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HomeMy WebLinkAbout2008/08/05 Item 4 ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT ~(ff:. CITY OF -~ (HULA VISTA Item No.: '7 Meeting Date: 8/05/08 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS, APPROVING THE FIRST AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA, MARION B. BORG ENVIRONMENTAL CONSULTING AND MCMILLIN OTAY RANCH, LLC, FOR MANAGING AND PROCESSING OF THE ENVIRONMENTAL IMP ACT REPORT (EIR) FOR THE EASTERN URBAN CENTER (EUC) SECTIONAL PLANNING AREA (SPA) PLAN AND AUTHORIZNG THE MAYOR TO EXECUTE THE AGREEMENT. ACTING PLANN~N~?/~Rf)r.OR >>Jl,:).J::- CITY MANAGER t~VY- 4/5THS VOTE: YES NO X BACKGROUND The item before the City Council is a request to approve the First Amendment to an existing contract with Marion B. Borg Environmental Consulting for environmental consulting services to extend the contract for an 12-month period from July 2008 through June 2009, to complete work in preparation and processing of the Eastern Urban Center project. The First Amendment is for an additional amount not to exceed $ 78,000, bring the total contract amount to $ 154,000. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only the approval of a contract for consulting services. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA, and no environmental review is necessary. 4-1 Item No.:~ Meeting Date: 8/05/08 Page 2 of3 RECOMMENDATION Adopt the Resolution waiving the formal consultant selection process, and approve the First Amendment to the three-party agreement between City of Chula Vista, Marion B. Borg Environmental Consulting and McMillin Otay Ranch LLC. BOARDS/COMMISSION RECOMMENDATION: None. DISCUSSION Marion B. Borg has served as the Environmental Project Manager for the Eastern Urban Center (EUC) project under an existing 3-party agreement for the past 18 months. The duration of that 3-party agreement was expected to be an adequate timeframe to track along with the processing of the development application for the EUC. The complex nature of the EUC project has necessitated an extension to the project's overall processing schedule. In order to provide continuing environmental project management for the EUC, it has become necessary to amend the duration of that contract. The amendment represents an additional $ 78,000 of services to accommodate approximately 20 hours of work effort per week for an additional 12 months (July 1, 2008 through June 30, 2009). Since approval of the original 3-party agreement, the consultant's hourly rate has increased from $ 95.00 to $ 100.00 and the mileage reimbursement allowance has increased from $ 0.40 per mile to $ 0.49 per mile. Approval of the amendment would reflect a total fee for services of $ 154,000 plus applicable reimbursables. Pursuant to City Council Resolution No. 2006-276 (Conflict of Interest Code and Designating Filers for Purposes of AB 1234) this 3-party agreement amendment includes an update to applicable disclosure categories for the consultant. For the past eight years, Marion B. Borg has provided professional services to the Planning and Building Department as an Environmental Project Manager through both two-party and three party contracts as an extension of staff. Due to project complexity, continuity of effort, and availability of remaining environmental project managers on staff, staff recommends retaining the consultant to process specifically the Eastern Urban Center SPA Plan EIR. City staff will administer the contract and manage the consultant. The applicant McMillin Otay Ranch, LLC, will fund the work and is aware and supportive of the proposed contract amendment. Based on her experience with the City of Chula Vista, knowledge of the California Environmental Quality Act (CEQA), and work on the EUC project for the past two years, Ms. Borg is uniquely qualified for this sole-source contract. She also has the proven skills for managing the preparation of complex multi-discipline environmental reports. In the recent past, she has also managed the preparation of EIRs for both Village Two and Village Seven SPA Plans in Otay Ranch. For these reasons, City staff recommends Council waive the formal consultant selection process as described in Municipal Code Section 2.56.070. 4-2 Item No.: L\- Meeting Date: 8/05/08 Page 3 of3 DECISION-MAKER CONFLICTS: No Property within 500 feet: Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property, which is subject to this action. FISCAL IMP ACT There will be no net impact on the General Fund from this change in contract status. The change in contract status represents an additional $78,000 of services to accommodate approximately 20 hours of work effort per week for an additional 12 months (July 1,2008 through June 30, 2009). Approval of the amendment would reflect a total fee for services of$154,000. The contract cost will be paid directly out of McMillin Companies existing deposit account. Extension of this contract was not anticipated in the budget projections for the new Development Services Fund. The new fund beginning with FY 08-09 assumed loss of all EUC consultants up to 1040 billable hours by staff (20 hrs./week for 52 weeks), which hours mayor may not be replaced by other FCR billable work over the next year. The overhead charged on the administration of the consulting contract will be less than the FCR rates applied to staff hours assumed in the budget. Those hours may be offset by other applications or other costs savings achieved through frozen staff vacancies. A TT ACHMENTS I. Original Three-party Agreement between Marion 13,. Borg Environmental Consulting, City ofChula Vista and McMillin Otay Ranch, LLC dated March 13,2007. Prepared by: Joe Gamble, Landscape Planner II, Planning & Building Department J:\PlanningVoeG\Borg Contract Amendment 8405-08 CC.doc 4-3 ),...Tip<C I-tMEoN\ 1 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY A TTORL'ffiY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ',-!LC-/ O~ Ann Moore City Attorney Dated: ~ Ii (0 7 t Three Party Agreement Between City of Chula Vista, Marion B. Borg Environmental Consulting, Consultant, and , McMillin Otay Ranch, LLC, Applicant For Consulting Work to be Rendered With regard to Applicant's Eastern Urban Center Project 4-4 Three Party Agreement Between City of Chula Vista, Marion B. Borg Environmental Consulting, Consultant, and McMillin Otay Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicant's Eastern Urban Center Project 1. Parties This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant" Marion B. Borg Environmental Consulting whose business form and address is indicated on the attached Exhibit A, and the person designated on the attached Exhibit A as "Applicant" McMillin Otay Ranch, LLC whose business form and address is indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of land ("Property") commonly known as, or generally located as, described on Exhibit A, Paragraph 1, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property with the Project described on Exhibit A, Paragraph 2, and in that regard, has made application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 3. It is also anticipated Applicant will make application with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, paragraph 4. 3PtyBorg-EDC 03-06-07.doc Page 1 4-5 2.3. Appl icant, Exhibit A, In order for the City to process the Application of Work of the general nature and type described in Paragraph 5, ("Work") will need to be completed. 2.4. resources requested City does not presently have the to process the application within for review by the Applicant. II in-house Il staff the time frame or 2.5. This agreement proposes an arrangement by which Applicant shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 2.6. Additional facts and circumstances regarding the background for this agreement are set forth on Exhibit B; 3 . Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: , 3.1. Employment of Consultant by Applicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled llGeneral Nature of Consulting Services n r (llGeneral Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ("Detailed Services"), and all services reasonable necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required (IIDeliverablesn) herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of 3PtyBorg-EUC 03-06-07.doc Page 2 4-=6 Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional 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, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, .printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation of Consultant. Applicant shall compensate Consultant for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Consultant's billing, or in accordance with the security deposit provisions of paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for the compensation UT.less it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3ptySorg-EUC 03-06-07.doc Page 3 4-7 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional Work between the parties. 3.2.1.1. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City'S estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. 3.2.2. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time reduce the 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. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Payment of Compensation by Applicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount!! with the City, as trustee for Consultant, the conditions 3ptyBorg-EUC 03-06-07.doc Page 4 4-8 of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this agreement. 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting thersfrom. 3.3.1.1.4. within 30 days after of the use Nothing herein shall invalidate herein authorized. Applicant shall be notified of the Deposit in any manner. use of the Deposit in the manner 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount ig such amount as City shall reasonably specify, and upon doing so, Applicant shall, within 30 days pays said amount ("Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. 3ptyBorg-EUC 03-06-07.doc Page 5 4-9 In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. 4. Non-Service Related Duties of Consultant. 4.1. 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: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from 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-liability Coverage") . 4.1.3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coveraqe. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the 3ptyBorg-EUC 03-06-07.doc Page 6 4-11l 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. 4.2.2. 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 and Applicant demonstrating same. 4.2.3 Security for Performance - Performance Bond. In the event that the need for a Consultant to provide a Performance Bond arises, then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount shall be indicated in an attachment as "Performance Bond" Exhibit. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence of the City and Applicant. 3ptyBorg-EUC 03-06-07.doc Page 7 4-11 4.4. Communication to Applicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City_ The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 5. Non-Compensation Duties of the Applicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Consultant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 7. 5.2. Property Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 6. Administrative Representatives. Each party designates the individuals ("Administrators") indicated in Exhibit A, Paragraph 8, as said party's contract 3ptyBorg-EUC 03-06-07.doc Page 8 4-12 administrator who is authorized by said party to represent them in the routine administration of this agreement. 7. Conflicts of Interest 7.1. Consultant is Desiqnated as an FPPC Filer. If Consultant is designated on Exhibit A, paragraph 9, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Policical Reform Act conflict of interest and disclosure provisions, and shall report his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. 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. 7.3. 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. 7.4_ Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant 3ptyBorg-EUC 03-06-07.doc Page 9 4-13 will not the term interest acquirer obtain, or assume an economic interest during or this Agreement which would constitute a conrlict or as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise or Conrlicting Interests. Regardless or whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney or City ir Consultant learns or an economic interest or Consultant's which may result in a conrlict or interest ror the purpose or the Fair Political Practices Act, and regulations promulgated thereunder. 7.6. 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 the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries or the property which is the subject matter or the Project, or ("Prohibited Interest"). Consultant further warrants and represents that no promise of future employment, remuneration, consideratioTI1 gratuity or other reward or gain has been made to Consultant or Consultant Associates by Applicant or by any other party as a result of Consultant's performance or this Agreement. Consultant promises to advise City of any such promise that may be made during the Term or this Agreement, or ror 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term or this Agreement, or for 12 months after the expiration or this Ag;reement. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in 3ptyBorg-EUC 03-06-07.doc Page 10 4-14 conflict with Consultant's responsibilities under this Agreement. 8. Default of the Consultant for Breach. This agreement may be terminated by the CITY for default if the Consultant breaches this agreement or if the Consultant refuses or fails to pursue the work under this agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. 9. City's Right to Terminate Agreement for Convenience, Documents. 9.1. Notwithstanding any other section or provision of this agreement, the CITY shall have the absolute right at any time to terminate this agreement or any work to be performed pursuant to this agreement. 9.2. In the event of termination of this agreement by the CITY in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to the Consultant for services performed after execution of this agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this agreement, except as set forth herein, in the event of such termination. 9.4. In the event of termination of this agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the 3ptyBorg-EUC 03-06-07.doc Page 11 4-15 Cicy shall provide a copy, ac Applicant's cosc, of all such documencs co che Applicant. 9.5. and shall work. Applicant shall have no righc to terminate Consultant, not exercise any control or direction over Consultant's 10. Administrative Claims Requirement and Procedures No suic shall be broughc arising out of this agreemenc, against che City, unless a claim has first been presented in writing and filed wich the City of Chula Vista and acted upon by the Cicy of Chula Visca in accordance wich the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, che provisions of which are incorporaced by chis reference as if set fully set forth herein. 11. Hold Harmless and Indemnificacion 11.1. Injuries. Consultant to Indemnify City and Applicanc re Consul cant shall defend, indemnify, protecc and hold harmless the Cicy, ics elected and appointed officers and employees and Applicant from and againsc all claims for damages, liabilicy, cost and expense (including without limicacion accorneys' fees) arising out of che conduct of the Consultant, or any agent or employees, subcontraccors, or others of City or Applicant in conneccion wich che execution of the work covered by chis Agreemenc, excepc only for chose claims arising from che sole negligence or sole willful misconduct of the Cicy, its officers, or employees, or Applicant, Consultanc's indemnification shall include any and all costs, expenses, accorneys' fees and liabilicy incurred by the Cicy, its officers, agents, or employees or Applicant in defending against such claims, whecher the same prGceed co judgment or not. Furcher, Consultanc ac ics own expense shall, upon written requesc by the City or Applicant, defend any such suit or action brought against the City, ics officers, agencs, or employees or Applicanc. 3pcyBorg-EUC 03-06-07.doc Page 12 1 4 1 b Consultants' indemnification of City and Applicant shall not be limited by any prior or subsequent declaration by the Consultant. 11.2. Applicant to Indemnify City re Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and from any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as demanded by Consultant for the performance of services required by this Agreement. 12. Business Licenses Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Represent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 13 .2. 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 for the parties in Exhibit A. 3ptyBorg-EUC 03-06-07.doc Page 13 4-17 - 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same', similar or other circumstances. 13.4. Entire Aqreement. 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. 13.5. CaDacityof 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; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. 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 appl~cable, 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. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed 3ptyBorg-EUC 03-06-07.doc Page 14 4 Its by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provlslon of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedies. 3ptyBorg-EUC 03-06-07.doc Page 15 4-19 The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13. No Additional Beneficiaries. Despite the fact that the required performance under this agreement may have an affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this agreement. Notwithstanding the foregoing, this is a three party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 14. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics I 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), distribu:e, 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. (End of Page. Next Page is Signature Page.) 3ptyBorg-EUC 03-06-07.doc Page 16 4-20 Signature Page Now therefore, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista by: Cheryl Cox, Mayor Attest: Susan Bigelow City Clerk Approved as to Form: Consultant: Marion B. Borg Environmental Consulting Ann Moore City Attorney Dated: by: Dated: Applicant: McMillin Otay Ranch, LLC A Delaware limited liability company By: McMillin Companies, LLC, A Delaware limited liability company Its: Manager 3ptyBorg-EUC 03-06-07.doc Page 17 4-21 By: Its: 3ptyBorg-EUC 03-06-07.doc By: Its: 4-22 Page 18 Ex.~ibit B Additional Recitals WHEREAS, the Applicant has deposited an initial sum for the processing of development applications, such as rezone, environmental studies and precise plans, and WHEREAS, Consultant warrants time on this project will be billed at no more than the hourly rate the City bills for an equivalent City Staff, and WHEREAS, both City and Applicant agree to waive the formal consultant selection process due to prior work on the same project performed by Consultant while under a 2-party contract with the City, thereby making it impractical to solicit formal bids, and WHEREAS, the Planning and Building Director has negotiated the details of this agreement in accordance with procedures set forth in the Chula Vista Municipal Code. 3ptyBorg-EUC 03-06-07.doc Page 1 4-2~ Exhibit A Reference Date of Agreement: March 13, 2007 Effective Date of Agreement: January 1, 2007 City of Chula Vista, 276 Fourth Avenue, Chu1a Vista, CA 91910 Consultant: Marion B. Borg Environmental Consulting, Business Form of Consultant: X) Sole Proprietorship ) Partnership ) Corporation Address: 13904 San Sebastian Way, poway CA 92064 Applicant: McMillin Otay Ranch, LLC, Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( X) Corporation Address: 2750 Womble Road San Diego, CA 92106 1. Property (Commonly known address or General Description) The application covers that property generally known as Eastern Urban Center, which is located in the central portion of the Otay Valley Parcel of the Otay Ranch General Development Plan area. The proposed Eastern Urban Center is approximately 230 acres and is bounded by the proposed alignments of Birch Road on the north, Hunte Parkway on the south, Eastlake Parkway on the east, and SR-125 on the west. Applicant is only applying for entitlements of their portion of the ownership of subject property. 3ptyBorg-EUC 03-06-07.doc Page 2 4-24 2. Project Description ("Project"): The project consists of a Second Tier Environmental Impact Report (EIR) for the EUC SPA Plan. The EUC SPA Plan would refine the plans, goals, objectives, and policies of the otay Ranch GDP and the City of Chula Vista General Plan. The SPA plan would be consistent with the GDP and General Plan with a maximum development potential of 2,983 residential units and 3,497,000 square feet of non- residential development, including office, commercial and civic uses. 3. Entitlements applied for: General plan Amendment, General Development Plan, Sectional Planning Area (SPA) Plan, and Planned Community District Zoning Regulations), Preliminary Grading Plan, Tentative Subdivision Map, and Design Review. 4 . General Nature of Consulting Services (" Services --General") : Consultant shall manage the preparation and processing of the Environmental Impact Report (EIR) for the EUC project being prepared by others in accordance witp the City of Chula Vista Environmental Review Procedures; with the criteria, standards and procedures of the California Environmental Quality Act (CEQA) of 1970, as amended, (Public Resources Code Sections 21000 et seq.) and the CEQA Guidelines (Public Resources Code Section 15000 et seq.); and with other applicable regulations, requirements and procedures of any other responsible public agency or any agency with jurisdiction by law. All work performed by Consultant shall be to the satisfaction of City's Planning & Building Director. 5. Detailed Scope of Work ("Detailed Services"): Consultant shall manage all phases of preparation and processing of the EIR for the EUC proj ect through the City. The primary responsibility of Consultant is to manage the EIR consultant that will prepare the EIR. The detailed services to be provided are described below: A. ErR Consultant Management 3ptyBorg-EUC 03-06-07.doc Page 3 4-25 1. Coordinate with EIR consultant regularly regarding EIR scope, preparation and progress; 2. Monitor EIR consultant contract performance, including deliverables, costs and schedule; 3. Review and edit all notices; 4. Review and edit all technical studies prepared by EIR consultant; 5. Attend site visits with EIR consultant as necessary; and 6. Review and edit all screencheck draft EIRs, draft responses to comments, draft Findings and Statement of Overriding Considerations (if required), and draft Final EIR. B. Other Project Processing Services 1. Coordinate with City staff assigned to the project; 2. Review and comment on the EUC SPA as it relates to the EIR; 3. Distribute all public notices; 4. Review all technical studies prepared by applicant; 5. Compile staff comments on screencheck Draft EIRs and technical studies; 6. Distribute Draft EIR for public review, including public distribution, RCC and, Planning Commission; 7. Distribute Final EIR, including public agencies that commented on the EIR, Planning Commission and City Council; 8. Schedule staff meetings to discuss EIR issues; 9. Attend and prepare for team meetings and focus group meetings; 10. Attend and prepare for the RCC meeting; 11. Attend and prepare for public hearings including Planning Commission to close public review, Planning Commission on the draft EIR and City Council on the Final EIR; and. 12. Maintain project file for the duration of the project, and close project file after the 3D-day Notice of Determination statute of limitations period has ended. 6. Schedule, Milestone, Time-Limitations within which to Perform Services. 3ptyBorg-EUC 03-06-07.doc Page 4 4-:lb Date for Commencement of Consultant Services: (Xl Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Under direction of the Principal Planner, and will function as an extension of City staff. Dates for completion of all Consultant services: June 30, 2008, or adoption of the EUC SPA Plan by City Council. 7. Documents to be provided by Applicant to consultant: SPA Plan, tentative map, technical studies submitted to City- related to project. 8. Contract Administrators. City: Richard M. Rosaler, AICP, Principal Planner, City of Chula Vista Planning and Building Department, 276 Fourth Av, Chula Vista, CA 91910, ph: (619)476-5394, FAX: (619)409-5859, email: rrosaler@ci.chula-vista.ca.us. Applicant: Todd Galarneau, Vice-President, McMillin Otay Ranch, LLC, PO Box 85104, San Diego, CA 92186-5104, ph: (619)794- 1303, FAX: (619)336-3057 email: tgalarneau@mcmillin.com Consultant: Marion B. Borg, Consultant, Marion B. Borg Environmental Consulting, 13904 San Sebastian Way, Poway, CA 92064, ph: (858)679-8546, FAX (858)679-8618, email: mbbenV@cox.net. 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X ) Not Applicable. Not an FPPC Filer. 3ptyBorg-EUC 03-06-07.doc Page 5 4-27 Category NO.1. Category NO.2. Category No.3. ) Category NO.4. ) Category NO.5. ) Category NO.6. ) Category NO.7. 10. Insurance Requirements: Investments and sources of income. Interests in real property. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. 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. Investments -in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee'S department to provide services! supplies, materials, machinery or equipment. Business positions. (X ) Commercial General Liability: $1,000,000. (X ) Automobile Liability: $1,000,000. ( ) Worker's Compensation: Statutory 3ptyBorg-EUC 03-06-07.doc Page 6 4-28 ) Employer's Liability: $1,000,000. ) Errors and Omissions Liability: $2,000,000. 3ptyBorg-EUC 03-06-07.doc Page 7 4-29 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: Single Fixed Fee Amount: $ Milestone or Event Amount or Percent of Fixed Fee Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement") . Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase (X ) Time and Materials 3ptyBorg-EUC 03-06-07.doc Page 8 4-30 For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours of time and material spent by Consultant in the performance of said Services, at the rates or amounts set forth hereinbelow according to the following terms and conditions: (X ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the General and Detailed Services herein required of Consultant for $76,000 including all Materials, and other n reimburseables n (nMaximum Compensation") . ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to (nAuthorization Limitn), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. 3ptyBorg-EUC 03-06-07.doc Page 9 4-31 Rate Schedule Category of Employee of Consultant Name Hourly Rate Consultant Marion B. Borg $95.00 Materials separately Paid For by Applicant Cost or Rate ( X ) Materials Reports Copies X Travel X Printing X Postage X Del i very X Long Distance Telephone Charges X Other Actual Identifiable Direct Costs Mileage charged at $0.40 per mile Actual Actual Actual Actual Actual Actual Actual Deposit ) Deposit Amount: $ 3ptyBorg-EUC 03-06-07.doc Page 10 4-32 Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consult.ant, if t.his paragraph is "checked", upon City's receipt. of billing by Consult.ant, and det.erminat.ion by Cit.y in good faith that Consultant's billing is proper, a judgment. for which Applicant agrees t.o hold City harmless and waive any claim against Cit.y, City shall pay Consultant.'s billing from t.he amount of the Deposit.. If Applicant shall prot.est. t.he propriety of a billing t.o City in advance of payment, City shall consider Applicant's protest. and any evidence submitt.ed prior to t.he due date for the payment of said bill by Applicant in making its good faith determination of propriety. Use of Deposit as Security Only; Applicant t.o Make Billing Payments. Upon determinat.ion by City made in good faith t.hat Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days aft.er billing, Cit.y may, at. it.s option, use the Deposit to pay said billing. (X Bill Processing: A. Consult.ant's Billing to be submitt.ed for the following period of t.ime: X Monthly Quart.erly Other: B. Day of the Period for submission of Consult.ant's Billing: X First of the Month 15th Day of each Month End of t.he Month Ot.her: 3ptyBorg-EUC 03-06-07.doc Page 11 4-33 C. City's Account Number, MCMILN H:\Plap-fiing\BobMC\3pcyBorg-EUC 03-06-07.doc 3ptyBorg-EUC 03-06-07.doc Page 12 4-34 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS, APPROVING THE FIRST AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA, MARION B. BORG ENVIRONMENTAL CONSULTING AND MCMILLIN OTAY RANCH, LLC, FOR MANAGING AND PROCESSING OF THE ENVIRONMENTAL IMP ACT REPORT (EIR) FOR THE EASTERN URBAN CENTER (EUC) SECTIONAL PLANNING AREA (SPA) PLAN AND AUTHORIZNG THE MAYOR TO EXECUTE THE AGREEMENT. WHEREAS, in 2001, the Planning and Building Department retained the services of Marion B. Borg Environmental Consulting with a two-party agreement such that the consultant would function as an extension of staff; and WHEREAS, on March 13, 2007 the City Council approved a 3-party agreement between the City of Chula Vista Marion B. Borg Environmental Consulting, and McMillin Otay Ranch LCC, for managing and processing of the environmental impact report for the Eastern Urban Center (EUC) Sectional Planning Area (SPA) Plan through July 2008; and ' WHEREAS, it has become necessary to extend the duration of consultant services related to the managing and processing of the environmental impact report for the EUC since the complex nature of the EUC project has necessitated an extension to the project's overall processing schedule; and WHEREAS, Consultant's services are still required for continued processing of entitlement agreements for the McMillin Otay Ranch, LLC's EUC SPA Plan project; and WHEREAS, the City will fund said Consultant services through revenue reimbursements from developer deposits through the revenue budget of the Planning and Building Department; and WHEREAS, Consultant's prior work experience with the City, intimate knowledge of the EUC SPA Plan, and extensive work performed on the project make her uniquely qualified to continue as the Environmental Project Manager for the EUC ErR; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under section 15378 of State 4-35 CEQA Guidelines because it involves only the approval of a contract for consulting services; therefore, pursuant to Section l5060(c)(3) of the State Guidelines the activity is not subject to CEQA and thus, no environmental review is necessary; and WHEREAS, City recommends waiving the formal consultant selection process as impractical, as described in Section 2.56.070 of the Municipal Code of the City of Chula Vista. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista waives the formal selection process. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista approves the First Amendment to the agreement with Marion B. Borg Environmental Consulting and McMillin Otay Ranch, LLC and authorizes the Mayor to execute the agreement. Submitted by Approved as to form by Nancy Maddox Lytle Acting Planning Director 1 Y orney 4-36 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL Dated: '7- -Z 9, c/'6 First Amendment to the Three-Party Agreement between City of Chula Vistjl, Marion B. Borg Environmental Consulting, Consultant, and McMillin Otay Ranch, LLC, Applicant For Consulting Work to be Rendered With Regard to Applicant's Eastern Urban Center Project 4-37 FIRST AMENDMENT To the Three Party Agreement Between City of Chula Vista, Marion B. Borg Environmental Consulting, Consultant, and McMillin Otay Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicant's Eastern Urban Center Project Recitals This First Amendment is effective as of July I, 2008 by and between the City of Chula Vista ("City"), Marion B. Borg Environmental Consulting ("Consultant") and McMillin Otay Ranch, LLC ("Applicant"), with reference to the following facts: WHEREAS, City, Consultant and Applicant previously entered into an agreement effective January I, 2007 whereby Consultant was to manage the preparation and processing of the Environmental Impact Report (EIR) for the Eastern Urban Center ("Original Agreement"); and WHEREAS, City, Consultant and Applicant agree that the schedule for certification of the EIR has exceeded the timefTame of the original agreement; and WHEREAS, Consultant estimates an effort of 20 hours per week dedicated on this project for the next twelve months to complete the entitlement process; and WHEREAS, Consultant is uniquely qualified due to work experience in the City ofChula Vista and experience acting as an extension of the Community Planning Section staff on this project over the last year and working on this project while in the employ of the City; and WHEREAS, all work performed by Consultant has been performed to the satisfaction and under the direction of the City's Acting Director of Planning. NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, City, Applicant and Consultant agree to amend the Original Agreement as follows: 1. Exhibit A, Section 6 entitled Schedule, Milestone, Time-Limitations within which to Perform Services ("Schedule"), is hereby amended to read as follows: Dates or Time Limits for Delivery of Deliverables: Under direction of the Senior Planner, and will function as an extension of City staff. Dates for completion of all Consultant services: June 30, 2009, or adoption of the EUC SPA Plan by City Council. 4-38 2. Exhibit A, Section 8, entitled Contract Administrators, is hereby amended to read as follows: City: Scott Donaghe, Senior Planner, City of Chula Vista Planning and Building Department, 276 Fourth Av, Chula Vista, CA 91910, ph: (619) 409-5806, FAX: (619) 409-5859, email: sdonaghe@ci.chula-vista.ca.us. 3. Exhibit A, Section 9, entitled Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code, is hereby amended to read as follows: ( ) Not Applicable. Not an FPPC Filer. ( X ) Category No. I. Investments and sources of income. ( X ) Category No.2. Interests in real property. ( X ) Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( X ) Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale ofreal property. ( X ) 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. ( X ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. (X) Category No.7. Business positions. 4. Exhibit C, entitled Compensation Schedule and Deposit, Not-to-Exceed Limitation on Time and Materials Arrangement, is hereby amended to read as follows: 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 General and Detailed Services herein required of Consultant for $ 78,000 including all Materials, and other "reimburseables" ("Maximum Compensation"). 4-39 5. Exhibit C, entitled Compensation Schedule and Deposit, Rate Schedule, is hereby amended to read as follows: Rate Schedule Category of Employee of Consultant Consultant Name Marion B. Borg Hourly Rate $100.00 Materials Separately Paid For by Applicant Cost or Rate (X ) Materials Reports Copies Actual plus 10% ( X ) Travel ( X ) Printing ( X ) Postage ( X ) Delivery ( X) Long Distance Telephone Charges ( X ) Other Actual Identifiable Direct Costs Mileage charged at $ 0.49. Actual Actual plus 10% Actual Actual Actual Actual 6. All other terms and conditions of the Original Agreement not specifically modified by this First Amendment shall remain in full force and effect. 4-40 Signature Page To the First Amendment to the Three Party Agreement Between City of Chula Vista, Marlon B. Borg Environmental Consulting, Consultant, and McMillin Otay Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicant's Eastern Urban Center Project IN WITNESS THEREOF, City, Applicant and Consultant have executed this Second Amendment to the Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista Consultant: Marion B. Borg Environmental Consulting By: Cheryl Cox, Mayor BY:~~ Marion B. Borg, COll!iulta Dated: Dated: 1-/~foY Attest: Donna Norris, Interim City Clerk Approved as to form: Applicant: McMillin Otay Ranch, LLC a Delaware limited liability company By: McMillin Companies, LLC, a Delaware limited liability p Y Its: Manager ~ Interim City Attorney By: Its: 4-41