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October 24, 2023
ITEM TITLE
Memorandum of Understanding: Approve a Memorandum of Understanding with Landify ECT Corporation Regarding Potential Development of Certain Park Improvements Report Number: 23-0295
Location: Lower Sweetwater Community Park and Otay Ranch Community Park North Department: City Manager & Development Services
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (“CEQA”) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required . Before any potential park development could occur, further action by the City Council would have to be taken, which action would be accompanied by appropriate environmental review under CEQA.
Recommended Action
Adopt a resolution approving a Memorandum of Understanding with Landify ECT Corporation regarding the potential development of certain park improvements.
SUMMARY
Staff recommends entering into a Memorandum of Understanding with Landify ECT Corporation (“ECT”) to evaluate the feasibility of de veloping the Lower Sweetwater Community Park and the Otay Ranch Community Park North sites, and such other sites as may be mutually agreed to by the parties. ECT offers a singular park delivery model, wherein park development is partially or fully self -financed through tipping fees paid by excavation companies allowed to dispose of tested and clean soil on ECT managed sites. The Memorandum of Understanding will enable ECT and its representatives to conduct studies to determine the feasibility of delivering the subject park sites through the re -use of inert excavated soil from construction sites and the associated tipping fees.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with CEQA and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required.
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Should development of any of the contemplated park sites move forward, additional action of the City Council would be required. Such action would be accompanied by an appropriate environmental review.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista Park and Recreation Master Plan identifies a number of future park sites to be developed, including, but not limited to, the Lower Sweetwater Community Park and Otay Ranch Community Park North. The Lower Sweetwater Community Park is envisioned to include multipurpose fields, an outdoor basketball court, tennis/pickleball courts, play structures, a dog park, picnic tables, shade structures, as well as maintenance and restroom facilities. The Otay Ranch Community Park North is envisioned to include multipurpose fields, baseball fields, an outdoor basketball court, tennis/pickleball courts, play structures, picnic tables, shade structures, as well as concessions, maintenance, and restroom facilities. With limited resources available to deliver these and other critical projects, the City regularly seeks out new funding sources and opportunities to reduce park delivery costs. One such opportunity has been presented by ECT.
Originating in France, ECT offers a unique business model of upcycling excavated inert soils from construction sites. This is accomplished by charging excavation companies tipping fees in order to dispose their clean fill on ECT controlled sites and using those same soils to create park landforms. The tipping fees are then reinvested in park development. Strict quality controls and traceability processes are implemented by ECT to ensure compliance with all soil safety regulations.
Staff recommends entering into a Memorandum of Understanding (“MOU”) with ECT regarding the potential development of certain park improvements (Attachment 1). The MOU will enable ECT and its representatives to study the feasibility of developing potential park sites using ECT’s tipping financed model , includin g evaluating environmental conditions. The MOU does not obligate the City or ECT (together, the “Parties”) to proceed with any of the potential park projects and both Parties retain the right to terminate the MOU with or without cause. The MOU primarily addresses the development of the Lower Sweetwater Community Park site, but also contemplates the development of the Otay Ranch Community Park North site and such other sites as the Parties may mutually agree to consider developing. If the Parties agree to p roceed with development of the Lower Sweetwater Community Park, Otay Ranch Community Park North, or any other site, the Parties will undertake design, entitlements, and negotiation of a definitive agreement.
Should the Parties agree to move forward with de sign of any of the potential park sites, ECT will be responsible for all consultant costs incurred, while the City will be responsible for all internal costs incurred (including consultants working as an extension of staff) . Similarly, should the Parties m utually agree to undertake the entitlement process, ECT will solely fund all necessary entitlements , with the City funding internal review efforts. Should the City Council approve entering into the MOU as proposed, the first round of due diligence and feasibility analysis is expected to be completed within six months. A robust community engagement effort will be undertaken jointly by ECT and the City to ensure stakeholders are given a voice in the programming of the park sites.
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real p roperty-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been infor med by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Entering into an MOU with ECT has no current year fiscal impact. All costs incurred in conduc ting the feasibility studies will be borne by ECT. Should construction of any of the potential park sites move forward, the fiscal impacts of developing each park would be analyzed and presented to the City Council in conjunction with the associated definitive agreement.
ONGOING FISCAL IMPACT
Entering into an MOU with ECT has no ongoing fiscal impact. All costs incurred in conducting the feasibility studies will be borne by ECT. Should construction of any of the potential park sites move forward, the fiscal impacts of developing each park would be analyzed and presented to the City Council in conjunction with the associated definitive agreement.
ATTACHMENTS
1. ECT MOU
Staff Contact: Tiffany Allen, Assistant City Manager
Laura C. Black, AICP, Director of Development Services