HomeMy WebLinkAbout1995 CON MOU SD Unified Port District - Tidelands CIP Projects(io)
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT
AND THE CITY OF NATIONAL CITY
RECITALS.
A. The San Diego Unified Port District (Port District) and The City of San Diego
entered into a Memorandum of Understanding concerning the expansion of the
San Diego Convention Center.
B. The Port District has agreed to contribute on an annual basis 4.5 Million Dollars
for a period of Twenty (20) Years or for the life of the debt obligations created
to finance that expansion, whichever is the shorter period.
C. The Port District has also agreed to reimburse The City of San Diego for certain
consultant and associated planning and design contract costs associated with the
expansion at a rate not to exceed 4.5 Million Dollars per year, however, the Port
District will be reimbursed for those costs either out of proceeds of the proposed
sale of bonds or will deduct those costs from the amount the Port District is to
contribute as provided in Recital B, above.
D. At the time the decision was made to contribute the 4.5 Million Dollars in annual
payments, the Board of Port Commissioners (Board) recognized and committed
to the expenditure of approximately 63 Million Dollars for tidelands capital
improvement program projects scheduled to be completed over the next Seven (7)
Years (9 Million Dollars per year) and located within the City limits of the Port
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District member Cities of National City, Chula Vista, Imperial Beach and
Coronado. This Memorandum of Understanding is in furtherance of that
commitment to encumber annually 9 Million Dollars for Seven (7) consecutive
fiscal year periods for construction of said projects as shown in the San Diego
Unified Port District Tidelands Capital Improvement Program adopted by the
Board on April 26, 1994.
E. The Capital Improvement Program Ad Hoc Committee of the Board reported to
the Board and recommended adoption of a Tidelands Capital Improvement
Program, including setting aside 9 Million Dollars annually for the projects
referred to in Recital D, above, and an annual contribution for expansion of the
San Diego Convention Center which under no circumstances shall exceed 4.5
Million Dollars annually.
F. The Board approved the Ad Hoc Committee's report and recommendations on
April 26, 1994, and later authorized the Memorandum of Understanding with
The City of San Diego dated June 21, 1994, concerning expansion of the San
Diego Convention Center.
NOW, THEREFORE, Port District and the City of National City (City) agree:
1. The Port District shall annually set aside as restrictive reserves 9 Million
Dollars for a period of Seven (7) consecutive Fiscal Years commencing with
the Fiscal Year 1995, which begins July 1, 1994, and concludes June 30,
1995. The parties acknowledge that 9 Million Dollars has been so set aside
and encumbered for the Fiscal Year 1995.
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2. The 9 Million Dollars set aside annually shall be expended for Port District
projects to be completed in the Port District members cities of National
City, Chula Vista, Imperial Beach and Coronado, as shown in the
Tidelands Capital Improvement Program (CIP) adopted by the Board on
April 26, 1994, and as may be revised or replaced by any subsequently
adopted CIP from time to time, for the Fiscal Years of 1995 thorough
2001. A summary of the present proposed CIP expenditures is attached
hereto as Exhibit A and by this reference made a part hereof.
3. City may in the future, for projects shown in the CIP which are located
in the limits of City, request changes to any such projects or their time
schedule or may propose a different project than those so shown, and no
such change or different project shall affect the level of reserves set aside
for CIP projects or the 9 Million Dollar annual set aside for the said Seven
(7) Fiscal Years.
4. In the event the Port District determines to change or in any way increase
its obligations to The City of San Diego beyond the present 4.5 Million
Dollar annual contribution as particularly provided in the Memorandum
of Understanding between those parties, including the Port District's
present right of reimbursement, the written documents between the Port
District and The City of San Diego or any other party, shall expressly
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provide that prior to any such obligation or increase in any annual
contribution becoming legally effective or due and payable, the Board shall
first set aside the annual 9 Million Dollars for the projects as provided for
and in accordance with Paragraph 2, above, and then at its absolute
discretion determine in accordance with Port District policy and practices
the amount, if any, of available funds to pay any such increase and the
amount so determined shall be used and shall be payment in full of such
increase.
5. Notwithstanding any other provision in this MOU, the 9 Million Dollar
annual set -aside may be changed or otherwise expended from time to time
if the Board makes a finding that because of an emergency or fiscal crisis
there is a need for all or part of these funds to be expended for the repair,
operation, maintenance or development of Port District infrastructures
critical and paramount to the operation of the Port District.
6. This Memorandum of Understanding is made for the benefit of the Port
District and City only and not for the benefit of any third party. There
are no other parties to this Memorandum of Understanding, express or
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implied, direct, indirect or ostensible. The Port District and City agree
and state that it is not their intent to create any third party beneficiaries
to this Memorandum of Understanding for any purpose.
DATED: July 18 , 1995.
JOSEPH D. PATELLO SAN DIEGO UNIFIED PORT DISTRICT
PORT ATTORNEY
abek,
ASST±rtr Director
CITY ATTORNEY THE CITY OF NATIONAL CITY
By /4,01.0:31F
By A
Mayor
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