C:\Program Files\eSCRIBE\TEMP\2042345643\2042345643,,,Resolution C - Sewer Funds 2022-05-05.docx RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPRO PRIATING SEWER CAPACITY FEES
TO REIMBURSE RIDA CHULA VISTA, LLC PURSUANT TO
RESOLUTION 2019 -170 AND THE 2020 REIMBURSEMENT
AGREEMENT WITH RIDA CHULA VISTA, LLC TO
CONSTRUCT SPECIFIED BAYFRONT SEWER
IMPROVEMENTS
WHEREAS, the City, RIDA Chula Vista, LLC (the “Developer”), and the San Diego Unified Port District (the “Port District”) entered into a Disposition and Development Agreement for the Resort Hotel Convent ion Center Project (Chula Vista Bayfront Master Plan Parcel H -3) (the “Project”), effective May 7, 2018 (the “DDA”); and
WHEREAS, the Project is comprised of (1) a resort hotel, consisting of no less than 1,570 rooms and no more than 1,600 rooms and related resort -level amenities (collectively, the “Developer’s Private Improvements”), (2) an attached approximately 275,000 square foot convention center (“Convention Center”) to be constructed and operated by Developer on behalf of the City of Chula Vista Bayfront Facilities Financing Authority, formed by the City and the Port for such purpose, and (3) a portion of the substantial public improvements required for development of the Developer’s Private Improvements and Convention Center (the “Developer’s Phase IA Infrastructure Improvements”), as more particularly described that certain Project Implementation Agreement between the City, the Port, Developer, the Financing District (as defined therein) and the JEPA (as defined therein) (the “PIA”); and
WHEREAS, the PIA provides that the Developer shall construct certain in -road sewer improvements included in the Developer’s Phase 1A Infrastructure Improvements , consisting of:
E Street (from G Street to H Street), the G Street Connection, and the H -3 Utility C orridor (collectively, the “Developer’s Sewer Improvements” or “Project”), to be funded by the City’s Sewer Facility Contribution, as defined in the DDA; and
WHEREAS, the City Council did approve entering into a Reimbursement Agreement with Developer to Construct Specified Bayfront Sewer Improvements, dated September 15, 2020 (the “Sewer Reimbursement Agreement”) via Resolution No. 2019-1707; and
WHEREAS, the City Council appropriated $1,195,000 from the Sewer Income Fund for reimbursement purposes based on a preliminary engineering cost estimate with the same action;
WHEREAS, based on actual bids received, Developer’s Sewer Improvements are estimated to cost a total $4,426,000, necessitating an additional appropriation in the amount of $3,231,000; and
Resolution No.
WHEREAS, pursuant to Chula Vista Municipal Code (CVMC) Section 13.14.090 (Sewer Capacity Charge), any owner or person making application for a permit to develop or modify use of any residential, commercial, industrial or other property shall pay a sewer cap acity charge. All revenue derived from such fees shall be deposited into the trunk sewer capital reserve fund; and
WHEREAS, pursuant to CVMC Chapter 3.14 (Trunk Sewer Capital Reserve Fund), all revenues collected under CVMC Section 13.14.090 shall be deposited into t he Trunk Sewer Capital Reserve Fund and may be used, in the discretion of the City Council to pay for the planning, design, or construction of sewage collection or treatment or water reclamation purposes; and
WHEREAS, reimbursing the Devel oper for costs incurred in the construction of the Developer’s Sewer Improvements falls within the City Council’s authority pursuant to Chapter
3.14; and
WHEREAS, such additional sewer facility construction costs are eligible for reimbursement from the Trunk Sewer Capital Reserve Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it appropriates funds from the Trunk Sewer Capital Reserve Fund to reimburse Developer pursuant to the Reimbursement Agreement between the City and RIDA Chula Vista, LLC to Construct Specified Sewer Improvements.
Presented by
Tiffany Allen
Deputy City Manager/
Director of Development Services
Approved as to form by
Glen R. Googins
City Attorney