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HomeMy WebLinkAbout2010/07/27 Item 5 CITY COUNCIL AGENDA STATEMENT ~\~ CITY OF .~ CHULA VISTA ITEM TITLE: SUBMITTED BY: REVIEWED BY: JULY27,2010 Item~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A $40,000 DOLLAR GRANT FROM THE COUNTY OF SAN DIEGO AND APPROPRIATING SAID FUNDS TO PURCHASE A POLLUTION LIMITED LIABILITY INSURANCE POLICY FOR AN 8.61 ACRE SITE, ASSESOR PARCEL NUMBER 624-071-01 LOCATED IN THE OTA Y VALLEY REGIONAL PARK .J~ ASSISTANT CITY MANAGErt{t!l1 DEVELOPMENT SERVICES DTR~ CITY MANAGE . r 4/STHS VOTE: YES I X I NO D SUMMARY The City of Chula Vista accepted a grant deed for the Davies Family Trust (Trust) for an 8.61 acre site located in the Otay River Valley on June 22, 2010. In order to ensure the interests of the City are protected, staff is in the process of purchasing an insurance policy that will cover the City for up 'to $1 million, for a period of ten years, should any unknown contamination be discovered when this property is put into use for the Otay Valley Regional Park. The insurance would provide funds for the remediation of the site. An investigation of the site conducted this past year revealed no site contamination. To help pay for the pollution limited liability insurance policy ($68,500) the County has approved a grant request of $40,000 from the City to help cover the cost with the remaining balance ($28,500) coming from the City of Chula Vista Redevelopment Agency (Agency). ENVIRONMENTAL REVIEW The Environmental Review Coordinator previously reviewed the site conveyance for compliance with the California Environmental Quality Act (CEQA) and detennined that the activity qualified for a Class 16 categorical exemption pursuant to Section 15316 [Transfer of Ownership of Land in Order to Create Parks] of the State CEQA Guidelines. 5-1 JUL Y 27, 2010, Item 'J Page 2 The proposed purchase of a pollution limited liability insurance policy is in furtherance of the previous conveyance; therefore, no further environmental review is required. The Phase I environmental site assessment recommended no further investigation of the subject property and concluded that there is a low likelihood of any environmental contamination on the site. However, in order to ensure the interests of the City are protected staff is pursuing the purchase of an insurance policy that will cover the City for up to $] million, for a period of ten years, should any unknown contamination be discovered when this property is put into use for the Otay Valley Regional Park. RECOMMENDATION Approve the resolution. DISCUSSION On June 22,2010 the City of Chula Vista accepted a grant deed from the Davies Family Trust, that conveyed an 8.61 acre site located on the south side of the Otay River Valley, (see attached Exhibit A) to be included into the Otay Valley Regional Park. To help protect the interests of the City, stafT is prepared to purchase an insurance policy that will cover the City for up to $1 million, for a period of ten years, should any unknown contamination be discovered. The County Board of Supervisors, acting as a member of the Otay Valley Regional Park Joint Powers Authority, have approved the City's application to allocate $40,000 of County funds toward the subject insurance policy. The remaining balance for the policy will corne from the Agency ($28,500). DECISION MAKER CONFLICT 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 the subject of this action. CURRENT YEAR FISCAL IMP ACT The Redevelopment Agency will cover approximately $28,500 for the purchase of a ten- year one million dollar pollution legal liability insurance policy out of funds already budgeted for the fiscal year 2010-11 budget. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. Prepared by: Eric C. Crockett, Redevelopment Jvfanager 5-2 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A $40,000 GRANT FROM THE COUNTY OF SAN DIEGO AND APPROPRIATING SAID FUNDS TO PURCHASE A POLLUTION LiMITED LIABILiTY INSURANCE POLICY FOR AN 8.61 ACRE SITE, ASSESSOR PARCEL NUMBER 624-071-01 LOCATED IN THE OTAY RIVER V ALLEY REGIONAL PARK WHEREAS, the Davies Family Trust were the sole owners in fee simple of approximately 8.61 acres of real property in the City of Chula Vista, County of San Diego, identitied as Assessor Parcel Number (APN) 624-071-01 more particularly described in Exhibit A on me in the office of the City Clerk; and WHEREAS, the Davies Family Trust permanently relinquished all rights to develop the property; and WHEREAS, on June 22, 2010 the City of Chula Vista accepted a Grant Deed from the Davies Family Trust conveying the subject 8.61 acre site to the City to be included in the Otay Valley Regional Park consistent with the Otay Valley Regional Park Concept Plan as may be amended from time to time; and WHEREAS, a Phase I enviromnental site assessment was conducted on the 8.61 acre site and recommended no further enviromnental assessment of the subject site and concluded that there is a low likelihood of any enviromnental contamination on the subject site; and WHEREAS, in order to ensure that the interests of the City are protected staff is pursuing the purchase of an insurance policy that will cover the City for up to $1 million, for a period of ten years, should any unknown contamination be discovered when the subject site is put into use for the Otay Valley Regional Park; and WHEREAS, the City of Chula Vista submitted an application to the County of San Diego requesting $40,000 dollars to help offset the cost of the subject pollution limited liability insurance policy; and WHEREAS, the County of San Diego has approved the City's grant request in the amount of $40,000; and WHEREAS, the Enviromnental Review Coordinator previously reviewed the site conveyance for compliance with the California Enviromnental Quality Act (CEQA) and determined that the activity qualified for a Class 16 categorical exemption pursuant to Section 15316 [Transfer of Ownership of Land in Order to Create Parks] of the State CEQA Guidelines. The proposed purchase of a pollution limited liability insurance policy is in furtherance of the previous conveyance; therefore, no further enviromnental review is required. 5-3 Resolution Nt). Page 2 NOW, THEREFORE, BE IT RESOLVED that the City of Chula Vista City Council does hereby accept the $40,000 grant from the County of San Diego and appropriates said funds to purchase a pollution limited liability policy for an 8.61 acre site, Assessor Parcel Number 624-071- 01 located in the Otay Valley Regional Park. Presented by Approved as to form by Gary Halbert, AICP, PE Deputy City Manager/Director of Development Services 5-4