Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FIRST AMENDMENT TO
REIMBURSEMENT AGREEMENT WITH RIDA CHULA
VISTA, LLC TO INCLUDE THE G STREET SEWER PUMP
STATION OVERFLOW TANK AND H STREET SEWER
IMPROVEMENTS AND APPROPRIATE FUND S TO CIP
PROJECT, SWR0321 “RIDA BAYFRONT SEWER
IMPROVEMENTS” THERFOR (4/5 VOTE REQUIRED)
WHEREAS, the City of Chula Vista (the “ City”) and RIDA Chula Vista, LLC (“ the Developer”) previously entered into that certain Reimbursement Agreement to Construct Specified Bayfront Sewer Improvements (the “Original Agreement”) on September 15, 2020; and
WHEREAS, the City and the Developer desire to amend the Original Agreement to expand the scope of the Project Improvements (defined therein) to include the construction of in-road sewer facilities in H Street (the “H Street Sewer Improvements”) and an overflow tank for the G Street sewer pump station (the “Pump Station Overflow Tank”; and together with the H Street Sewer Improvements, the “Project”); and
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 de velop or modify use of any residential, commercial, industrial or other property shall pay a sewer capacity charge; all revenue derived from such fees shall be deposited in 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 the “Trunk Sewer Capital Reserve Fund” and may be used, in the discretion of the City Council, for the planning, design, or construction of sew age collection or treatment or water reclamation purposes or purposes incidental to paying all or any part of the cost and expense to enlarge sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity in order to effectively serve the needs of the City or paying all or any part of the cost and expense to plan and/or evaluate any future proposals for area -wide sewage treatment and/or water reclamation systems or facilities; and
WHEREAS, the Scope of Development attac hed to the Disposition and Development Agreement for the Resort Hotel Convention Center Project (Chula Vista Bayfront Master Plan Parcel H-3), effective May 7, 2018 (the “DDA”) provided that the G Street Sewer Pump Station would be constructed by or on beh alf of the City and financed by the City, which financing may be through any financing mechanism in City’s sole and absolute discretion; and
WHEREAS, the G Street sewer pump station requires the construction of the Pump Station Overflow Tank, which is most efficiently placed within Developer’s leasehold interest; and Resolution No.
WHEREAS, City has completed preliminary design of the Project; and
WHEREAS, in order to achieve certain financial, construction management, and schedule efficiencies, the City and the Developer desire for the Developer to construct the Project under its construction contract with Mortenson McCarthy Joint Venture (“MMJV”) relating to the Developer’s Sewer Improvements (defined in the Original Agreement); and
WHEREAS, the estimated cost of constructing the Project is $5,555,000; and
WHEREAS, the construction of the Project is eligible for reimbursement from the Trunk Sewer Capital Reserve Fund and the Sewer Income Fund; and
WHEREAS, costs for the in-road sewer improvements required at H Street, not part of the Original Agreement are also eligible for reimbursement; and
WHEREAS, the City has sufficient funds in the Trunk Sewer Capital Reserve to reimburse Developer for the final design and construction of the Pump Station Overflow Tank and H Street Sewer Improvements; and
WHEREAS, the City has sufficient funds in the Sewer Income Fund and Trunk Sewer Capital Reserve to increase the total amount of the amended value to $9,238,639; and
WHEREAS, the City and the Developer have negotiated the terms of the First Amendment to Reimbursement Agreement to Construct Specified Bayfront Sewer Improvements Between the City and RIDA Chula Vista, LLC , in substantially the form submitted herewith (the “First Amendment”) to provide for the Ci ty to reimburse the Developer for eligible costs incurred by Developer in the final design and construction of the Project; and
WHEREAS, the final design and construction of the Project shall be self -performed by MMJV on a lump sum basis, with additional second-tier subcontracts to be awarded ancillary scopes; and
WHEREAS, pursuant to authority granted by City Council Resolution No. 2019 -170, the City Manager’s designee has found such procurement to be in the best interest of the public and that appropriate safeguards are in place to protect the public interest and, accordingly, the City Manager’s designee has approved such procurement for the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that after consideration of CVMC Chapter 3.14 and CVMC Section 13.14.090 and the facts stated in the Recitals above, the City Council hereby finds and determines that the construction of the Project will provide a public benefit to other properties within the Chula Vista Bayfront Master Plan area.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it approves the First Amendment to Reimbu rsement Agreement to Construct Specified Bayfront Resolution No.
Sewer Improvements between the City and RIDA Chula Vista, L LC, in substantially the form presented, with such modifications as may be required or approved by the City Attorney , and generally consistent with the item as presented, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute and implement such First Amendment.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend the fiscal year 2023-24 Capital Improvement Projects Program budget appropriating $900,000 in Sewer Income Funds and $9,467,055 in Trunk Sewer Reserve Funds to CIP project, SWR0321 RIDA Bayfront Sewer Improvements to reimburse Developer for eligible costs to complete the design and construction of the Project, pursuant to the Reimbursement Agreement between the City and RIDA Chula Vista, LLC to Construct Specified Sewer Improvements , as amended by the First Amendment.
Presented by Approved as to form by
Tiffany Allen Jill D.S. Maland
Assistant City Manager Lounsbery Ferguson Altona & Peak LLP Acting City Attorney