is further understood and agreed by Subdivider that any engineering costs (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Improvement Work plans and installation of Improvement Work hereinabove provided for, and the cost of street signs and street trees as required by City and approved by the City Engineer shall be paid by Subdivider, and that Subdivider shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. 12. It is understood and agreed that until such time as all Improvement Work is fully completed and accepted by City, Subdivider will be responsible for the care, maintenance of, and any damage to, the streets, alleys, easements, water and sewer lines within the proposed subdivision. It is further understood and agreed that Subdivider shall guarantee all public improvements for a period of one year from date of final acceptance and correct any and all defects or deficiencies arising during said period as a result of the acts or omission of Subdivider, its agents or employees in the performance of this agreement, and that upon acceptance of the work by City, Subdivider shall grant to City, by appropriate conveyance, the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. 13. It is understood and agreed that City, as indemnitee, or any officer or employee thereof, shall not be liable for any injury to person or property occasioned by reason of the acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement. Subdivider further agrees to protect and hold the City, its officers and employees, harmless from any and all claims, demands, causes of action, liability or loss of any sort, because of or arising out of acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement; provided, however, that the approved improvement security shall not be required to cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of the construction of said subdivision and the public improvements as provided herein. It shall also extend to damages resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the result of the construction and maintenance of drainage systems. The approval of plans providing for any or all of these conditions shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for the construction of the subdivision pursuant to said approved improvement plans. The provisions of this paragraph shall become effective upon the execution of this agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the improvements. 14. Subdivider agrees to defend, indemnify, and hold harmless the City or its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory agency, appeal board, or legislative body concerning a subdivision, which action is brought within the time period provided for in Section 66499.37 of the Government Code of the State of California. 15. Assignability. Upon request of the Subdivider, any or all on-site duties and obligations set forth herein may be assigned to Subdivider's successor in interest if the City Manager in his/her sole discretion determines that such an assignment will not adversely affect the City's interest. The city Manager in his/her sole discretion may, if such assignment is requested, permit a substitution of securities by the successor in interest in place and stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this Agreement. Such assignment will be in a form approved by the City Attorney. -6- SIGNATURE PAGE TO SUBDIVISION IMPROVEMENT AGREEMENT SAN MIGUEL RANCH, PHASES 1, 2 D2~D 4 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA NNP-TRIMARK SAN MIGUEL R3kNCH, LLC a Delaware limited liability company Mayor of the city of Chula v vista .Its: Lj;~_~ ~*~-~- ATTEST City Clerk By: ~///~.~. ~//~~//~c~ /q( /L Approved as to form by ~/ ' L ' ~DONNA K. MONSEES : . VICE PRESIDENT AND I b s: CHIP FINANCIAL OFRCER city Attorney (Attach Notary Acknowledgment) -7- CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Californ~/~ County of ~" V/¢'~ ~'- ~Z-~ ss. On ~L~LI I0/~,,., before me, k'-~--i~.Ft~- ~"L .~/'~ personally appeared"'"'J~F ~.-~.1/~ ~ ~_~<~r~p--~ Name(s) of Signer(sI E~!~personally known to me ~ proved to me on the basis of satisfactory evidence to be the person(.~ whose name..~ is/are- ~1~ OrongeCoun~y [ subscribed' to the/' within instrument and ~ acknowledged to me that he/she/thgy, executed the same in his/~.e.~dt h c!r authorized capacity~, and that by his/h~.r/t,,%Nr' signature(s~n the instrument the person~, or the entity upon behalf of which the person(-s% acted, executed the instrument. WITNESS my hand and official seal. OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reailachment of this form to anolher document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: [7 Individual Top o( ihumb here [] Corporate Officer-- Title(s): ~ Padner -- ~_21 Limited [~ General I~ Attorney in Fact [] Trustee [] Guardian or Consen/ator E~ Other: Signer Is Representing: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of .~ ~).~ ss. On ~~., ~r~/ ,before me, P~"- personally appeared Name(s) of Signer(s) [,~personally known to me F_3 proved to me on the basis of satisfactow evidence to be the person(~,) whose name(i~) isbn/re subscribed to the within instrument and acknowledged to me that he/she/thcy executed the same in hie/her/t.i~-eir authorized capacity(i~), and that by h4sCher/thr~r signature~) on the instrument the person(~), or LIZ GROI~ ~ the behalf of which the entity upon person(¢ /"~,,..,,¢,~,.~ COMM.# 12~8/61 .~ acted, executed the instrument. 0 ~.~J~ NOTARY PUBLIC..~AJ, JFORNIA ~ I~I~ ~c"°mmr=~¢'~'~'~ I WlrNES~seal. Thougb the ~nformation below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached D .~. ?en~! . . Title or Type of Document: Document Date: "1'-(2~O Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer [aDONh~ K ' · Sgner'sName' ~~,I~-~,~, ' ' '. :' ' ..... ! ~ Individual ~ ~"1~11~, (~I~FI~II~ ' 'Top of thumb here E] Corporate Officer -- Title(s): I ] Partner ]ii~) Limited [ ] General I Attorney in Fact [ 3 Trustee [ ] Guardian or Conservator II Other: Signer Is Representing: ~J~g-%~_ ~ ~ ~ C~._ /5,4-/z LIST OF EXHIBITS Exhibit "A" Improvement Security - Faithful Performance Form: Bond Amount: $2,458,000 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $2,458,000 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $78,000 Securities approved as to form and amount by City Attorney Improvement Completion Date: Two (2) years from date of City Council approval of the Subdivision Improvement Agreement J:~Attorney\SIA\SMR Phase 1,2&4 -8- RESOLUTION NO.2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PHASE 1, 2 AND 4, CHULA VISTA TRACT NO. 99-04, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer has executed a Supplemental Subdivision Improvement Agreement to satisfy remaining conditions of Resolution 2000-068. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula Vista does hereby approve the Supplemental Subdivision Improvement Agreement for San Miguel Ranch Phase 1, 2 and 4, Chula Vista Tract No. 99-04, 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 to execute said Agreement on behalf of the city of Chula Vista. Presented by Approved as to form by John P. Lippitt J0hr~.U Kaheny Director of Public Works City Attorney [J:~TTORNEY/RESO\ssia SMR Phases 1 2 & 4 (July 31,2001 (10:42AM)] RECORDING REQUEST BY: City Clerk WHEN RECORDED MAlL TO: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which ne cash consideration has been paid or received. Developer Above Space for Recorder~s Use SAN MIGUEL RANCH PHASE i, ii AND IV FINAL MAP SUPPLEMENTAL SUBDIVISION iMPROVEMENT AGREEMENT {Conditions 1, 2, 3, 4, 5, 6, 10, 12, 13, 14, 15, 17, 18, 26, 27, 28, 30, 31, 32, 40, 44, 45, 50, 49, 64, 67, 73, 74, 89, 90, 92, 94, 96, 98, 99, 102, 107, 110, 112 A, B, C, and E, 113, 114, 115, 118, 119, 120, 121, 122, 123, 124, 125, 126, 128, 129, !30, 132, 135, 136, 137 - 154 inclusive, 156, 162, 167, 168, 169, 171, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 191, 192, and 193) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this day ef , 2001, by and between THE CITY OF CHULA VISTA, California {"City" or "Grantee" for recording purposes only) and NNP-TR!MARK SAN HIGUEL RANCH, LLC, a Delaware Limited Liability Company, ("Developer" or "Granter"), with reference to the facts set forth below, which recitals constitute a part ef this Agreement: P. ECIT~LS A. This Agreement concerns and affects certain real property located in Chula Vista, California, more particularly described on Attachment "A" attached hereto and incorporated herein ("Property"). The Property is within approved Tentative Subdivision Map Chula Vista Tract 99-04 (Resolution No. 2000-068 on February 29, 2000 the "Resolutidn"), which project is commonly known as San Miguel Ranch. For purposes of this Agreement the term "Project" shall also mean "Property". B. Trimark Pacific-San Miguel LLC, a California limited liability company, conveyed title of the Project area to NNP- Trimark San Miguel Ranch, LLC a Delaware limited liability company on July 14, 2000. C. Developer and/or Developer's predecessor in interest has applied for and the City has approved Tentative Subdivision Map commonly referred to as Chula Vista Tract 99-04 ("Tentative Subdivision Hap") for the subdivision ef the Property. D. The City has adopted 'Resolution No. 2000-068 ("Resolution") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the.Resolution. E. City is willing, on the premises, security, terms and conditions herein contained to approve the final map for which Developer has applied as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. Developer understands that subsequent final maps may be subject to the same security terms and conditions contained herein. F. The following defined terms shall have the meaning set forth herein, unless otherwise specifically indicated: a. "Commencing Construction" means when a construction permit or other such approval has been obtained from the City or a construction contract has been awarded for the improvement, whichever occurs first. b~ "Complete Construction" means when construction on said improvement has been completed and the City accepts the improvement. c. "Owner or Developer" means the person, persons or entity having a legal or an equitable interest in the property or parts thereof and includes Owner's successors-in-interest and assignors of any property within the boundaries of the map. This includes NNP Trimark San Miguel Ranch, LLC and any and all owners of real property within the boundaries of the Property, and all signahories to this Agreement. d. "Guest Builder" means those entities obtaining any interest in the Property or a portion of the Property, after the final map has been recorded. e. "PFFP" means the SPA Public Facilities Financing Plan 2 adopted by Resolution No. 19631 on October 19, 1999 and as may be amended from time to time. f. "Parks Master Plan" means the City-wide Parks Master Plan, subject to future City Council approval. g. "Backbone Improvement Plans" mea~s all the onsite and offsite improvements required to serve the lots created by the final map, in accordance with improvement plans to be approved by the City. Said improvements shall include, but not limited to, asphalt concrete pavement, base, concrete curb, gutter and sidewalk, sewer, reclaimed and potable water utilities, drainage facilities, street lights, signage, landscaping, irrigation, fencing and fire hydrants. h. "SPA Plan" means the San Miguel Ranch Sectional Planning Area Plan as adopted by the City Council on October 19, 1999 pursuant to Resolution No. 19631. NOW, THEREFORE, in e×change for the mutual covenants, terms and conditions herein contained~ the parties agree as set forth below. 2. Agreement Applicable to Subsequent Owners. a. Agreement Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property as described on Attachment "A" until released by the mutual consent of the parties. For the purposes of this Agreement the "Developer" shall also mean "Applicant" b~ Agreement Runs with the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest ef the community and other parties public or private, in whose favor and for whose benefit of such covenants running with the land have been provided without regard to whether City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this agreement and the covenants may be entitled. c. Developer Release on Guest Builder Assigr~nents. If Developer assigns any portion of the Project to a Guest Builder, Developer may request to be released from Developer's obligations under this Agreement, that are expressly assumed by the Guest 3 Builder, provided Developer obtains the prior written consent of the City to such release. Such assignment to the Guest Builder shall, however, be subject to this Agreement and the Burden of this Agreement shall remain a covenant running with the land. The City shall not withhold its consent to any such request for a release so long as the assignee acknowledges that the Burden of the Agreement runs with the land, assumes the obligations of the Developer under this Agreement, and demonstrates, to the satisfaction of the City, its ability to perform its obligations under this Agreement as it relates to the portion of the Project which is being acquired by the Assignee. d. Partial Release of Developer's Assignees. If Developer assigns any portion of the Project subject to the Burden of this Agreement, upon request by the Developer or its assignee, the City shall release the assignee of the Burden of this Agreement as to such assigned portion if such portion has complied with the requirements of this Agreement to the satisfaction of the City and such partia] release will not, in the opinion of the City, jeopardize the likelihood that the remainder of the Burden will not be completed. e. Release of Individual Lots. Upon the occurrence of any of the following events, Developer shall, upon receipt of the prior written consent of the City Manager (or Manager's designee), have the right to release any lot(s) from Developer's obligation under this Agreement: i. The execution of a purchase agreement for the sale of a residential lot to a buyer of an individual housing unit; ii. The conveyance of a lot to a Homeowner's Association; iii. The conveyance of a school site as identified in the SPA Plan to a school district; The City shall not withhold its consent to such release so long as the City finds in good faith that such release will not jeopardize the City's assurance that the obligations set forth in this Agreement will be performed. At the request of the Developer, the City Manager (or Manager's designee) shall execute an instrument drafted by Developer in a recordable form acceptable to the City Manager (or Manager's designee), which confirms the release of such lot or parcel from the encumbrance of this Agreement. Notwithstanding the foregoing, at the close of an individual homeowner's escrow on any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically released from the encumbrance hereof. 4 3. Condition No. 1 - (General Preliminary). in partial satisfaction of Condition 1 of the Resolution, Developer hereby agrees, to comply with all requirements and guidelines of the San Miguel Ranch SPA Plan, Planned Community (PC) District Regulations, Design Guidelines, Public Facilities Financing Plan, Affordable Housing Plan, Air Quality Improvement Plan and Water Conservation Plan, as may be amended from time to time, unless specifically modified by the appropriate department head, with the approval of the City Manager. These plans may be subject to minor modifications by the appropriate department head, with the approval of the City Manager, however, any material modifications shall be subject to approval by the City Council. 4. Condition No. 2 - (General Preliminary). In satisfaction of Condition No. 2 of the Resolution the Developer hereby agrees that the project conditions of approval are based upon the project having multiple final maps. Unless otherwise specified, all conditions and code requirements listed herein shall be fully completed to the City's satisfaction prior to approval of the first final map. 5. Condition No. 3 - (General Preliminary). In satisfaction of Condition No. 3 of the Resolution, the Developer hereby agrees that, in the event of a filing of a final map which requires over-sizing of the improvements necessary to serve other properties, said final map shall be required to install all necessary improvements to serve the project plus the necessary over-sizing of facilities required to serve such other properties (in accordance with the restrictions of State law and City ordinances). 6. Condition No. 4 (General Preliminary). In partial satisfaction of Condition No. 4 of the Resolution, prior to approval of a final Map creating a multiple family lot, which does not require the filing of a subsequent map, all applicable conditions of approval of the tentative map shall be met, as determined by the City Engineer. 7. Condition No. 5 - (General Preliminary) . In partial satisfaction of Condition No. 5 of the Resolution, Developer hereby agrees to comply with this condition that, pursuant to the Project's approved PFFP, limits construction within the areas east of SR-125 (Phase areas I, II and/or IV). 8. Condition No. 6 - (General Preliminary). In partial satisfaction of Condition No. 6 of the Resolution, Developer hereby agrees to dedicate for public use all the public streets shown on the tentative map within the subdivision boundary with the recordation of the applicable final map. Prior to the approval of the applicable final map, the Developer shall enter into an agreement to guarantee the construction of all street improvements as required by the PFFP for each particular phase. 5 9. Condition No. 10 (General Preliminary) In satisfaction of Condition No. 10 of the Resolution, the Developer agrees that if any of the terms, covenants or conditions contained herein shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted including issuance of building permits, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The Developer shall be notified 10 days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable and diligent time frame 10. Condition No. 12 - (General Preliminary) In satisfaction of Condition No. 12 of the Resolution, the Developer agrees that the Developer shall indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project and any or all entitlements and approvals issued by the City in connection with the Project. 11. Condition No. 13 - (General Preliminary) In satisfaction of Condition No. 13 of the Resolution, the Developer agrees to comply with all applicable SPA conditions of approval. 12. Condition No. 14 - (General Preliminary) In satisfaction of Condition No. 14 of the Resolution, the Developer agrees that any and all agreements that the Developer is required to enter in hereunder shall be in the form approved by the City Attorney. 13. Condition No. 15 - (Environmental/Preservation) In satisfaction of Condition No. 15 of the Resolution, the Developer agrees that prior to the approval of each final Map, Developer shall implement, to the satisfaction of the Director of Planning and Building, all applicable mitigation measures identified in FSEIR 97-02, the CEQA Findings of Fact and the Mitigation Monitoring and Reporting Program for the San Miguel Ranch Project in accordance with the requirements, provisions and schedules contained therein, and as further specified' in these Tentative Map conditions. Modification of the sequence of mitigation shall be at the discretion of the Director of Planning and Building should changes in circumstances warrant such a revision 14. Condition No. 17 - (Environmental/Preservation) In satisfaction of Condition No. 17 of the Resolution, the Developer 6 agrees to comply with all applicable requirements of the California Department of Fish and Game, the California State Water Resources Control Board, the U.S. Department of Fish and Wildlife, and the U.S. Army Corps of Engineers as to the Project. 15. Condition No. 18 - (Brush Management Plan) In partial satisfaction of Condition No. 18 of the Resolution, the Developer shall amend or make additions to the approved Brush Management Program as required by the Fire Marshal prior to the approval of additional final maps. The Brush Management Program shall comply with the Tenuative Map conditions. 17. Condition No. 26 - (Wall Plan). In partial satisfaction of Condition No. 26 of the Resolution, the Developer agrees to submit a comprehensive wall plan indicating color, materials, height and location for review and approval by the Director of Planning and Building prior to approval of each final map within the project. The wall plan shall also include details such as accurate dimensions, complete cross-sections showing required noise walls, adjacent grading, landscaping, road/trail/sidewalk improvements, and the location of typical residential structures. Materials and color used shall be compatible and all walls located in corner side-yards or rear yards facing public or private streets or pedestrian connections shall be constructed of a decorative masonry and/or wrought iron material. View fencing shall be provided at the ends of all other open cul-de-sacs where a noise wall is not required. Any combination free standing/retaining walls shall not exceed 9.0 feet in height. The Developer shall submit a detail and/or cross section of the maximum/minimum conditions for all "combination walls" which include retaining and free standing walls, as part of said wall plan. Ail walls shall be constructed by Developer in conjunction with improvements within the final map area 18. Condition No. 27. - (Landscaping). In partial satisfaction of Condition No. 27 of the Resolution, the Developer agrees to comply with all aspects of the City of Chula Vista Landscape Manual. 19. Condition No. 28. - (Street Tr~es). In partial satisfaction of Condition No. 28 of the Resolution, the Developer: a. shall obtain approval from the Director of Parks and Recreation and the City Engineer of a separate street tree improvement plan which includes the final selection of trees, the location of Trees within the parkway, and in relation to water laterals, sewer laterals, dry utilities, driveways, inlets and pedestrian ramps, within thirty (30) days of the approval of this Agreement b. upon request of the Director of Parks and Recreation, shall plant within all street parkways, trees which have been selected from the revised list of appropriate tree species 7 described in the Landscape Master Plan, which shall be approved by the Directors of Parks and Recreation and Public Works. The Developer shall provide root control methods per the requirements of the Director of Planning and Building and a deep watering irrigation system for the trees. 20. Condition No. 30 - (Compliance with approved plans) In partial satisfaction of Condition No. 30 of the Resolution, the Developer shall: Comply with, remain in compliance with, and implement, unless otherwise conditioned, the terms, conditions and provisions of the San Miguel Ranch General Development Plan, Sectional Planning Area Plan ("SPA"), and such Master Plan of Reclaimed Water, Urban Runoff Report, Habitat Enhancement Plan, Master Plan of Sewage, Water Conservation Plan, the Air Quality Improvement Plan Design Guidelines and the Public Facilities Financing Plan approved by the Cbuncil (~'Plans") as are applicable to the property which is the subject matter of this Tentative Map, prior to approval of each final Map, or enter into an agreement with the City, providing the City with such security (including recordation of covenants running with the ~and) and implementation procedures as the City may require, assuring that, after approval of the final Map, the developer shall continue to comply with, remain 'in compliance with, and implement such Plans. 21. Condition Nos. 31 and 32, - (Streets, Rights-of-Way and Public Improvements). In partial satisfaction of Condition Nos. 31 and 32 of the Resolution, a. Improve~ments The Developer shall construct all improvements and provide security satisfactory to the City Engineer in accordance with the Public Facilities Financing Plan, as may be amended from time to time and shall construct the land development work in and adjoining said subdivision and as shown on the Drawings set forth on Attachment "B" (Land Development Improvements"), at its own expense, without any cost to the City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of the City Engineer. Developer further agrees to furnish the necessary materials therefor; all in strict conformity and in accordance with the plans and specifications, which documents have heretofore been filed in the Office of the City Engineer and by this reference are incorporated herein and made a part hereof. Developer shall complete construction of the Land Development Improvements on or before the earlier of the second anniversary date of Council approval of this Agreement or, if prior to Council approval of this agreement, a construction permit was issued for any portion of said Land Development Improvements, then construction on that portion for which a permit was issued shall be completed on or before the second anniversary date of issuance of said permit. It is expressly understood and agreed to 8 by Developer that, in the performance of construction of said Land Development Improvements, Developer shall conform to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. Nothing herein is intended to preclude Developer from requesting Transportation Development Impact Fee credits or reimbursements from a Community Facilities District for eligible improvements. b Bonding. 1. Developer agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this Agreement, and to thereafter maintain until City acceptance of the work referenced herein, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City Engineer and City Attorney in the sums as set forth on Attachment "B", which security shall guarantee the faithful performance in connection with the installation of the Land Development Improvements as shown on Attachment "B" 2. Developer a~cknowledges and agrees that if the Land Development Improvements are not completed within the time agreed herein, the sums provided by said improvement securities may be used by City for the completion of the Land Development Improvements in accordance with those approved plans and specifications contained on Attachment "B", or at the option of the City, for those improvements shown on Attachment "B" that are less than, but not greater to, the sums provided by said improvement securities. Upon certification of completion by the City Engineer and acceptance of said work by City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required for payment thereof, may be released to the Developer or its successors in interest, pursuant to the terms of the improvement security. Developer agrees to pay to the City any difference between the total costs incurred to perform the work, including limited and reasonable design and administration of construction in substantial conformance with the approved plans (including a reasonable allocation of overhead), and any proceeds from the improvement security. c Developer's Costs and Expenses. It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall the City or the City's officer, sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor. d. Plan Check fees and Additional Costs. It is further understood and agreed by Developer that any engineering costs 9 (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Land Development Improvements plans and installation of Land Development Improvements described above, as required by City and approved by the City Engineer shall be paid by Developer, and that Developer shall deposit, prior to recordation of this Final Map, with City a sum of money sufficient to cover said cost. e Maintenance Costs. Developer understands and agrees that until such time as all of the Land Development Improvements as covered by any particular bond are fully completed and accepted by City, Developer shall be responsible for the care, maintenance of, and any damage to, streets and any alleys, easements, water and sewer lines. It is further understood and agreed that Developer shall guarantee all of the Land Development Improvements for a period of one year from date of final acceptance and correct any and all defects or deficiencies arising during said period as a result of the acts or omission of Developer, its agents or employees in the performance of this Agreement, and that upon acceptance of the work by City, Developer shall grant to City, by appropriate conveyance, the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. f. indemnification Developer further understands and agrees that City, (as "Indemnitee") or any officer or employee thereof, shall not be liable for any bodily injury, death, or property damage, including thereto hazardous materials and property takings claims occasioned by reason of the acts omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee (which are not the result of Indemnitee's sole negligence or willful misconduct), related to the construction of the Land Development Improvements. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense (including without limitation, reasonable attorney's fees) or loss for bodily injury, death or property damages, including thereto hazardous materials and property takings claims because of or arising out of Developer's construction of the Land Development improvements or the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee, related thereto; provided, however, that Developer shall have no obligation to indemnify, defend, protect or hold Indemnitee or any officer or employee thereof harmless from any such losses, claims, demands, causes of action, liability, damages, costs or expenses which arise out of the sole negligence or willful misconduct of the Indemnitee or any officer or employee thereof. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, 10 harmless from any and all claims, demands, causes of action, liability, cost and expense (including without limitation, reasonable attorney's fees) made or incurred by such third parties pursuant to or arising out of contracts entered into by such third parties with or on behalf of Developer or its successors, assigns or agents concerning construction of the Land Development Improvements provided, however, that Develope~ shall have no obligation to indemnify, defend or hold Indemnitee or any officer or employee thereof harmless from any such losses, claims, demands, damages, causes of action, liability, costs and expenses to the extent that they have arisen due to the sole negligence or willful misconduct of Indemnitee or any officer or employee thereof. The improvement securities referred to above shall not cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of construction of the Street Improvements as provided herein. It shall also extend to damages resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the result of construction of the Land Development Improvements. The approval of plans for the Land Development Improvements shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for said work and related improvements. The provisions of this paragraph shall become effective upon the execution of this Agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the Land Development Improvements. 22. Condition No. 40 (ADA Standards). In satisfaction of Condition No. 40 of the Resolution the Developer agrees that in the event the Federal Government adopts "Americans with Disabilities Act" ("ADA") standards for street rights-of-way, which are in conflict with the standards and approvals contained herein, all such approvals conflicting with those standards shall be updated to reflect those standards. Unless otherwise required be federal law, City ADA standards may be considered vested, as determined by Federal Regulations, only after construction has commenced. 23. Condition No. 44 and 45 (Off-Site Right-of-Way). In partial satisfaction of Condition Nos. 44 and 45 of the Resolution the Developer agrees to: a. Acquire and then grant to the City all off-site rights- of-way necessary for the installation of required street improvements for the affected phase, prior to approval of each Final Map for each affected phase of the subdivision. b. Notify the City at least 60 days prior to consideration of the affected Final Map by City, if off-site right-of-way and 11 easements cannot be obtained as required by these conditions. (Only off-site right-of-way or easements affected by Section 66462.5 of the Subdivision Map Act are covered by this condition). After said notification and prior to the approval of the affected Final Map, the developer shall: i. Pay the full cost of acquiring off-site right-of- way or easements required by the Conditions of Approval of the Tentative Map. ii. Deposit with the City the estimated cost of acquiring said right-of-way or easements. The amount of the deposit is subject to the approval of the City Engineer. iii. Prepare and submit all easement and/or right-of- way documents, plats and appraisals necessary to commence condemnation proceedings. If the developer so requests, the City may use its power of eminent domain to acquire right-of-way, easements or licenses needed for off-site improvements or work related to the tentative map. The developer shall pay all costs, both direct and indirect incurred in said acquisition. 23. Condition No. 49 - (Bus Turnouts). In partial satisfaction of Condition No. 49 of the Resolution, Developer agrees to the following: a. Prior to the approval of a site plan for Phase IV (SPA Planning Areas A, M, N), or upon the request of the City Transit Coordinator, whichever occurs earlier the Developer shall submit to and obtain approval by the City Engineer and City Transit Coordinator of designs for two bus turnouts, or two bus stops at the discretion of the City Transit Coordinator, which will be located along the eastbound and westbound Proctor Valley Road, east of Mount Miguel Road. The designs shall include, along with the turnouts, or two bus stops at the discretion of the City Transit Coordinator, bus shelters, benches, concrete pads, signing, striping and appurtenances. b. Concurrent with the first construction permit for street improvements adjacent to Phase IV (SPA Planning Areas the Developer shall construct as a "turn-key" project to the satisfaction of the City Engineer and the City Transit Coordinator the two bus turnouts, or two bus stops, shelters and all appurtenances per the approved design. 24~ Condition No. 50 and 162 - (ROW and Landscape Easements for Bus Turnouts). In partial satisfaction of Condition No. 50 and 162 of the Resolution, the Developer shall grant, prior to issuance of the 1st building permit or approval of a site plan within Phase IV (SPA Planning Areas A,M,N), whichever occurs first, any additional right-of-way or 20-foot landscape buffer 12 easements if any for the bus turnouts or bus stops on Proctor Valley Road, to the satisfaction of the City Engineer, at locations to be determined by the City Transit Coordinator. 25. Condition No. 64 - (Protective Fencing) In partial satisfaction of Condition No. 64 of the Resolution, the Developer shall construct a protective fencing system around all proposed detention basins, and the inlets and outlets of storm drain structures, as and when directed by the City Engineer. The final design and types of construction materials shall be as shown on City Approved Plans and subject to approval of the City Engineer and Director of Parks and Recreation 26. Condition No. 67 - (NPDES). In satisfaction of Condition No. 67 of the Resolution, Developer agrees to comply with all the provisions of the National Pollutant Discharge Elimination System (NPDES) and the CleaD Water Program during and after all phases of the development process, including but not limited to: mass grading, rough grading, construction of street and landscaping improvements, and construction of dwelling units. 28. Condition No. 73 - (Hold harmless). In satisfaction of Condition No. 73 of the Resolution, the Developer agrees that, on the condition that City shall promptly Notify the Developer of any claim, action or proceeding, Developer shall defend, indemnify, and hold harmless the City, and its agents, officers and employees, from any claim, action, or proceeding against the City, or its agents, officers or employees, related to erosion, siltation or increased flow of drainage resulting from the Property. City agrees to reasonably cooperate with Developer in the defense of any such action, claim or proceeding. 29. Condition No. 74 - (Encroachment Permit). In partial satisfaction of Condition No. 74 of the Resolution, the Developer shall apply and obtain an encroachment permit prior to the installation of all private storm drain facilities within the public right-of-way or within C.F.D. maintained open space lots. 30. Condition No. 89 - (Subordination of Easements). In partial satisfaction of Condition No. 89 of the Resolution, the Developer shall, upon the request of the City Engineer, either remove or cause the subordination of any easement, which may unreasonably interfere with the full and complete exercise of any required public easement or right-of-way prior to the approval of each Final Map. 31. Condition No. 90 - (Withhold Building Permits and Hold Harmless) In partial satisfaction of Condition No. 90 of the Resolution, the Developer understands and agrees that the performance of Developer's obligations hereunder is required for the health and safety of the residents of its Project. Therefore Developer agrees: 13 a. That the City may withhold building permits for the subject subdivision if any one of ~he following occur: (i) . Regional development threshold limits set by the East Chula Vista Transportation Phasing Plan, as amended from time to time, have been reached or, in order to have the Project comply with the Growth Management Program, as may be amended from time to time. (ii). Traffic volumes, levels of service, public utilities and/or services exceed the adopted City threshold standards in the then effective Growth Management Ordinance. (iii). The required public facilities, as identified in the PFFP or as amended or otherwise conditioned have not been completed or constructed to the satisfaction of the City. The developer may propose changes in the timing and sequencing of development and the construction of improvements affected. In such case, the PFFP may be amended as approved by the City's Director of Planning and Building and the Public Works Director. b. To defend, indemnify and hold harmless the City and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers er employees, te attack, set aside, void or annul any approval by the City, including approval by its Planning Commission, City Council or any approval by its agents, officers, er employees with regard to this subdivision pursuant to Section 66499.37 ef the State Map Act provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. c. To ensure that all franchised cable television companies {"Cable Company") are permitted equal opportunity to place conduit and provide cable television service to each lot within the subdivision. Developer agrees that the City of Chula Vista may grant access to cable companies franchised by the City of Chula Vista to place conduit within the City's easement situated within the Project. Developer shall restrict access to the conduit to only those franchised cable television companies who are, and remain in compliance with, all other rules, regulations, ordinances and procedures regulating and affecting the operation of cable television companies as same may have been, or may from time to time be issued by the 14 City of Chula Vista. d. That the City may withhold the issuance ef building permits for the Project, should the Developer be determined by the City to be in breach of any of the terms of the Tentative Map Conditions or any Supplemental Agreement. The City shall provide the Developer of notice of such determination and allow the Developer reasonable time to cure said breach. e. To hold the City harmless from any liability for erosion, siltation or increase flow of drainage resulting from this project. 33. Condition No. 92 - (Congestion Management Program). in satisfaction of Condition No. 92 of the Resolution, the Developer agrees: a. To participate, on a fair share basis, in any deficiency plan or financial program adopted by SANDAG to comply with the Congestion Managemen} Program (CMP) and b. To not protest formation of any future regional impact fee program or facilities benefit district to finance the construction of regional facilities. This agreement to not protest shall not be deemed a waiver of,the right to challenge the amount of any assessment, which may be imposed due to these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. 34. Condition No. 94 - (Street Sweeping). In partial satisfaction of Condition No. 94 of the resolution, the Developer shall contract with the City's current street sweeping franchisee, or other server approved by the Director of Public Works to provide street sweeping for each phase of development on a frequency and level of service comparable to that provided for similar areas of the City. The developer shall cause street sweeping to commence inlmediately after the final residence, in each phase, is occupied and shall continue sweeping until such time that the City has accepted the street or 60 days after the completion of all punch list items, whichever is shorter. The developer further agrees to provide the City Special Operations Manager with a copy of the memo requesting street sweeping service which memo shall include a map of areas to be swept and the date the sweeping will begin. 35~ Condition No. 96 - (School Site}. In partial satisfaction of Condition No. 96 of the Resolution, Developer shall reserve Lot S-A (elementary school site) for school purposes to be offered for dedication in fee to the Chula Vista Elementary School District ("CVESD"), in accordance with the provisions of the Developer's school mitigation agreement with the CVESD, as approved by, and to the satisfaction of, the CVESD. 15 36. Condition No. 98. - (Open Space lots). In satisfaction of Condition Nc. 98 of the Resolution, Developer agrees ~o provide the City, prior to execution of this Agreement, and prior to approval of any subsequent Final Map containing open space lots with irrevocable offer(s) of dedication (IODs), in accordance with Government Code Section 7050, a fee interest, free and clear of all encumbrances, in the real properties shown on the Final Map as park lots and open space lots and offered to the City for acceptance on such map. The IODs are attached to this Agreement as Attachment "C". 37. Condition No. 99 - (No Protest of Maintenance District or Assessment District). In satisfaction of Condition No. 99 of the Resolution, Developer agrees to not protest the formation o~ or the inclusion in, a maintenance district, including a community facility district or a benefit zone, for the maintenance of landscaped medians and parkways along streets and scenic corridors along streets within or adjacent to Project. This agreement to not protest shall not be deemed a waiver of the right to challenge the amount of any assessment, which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. 38. Condition No. 102 - (Open Space Incorporated into HOA or CFD) In partial satisfaction of Condition No. 102 of the Resolution, prior to the approval of each final map which contains open space lots, the Developer shall provide proof to the satisfaction of the Director of Public Works that all improvements located on open space lots will be incorporated into and maintained by a Homeowner's Association or a CFD. 39. Condition No. 103 - (DG Walkways free from obstacles) - In partial satisfaction of Condition No. 103 of the resolution, the Developer hereby acknowledges and agrees that there shall be no vertical obstacles or any obstructions such as public utility vaults, boxes, etc. placed within the decomposed granite (D. walkways within the project. In the event of any such obstruction placed within the walkways, Developer agrees to immediately remove such obstructions, upon request of the City. 40. Condition No. 107 - (No Protest of Sewer Maintenance District). In satisfaction of Condition No. 107 of the Resolution, 5he developer agrees to not protest formation of a dissrict for nhe maintenance of City drainage facilities, or any portion thereof, within the Sunnyside Basin. This agreement not to protest shall not be deemed a waiver of the right to challenge the amount of any assessment which may be imposed due to the addition of these new improvements and shall not interfere with the right of any person to vote in a secret ballot election. 41. Condition No. 110 - (Parks Master Plan). In partial satisfaction of Condition No. 110 of the Resolution, Developer 16 /5'8, --/7 acknowledges that the City is in the process of preparing a City- wide Parks Master Plan and Developer agrees to comply with the provisions of the City-wide Parks Master Plan upon its adoption by the City Council. 42. Condition No. 1tl - (IOD for Park Site) - In partial satisfaction of Condition No. 111 of the resolution, the Developer hereby acknowledges and agrees: a. to provide, concurrent with this agreement, an Irrevocable Offer o~ Dedication (IOD) to the City, in a form approved by the City Attorney, for the 16.98 gross acre Project's community park site (Lot M of the final map); b. to provide, concurrent with this agreement, an IOD to the City, in a form approved by the City Attorney, for the 2.06 gross acre Project's community park site {Lot GG of the final map); c. Developer further acknowledges and agrees that 12.85 acres included within the IOD for the Project's community park site (Let M ef the final map) is in satisfaction of the Project's parkland dedication obligation; d. Developer furEher acknowledges and agrees that the Developer shall provide park improvements on 14.55 net acres of the Project's community park site {Lots H and GG ef the final map) at no cost te the City; e. Developer furthers acknowledges and agrees to accept a one-time reimbursement ef $323,330.00, for 1.49 net acres included within the IOD for the Project's community park site (Lot H of the final map)~ upon City's acceptance ef the completed and improved Project's community park; 43. Condition No. 112 (Community Public Facility Site - Development). In partial satisfaction of Condition No. 112 of the Resolution, the Developer hereby acknowledges and agrees that the Developer: a. Shall cause to have constructed in a manner and with the timing to the full satisfaction of the City, a multi-purpose community building ("Building") of such substantial size to contain adequate space, improvements, fixtures and like amenities to accommodate community activities, as determined in the sole discretion of the Directors of Parks and Recreation and Planning and Building. The site and building shall be included within the Master Plan for the Project's community park. b. Agrees that the City shall in its sole discretion determine the acceptable use of the site, which shall be 17 complementary and compatible to the adjacent community park site. c. Should the City exercise its option to purchase the site, at such time as it is exercised, a purchase price shall be determined by an appraisal to be performed by the City at Developer's cost, which shall value lot CP-B as a CPF site. d. May sell CPF site (CP-B) to a non-profit entity. Developer shall prepare escrow instructions to the satisfaction of the City Attorney, setting forth these map conditions as to the site. Developer shall notify City in writing at least 10 days before execution of a purchase agreement for sale of the site, and shall provide City sufficient information to enable the .City to determine the purchaser's intended use. The City shall have the right to approve or disapprove the purchaser of the site. Approval of the City shall not be unreasonably withheld. e. The Developer and City acknow'ledges and agrees CPF-user automobile parking will be shared with community park users within the community park site in an amount as determined by the Conditional Use Permit for the CPF site and by the Director of Parks and Recreation. 44. Condition No. 113 - (Community Public Facility Site - Area). In partial satisfaction of Condition No. 113 of the Resolution, the Developer hereby acknowledges and agrees that the configuration of the CPF site (Lot CP-B) as presented on the Tentative Map is subject to change consistent with the provisions of the Master Plan for the Community Park within the Project. Developer further acknowledges and agrees that Lot CP-B is subject to integration with the Community Park Site (Lot CP-A) Developer hereby further acknowledges and agrees to process a lot line adjustment to any approved final map to reflect this change, upon request of the City and at no cost to the City. 45. Condition No. 114 - (Three Party Agreement). In partial satisfaction of Condition No. 114 of the Resolution, Developer hereby agrees prior to City Council approval of the first final map containing single family lots for the Project, to enter into a three party agreement with the City of Chula Vista and a landscape architecture consulting firm for the preparation and processing of a Master Plan for the Project's Community Park. The Director of Parks and Recreation shall have the right to select the consultant. 46. Condition No. 115 - (Community Park Master Plan). In partial satisfaction of Condition No. 115 of the Resolution, Developer hereby agrees that prior to commencement of construction of the Project's Community Park, the Developer shall prepare and submit and obtain the approval from the Director of Parks and Recreation for a Master Plan for the Project's Community Park. The Master Plan for the Project's community park 18 shall address, among other items the possible two-phase aspect of the park site and shall include facilities and amenities prescribed in the City-wide Parks Master Plan as adopted by City Council. In the event that the forthcoming City-wide Park master plan is not adopted before the master planning for the Project's community park begins, the Director of Parks and Recreation shall determine the appropriate park facilities for the community park. The Master Plan for the Project's community park shall include: a detailed written and graphic description and identification of intended design themes and concepts; the integration of the CPF site with the park; identification of the CPF use and user; a park construction cost estimate, a park implementation plan, a park phasing plan and a park financing plan; a reasonable layout of the elements proposed to be included within the park, as set forth in denail in Tentative Map Condition No. 115. 47. Condition No. 118 - (Community Park Site Grading). In partial satisfaction of Condition No. 118 of the Resolution, the Developer shall upon request of the Director of Parks and Recreation re-grade the Community Park site to conform to the Approved Master Plan for the Project's community park. The Developer hereby further acknowledges and agrees to provide said re-grading with a value of not to exceed $40,000.00, which cost shall be subject to review, verification and approval of the City Engineer, at no cost to the City. Any re-grading costs in excess of $40,000.00, which reviewed, verified and approved by the City Engineer, shall be considered a reimbursable PAD fee expenditure. 48. Condition No. 119 - (Community Park Site Utilities). In partial satisfaction of Condition No. 119 of the Resolution, the Developer shall install below grade utilities and future points of connection to the boundaries of the Community Park site (Lots CP-A and B) to the satisfaction of the City Engineer and the Director of Parks and Recreation concurrently with the installation of below grade utilities for any portion of Planning Areas H or I, whichever occurs first. 49. Condition No. 120 - (Community Park Commence Construction). In partial satisfaction of Condition No. 120 of the Resolution, Developer hereby acknowledges and agrees that prior to issuance of a building permit for the 800th dwelling unit for the Project, the Developer shall commence construction on the complete and final (second phase) Community Park and facilities in complete accordance with the Approved Improvement Plans for the Project's Community Park. 50. Condition No. 121 - (Cormmunity Park Complete Construction). In partial satisfaction of Condition No. 121 of the Resolution, the Developer hereby acknowledges and agrees to complete construction of the second phase of the Project's Community Park and facilities within twelve months from commencement of construction. For the purposes of this Condition 19 the term "complete construction" shall mean park construction has been completed according to the City approved Improvement Plans and accepted by the Director of Parks and Recreation. Furthermore, "complete construction" shall mean prior to and shall not include the City's establishment maintenance period, required prior to allowance by the City of public use. 51. Condition No. 122 (Park Development and Acquisition Fee). In partial satisfaction of Condition No. 122 of the Resolution, Developer hereby acknowledges and agrees that prior to the approval of each Final Map within the Project which allows construction of any dwelling unit, the Developer shall pay to the City the development portion of the Park Development Fee (PAD fee) due for the dwelling unit count of the respective Final Map. The principal funds shall accumulate to the total amount of the park development fee due for the Project as established by the PFFP. In the event the City accepts the "turn-key" improvements of the Community Park site (Planning Area CP) the Park Development fees paid, less the City's cost of processing and administering the expenditure verification and administration of the PAD fees, shall be returned to the Developer at the time of the City's acceptance of the Project's community park improvement plans and accompanying security bonds. The City may withhold up to 20% of the total PAD fees due uhtil the park has been completed and accepted by the City. 52. Condition No. 123 - (Turn-Key Park Improvements). In partial satisfaction of Condition No. 123 of the Resolution, Developer hereby acknowledges and agrees as follows: a. that prior to the commencement of any construction of the "turn-key" improvements of the Community Park site (Planning Area CP) the Developer shall submit to the City for review, verification and receive approval of a pre-construction esuablished cost for such construction; b. that any amendment to this total cost shall be in writing and receive approval from the City; c. that prior to the release of any PAD fee due the Developer, the Developer shall submit to the City for review, verification and receive approval of a complete accounting of all expenses for the cost of improvements to the "turn key" Community Park; and d. that in the event of a disagreement as to the appropriateness of expense for which the Developer seeks reimbursement, the City Manager's or his designee's opinion of such expense shall prevail. The City Manager or his designee shall not unreasonably withhold approval. 53. Condition No. 124 - (Park Improvements Cost). In 2O partial satisfaction of Condition No. 124 of the Resolution, nhe Developer hereby acknowledges and agrees that the Developer may not improve the Project's Community Park in excess of the City approved pre-construction established cost without City approval. In the event the City requires Developer to improve the Project's Community Park in excess of the City approved pre-construction established cost the City shall reimburse the Developer for the amount authorized by the City to be expended as a result of City's requirement. This condition shall not be construed to prevent the Developer from improving the park in excess of the project's City approved pre-construction established cost with the City's approval, at the Developer's sole cost and expense. 54. Condition No. 125 (First Phase Community Park Commence Construction). In partial satisfaction of Condition No. 125 of the Resolution the Developer hereby acknowledges and agrees; a. that prior to the issuance of the Building Permit for the 400th dwelling unit within the Project (or other dwelling unit number as may be Approved by the City Manager or his designee), the Developer shall have commenced construction of the First Phase of the Community Park site as directed by the City approved Master Plan for the Project's Community Park, or provided improvements to the site to the satisfaction of the City Manager or his designee. b. to complete construction of first phase park improvements within 270 days of commencement of construction. For the purposes of this Condition the term "complete construction" shall mean park construction has been completed according to the City approved Improvement Plans and accepted by the Director of Parks and Recreation. Furthermore, "complete construction" shall mean prior to and shall not include the City's establishment maintenance period, required prior to allowance by the City of public use; c. to provide park improvements, in addition to all other obligations set forth elsewhere in this agreement, as solely defined by and determined to have a valuation of approximately $40,000.00 by the Director of Parks and Recreation in his sole discretion, in place and stead of the retaining wall as shown in the southwest corner of Lot CP-A within the approved grading plans for Phase I, II and IV of the subdivision ("Additional Park Improvements"); and d. to provide the City a cash deposit of $25,000.00, as security for these Additional Park Improvements, contemporaneously with the commencement of construction of the First Phase of the Project's Community Park. Developer acknowledges and agrees that if the Additional Park Improvements are not completed within the time as defined and determined by 21 the Director of Parks and Recreation, the cash deposit may be used by the City for the completion ef the Additional Park Improvements. 55. Condition No. 126 and 129 - (Community Park Construction Drawings). In partial satisfaction of Conditions No. 126 and 129 of the Resolution, Developer hereby acknowledges and agrees that the Developer shall, within 270 days from the City Council's Approval of the Master Plan for the Project's community park, prepare, submit and obtain approval from the Director of Parks and Recreation of construction drawings for the entire community park (Phases one and two) and provide security in an amount as requested by the Director of Parks and Recreation and in a form acceptable to the City Attorney. 56. Condition No. 127 and 128 - (Area NP Private Neighborhood Park Complete Construction). In partial satisfaction of Conditions No. 127 and 128 of the Resolution, Developer hereby acknowledges and agrees that prior to the issuance of the construction permit for the Project's neighborhood park /Planning Area NP) Developer shall prepare, submit and obtain approval from the Director of Parks and Recreation for construction drawings for the neighborhood park. Developer further hereby acknowledges and agrees to complete construction within 180 days after co~mencemenu of construction. 57. Condition No. 130 - (Park Agreement). In partial satisfaction of Condition No. 130 of the Resolution, the Developer hereby acknowledges and agrees: a. to provide the City with a "turn-key" community park constructed in accordance with the City approved Master Plan for the Project's Community Park and City approved construction documents, and provide security to the City in the form of a bond, in an amount as determined by the Director of Parks and Recreation and in a form satisfactory to the City Attorney, whereby the Developer guarantees construction for the Project's complete park development obligation, and shall provide complete maintenance for the Community Park improvements for an establishmenE period of one (1) year, or until such time as the Community Pa~k is accepted by the City for public use. This condition is not intended to supersede any of the City's maintenance guarantee requirements. b. tha~ if any of the terms, covenants or conditions contained herein shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted including issuance of building permits, deny, or further condition subsequent approvals that are 22 derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. The Developer shall be notified 10 days advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable and diligent time frame. 58. Condition No. 132 and 135 (Construct Trails) In partial satisfaction of Condition Nos. 132 and 135, the Developer shall construct all trails to the satisfaction of the Director of Parks and Recreation, in accordance with the following: a. Improvement Work. Developer agrees to construct the Trail Improvements and land development work in and adjoining said subdivision and as shown on the Drawings set forth on Attachment "D" ("Public Trail Improvem'epts"), at its own expense, without any cost to the City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of the City Engineer. Developer further agrees to furnish the necessary materials therefore, all in strict conformity and in accordance with the plans and specifications, which documents have heretofore been filed in the Office of the City Engineer and by this reference are incorporated herein'and made a part hereof. Developer shall complete construction of the Trail Improvements on or before the earlier of the second anniversary date of Council approval of this Agreement or, if prior to Council approval of this Agreement, a construction permit was issued for any portion of said Trail Improvements, then construction on that portion for which a permit was issued shall be completed on or before the second anniversary date of issuance of said permit. It is expressly understood and agreed to by Developer that, in the performance of construction of said Trail Improvements, Developer shall conform to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. b. Bonding. i. Developer agrees to furnish and deliver to the City of Chu!a Vista, simultaneously with the execution of this Agreement, and to thereafter maintain unfi! City acceptance of the work referenced herein, an approved improvement security from a sufficient surety with an A.M. Best rating of A, V or better, whose sufficiency has been approved by the City Attorney in the sums as set forth on Attachment "D", which security shall guarantee the faithful performance and secure the payment of labor and materials in connection with the installation of the Trail Improvements as shown on Attachment "D". ii. Developer acknowledges and agrees that if the Trail Improvements are not completed within the time agreed 23 herein, the sums provided by said improvement securities may be used by City for the completion of the Trail Improvements in accordance with those approved plans and specifications contained on Attachment "D", or at the option of the City, for those improvements shown on Attachment "D" that are less than, but not greater to, the sums provided by said improvement securities. Upon certification of completion by the City Engineer and acceptance of said work by City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required for payment thereof, may be released to the Developer or its successors in interest, pursuant to the terms of the improvement security. Developer agrees to pay to the City any difference between the total costs incurred to perform the work, including limited and reasonable design and administration of construction in substantial conformance with the approved plans (including a reasonable allocation of overhead), and any proceeds from the improvement security. c. Developer's Costs and Expenses. It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall the City or the City's officer, sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor. d. Plan Check fees and Additional Costs. It is further understood and agreed by Developer that any engineering costs {including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Trail Improvements plans and installation of Trail Improvements described above, as required by City and approved by the City Engineer shall be paid by Developer, and that Developer shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. e. Maintenance Costs. Developer understands and agrees that until such time as all of the Trail Improvements as covered by any particular bond are fully completed and accepted by City, Developer shall be responsible for the care, maintenance of, and any damage to, such Trails and any alleys, easements, water and sewer lines. It is further understood and agreed that Developer shall guarantee all of the Trail Improvements for a period of one year from date of final acceptance and correct any and all defects or deficiencies arising during said period as a result of the acts or omission of Developer, its agents or employees in the performance of this Agreement, and that upon acceptance of the work by City, Developer shall grant to City, by appropriate conveyancer the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. 24 f. Indemnification Developer further understands and agrees that City, {as "Indemnitee") or any officer or employee thereof, shall not be liable for any bodily injury, death, or property damage, including thereto hazardous materials and property takings claims occasioned by reason of the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee (which are not the result of Indemnitee's sole negligence or willful misconduct), related to the construction of the Trail Improvements. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense /including, without limitation, reasonable attorney's fees) or loss for bodily injury, death or property damages, including thereto hazardous materials and property takings claims because of or arising out of Developer's construction of the Trail Improvements or the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee, related thereto; provided, however, that Developer shall have no obligation to indemnify, defend, protect or hold Indemnitee harmless from any such losses, claims, demands, causes of action, liability, damages, costs or expenses which arise out of the sole negligence or willful misconduct of the Indemnitee or any officer or employee thereof. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, cost and expense (including without limitation, reasonable attorney's fees) made or incurred by such third parties pursuant to or arising out of contracts entered into by third parties with or on behalf of Developer or its successors, assigns or agents concerning construction of the Trail Improvements; provided, however, that Developer shall have no obligation to indemnify, defend or hold Indemnitee harmless from any such losses, claims, demands, damages, causes of action, liability, costs and expenses to the extent that they have arisen due uo the sole negligence or willful misconduct of Indemnitee. The improvement securities referred to above shall not cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of construction of the Trail Improvements as provided herein. It shall also extend to damages resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the result of construction of the Trail Improvements. The approval of plans for the Trail Improvements shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for said work and related improvements. The provisions of this paragraph shall become effective upon the 25 execution of this Agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the Trail Improvements. 59. Condition No. 136 - (Landscape, Irrigation and Erosion Control Plans). In partial satisfaction of Condition No. 136 of the Resolution, the Developer shall, concurrent with the submittal of every grading plan, prepare, submit and obtain the approval of the City Engineer and Director of Parks and Recreation of landscape, irrigation and erosion control plans for graded areas. Developer further agrees that, concurrent with street improvement plans, the Developer shall prepare, submit and obtain the approval of the City Engineer and the Directors of Parks and Recreation and Planning and Building, plans for open space, parkway, median, walls and fences and trail landscape and irrigation. The Developer acknowledges and agrees that all plans shall be prepared in accordance with the Chula Vista Landscape Manual and Section V-15, Design Guidelines, of the San Miguel Ranch SPA. 60. Condition No. 137 to 154 - (Landscape and Irrigation Improvements for Open Space Lots). In partial satisfaction of Condition Nos. 137 to 154 of the Resolution, the Developer shall prepare, submit and obtain the approval of the Director of Parks and Recreation for, landscape planting and irrigation improvements for the open space lots as set forth below prior to the approval of improvement plans for any portion of the associated Planning Areas indicated. The Developer shall, prior to the City's acceptance of street improvements for any portion of the associated Planning Area, install said landscape planting and irrigation improvements and walls and fences as shown on City approved plans for the open space lots to the satisfaction of the Director of Planning and Buildinc Planning Area Open Space Lots Per Tentative Map B OS-5 E E-B, E-C, E-D, E-E and E1-C F F-Al F-B and E1-A G G-A, G-B, G-D, G-E and E1-B H H-A, H-B, H-D and H-E I I-A and OS-3 M M-B 26 61. Condition No. 156 (Landscaping Plans). In partial satisfaction of Condition No. 156 of the Resolution, Developer shall provide a landscaping plan for each Planning Area, prior to approval of the first building permit for the Planning Area, showing that all single family residential lots have been designed to accommodate a 5~' X 5~' (30.25 sq. ft.) tree planting area within the street tree easement clear of utility lines, boxes, and similar obstructions. 63. Condition No. 167 (Water Conservation and Air Quality Improvement Plans). In partial satisfaction of Condition No. 167 of the Resolution, the Developer shall implement all conservation measures prescribed in the San Miguel Ranch Water Conservation and Air Quality Improvement Plans. 64. Condition No. 168 (P~anned Community District Regulations). In partial satisfaction of Condition No. 168 of the Resolution, the Developer shall comply and remain in compliance with the Planned Community. District Regulations and Design Guidelines. 65. Condition No. 169 (CFD Disclosure Form). In partial satisfaction of Condition No. 169 of the Resolution, the Developer shall provide the City with a copy of the disclosure to homeowners of the cost associated with Mello-Roos Assessment and Community Facility/Open Space districts as required by Ordinance 2275, prior to approval of the first Final Map. 66. Condition No. 171 (Fire Hydrants) In partial satisfaction of Condition No. 171 of the Resolution, the Developer shall provide fire hydrants every 500 ft. within single family residential units and every 300 ft. within multi-family residential units. Ail hydrants shall be operable prior to delivery of combustible materials to the residential units. Minimum 20' wide, all-weather fire access roads shall be provided to the residential units and between the fire hydrants, to the satisfaction of the Fire Marshal. 67. Condition No. 173 (Sprinkler Systems on Flag Lots). In partial satisfaction of Condition No. 173 of the Resolution, the Developer shall provide sprinkler systems in all homes that are on flag lots where the setback distance is greater than 150' as measured from the nearest curb face~ 68° Condition No. 174 (Grading Ordinance)~ In partial satisfaction of Condition No. 174 of the Resolution, the Developer shall comply with all applicable sections of the Chula Vista Municipal Code including Chapter 15.04 "Grading Ordinance" as amended. Preparation of the Einal Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision 27 Manual. 69. Condition No. 175 (Underground Utilities). In partial satisfaction of Condition No. 175 of the Resolutionf the Developer shall underground all utilities within the subdivision in accordance with Municipal Code requirements, excepting those utilities owned and operated by SDG&E located within E-I and which may be relocated per the requirements of SDG&E, to the satisfaction of SDG&E and the City Engineer. 70. Condition No. 176 (Fees). In partial satisfaction of Condition No. 176 of the Resolution, the Developer shall pay, or otherwise satisfy to the City, all applicable fees in accordance with the City Code and Council Policy, including, but not limited to, the following: Prior to issuance of building permit: a. The Transportation and Public Facilities Development Impact Fees. b. Signal Participation Fees. c. Ail applicable sewer fees, including but not limited to sewer connection fees. d. SR-125 impact fee. e. Proctor Valley Trunk Sewer Reimbursement District Fee. f. Frisbie Trunk Fee. Prior to each Final Map approval: g. Park Acquisition and Development Fee. h. Spring Valley Sanitation District Trunk Fee. The amount of said fees shall be those in effect at the time of approval of final maps or issuance of building permits as applicable. 71. Condition No. 177 (Federal, State and Local Reg~ulations) In partial satisfaction of Condition No. 177 of the Resolution, the Developer shall comply with all relevant Federal, State, and Local regulaEions, including the Clean Water Act. The developer shall be responsible for providing all required testing and documentation to demonstrate said compliance as required by the City Engineer. 72. Condition No. 178 (Noise Levels) In partial satisfaction of Condition No. 178 of the Resolution, the Developer shall design all dwelling units to preclude interior noise levels over 45 dBA and shield all exterior private open space to limit noise exposure to 65 dBA. 73. Condition No. 179 (National Pollutant Discharge Elimination System). In partial satisfaction of Condition No. 179 of the Resolution, the Developer shall comply with all applicable 28 regulations established by the United States Environmental Protection Agency (USEPA) as set forth in the National Pollutant Discharge Elimination System (N.P.D.E.S.) permit requirements for urban runoff and storm water discharge and any regulations adopted by the City of Chula Vista pursuant to the N.P.D.E.S. regulations or requirements. Further, the Developer shall file notice of intent with the State Water Resources Control Board to obtain coverage under the N.P.D.E.S. General Permit for Storm Water Discharges Associated with Construction Activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities. The SWPPP shall include both construction and post construction pollution prevention and pollution control measures and shall identify funding mechanisms for post construction control measures. 74. Condition No. 180 (Notice of Special Tax Disclosure). In partial satisfaction of Condition No. 180 of the Resolution, the Developer shall ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" pursuant to Municipal Code Section 5.46.020 regarding projected taxes and assessments. Submit the disclosure form for approval by the City Engineer prior to Final Map approval. 75. Condition No. 181 (Natural Channels in Open Space). In partial satisfaction of Condition No. 181 of the Resolution, the Developer shall comply with Council Policy No. 522-02 regarding maintenance of natural channels within open spaces. 76. Condition No. 182 (Growth Management). In partial satisfaction of Condition No. 182 of the Resolution, the Developer shall oomply with Chapter 19.09 of the Chula Vista Municipal Code (Growth Management) as may be amended from time to time by the City. Said chapter includes but is not limited to: threshold standards (19.09.04), public facilities finance plan implementation (19.09.090), and public facilities finance plan amendment procedures /19.09.100) . 77. Condition No. 183 (Public Facilities) in partial satisfaction of Condition No. 183 of the Resolution, the Developer shall install public facilities in accordance with the San Miguel Ranch Public Facilities Finance Plan as may be amended ~rom time to time, or as required by the City Engineer to meet threshold standards adopted by the City of Chula Vista. The City Engineer and Director of Planning and Building may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. The Developer shall construct the public improvements and provide security satisfactory to the City Engineer. 78. Condition 184 (Phasing Plan). In partial satisfaction of Condition No. 184 of the Resolution, the Developer shall develop 29 the Project in accordance with the approved SPA and PFFP phasing plan. If the Developer proposes to modify this approved phasing plan, the Developer shall submit to the City a revised phasing plan for review and approval prior to approval of each Final Map. The PFFP and these map conditions shall be revised where necessary to reflect the revised phasing plan. 79. Condition No. 185 (Phasing of Individual Maps). In partial satisfaction of Condition No. 185 of the Resolution, if phasing is proposed within an individual map or through multiple final maps, the Developer shall submit and obtain approval for a development phasing plan by the City Engineer and Director of Planning and Building prior to approval of any Final Map. Improvements, facilities and dedications to be provided with each phase or unit of development shall be as determined by the City Engineer and Director of Planning and Building. The City reserves the right to require said improvements, facilities and/or dedications as necessary to provide adequate circulation and to meet the requirements of police and fire departments. The City Engineer and Director of Planning and Building may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. The developer agrees that the City Engineer may change the timing of construction of the public facilities. 80. Condition No. 186 - (Public Facility Financing Plan). In partial satisfaction of Condition No. 186 of the Resolution, the Public Facility Finance Plan or revisions thereto shall be adhered to for the SPA and tentative map with improvements installed in accordance with said plan or as required to meet threshold standards adopted by the City of Chula Vista. The PFF? identifies a facility phasing plan based upon a set of assumptions concerning the location and rate of development within and outside of the project area. Throughout the build-out of San Miguel Ranch, actual development may differ from the assumptions contained in the PFFP. Neither the PFFP nor any other document grant the Developer an entitlement to develop as assumed in the PFFP, or limit the facility improvement requirements to those identified in the PFFP. Compliance with the City of Chula Vista threshold standards, based on actual development patterns and updated forecasts in reliance on changing entitlements and market conditions, shall govern SPA development patterns and the facility improvement requirements to serve such development. In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan or amendment to the Growth Management Program and Ordinance adopted by the City. The City Engineer may modify the sequence of improvement construction should conditions change to warrant such a revision. The San Miguel Ranch PFFP, at the Developer's expense and subject to a Reimbursement Agreement, shall be updated, upon request of the City Engineer, to reflect said revisions including 30 the nature, sizing, extent and timing for the construction of public facilities caused by San Miguel Ranch, and shall become a condition for all subsequent San Migue! Ranch entitlements, including Tentative and final maps. 81. Condition No. 187 (Withhold Building Permits). In partial satisfaction of Condition No. 187 of the Resolution, the Developer acknowledges that the City may withhold building permits for any of the phases of development identified in the Public Facilities Financing Plan (PFFP) if the required public facilities, as identified in the PFFP or as amended or otherwise conditioned, have not been completed or constructed to the satisfaction of the Director of Planning and Building. The property owner may propose changes in the timing and sequencing of the development and the construction of improvements affected. in such cases, the PFFP may require amendment as approved by the Director of Planning and Building. 83. Condition No. 188 (Growth Management Ordinance)- In partial satisfaction of Condition No. 188 of the Resolution, the Developer acknowledges that t~e City is presently in the process of amending its Growth Management Ordinance to establish provisions necessary to ensure compliance with adopted thresholds standards (particularly traffic) prior to the construction of State Route 125 and that the Developer hereby agrees to comply with adopted amendments to the Growth Management Ordinance. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to Final Map approval for that development. 84. Condition No. 189 (San Miguel Water Conservation Plan). In partial satisfaction of Condition No. 189 of the Resolution, the Developer shall at its own cost and expense, revise the San Miguel Ranch Water Conservation Plan ("WCP") as necessary to incorporate new water conservation measures, and/or to participate in pilot projects to evaluate new measures, such as gray water systems, as adopted by the City Council, and comply and remain iR compliance with the WCP. The Developer further agrees to modify the WCP to incorporate those new measures, which are in effect at the time, prior to or concurrent with each Final Map approval. The new measures shall apply to development within all future Final Map areas, but shall not be retroactive to those areas, which received Final Map approval prior to effect of the subject new measures. Developer hereby waives any claim that the adoption of a revised Water Conservation Plan or Air Quality Plan constitutes an improper subsequent imposition of the condition. 85. Condition No. 191 (Declaration of Covenants, Codes and ~estrictions) . In partial satisfaction of Condition No. 191 of the Resolution, the Developer shall ensure that the Declaration of Covenants, Conditions and Restrictions (CC & R's) shall 31 include provisions establishing a Home Owners Association (HCA) to assure maintenance of all open space areas and slopes which are not maintained by other means, streets, driveways, drainage and sewage systems which are private, and landscape and irrigation, walls and public street improvements which are not maintained by other means, all subject to approval of the City. The City of Chula Vista shall be named as party to said Declaration authorizing the City to enforce the terms and conditions of the Declaration in the same manner as any owner within the subdivision. 86. Condition No. 192 (Private Storm Drain Clean-outs) In partial satisfaction of Condition No. ~92 of the Resolution, the Developer shall designate as private and maintain by a Home Owner's Association all storm drain clean outs determined by the City to be in areas inaccessible for maintenance equipment. 87. Condition No. 193 (Submittal of Declaration of Covenants, Codes and Restrictions). In partial satisfaction of Condition No. 193 of the Resolution, prior to the approval of each Final Map, the Developer shall submit and obtain the approval of the City Engineer, Director of Planning and Building, and Director of Public Works the Declaration of Covenants, Conditions, and Restrictions (CC&R's) . Developer further agrees that amended CC&R's addressing future phases to be annexed to the Master HCA shall be submitted and Developer shall obtain the approval of said C,C &R's. The CC&R's shall include the following obligations of the Master Homeowners Association: a. Maintain all the facilities and improvements within the open space lots offered for dedication to the City until acceptance of the open space lots for maintenance by the open space/Community Facilities District. b. A requirement that the MHOA shall maintain comprehensive general liability insurance against liability incident to ownership or use of the following areas: i open space lots offered for dedication to the City until acceptance by the City, or until any such offer of dedication is extinguished by it own terms. ii all open space lots that shall remain private, iii other Master Association property. c. Before any revisions to provisions of the CC&R's that may particularly affect the City can become effective, said revisions shall be approved by the City. The MHOA shall not seek approval from the City of said revisions without the prior consent of 100 percent of the holders of first mortgages or property owners 32 within the MHOA. d. The MHOA shall indemnify and hold the City harmless from any claims, demands, causes of action liability er loss related to or arising from the maintenance activities of the MHOA. e. The MHOA shall not seek to be released by the City from the maintenance obligations described herein without the prior consent of the City and 100 percent of the holders of first mortgages or property owners within the MHOA. f. The MHOA is required to procure and maintain a policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than one million dollars combined single limit. The policy shall be acceptable to the City and name the City as additionally insured. g. The CC&R's shall incorporate ~estrictions for each lot adjoining open space lots containing walls maintained by the open space district to ensure that the property owners know that the walls may nor be modified er supplemented nor may they encroach en City property. h. The CC&R's shall include provisions assuring HHOA membership in an advance notice such as {he USA Dig Alert Service in perpetuity. i. The CC&R's shall include previsions that provide City the right, but not the obligation, to enforce the CC&R provisions same as any owner in the Project. j. The CC&R previsions setting forth restrictions in these Tentative map conditions may not be revised at any time without prier written permission of the City. k. The HHOA shall not dedicate er convey for public streets, land used for private streets without approval ef 100% of all the HOA members er holder ef first mortgages within the MHOA. {Engineering, Parks, Planning, Public Works) 88. Satisfaction of Conditions. City agrees that the execution of this Agreement constitutes satisfaction or partial satisfaction of Developer's obligation of Condition Nos. 1, 2, 3, 4, 5, 6, 10, 12, 13, 14, 15, 17, 18, 26, 27, 28, 30, 31, 32, 40, 44, 45, 50, 49, 64, 67, 73, 74, 89, 90, 92, 94, 96, 98, 99, 102, 107, 110, 112 A, B, C, and E, 113, 114, 115, 118, 119, 120, 121, 122, 123, 124, 125, 126, 128, 129, 130, 132, 135, 136, 137 - 154 inclusive, 156, 162, 167, 168, 169, 171, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 191, 192, and 193 of the Resolution. Developer further understands and agrees that the some of the provisions herein may be required to be performed or accomplished prior to the approval of other 33 final maps for the Project, as may be appropriate. 89. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Tentative Map, established by Resolution No. 2000-068 and shall remain in compliance with and implement the terms, conditions and provisions therein. 90. Recording. This Agreement, or an abstract hereof shall be recorded simultaneously with the recordation of the Final Map. 91. Building Permits. Developer and Guest Builders acknowledge and agree that the City may withhold the issuance of building permits for the Project, should the Developer be determined by the City to be in breach of any of the terms of this Agreement. The City shall provide the Developer of notice of such determination and allow the Developer with reasonable time to cure said breach. 92. Assignablity. Upon request of the developer, any or all on-site duties and obligations set forth herein may be assigned to developer's successor in interest if the City manager in his/her sole discretion determines that such an assignment will not adversely affect the City's interest. The City Manager in his/her sole discretion may, if such assignment is requested, permit a substitution of securities by the successor in interest in place and stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this agreement. Such assignment will be in a form approved by the City Attorney. 93. Delay in Performance. City agrees that should Developer be delayed in performing any obligations under this Agreement primarily as a result of a "Permitted Excuse" {as hereunder defined). Developer shall be allowed a reasonable extension of time to perform said obligation, and such reasonable time shall be determined by the City, but in no circumstances shall be less than the length of the delay resulting from the Permitted Excuse. As used herein, the term "Permitted Excuse" shall mean any of the following: (i) the City's actions, omissions or inaction which result in a delay of performance by Developer or (ii) labor disputes, acts of Ged, war, riots, insurrections, civil commotions, moratorium (ether that those imposed by nhe City pursuant te Growth Management Ordinance, as may be amended from time te time) litigation (other than any litigation brought by or on behalf of Developer or Developer's successors-in-interests, assignees or agents against the City) inability to obtain labor er materials er reasonable substitutes for either, fire, unusual delay in transportation, adverse weather, conditions not normally anticipated in a project of this 34 type or casualties beyond the reasonable control of Developer, Permitted Excuse shall not include delays due to a party's own negligence or financial inability to perform. 94. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party. CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 Attn: Director of Public Works Developer: NNP-Trimark San Miguel Ranch, LLC 85 Argonaut, Suite 205 Aliso Viejo, CA. 92656 Phone {949) 465-1655; Fax: (949) 465-1660 Attn.: Stephen E. Hester, Division President A party may change such address for the purpose of this paragraph by giving written notice ef such change te the other party in the manner provided in this paragraph. b. Captions. Captions in this Agreement are inserted for convenience ef reference and de not define, describe or limit the scope or intent ef this Agreement or any of its terms. c. Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. d. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. e. Recitals; Attacb-ments. Any recitals and Attachments set forth above are incorporated by reference into this Agreement. 35 f. Attorneys' Fees. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. [NEXT PAGE IS PAGE ONE OF TWO SIGNATURE PAGES] 36 [PAGE ONE OF TWO SIGNATURE PAGES TO SUPP?.RMENTAL SUBDIVISION IMPROVEMENT AGREF/4ENT FoRSANMIGUELRANCHMASTERMAPNO. 1] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first hereinabove set forth. CITY OF CHULA VISTA Mayor Attest: Susan Bigelow City Clerk John M. Kaheny City Attorney [NEXT PAGE IS PAGE TWO OF SIGNATI/RE PAGES] 37 [PAGE TWO OF TWO SIGNATURE PAGES TO SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREE~NT FOR SAN MIGUEL RANCH MASTER MAP NO. 1 ] DEVELOPERS/OWNERS: NNP-Trimark San Mi~uel Ranch, LLC 38 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of Californ~ County of 0 ¢/~ ~- ~,/~ ss. On ~.-~ U/ IOI.z.,,, before me,~.~-J~.Y',, FL.~ Date~ --~. ~~~ N ....- ,,- . ~-, ~tle of O~cer (e.g , personally appeared ~Namef*~ n[ S ( , . ~'~ ~, [~ersonally known to me [ ~ proved to me on the basis of satisfacto~ ~ ~;~~ to be the perso¢ whose name~ is/~ ~ subscribed to t~e within instrument and ~ange Coun~ ~Comm.~r~,~ acknowledged to me that he/she/~ executed his .......... ~ authorized capacity~ and that by his/~ signature(¢n the instrument the person~r the entity upon behalf of which the person~ acted, executed the instrument. WI~ESS my hand acd official seal. OPTIONAL Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: ~ ~ Corporate O~cer ~ Title(s): [] Padner -- ~ Limited (] General E] A~orney in Fact [~ Trustee E] Guardian or Conse~ator ~ Other: Signer Is Representing: CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of ~f4t. i~ ss. On ¢9"~" ~1~. ~ I, be fo re m e, ~ '~z-~ ,./~[~ ~/~ ~.1~ ~. '["~ ~1~ U--¢--~ a e and tie of O ce (e g. 'Jane Doe, Notary Public') personally appeared Name(s) of Signer(s) ~ personally known to me L; proved to me on the basis of satisfactory evidence to be the ,person(~ whose name(~ is/a'~ subscribed to the within instrument and acknowledged to me that he/she/they executed the same in h~s/her/tl~qr authorized capacity(~), and that by Me/her/tl:~eir signature(~) on the instrument the person¢~), or ~ the entity upon behalf of which the persont~.) I ~ LIZ GROMAN ~ acted, execute.d the instrument. - ~'-~*~ COMM, # 12eS?§t I \'~,a~?"J'W/ SAN~£GOC0~ief.¢ = WITNE~~icial seal. place Notaw Seal Above ;NA; ~ Signature of NogarY Public OPTI Though the informatio~ below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. TDi t~eS Co: i TP~ :°eno ~ fD oAclut amCe~~~~ Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer _I~I~NNA K, ~ONSEES Signer's Name: ~T~D -- iii [ ] Individual ~11~1-~~ Top of thurnb here [~] Corporate Officer--- Title(s): ti Padner--! I Limited iLJ General [ I Attorney in Fact E3 Trustee [;] Guardian or Conservator t~] Other: ' Signer Is Representing: . ~/¢d//~) List of Attachments Attachment A Legal Description of Property Attachment B Land Development Improvements Attachment C Open Space and Park IODs Attachment D Public Trail Improvements ATTACHMENT "A" Legal Description of Property Portions of Sections 21, 22, 27, and 28 Township 17 South, Range 1 West, San Bernardino Meridian, according to Official Plat thereof, all in the City of Chula Vista, the County of San Diego, State of California ATTACHMENT Land Development Improvements Improvements Improvements Bond Permit Drawing Cost Numbers Issue Numbers Date Grading, Drainage $9,840,324 11119518676 12/26/'00 00040-1 and Erosion Control 11119518568 to 00040-62 Landscape and $18,160,902 11119518584 12/26/00 Irrigation - Pending Grading Landscape and $1,949,601.83 '11133576105 Pending Irrigation Mount Miguel, Calle La Marina ATTACHMENT "C" Irrevocable Offers of Dedication of Open Space and Park Lots Attachment "C" consists of 10 pages of separately recorded instruments, which irrevocably offer Lots "A" and "0" for Open Space and other Public Purposes and Lots "M" and "GG" for Public Park Purposes Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This Instrument Benefits City Only. No fee is required. This Space for Recorder's Use Only APN(s) 585-111-03 C.V. File No. SM-001F IRREVOCABLE OFFER OF DEDICATION OF FEE' INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, NNP-TRIMARK SAN MIGUEL RANCH, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS OWNER represents that, as the owner(s) of herein-described real property, (in the case of multiple owners, collectively referred to as "GrantoK), Grantor hereby makes an Irrevocable Offer of Dedication of fee interest, pursuant to Section 7050 of the Government Code of the State of California, to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the hereinafter described real property for the following public purpose: OPEN SPACE AND OTHER PUBLIC PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: LOT "A" OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PHASES 1, 2, & 4 "A" MAP NO. t, PER MAP NO. RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. (Contains 24.956 Acres, more or less) This Offer of Dedication is made pursuant to Section 7050 of Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista; provided, however, that this offer of dedication shall automatically extinguish without the need to record any additional documents upon transfer of title to the Property to the United States of America pursuant to the terms of that certain Donation of Land Agreement by and between Grantor and the United States of America entered into on December 22, 2001. This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. SIGNATURE PAGE Signed this day of _ ,20 Grantor Signatures: NNP-TRIMARK SAN MIGUEL RANCH, LLC, Its: ~ '~c_,~_ (~d-,e_~-~,~ ~:~.~ VICE PRESI~ ~O Its: ..... ~ ~'~'~'~. ~C~R r (Not~ary Acknowledgement Required for Each Signatory) ., Nota~ Public, personally appeared~ personally known to me or ~rovod to .mo o,q ~he b~s~s of s3ti~acto~~ to be the pe~o~whose name~ is/~subscribed to the within inst~ment and acknowledged to me that he/s, ,~, ~ executed the same in his/~ authorized capaci~nd that by his/hud[huir signatures on the inst~ment, the person~ or the enti~ u~on behalf of which the person~acted, executed the inst~ment. WITNESS my hand and official seal. State of .~"~D°vu~~n ) State of Californis County of ~'~~ } County of San Diego ~¢~/4J~/~'O{, before me, On , Notaw Public, pemo~ ~ pemonally known to me ~ proved to me on the b~i~ nf ~ti~f~n~ evidence) to be the person(~ whose name(¢ is/~ subscribed to the within inst~ment and acknowledged to me that ~/she/t~y executed the same in ~/heflthsk authorized capaci~(~), and that by ~/her/t~ir signatur~ on the inst~ment, the pe~on(~), or the enti~ upon behalf of which the person~ acted, executed the inst~ment. WITNESS my hand and o~cial seal. Signature ~~ This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW, CITY CLERK By:. Date: Recording Requested by and Please Retum to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This Instrument Benefits City Only. No fee is required. This Space for Recorder's Use Only APN(s) 585-131-10, 595-030-27 C,V. File No. SM-001F IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, NNP-TRIMARK SAN MIGUEL RANCH, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS OWNER represents that, as the owner(s) of herein-described real p~:operty, (in the case of multiple owners, collectively referred to as "Grantor'J, Grantor hereby makes an Irrevocable Offer of Dedication of fee interest, pursuant to Section 7050 of the Government Code of the State of California, to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the hereinafter described real property for the following public purpose: OPEN SPACE AND OTHER PUBLIC PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: LOT "O" OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PHASES 1, 2, & 4 "A" MAP NO. 1, PER MAP NO. RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. (Contains 102.358 Acres, more or less) This Offer of Dedication is made pursuant to Section 7050 of Government Code of the State of California and may be accepted at any time by the City Clerk of the City of Chula Vista; provided, however, that this offer of dedication shall automatically extinguish without the need to record any additional documents upon transfer of title to the Property to the United States of America pursuant to the terms of that certain Donation of Land Agreement by and between Grantor and the United States of America entered into on December 22, 2001. However, any transfer of title shall reserve unto the City of Chula Vista the Public Trail Easement through the Property granted to and accepted by the City of Chula Vista on the San Miguel Ranch Phases 1, 2 and 4 "A" Map No. 1 (Map No. ~. This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. SIGNATURE PAGE Signed this day of ,20 Grantor Signatures: NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company By: ~ ~rCONNA K. M~ES Its: VICE PRESIDENT AND /' .(Notary Acknowledgement Required for Each Signatory) State of L¢,1~!1 '~L' ~' mt L-~ ) County Of (~i~ ~/[~r (~-~ ) personally known to me o~ pmv~c c~is'~v~d~) to be the pemo~ whose name[~is/~subscribed to the within inst~ment and acknowledged to me that he/~y executed the same in his/~r/th~r authorized capaci~and that by his/~r/th¢ sign~res on the instrument, the pemo~or the enti~ upon behalf of which the pemon(~acted, executed the inst~ment, WITNESS ~hand and official seal. , ~ ~ - -.;~;F; ~ -- [ t~t~;)¢~¢ State of California County of San Diego ) On o~,.~(~ ~/~1, before me, ~- ~.~/q,~ ; Notaw Public, pe~onally appeared pemonally known to me ~uved [u i,,~ u,, t',,~ bas~s of satlcf~tcw cvldc~ou) to be the pemon~whose name~) is/~ subscribed to the within inst~ment and acknowledged to me that ~/she/t~y executed the same in ~her/t~r authorized capaci~(~), and that by h~/her/t~ir signatur~ on the instrument, the person(~), or the enti~ upon behalf of which the pemon(~) acted, executed the instrument. WITNESS my h~~ Signature LIZ GROM~ ~ c~M.~1~761 ~ o ~ N~ARY ~B~F~ ~ ~j ~. ~o c~ T I~ ~c~.~,~ I This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW, CITY CLERK By: Date: Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This Instrument Benefits City Only. No fee is required. This Space .for Recorder's Use Only APN(s) 585-'131-10, 595-030-06 C,V, File No, SM-001F IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, NNP-TRIMARK SAN MIGUEL RANCH, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AS OWNER represents that, as the owner(s) of herein-described real property, (in the case of multiple owners, collectively referred to as "Granto¢), Grantor hereby makes an Irrevocable Offer of Dedication of fee interest, pursuant to Section 7050 of the Government Code of the State of California, to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the hereinafter described real property for the following public purpose: PUBLIC PARK PURPOSES The real property referred to above is situated in the City of Chula Vista, County of San Diego, State of California and is more particularly described as follows: LOTS "M" AND "GG" OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PHASES 1, 2, & 4 "A" MAP NO. 1, PER MAP NO. RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY. (Contains 19.050 Acres, more or less) This Offer of Dedication is made pursuant to Section 7050 of Government Code of the State of California and may be accepted at any time by the City of Chula Vista. This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor, its heirs, executors, administrators, successors and assigns. SIGNATURE PAGE Signed this day of ,20 Grantor Signatures: NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company . CHIEF FINANOIAL OFRO~ f (No,teary Acknowledgement Required for Each Signatory) State of (_ ~ I/'h!~ ~ ~-~ ) County of L)~ ~? ~ -,~ ) , Notaw Public, personally appeared pemonaH~ known to me or provcd t~e ba~tisf?toQ/~ to be the pemon~ whose name~ is(~ subscribed to the within inst~ment and acknowledged to me that he/~ executed the same in his/hor/th~ authorized capaci~and that by his/~Vth~ signatures on the inst~ment, the person~or the enti~ upon behalf of which the persoq~acted, executed the inst~ment. WITNES~hand and o~cial seal.~~~ ~e~t~of Stere of California ) County of San Diego .) On ~,-~'~/~'~t , before me, --~,, Nota~ Public, perso~ a~ ~[~ pemonally known to me ~ro~ to mc cn thc b=s~s of s~tisfecto~' cv~dcnce) to be the pemon(~ whose name(~ is/~ subscribed to the within instrument and acknowledged to me that ~/she/t~y executed the same in ~/her/~ authorized capaci~(i~), and that by ~her/th~i, signature( on the instrument, the pemon~), or the enti~ upon behalf of which the pemon(?) acted, executed the instrument. WITNESS my~ Signature - I~ L~ GRO~N I ~ ~ C~. ~ 12~761 ~ ~ ~ ~ NOTARY PUBLIC~F~ ~ This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. SUSAN BIGELOW, CITY CLERK By:. Date: ATTACHMENT "D" Public Trail Improvements $2,970,980.25 111274 Pending per City Approved 82674 N/A Wall, Fence and Trail Plans RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS LICENSE AND MAINTENANCE AGREEMENT BETWEEN NNP-TRIMARK SAN MIGUEL RANCH LLC AND THE CITY OF CHULA VISTA FOR THE MAINTENANCE OF PUBLIC LANDSCAPING AND DRAINAGE IMPROVEMENTS WITHIN A PORTION OF SAN MIGUEL RANCH PHASES 1, 2 AND 4 AND AUTHOR/ZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, in compliance with tentative map conditions of approval, the developer has fbrmed the San Miguel Ranch Master Association (MHOA) to maintain common area landscaping and drainage improvements within the San Miguel Ranch Project and the developer has requested the City allow the MHOA to be responsible for maintaining certain public landscaping and drainage improvements; and WHEREAS, initially, the developer will construct and maintain the landscaping and drainage improvements until acceptance by the City and then would transfer its obligations under the proposed agreement to the MHOA, which in turn may transfer said obligations to a sub- association or apartment project's owner (Transferee); and WHEREAS, staff' believes that the proposed agreement will guarantee the maintenance of the aforementioned public improvements and recommends Council approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a grant of ease~nents, license and maintenance agreement between NNP-Trimark San Miguel Ranch, LLC and the City of Chula Vista for the maintenance of public landscaping and drainage improvements within a portion of San Miguel Ranch Phases 1, 2 and 4, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt Director of Public Works City Attorney RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Clerk City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency for less than a fee interest for which no cash consideration has been paid or received. (ABOVE SPACE FOR RECORDER'S USE) GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT Map (DEDICATED EASEMENTS) This GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT ("Agreement") is made as of this __ day of _ ,200_, by and between the CITY OF CHULA VISTA, a municipal corporation ("City"), and NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ("NNP"). RECITALS A. This Agreement concerns and affects certain improvements with portions of the real property located in Chula Vista, California, more particularly described in Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part of a planned residential development project commonly known as "San Miguel Ranch.", Chula Vista Tract No. 99-04, being the subject of the City Council Resolution No. 2001- (the "City Resolution"). For purposes of this Agreement, the term "Project" sha~l refer to the overall San Miguel Ranch project, including, but not limited to the "Property." B. NNP is the Declarant under that certain Master Declaration of Restrictions For San Miguel Ranch Master Association filed for record on as Document 2001 - , Official Records of San Diego County, California (the "Master Declaration"). NNP has caused the formation of SAN MIGUEL RANCH MASTER ASSOCIATION, a California Nonprofit Mutual Benefit Corporation ("MHOA") to maintain certain areas in the Project. Furthermore, one or more sub-associations may be formed ("SHOA") for a particular project(s) within San Miguel Ranch, the purposes of which would include the maintenance of certain amenities within the project over which the SHOA has jurisdiction. -t- C. The Property is covered by the certain final map (the "Final Map") described on Exhibit "A" attached hereto and referenced in the title to this Agreement. D. In order for NNP to obtain the Final Map and for the City to have assurance that the maintenance of certain areas within the Project would be provided for, the City and NNP entered into a Supplemental Subdivision Improvement Agreement pursuant to the City Resolution, in which NNP agreed that maintenance of such areas shall be accomplished by the creation of a home owners association. Parcels "A" and "B" and "C" shown on Exhibit "B" attached hereto describe those particular areas which were dedicated to the public on the Final Map but which include landscaping and drainage improvements to be maintained bythe MHOA. The public areas to be maintained by the MHOA are collectively referred to as the "MHOA Maintained Public Areas." E. The City desires to grant to NNP easements for landscape maintenance purposes upon, over and across the MHOA Maintained Public Areas within portions of Parcels "A" and "B" of Exhibit "A" and a license for wall maintenance purposes within Parcel "C" of Exhibit "A" and as shown on Exhibit "B," in order to facilitate the obligations of NNP as set forth in Supplemental Subdivision Improvement Agreements, adopted pursuant to the City Resolution. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as set forth below. 1. Grant of Easements and License. The City hereby grants to NNP and its agents, successors and assigns, the following easements over Parcels "A" and "B" of Exhibit "A" and the following license for wall maintenance purposes within Parcel "C" of Exhibit "A": (i) Non-exclusive easements and rights-of-way over and across Parcels "A" and "B" of Exhibit "A" for the purpose of maintaining, repah:ing and replacing the following: (A) The landscaping within median and parkways in Mount Miguel Road shown and described on Exhibit "B" attached hereto; (B) The drainage and access improvements within the Maintenance and Access Easement adjacent to the detention basin outlet structure within lot N of CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PHASES 1, 2 & 4 "A" MAP NO. 1, shown and described on Exhibit "B" attached hereto; (ii) A non-exclusive license across lot M of CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PHASES 1,2 & 4 "A" MAP NO. 1, to maintain the retaining wall within lot M shown and described on Exhibit "B" attached hereto. This license is unilaterally revocable by the City. These grants are made without any warranties of any kind, express or implied, other than the warranty stated in Paragraph 13(f) below. 2. Maintenance Responsibilities. -2- (a) NNP to Initially Maintain. NNP hereby covenants and agrees, at its sole cost and expense, to maintain, repair and replace, or cause to be maintained, repaired or replaced, those improvements within the MHOA Maintained Public Areas which are described on Exhibit "C" attached hereto, at a level equal to or better than the level of maintenance set forth in the Section of the Master Declaration entitled "Level of Landscape Maintenance". For purposes of this Agreement, the term "Maintenance" or "Maintain" shall mean the maintenance, repair and replacement obligations described herein and on Exhibit "C" hereto and shall also include repair and replacement at no cost to the City of any City owned property that is damaged during performance of the maintenance responsibilities pursuant to this Agreement. Exhibit "C" also refers to the maintenance responsibilities of City. (b) Transfer to MHOA. Upon NNP's transfer of maintenance obligations to the MHOA, (i) the MHOA shall become obligated to perform the obligations so transferred, and (ii) subject to the City determining that the requirements of Paragraph 3 below have been satisfied, NNP shall be released from such obligation. (c) Transfer By MHOA. The MHOA shall have the right to transfer Maintenance obligations to a sub-association ("SHOA") or to the owner of an apartment project ("Transferee"). Upon the MHOA's transfer of Maintenance obligations to a Transferee, (i) the Transferee shall become obligated to perform the obligations so transferred, (ii) the MHOA shall retain the right to perform the Maintenance should the Transferee fail to do so, and (iii) the MHOA shall be released from the obligations so transferred subject to the City determining that the requirements of Paragraph 4 below have been satisfied. Although it is possible that Maintenance obligations might be transferred to an apartment owner, NNP does not believe it is likely that Maintenanoe obligations will be transferred to an apartment owner. 3. Assiqnment by NNP and Release of NNP (a) Assignment. Upon NNP's transfer of the Maintenance obligations to the MHOA, it is intended by the parties that the MHOA shall perform the Maintenance obligations either itself or by contractors. Such transfer wiil release NNP from its obligations only if all of the following occur: (i) MHOA Accepts Obligation. The MHOA has unconditionally accepted and assumed all of NNP's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of NNP under this Agreement. The assignment shall also have been approved by the appropriate governing body of the MHOA by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) MHOA's Master Declaration. The City has reviewed and approved the MHOA's recorded Master Declaration to confirm that said document contains appropriate maintenance, indemnity and insurance provisions. The City hereby -3- acknowledges that it has so approved the Master Declaration. This condition "(ii)" will apply to any further amendments which require City's consent pursuant to provisions of the Master Declaration or which would be contrary to the terms of this Agreement. (iii) MHOA Insurance. The MHOA procures and formally resolves to maintain at its sole cost and expense, commencing no later than the City's release of all of NNP's landscape maintenance bonds, a policy of public liability insurance which at least meets the requirements of Section 5.1 (a) of the Master Declaration which reads as follows: "(a) General Liabilitylnsurance. TheMaster Association shall obtain a comprehensive general liability and property damage insurance policy insuring the Master Association and the Owners against liability incident to ownership or use of the Master Association Property. The limits of such insurance shall not be less than $3 Million covering all claims for death, personal injury and property damage arising out df a single occurrence. The insurer issuing such insurance shall have rating by A.M. Best of "A, Class V" or better with no modified occurrences and as admitted by Best's Insurance Guide. Such insurance shall include the following additional provisions provided they are available on a commercially reasonable basis: (i) The City of Chula Vista shall be named as an additionally insured party to such insurance pursuant to the City's requirements the Master Association do so; (ii) The policy shall not-contain a cross-suit exclusion clause which would abrogate coverage should litigation ensue between insureds; (iii) The policy shall contain the following severability clause (or language which is substantially the same): "q'he coverage shall apply separately to each insured except with respect to the limits of liability'." The MHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obligations herein. (b) Release. When all conditions precedent in Paragraph 3(a) are fulfilled, NNP shall be released from its obligations under this Agreement, including its security and insurance requirements. NNP acknowledges that it has a contractual obligation to perform the terms and conditions of this Agreement until and unless released by the City from this Agreement. At least sixty (60) days prior to such transfer, NNP shall give a notice to the City of NNP's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 3(a). 4. Assignment by MHOA and Release of MHOA. (a) Assignment. Upon MHOA's transfer of the Maintenance obligations to a Transferee, it is intended by the parties that the Transferee shall perform the Maintenance obligations either itself or by contractors. Such transfer will release the MHOA from its obligations only if all of the following occur: (i) Transferee AccePts Obli(3ation. The Transferee has unconditionally accepted and assumed all of the MHOA's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of the MHOA under this Agreement. If the Transferee is an SHOA, the assignment shall also have been approved by the appropriate governing body of the SHOA by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) SHOA's Declaration of Restrictions. if the Transferee is an SHOA, the City has reviewed and approved the SHOA's recorded Declaration of Restrictions to confirm that said document contains appropriate maintenance and insurance provisions. (iii) SHOA Insurance. The Transferee procures and formally resolves to Maintain at its sole cost and expense, a policy of public liability insurance which meets the requirements set forth in Paragraph 3 (a) (iii) above. The SHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obligations herein. (b) Release. When all conditions precedent in Paragraph 4(a) are fulfilled, the MHOA shall be released from its obligations under this Agreement, including its security and insurance requirements. At least sixty (60) days prior to such transfer, MHOA shall give notice to the City of MHOA's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 4(a). 5. NNP's. Insurance. Until such time as the MHOA has obtained the general liability insurance required by Section 5.1 (a) of the Master Declaration, NNP hereby agrees to procure and maintain a policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than One Million Dollars ($1,000,000) combined single limit, at its sole cost and expense. -5- 6. Indemnity. NNP hereby indemnifies the City as set forth in Section 6.3 of the Master Declaration, which reads as follows: "6.3 Indemnity. The Declarant and Master Association, respectively, shall indemnify and hold the City, its officers, agents and employees harmless from any liability, cost or expense, including reasonably incurred attorneys' fees, which result from the Declarant's or the Master Association's respective failure to comply with the requirements of the Section above entitled "Continuing Obligation To Maintain Certain Public Areas". Neither the Declarant nor the Master Association shall have any liability under this Section by reason of (i) the other party's failure to maintain or (ii) any Transferee's failure to maintain. It is specifically intended that the City shall have the right to enforce this Section. This Section may not be amended without the written consent of the City Planning Director or City Attorney." 7. Indemnity If Transferee. The document whereby the MHOA transfers a Maintenance obligation to an SHOA or apartment owner shall be signed by both the MHOA and the Transferee and shall set forth an express assumption of Maintenance and other obligations hereunder and shall include the following indemnification provision: Indemnity. The [Transferee's name] shall indemnify and hold the City, its officers, agents and employees, harmless from any liability, cost or expense, including reasonably incurred attorneys' fees, which result from the Transferee's failure to comply with the requirements of the obligations transferred hereby to Transferee. Transferee shall not have any liability under this Indemnity by reason of another party's failure to maintain. It is specifically intended that the City shall have the right to enforce this Indemnity. This Indemnity may not be amended without the written consent of the City Planning Director or City Attorney. 8. A.qreement Applicable to Subsequent Owners. (a) Agreement Binding Upon Any Successive Parties. This Agreement shall be binding upon NNP and any successive Declarant under the Master Declaration. This Agreement shall be binding upon MHOA and any Transferees upon transfer of maintenance obligations to the MHOA or Transferee, respectively. This Agreement shall inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property. (b) Agreement Runs With the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns, and any successor-in-interest thereto. The City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit such covenants running with the land have been provided, without regard to whether the City has been, remained or are owners of any particular land or interest therein. If such -6- covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. 9. Governinq Law. This Agreement shall be governed and construed in accordance with the laws of the State of California. 10. Effective Date. The terms and conditions of this Agreement shall be effective as of the date this Agreement is recorded in the Official Records of the San Diego County Recorder's Office. 11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be original and all of which shall constitute one and the same document. 12. Recordina. The parties shall cause this Agreement to be recorded in the Official Records of the San Diego County Recorder's Office within thirty (30) days after this Agreement has been approved by the City Council. 13. Miscellaneous Provisions. (a) Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered and received when personally delivered to the party to whom it is directed or, in lieu thereof, when three (3) business days have elapsed following deposit in the United States mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change' such address for the purpose of this Paragraph by giving written notice of such change to the other party. If To City: CITY OF CHULA VISTA Department of Public Works/Engineering Division 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Engineer If To NNP: NNP-TRIMARK SAN MIGUEL RANCH, LLC The San Miguel Ranch Company 613 West Valley Parkway, Suite 270 Escondido, CA 92025 Attn: Mr. Bill Pennington -7- (b) Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. (c) Entire Agreement. This Agreement, together with any other written document referred to herein, embody the entire agreement and understanding between the parties regarding the subject matter hereof, and any and all prior or contemporaneous oral or written representations, agreements, understandings and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. (d) Recitals; Exhibits. Any recitals set forth above and any attached exhibits are incorporated by reference into this Agreement. (e) Compliance With Laws. In the performance of its obligations under this Agreement, NNP, its agents and employees, shall comply with any and all applicable federal, state and local rules, regulations, ordinances, policies, permits and approvals. (f) Authority of Signatories. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions and/or other actions have been taken so as to enable said signatory to enter into this Agreement. (g) Modification. This Agreement may not be modified, terminated or rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Official Records of the San Diego County Recorder's Office. (h) Severability. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to person or circumstance, shall not be affected thereby and each term, covenant or condition shall be valid and be enforced to the fullest extent permitted by law. (i) Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Agreement. -8- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first set forth above. CITY OF CHULA VISTA, a municipal corporation By: Mayor Attest: Susan Bigelow, City Clerk APPROVED AS TO FORM: By: City Attorney NNP~TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company Its DEREK c TH¢}~ STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) On ol-~'~ZL~ ,200 I , before me, ~..ID ~/~-~ ,, , Notary Public in and fo} said State, personally appeared ~0NNAI[MONSEES D~EK o. TNouAS personally known to me (or pr~wd to m~ on thc b~!: cf =ctlcfc:t=r~ cv~dc~co) to be the person(s~ whose name(s) ~/are subscribed to the within instrument and acknowledged to me that h~/they executed the same in ~r/their authorized capaci~(ies), and that by h~/their signature(s) on the instrument, the person(s), or the enti~ upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature ~ ~ . (Seal) STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) On ,200 , before me, Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the instrumen.t. WITNESS my hand and official seal. Signature (Seal) -10- EXHIBIT "A" Leqal Description Parcel A: MOUNT MIGUEL ROAD AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON Parcel B: THE MAINTENANCE AND ACCESS EASEMENT WITHIN LOT N AS DEDICATED ON CHULA VISTA TRACT NO. 99-04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. __ FILED iN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON Parcel C: LOT M (THE PUBLIC PARK) AS DEDICATED ON CHULA VISTA TRACT NO. 99-04, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. __ FILED IN THE OFFICE OF' THE COUNTY RECORDER OF SAN DIEGO COUNTY ON EXHI13IT (PARCEL CHULA VISTA TRACT NO. 99-04 MAINTENANCE AND ACCESS EASEMENT IN LOT &IAINTENANCE AND ACCESS EASE&lENT LOT "N" EXHIBIT 'B" (rARCE~ "C") CHULA VISTA TRACT NO. 99-04 ~YALL MAINTENANCE AREA IN LOT 'M' / IgOlO'El~l¢£ AREA / / / .... & ASSOC~T~S /' ~ ~024g~p~ Lot M EXHIBIT "C" Maintenance Responsibilities City of Chula Vista Area HOA Maintenance Maintenance Median and parkways (one Landscaping in parkways Maintenance of curb, gutter, side only) within Mount including irrigation, trimming sidewalks and pavement. Miguel Road. and pruning of trees, and maintenance and irrigation of turf areas. Maintenance And Access Clearance of debris, plant None Easement Within Lot N. materials, sedimentation and obstructions from easement area adjacent to detention basin; maintenance of blacktop and concrete pad within access easement area. The retaining wall within lot Maintenance, repair, and if None M. required, replacement of retaining wall. RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN OPTION AGREEMENT BETWEEN THE CITY AND NNP-TRIMARK PACIFIC, LLC, FOR THE SAN MIGUEL RANCH SECONDARY COMMUNITY PURPOSE FACILITY SITE CP-B, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, this Option Agreement is an agreement between the City of Chula Vista (City) and NNP-Tfimark Pacific, San Miguel LLC, a Delaware Limited Liability Company (Developer); and WHEREAS, Developer owns approximately 743.1 Acres of real property located within the City of Chula Vista known as the San Miguel Ranch (the "Project Site"); and WHEREAS, pursuant to Condition 112D of the approval by City of Tentative Subdivision Map-Chula Vista Tract 99-04, (approved 2/29/00 by Resolution 2000-068), Developer must grant to City an option to purchase certain real property within the project site consisting of a community purpose facility lot CP-B, as more specifically described in Attachment "A" of Exhibit 1, the Option Agreement; and WHEREAS this Option Agree~nent is required by said Tentative Subdivision Map to be executed prior to the approval of the first Final Subdivision Map for the Project (Final Map); NOW THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Option Agreement between the City and Developer, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is hereby authorized and directed to execute said Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by Robert Leiter, John l~aheny t~ Director of Planning and Building City Attorney Andy Campbell Director of Parks and Recreation J:\Attor~]cy\rcso\Option Ag~ecmcnt SMR OPTION AGREEMENT This Option Agreement (this "Agreement") is entered into as of ,2001 by and between NNP - Trimark San Miguel Ranch, LLC, a Delaware limited liability company ("Developer"), and the City of Chula Vista ("City"). Recitals: A. Developer owns approximately 743.1 gross acres of real property located within the City of Chula Vista (the "Project Site"); and B. Developer intends to subdivide the Project Site into various residential, commercial and other lots, including two community purpose facility lots (collectively, the "Project"); and C. Pursuant to Condition 112D of the approval by City of Tentative Subdivision Map Chula Vista Tract 99-04 (Resolution No. 2000-068) ("TM"), Developer must grant to City an option to purchase certain real property consisting of community purpose facility lot CP-B, as mom specifically described in attachment "A" hereto (the "Property"). Agreements: Now therefore, in consideration of the foregoing and the mutual covenants of the parties set forth in this Agreement, the parties agree as follows: 1. Grant of Option. City is hereby granted an option (the "Option") to purchase the Property for a purchase price to be determined pursuant to TM condition 112E at any time for so long as the property is a designated CPF site. 2. Exercise of Option. The Option shall be exercised by City giving Developer written notice (the "Option Notice"), and the sale shall be closed within ninety (90) days after the date of the Option Notice. Upon the closing of the sale, the purchase price shall be paid in full and Developer shall deliver to City fee simple title to the Property, which title shall be transferred by grant deed pursuant to escrow instructions and such other commercially reasonable terms upon which the parties may agree. Notwithstanding any other provision of this Agreement, Developer agrees that it will provide the Property free and clear of all liens and encumbrances other than (i) the deed restriction SD:DA PkAGR\SFD\51161588.5 072001 - 1 - described in TM Condition 112C; (ii) prorated non-delinquent real estate taxes, and (iii) title encumbrances which the City specifically approves. Developer further agrees that the Property is and will be, upon sale to City, free and clear of any environmental condition which would be a violation of any applicable federal, state or local law, ordinance or regulation relating to hazardous materials. 3. Excluded Sale. The foregoing provisions regarding the Option shall not apply in the event that (a) Developer sells the Property to a non-profit entity pursuant to TM Condition 112F, (b) Developer provides City with written notice of its intent to sell the Property at least ten (10) days prior to the execution of a purchase agreement for such sale, accompanied by a genuine and complete copy of such purchase agreement and sufficient information to enable City to determine the purchaser's intended use, and (c) City fails, within such ten (10) day period, to give written notice to Developer that City disapproves of the sale, which notice shall set forth in reasonable detail the basis for City's disapproval. The approval of City shall not be unreasonably withheld. 4. CiW's Obligations Regarding an Ex6hided Sale. In the event that City fails to disapprove ora sale as set forth in Section 3, City shall execute and deliver a quitclaim deed in the form of Exhibit "B" attached hereto, and shall take such further action as Developer may reasonably request in order to remove the Memorandum of Option Agreement (as defined below in Section 6) from the Official Records for the County of San Diego, Califomia. All such actions taken with respect to this Section 4 shall be at Developer's sole cost and expense. 5. Memorandum of Option. Upon execution of this Agreement, the parties shall execute and acknowledge a Memorandum of Option Agreement in the form attached hereto as Exhibit "C", (the "Memorandum of Option Agreement") which shall be recorded in the Official Records for the County of San Diego, California. 6. Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. SD:DAPV~GR\SFD\51 I61588~5 072001 7. Counting of Day.s. Whenever a time period set forth in this Agreement would otherwise expire on a Saturday, Sunday, or banking or federally recognized holiday, such time period shall be deemed extended to the next following day which is not one of the foregoing. 8. Attorneys' Fees. Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an mount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 9. Waiver. Failure of either party at any time to require performance of any provision of this Agreement shall not limit such party's right to enforce such provision, nor shall any waiver of any breach of any provision of this Agreement constitute a waiver of any succeeding breach of such provision or a waiver of such provision itself. 10. Notices. Notices under this Agreement shall be in writing and shall be effective two days after being deposited in the United States Mails, certified, return receipt requested, directed to the other party at the address set forth below, or to such other address as the party may indicate by written notice to the other party: SD:DAP\AOR\SFD\51161588.5 072001 -3- If to Developer: NNP - Trimark San Miguel Ranch, LLC 85 Argonaut, Suite 205 Aliso Viejo, CA 92656 Attention: Mr. Stephen E. Hester Telephone: (949) 465-1655 Telecopy: (949) 465-1660 and NNP - Trimark San Miguel Ranch, LLC 31248 Oak Crest Drive, Suite 150 Westlake Village, CA 91361 Attention: Mr. Clinton R. Stevenson, Jr. Telephone: (818) 706-9797 Telecopy: (818) 706-9777 and NNP - Trimark San Miguel Ranch, LLC c/o Newland National Partners, LP 9404 Genesee Avenue, Suite 230 La Jolla, CA 92037 Attention: Mr. Derek C. Thomas Telephone: (858) 455-7503 Fax: (858) 455-5368 (with copies to:) NNP - Trimark San Miguel Ranch, LLC c/o Newland National Partners, LP 9404 Genesee Avenue, Suite 230 La Jolla, CA 92037 Attention: Matra K. Guy, Esquire Telephone: (858) 455-7503 Fax: (858) 455-6142 SD:DAP~GR\SFD\51161588.5 072001 -4- and Sheppard, Mullin, Richter & Hampton LLP 501 West Broadway, Suite 1900 San Diego, CA 92101 Attention: Mr. Domenic C. Drago Telephone: (619) 338-6607 Fax: (619) 234-3815 If to City: David D. Rowlands, Jr. City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 11. Amendment. This Agreement may not be modified or amended except by the written agreement of the parties. No modification or amendment or attempted waiver of any provision of this Agreement shall be binding unless in writing and signed by the party to be bound. This Agreement may not be modified or amended orally. 12. Severabilitv. lfany term or provision of this Agreement or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of this Agreement and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term or provision of this Agreement shall be valid and enfomeable to the fullest extent permitted by law. 13. Inte~ation. This Agreement contains the entire agreement and understanding of the parties with respect to the option granted hereunder and supersedes all prior and contemporaneous agreements between them with respect to such option. 14. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. SD:DAP~AGR~SFD\51161588,5 072001 15. Assignment. City may not assign this Agreement, in whole or in part, without Developer's consent, which consent may be withheld by Developer in its absolute discretion. 16. Counterparts. This Agreement may be signed in counterparts, each of which will be deemed an original and all of which, when taken together, shall constitute one and the same document. 17. No Third Party Beneficiaries. This Agreement does not confer any rights or remedies upon any person other than the parties and their respective successors and permitted assigns. 18. Time of Essence. Time is of the essence of the parties' obligations under this Agreement. 19. Conflicts. Should there be a conflict between this Agreement and the TM for the Property, the provisions of the TM shall control. [SIGNATURE PAGE FOLLOWS] SD:DAP~AGR\SFD\51161588.5 072001 -6- IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above. Developer: NNP - TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company By: [Printe!d Name and Title] [Printed ~ame an~l~e] City: CITY OF CHULA VISTA By: Shirley Horton, MaYor Attest: City Clerk Approved as to form by: City Attorney SD:DAP\AGR\SFD\511615885 072001 -7- State of ) County of O'~)~ ~/) ) ) otary Public, personally appeared :,~8~ i/~ ~ , p y known to me or O proved to me on the bas~s of satisfactory emdence to be the person,~whose name~q?is/ar-e subscribed to the within instrument and acknowledged to me that he/she,,tthey executed the same in his/he, r41hek authorized capacity/.ie~, and that by his/her/g,.~h signatureC. Fon the instrument the person..(.s~, or the entity upon behalf of which the person,(,s~ acted, executed the instrument. WITNESS my hand and official seal. ~[~.,] Orong~Co~n~__ ~ ~~t4C[, [ ¢/~i-[', Notary Public State of ~k/I 4 ) ) Countyof ~ ~[-V_.6~ ) ,)~ personally known to me or ~ proved to me on the basis of satisfactory evidence to be the personO~) whose name~) is/a~ subscribed to the within instrument and acknowledged to me that Ja~/she/d'~y executed the same in t'fiq,/her/thek authorized capacity(i~s), and that by his/her/tl:t~h: signamre¢) on the instrument the person(v,), or the entity upon behalf of which the person~) acted, executed the instrument. WITNESS my hand and official seal. NOTARY PUB~FORN~A ~ SAN D.=e,O ~ - Notary Public MYCOmm Ex0. Apfll~,~OO~ I ' SD:DAP~,OR\SFD\51171660. I 101800 -3- SFD-61576 EXHIBIT A LEGAL DISCRIPTION Lot 13 of final map for San Miguel Ranch, Phase 1, 2 and 4 "A" Map No. 1 City of Chula Vista Tract No. 99-04 per map thereof number EXH~FRIT B FORM OF QUITCLAIM DEED [ATTACHED] SD:DAP\AGR\SFD\51161588.5 072001 -9- /¥~ RECORDING REQUESTED BY ANO WHEN RECORDED MAIL THIS DEED AND, UNLESS OTHERWISE SHOWN BELOW, MAiL TAX STATEMENT TO Name City & SPACE ABOVE THIS LINE FOR RECORDER'S USE c,-c t-,03,8-93 Quitclaim Deed THE UNDERSIGNED GRANTOR(s) DECLARE(s) DOCUMENTARY TRANSFER TAX IS $ [] __ unincorporated area ~] City of Parcel No. [] computed on full value of property conveyed, or [] computed on full value less value of liens or encumbrances remaining at time of sale, and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, hereby REMISE, RELEASE AND FOREVER QUITCLAIM to the following described real property in the county of . slate of California: Dated STATE OF CALIFORNIA COUNTY OF } S.S. On before me, a Notary Public in and for said County and State, personalty appeared personalty known to me (or proved to me on the basis of satisfactory evidence) to be the pemon(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacitylies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal Signature ~,~ ~ MAIL TAX STATEMENTS TO pARTY SHOWN ON FOLLOWING LINE; IF NO PARTY SHOWN, MAIL AS DIRECTED ABOVE EXHIBIT C MEMORANDUM OF OPTION AGREEMENT RECORDING REQUESTED BY AND WItEN RECORDED MAIL TO: NNP - Trimark San Miguel Ranch, LLC 85 Argonaut, Suite 205 Aliso Viejo, CA 92656 Attention: Mr. Stephen E. Hester THIS SPACE ABOVE FOR RECOKDER'S USE MEMORANDUM OF OPTION TO PURCHASE PROPERTY This Memorandum of Option to Purchas.e Property (this "Memorandum") is entered into as of ,2001 by and between the City of Chula Vista ("Optionor"), and NNP - TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ("Optionee"), regarding that certain real property described in Exhibit "A" attached hereto (the "Property"). Optionor and Optionee are parties to that certain Option Agreement dated as of __ ,2001 (the "Agreement") pursuant to which Optionor has granted to Optionee the exclusive right and sole option (the "Option") to purchase the Property on the terms and conditions set forth in the Agreement. The Option shall he exercisable for so long as the Property is a designated conm~unity purposes facility. This Memorandum is being recorded to give notice to the public that the Property is subject to the provisions of the Agreement and of the need to inquire into all of the temps and conditions of the Agreement, which terms and conditions are hereby incorporated by reference into this Memorandum. This Memorandum is intended to summarize some of the provisions of the Agreement, but in no way changes, modifies or otherwise affects any provision of the Agreement. In the event of any conflict between this Memorandum and the Agreement, the provisions of the Option Agreement shall prevail. [SIGNATURE PAGE FOLLOWS] SD:DAP~AGR\SFD\51161588.5 072001 -10- 1N WITNESS WHEREOF, Optioner and Optionee have executed this Memorandum as of the date first above written. CITY OF CHULA VISTA By: City Manager Attest: City Clerk Approved as to form by City Attorney NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company By:_ [Printed Name and Title] By:_ [Printed Name and Title] If~, Council Agenda Statement CI1Y OF CHUIA VISfA Item No. 16 Meeting Date 8/7/01 ITEM TITLE: Resolution Approving an Encroachment Permit for Global Crossing Local Services Inc., To Install and Operate a Fiber Optic Cable System Comprised of One Bundle of Five Conduits and Related Equipment Through the City Via Fourth Avenue, Main Street, Broadway and Beyer Boulevard, and to Approve a Conduit Agreement that Transfers Ownership of One of the Five Conduits to the City. ~ SUBMITTED BY: John Lippitt, Director of Public Works Michael T. Meacham, Special Operations Manager~ REVIEWED BY: David D. Rowlands, J~/~ity Manager (4/5ths Vote Yes No X ) BACKGROUND: Last fall Global Crossing approached Staff with a request to install international fiber optic lines through Chula Vista. Staff recognized the application as an opportunity to assist regional eftbrts to fund a portion of the South Bay inter-jurisdictional traffic management system, the "South Bay Interconnect Project," and to assist the applicant with prompt entry in to the right-of-way (ROW) through multiple jurisdictions. The City's Traffic Division presented the applicant to the City of San Diego and National City and negotiations began last November to provide Global Crossing with a preferred route through the South Bay in exchange for consideration that would include adding a single conduit for the City's own use. The Conduit was to be capable of containing the fibers necessary for South Bay Cities, Caltrans and other traffic related agencies to cormect to a single traffic management network. The remaining capacity of the conduit could then be used by local jurisdictions for local USES. Staff has subsequently met with the South Bay Interconnect Project Cities and those cities have decided to develop their own agreement with Global Crossing. Chula Vista's agreement with Global Crossing includes ownership of one of the five conduits in Chula Vista, "easy access," to the conduit at (29) twenty-nine city facilities along the route, full cost recovery for Engineering to process the Encroachment Permit and a one time payment of $41,000. Staff expects to return to Council in the near future with an analysis of the costs and benefits, and funding sources to complete the traffic management, telecom and data components of completing a fiber connection for city use along the route. The City will be working closely with the South Bay Interconnect Project Cities to assure that the project utilizes every opportunity to reduce costs and provide the maximum benefit. RECOMMENDATION: Staff recommends that the City Council adopt the resolution approving the Eocroachment Permit with Global Crossing to install conduit and fiber optic cables in the right-of-way and the Conduit Agreement that transfers ownership of one conduit to the City. BOARD AND COMMISION RECOMMENDATION: No Board or Commissions were asked to review this item. DISCUSSION: The proposed permit authorizes Global Crossing to install an underground, multiple conduit fiber optic cable telecommunications system, approximately 26,000 feet in length, consisting of five (5) 1-1/2 inch High Density Polyethylene ("HDPE") conduits (including one conduit exclusively for City's use) and associated fiber optic cables, manholes and other below grade equipment needed to obtain access to the conduit and fiber. The Global Crossing Project will use a directional boring method that will minimize the traffic and structural impacts to the right of way as compared to trenching. The boring operation does require "boring pits," that penetrate the asphalt at the surface, approximately every 500 feet. The boring and eventually the conduit and fiber will run underground at approximately eight to twelve feet except where they approach the surface at approximately 45 degree angels for access through manholes. Manholes and boring pits are collocated wherever possible to reduce cost and impact to the street surface. Global Crossing will also install access facilities (such as manholes and handholes) and associated below grade equipment, that will allow them to pull fiber optic cable through the conduit in the public right-of-way along the Project Route. This Permit also authorizes Global Crossing to install one additional l-l/2 inch HDPE conduit along the Project Route for the City's exclusive use in addition to the four conduits proposed. The conduit will be deeded to the City upon project completion. The City conduit will be co-located in the same boring channel except where they are separated near the surface at City facilities for "easy access" by the City. The "easy access" will be located in some of the same "boring pits," to minimize impact to the streets surface. The City will need to trench and install conduit laterals (known as sweeps) in up to (29) twenty-nine locations along the (5) five-mile route to connect to (10) ten City facilities and (19) nineteen traffic signal controllers along the route at a later date. The Encroachment Permit shall expire 10 years from date of issuance. The fifth conduit remains the property of the City. Global Crossing bas paid the City a $5,000 deposit towards full cost recovery for all City Engineer staff time related to plan review, permit processing and inspection. In addition to processing and inspection costs, Global Crossing will pay the City a one-time fee in the amount of $41,000 for the 10- year term of this Permit for Global Crossing's use and occupancy of the City's right of way. Global Crossing will pay that fee before the Construction Permit is issued. Global Crossing will also meet all local state and Federal regulations including but not limited to a project performance bond and general liability insurance. Staff is confidant that the conditions applied to the project will require Global Crossing to properly repair the streets initially. However, there is significant disagreement between local jurisdictions charged with maintaining the right-of-way and telecom providers regarding the appropriate reimbursement for potential long-term impacts to the right-of-way by telecom projects and compensation for use of the right-of-way. This permit was challenging for staff to process. The federal and state laws governing a local jurisdiction's rights to regulate telecommunications facilities of this type are ambiguous and evolving under judicial interpretation. This led to strong disagreements at times between the applicant and City staff over the appropriate terms for permit issuance particularly with respect to appropriate amounts of compensation for use of City rights-of-way. More applications of this type are expected in the future. To better deal with this, staff is working on a comprehensive telecommunications ordinance that is designed to clarify and facilitate the terms for City processing of permits and approval for the various types of telecommunications facilities. Copies of the Encroachment Permit which condition Global Crossing's access to right-of-way, and the Conduit Agreement which sets forth the terms for the City's use of its 1-1/2 inch conduit, are attached as Exhibits A and B, respectively. Staffhas determined that this project qualifies for a Class l(c) categorical exemption as a minor expansion of existing facilities under CEQA Guidelines Section 15301. FISCAL IMPACT: The Encroachment Agreement requires the applicant to pay the full cost recovery rate for the Engineering Divisions work on the application and make an additional payment to the City of $41,000 for use of the fight-of-way. The Applicant is also providing the City with a single 1.5 inch conduit at no charge. There will be no direct or immediate impact to the general fund as a result of Council approving the Encroachment Agreement or the Conduit Agreement other than the payments described above. However, the City may incur additional costs due to a shortened useful life of the pavement and streets that have been trenched or bored by the applicant. Additionally, when the City chooses to use the City there will be additional costs for installing the fiber and appurtenances necessary to connect City facilities to the traffic management, telephone and/or data systems. H:\attomey\global crossing al 13 RESOLUTION HO.2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ENCROACHMENT PERMIT FOR GLOBAL CROSSING LOCAL SERVICES INC. TO INSTALL AND OPER3kTE A FIBER OPTIC CABLE SYSTEM COMPRISED OF ONE BUNDLE OF FIVE CONDUITS AND RELATED EQUIPMENT THROUGH THE CITY VIA FOURTH AVENUE, MAIN STREET, BROADWAY AND BEYER BOULEVARD, AND APPROVING A CONDUIT AGREEMENT THAT TR3kNSFERS OWNERSHIP OF ONE OF THE FIVE CONDUITS TO THE CITY, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Global Crossing has applied with the City for permission to install conduit fiber optic lines and related equipment through the City of Chula Vista along the route attached hereto as Exhibit A (the "Project"); and WHEREAS, staff is recommending approval of the Project in the form of an Encroachment Permit and Conduit Agreement attached hereto as Exhibits B and C, respectively; and WHEREAS, the terms and conditions of the Encroachment Permit and Conduit Agreement are consistent with all applicable federal, state and local laws; and WHEREAS, staff has determined that the Project qualifies for a Class l(c) categorical exemption under CEQA Guidelines Section 15301. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve an Encroachment Permit and Conduit Agreement with Global Crossing Local Services Inc., in substantially the form presented with such minor modifications as may be required or approved by the City Attorney. BE IT FURTHER RESOLVED that the City Engineer is authorized · to execute the Encroachment Permit and the Mayor of the City of Chula Vista is hereby authorized and directed to execute the Conduit Agreement in final forms approved by the City Attorney, copies of which shall be kept file with the City Clerk. Presented by Approved as to form by Michael Meacham Special Operations Manager J: ~At t orney\RESO~Global Crossing 2 ENCROACHMENT PERMIT This encroachment permit ("Permit"), dated as of August 7, 2001, is issued to Global Crossing Local Services, Inc. ("Permittee") by the City of Chula Vista ("City") under the following terms and conditions: 1. Permittee is hereby authorized by the City to install for Permittee's sole and exclusive use, certain improvements in the City's rights-of-way, to wit: an underground, multiple conduit fiber optic cable telecommunications system, approximately 26,000 feet in length, consisting of four (4) 1-1/2 inch High Density Polyethylene ("HDPE") conduits and associated fiber optic cables and equipment (the "lnstallations" or "Project"), the route of which (the "Project Route") is detailed on the map attached hereto as "Exhibit A." The Project will include the installation of conduit, primarily through a directional boring operation, the installation of access facilities (such as manholes and handholes) and associated equipment, and the pulling of fiber optic cable through the conduit in the streets and public rights-of-way along the Project Route. The Project will be constructed in accordance with plans and specifications approved by the City Engineer as more particularly described on "Exhibit B" attached hereto. Any additional improvements or equipment not identified on "Exhibit B" shall be subject to additional City review and approval. This Permit also authorizes Permittee to install along the Project Route one additional (1) 1-1/2 inch HDPE conduit for the City's exclusive use, referred to as the City Conduit and described in more detail in that certain Conduit Agreement between Permittee and City, dated as of the date hereof(the "Conduit Agreement"). This Permit shall expire 10 years from date of issuance. 2. Permittee is authorized and agrees to place, maintain, and, when applicable by reason of public necessity, relocate its Installations in conformance with Chula Vista Municipal Code (the "Municipal Code") Chapter 12.28 [Encroachment Permit Ordinance] and any subsequent amendments thereto, as well as any other applicable local, state or federal rules or regulations. Permittee warrants that any trench, backfill, pavement restoration or other work performed by it or its employees, agents and contractors relating to the Installations in, on, under, or to the City streets or public rights-of-way shall be free from all defects due to faulty materials or workmanship for the remaining life of the public street or right-of-way surface existing at the time of the original excavation or until such excavated area is resurfaced. Permittee further agrees to repair or remove and replace any and all such backfill, pavement restoration or other defective work, together with any other areas affected by such removal or replacement, without any expense whatsoever to City. In the event Permittee fails to diligently comply with the above-mentioned requirements, this permit may be revoked, a stop work order issued and/or legal action instigated pursuant to the provisions of the Municipal Code. 3. Permittee agrees to comply with all applicable federal, state, and local laws and regulations or other requirements of the City Engineer, authorized by the Municipal Code, tt~roughout the duration of this Permit. Permittee further recognizes and understands that this permit may create a possessory interest subject to property taxation and agrees that any possessory interest tax ~vhich may be levied shall be the sole obligation of Permittee, and that payment for such taxes and assessments will not reduce any payment obligation to the City. 4. Permittee shall obtain a bonded Construction Permit subject to the submittal and approval requirements of the City Engineer prescribed and authorized by the Municipal Code prior to beginning any work within the public streets or right-of-way and must comply with ail other applicable laws and regulations. Permittee shall also submit annual reports to the City Engineer in a format and containing any information required by the City Engineer. 5. At all times during the term of this permit, a certificate of insurance indicating the following coverages shall be on file ~vith the City: a. Commercial General Liability - For personal injury, bodily injury and property damage, providing coverage to a combined single limit of $1 million per occurrence, subject to an annual aggregate of $10 million for general liability, completed operations and personal injury other than bodily injury. Contractual liability shall include coverage of tort liability of another party to pay for bodily injury or property damage to a third person or organization. Contractual liability limitation endorsement is not acceptable. The per-occurrence limits required may be achieved by combining layers of excess or umbrella insurance with underlying Commercial General Liability Coverage, provided that the sum of the limits of all policies meet or exceed the required limits. The City shall be named an additional insured. b. Commercial Automobile Liability -For all of Permittee's vehicles, including owned, hired and non-owned vehicles, automobile insurance for bodily injury and property damage providing coverage to a combined single limit of $1 million per occurrence. Insurance certificate shall reflect coverage for any vehicle and the City shall be named as an additional insured. c. Worker's Compensation - For all employees, a minimum of $500,000.00 of employers liability coverage, with an endorsement that the insurer waives the fight of subrogation against the City and its respective elected officials, officers, employees, agents and representatives. 6. Permittee agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers and employees, from and against the following claims asserted, or liability established for damages or injuries to any person or property arising from the Project or from the maintenance or use of the Installations by or on behalf of persons or entities other than the City, its agents, officers and employees: claims made by Permittee's employees, agents, or officers, or judgments arising directly or indirectly out of obligations, work or services involving the Project and the installations; claims that arise from, are connected with, or are caused or claimed to be caused by the acts or omissions of Permittee, Permittee's agents, officers and employees; claims or liabilities arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the negligence of Permittee, its employees, agents or officers, or any third party. Permittee's duty to defend, indemnify, protect and hold harmless shall not include any claims or liabilities arising from the established sole negligence or sole willful misconduct of the City, its agents, officers or employees, or that arise out of or relate to the maintenance or use of the City Conduit or the City Sweeps described in the Conduit Agreement, or that arise out of or relate to the temporary restoration of the Access Point Locations to the extent the City elects to proceed with the option provided in Exhibit A to the Conduit Agreement. 7. Permittee further agrees that this indemnification, and the duty to defend the City, require Permittee to pay any costs the City incurs that are associated with enforcing the indemnification provision, and defending any claims arising from work performed pursuant to or related to this Permit. If the City chooses at its own election to conduct its own defense, participate in its defense or obtain independent legal counsel in defense of any claim related to this Permit, Permittee agrees to pay the reasonable value of attorneys' fees and all of the City's COSTS. 8. Permittee agrees to pay the City for City Engineer staff time related to plan review, permit processing and inspection (the "Processing and Review Fee") at City's current full cost recovery rates. Such Processing and Review Fee shall be drawn against a $5000 deposit Global Crossing has on deposit with the City. In the event.that the cost of City Engineer staff time exceeds the $5,000 deposit, within 5 days after written notice from the City Engineer, Permittee agrees to deposit such additional funds as the City Engineer deems reasonably necessary to reimburse the City for additional City Engineer staff time required to complete the inspection of the Project. Any unused balance shall be returned Global Crossing within 10 days after City's final inspection. In addition to the Processing and Review Fee, Global Crossing shall pay the City prior to City's issuance of the Construction permit, a one-time fee in the amount of $41,000 for the I O-year term of this Permit for Global Crossing's use and occupancy of the City's right of way. 9. General Terms and Conditions. a. The terms and conditions of this Permit shall run with the Installations and shall be binding upon any and all successors and assigns of Permittee. b. Permittee shall enter into and abide by the terms of the Conduit Agreement in the form approved by the City Council concurrently herewith. c. Future Access to the Project through any manhole or by excavation in City right-of-way, shall require prior City approval of a traffic management plan and, where excavation is required, a construction permit. Global Crossing shall notify the City prior to subleasing the use of conduit or fiber to any third party. 10. The foregoing terms and conditions of the Permit are accepted by the Permittee: GLOBAL CROSSING LOCAL SERVICES, 1NC. 180 South Clinton Avenue Rochester, NY 14646 By: Name: Title of Authorized Representative: Phone Number: Fax Number: Email address: APPROVED For the City: By: J:\attomcy\agTec\Global Crossing EncIoachment Permit (redline) -4q EXHIBIT A Approved Route EXHIBIT B Approved Plans and Specifications [To Be Inserted] !i CONDUIT AGREEMENT BETWEEN GLOBAL CROSSING LOCAL SERVICES, INC. AND THE CITY OF CHULA VISTA, CA This Conduit Agreement (the "Agreement") is made as of the I st day of August 2001 between Global Crossing Local Services, Inc. ("Global Crossing"), a corporation organized and existing under the laws of Michigan, and having its principal place of business in Rochester, New York, and the City of Chula Vista, California, a California municipality (the "City"). WHEREAS, Global Crossing is constructing a multiple conduit, fiber optic telecommunications system within the City consisting of four (4) 1-1/2 inch High Density Polyethylene ("HDPE") conduits and associated fiber optic cables (the "Project") along a route within the City (the "Project Route"), as specified in more detail in that certain Encroachment Permit to be issued by the City to Global Crossing authorizing installation of the Project within City rights-of-way; WHEREAS, the City has a need along the Project Route for a single HDPE conduit for internal and joint goverrm~ental uses; WHEREAS, Global Crossing is agreeable to installing along the Project Route, in addition to the Project conduit, one additional (1) 1-1/2 inch HDPE conduit for the City's exclusive or joint governmental use (the "City Conduit"), and to transferring to the City title to the City Conduit upon completion of construction of the Project and the City Conduit, and Global Crossing's acceptance of the Project from its Contractor; WHEREAS, the City has identified traffic signals, city buildings and other city facilities within the City along or adjacent to the Project Route (the "City Facilities") that it seeks to connect to the City Conduit upon completion of the Project through the construction, at the City's sole cost and expense, of lateral HDPE sweeps between the City Conduit and the City Facilities (the "City Sweeps"); WHEREAS, the City has asked Global Crossing to use the locations of certain Project borepits as the points where the City Conduit will be separated from the Project Conduit and where the City Conduit can be accessed for the construction of the City Sweeps (the "Access Point Locations"), and to otherwise install the City Conduit and to coordinate with the City so as to facilitate the City's timely access to the City Conduit for the construction of the City Sweeps in the manner specified herein; and WHEREAS, Global Crossing is agreeable to providing the City Conduit to the City and so proceeding in the manner specified herein; NOW, THEREFORE, in consideration of the premises and for other good and valuable considerations, receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Global Crossing shall install the City Conduit using the same HDPE conduit as it uses for the Project in accordance with the plans and specifications attached hereto as "Exhibit A". Upon the final acceptance of and assumption of title in the Project and City Conduit from its contractor, Global Crossing shall convey to the City at no cost to the City good and clear title to the City Conduit, free and clear of all liens and encumbrances. Such transfer of title shall be evidenced by a bill of sale or such other document as the parties may reasonably agree. 2. At each Access Point Location, Global Crossing agrees to do the following: (a) Separate the City Conduit from the Project conduit and, unless otherwise directed by City staff, place the City Conduit toward the curbside of the Project; (b) Raise the City Conduit to a depth of between two and three feet at the midpoint of the respective Project bore pit; and (c) Bend the City Conduit at the entry and departure of the Project bore pits at Access Point Locations at an angle of less than 45 degrees. 3. In addition to the foregoing, the City shall have the option of requesting that Global Crossing install the City Conduit at the Access Point Locations in accordance with the specifications set forth in "Exhibit B", hereto, provided that upon installation by Global Crossing of the Cold Patches described in "Exhibit B" over the Access Point Locations, it shall be the City's responsibility, at its sole cost and expense, to properly maintain each such Cold Patch. To the extent the City elects to proceed under the option set forth in "Exhibit B", and has completed installation of a City Sweep at one or more Access Point Locations prior to Global Crossing's permanent restoration at such locations. Global Crossing shall permanently restore such Access Point Locations, provided that in the event the City has not completed construction of the City Sweeps at any Access Point Location upon Global Crossing's installation of fiber optic cable in the Project Conduit, Global Crossing reserves the right, at that time, to complete restoration of the Access Point Location at its sole cost and expense. In no event shall Global Crossing bear any responsibility or cost for restoration activities associated with construction of a City Sweep after it has completed its restoration activities at and around the corresponding Access Point. 4. Global Crossing agrees, to exemise best efforts to locate each Project borepit that will serve as an Access Point Location, to minimize the distance from such borepit to the City Facility tc~ be tied into the City Conduit at that Access Point Location, taking into account countervailing Project considerations, including Project design and the location of other utilities. Prior to beginning construction at a particular bore bit that is to serve as an Access Point Location, Global Crossing will provide City staff with the location of that bore pit. City staff may request Global Crossing to change the location along the Project Route of a particular bore pit that will serve as an Access Point Location based on its proximity to the City Facility being tied-in from that location. Global Crossing will use reasonable efforts to accommodate such a request, provided the 2 / distance involved shall not exceed one hundred (100) feet. Global Crossing shall also have no obligation to delay construction of the Project pending the City's review of the location of particular bore pits that will serve as Access Point Locations. 5. Global Crossing understands that the City may seek to construct the City Sweeps immediately upon completion of installation of the Project Conduit and City Conduit, and agrees to use reasonable efforts in order to facilitate coordination by the City of its construction of the City Sweeps with construction of the Project, provided that such coordination will not delay construction of the Project. 6. In the event that the City elects not to proceed with the option for construction of the City Conduit at Access Point locations described in Exhibit A, Global Crossing will provide and install at a three-foot depth a 3M EMS Ball Marker at each Access Point Location, provided that Global Crossing shall have no obligation to provide more than 30 such Ball Markers. Each Access Point Location shall be marked with red paint on the pavement and at the curb at a 90° angle after completion of installation of the Project and the City Conduit. The mark shall designate the letters "CV" at each location or such other letters as the City may request. 7. The City will indemnify, hold harmless, and defend Global Crossing and Global Crossing's subsidiaries, affiliates, officers, directors, agents, employees, independent contractors, subcontractors, and representatives (collectively the "Indemnified Parties") from any and all actions, causes of action, suits, proceedings, claims, demands, judgments, bona fide compromises or settlements, penalties, damages, losses, liabilities, costs, and expenses (including reasonable attorney fees and costs), arising out of or relating to any direct claim or third party claim or allegation arising out of or related to the maintenance or use of the City Conduit or the City Sweeps, or arising out of or related to the temporary restoration of the Access Point Locations to the extent the City elects to proceed with the option provided in Exhibit A, unless arising out of a negligent act or omission of Global Crossing or its officers, agents or employees. With respect to the foregoing indemnity, the City shall defend and hold harmless all of the Indemnified Parties and each of them, at no cost or expense to them whatsoever, including but not limited to attorneys' fees and court costs. The City will provide Global Crossing with reasonably prompt notice in writing of any claim to which this Section relates. 8. Each Project manhole and other access facility associated with the Project shall be for Global Crossing's sole and exclusive use, and nothing herein shall be deemed to provide the City with any right of access, use rights, or any other right with respect to Project manholes and other access facilities. 9. The City agrees that the City Conduit will be accessed exclusively at Access Point Locations, unless Global Crossing and the City mutually agree on the process for accessing additional locations along the Project Route at which the City Conduit may be accessed. To the extent the City determines to obtain access to the City Conduit at a point along the Project Route other than at an Access Point Location, City 3 agrees to provide Global Crossing with prior notification before commencing such work, to enter into a reasonable agreement with Global Crossing related to protecting the Project from any damage for destruction as a result of such City access to permit Global Crossing to designate a representative to observe the work on-site. I0. Global Crossing agrees that the City Conduit will be installed by its contractor in a workmanlike manner consistent with existing industry standards. In addition, Global Crossing agrees to transfer to the City or assist in the transfer to the City of any applicable manufacturer's warranties pertaining to the City Conduit, and for this limited purpose, City shall be deemed to be a "purchaser" with respect to transfers under such warranties. 11. EXCEPT WITH RESPECT TO THE WORKMANLIKE INSTALLATION CONSISTENT WITH INDUSTRY STANDARDS OF THE CITY CONDUIT BY GLOBAL CROSSING'S CONTRACTORS, GLOBAL CROSS1NG MAKES NO OTHER WARRANTIES, REPRESENTATIONS OR AGREEMENTS, EXPRESS OR IMPLIED, WITH RESPECT TO THE CITY CONDUIT, INCLUDING ANY WARRANTY OF MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE OR USE, AND ALL SUCH WARRANTIES ARE EXPRESSLY DISCLAIMED. 12. This Agreement supercedes all prior oral or written understandings between the parties and, together with the terms and conditions of the Encroachment Permit being issued by City concurrently herewith, constitutes the entire and complete agreement of the parties with respect to the subject matter herein. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first written above. CITY OF CHULA VISTA, CA GLOBAL CROSSING LOCAL SERVICES, INC. By: By: Name: Name: Title: Title: J:\attomcy\agree\global crossing conduit agreement 4 EXHIBIT A ]Insert Cross-Section Detail of City. Conduit from Approved Plans and Specs] EXHIBIT A Cross-Section Detail of City Conduit Plans and Specifications EXHIBIT B At the City's option, at each Access Point Location, the City Conduit will be cut and capped. The two ends will then be swept toward the side of the excavation closest to the future tie-in point with the City sweep. The pit will be backfilled with slurry and permanently restored except for a small area (approx. I 'xl') around the ends of the City Conduit. In that area, the excavation will be backfilled with sand and covered with a temporary cold patch pending completion of construction of the City sweep tied-in to that location. The diagram below depicts this option: 5 - 1.5" HDPE Condnit Backbone (4 Project Condnits and I City Outline of bore pit excavation. Conduit). This area will be backfilled with concrete mix. 3M EMS Marker 4 - 1.5" HDPE Ball Placed at ends Project Conduits. of conduit. A I 'xl' area around the duct can be backfilled with sand and covered with a temporary cold patch. 1 -1.5" HDPE City Conduit. This conduit is 5 - 1.5" HDPE Conduit turned to the edge of the Backbone (4 Project bore pit nearest the future Conduits and I City Conduit) tie-in point and capped. 6 i (0 -------- ffi -July 31st, 2001 MEMO TO: City Clerk FROM: Patty Wesp SUBJECT: COMMISSION RA TIFICA TION Mayor Horton has asked that the following be placed under Mayor's Report for the next Council meeting: Ratification of Appointment to the Economic Dev Commission Ramin Moshiri Thank You, Cc: Mayor Horton Mary Donnelly Armando Buelna hw '8/7/0\ CC~. C) lé July 31st, 2001 ~C MEMO TO: City Clerk FROM: Patty Wesp SUBJECT: COMMISSION RA TIFICA TION Mayor Horton has asked that the following be placed under Mayor's Report for the next Council meeting: Ratification of Appointment to the Cultural Arts Commission Thomas Brewer Thank You, Cc: Mayor Horton Ric Todd Armando Buelna ~ S/l/1» \ C c.. ""'~. /76 ---.-